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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.

  • China is our future says Walmart Asia CEO

    China is our future says Walmart Asia CEO

    China will drive more than half the world’s retail growth over the next decade, Walmart Asia CEO Scott Price has told the Asia-Pacific Economic Cooperation (APEC) CEO Summit in Manila.

    Despite slowing economic growth, the world’s largest retailer still believes in the power of the world’s most populous nation, referring to October’s retail sales figures showing 11 per cent year on year growth, and September’s 10.9 per cent.

    The Singles Day record set last week of US$14.3 billion further underlined the spending potential of Chinese consumers.

    Price highlighted the performance of the company’s wholly-owned Chinese online retail subsidiary Yihaodian on Singles Day which he described as “great’ without revealing data.

    He said the company had opted to take full ownership of Yihaodian this year to make the most of the “gamut of opportunities” in the burgeoning online-to-offline (O2O) market where shoppers order online and collect instore.

    “We think online-to-offline is critical, as customers look for convenience, and convenience is not just one mode.”

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  • DFS partners with kid’s Make-A-Wish charity

    DFS partners with kid’s Make-A-Wish charity

    For the second year running, DFS Group is partnering with Make-A-Wish International (www.worldwish.org) this December in its #JoyToYourWorld charity campaign to help children fighting life-threatening medical conditions by granting their special wishes.

    Jay Frame, DFS Group’s Vice President Corporate Communications and CSR said: “We are thrilled to partner with Make-A-Wish International for the second year in a row and share the goodwill of our customers, employees and partners to help these children’s wishes come true.”

    The retailer says that crowdsourcing and social media combine in this charity campaign and DFS customers can help to grant wishes by following @DFSOfficial and liking posts tagged with #JoyToYourWorld. DFS says that for every #JoyToYourWorld post that receives 1,000 ‘likes’, it will donate to Make-A-Wish International to help grant up to nine wishes to children around the globe.

    Coinciding and honouring DFS’ 55th anniversary, an equal 55 celebrity ambassadors are supporting this year’s campaign, including past DFS campaign spokespeople Godfrey Gao, Ming Xi, Caroline de Maigret and Perry Liu.

    DFS says: “The mission of Make-A-Wish is to grant the wishes of children with life-threatening medical conditions to enrich the human experience with hope, strength and joy. Since its inception in 1980, Make-A-Wish has collectively granted the wishes of more than 350,000 children in nearly 50 countries. Each wish that comes true inspires these seriously ill children to persevere against their illnesses.”

    Make-A-Wish International President and CEO Jon Stettner said: “We are proud to renew our partnership with DFS and its ambassadors this holiday season to help grant even more wishes to deserving children facing serious illnesses. It’s through the support of partners like DFS and its customers around the globe that make these life-changing wishes possible.”

    Amongst those children DFS helped to grant wishes to last year around Asia was Evan, an eight-year-old from Hong Kong battling acute lymphoblastic leukaemia. He wanted to be an astronaut and lift off was duly granted when he attended NASA’s Space Camp in Alabama, US.

    Then there was Mostafa, a 17-year-old from Japan suffering from congenital biliary atresia and pancreatic cancer. He wanted to be a racing car driver and his wish came true when he sat in a Ferrari 138 driven by two-time Formula 1 champion Fernando Alonso.

    This year, DFS and Make-A-Wish International will grant wishes to children like Wang-yau, a nine-year-old boy from Hong Kong battling spinal muscular atrophy who wishes to travel abroad, or Joanna, a 10-year-old girl from Singapore in treatment for medullablastoma, who wishes to become a pastry chef.

    As part of all this, DFS Group is generously encouraging customers to help out with donation boxes placed within its T Galleria by DFS stores worldwide. These will be available at its 11 T Galleria outlets in Hong Kong (3), Macau (4), Singapore, Auckland, Okinawa and Hawaii as well as its DFS Gallerias in Cairns and Sydney.

    In addition – and again celebrating DFS’ 55th anniversary – 55 celebrity ‘ambassadors and influencers’ have signed up this year to help support the #JoyToYourWorld Campaign. These include famous actors, models, make-up artists, photographers, a princess, an athlete, photographers, fashion bloggers, singers and many more.

