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Category: Living

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

  • India’s WoodenStreet eyes 15 stores by end of 2019

    India’s WoodenStreet eyes 15 stores by end of 2019

    In 2016, WoodenStreet entered the retail market with its first brick-and-mortar experience store in Bangalore. Established in 2015 as an online platform for quality custom furniture, WoodenStreet expanded its reach by opening 2 stores in 2017 and 9 stores in 2018, totalling to 12 experience stores. What’s next? 15 new experience stores by the end of 2019.

    Lokendra Ranawat, CEO, WoodenStreet expressed his aim to bring customization and quality a step closer to everyone’s home. “It’s not just about an online presence”, he elaborates, “but getting down there and interacting with our customers makes buying furniture a more personal experience, as it should be. We want people to not just visualize, but also feel the quality of furniture that we offer. We want them to see the limitless configurations, combinations and customization possibilities that they can actually get for themselves.”

    2018 was a long but fruitful year for WoodenStreet. Mumbai and Jaipur stores have been established in the last quarters of 2017, and the overwhelming response from these two stores, combined with a financial push from US$ 1 million Series A funding from RVCF, hardened the resolve to expand into further cities. Hence came the first stores of Ahmedabad, Hyderabad, Chennai, Pune, Noida, Gurgaon and Indore, with two more stores in Bangalore and Jaipur. This set up a large Omnichannel network, enabling greater penetration into the furniture market with a promise of quality and flexibility.

    “Last year was challenging but fun.”, says Virendra Ranawat, COO of WoodenStreet.com, commenting on the rocking journey. “But this hasn’t stopped us. We want to ensure that 2019 sees the addition of 15 more stores to our ever-growing roster. Which means that by the end of this year, we’ll have 27 brick-and-mortar stores in total.”

    WoodenStreet.com is a custom furniture store, with more than 30 delivery hubs and 12 experience stores spread across India, bringing quality solid wood furniture and the flexibility of customization closer to people and their dream of setting up a home flavoured to their tastes.

  • Swiggy India now opens Stores to deliver everyday needs

    Swiggy India now opens Stores to deliver everyday needs

    India’s food ordering and delivery platform Swiggy Tuesday said it has launched ‘Swiggy Stores’ moving beyond its core food delivery segment to provide access to consumers items across multiple categories. The company will deliver from these stores “in categories such as fruits and vegetables, kiranas and supermarkets, florists, baby care, health and supplements among others,” Swiggy said in a statement.

    With the launch of these stores, Swiggy wants to become the one-stop delivery app that enables access to every store in the city, it added.

    “Today’s announcement takes Swiggy to categories beyond food, where we hope to deliver the same level of delightful experiences to consumers for their everyday needs,” Sriharsha Majety, CEO, Swiggy said.

    It is the first milestone in Swiggy’s vision to elevate the quality of life for the urban consumer by offering unparalleled convenience, he added.

    Swiggy Stores will give its merchant-partners unmatched access to a combination of core assets to reach more existing and new customers, the statement said.

    For the delivery partners this will give them access to an additional avenue for income, it added.

    Founded in 2014, Swiggy currently connects consumers to over 60,000 restaurant partners across more than 80 cities.

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  • Vietnamese airlines excited, worried about direct US flights

    Vietnamese airlines excited, worried about direct US flights

    Vietnamese carriers are keen on operating direct flights to the US, but worried about recouping the large investments involved. The U.S. Federal Aviation Administration (FAA) is expected to grant a Category 1 rating to Vietnam soon, allowing direct flights between the two countries, reported earlier this month, citing two U.S. officials.

    Dinh Viet Thang, head of the Civil Aviation Authority of Vietnam (CAAV), said that direct routes to the U.S. would be a new market that Vietnamese airlines won’t have to face with strong competition from other foreign carriers. He did not elaborate.

    “Non-stop flights from Vietnam to the U.S. will be a brand-new market full of potential for local airlines, as no international airline has operated them so far,” he said.

    Local airlines are enthused about the possibility of operating direct routes. A Vietnam Airlines official who asked not be named said the carrier was considering the purchase of more airplanes which are capable of flying non-stop to the U.S.

    “None of our airplanes can fly directly, so we are considering the purchase of wide-body aircrafts such as Airbus 350-1000 or Boeing 787-8 Dreamliner,” the representative said.

