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Category: Research

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

  • South Korean online shoppers still see brick-and-mortar as crucial

    South Korean online shoppers still see brick-and-mortar as crucial

    South Korean online shoppers still see offline stores as a crucial part of shopping, a recent study has shown.

    Furthermore, despite the widely held belief that consumers will engage in online shopping during lunch breaks, or before they go to bed, the study has also revealed that many shop during work hours.

    DMC Media, a South Korean media lab, reported stark differences in perception between the industry and consumers.

    Among consumers with the shopping experience in the last six months, 73.2 percent collected shopping information at offline stores, ranking second after mobile shopping (81 percent).

    About three in four consumers use offline stores rather than the web, indicating shoppers still have a desire to look at products before they buy.

    While offline stores are falling behind in the competition with e-commerce, online consumers are still acquiring shopping information through offline stores, which may indicate a path towards finding a breakthrough.

    In contrast, online marketers have been underestimating the importance of offline stores at 30.7 percent.

    Online marketers’ views differ on the time frame when most consumers engage in online shopping. While many believed consumers would not engage in online shopping during working hours (9am to 6pm), the study showed consumers consistently devote time to online shopping after 9am (15.4 percent) and online shopping activity peaks between 6pm and 9pm (46.9 percent), which shows most consumers engage in shopping activities regardless of time and work.

    When choosing an online shopping mall, consumers consider the price (29.4 percent) and product quality (23.4 percent). Coupons are a factor for 9.4 percent of consumers.

    The study also found that consumers click less on the advertisements posted on Instagram, Facebook, and other social networks (50.7 percent) than those linking to a portal website (69.1 percent).

    “Making a strong impression on consumers at offline stores through special programs will not only raise short-term profits but also increase brand loyalty and encourage them to come back,” said the DMC Media research team.

  • Global athleisure wear market expect strong growth numbers

    Global athleisure wear market expect strong growth numbers

    Consumer desire for a multifunctional wardrobe is set to continue driving the global athleisure wear market, according to data and analytics research group GlobalData.

    Over the last two years, the athleisure trend has risen as demand for comfort, performance and style has driven the need for a multifunctional wardrobe. 68 percent of consumers who purchased sports clothing for exercise also wore such items for eating out or shopping.

    The firm forecasts that the global athleisure wear market will rise 9 percent this year and will continue to outperform the total clothing and footwear market beyond their 2023 forecast period.

    “Over the next five years, the sportswear market will be one of the leading retail sectors,” said GlobalData principal retail analyst Honor Strachan. “Activewear brands are selling consumers a lifestyle, and fashion retailers are leveraging their style credentials to produce affordable fitness ranges to sell alongside core casual and formalwear collections.”

    In the UK, 20 percent of consumers purchased sports clothing specifically for leisure activities and free time, not to exercise in.

    “This willingness to pair sportswear with core wardrobe pieces has opened sportswear brands up to new audiences and allowed them to diversify into new product areas,” said Strachan, “boosting their share of the global clothing & footwear market.”

    While fashion trends and influencers have driven the success of the global athleisure wear market , the sustainability movement will continue to support the desire for a multifunctional wardrobe. Consumers are purchasing more consciously and reducing spend on fast fashion, playing into the hands of those retailers and brands that can showcase the versatility of their items, as well as the durability and quality.

    Moreover, increasing consumer appetite for comfort has also fuelled sales of activewear and trainers with brands utilizing their technical expertise in ensuring products offer freedom of movement, aid temperature and sweat control, shape the body and provide support. These qualities have filtered into consumers’ everyday wear and not just when they are at the gym.

    Adoption of the athleisure trend in much of Asia has been slower, so international and national brands are leveraging social media, third-party selling platforms and brand ambassadors to sell the appeal of having a sports and street-influenced wardrobe.

    “Chinese brand Li-Ning has exploited its credentials as a sports manufacturer to produce high fashion casualwear which can be worn for training or leisure,” concluded Strachan, “while Nike’s instore and online outfit styling provides inspiration on how to wear pieces for multiple uses encouraging consumers in China, Taiwan, South Korea, and Japan to incorporate sportswear into their everyday wardrobes.”

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  • How Sustainable Fashion Will Affect Asia

    How Sustainable Fashion Will Affect Asia

    The impact of climate change, plastic pollution and poor working conditions are subjects that are frequently covered by news outlets across the world. The airing of David Attenborough’s Blue Planet series on the BBC brought widespread attention to our need to reduce the amount of waste we throw away, whilst climate activists are increasingly making headlines in their quest to change public opinion.

    A large majority of consumers are continuing to choose to overlook the social and environmental costs of fast fashion, but these factors have affected the way a growing number of people look at fashion. This has seen many consumers looking to move away from “fast fashion” to more sustainable options. These options have included clothing that is more durable, products that are produced in more ethical ways, and even renting products rather than buying.

    Asia Dominates the Fashion Industry

    Whilst many of the world’s most famous fashion houses are based in European capitals like London, Milan, and Paris, the bulk of the work in the fashion industry is undertaken in Asia. Of the top 10 producers of cotton, Asian countries take 6 places, growing approximately 70% of the world’s cotton. In addition, the majority of the worlds garment manufacturing takes place in Asia, with countries including Bangladesh, Vietnam and China producing significant amounts of apparel each year.

    The move towards sustainable fashion will place pressure on these producers of cotton to look for less polluting farming methods and systems that prevent overconsumption of water.

    It’s not just the manufacturing side of fashion that Asia dominates. The Asia-Pacific region makes up 37.1% of the global clothing market, generating over $3 trillion of sales each year. Estimates vary, but some sources claim that over two-thirds of the sales are generated in China alone.