  • Korean consumers get cynical

    Korean consumers get cynical

    Korean consumers are becoming cynical about store pricing as they are increasingly exposed to cheaper international online marketplaces and have experienced months of sales and promotions by bricks-and-mortar outlets.

    K-Sale Day, Korea’s Black Friday, Korea Grand Sale are just some of the events that have taken place recently as retailers and government seek to boost consumer spending. This slumped in the wake of an outbreak of Middle East Respiratory Syndrome in late May when people avoided crowded places in an attempt to avoid infection.

    One consequence of that was that more consumers went online for not only essentials like groceries, but also for big ticket items and discovered that these could often be acquired relatively cheaply and with a straightforward delivery process, Inside Retail Asia reported.

    “As more consumers learn they can easily buy products at a much cheaper price via online vendors, offline shops are more frequently conducting discount events to retain their customers,” according to Jun Mi-young, a professor at Seoul National University.

    “The experience of buying foreign brands at discounted prices has created a healthy dose of cynicism about department stores’ pricing policy,” he added.

    Inside Retail Asia highlighted one example – the price of a kitchen knife set slashed by almost 60% in a sale but still more than the price charged by several online shopping malls on any given day.

    And as bricks-and-mortar sales start earlier and last longer, it noted, “they become less important and easier for consumers to ignore”.

    That said, the retail discount events have had some short-term impact, as government data shows that the 22 retailers that joined its own Black Friday Korea campaign saw their sales rise 20.7% year-on-year to 719.4bn Won (US$634.9m) during the two-weeks of the event.

    But “squeezing margins is not a sustainable business model”, Jun pointed out.

    “As the rise of digital shopping has become an inevitable trend in the retail industry, offline sales channels should seek ways to provide better in-store experiences and quality service,” he said. Data sourced from Inside Retail Asia; additional content by Warc staff

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  • Honeybunch Handmade opens in Hong Kong

    Honeybunch Handmade opens in Hong Kong

    New Zealand handmade soap company Honeybunch Handmade has opened its first own brand store in Hong Kong.

    Honeybunch Handmade is a brand owned by Soap Opera Productions, which has been supplying a Mainland China retailer with products for several years. Such is the popularity of the products, that retailer has grown from a single store to more than 20.

    Now the New Zealand company wants to trial marketing its products under its own brand and has chosen Hong Kong as the launchpad.

    The new retail store at Aberdeen St in Central sells handmade soaps, body care products and floral bouquets. The company claims its soap and bodycare products are 100 per cent handmade, using natural ingredients from New Zealand, and infused with pure Manuka honey and goat’s milk.

    Honeybunch Handmade

    MD Lisa Jolly says through the Mainland business partnership, her company gained the know-how and expertise in developing soap products that are suitable for the Chinese market.

    “Therefore we decided to launch our own brand in Hong Kong. Hong Kong is an international city famous for its breadth of retail choices. It gives new brands great exposure to residents, business traders and visitors. It is the best place from which to promote our New Zealand handmade gift and floral concepts to the world,” Jolly said.

    “I am impressed with Hong Kong’s fabulous logistic services. It offers exciting opportunities for us to extend our customer reach beyond Hong Kong through eCommerce. Our online store supports delivery to worldwide customers.”

    Associate director-general of investment promotion, Dr Jimmy Chiang, said Soap Opera Productions has extended its business model from a manufacturer to a retailer and InvestHK  is happy the company has chosen Hong Kong as its first overseas location.

  • 1,100 Japanese tourists visiting Indonesia

    1,100 Japanese tourists visiting Indonesia

    As many as 1,100 Japanese visitors, including businessmen, parliamentarians and government officials, have just arrived in Jakarta, as an evidence of cooperation on the visa-free policy between Indonesia and Japan.

    The Japanese tourists are being led by the chairman of the Indonesia-Japan Parliamentary League, Toshihiro Nikai, Foreign Affairs Minister Retno LP Marsudi told ANTARA News here.

    According to the minister, President Joko Widodo (Jokowi) was scheduled to have a get together with these 1,100 Japanese tourists at a reception in Jakarta on Monday evening. The visit is aimed at increasing the people exchange programs between the two countries.