    Budget airline Vietjet and new private airline Bamboo Airways have also said they are interested in opening direct flights between the two countries.

    The direct route is expected to cater to the large demand for travel between both countries. The number of tourists coming to Vietnam from the U.S. grew by 11.9 percent last year from 2017 to 687,000, according to the Ministry of Culture, Sports and Tourism.

    A Vietnamese population of over 2.1 million in the U.S., is also expected to be a stable source of travel demand, said industry insiders.

    Tourism companies are also having high hopes about prospects of direct flights. Nguyen Cong Hoan, vice general director of Hanoi Redtours, said that the number of customers travelling to the U.S. through his company has increased by 30 percent each year in the last few years.

    “A direct flight will make travel between the two countries much easier and reduce the time passengers have to wait in airports. We believe that our customers are willing to pay 20-40 percent more for a direct flight,” he said.

    Breaking even

    But there are also concerns about possible losses. Vietnam Airlines CEO Duong Tri Thanh had said earlier that the airline could face an average annual loss of $30 million in the first years of operation if it opens a direct route to the U.S.

    It would take at least five years for the national flag carrier to break even, he added.

    CAAV head Thang said that local airlines would need to purchase larger airplanes as most of the existing fleet cannot manage such long flights.

    Another option would be to reduce the number of passengers and/or cargo weight of existing aircraft to guarantee safety over a 13-hour flight, but this would reduce revenue, he added.

    The Vietnamese government had early last year approved plans to expand the network of national carriers to major markets including Australia, China, Europe and the U.S.

    Under these plans, Vietnam Airlines will go through with its proposal to open non-stop services to the U.S., starting with direct flights to San Francisco or Los Angeles.

    As Vietnam has never held an FAA rating, passengers travelling to the U.S. now have to transit through different countries and territories like China, Hong Kong and Japan, with a total time of 18-21 hours.

    In 2004, Vietnam Airlines sought permission from the U.S. to provide direct services. However, the request was denied because it was judged that the CAAV did not meet safety supervision requirements set by the FAA.

    Vietnam’s aviation industry has seen increasing demand in recent years. The country welcomed 12.5 million air passengers last year, up 14.4 percent from 2017, according to the General Statistics Office.

    The country’s aviation traffic increased 16 percent on average each year from 2010 to 2017, according to data from the civil aviation regulator.

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  • Ikea services foray boosts loyalty and sales

    Ikea services foray boosts loyalty and sales

    Ikea is turning to services to increase turnover and boost engagement with customers. Moreover, partnering with specialist companies in such areas as delivery and assembly allow it to focus on product design and sales, leaving post-checkout experiences in the hands of specialists, rather than committing its own staff and training resources. An example of the new Ikea services initiative is US odd-jobs app TaskRabbit, which Ikea bought in late 2017. Ikea recommends the service to customers who lack the time or patience to assemble their own kitset furniture products.

    Ikea reports that the number of jobs handled by TaskRabbit staff since it acquired the business had doubled and 10 per cent of the jobs undertaken are now assembling kitset furniture – five times the pre-purchase rate.

    Since the acquisition, TaskRabbit has expanded coverage to all 48 US cities with an Ikea store, launched in Toronto, Canada, and expanded in the UK beyond London.

    In Hong Kong, where few customers own cars, Ikea now offers both a delivery and assembly service with fixed fees according to location. Previously, it partnered with an app-based third party contractor.

    In Australia, Ikea has partnered with Airtasker and in India with UrbanClap, to offer assembly services.

    Reuters describes the Ikea services strategy as “a major strategic shift that it has been forced to adopt to stay in the game as waves of new competitors in an increasingly online world erode its dominance”.

    TaskRabbit’s quick success is prompting Ikea in the US to consider expanding services offered through Ikea, to include such tasks as interior design and furniture repair which would in turn potentially boost sales from stores.

    Jesper Brodin, CEO of Ingka Group, which owns most US Ikea stores, says TaskRabbit’s customer data could also help Ikea come up with new ideas for furniture.

    “As this community grows, it’s not only about fixing one or two things but actually to add professionalism in interior decoration, into ‘life at home’ practicalities,” Brodin said in an interview.

    “TaskRabbit is a super interesting business case because it is scalable, not only geographically but also into services at home.”