    Clothing For Non-Fashion Businesses

    The prevalence of fast fashion is everywhere, not just within the fashion industry. As well as retailers selling fashion items as part of their main business model, many businesses also use branded clothing as part of their marketing and customer retention strategies, or to create additional revenue streams beyond their main activities. For example, PokerStars uses its Rewards Store to allow its customers to purchase PokerStars branded products with loyalty points. These products include printed t-shirts and caps, featuring the company’s branding in a bid to create a sense of belonging and community amongst its customers.

    Similar approaches have been taken by YouTube vloggers such as BeatTheBush and ADVChina who have clothing stores to sell products to their fans. The huge market for these types of products has opened up opportunities for businesses dedicated to providing retail ready clothing products to brands that do not have fashion retailing as their main aim.

    Recycling Services

    Whilst reducing consumption is a difficult balancing act for businesses that are also looking to increase sales, recycling can help to create a closed loop of consumption. Clothing retailers are beginning to trial recycling schemes where customers can bring back old clothes to be recycled whilst they buy new ones. Some brands have even gone on to offer a discount or rebate to customers that engage in this recycling, but not all have gone this far. It is likely that more retailers will follow suit so as to not be seen falling behind in terms of sustainability.

    The Rise of New Players

    In western countries, sustainable fashion is being driven by smaller brands and startups. These smaller players are finding it hard to make a significant impact, and have remained a niche within the much larger fashion industry. Similar trends are likely to occur within Asia, at least for the time being as the majority of consumers seem happy to trade off improved ethics for lower prices.

    In Summary

    The fashion industry is slowly transitioning to keep up with the demand of consumers looking for improved ethics. However, whilst a small section of the market is looking for sustainable clothing the vast majority of consumers continue to place greater value on price than on ethics. Increases in recycling services and new, smaller players entering the market will be the main areas for the foreseeable future.

     

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  • Big Data and Artificial Intelligence are Set to Transform Accounting and Finance

    Big Data and Artificial Intelligence are Set to Transform Accounting and Finance

    Spreadsheets were arguably the killer app for personal computers, and accounting software is commonly used. However, that hasn’t changed day to day operations of businesses or the lives of individuals. We’ve simply shifted from written ledgers to digital ones, and accounting professionals review reports that haven’t changed much beyond being computer generated. However, Big Data, AI and other technologies are poised to radically alter the financial world. Let’s look at how Big Data and artificial intelligence are set to transform accounting and finance.

    Robo-Advisors

    We’re starting to see more and more robo-advisors popping up nowadays, and people are slowly getting used to them. These robo-advisors can give clients a quick answer regarding the impact of upping their retirement contributions another one percent or whether they should consider diversifying their investments.

    And, they can aid accounting professionals, too. A robo-advisor may flag suspected mistakes in the records for instance, identify unusual patterns for audit or provide deeper insight into a customer’s behavior. All of this could come in handy for accountants. This will allow accounting professionals to handle more clients and provide more value to them.

    They’ll then be able to advise people on how to adjust their spending or alter investing portfolios instead of crunching the numbers. Robo-advisors can also provide basic advice to clients, giving the masses vetted financial advice without the cost of a human financial advisor. The chatbots can handle common customer questions, freeing up customer support staff for more complex problems.

    The Productivity Tools Powered by AI

    Artificial intelligence powered invoice management systems already exist and are poised to change accounts receivable forever. They use digital workflows to streamline the process of generating invoices and tracking payments.

    The AI behind them can learn which accounting codes are most appropriate for each invoice. Supplier onboarding can be done almost automatically via AI. The supplier’s credit score or tax information is vetted, and if approved, the supplier is added to the system. No human involvement is necessary.

    APIs are able to interface with each other, dramatically reducing the amount of paper that needs to be generated and managed. Let the robot find the cheapest supplier while your staff address issues automated systems can’t resolve. Artificial intelligence can read receipts, review expenses relative to company policy and approve most of them. Managers are only involved when the AI notifies them of a possible infraction.

    The monthly and quarterly close process is both faster and more accurate. Then, your business can shift from consolidating and reconciling records to using that information to craft better business strategies.

    The Merger of IT and Accounting

    Only three percent of an organization’s data meets minimal data quality standards. Studies suggest half of all data records have at least one major error. Yet, financial and accounting professionals are increasingly working entirely off digital data. This means CPAs have to set standards for data quality and manage business policies meant to maximize it in addition to meeting accounting standards. Data security and privacy regulations are also the purview of financial professionals, because of the digitization of financial data.

    Financial professionals who can automate various business processes will be able to leverage automation and serve many more clients effectively at a lower overall cost. The ability to mine and make use of masses of data allows financial professionals to provide greater insight than out of the box reports.

    Professionals Forced to Move Up the Food Chain

    As AI takes over the menial tasks like totaling up expenses and checking spending against an established budget, financial professionals must find new roles to fill if they don’t want to lose their jobs. Because AI is taking over the menial tasks, human staff needs to refine their skills. This may mean learning how to use AI capabilities to improve their own productivity or moving into roles AI cannot fill.

    One great thing is that students can now get an online accounting MBA that is up-to-date on Big Data and AI. Getting their MBA online allows them to learn the regulatory and reporting requirements that accounting and finance firms must meet. They’ll learn not only generally accepted accounting principles but also the more advanced skills like budgeting and performance evaluation needed to make use of data.

    This allows them to move into financial planning, risk management, tax planning and other higher-skill positions. And, they must do so since bookkeeping, accounts payable and entry level tax accounting are likely to become automated. Finance professionals will want to be able to do more than report past performance relative to key performance indicators and give actionable advice to improve performance.

