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Category: General

Retail News Asia is committed to providing both local and global retailers with the latest General Retail news throughout the Asian market. This on a daily base.

  • Hong Kong retail has lost its edge

    Hong Kong has lost its edge as the go-to destination for international tourists seeking retail therapy.

    In a presentation to the 22nd CLSA Investors Forum, CLSA’s  head of consumer and gaming research Aaron Fischer, said luxury retail prices in Hong Kong are now higher than in other markets and if they stay that way “the retail market will suffer”.

    He cited an example of a Louis Vuitton handbag priced 20 per cent cheaper in Tokyo than in Hong Kong.

    Tourists – especially those from the Mainland – are now considering the price differential with Europe and other Asian destinations – and concluding there are more exciting tourist attractions, or new experiences, so deciding against Hong Kong.

    He said while there is no danger of the Hong Kong retail market “collapsing” – it would take threats to personal safety from terrorism or a pandemic to cause that – the sector needed to adjust.

    He said Hong Kong luxury brands were over-stored here. Brands like Louis Vuitton and Prada had about 10 stores in Hong Kong – and more in Macau – yet in cities like New York they had just two or three. If the profitability of these brands in Hong Kong was to be maximised, store networks would need to be cut by 20 or 30 per cent.

    “While sales declined, it does not mean these stores are loss-making. They might close one or two stores but they definitely won’t leave Hong Kong,” he added.

    The 22nd CLSA Investors’ Forum provides more than 1400 global fund managers and 230 leading listed corporations from 30 countries a platform for discussion and debate on market drivers including foreign policy and currency volatility; financial, political and structural reform; capital preservation, corporate governance and more.

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  • No sale threat to Tesco Thailand

    No sale threat to Tesco Thailand

    There seems little prospect of the Tesco Thailand business – trading as tesco Lotus – being sold or scaled back in the wake of the British JV partner’s sale of its South Korean Homeplus business last week.

    Tesco PLC is under intense pressure to reduce debt and improve its trading profit, a goal which received a significant boost last week with the US$6 billion sale of the Homeplus business.

    Tesco Lotus operates some 1400 stores in Thailand, 1100 of them Express outlets, essentially oversized convenience stores, the balance hypermarkets.

    The company said in a statement that it has confidence in the Thai market’s growth prospects and planned to continue with expanding its store network.

    Early this year the company projected it would open 50 new Express format stores in 2015 and five new hypermarkets.

    Meanwhile, an “industry source” told the Bangkok Post newspaper following the Homeplus sale that it was unlikely Tesco would sell its stake in Tesco Lotus.

    “I don’t think the Thai operation will be sold, as it is healthy and profitable with a lot of market potential and expansion,” the source said.

  • Hong Kong Expo And Symposium Open In Jakarta

    Hong Kong Expo And Symposium Open In Jakarta

    Chief Executive of Hong Kong CY Leung and Minister of Tourism of Indonesia Arief Yahya officiate at event promoting closer ties

    “In Style – Hong Kong”, organised by the Hong Kong Trade Development Council (HKTDC), opened today at the Jakarta Convention Center in Indonesia. Chief Executive of the Hong Kong Special Administrative Region (HKSAR) CY Leung and Minister of Tourism of the Republic of Indonesia Arief Yahya officiated at the joint opening of the one-day business symposium and the products expo, which continues through 19 September.

    Speaking at the opening reception, Mr Leung highlighted Hong Kong’s role as a gateway for trade between the Chinese mainland and the ASEAN region, adding that a Hong Kong-ASEAN Free Trade Agreement (FTA) would be concluded within the coming year. “It (the FTA) will, I know, strengthen economic ties and cooperation between Hong Kong and Indonesia,” said Mr Leung. “With our [Hong Kong’s] help, it will encourage more Indonesian exports to the mainland of China. Inevitably, more Hong Kong and mainland investment will also find its way to Indonesia.”

    Meanwhile, Mr Yahya said “In Style – Hong Kong” was an important business gathering for Indonesia. “It is enhancing the partnership between Indonesia and Hong Kong, especially in trade, investment and tourism,” he said.