    GlobalData Retail MD Neil Saunders says a services foray could help Ikea boost its market penetration in the US, which is currently just 2 per cent. Despite the low market share, the US represents Ikea’s second-largest international market behind Germany, where it enjoys as 12 per cent share. Rivals like Walmart and Wayfair in the US have started offering assembly through TaskRabbit’s rival app Handy.

    Brodin wants TaskRabbit to expand into more countries.

    “We are convinced this is a way to access new customers in our cities. The convenience customer today has so many more choices, and they are used to getting a quick answer.”

  • Grab-Uber deal comes under fresh antitrust scrutiny in Vietnam

    Grab-Uber deal comes under fresh antitrust scrutiny in Vietnam

    Vietnamese authorities are set to further investigate the merger between Grab and Uber last year for possible violation of antitrust regulations. The Competition Council said after a thorough examination of documents and arguments furnished by both parties it has discovered a number of new details related to possible violation of competition laws by ride-hailing platform Grab’s acquisition of Uber’s business operations last March.

    It has returned the case dossiers to the Ministry of Industry and Trade’s competition and consumer protection department for further investigation. The investigation is expected to go on until April this year.

    Last year Singapore-based Grab acquired Uber in Southeast Asia in return for a 27.5 percent stake.

    Vietnam’s Competition Law requires any merger or acquisition that results in a company gaining a 30 percent market share to be reported to competition authorities.

    If a company gains a 50 percent market share from the deal, it can only be carried out with express permission from the authorities.

    The department’s preliminary investigation found Grab’s market share had exceeded 50 percent since the acquisition.

    But Grab insists it had acted legally and that the competition authorities have misinterpreted the scope of relevant markets when calculating the market share.

    Last October the Philippines’s competition watchdog fined the two companies a cumulative 16 million pesos ($296,873) saying they had completed the deal too soon and that the quality of service had dipped.

    Singapore’s competition authority fined them a total of S$13 million ($9.5 million) and announced other measures to address competition concerns arising from the merger.

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  • Positive result from anti-plastic campaigns by Starbucks, 7-Eleven

    Positive result from anti-plastic campaigns by Starbucks, 7-Eleven

    Starbucks Korea and 7-Eleven Thailand have announced positive results for their respective anti-plastic campaigns. A report revealed that the local Starbucks subsidiary has seen consumption of single-use straws cut by half in the months since introducing strawless lids on drinks without whipped cream or that do not need stirring. The initiative, introduced last November, has resulted in the monthly average of 15 million straws used across its coffee chain stores drop to 7.5 million per month. The company now only provides straws to customers who request them.

    Aiming to further reduce straw usage by up to 70 per cent, Starbucks Korea is planning an online event to offer rewards to customers who upload pictures of drinks taken without using straws. It has also introduced paper straws for usage in some beverages.

    7-Eleven saves 169 million bags

    Meanwhile, in Thailand, more than 169 million plastic bags have remained unused over the past two months at 7-Eleven stores, according to a report in local news site The Thaiger, the result of a management initiative to phase out their use. The move, which has been supported by local celebrities, encourages shoppers to refuse plastic bags or bring reusable bags to the store.

    The reductions are reported to have saved the chain more than 33 million baht, which operator CP All Public Company will donate to a local hospital.

    All about perception?

    Despite these reports, there have been growing concerns among critics in the media regarding the perceived environmental benefits of similar plastics initiatives worldwide.

    The sippy cup lid adopted in Korea is identical to the design used in North American stores, which was shown in a Reason magazine report last year to use more plastic than the previous lid design and straw put together.

    Plastic shopping bag initiatives similar to the one adopted by 7-Eleven have provoked skepticism among observers who point out that of all single-use plastic packaging used throughout supermarkets and convenience stores, the shopping bag is the only item that tends to be reused in the home.

    A 2017 report in Australia’s journalism hub The Conversation called getting rid of plastic bags a windfall for supermarkets without much perceptible benefit to the environment. It reasoned that most alternatives that were recyclable ended up in landfills anyway.