    Auditing and Auditability

    Digitalization of the financial audit process dramatically increases its security, because it automatically tracks who accesses what data and when. You don’t have to search through old paper files, because you can quickly search through digital files instead. The fact that all of the information is saved digitally allows for 100 percent financial auditing. This improves the efficiency and accuracy of audits over the traditional samples that were audited.

    Machines to Work with Human, not Against Them

    At the end of the day, machines will have the ability to complement human intelligence and will work best in conjunction with human input. While bank reconciliations could be better handled by machines, there is still much need for emotional intelligence that only humans can provide.

    Machine learning could be used for advanced analysis, while humans can use this flow of data to be better advisors and tailor financial services and solutions to clients based on certain intangibles. If anything, the role of humans will be even greater, as there will always be need for people who can analyze this data and apply them to human needs.

    Conclusion

    Machines have long taken care of the monotonous, repetitive tasks and are now starting to be implemented for more complex operations. Artificial intelligence and Big Data are allowing them to change the way accounting and financial work is done, and we can expect them to start taking a larger role in the future.

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  • Strong retail interest in Asia, but very little action

    Strong retail interest in Asia, but very little action

    More than 80 percent of Australian businesses have Asia on their radar, but most are failing to generate significant revenue from Asian markets, a new report from Asialink Business has found.

    Of the businesses surveyed, 83 percent generate less than half of their annual revenue from Asia, and 55 percent generate less than 5 percent of their annual revenue from Asia. This is because they haven’t taken the necessary steps to grow.

    These include hiring staff with the right language skills and experience to operate in Asia, keeping up with Asian customers’ fast-changing preferences and having a presence on the ground – three characteristics that top performers in the Asian market share.

    “The business opportunities that exist in Asia are well known and well versed. But while many Australians businesses are including Asia as part of their strategy, we know that majority of these organizations don’t optimize their operations to maximize revenue streams,” Jonathan Yeung, head of Asian business banking at Commonwealth Bank of Australia, which sponsored the report, said.

    One business that is tapping into the Asian market successfully is Australian health and beauty brand G&M Cosmetics, which was profiled in the report.

    The Sydney-based business, which has been manufacturing and selling to national and global retailers for over 22 years, first started exporting to China in 1998, and now exports 600,000 units of skincare products to the country every week.

    CEO Zvonko Jordanov said it is crucial to understand the customer in each market you sell in.

    For instance, Emu oil-based products are best-sellers in Taiwan and Malaysia, but Lanolin is preferred in China. This changes quickly, though, and Jodanov said avocado, goat’s milk, and manuka honey products are on the rise.

    At its laboratory in Australia, G&M also looks at the suitability of certain skincare products for different markets based on local conditions, including weather and humidity.

    “We’re all humans. The number one thing is that you respect the consumer. Give them a proper product and don’t promise the impossible,” Jordanov said.

    According to the Asialink Business survey, businesses that tailor and adjust their product or service and marketing earn, on average, more than eight times the revenue from Asian markets than those that sell the same offering using the same marketing.

    Businesses that always mention these Asian language skills and experience in the Asian market in job ads earn, on average more than five times the revenue from Asia than those that do not.

    And 33 percent of businesses that earn more than 5 percent of their annual revenue from Asia undertook in-country visits at least once a month – more than double that of businesses earning less than 5 percent of their revenue from Asia.

    The businesses most likely to be doing well in Asia were professional services firms, according to the report, followed by private education and training organizations.

    China was the top Asian market for 44 per cent of respondents, followed by the ASEAN countries, which include Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, Laos, Brunei, Cambodia, and Myanmar, for 32 per cent of respondents.

    Overall business sentiment towards Asia remains positive, despite the ongoing China-US trade tensions, the report found.

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  • What retailers can learn from Ikea Retail

    What retailers can learn from Ikea Retail

    “Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It’s not about money. It’s about the people you have, how you’re led, and how much you get it.”

    – Steve Jobs

    “These businesses are wholly aware that Amazon is eyeing what’s theirs and that what worked yesterday probably won’t work tomorrow. They are motivated to embrace change and their customers are certainly changing.”

    – Beck Besecker, Forbes

    As Besecker goes on to say, consumers, today have constant access to entertainment and communication through smartphones and the internet, while real estate development trends are leaning away from bedroom communities and towards new urbanism and gentrification.

    And so adaptation remains far more relevant than innovation. To adapt we must have:

    • vision
    • bravery
    • skill
    • risk appetite
    • insights
    • and an insatiable ability to question why.

    Businesses that meet these criteria will be hugely successful in this retail landscape both now and into the future because they will be best placed to meet three inescapable trends emerging quickly:

    • In-store retail is naturally becoming less about inventory and more about providing intermediary and indispensable, location-based services that result in sales, craft relationships with customers and captures new data.
    • Advances in fulfillment and same-day delivery services will dictate largely the role of retail shops as points of sheer fulfillment
    • As this blends into the landscape, physical space in shops will start to decrease, and digitally integrated experiences will become more common, and sales will occur in different ways.

    Bricks-and-mortar retail has always been about the fantasy of what is possible, and that inspirational experience remains at the heart of retail.

    Emerging retail formats will further blur the line between shopping and entertainment – so much so that the customer may lose sight of the fact that they are in a store.

    Take the Ikea shopping experience, which is designed to help people imagine Ikea products as part of their day-to-day lives. Ikea doesn’t just sell furniture, it sells a lifestyle, and its stores are set up to entice customers to adopt the Ikea way of thinking.

    But while the global retailer traditionally has built huge lifestyle outlets, now the brand is adapting its store format to global consumer trends around urbanization.

    Last year, the Swedish furniture brand announced it would open 30 new store concepts in urban centers, from stores of the future to sub-100sqm shops to pop-ups, to standalone cafes and singular category shops.