    Indonesia has issued a policy which offers visa free facility to people in 75 countries for a short term visit to Indonesia.

    Under the new policy, Indonesia offers a visa free facility for short term visits to those from South Africa, Algeria, the United States, Angola, Argentina, Austria, Azerbaijan, Bahrain, the Netherlands, Belarus, Belgium, Bulgaria, Czech Republic, Denmark, Dominica, Estonia, Fiji, Finland, Ghana, Hungary, India, Britain, Ireland, Island, Italy, Japan, and Germany.

    Also, Canada, Kazakhstan, Kyrgyzstan Croatia, South Korea, Kuwait, Latvia, Lebanon, Liechtenstein, Lithuania, Luxembourg, the Maldives, Malta, Mexico, Egypt, Monaco, Norway, Oman, Panama, Papua New Guinea, France, Poland, Portugal, Qatar, China, Romania, Russia, San Marino, Saudi Arabia, New Zealand, Seychelles, Cyprus, Slovakia, Slovenia, Spain, Suriname, Sweden, Switzerland, Taiwan, Tanzania, Timor Leste, Tunisia, Turkey, United Arab Emirates, Vatican, Venezuela, Jordan, and Greece.

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  • Bali governor opposes shariah tourism idea

    Bali governor opposes shariah tourism idea

    Bali Governor Made Mangku Pastika expressed disagreement to the idea of developing Shariah tourism on the island, citing fears that it could create potential problems.

    “I did not agree with it. It will only create problems. Just leave it as it is for now. It has all been going well so far,” he stated after attending a plenary meeting of the regional legislative assembly here on Tuesday.

    He pointed out that tourism in Bali has flourished so far.

    “Let us not think of strange ideas. It will only create problems. The people have lived peacefully under current conditions so far,” he emphasized.

    Chairman of the Shariah Economic Community (MES) Muliaman D. Hadad stated recently after inducting the MES Bali chapter that Bali is the right destination for developing Shariah tourism.

    “Bali is fit (for Shariah tourism). So, why not (develop it here). Seven million domestic tourists come to Bali in addition to three million foreign tourists. So, perhaps, there are businessmen here who wish to introduce it in cooperation with the regional government,” he affirmed.

    He said that Islam-based tourism has not only been developed in Arab countries but has also been promoted in Asian countries, such as Singapore, Malaysia, and Thailand.

    He pointed out that Thailand had recently won the title of the worlds best Islamic health service tourist destination at an event held in Dubai, United Arab Emirates.

    “This is indeed a business opportunity that needs to be tapped. In several cities, Islamic hotels and health service centers have already mushroomed. We have no other intention than to tap the business opportunity. We are talking about religion but also to boost the economy,” he remarked.

    Hadad, who is also chairman of the countrys Financial Service Authority (OJK), said the Shariah economy adopts approaches based on the concept of common welfare, so that it could be used by anyone, regardless of their religious background.

  • Duty-free industry in crisis of stagnation

    Duty-free industry in crisis of stagnation

    Thousands of jobs are under threat in the wake of the Korea Customs Service’s shock decisions last Saturday in awarding duty-free licenses in Seoul.

    Two major players had their licenses revoked. Lotte Group plans to close its World Tower branch in Jamsil, southern Seoul, that posted 500 billion won ($430 million) revenue last year, and SK Networks’ Walkerhill duty-free shop is being forced to cease operations after 23 years.

    The selection process for duty-free outlets has been criticized as it mandates renewal every five years. Some observers feel this goes against the Park Geun-hye administration’s creative economy drive, which has a key premise of creating jobs by letting companies freely enter promising industries.A total of 2,200 workers are on the verge of losing their jobs at the two operators.

    Regardless of the commitments, a sense of insecurity lingers among new and old duty-free store operators because of the uncertainty over duty-free license renewals in five years.Other affiliates under the Lotte Group umbrella have guaranteed that they will hire workers from the duty-free stores, and new operators – Doosan, Shinsegae and Hanwha (selected in the summer) – have promised to absorb those from SK.

