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Apple Inc, which just became China’s number one smartphone vendor, expects to open stores in another five cities based on advertisements that it placed for retail staff.
It is hiring staff for its stores in Guangzhou, Shenyang, Tianjin, Nanjing and Dalian, where they currently don’t have outlets, Bloomberg News reported on Friday, citing advertisements posted on Apple’s website.
Apple has 15 stores in the Chinese mainland and Hong Kong by 2014, and the firm plans to lift that to 25 soon.
Hong Kong Customs and police have raided four properties, seizing nearly 4000 fake items in an ongoing clampdown on counterfeit rings in the city.
The raids occurred in Mong Kok and Tsim Sha Tsui and resulted in the arrests of four men aged 23-47.
The seized goods have an estimated value of HK$3.37 million (US$434,000) were seized. During an operation, suspected counterfeit goods were found mixed among genuine products in a retail store in Mong Kok. They were sold at the discount price to the genuine products. After further investigation, Customs officers found some more suspected counterfeit goods in a warehouse in Tsuen Wan. A total of 438 suspected counterfeit goods were seized in this case, valued at about $1.17 million. The arrested 47-year-old man has been released on bail pending further investigation.
Three other clandestine storehouses keeping and selling suspected counterfeit goods were also smashed by Customs during the operations. The enforcement actions there resulted in the seizure of about 3500 items of various kinds of suspected counterfeit goods for sale, including watches, handbags, leather goods and sunglasses, with an estimated value of around $2.2 million. Three men, aged 23 to 28, were arrested.
The Customs Divisional Commander of Intellectual Property Transnational Investigation Division, Mak Wai-chung, said Customs and police will continue to conduct joint enforcement actions to more effectively combat the sale of counterfeit products. He reminded consumers to shop at retail stores with good reputations or at the official stores of the brands.
Under the Trade Descriptions Ordinance, any person who sells or possesses for sale any goods with any forged trademark, or applies a false trade description in the course of trade, commits an offence. Upon conviction, offenders are liable to a maximum fine of $500,000 and imprisonment for five years.
Isetan Mitsukoshi has adopted a new branding positioning – and promises a new in-store concept which will make its debut in Malaysia.
In a message to shareholders, CEO Hiroshi Ohnishi says the company has adopted a new corporate message for 2015 ‘This is Japan’, which will lead to a new in-store concept shortly to be launched in Kuala Lumpur’s Lot 10 shopping centre.
“Since generations past when Mitsukoshi and Isetan operated as kimono merchants, we have always had an eye for quality. From the sense of touch as silk meets the skin, the sound as the obi closes, through to the fragrance and taste of the experience – refining the five senses has always been an essential component of our trade.
“Under our Japan Senses initiative to date, we have also been able to source the very best of Japan’s culture and fine products and deliver this widely to our valued customers,” Ohnishi explains.
“From now on, we will build on this product range and place a focus on communication in all its forms including the grace and beauty of Japanese omotenashi to present This is Japan as part of our management strategy and further refine our corporate activities.”
A new ‘Japan mall’ will open inside the Isetan Kuala Lumpur Lot 10 store as part of the company’s overseas launch of This is Japan.
He explains of the concept: “In 2015, we intend to provide new value and continue to aim toward realising our group vision of being the world’s foremost retail services group.”
In other moves, in Japan it will remodel the interior and art floor (5F) and baby and childrenswear floor (6F) of its flagship Isetan Shinjuku Main store this spring.
“We will also open Isetan Salone select stores in Tokyo Midtown, Harajuku Alta in spring, and Japan Duty Free Ginza on the eighth floor of Ginza Mitsukoshi in autumn.”
Ohnishi says the company’s goal is to create new value to truly move its customers – “by no means an easy task”.
“Each and every one of our staff must transform themselves to stay ahead of the changing interests of our customers. Because of this, we position employee training and development as the most important action that we can take toward achieving our group vision, and we are reforming our human resource structures with a focus on how our stylists (salespeople), who work in closest contact with our customers, can provide satisfaction and move our customers through the sales experience.
“In 2015, we will focus even more closely on transforming our storefronts to satisfy our customers.”
Of 2014, Ohnishi said price levels rose due to the weaker yen as well as April’s sales tax increase.
“While we have seen signs of recovery in personal consumption in some areas, lacklustre economic conditions are continuing, mainly in the regions.
“Our business faced reactionary drop-off after the strong demand leading up to the increase in consumption tax; however, the Isetan Mitsukoshi Group has been warmly supported by our customers, and we have turned the corner toward recovery.
“Nevertheless, we still expect the economic environment to remain severe in the retail industry, and we must further accelerate our corporate reform in order to continue to grow.”
Alibaba Group Holding Ltd’s financial arm is seeking regulatory approval to access the Chinese national police’s database so consumers can open online bank accounts with a mug shot.