    The stores are backed up by the most advanced technology, providing everything Ikea has to offer, but in a virtual environment. The goal is to make every interaction between the customer and the brand more seamless, allowing consumers to have fun while shopping and learning about the brand along the way.

    Looking at Ikea’s urban store in Madrid, there are three very important reasons for the success of this concept:

    • services
    • proximity
    • entertainment.

    The new store offers much more than a standard Ikea store. There is a high level of entertainment available, with the main goal being to engage customers. And since the store is located in the city center, customers can easily shop on their way to work, or while they spend their time in the city.

    Customer can learn how to customize their products, try different furniture concepts and styles, receive expert decoration and design advice, enjoy various projections and visual merchandising of products, and so much more.

    Other retailers can learn from Ikea’s example. Aside from delivering the highest level of brand engagement, inspiration, and entertainment, it also uses digital to make its services and products fully customer-centric.

    Ikea is also continuing to explore new store methods and formats that will allow it to get even closer to its customers and deliver world’s best omnichannel offer while remaining a leading brand in furniture retail, and potentially revolutionizing the way people buy products.

  • E-Commerce to Be More And More About Community.

    E-Commerce to Be More And More About Community.

    People tend to be very loyal to their favourite brands and this is a luxury online few brands can afford thanks to their greate client services and details that make their customers feel unique. Nowadays, reaching customers and addressing tailored messages can be even easier thanks to the social media and, as an e-commerce business owner, you will need to customize your communication as much as possible to create a community around your brand.

    Before doing so, however, you will first need a store and a brand to build around. The good news is that this is now far easier than ever.

    Creating an e-shop never been that easy

    In the past, building a website was a highly technical affair as knowledge and experience in computer coding was necessary. This meant that owning a website was out of reach for many people that had neither the skills to build one, or the budget to pay costly website builders.

    This has all changed, however, with online store builders such as Shopify.  These solutions are designed to make it as easy as possible for anybody to use. You can choose from a variety of themes to get you started, while they also have drag and drop features that allow you to place what you want, where you want it, with ease.

    It’s not just that you can now build an e-commerce site easily, but platforms also come with an array of useful features that help you to get the most from your online store.

    Here’s a look at some of the features that will help to make your site a success.

    • Affordable Pricing: A basic Shopify package will cost you just $29USD/month. This package will have all that first-time store owners need, while more advanced packages are available for owners of stores that are busy and need more advanced features.
    • Customer Profiles: E-commerce builders can be integrated with apps that allow you to track your customers’ shopping habits. This will provide valuable information that enables you to offer the right products at the right times, generating brand allegiance and additional revenue.
    • Social Media Integration: With so many people using social media apps like Facebook, it makes sense to integrate your store with these platforms to tend to what we call social commerce. This will give you access to a greater market, as well as additional features that can help improve customer satisfaction and your bottom line.
    • Dropshipping: Buying stock is one of the most expensive and riskiest aspects of starting a business, but e-commerce site builders help to do away with that risk. E-commerce dropshipping apps mean that products are shipped directly from the supplier, meaning you don’t have to pay a penny for the products before you make a sale. It also overcomes headaches involving storage and other logistical issues.

    With such an easy to use and intuitive system, it is easy for people even without technical skills to build an e-commerce store that competes with the best in terms of appearance and functionality.

    Turn your customers into ambassadors

    The next task is to attract customers and build up your brand, and there is no better way to do this than to build a community surrounding it. Word of mouth is the best tool to sell your products and your ability to build a positive feeling about your brand and your products will be an asset to take over your competitors. Question is, how to develop a community?

    Content Marketing

    Content marketing is a method of growing your brand and generating further revenue without actually pitching for sales, mainly by creating high value pieces of content to build your audience and community, which can be achieved by releasing surveys and articles that will tackle all the questions your prospects have about your products.

    It can be incredibly effective when done right, helping to generate loyal brand devotees rather than one-time customers. One of the best examples of this is GoPro. The brand uses the videos filmed by their own users to build its community, by uploading them on its own platform. While there are many ways to use content marketing to build a community, help your customers and creating a positive image are two important strategies to set-up.

    Key Opinion Leaders

    When people in a position of trust, respect, or authority say something, others tend to list. Imagine having Beyoncé say that she bought an accessory from your fashion e-commerce store. The only problem you will have there is being able to keep up with the orders that flood in.

    This might be an unlikely example, but if you can, you should do what you can to get your products mentioned and establishing partnerships through influencer agencies or directly by outreaching them on Instagram is an essential part of a proper marketing campaign.

    Create Events

    E-commerce sites may do their business in the virtual world, but that does not mean to say they should not be noticed in the real world as well.

    One great way to get yourself noticed away from the world-wide-web is to create events for others to get involved in. Here, you can have people interact with your products as well as with you and any team members you may have. If you can’t create events yourself, then look for other events that your business may be able to take part in and contribute to.

    Story Telling

    Story telling is a fantastic opportunity to help your potential customers really relate with your brand. The right story can push the right buttons and even help your audience form an emotional attachment to your brand. When creating your story, you should make sure that you understand your audience well and know what makes them tick. Appeal to their desires, their needs, and their problems and demonstrate how your products are just what they need. Even if it does not make a sale immediately, the right story could still have you well on your way to acquiring loyal followers of your brand.

    Building an e-commerce store is the easy part, the harder part is attracting customers and keeping them. Building a community around your brand is one way to achieve this.

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  • What is eCOGRA and Why Is It Important?

    What is eCOGRA and Why Is It Important?

    In your quest to find the best online gambling website, it is most likely you have heard about eCOGRA and why it is important that any casino you want to join is certified by this body. New punters might not be aware of the importance of the eCOGRA seal, but regular punters are most likely aware that it is what separates the legit gambling websites from the hundreds of scams swarming the internet. While it may seem almost impossible to regulate the online gambling industry like its land-based counterparts, regulatory authorities make it hard for unauthorised gambling platforms to thrive in the industry. The very first brand certified by eCOGRA is Vera&John.