    Han Gyeong-ran, 49, has worked at Lotte’s World Tower branch for 17 years. She is a sales manager at a small-size jewelry brand inside the outlet, but now that the entire store is shutting down in six months, she will lose her job because the jewelry brand is housed at the Jamsil outlet and not the Sogong branch, which will remain intact.

    “I am just at a loss, not knowing what to do to provide for my old age,” she said.

    “I don’t know how you could say getting rid of a company that has invested 300 billion won for a single duty-free outlet and depriving those employees of jobs is what the government describes as job creation.”

    Last year, when Lotte lost its duty-free license at Gimhae International Airport in Busan to Shinsegae and shut down the store, only half of the 390 Lotte employees were transferred to Shinsegae.

    “There are many lawmakers who have remained silent over the verdict this time on the duty-free shop licenses for fear of being mistaken as defending those companies that failed,” said Lee Hahn-koo, a lawmaker with the ruling Saenuri Party. “After proclaiming it would produce more jobs, the government is actually doing the opposite, which is preposterous.”

    Before the Park government introduced a new system in 2013 that put each license up for open competition every five years prior to expiry, renewal for downtown duty-free shops was a semi-automatic, rubber-stamping process for 10 years at a time.

    Martin Moodie, chairman of the Moodie Report, a U.K.-based online publication devoted to the global travel retail and duty-free sector, told some Korean media outlets in 2013 that weakening duty-free shops in their home market “seems a misguided and short-sighted step.”

    “The five-year deal is a disaster and will kill what little quality there is. The margin pressure on brands will get far worse, too,” a senior executive for one of the world’s leading luxury brands was quoted as saying by the Moodie Report on Sunday.

    He added that some leading brands may opt in the future to position themselves in Korean domestic stores with permanent high-quality environments rather than facing a potential change in duty-free retail partners every five years, given there is “no difference between Korean duty-free and tax-refund pricing [depending on foreign exchange rates].”

    Companies that had their license renewed or newly issued may not have time to celebrate as stumbling blocks lie ahead.

    A group of lawmakers led by Rep. Hong Jong-haak from the main opposition New Politics Alliance for Democracy has proposed a revision of a bill that will force duty-free store operators to pay 100 times the licensing commission they are paying now – from 0.05 percent of annual revenue to 5 percent.

    That means the Sogong branch of Lotte Duty Free will have to pay 10 billion won in commission to the Korea Customs Service each year after the revision, when it currently pays 1 billion, or 0.05 percent of the 2 trillion won annual revenue.

    If approved, the move will inevitably force duty-free shops to hike the prices of goods, which will lead to Korea becoming less attractive to tourists, particularly big-spending Chinese, and shrinking tourism to Korea.

    The Korean government’s process goes against systems in Europe and neighboring countries such as China, Japan and Taiwan, which have been ramping up their duty-free industry as its golden goose that draws huge foreign currencies.

    The Korean duty-free business has grown exceptionally in the last five years. Earnings from duty-free have exceeded that of China and the United States and held the No.1 spot since 2012. According to a survey by the Korea Tourism Organization, the biggest reason foreigners visit Korea was to shop. In fact, 72 percent of the poll picked shopping. As a result, the Korean duty-free business raised $7.78 billion last year.

    But a change in duty-free licensing regulations will force companies to become very cautious in their investment strategies and wary of business expansion.

    Lotte was not alone in heavily investing in expanding its duty-free business. Walkerhill recently invested 100 billion won in doubling the size of its duty-free stores. It was scheduled to open up next month.

    The licensing regulation is also likely to affect future plans, even for newcomers such as Doosan.

    “It takes a huge amount of investment when starting a duty-free business, and it takes a minimum of 10 years before it settles,” said Choi Young-soo, former chairman of the Korea Duty Free Association and former vice president of Lotte Hotel in charge of the duty-free business. “If you have to get government approval every five years, who would invest a large amount and even hire regular employees?

    “When doing business whose main customers are foreigners, whether a company monopolizes is meaningless. If we continue with such a policy, we will loose the Chinese tourists to the Japanese.”

    Han Enny, CEO of Enny Trading Corporation, which supplies cosmetics to duty-free stores including Lotte and Walkerhill, was frustrated at the recent licensing decision.