    Chairman of the HKTDC Vincent HS Lo explained that “In Style – Hong Kong” is an expansion of previous expo’s organised by the HKTDC in Jakarta. “This event is bigger and better. In addition to products, we have added today’s business symposium where you can find and network with core business leaders and find out how to take advantage of Hong Kong’s world-class services to grow your business,” said Mr Lo.

    Also speaking at the opening reception, Secretary, Ministry of Cooperatives and SMEs of the Republic of Indonesia Agus Muharram said Hong Kong was a gateway for Indonesian companies, “not only to the Hong Kong and China markets, but also the global market as well as [providing] potential for Indonesian cooperatives and small and medium-sized enterprises products.”

    “By maintaining a good relationship between Indonesia and Hong Kong, we hope that this will present good results in export market expansion and promotion of Indonesian cooperatives and small and medium-sized enterprises products,” said Mr Muharram.

    Services under the spotlight

    The services symposium features five thematic sessions highlighting ways Hong Kong services, including financial services, legal and arbitration, design and branding services, digital marketing and ICT services, can help Indonesian companies expand their business in Asia, and especially the Chinese mainland.

    Product expo features lifestyle themes

    In addition to showcasing Hong Kong’s services, more than 190 participating companies are also presenting Hong Kong lifestyle products in four major themed zones; fashion and fashion accessories, jewellery and watches, gifts and houseware, and consumer electronics. There is also a display of award-winning pieces.

    An invitation-only gala dinner will be held this evening for some 500 businesspeople from Hong Kong and Indonesia. The “In Style – Hong Kong” citywide campaign continues through 20 September, the centerpiece of which is a Hong Kong galleria at the Skybridge in Grand Indonesia Shopping Town.

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  • Indonesian retailers prepare for inflation shock

    Indonesian retailers have warned consumers of prices rises ranging from five to 12 per cent.

    Roy N. Mandey, chairman of the Indonesia Retailers Association (Aprindo), says the nation’s retailers plan to increase prices to consumers by an average of six to seven per cent as they battle with the weakening value of the rupiah.

    “Price increases for food and beverage products would be around five per cent, while electronics would see a hike of between 10 and 12 percent,” Mandey said in an interview with the Jakarta Globe.

    The Indonesian currency has lost 15 per cent of its value this calendar year, and the government has disrupted the economy further by introducing new import tariffs on many consumer goods and restricting alcohol sales in convenience stores.

    Mandey said in an interview he expected retailers to increase prices in October, a typically high month for stock replenishment.

    Members of Aprindo, which include hypermarket operator Matahari Putra Prima and convenience store network Sumber Alfaria Trijaya, have been struggling to respond to stagnating retail demand as the purchasing power of consumers has slipped.

    In July, Indonesian retail sales growth fell to its lowest level since last December, rising just 4.8 per cent.

    In 2014, Indonesian retail sales topped Rp 168 trillion, but the last estimate for 2015 stood at just 152 trillion. Aprindo is hoping for Rp 175 trillion but says for that level to be reached the government would have to remove some regulatory barriers.

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  • Shoppers seeking “transformation” of retail experience

    Shoppers seeking “transformation” of retail experience

    Shoppers globally are demanding their retail experience is “transformed”, a study by MasterCard has revealed on the eve of this year’s World Retail Congress.

    And one of their top priorities: “simpler and more innovative ways to pay” according to the world’s first retail focussed ‘social listening study’.

    The MasterCard Retail Social Listening Study, in partnership with Prime Research, analysed 1.6 million unprompted online conversations around shopping and retail during the last 12 months across 61 international markets in order to understand consumer experience.

    Key findings from the study indicated retailers are experiencing a shift in consumer expectations, requiring “new and richer experiences”, says MasterCard, which will enable consumers around the world to shop at the ‘speed of life’.

    Key findings include:

    • Convenience through technology innovations: Convenience was the most positively discussed aspect of new digital payment methods in shopping and retail related conversations (77 per cent), with the travel sector leading the way in terms of the highest share of coverage. Consumers specifically highlighted their preference for not necessarily needing to take their wallet on every trip and being able to use mobile payments when they travel.
    • Being rewarded: Rewards and benefits for the consumer was the most vociferously and positively discussed topic across social media when it came to shopping and retail (38 per cent share of coverage of the six aspects measured). Entertainment was the sector leading the way, where rewards and benefits was most discussed. Consumers expressed eagerness for further acceptance of NFC payments allowing them to receive rewards for using them regularly.
    • Demand for increased acceptance: After rewards and benefits, consumer discussion of which retailers do and do not accept newer forms of payment was the second most discussed topic according to the study (21 per cent share of coverage of the six aspects measured). Consumers discussed extensively their desire for retailers to integrate new payment systems, with conversations about fashion being most prominent in terms of sector. Fashion focussed shoppers were the most keen to shout about retailers who accept new methods of payment, such as contactless acceptance and mobile payment capabilities.