  • Malaysia to double palm oil used in transport biodiesel to 20%: Minister

    Malaysia to double palm oil used in transport biodiesel to 20%: Minister

    Malaysia aims to double the palm oil content in biodiesel used for the transport sector to 20% next year, as Southeast Asia’s third-largest economy looks to cut record stockpiles and boost prices, a government minister said. The government will also raise the palm oil content in biofuel for the industrial sector to 10% next year from a 7% quota being rolled out this July, Primary Industries Minister Teresa Kok said, speaking at a conference.

    Malaysia’s palm oil inventories fell to 3.001 million tonnes in January on increasing demand and falling production, but that was still near the two-decade high of 3.22 million tonnes recorded a month earlier.

    The increases in the amount of palm oil mandated for biodiesel – known as B20 for transport and B10 for industrial use – should lift use of the vegetable oil in biofuels to 1.3 million tonnes annually, the minister said.

    Kok said her ministry has submitted a proposal to the cabinet to set up a biofuel stabilisation fund to manage the price of biofuels, a similar mechanism to the export levy fund imposed by fellow palm oil producer Indonesia.

    “What if the palm oil price is high and the diesel price has gone up a lot? That would be costly for the public to use biodiesel, so we need to stabilise the price so biofuel will be more attractive to consumers,“ Kok said.

    “I have suggested (a stabilisation fund) in cabinet meeting before but we still need to have deeper discussion with other ministries.”

    Top palm producer and exporter Indonesia began collecting levies from palm exporters in 2015 to help finance the development of its palm-based biodiesel programme, as well as funding other palm oil agenda, such as replanting.

    However, Indonesia’s government temporarily removed the levy in November after a sharp drop in prices hit farmers.

  • LG U+ expected to acquire CJ Hello this week

    LG U+ expected to acquire CJ Hello this week

    LG U+’s plan to acquire cable TV company CJ Hello could be finalized as early as this week. Progress with the deal has been slow since Korea’s smallest mobile carrier first began considering the acquisition early last year. Industry sources said Monday that the deal is mostly finalized and, with a board meeting scheduled on Thursday, is likely to be concluded this week.

    With the acquisition, LG U+ will become the second-largest player in the domestic paid TV market. KT, with both an internet protocol TV (IPTV) service and satellite subsidiary KT Skylife, is currently the market leader.

    Paid TV services in Korea include cable TV, satellite TV and IPTV.

    LG U+ will likely acquire a 53.92 percent stake in CJ Hello from CJ’s entertainment arm CJ ENM. The cost is expected to be around a trillion won ($888.6 million).

    The acquisition would give the mobile carrier more negotiating power when acquiring or producing content. The carrier could also be in a strong position to lure CJ Hello’s 4.16 million subscribers, as of the first half of 2018, to its mobile service by offering favorable rates.

    LG U+ is already using its partnership with Netflix to attract more customers to its mobile and IPTV service.

    Once the mobile carrier decides to go ahead with the deal, it then needs to be approved by the Fair Trade Commission (FTC), the Ministry of Science and ICT and the Korea Communications Commission. In 2016 when SK Telecom tried to acquire CJ Hello, then CJ HelloVision, the deal fell through as the antitrust body disapproved on the grounds that the acquisition could hurt fair market competition.

    This time, though, FTC head Kim Sang-jo hinted during a recent interview that the commission would take a more positive stance regarding the deal considering the rapid changes in the media market. Kim questioned whether broadcasting and telecommunications can be considered completely separate in a quickly changing market.

    It is still to be seen whether LG U+ will more explicitly announce its intent to acquire CJ Hello and expand its paid TV services. The carrier is holding a press briefing for the launch of a new IPTV service targeting senior citizens in Seoul. Many questions are expected to focus on the acquisition deal and future IPTV strategy.

    Competitors KT and SK Telecom are also considering acquiring cable broadcasting companies to counter LG U+’s move. KT is reportedly interested in acquiring cable broadcasting company D’Live, which has a 6.45 percent share of the Korean paid TV market as of the first half of 2018. KT and KT Skylife control more than 30 percent of the market while CJ Hello owns 13 percent and LG U+ has 11.41 percent.

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  • Vietnam prosecutors support Grab appeal against Vinasun

    Vietnam prosecutors support Grab appeal against Vinasun

    Prosecutors in Ho Chi Minh City have appealed a verdict ordering Grab to pay compensation to domestic taxi firm Vinasun. They want the appeal court to quash the order requiring the Singapore ride-hailing firm to pay VND4.8 billion ($206,000) in compensation for alleged losses and reject all of Vinasun’s demands. Grab violated a pilot transport ministry scheme and government decree for ride-hailing services, according to the verdict.