    “We have products shipping in that we plan on supplying to the duty-free stores next spring, but it seems we would have to cancel those orders,” Han said. “We have built our credibility for years just to get a contract with foreign companies, but it seems it’s all going to crumble.

    “Luxury companies’ products that have high demand from Chinese consumers make trade relations based on long-term trust, but if this continues, they wouldn’t be interested in opening up stores in Korean duty-free stores.”

    Other countries have been taking the opposite direction in their strategies as they have realized how lucrative duty-free businesses can be.

    Swiss duty-free retailer Dufry was ranked No. 2 in the world in 2013. But it recently became the biggest in the industry, bumping off previous No. 1 DFS, after buying another Swiss duty-free retailer that was ranked the world’s No. 7, Nuance Group, last year and adding Italy’s World Duty Free in August. LS Travel Retail, the French duty-free retailer and world’s No. 4, expanded further when it bought North American duty-free business Paradises in August.

    As of last year, the world’s top four duty-free companies accounted for 25 percent of the duty-free market, a sharp increase from the 16 percent in 2010.

    “The duty-free business in a core pillar in a country’s tourism industry development,” said Kim Seung-wook, a economics professor at Chung-Ang University. “The customs service agency needs to focus on lowering the entry level of duty-free stores and think more on ways to help foreign tourists open up their wallets, rather than focusing on regulations.”

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  • Air Asia Philippines Launched Red Hot P0.01 Flight Promo Sales

    Air Asia Philippines Launched Red Hot P0.01 Flight Promo Sales

    This Christmas, Santa Clause won’t be the only one painting the skies red. AirAsia Philippines will also be coming to town with a Red Hot P0.01 Flight Promo Sale beginning on November 23.

    air asia peso promo sale

    The one-centavo seat sale includes promo fares to all domestic destinations from Manila including Tacloban, Cebu, Davao, Tagbilaran, Palawan, and Kalibo. International destinations are also included in the sale with popular cities such as Kuala Lumpur, Kota Kinabalu, Busan, Macau, and Hong Kong.

    AirAsia Group is also offering great promotional fares to more than 100 destinations across 20 countries including Australia. Passengers travelling from the Philippines can seamlessly connect in Kuala Lumpur to one of AirAsia Group’s many great destinations.

    AirAsia Promo Fares can be booked on the AirAsia website from today until November 29, 2015. Promotional fares are valid for travel from May 1, 2016 to February 5, 2017. As Philippines AirAsia’s Commercial Head, Gerard Peñaflor explains, the one-centavo sale comes at the perfect time for giving the gift of travel this Christmas.

    “Travelling with your friends and family to Palawan, Boracay, Bohol, Davao, or to Hong Kong, Korea, and other AirAsia destinations make an ideal holiday gift and our one-centavo seat sale makes the deal even sweeter,” said Peñaflor. “From as low as P201.00 all-in fare, travellers will get to discover new places here in the Philippines and across AirAsia’s massive network in the whole of ASEAN region and extending as far as China, India, Japan, and Korea.”

    air asia promo fares

    Peñaflor added that AirAsia will also be unveiling the latest in-flight menu to enhance the on-board experience before the busy Christmas season. “To enhance our guests’ flying experience, we are set to launch before Christmas, Philippines AirAsia’s latest in-flight menu which now includes new hot meals featuring Filipino favorites such as Bangus sisig, chicken curry including ASEAN-inspired dishes,” added Peñaflor. “Now, everyone can enjoy great value services on top of the promo seats that we are offering.”

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  • Starbucks Malaysia gives back to Malaysian communities with its Connecting Communities Project

    Starbucks Malaysia gives back to Malaysian communities with its Connecting Communities Project

    Weaving with Mengkuang leaves used to be a leisurely pastime of coastal women in Malaysia. Today, a small Malaysian business is revisiting this craft and selling Mengkuang products in Starbucks® stores.

    “Giving back to Malaysian communities is important to our company as well as our partners (employees),” said Sydney Quays, managing director, Starbucks Malaysia. “Featuring products from small villages provides increased exposure and ultimately contributes to the livelihood of local residents.”