The financial arm, which operates the PayPal-like Alipay service, is planning to use the Face++ facial recognition system developed by partner Megvii Inc. The idea is that this would allow consumers to set up accounts without having to physically go to a bank,
Megvii Chief Executive Officer Yin Qi said in a recent interview.
“In terms of technology, everything has been sorted,” said Yin, 27, who dropped out of Columbia University’s doctorate program in computer science to co-found Beijing-based Megvii, whose latest round of funding values the company at US$100 million. “We are just waiting for regulators to approve.” The plan helps illustrate how Alibaba is joining the likes of Facebook Inc, Google Inc. and Baidu Inc. in embracing biometric technologies and artificial intelligence. Megvii’s application uses facial scans held in a Ministry of Public Security database drawn from legal identification files on about 1.3 billion Chinese.
The grass isn’t always greener on the other side.
After years of fuelling the growth of luxury labels, there are signs that the global high-end consumer is starting to cool – placing a renewed emphasis on the importance of the United States and its affluent shoppers.
According to a recent report by KeyBanc analyst Edward Yruma, weakness in the global economy, a strong US dollar and ongoing geopolitical issues are contributing to a slowdown among consumers who live overseas.
Mattel recently announced the appointment of Christopher A. Sinclair as the company’s new chairman and interim Chief Executive Officer.
inclair, who has served as a member of Mattel’s Board of Directors since 1996 and as Independent Lead Director since 2011, has extensive experience in leading global, multi-brand, consumer-focused companies.
He was Chairman and CEO of Caribiner International Inc. from 1999-2000, President and CEO of Quality Food Inc. from 1996-1998, and prior to that served in senior roles at PepsiCo, including as Chairman and CEO of Pepsi-Cola Company, and President and CEO of PepsiCo Foods & Beverages International and Pepsi-Cola International.
“I look forward to engaging with the entire Mattel community as we work to deepen our connections with children and parents through expanded product innovation and improved retail execution. We will be working during the coming months to revitalize the business and to identify the right leadership for Mattel as it enters its next phase of growth and value creation,” Sinclair said in a statement.
MasterCard and BOC Services, the acquiring subsidiary of Bank of China, recently signed an agreement to making MasterPass available to Chinese merchants.
A MasterPass wallet allows mobile shoppers to quickly and easily check out on any device, by simply clicking the “Buy with MasterPass” button.
They can also securely store MasterCard and other branded credit, debit and prepaid card information, along with shipping addresses, so that they can be easily accessed when paying for purchases.
This service is currently accepted by over 70,000 merchants in sixteen countries including China, as well as Australia, Canada, Czech Republic, France, Italy, New Zealand, Poland, Romania, Russia, Singapore, South Africa, Taiwan, United Arab Emirates, United Kingdom and the United States.
In China, merchants including Ctrip.com, Osell.com, and Ceair.com will be among the first business implementing the service.
Zhuang Dawei, General Manager, BOC Services Shanghai Branch, said the goal is optimize shoppers’ payment experience, and in the process, create more business opportunities for merchants.
“Every digital device now has the potential to become a commerce device and Chinese consumers’ demands and spending habits are changing, too. This is bringing new challenges to the foundation of business – payment. This new cooperation will enable more Chinese merchants to utilize the powerful technology of MasterPass, creating more cross-border business opportunities,” added Dennis Chang, General Manager, China, MasterCard.
The new casino is an imposing structure on Manila Bay with 6 gleaming golden towers surrounding a giant egg-shaped dome, and industry and government leaders hope it will attract cashed-up tourists from other parts of Asia
Manila aims to rival Macau and Las Vegas in terms of gaming revenues, and the “City of Dreams” is the latest in a string of casinos that have opened in recent years.
The new casino is an imposing structure on Manila Bay with 6 gleaming golden towers surrounding a giant egg-shaped dome, and industry and government leaders hope it will attract cashed-up tourists from other parts of Asia.
The casino is a joint venture between the country’s richest man Henry Sy, Australian billionaire James Packer and Lawrence Ho, son of Macau casinomogul Stanley Ho.
“The goal is to find the best (sites) in Asia … The Philippines is one of the fastest growing economies anywhere in the world. We’ve seen the market really pick up,” Ho told reporters.
Australian billionaire James Packer (right) and Melco crown co-chairman and with his co-chairman Lawrence Ho (center) during a press conference on the opening of the City of Dreams mega-casino in Manila on February 2, 2015. Photo by Ted Aljibe/AFP
Ho also acknowledged the huge cost of building the resort. The Philippine government requires a minimum $1 billion investment for new casinos built in the area.
Packer said jokingly that the resort was inspired by Hollywood movies “Casino” and “Oceans Eleven,” and Robert de Niro, Martin Scorsese, and Leonardo DiCaprio have appeared on giant billboards and TV commercials to promote the casino.