    Founded in 2003, eCOGRA is an independent regulatory body based in the United Kingdom. This international authority’s acronym stands for eCommerce Online Gaming Regulation and Assurance. eCOGRA is mainly responsible for ensuring fair gaming, responsible and transparent conducts on gambling websites and player protection.

    eCOGRA has two divisions, which is ATA (Approved Testing Agency) and SRS (Self-Regulation Services). The Approved Testing Agency is in charge of evaluating and issuing accreditations to gambling websites and online gaming software. This ATA reviews gambling websites and gaming software by performing a compliance review. Other forms of testing done by this division include testing the RNG (random number generator) used by online casinos to make sure it is fair enough before it goes into use.

    The Self-Regulation Services is the arm that prevents unauthorised activities such as underage gambling, breach of player’s private information, and ensures prompt and due payments of all winnings amongst other things. Both the ATA and SRS work hand-in-hand to make sure online gambling is as safe as possible for all punters.

    Generally Accepted Practices

    For an online gambling website or software provider to meet the eCOGRA standard, there is a strict code of conduct list also known as the eGAP system which they must strictly abide by. The eGAP system is a list of requirements which highlights all that is expected for a gambling website or software provider to become certified. Once all the requirements are met, the casino or software provider can then proudly display the eCOGRA seal on its website.

    Overall, eCOGRA plays a vital role in the online gambling industry. The auditing services offered by the authority prevent millions of users from falling preys to scam websites in the industry. One can boldly say the regulatory body makes the online gambling industry a safer place for punters.

     

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  • Indian mall space to grow by 65 million sqft by 2022

    Indian mall space to grow by 65 million sqft by 2022

    India will take on more than 65 million sqft of new mall space by the end of 2022, according to a new report from real estate services firm Anarock.

    The report shows the region’s top seven cities will account for 72 percent of the new mall space, while tier 2 and tier 3 cities will see 18.2 million sqft of new supply. Nearly two-thirds of the planned space (40 million sqft) will hit the market by next year.

    “This new supply is also driven by the increasing interest of institutional investors – including private-equity players – who invested almost US$1.9 billion into Indian retail between 2015 and the first quarter of this year,” said Anarock Retail MD & CEO Anuj Kejriwal. “In fact, more than 60 percent of this investment was infused in the last two years alone, making these the best years for the Indian mall sector in recent times.

    Notwithstanding the decline in deal activity in the second half of last year following the liquidity crisis, the retail segment attracted investments of almost $115 million in just the first quarter of this year.”

    The report also maintains that real estate investment trusts (REITs) can be a viable tool for mall developers to raise funds, but this fund-raising instrument still needs to mature sufficiently. Also, the retail REIT structure and performance may not be directly comparable with the commercial office sector.

    The report also showed the Indian retail industry has moved from long-term leasing to short-term leasing tenures (three to five years) to enable constant updating of the brand mix within the mall. Globally, the standard lease term is still above five years.

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  • How to use and unleash the power of artificial intelligence

    How to use and unleash the power of artificial intelligence

    Artificial intelligence has been a buzzword in the retail industry for some time now. But rather than just talk about it, retailers are now at a stage where they are putting words into action and starting on their first AI projects.

    Over the last year, an increasing number of retailers have started to adopt the technology. Uniqlo, for instance, uses machine learning to power a digital assistant on its app, which is able to give highly personalised recommendations. In Hong Kong, convenience-store operator Circle K unveiled an AI-driven checkout solution last year that uses image-recognition technology in the self-checkout process.

    While there are clear benefits to implementing artificial intelligence – improving operational efficiencies and gaining a better understanding of the customer are just two – it can also be a daunting task to embark on. Here we identify three key considerations for retailers that are looking to unleash the power of AI…

    Quality of data

    Through machine learning, retailers are able to take data from multiple channels and turn that into actionable predictions and recommendations. But the biggest success factor is not the algorithm behind these insights, but rather the quality of the data that feeds into it. Retailers that do not have their data estates in order risk having underwhelming outcomes from their AI investment. This is something that must be considered beforehand.

    Choosing which areas to focus on

    There is a multitude of areas in which artificial intelligence can be deployed in a retail setting. Aside from the different applications of AI technology – for instance, machine learning, natural language processing and robotics – there is also a choice to be made in terms of the operational area, be that the customer-facing side of the business or processes that run behind the scenes.

    AI initiatives that help to improve the customer experience can be an ideal starting point as this is an area that benefits from a wealth of data and can provide a quick win for a retailer.

    Bringing in external expertise

    Many retailers will lack the skills and expertise to confidently start leveraging AI technology. The solution is often a combination of recruiting talent to bridge the skills gap and working with credible technology partners. The advantage of both these approaches is that retailers can hit the ground running and be able to accelerate their first move. Speed is critical if a retailer wants to be a disruptor rather than disrupted.

    Digital Transformation Survey

    Is your organisation looking at emerging technologies such as artificial intelligence, augmented reality and automated deliveries? And how do technology partnerships form part of your digital strategy?

    Tofugear is conducting its annual digital transformation survey and is asking C-level executives and senior managers across Asia about their approach to innovation.

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  • Online and New Retail concepts in China driving FMCG market growth

    Online and New Retail concepts in China driving FMCG market growth

    Online and New Retail concepts in China are driving FMCG growth according to a report by Bain & Company and Kantar Worldpanel.

    As reported The Chinese FMCG market remained robust last year despite talk of economic slowdown.