    Earlier this year, Starbucks Malaysia developed a relationship with Craft CT 01 Enterprise – a small company is located on the east coast of Malaysia. The business develops products made from Mengkuang, a tropical plant with tall, thorny leaves. Their products including hot cup sleeves, coasters and placemats are currently sold in 50 Starbucks locations throughout the country.

    “We have seen a great deal of interest in the Mengkuang products since we began selling them in our stores,” Quays said.

    Sourcing of Mengkuang products is one outcome of Starbucks Malaysia’s Connecting Communities Project, which has helped farmers and their families since 2013. As part of this project, Starbucks also purchased a sizable amount of fresh bananas from small farmers in the Kampung Lubak Jaya village on the west coast of Peninsular Malaysia. The bananas were used to develop the Signature Banana Chocolate Chip Muffin and Banana Chocolate Decadence, offered in West Malaysia Starbucks® stores.

             

    “The banana-based food items are quite popular with our customers,” added Quays.

    The first Starbucks® store in Malaysia opened in Kuala Lumpur in 1998. The company reached a milestone of 200 stores in the country this past September.The 200th store, known as Starbucks Ansa, is located in what was formerly the Piccolo Hotel. The store design aims to introduce customers to the Connecting Communities Project through a community table with banana and Mengkuang leaf carvings, a merchandise wall dedicated to Mengkuang products and specially-woven Mengkuang mats that serve as wall hangings.

    “We will continue to find ways to grow our Connecting Communities Project. There is more we can do positively impact the lives of Malaysia’s small farmers and businesses,” said Quays.

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  • John Lewis Asian stores ‘trading well’

    John Lewis Asian stores ‘trading well’

    UK department store operator John Lewis has hinted at its trading performance in Asia as it announced another offshore expansion – into the Netherlands.

    John Lewis chose Singapore as the first of 15 new international markets it plans to expand into back in March this year.

    Two John Lewis Singapore concessions were opened inside Robinsons department stores, last July, primarily selling homewares.

    Andy Street, John Lewis MD, mentioned overnight: “Our existing shop-in-shops in Singapore, the Philippines and South Korea have been well received and are trading well.”

    John Lewis opened 14 shop-in-shops across Singapore and the Philippines this year, and seven shop-in-shops in South Korea last year.

    The first Dutch shops will open in spring 2016 at de Bijenkorf’s flagship stores in Amsterdam, Rotterdam and The Hague – its first stores in continental Europe.

    And more may follow, especially in Asia.

    ‘Whilst we remain committed to our UK physical expansion we hope to announce more international collaborations in 2016,” said Street.

    The UK retailer was founded in 1864, but until last year it had never traded outside England, Scotland and Wales. In 2012 it entered into a partnership with South Korea’s Shinsegae Department Store Co, selling linen and homewares in seven stores.

    Street said in March he expected to confirm deals to open in a further five foreign markets in 2015. That could mean four more markets to be announced over the next six weeks.

    “We have been very successful in Korea. We are really pleased and surprised that, in a market where the John Lewis brand isn’t really known, it has cut through.”

  • Malaysia’s Caring Pharmacy value soars

    Malaysia’s Caring Pharmacy value soars

    Malaysian listed retailer Caring Pharmacy has seen its share value soar 85 per cent in just two months.

    And no one seems to know why…

    The company has 106 pharmacies across Malaysia, just two more than it had three months ago, and has projected expansion at a rate of 10 to 12 outlets next year – barely one a month.

    Even more remarkable, is that such a rise has occurred in a depressed retail climate and a decidedly sluggish business environment, at best.

    A survey released by Nielsen this week showed consumer confidence in the country has reached a 10 year low of 78 points – 11 points lower than three months ago. That seems driven by the unpopularity of the GST introduced on April 1 and a massive depreciation in the local currency – in part at least, linked to evidence of massive corruption in government leadership.

    The only theory behind Caring Pharmacy’s sudden popularity is that the chain may have been marked down unfairly in a generally bearish market, and its value is now being restored to reasonable levels.

    Year on year, the company has delivered a net profit in the latest first quarter jumping 83.94 per cent to RM1.02 million from RM 554,000 a year ago.

    One analyst urges caution” Hong Leong Investment Research (HLIR) said Caring Pharmacy could yet face further challenges ahead.