    But the prosecutors argue this is groundless since Grab is a passenger transport firm licensed by competent authorities under the pilot scheme and its activities did not violate the law.

    They also dismiss the contention that Grab had caused Vinasun losses of nearly VND42 billion ($1.81 million) as one-sided with no practical or legal basis since it was based solely on an assessment by the court-appointed Cuu Long Inspection Company.

    “In reality, Vinasun’s decline in revenue involves many factors such as the corporate governance capability and the government’s policies and laws.”

    “Therefore, Vinasun’s demand for compensation from Grab is completely groundless.”

    They say Grab’s business activities are legal and Vinasun’s decline in revenues and profits have been partially due to consumers switching to Grab as they found the ride-hailing firm’s services to be superior to those provided by Vinasun and other traditional taxi firms.

    “Grab did not violate the law, there is no causal link between Grab’s allegedly illegal activities and Vinasun’s losses, Grab is not at fault.”

    Vinasun filed the suit against Grab at the HCMC People’s Court in June 2017, accusing it of abusing the Ministry of Transport’s pilot scheme and committing violations.

    The trial began last February, but was adjourned several times before the court last December accepted parts of Vinasun’s demands and ordered Grab to pay the compensation. Grab has appealed.

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  • The Shilla Duty Free partners with comics strip artists

    The Shilla Duty Free partners with comics strip artists

    The Shilla Duty Free is partnering with popular Chinese webtoon artists to boost its appeal to travelling Chinese shoppers. The travel retailer said that this is the first marketing partnership of its kind in the Korean duty free industry. Webtoons have become an increasingly influential media tool to connect closely with consumers, Shilla noted. “Unlike traditional advertisements, webtoons use storytelling that is easily relatable while utilising artists’ existing fandom.”

    The partnership with two webtoon artists, Niu Hong Hong (牛轰轰) and Ruo Guan (弱冠), specifically targets Chinese women in their 20s to 30s – The Shilla Duty Free’s main customer base (as the charts below show, visitors between 21 and 40 made up 57.3 percent of Chinese arrivals in South Korea last year and those between 21 and 30 almost 31 percent).

    Shilla’s stores are being featured in webtoons and the contents promoted through each artist’s social media platforms.

    Real-time comments such as “I would like to shop there”; “I should visit there during my next visit to Korea”; and “I like the store interior” appear on the webtoons.

    Besides introducing The Shilla Duty Free shops, the webtoons also highlight nine local eateries near the retailer’s flagship Seoul Store, showcasing the surrounding area as a local attraction. Since 2016, The Shilla Duty Free has promoted its local communities by introducing nearby restaurants through various channels such as The Shilla Online Duty Free in Chinese and its official Weibo account.

    A spokesperson said, “The partnership with Chinese webtoon artists is a first in the industry. We expect to be able to connect better with Chinese customers. Creative marketing like this will be continued during the peak seasons such as Chinese Lunar New Year, the Mid-Autumn Festival and the National Day of China, to broaden the communication with our customers.”

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  • HMV saved by Sunrise Records, but some stores will close

    HMV saved by Sunrise Records, but some stores will close

    Canadian firm Sunrise Records has emerged as the buyer of collapsed music chain HMV, beating competition including Sports Direct owner Mike Ashley. The firm will buy 100 stores out of administration, securing 1,487 jobs. But 27 stores will close, resulting in 455 redundancies. Sunrise Records chief executive Doug Putman said he was “delighted to acquire the most iconic music and entertainment business in the UK.”

    No price was given.

    Canadian entrepreneur Mr Putman, 34, bought the retail chain Sunrise Records in 2014. He previously bought HMV’s Canadian business in 2017, expanding his small chain into a national operation with 80 outlets.

    Mr Putman is also President of Everest Toys, the largest toys and games distribution company in North America. He said that HMV was a “fantastic, heritage brand”. He also said the chain would be looking to stock more vinyl records, in response to customer demand.

    HMV owner Hilco, which took the company out of its first administration in 2013, has blamed a “tsunami” of retail challenges for the latest collapse.