The 6.2-hectare complex is the second of 4 mega resorts to open on reclaimed portions of the bay, just a few hundred meters from the city’s slum communities.
The City of Dreams’ golden dome, called the “Fortune Egg,” houses two exclusive nightclubs, including Pangaea, where Picasso copies hang beside pictures of safari animals on walls covered in fake snakeskin.
Singapore’s Changi Airport says sales at retail outlets across its terminals topped S$2 billion in 2014, despite a slump in passenger numbers inbound from China.
It’s the second year in a row the $2 billion barrier was breached – Its 2013 growth represented a nine per cent increase on 2012, but the percentage growth was not revealed this year, suggesting a stable result.
The strength of the airport’s retail business – in part a consequence of the airport’s careful positioning as a transit hub, delivering a captive market of thousands of potential shoppers every day – underlines its decision to invest in the massive Jewel retail experience in partnership with CapitaMalls. The complex – already under construction and scheduled for completion by end of 2018 – will have five storeys above ground and five basement storeys, covering a total gross floor area of about 134,000sqm.
Last year, Changi hosted 54.1 million passenger movements, the highest number yet, representing an average of 148,219 every day, the most in its 33-year history.
What’ significant about Changi’s 2014 figures is that the retail sales held up despite a significant downturn in spending by Chinese passengers. China has been a key market for retailers in the airport, but fewer visited, or transited, in Singapore last year and those who did were coming from less affluent population centres, thus with more restricted budgets. It’s the same challenge retailers in the high streets and malls of Hong Kong and Singapore bemoaned all last year.
Changi Airport Group (CAG) said that – just like in 2013 – the biggest customer groups by nationality were China, Singapore, Indonesia, India and Australia.
The most-purchased retail categories were, perhaps predictably, cosmetics and perfumes, chocolates and candy, electronics, luxury goods, liquor and tobacco.
New Horizons, the world’s largest independent computer training company is planning expansion into ASEAN.
The company, which offers a broad range of technical and desktop application training and certification courses, has signed an exclusive franchise consultancy agreement with VF Franchise Consulting with the aim of expanding to Thailand, the Philippines and Vietnam.
Scott McDaniel, director of international development of New Horizons, says that with successful training centers already open in Singapore and Malaysia, New Horizons’ expansion into the remaining countries of the Association of Southeast Asian Nation (ASEAN) will service the existing high demand for professional IT training and certification.
“We are happy to partner with VF Franchise Consulting to bring our world-class IT training and certification centers to the rest of ASEAN.”
Headquartered in the US, New Horizons has been embarking upon an aggressive international expansion campaign that has seen it grow successfully in over 60 countries and over 300 locations.
“Through our extensive research, further expansion into ASEAN is desirable due to the significant growth of the IT sector in Thailand, the Philippines and Vietnam,” McDaniel said.
New Horizons Computer Learning Centers is one of the most successful franchises in the training industry. Over the last 30 years, the company has successfully trained over 30 million people. New Horizons offers instant recognition for franchisees as the clear market leader in IT training.
Added Sean T. Ngo, CEO of VF Franchise Consulting: “New Horizons offers global recognition for franchisees as the clear market leader in IT training. The brand’s huge brand name and international success in the IT training industry gives its franchisees the ultimate competitive advantage.”
Asia Pacific retail rent growth will continue in 2015 – but at a slower pace, according to the latest research from CBRE Asia.
Rental growth is projected to ease to 2.4 per cent region wide, compared with 5.4 per cent in 2014.
The hottest markets: Tokyo, where rentals are expected to rise by about 10 per cent, followed by Taiwan’s Taipei, Sydney and Melbourne which will post more modest growth, according to CBRE.
Prime rental growth in China will be less than five per cent in 2015, with key city retail markets performing differently. “Growth will being driven by Beijing and Shanghai but dragged by Shenzhen and Guangzhou.”
In the report – titled 2015 Outlook: Key Retail Trends – CBRE expects new retail supply in Asia Pacific to reach 89 million sqft this year, a significant jump from the 53 million sqft in 2014. “However, much of this new supply will be in decentralised locations. A lack of high quality stock in prime locations -in cities such as Tokyo, Beijing and Shanghai – will lead to rental growth. Increasing competition among retailers and rising operational costs will see retailers focus on leasing prime space in key growth markets in 2015.”
“The market will become more challenging for landlords in 2015 as they will have to deal with more budget conscious retailers entering into lengthier negotiation processes,” explained Sebastian Skiff, executive director, retail services, CBRE Asia.
“Occupiers, meanwhile, will benefit from being more patient and taking time to formulate a proper strategy. In light of increasing vacancy pressure, increasing competition and the rise of e-commerce, landlords should have the willingness to embrace ‘retail-tainment’, and have the ability to proactively collaborate with tenants to ensure stronger retailer retention and consumer engagement.”