    “We feel there will be more downside risk on its expansion plans due to high competition and start-up costs,” HLIR said in a research note.

    “Also with inflationary cost pressure as well as weak consumer sentiment, we believe its profit margin will be under pressure with longer gestation period.”

  • Genting adds premium cruise brand solely for Asia

    Genting adds premium cruise brand solely for Asia

    Malaysia-listed leisure and hospitality group, Genting, best known for its resorts and casinos, is setting up Asia’s first regionally-based premium cruise brand.

    Within its Genting Hong Kong operation [one of five public companies] which was formerly called Star Cruises, the company has announced the launch of Dream Cruises for Asia, which is one of the fastest growing markets in the world according to cruise association CLIA.

    The region also delivers strong duty free and travel retail spending says analyst CiR. According to its Asian Cruise Travellers report, 73% of Asian cruisers make DF&TR purchases, with almost half (46%) buying fashion/accessories.

    Genting – valued by market capitalisation at over MYR94bn ($22bn) at 31 August – is expected to take full advantage of the high-spending nature of Asian passengers – particularly the Chinese – with a large shopping offer on board Dream Cruises’ first vessel, Genting Dream when it sets sail in November 2016. It will carry 3,400 guests and 2,000 crew, a very high crew-to-guest ratio.

    A sister ship World Dream will follow in November 2017. Both were ordered by Genting Hong Kong and are under construction.

    THATCHER BROWN NAMED PRESIDENT

    The company has appointed cruise veteran, Thatcher Brown as President of Dream Cruises. Brown had been with Crystal Cruise Lines – which Genting bought in May 2015 – since its formation in 1988.

    “The launch of Dream Cruises completes the company’s mission of having a brand for each of the three major cruise market segments: Crystal Cruises for the luxury market, Dream Cruises for the premium market, and Star Cruises for the contemporary market.”At the launch event aboard SuperStar Virgo, a Star Cruises vessel, Genting Chairman and CEO, Tan Sri Lim Kok Thay, said: “Being the first company to offer cruises in China over 20 years ago with Star Cruises, we conceived Genting Dream three years ago to be the only purpose-built premium category new build for the Asian, and specifically Chinese, market.

    THREE CHINESE HOMEPORTS

    Genting Dream will have two exclusive floors of Dream Suites from 32sq m to 183sq m in size with butler services. Around 70% of Genting Dream’s staterooms will have private balconies.

    From next November, Genting Dream’s homeports will be in Guangzhou (Nansha Port), Hong Kong and Sanya and the ship will serve a bih catchment in the Pearl River Delta and Hainan. It will also cater to international guests flying into the airports of Guangzhou, Shenzhen, Zhuhai, Macau, Hong Kong and Sanya.

    Itineraries from Guangzhou will offer a year-round, two-night weekend cruise that calls at Hong Kong and a five-night weekday cruise calling at Halong Bay, Danang and Sanya.

    The Hong Kong homeport will feature a seven-night itinerary calling at Guangzhou, Halong Bay, Danang, Sanya and either Shenzhen or Zhuhai using Nansha Port. The Sanya homeport will also feature a seven-night itinerary calling at Guangzhou, Hong Kong, Shenzhen or Zhuhai using Nansha Port, Halong Bay and Danang.

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  • Courts Asia expansion drives huge profit rise

    Courts Asia expansion drives huge profit rise

    Courts Asia’s strategy of spreading its interests into neighbouring countries is paying off already.

    The company has today announced a 253 per cent quarterly increase in profit to S$6 million and a 77.8 per cent rise to S$12.1 million for the first half year. Gross profit for the second quarter rose 12.4 per cent thanks to a focus on higher gross profit margin and higher sales.

    While Courts Asia’s second quarter last year was exceptionally challenging, the high growth from a low base should not cast a shadow over an exceptional retail strategy, especially given the almost stagnant nature of the Singapore retail market this year, Courts Asia’s main market, where sales actually slipped 2.6 per cent.

    Revenue in neighbouring Malaysia, its second biggest market accounting for 35 per cent of total sales, rose 13 per cent in Singaporean currency and 27 per cent in Malaysian Ringgit, mainly due to bulk sales for digital products. That in itself is an achievement as consumer spending in Malaysia tanked after the introduction of GST on April 1.