    These include business rate levels and the increasing use of streaming services to deliver music and movies.

    HMV sold 31% of all physical music in the UK in 2018 and 23% of all DVDs, with its market share growing month by month throughout the year.

    However, the music industry expects physical entertainment sales to shrink by another 17% this year.

    Will Wright, partner at KPMG and joint administrator said: “We are pleased to confirm this sale which, after a complex process, secures the continued trading of the majority of the business.

    “Our immediate concern is now to support those employees that have unfortunately been made redundant.”

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  • Courts Asia continues negative trend as Malaysian sales tank

    Courts Asia continues negative trend as Malaysian sales tank

    Takeover target Courts Asia had a forgettable third quarter, reporting a net loss of S$171,000 – a stark contrast to the $3.51 million profit for the same period a year earlier. The company blamed lower sales and gross-profit margins together with higher income tax expenses.

    Group sales fell 6.2 per cent to $175.3 million, largely due to a 22.2 per cent decline in Malaysian sales measured in ringgit with lower consumer demand for goods and services.  Singapore sales, which account for three-quarters of the business’ overall sales, slipped a negligible 0.7 per cent, while the company’s Indonesian woes continued. Although the market accounts for just 3.4 per cent of Courts Asia’s sales, revenue fell 7.3 per cent in local currency. Courts Asia is already taking steps to stem losses in Indonesia, recently announcing the closure of one of its megastores and the downsizing of another.

    Japanese electronics retailer Nojima Corp lodged a takeover bid for Courts Asia last month, conditional only on the formal acceptance by Courts Asia’s majority shareholder  Singapore Retail Group, which has already indicated its acceptance. The Japanese company plans a strategic review of the business and will consider delisting it.

    Meanwhile, Courts Asia says it will continue to endeavour to improve efficiencies in its Malaysian business to improve productivity and return to profit. Twelve underperforming stores have already been closed reducing the network to 54.

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  • Miniso teams up with cartoon network’s Adventure Time

    Miniso teams up with cartoon network’s Adventure Time

    Miniso has teamed up with Cartoon Network to present an epic 264-item collection of Adventure Time products in its stores across 62 territories around the world. From Europe to Asia, and Africa to North America and South America, the retailer is stacking its shelves with items featuring iconic characters including Finn, Jake, BMO and Lumpy Space Princess.

    Launching this month as part of a phased global rollout, Adventure Time fans will be able to enjoy an immersive in-store experience with the collection, which will be comprised of plushies, stationery, gifts and accessories such as backpacks and cosmetics. In the near future, the collection will add even more items as well as expand to additional territories.

    “The scale of this range demonstrates the popularity and enduring qualities of the Adventure Time franchise globally,” said Vikram Sharma, Vice President of Cartoon Network Enterprises, Asia Pacific.

    “Miniso has been a great partner for us. And when they wanted a brand that could provide young fans with an instantly-recognizable and fun association, Adventure Time was the obvious, mathematical choice!”

    Meanwhile, a new wave of merchandise from We Bare Bears – another Cartoon Network property – will also be in stores alongside Adventure Time.

    After impressive sales during the initial collaboration during 2018, more than 200 new and refreshed Bears’ items will be available in Miniso stores this month.

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  • How technology shape the future of retail in India

    How technology shape the future of retail in India

    The Indian Retail Industry is considered one of the fastest growing industries in the world and technology has emerged as a helping hand to the industry. The world has seen a transition in retail planning –with the industry going from being product-centric to being customer-centric – and retailers are leveraging technologies to reach the modern shoppers.

    Over time, retail technology has transcended from an aspiration to an expectation and has wedged itself securely between consumer and experience to create an everyday interface. While it has definitely made life easier for consumers, retailers in India have spent a better part of the last decade on their heels, reacting to profound changes throughout the sectors of the industry.

    Retailers today are not fighting with retailers anymore; instead they’re fighting with different technological interventions in order to be the most competitive in the world. With growing competition, it has become extremely vital for retailers to innovate continuously and implement cutting-edge technologies to fulfil today’s demanding customers’ need.

    In order to stay relevant in a highly competitive market, every retailer needs to stay on top of technological advances and also learn how to exploit these technical innovations to forward their business goals.