Skiff says landlords who invest more resources into conducting consumer surveys, market research and benchmarking exercises in order to better understand consumers’ and retailers’ requirements will be among the more successful this year.”
In other trends:
“CBRE sees that demographic growth, urbanisation and increasing household incomes will continue to support continuous growth in the region, with all markets projecting that retail sales volume will increase,” said Jonathan Hsu, director, research, CBRE Asia Pacific.
“Japan will continue to be a top performer due to the fast growing tourism market and the weaker yen spurring tourist spending. Retail sales growth in Japan is expected to rebound as the market recovers from the consumption tax hike in April 2014,” said Hsu.
“We expect consumption to also grow steadily after the government delayed the second phase of the sales tax increase.
“Elsewhere, the market will be quite challenging – in China due to the anti-corruption campaign continuing to affect the sector, with luxury retailers taking a more cautious approach to expanding in this market. In the lower tier cities, or suburban areas, there will be a strong downward pressure in rents due to the huge supply pipeline, weaker sentiment from retailers, and lack of experienced mall management.”
Could this be the most bizarre retail concept yet? An entire retail store devoted to natural mosquito repellents, located in the world’s busiest airports?
But it makes a lot of sense…
MosquitNo is a Dutch business has pioneered a natural means of protecting humans from mosquitos, a major vector of tropical diseases throughout Asia and in other regions with warmer climates.
MosquitNo has just signed space in Hong Kong for its regional headquarters. From there it will commence a roll-out of standalone stores in 60 per cent of the world’s international airports. It plans 10 flagship stores within five years, and aims to open in every airport which has 5 million or more passenger movements annually.
“This new venture will enhance growth of our business and enable us to present our full assortment to consumers,” MosquitNo said in a statement.
“As anti-mosquito products are amongst the top 10 most forgotten products when traveling we will help the consumer at large to help them protect themselves.”
MosquitNo is more than just a cream or spray. The company has created a whole range of merchandise to support the brand – and thus ensure it can actually stock a small retail store.
To date, there has been no indication of typical store size, but the brand has adopted vivid green livery for its marketing and promotional materials, cosmetics and even a clothing range.
MosquitNo’s website says the company was launched in 2009. “Our product range has become a distinctive concept with a new look at products that offer protection against mosquitoes and other insects – this is applicable for our polo and placemats.” For regulatory reasons it cannot make claims for its bracelets and adhesive ‘spotzzz’.
“Protecting our skin from biting mosquitoes previously meant using sticky lubricants including the toxic substance Deet. MosquitNo thought ‘this can be done with more fun and functionality’. Our concept and products are a new way of trendy, fashionable and comfortable protection against mosquitoes and other insects.” Ten per cent of its net profits are donated to Unicef.
In Hong Kong, it will open a warehouse to supply Asian stores and a growing online business.
Retail, wholesale and hotel operators around Ratchaprasong intersection plan to allocate a combined THB60 billion (USD1.8 million) to make the area an important retail destination in Asean over the next three years.
Japan’s retail sales rose a marginal 0.2 per cent in December – the sixth consecutive monthly year-on-year increase.
Analysts had expected a stronger one per cent increase, despite challenging economic circumstances largely due to the nation’s declining and ageing population.
Department stores were the weakest link, with data from the Japan Department Stores Association showing a same-store sales fall of 1.7 per cent year-on-year – the ninth consecutive fall. The fall would have been greater if not for a cushioning effect from increased shopping by Chinese tourists.
However, contributing to December’s figure was one less Sunday in the month, compared with December 2013, and the association noted that severe severe snowstorms hit northern regions during the month impacting on store footfalls.
Food and beverage sales in December rose 1.4 per cent, compared with November’s 2.7 per cent. Apparel sales rose 3.1 per cent, down on November’s 4.2 per cent.
December’s total retail sales of 13.52 trillion Yen marked the highest monthly total since March last year, when shoppers splurged in advance of an April sales tax rise.
The preliminary data from Japan’s Ministry of Economy, Trade and Industry showed full year figures were more encouraging: an overall increase of 1.7 per cent, compared with a one per cent rise in 2013.
Clothing prices are expected to rise across the board for the first time in five years as suppliers and retailers raise prices after a 17 percent slump in the Australian dollar.
Suppliers have warned retailers that prices for fashion clothing, underwear and basic apparel will rise significantly in the second half of calendar 2015, as currency hedges roll off and new-season stock comes into stores.
The Australian dollar has fallen 17 percent against the US dollar since June and 10 percent over the past 12 months, pushing up the cost of clothing sourced from China, Bangladesh, Sri Lanka, Thailand and Vietnam.