    “Malaysia has continued to post a good showing with active marketing of our refreshed Courts branding and credit campaign nationwide,” said group CEO Dr Terry O’Connor. “Likewise, we will focus on improving store productivity and cost-saving initiatives as we move forward.”

    In Indonesia, where the company is just getting started, sales rose 5.8 per cent with two new stores opening. A fourth new store is due to be trading by Christmas.

    “In Indonesia, we are progressing well and sales from our three stores, namely the Megastore in Bekasi and two smaller stores in Mega Bekasi Hypermall and Bogor, have kicked-in. Our second Megastore, located in BSD City, Southwest of Jakarta, begins operations by December this year. This new store also represents our fourth store in the country, and we expect economies of scale and operational efficiency coming into the next financial year,” said O’Connor.

    In Singapore, Courts is pinning its growth strategy on introducing new retail formats. The first JYSK Danish lifestyle store opened in Bukit Timah in September and US hardware brand ACE Hardware will follow by year’s end. O’Connor says exclusive partnerships with the two brands align with the company’s strategy of offering a comprehensive suite of solutions for the home.

    “We will be expanding both JYSK and Ace Hardware stores islandwide within the next five years.

    “Beyond cost-saving initiatives, we are focused on optimising the productivity and yield of each of our stores. In Singapore, we continue to rejuvenate our retail concepts to meet changing consumer trends and drive healthier margins.

    “Singapore’s retail environment remains subdued, but we expect a continued stream of demand for household appliances and furniture given the expected increase in supply of HDB flats in 2016. This is in line with recent policy changes such as the higher income ceiling and more Central Provident Fund (CPF) grants that have widened the pool of eligible buyers.”

    In both Malaysia and Indonesia, Courts Asia is targeting the burgeoning middle classes.

    “The recently announced Budget 2016 in Malaysia is slated to boost growth and home ownership with the planned construction of 351,000 housing units. We anticipate that this will drive further demand for affordable furniture and household appliances over the medium term.

    “In Indonesia, we plan to leverage on the country’s growing middle class and its strong standing as one of the region’s fastest growing nations by opening a total of six new stores in Indonesia over the next 12 months,” he concluded.

  • JTB chases Chinese at home

    JTB chases Chinese at home

    Japanese Travel agency JTB has opened its first retail location in China’s capital Beijing. The agency will specialise in tours to Japan and will be run in a joint venture with a local travel company.

    The agency will be equipped with the same reservation system used in its Japanese retail travel stores, but it will not issue tickets. The 90 sqm stores is situated in an office building in a popular business district.

    The Japanese-themed interior is intended to serve as an advertisement in itself. The branch intends hosting exhibitions in cooperation with Japanese municipalities.

    JTB says the new venue is aimed at diversifying demand among Chinese travellers through face-to-face sales. It aims to sell 10,000 tour places annually.

    Japan is attracting a rapidly-rising number of Mainland Chinese tourists, attracted by the favourable exchange rate and close proximity, along with relaxed visa conditions.

    JTB gained official approval to open in China four years ago but the launch was delayed due to the earthquake of 2011 and simmering tensions between the two countries.

  • Dufry Asia aims to double business

    Dufry Asia aims to double business

    Dufry Asia sees huge growth opportunities in the Asia region despite the current softness in the Hong Kong, Macau and Singapore markets.

    In an interview with TRBusiness the CEO of Dufry Group, Julian Diaz, said the company plans to double its sales in Asia Pacific within five years. Currently, the region accounts for just nine per cent of its total business.

    “The situation right now in Asia and in other parts of the world is not going to stop Dufry from going ahead with development,” he told TRBusiness.

    “The reality of the passenger growth over the next 10 years in Asia is that it is going to grow more than any other region in the world.”

    Díaz said Asia presented challenges given it comprises different markets, but Dufry has overcome that in other regions, and is confident it can break through in Asia.

    “I think this is a challenge, but this was also a challenge when we started in the Americas, when we started in Europe, when we started in North America.

    “All these businesses presented their own challenges. I know one thing, we are going to pool resources and the team in order to really develop the company in Asia,” he said.

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