    According to the latest China Shopper Report produced by the two companies, e-commerce channel growth in China slowed slightly to 30.6 per cent between 2017 and last year (compared with 35.1 per cent annual growth between 2014 and last year), as penetration in tier-1 cities leveled off at around 80 per cent last year. In lower-tier cities, however, growth is expected to continue for at least three or four more years and will serve as the engine of future online expansion.

    While last year didn’t necessarily represent a turning point, the research revealed renewed hope for offline retailers. Previously, offline stores in most formats had been steadily losing share with the rapid rise of online channels. Now there are new and interesting opportunities for offline retailers to regain their momentum, in many cases with smaller and more flexible formats. For example, the share of traditional trade (grocery) food and beverage sales intended for out-of-home consumption has risen by 14 per cent per year since 2016, reaching nearly 80 per cent last year, based on the 10 food and beverage categories analysed in the research. It is similar with convenience stores: their sales for out-of-home consumption grew 17 per cent per year in the last two years, and represent 88 per cent of total convenience store sales, for these same 10 categories.

    Large store formats also show potential for growth, but it will require them to take on new roles, the report found Last year, hypermarkets started to reignite some of their momentum by serving as a logistics base for 30-minute delivery of goods ordered online via the leading delivery platforms. Another opportunity: big chains can reinvent themselves by upping their game in fresh food.

    Insurgent brands punch above their weight

    In addition to examining these ongoing trends, Bain & Company looked at two other developments: the dramatic impact of fast-growing small brands on larger brands, and the emergence of the uniquely Chinese phenomenon of New Retail – futuristic supermarkets devoted in equal measure to in-store dining, online ordering and delivery.

    Last year’s China Shopper Report revealed that China’s insurgent brands are taking a disproportionate share of FMCG growth. As that trend continues, a fundamental question faces many companies: Can big brands get bigger and continue to be successful?

    “The new reality is that many incumbent brands watch small brands doing an impressive job of serving specific consumer needs, responding in everything from R&D to digital marketing with agility and flexibility,” said Kantar Worldpanel Greater China GM Jason Yu.

    “Whether to focus on growing big brands or building a portfolio of different brands to serve different segments nags at every FMCG executive. It’s a decision that sometimes calls for a major strategic transformation; billion-dollar brands are vastly different animals than $25 million brands and require significantly different management approaches.”

    The other big emerging trend involves New Retail. In any of its forms, New Retail blurs the line between online and offline sales, with potentially major implications for how FMCG products are sold. For example, New Retail’s biggest manifestation continues to be the growth of the food service channel, which is fueled by increasingly faster delivery. Now largely limited to Tier-1 and Tier-2 cities, and with penetration levels comparable to regional supermarkets, New Retail stores will become more broadly relevant in the future.

    According to the report, the acceleration of New Retail in multiple ways presents opportunities for retailers to transition from today’s mass-oriented offline approach to tomorrow’s seamless, multichannel world of shopping. Physical stores have a future, but offline retailers need to refine their moves to play in this new environment.

    The report recommends physical stores:

    • Redesign store portfolios in the New Retail format;
    • Make the store experience more attractive by leveraging new technologies like augmented reality; and
    • Digitalise operations to deliver a seamless experience to consumers, whether they buy online or offline, and start to monetise consumer data for better cooperation with brands.

    The three key implications for brands mentioned in last year’s China Shopper Report remain:

    • Take advantage of the channel dynamics, grow with the winning channels and anticipate retailers’ consolidation;
    • Develop high-value and personalised products to make the most of the premiumisation trend; and
    • Become data-driven, consumer-centric organisations by collaborating with platforms but also by developing your own set of consumer data.

    This year, a fourth important implication arose, based on the success of insurgent brands: Develop a portfolio of brands to grow overall share in a category, taking advantage of the fragmentation of consumer needs and shoppers’ thirst for innovations.

    “As the China consumer continues to become more sophisticated and the channels available to them become more advanced, it is essential that companies who want to win in this new era fully understand what it takes to win in this market,” said Bain & Company partner and report co-author Derek Deng.

    “By understanding and incorporating the new retail model and focusing on a consumer-centric mentality, companies will be able to win in this new battleground which is emerging.”

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  • Improving retail sales and operations with customer traffic data

    Improving retail sales and operations with customer traffic data

    “Highly detailed and accurate traffic information is an absolute necessity in the modern retail environment and the solution provided by ShopperTrak has allowed Kathmandu to leverage this data with great success.”

    ShopperTrak gives retailers and shopping centres the data they need to optimise labour, store and marketing performance.

    By leveraging a combination of traffic data information and analytics, shopping centres that have morphed into ‘destinations’ for consumers can react better to events that impact the popularity and profitability of their venue.

    Today’s shopping centres can fully assist retailers who are on a mission to attract and retain customers and drive conversions in an exciting transitional marketplace for a new generation of shoppers. More importantly than ever, knowledge and accurate data is power!

    Additionally, the ShopperTrak Analytics Suite provides comprehensive, customised reports of high traffic times and traffic patterns across the operation.

    Implementation of the ShopperTrak traffic counting solution in Kathmandu stores has been very successful in driving the business forward and increasing its ability to make data-driven decisions in everything from marketing campaigns to roster management.

    Data produced by these counters now forms a core part of the KPI set for Kathmandu retail and is a daily topic of discussion at every level of the business.

    “While it is impossible to place a solid number on the additional sales/profit to this one project, there can be little doubt that it has enabled us to drive additional sales through a focus on conversion and improved rostering at a store level through the development of a labour demand model.”

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  • Singaporean shoppers prefer shopping in store

    Singaporean shoppers prefer shopping in store

    Singaporean shoppers still prefer in-store shopping, a study by UK mobile tech firm Blis shows.