    Asia Pacific respondents had the highest percentage of favourable tone on the topic of Contactless Payments.

    In addition, Twitter was highlighted as the most frequently used social media platform globally when it came to online conversations about retail and shopping.

    Carlos Menendez, executive director for international markets at MasterCard said the wave of social engagement seen every time new payment innovations are rolled out truly reflects the demand and desire for new and more convenient ways to pay.

    “It also shows that payments have really moved into the heart of the shopping experience – causing frustration when not accepted and engagement when fast, easy and personal.”

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  • Nike, Muji, Adidas apply for Indian retail rights

    Nike, Adidas and Muji are among eight global companies seeking single brand retailing approval from the Indian government.

    According to a report in The Indian Express the Department of Industrial Policy and Promotion (DIPP) has received eight applications from global brands including Skechers, Kiko International, Ryohin Keikaku (Muji), Nike, Adidas and Swarovski after foreign direct investment rules were relaxed in July.

    Foreign companies can now conduct business through more than one joint venture in India, according to the newspaper.

    Since then, ITaly’s Kiko International has applied to retail beauty and skin care products, apparel, jewellery and handbags. Shoe maker Skechers and glass creator Swarovski followed.

    Swarovski, along with Nike, have previously had applications turned down – in Swarovski’s case because it wanted to sell in both cash-and-carry chains and single brand retail stores. It was told to reapply with separate applications, The Indian Express reports.

    The identity of the other two companies was not revealed.

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  • China retail sales up 10.8 pct in August

    China retail sales up 10.8 pct in August

    China’s retail sales grew 10.8 percent year on year to 2.49 trillion yuan (390.89 billion U.S. dollars) in August, the National Bureau of Statistics (NBS) said Sunday.

    The growth rate picked up slightly from 10.5 percent in July.

    A key reason for the month-on-month rise in retail sales was rising retail prices, and the August retail sales growth rate is almost the same as in July if one deducts the price factor, said NBS statistician Lin Tao.

    In the first eight months, retail sales grew 10.5 percent.

    Growth in rural areas continued to outpace that in cities.

    Sales in rural areas rose 11.9 percent in August and 11.7 percent in the January-August period, in contrast to the 10.6-percent and 10.3-percent growth seen in urban areas.

    Earnings for catering services in August grew 12.4 percent, 0.2 percentage points higher than July.

    Chinese consumers increasingly favored online shopping. In the first eight months, online sales rose 36.5 percent year on year to 2.24 trillion yuan.

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  • Lulu to open first hypermarket in Indonesia this year

    Lulu to open first hypermarket in Indonesia this year

    The UAE-based Lulu Group will mark its first retail push in Indonesia by opening its first hypermarket in the capital city of Jakarta by this year end.

    The announcement came during the visit of President of Indonesia, Joko Widodo (popularly known as Jokowi), to Abu Dhabi. He visited the Lulu Hypermarket at Khalidiyah Mall in Abu Dhabi, along with a high-level delegation.

    The Indonesian President is on a five-day state visits to three Middle East countries — Saudi Arabia, United Arab Emirates and Qatar.

    “With an initial investment of $300 million in the first phase, we plan to open 15 hypermarkets by the end of 2017 and a central logistics and warehousing facility in Jakarta. These projects are likely to generate more than 5,000 job opportunities for Indonesians,” said Yusuffali MA, managing director of Lulu Group.

    The group expects to invest a total of $500 million in Indonesia over the next five years.

    “The fact that we are going to Indonesia with our Halal Hypermarket concept, is giving us the encouragement to look for a wider market segment there,” added Yusuffali.

    Apart from Jakarta, Lulu intends to open hypermarkets in Bandung, Solo, Semarang, Surabaya and Yogyakarta.