    Over the past few years, a number of technology trends have evolved and dramatically altered the retail industry. The emergence and the transformational growth of the new economy has unleashed powerful forces which are eventually and successfully reshaping the retail industry at a transformational speed. In order to succeed, today’s retailers have to offer a seamless shopping experience across all channels – and should not lose track of their customers.

    Today, the entire retail ecosystem has smartened with technology. There are so many things one can experiment with if a retailer uses technology, for example: smart displays, in-store services, smart shelves, home delivery, brand optimization options, supply chain optimization, logistics automation to name just a few.

    Then there are wallets, point of sale data, social networking – where you can home in on complaints as well as get appreciated. All this is driven by the retailer into applications where the consumer sees, feels, asks the retailer questions and eventually buys the product.

    Giant players of the retail industry have accepted technology with arms wide open to captivate and secure customers and have made optimum use of technology to optimize their business. Whereas small retailers, most of them belonging to the unorganized sector, are yet to adopt technology to be adept with the changes and technological innovations taking place in the retail market. If the entire unorganized retail trade, which is 80 percent of the entire retail trade, adopts technology, the retail industry will usher in a new era providing a much-needed thrust to the Indian economy. Technology is the knight on the white horse that will ride the retail market towards prosperity and triumph.

    What took the year 2018 by storm is phrase ‘Experiential Retail’. It became the code of the moment; delivered through convenient accessibility, in-store features, customer engagement through ATL and BTL animation or out-of-the-box blends of the physical and digital shopping universe.

    Some other trends that impacted the retail industry in a big way in 2018 are:

    IoT (Internet of Things)

    IoT has big implications for in-store marketing efforts of retailers and brands. Connected devices aren’t just changing the way consumers live, work and play – they’re dramatically reshaping the entire industry. The IoT movement offers retailers opportunities in three critical areas: customer experience, supply chain and new channels-revenue streams.

    Leading retailers across the globe are already investing heavily in IoT. They are beginning to transform their business practices and recognize that, in time, IoT will touch nearly every area of retail operations and customer engagement. In the IoT of today, everything has the potential of coming under the IOT umbrella. From the lighting system in the store, the PoS (Point of Sales) system, to the electric switches and even garbage disposal units…IOT is at the heart of retail transformation. It connects people, machines, items, and services to streamline the flow of information, enable real-time decisions, and heighten consumer experiences.

    While the IoT may still seem like science fiction, it is becoming reality faster than most of us can comprehend. Retailers that hesitate to develop and execute an IoT strategy will open the door for competitors – old and new alike – to swoop in and capture early IOT mind and market share.

    SMAC (Social, Mobile, Analytics & Cloud)

    The relationship between consumers and enterprises has never been as intrigued as in the 21st century. As digital technologies augmented by SMAC are creating new touch points for enterprises to awe their consumers, there has been an evolution in consumer experiences. Social, mobile, analytics and cloud or SMAC are the nexus of forces, which are reshaping how consumers experience a brand.

    SMAC are currently driving business innovation. It creates an ecosystem that allows a business to improve its operations and get closer to the customer with minimal overhead and maximum reach. Digital is now an essential part of the whole shopping experience and the entire business of retail, inside as well as outside the store. You don’t need to leave a physical store to get your digital fix. Instead, retailers are leveraging a wide array of in-store technologies meant to draw consumers in the door. As the impact continues to increase, the way retailers think of digital and invest in it, besides addressing the digital wants and needs of their customers is changing dramatically.

    Big Data

    Today, retailers are constantly finding innovative ways to draw insights from the ever-increasing amount of structured and unstructured information available about their customers’ behaviour.

    Data gathering, and analytics are playing a key role in evolving business models in retail. Usage of data and analytics to better understand consumers in the form of branding, product management, leveraging loyalty card information to tracking customer buying behaviour and making better pricing decisions are the key factors. Collecting and leveraging customer information to provide personalized recommendations is the norm going forward.

    Retailers – large and small – have been reaping the benefits of analysing structured data for years but are only just starting to get to grips with unstructured data. There is undoubtedly still a great deal of untapped potential in social media, customer feedback comments, video footage, recorded telephone conversations and locational GPS data. Great benefits have come to those who put it to best work, and the best solutions have more likely come from innovative thinking and approaches to analytics, rather than those who simply try to collect as much data as possible and then see what it does.