    The Real Retail Study analysed shopper behaviour in Singapore, and concluded the desire to shop in store is also very much alive, especially when it comes to food and groceries (79 per cent), followed by furniture and home furnishing (69 per cent), and household appliance (61 per cent).

    Consumers are also willing to spend higher amounts when shopping in store, with 81 per cent indicating they will be looking out for in-store deals during the upcoming Great Singapore Sale.

    Four in five local consumers use their mobile phones when shopping in a physical store.

    The most popular reason for doing so is to ‘compare prices for the same item to ensure I am getting the best deal’ (72 per cent), followed by reading other customers’ product reviews.

    Two in three local consumers say they have spent time searching for items on shopping websites but made the final purchase in store. The main reason for doing so is that they ‘like to see the quality of the product before buying’ (56 per cent).

    Sixty-three per cent of local consumers say they have spent time looking for items in stores before purchasing them online. The biggest reason for doing so is that they can ‘sometimes get better deals’ (54 per cent).

    “Our findings show that Singapore consumers still massively value shopping in store, and that any talk about physical retailers being rendered obsolete by e-commerce is premature,” said Richard Andrew, MD for Asia at Blis.

    “Shoppers’ attention and discretionary spending are now being pulled in multiple directions, meaning retail strategy has to evolve. In a mobile-first world, retailers have to master new approaches like location-based data to connect with shoppers at the right place and time to win their hearts, minds and wallets.”

    The study also shows how much Singaporeans love to shop. Forty-five per cent of respondents said they shop because it makes them happy, and nearly half – 49 per cent – consider shopping a hobby. Of them, 55 per cent are women aged 25 to 65.

    When it comes to payment, whether shopping online or offline, Singapore consumers prefer to use credit cards for nearly every purchase of any size. In store, when spending less than $35, cash is preferred.

    “The market in Singapore demonstrates to us that retail isn’t facing its imminent demise, it is simply evolving to keep up with rapidly shifting consumer preferences and behaviours,” Andrew concluded

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  • Smart Ways to Start a Small Restaurant Business

    Smart Ways to Start a Small Restaurant Business

    Going into the restaurant business can be touch-and-go, since the restaurant industry can be quite volatile, especially for new ventures. That’s why it is essential to go into the restaurant business with clarity and purpose. Mistakes can cost money, so you want to ensure that you are fully prepared, financially capable, and in the know about the ins and outs of being a restaurant owner before you begin.

    Restaurants are daily staples for many consumers. People go out to eat a lot, and it makes sense that high quality, popular restaurant would be an entrepreneur’s dream. Only without prior knowledge and expertise, things can go awry quickly. Below are some excellent tips on making sure that your restaurant journey will go smoothly and as planned.

    Have a Business Plan

    Before you start your own restaurant, it is essential that you and your partners devise a business plan. You can usually get free help on your business plan from your local Small Business Administration or from your local Chamber of Commerce.

    Business plans need to be meticulously written with all of the components for business success in mind. Your plan should not be any whimsical document.

    Components of a good business plan includes a breakdown of the foods you’ll serve, your day-to-day operations, your potential customer base in the area, market analysis as well as competitor analysis, your start-up and marketing costs, your current operating capital, expense reports, your quarterly revenue projections needed to keep the restaurant running, and so forth.

    Without a solid business plan, you can expect failure. Again, contact your local Small Business Administration or Chamber of Commerce to assist you in devising a proper plan. Proper planning also means reaching out to companies who you will most likely have to pay to conduct market analysis, for instance, so be sure to factor these expenses into your overall budget.

    Concept and Competition

    As mentioned previously, people like to go out to eat. That’s why there are restaurants on every corner and nearly everywhere we look. Before you start a restaurant business, be sure to consider the competition in your area and the concepts they are using and the value they deliver. What are you going to do differently.

    Usually, this requires that you come up with a clear vision, a value statement, and a mission. Your vision is what you want your restaurant to become. Your value statement tells you and your customers what type of value you will bring to them and your community. Your mission is your daily goals to meet this value and your overall vision. It’s very important you put time into determining these components for yourself and your restaurant.

    Once you figure out what your mission, vision, and value will be, you will and a theme for your restaurant. Brand and theme should accent vision, mission, and value. They will go hand-in-hand and should be transparent to the customer, who should be able to see your intent based on day-to-day operations and the quality of your service. Coming up with brand and theme can require serious thought. Again, seek out professional advice and the advice of partners when in doubt.

    Menu Selection

    Along with your concept and your brand, the foods you select for your menu should mirror your intentions and your theme. For instance, if you decide to start a fast-food restaurant, the food you choose should be able to be prepared fast and convenient. If your goal is to provide fine dining and elegance, the food preparation can take longer, but the taste and experience should be part of the value you offer.

    As you’re coming up with your business plan, vision, and theme, start to think of the best foods you could serve, your own capabilities as a restaurateur and chef, and what is within your comfort zone and financial means. You wouldn’t want to start a five-star restaurant if you aren’t competent at cooking gourmet food and only have a shoestring budget. Think within your means and your capabilities.

    Also consider your restaurant’s location, your potential customers, and how your menu will impact your business plan. Some types of food do better in certain locations, while others do not. You wouldn’t want to open up a restaurant that won’t do well financially in a particular area, even if that is your passion. Analyze your competitors in the area, and find what works.

    Investing In Your Restaurant

    Once you feel like you’re ready to proceed with opening your own restaurant, you’ll want to ensure that you have the funds to do so. Many entrepreneurs believe in OPM or “other people’s money,” and they’ll reach out to investors to secure start-up capital. This is always a personal decision, as some people do quite well as borrowing money, while others would rather save up their own money before venturing into entrepreneurship.