    “We also plan to set up contract farming to ensure continuous supply of high quality products and to support the Indonesian agriculture sector,” said Yusuffali.

    The Indonesian President was welcomed at the hypermarket by Yusuffali; Saifee Rupawala, CEO; Salim M A, director; Rajmohan Nair, director – Lulu Far East operations, and a large number of Indonesian expatriates.

    President Jokowi and the accompanying delegation were taken on a guided tour of the hypermarket by Yusuffali and team who briefed him about specialties of the retail store.

    The president later urged Yusuff Ali to export more products from villages and towns in Indonesia.

    The Lulu chain currently operates 117 stores across the UAE, Oman, Bahrain, Kuwait, Qatar, Saudi Arabia, Yemen, Egypt and India. -TradeArabia News Service

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  • Chinatown Mid-Autumn Festival Celebrates Singapore’s Golden Jubilee

    Chinatown Mid-Autumn Festival Celebrates Singapore’s Golden Jubilee

    A yearly extravaganza, Chinatown will once again don on specially designed lanterns, accompanied by a myriad of decorative installations, to present the lights and sounds of the Mid-Autumn Festival that will take place from Sunday, 13 September to Monday, 12 October 2015.

    A total of 2,300 lanterns will line the busy streets of the precinct, stretching from Eu Tong Sen Street and New Bridge Road down to South Bridge Road. Bearing a strong SG50 theme this year, the Festival, which is named A Golden Jubilee Mid-Autumn will celebrate Singapore’s Golden Jubilee with the nation.

    For the first time, Kreta Ayer-Kim Seng Citizens’ Consultative Committee (KA-KS CCC), the organizing committee for the Chinatown Mid-Autumn Festival, will work closely with the students and faculty of the Nanyang Academy of Fine Arts (NAFA) for a creative interpretation of the street lanterns and decorations.

    Dr Lily Neo, Grassroots Adviser said: “2015 is a very significant year for Singapore as the nation celebrates its Golden Jubilee. The Chinatown precinct has a rich heritage, and we hope that by injecting strong elements of local culture and icons of yesteryear, this year’s Mid-Autumn Festival can be more meaningful for Singaporeans and tourists. We are also delighted to be able to create opportunities for the youths in Singapore to be more involved in our traditional festivals and gain a deeper understanding of our cultural heritage.”

    Witness the Festival come to life at the Official Opening and Light Up Ceremony, which will take place on Sunday, 13 September 2015 along New Bridge Road and Eu Tong Sen Street.

    Deputy Prime Minister and Minister for Finance, Mr Tharman Shanmugaratnam will be gracing the event as the Guest-of-Honour, kick starting the celebrations at the Chinatown Mid-Autumn Festival. Local and overseas talents will showcase thematic performances with a uniquely Singaporean storyline that makes a reference to the history and traditions of the Mid-Autumn Festival.

    Mr Kenneth Lim, Director, Cultural Precincts Development, Singapore Tourism Board, said: “The Mid-Autumn Festival, set in the historic precinct of Chinatown, is another key event to allow Singaporeans and visitors to deepen their understanding of the festival’s significance and witness how it is celebrated. The exciting line-up of events this year will not only be a nostalgic trip down memory lane, but also one that will allow visitors to engage and interact with locals through the different activities on offer, and allow them to better appreciate Singapore’s unique multicultural heritage.”

    Youth engagement through first-time partnership with NAFA students for lantern designs

    KA-KS CCC stayed true to its aim to engage the younger generation and provide youths with opportunities to be actively involved in traditional festivals by partnering with NAFA this year.

    Through a collaborative effort, 10 students from NAFA have been handpicked to participate in this year’s Chinatown Mid-Autumn Festival, presenting innovative interpretations of elements that are truly Singaporean and re-proposing them onto the lanterns and street decorations this year. From landmarks like the iconic old Toa Payoh playground to campaign icons like Singa the Courtesy Lion and Water Wally that mark the key milestones in Singapore’s history, this year’s decorations will bring a sense of nostalgia to all Singaporeans.

    Over the last four months, the students had the opportunity to work closely with KA-KS CCC, as well as a team of experienced craftsmen from Zi Gong Zhongyi Lantern Lighting Art in Sichuan to design, build and install the lanterns.