    Omnichannel Retail Adaptation

    Omnichannel is a term that extends and supersedes multi-channel. Multi-channel (or cross-channel) refers to delivering content and considering consumer experience on more than one channel. Omnichannel is about understanding and optimizing for the entire journey across all channels.

    Omnichannel today is a necessity. Brick-and-mortar retailers have been left with no option but to add online channel to their offline operations in a bid to reach as many customers as possible, and quickly. Omnichannel retailing creates benefits for consumers and opportunities for retailers. For consumers, it empowers connected consumers by making it easier for them to access information and compare product details; by increasing choice; and by increasing convenience and the range of options for shopping. For retailers Omnichannel creates opportunities, ranging from potential extension of sales and increasing brand awareness and loyalty.

    A poorly executed Omnichannel or personalization strategy, however, can do more harm than good. Handling one or two channels discretely but satisfying expectations is better than disappointing your consumers when you fail to deliver added value — or worse still, confuse or frustrate — while tackling all channels. Personalization can be even more dangerous because of very real risks that your brand can be given the dreaded creepy label.

    To be successful at delivering a personalized experience in Omnichannel marketplace, adaptive content is a requirement. It is content that is designed for both personalization and delivery across many channels.

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  • F&B outlets get bigger bite in shopping malls Malaysia

    F&B outlets get bigger bite in shopping malls Malaysia

    Shopping malls are now allocating a higher percentage of their tenant mix (more space) to food & beverage (F&B) retailers, partly because competition from online platforms has impacted other types of retailers such as fashion, according to a market research and consulting firm. “Traditionally, F&B made up less than 20% of a mall’s tenant mix, but can go up to 40% nowadays,” Stratos Consulting Group Sdn Bhd managing director Tina Leong said.

    She said with the tenant mix now consisting of more F&B, this means that malls will need to design or renovate in such a way as to cater to the specific technical requirements that F&B retailers have, for example provisions for water, grease traps, storage, waste disposal and daily delivery.

    “F&B as a segment itself has become the anchor for some malls,” said Leong.

    She said malls that have a high F&B tenant mix include the refurbished 3 Damansara (formerly Tropicana City Mall), which now has more F&B compared to before. Similarly, Paradigm Mall in Petaling Jaya has refurbished its lower ground floor, which now consists of more F&B than previously.

    Sunway Velocity Mall general manager centre management Danny Lee said F&B makes up 27% of the mall’s tenant mix currently, and that it is targeting to have F&B reach 30%.

    “Naturally, F&B is doing better compared to others,” Lee said.

    Meanwhile, Leong noted that having more or certain types of F&B can also be part of experiential retailing.

    “For example, people nowadays, especially millennials, appreciate and are willing to spend on meals or drinks with friends and family, within nicer ambience restaurants or cafes, due to the memorable experiences this create.”

    She said to continue to draw shoppers (rather than them shopping online), more shopping malls are looking at creating engaging “experiences” for their customers. Experiential shopping simply means making the physical act of spending money more than simply handing over cash in exchange for goods and services.

    “More grocery stores are incorporating food and wine bars where people can enjoy a meal or a drink as well as a social experience before or instead of shopping,” said Leong, adding that some retailers have also integrated augmented reality into their stores, for example Starbucks Reserve Roastery in Shanghai and US-based fashion brand Reformation.

    Examples of experiential shopping are malls that have attractively themed or landscaped spots on every floor, where one can stop to take photographs with their friends or family, such as Aeon Mall Kuching. Some community malls in Bangkok, Thailand, have incorporated spaces for pet parks, children’s sand pits and jogging tracks.

    “Another recently opened mall, Kiara 163 in Mont Kiara, has incorporated the ‘experiential’ element into their mall design, with a central garden and water features for people to relax. Apart from design features, other ways of creating memorable shopper experiences are through interesting or unique events, activities, decorations, pop-up stores, technological innovations and customer service,” explained Leong.

    She said some of the major major malls have been doing this all along, such as Suria KLCC and Pavilion Kuala Lumpur that usually have attractive and unique festive decorations.

    “What is different is that nowadays, the customer experience aspect is becoming a focal point. It has become more important as malls and retailers try to attract and retain shoppers in the midst of competing options such as online shopping,” said Leong.

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