    Either way, you’ll need to look at your business plan to ensure that you have the right amount of start-up capital before you begin. Many businesses don’t turn a profit until their third year, so it’s always wise to have at least enough capital to maintain operations for three years. This should include the cost of the lease, equipment and employee costs, food costs, and maintenance costs. Again, you’ll need to make sure your business plan is solid so that you don’t feel financially short before the business is given time to turn a profit.

    Finding Suppliers

    For food, you’ll need to find local suppliers who can deliver directly to your restaurant. For most of your equipment needs, you can order directly to find the best prices. Equipment can include anything for your kitchen, from ovens to tables and chairs to dinnerware. When selecting dinnerware, Macy Hooper from VEGA Direct https://www.vegadirect.ca/) suggests choosing a stylish set that is also durable. Durability is important for budgeting purposes, as you’ll have to purchase new dinnerware less often when you choose long-lasting dinnerware at the beginning. This is important when choosing other suppliers as well, as you’ll want to make sure any equipment you purchase will last and cut down on future replacement costs. Always make sure you research suppliers for the best possible deals and equipment.

    Find Your Location

    There is a lot of synergy to the process, as components of your business plan may hinge on your concept and theme, and vice versa. The location you choose is no different. You may not know how to plan for your restaurant until you’re sure of its future location, so scouting a good location may be necessary at the beginning of the process. Honestly, you may want to start a restaurant only because you found a location that sparked your interest in opening an eatery.

    Once you do find a great location for your restaurant, be sure to discuss your lease and other information with the owner. Of course, this information will need to go into your business plan. Also, you’ll need to check with your local government agencies to make sure you obtain the right licenses and permits for your restaurant.

    Be sure to pick a location that is in a great area, visible from the road, and preferably convenient to business locations so that you’ll always have a steady lunch crowd. Make sure that there is plenty of parking, that the building meets your standards, and that it provides the right atmosphere for your concept and theme.

    Hiring Employees

    Hiring employees is no easy task, so make sure you account for this information in your business plan. You’ll most likely need a head chef, a cashier, a floor manager, wait staff, and a dishwasher. Some restaurants can get by with only a few people doing multiple jobs, while others will require numerous employees. However, take into consideration that some states require certain licenses for food employees, so be prepared to invest in your new hires by offering training through programs like 360’s food handler training course.

    Advertising and Opening

    You’ll want to advertise your restaurant in the local yellow pages, on nearby billboards, through flyers and mailers, and digitally on the web. Your advertising budget should be accounted for in your business plan. You may also want to consult an advertising firm.

    Most restaurants will have a soft opening to make sure things are running smoothly. Soft openings give restaurants time to work out the kinks and increase efficiency. Once you feel like everything is going well and you’re ready to open full-time, you’ll want to announce your grand opening. The Chamber of Commerce and other business organizations can assist with grand openings and publicity. It’s also suggested you offer coupons and other discounts for your grand opening to get more people in the door.

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  • Global personal luxury goods market growth endures

    Global personal luxury goods market growth endures

    Global personal luxury goods market growth has reached a “new normal” pattern, following back-to-back years of strong performance in 2017 and 2018, according to the luxury goods industry advisory service Bain & Company.

    Last year, 6 per cent global growth* led to €260 billion (US$292 billion) in sales, which is expected to balloon to €271–276 billion ($304.3–310 billion) this year, registering an expected 4-per-cent to 6-per-cent growth at constant exchange rates.

    According to Bain, the growth has been driven primarily by the acceleration in domestic spending of mainland Chinese consumers and an increase in European tourism, which, despite socio-political turmoil in countries like the UK and France, fuelled positive growth in the region through last year’s holiday season.

    Meanwhile a temporary weakening of consumer confidence in North America, as well as a decrease in traffic to malls and department stores, negatively impacted personal luxury spending during last year’s holidays stateside.

    The findings were part of the Bain Luxury Goods Worldwide Market Study, Spring 2019 presented this week in collaboration with Fondazione Altagamma, the Italian luxury goods manufacturers’ industry foundation.

    “This year looks to be on par with our new normal of growth in the market,” said Bain & Company partner and lead author of the study Claudia D’Arpizio. “China continues to dominate the luxury scene. Elsewhere we are continuing to see geopolitical uncertainty shape and reshape tourism spending patterns, with Chinese consumers choosing to spend domestically with more frequency. Overall we are seeing moderate growth in most markets.”

    The report showed that mainland Chinese consumers are demonstrating a strong preference for purchasing luxury goods at home thanks to price harmonisation, consumer-centered strategies, and governmental initiatives. Solid consumer confidence and willingness to buy, especially among young generations, are expected to drive year-over-year growth of 18–20 per cent* in the region.

    Japan remains an exclusive and attractive market for luxury brands, with forecasted growth of 2–4 percent* in 2019. Tourist spending is expected to rise ahead of the Tokyo Olympics in 2020, with Chinese consumers already confirming their interest in the area.

    Across the rest of Asia the outlook is positive, apart from Hong Kong and Macau, which continue to lose out to Mainland China. Bain & Company asserts that the luxury market in the region is set to grow by 10–12 percent*. An expanding middle class with increasing disposable income is fueling growth in Indonesia, Philippines and Vietnam, while sustained growth in South Korea is the result of local consumers and a mild rebound of tourism.

    The rest of the world is expected to be flat or see a slight decrease of 2 per cent*, with the Middle East remaining stagnant as domestic consumer spending begins to flow outside of the region.

    “We expect stable growth in 2019,” said D’Arpizio.  “But under the surface of this new normal, the future of luxury is taking shape with a number of key characteristics, including Chinese Generation Z, access, ownership, sustainability and social responsibility, the impact of digital across the entire value chain, preference for luxury experiences over products, and consumer networks as a new measure of value.”

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