    Ms Marienne Yang, Vice Dean of NAFA’s 3D Design Programme said: “The 10 participating youths are Year Two and Year Three students reading for their Diploma in Design. This includes participants from the Interior & Exhibition, Object & Jewellery as well as Landscape & Architecture Design programmes. They worked as a multi-disciplinary team to propose and refine concepts for KA-KS CCC for this large scale installation, and had hands-on learning experience with the craftsmen on aspects of the production and set-up process.”

    Festival highlights

    To engage the young and old in the celebratory ambience of the Chinatown Mid-Autumn Festival 2015, KA-KS CCC has organized an array of exciting events and activities from Monday, 13 September 2015, to Monday, 12 October 2015.

    A first this year, KA-KS CCC and the Chinatown Business Association will host the Chinatown 1960s Fancy Dress Contest “Mid-Autumn Festival 2015 – Back to the 60s”, a fancy dress contest featuring fashion styles of the 1960s, on Saturday, 26 September 2015. Participants will showcase fashion statements of that era at the first ever pop-up runway along Pagoda Street. Visitors who come dressed in their 1960s attire will also stand a chance to bring home limited edition door gifts.

    Shortlisted works from close to 180 children and students who pit their creative skills against each other at the annual Mid-Autumn Lantern Painting Competition will also adorn the streets of Chinatown. Winning lanterns from the competition, held on Saturday, 6 September 2015, will be displayed at Chinatown Food Street along Smith Street until Monday, 27 September 2015.

    Experience the festival in its full glory and discover the charm of Chinatown via the complimentary Heritage Walking Trail, where our friendly tour guides will bring participants around the precinct, sharing anecdotes and historical facts about the heritage of Singapore’s Chinese enclave. With a wide variety of stalls at this year’s Mid-Autumn Festival Festive Street Bazaar, visitors will have endless options as they shop for traditional snacks and knickknacks such as mooncakes, preserved food, decorative items to potted plants and clothing.

    Be entertained by lively and vibrant Chinese cultural performances, festive songs, and music and dance performances by local entertainers and troupes from China at the Nightly Stage Shows at Kreta Ayer Square during the Chinatown Mid-Autumn Festival period.

    Join 3,000 participants for the annual Mass Lantern Walk on Sunday, 27 September 2015, and immerse in the Mid-Autumn festivities under the dazzling displays around Chinatown. The Mass Lantern Walk procession will take a leisurely stroll down Chinatown, while being entertained by local and overseas performing groups, as well as eye-catching mascots decked out in vibrant LED suits at 10 locations along the route.

    For more information on the variety of activities lined up for this Mid-Autumn, please refer to Annex I and II. Or you may visit us at:

    – Website:www.chinatownfestivals.sg

    – Facebook: https://www.facebook.com/chinatown.festivals

  • AirAsia’s Indonesian affiliate plans debt-to-equity conversion

    The Indonesian affiliate of Malaysian budget carrier AirAsia Bhd is planning to convert debt into shares to meet a new government rule on equity.

    The debt will be converted into preference shares which carry no voting rights, Sunu Widyatmoko, President Director of PT Indonesia AirAsia, told Reuters in a text message.

    He declined to disclose the amount to be converted as it is pending approval from the Indonesia investment coordinating board.

    Indonesia AirAsia is among several airlines that have until Sept. 30 to meet Indonesia’s “positive equity” rule after the country’s transport ministry extended the deadline from July 31.

    The ministry previously said 13 airlines had “negative equity” – meaning assets used to secure loans were worth less than the outstanding balance of the loans. It said those airlines risked suspension if they did not turn equity positive.

    AirAsia shares jumped as much as 5.4 percent in early trade, outperforming the benchmark index which was down 0.6 percent.- Reuters

  • Traditional retailers transforming to stay afloat

    Traditional retailers transforming to stay afloat

    The impact of e-commerce on the retail industry in China has meant traditional retailers have been transforming themselves by investing in new sectors, shifting to asset-light business models or exploring the online-to-offline business mode, Shanghai’s China Business News reports.

    It has been forecast that nearly 80% of retail sales growth in Shanghai between 2014 and 2016 will come from the city’s second-tier commercial areas, according to a research report on commercial real estate and shopping centers.

    Beijing, which accounts for 16.66% of the country’s total number of high-net-worth individuals, is considered by retailers to be a market with great growth potential.

    A major factor affecting brands’ considerations in making inroads into a shopping mall is its geographic location. A mall in an area with a low vacancy rate is usually more attractive than that with a high vacancy rate, said Fan Hongjuan, head of retail services at DTZ East China.

    For instance, the vacancy rate in shopping centers in Hangzhou is as low as under 2%, while the rates in Shenyang, Chengdu and Chongqing are more than 10%, Fan added.

    High vacancy rates usually stem from shopping center operators’ incompetence in attracting brands. Brand operators are largely unwilling to set up in shopping centers in remote areas because low business turnover might not offset high rental costs. Even in downtown areas, some shopping centers located in remote parts of the country have been experiencing sluggish business, according to some industry experts.

    Under the circumstances, traditional retail business operators are seeking to transform their operating models. Property conglomerate Dalian Wanda Group has devised plans to undergo restructuring of its unprofitable businesses. It has closed a number of its department stores and plans to convert 29 of its 89 karaoke parlors into other types of entertainment outlets, in response to the slump in businesses affected by the country’s slowing economy.

    The business conglomerate has also been engaged in transforming toward an “asset-light” business model in recent years.

    Meanwhile, Beijing Wangfujing Department Store (Group) has been exploring an online-to-offline business mode to cater to consumers born in the 1980s and 1990s, who are expected to be the main force of consumption in the near future, according to the report.

  • Tesco Nears $6B Deal To Sell South Korea Unit

    Tesco Nears $6B Deal To Sell South Korea Unit

    A group led by MBK Partners Ltd., North Asia’s biggest independent buyout firm, is trying to close a deal to buy Tesco Plc’s business in South Korea for about $6 billion, including debt. The acquisition, if completed, would be the country’s biggest private equity deal, Bloomberg reported, citing people familiar with the matter.

    The group, which includes South Korea’s National Pension Service, got exclusive negotiating rights Wednesday to take over Tesco’s Homeplus business. If the deal goes through, it would give the MBK-led group a retail chain that stands second only to market leader E-Mart of the family-run Shinsegae Group Co., through more than 900 stores and over $7 billion in annual revenue.

    The deal would also allow U.K.’s Tesco to pay off its massive debt of 21.7 billion pounds ($33.2 billion). The Bloomberg report added that Tesco is also looking at options to sell its analytics business, Dunnhumby.

    MBK’s consortium reportedly beat a rival consortium led by New York private equity firm KKR & Co. The South Korean business is considered Tesco’s “crown jewel” in Asia, Bloomberg reported, citing estimates from Credit Suisse (SIX:) Group AG.

    The business has a valuation of 4 billion pounds, more than the 1.6 billion-pound valuation of Dunnhumby, a U.K customer science company owned by Tesco. However, Homeplus posted a net loss of 300.1 billion won ($255 million) for the year ending February 28, down from last year’s profits of 463 billion won. Revenues for the company also reportedly shrank to 8.6 trillion won, down 4 percent, due to weak household spending. Homeplus reportedly had a market share of 25 percent, behind E-Mart’s 29 percent.

    Tesco posted a loss of 6.4 billion pounds ($9.56 billion) in April, the biggest-ever in its 96-year history. The Bloomberg report added that the company’s chief executive Dave Lewis is trying to revive sales for the company’s market-leading grocery business, which is facing a severe price war due to the expansion of German discount retailers Aldi and Lidl.

    The retailer entered South Korea in 1999 through a joint venture with Samsung (KS:) Group in which Tesco held an 81 percent stake initially, Bloomberg reported. It came in with an investment of 130 million pounds and slowly bought out Samsung’s stake.

    Tesco’s shares have fallen close to 20 percent in the past one year while London’s benchmark has seen a decline of nearly 11 percent in the same period. On Wednesday, the stock was up 0.11 percent in mid-morning trade.

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  • Erajaya announces joint ventures in Singapore and Malaysia

    Erajaya announces joint ventures in Singapore and Malaysia

    Indonesia-based distributor and retailer Erajaya Group has announced joint ventures in both Singapore and Malaysia. Erajaya has formed a joint venture with Alphabright to set up Era International Network in Singapore. The company has also teamed up with Malaysian citizen Li Chau Ging to form Era International Network in Malaysia. The moves form part of Erajaya’s plan to expand its distribution and retail footprint in both countries.

    Alphabright, which was established a year ago, is the sole distributor of ZTE mobile phones in Singapore. Erajaya will hold a 70% stake in Era International Network in Singapore, with Alphabright controlling the remaining 30%.

    Erajaya will hold a 95% stake in Era International Network in Malaysia, with Li Chau Ging controlling the remaining 5%. The new venture in Malaysia builds on Erajaya’s purchase of a 60% stake in CG Computers in 2014 – a business that included Apple reseller Switch. Li Chau Ging is an existing business partner for Erajaya in Malaysia due to the company’s prior investment in CG Computers.

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  • UBS Capitulates, Slashes Hang Seng Forecast

    UBS Capitulates, Slashes Hang Seng Forecast

    As China devalues yuan and the U.S. is on track to raise rates, Hong Kong, whose currency is pegged to the dollar, is in trouble.

    Forecasting “black sky”, UBS now sees the Hang Seng Index to end the year at 19,775, another 5.5% downside from its current level. The Hang Seng Index has fallen by about 25% since its late April high.

    Apart from China slowdown, “we have seen a combination of the three pillars of Hong Kong’s economy weakening (tourism and re-export) or showing signs of weakness (property),” wrote Spencer Leung.

    The Hang Seng Index is now valued at only 9.4 times forward earnings, a good 0.8 times standard deviation below its 2-year average, but “the current valuation of Hong Kong equity may not be attractive enough to compensate for potential earnings downside.” UBS estimates Hong Kong companies’ earnings could drop 31% next year.

    It is not easy for retail businesses to operate in Hong Kong, because the rent is simply too high. UBS estimates that ground-level stores in prime shopping districts in Hong Kong will have to see their rental expenses drop 70% from their peak to break even. Last week, U.S. handbag bag Coach closed its flagship shop in the Central shopping district.

    Overnight, the iShares MSCI Hong Kong ETF rose 0.5%.

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  • Qantas announces Hugh Jackman as global ambassador

    Qantas announces Hugh Jackman as global ambassador

    The “Boy from Oz” Hugh Jackman and Australia’s national carrier Qantas have announced a new partnership to promote Australia on the global stage.

    The award-winning actor has signed on to become an official global ambassador for the airline and will also work with Qantas on community projects in Australia, with further detail to be announced soon.  

    The international superstar is one of Australia’s most successful and highly regarded performers with a career spanning 30years from his early days in “Correlli” right after his graduation from Western Australian Academy of Performing Arts, to his recent stage and screen successes including the X-Men films, The Boy from Oz stage show, the film version of Les Misérables and the soon to be released fantasy film Pan.

    Jackman said he was proud to become a Qantas Ambassador and was looking forward to teaming up with Qantas to highlight the best of Australia.

    “I travel a lot and like all Aussies, I get a buzz whenever I see the familiar red tail and the kangaroo logo, no matter where I am in the world.  Qantas is great airline with great people and represents the very best of our wonderful  country,” Jackman said.

    “Qantas has always had a vital role in promoting Australia as a tourism destination and I’m looking forward to playing my part as we work together to showcase our amazing cities, landscapes and experiences in the U.S., Asia and beyond.

    “What I also love about Qantas is the role it plays in the community.  It’s inspiring to see an Australian company stand up for causes that make a difference and I know it’s something that the Qantas team and its employees are really passionate about.

    “The Qantas projects I will be getting involved with will create opportunities for Australians to learn, to work and to reach their potential.  I will also be working directly with Qantas employees to build on the fantastic community work they already do and I can’t wait to get started later this year.”

    Qantas CEO Alan Joyce said the airline was thrilled to welcome Hugh Jackman in to the Qantas family as an ambassador.

    “Hugh represents everything that the world loves about Australians and he has used his enormous international success to promote Australia as well as highlight causes that are close to his heart.

    “We will build on the work both Qantas and Hugh are already doing and together we believe we have the capacity to create some truly life changing opportunities,” Joyce said.  

    Further details in relation to the Hugh Jackman/Qantas community initiatives will be announced in coming weeks.

    Qantas has also recently been announced as a co-sponsor of Jackman’s upcoming “Broadway To Oz” arena shows across Australia in November and December.

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