Category: Research

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  • Thai e-commerce poised to touch $58b in 2015; rise in online shopping, 4G services to push growth

    Thai e-commerce poised to touch $58b in 2015; rise in online shopping, 4G services to push growth

    The ETDA’s survey cites that top three verticals that account for the highest income from e-commerce in 2015 are accommodation and food services worth 658.9 billion baht ($18.39 billion), followed by manufacturing 350.29 billion baht ($9.78 billion) and retail and wholesale 325.08 billion baht ($9.07 billion).

    The B2C e-commerce in 2015 will rise 15.29 per cent from 410 billion baht ($11.44 billion) in 2014, and the B2G will surge 3.96 per cent from 390 billion baht ($10.88 billion) last year. However, the B2B e-commerce is expected to slightly shrink by 0.34 per cent from 1.23 trillion baht ($34.33 billion) in 2014.

    “Thai e-commerce market remains highly attractive as more people open up to online shopping. Also, 4G will drive the growth of the e-commerce market in Thailand,” ETDA’s chief executive officer Surangkana Wayuparb said.

    In early November, Ascend Group announced to invest 5.3 billion baht ($147.92 million) to expand its e-commerce businesses, iTrueMart and ‘Weloveshopping’, into ASEAN countries.

    It plans to invest in warehouses, logistics and marketing activities in the Philippines this year, followed by six other countries – Indonesia, Malaysia, Vietnam, Singapore, Myanmar and Cambodia – in 2016.

    “We aim to be the e-commerce market leader in ASEAN by 2018,” Punnamas Vichikulwongsa, president of Ascend Group, told local media.

    A report by Euromonitor International states that the B2C e-commerce market for retail in the AEC will surge by 20 per cent per year from nearly $5 billion this year to $7 billion in the next two years.

    Considering Thailand as a centre of the ASEAN, foreign investors have eyed on the opportunities to use Thai e-commerce market as a springboard to other countries.

    Japan’s e-commerce solution provider Transcomos, for example, recently made a joint venture with Ookbee, a Thailand-based leading e-bookstore platform, to tap into the e-commerce business under Ookbee Mall.

    Even the world’s top e-commerce site Alibaba is in talks with Thailand’s Crown Tech Advance to co-invest in both logistics and e-commerce in Thailand. However, both companies have not finalised the deal yet.

  • Baby Food Market is would reach $72.7 Billion, globally, by 2020

    Baby Food Market is would reach $72.7 Billion, globally, by 2020

    Big Market Research has added a report titled “Baby Food Market – Opportunities and Forecasts, 2014 -2020)”. As per the report, global baby food market would garner a revenue of $72.7 billion by 2020, growing at 6.4 % CAGR during the forecast period 2015 – 2020. The report offers in-depth industry insights in terms of current and future market trends, key drivers and restraints along with their impact analysis, growth opportunities and profitable trends, detailed market segmentation and forecast.

    Increasing awareness for nutrition, growing activities in organized retail marketing, urbanization along with rapidly increasing count of working women are the key factors that would drive the baby food market growth. The report segments the market on the basis of product type, type of distribution channel used and geographical regions.

    Asia Pacific region generates the maximum revenue and is expected to register highest 7.7% CAGR amid 2015 – 2020.

    On the basis of types, the report further segments the market majorly into dried baby food, milk formula, and prepared baby food. Among these segments, the milk formula contributes a major market share of nearly about 2/3rd of the market, in terms of value. This is primarily due to rising global demand for milk formula, increasing rate of urbanization, rising disposable incomes and the changing lifestyles. Cow milk based formulas witness prominence among emerging economies.

    Based on types, prepared baby food is the second largest market globally and would grow at the fastest CAGR amid the forecast period. Time constraints faced by the parents fueled by changing lifestyle are the key factors driving the market demand. Developed countries majorly contribute to the demand for prepared baby food, however, the segment will witness significant adoption across developing countries along the forecast period. On the basis of distribution channels, the global baby food market is segmented into supermarkets, hypermarkets, small grocery retails, beauty and health retails. Vendors prefer the supermarket channels as the primary distribution channel, and followed health and beauty retailers segment. Asia-Pacific dominates the global baby food market, followed by European, North American and LAMEA region

    Asia Pacific region is the largest market in terms of the market demand for milk formula, contributing over 50% of the total global market share, driven largely due to improving economic condition and changing lifestyles of individuals across this region. Presence of multi nutrition along with the market availability of balanced nutrition in one pack is a major factor propelling the demand in North America.

    Key market players operating in this market are adopting acquisition as dominant strategy to consolidate their market presence. Acquisition is one of the primary strategies adopted by companies operating in this market. Companies like Abbott Laboratories and Nestle are adopting competitive branding strategies in order to expand their customer base.

     

  • A Short Overview of Malaysian Shopping Trends

    A Short Overview of Malaysian Shopping Trends

    #1 Majority of our customers are residing outside of Kuala Lumpur

    – There is an evident shift of customers shopping on Lazada with 81% of them residing outside of Kuala Lumpur

    –  Reasons behind this shift include 

        a) Affordability of products – Consumers from various backgrounds are able to purchase products from a wide price-range ( mid to low-tier)

        b) Convenience  – Consumer located outside of KL are able to purchase high- quality bulky products delivered to their location of choice            without having the need to locate these products at the shopping mall and sourcing for delivery trucks

       c) Accessibility – Consumers outside of KL now have access to purchase a variety of top brands online which were previously unavailable 

          at their area. This ensures that they are kept abreast on the best deals and promotions despite their geographical location.

    #2 Category shift in 2015

    – Previously our top selling categories were electronics, home appliances and toys kids and babies. However, there has been a surge in        

      demand in other categories ranging from sports and outdoor, fashion and groceries

    #3 From tech geek to family shoppers

    – Online shopping is commonly associated with the Gen Ys as they are presumed to be tech- savvy and are more comfortable shopping 

      online compared to the older generations. There has been a change in trend whereby majority of the online shoppers now are aged 30   years and above and are sourcing for a wide range of household related products ( home appliances, baby products etc)

    #4 Mobile-First: Anywhere, Anytime, Always – On

    –  Malaysia is transforming into a digital nation with high mobile penetration across the country. Hence, it comes to no surprise that majority of Malaysians are hooked to their mobile devices to obtain further information on a particular product/ source for the best online deals via mobile platforms.

    #5 Customers are moving away from deal hunter to brand savvy shoppers

    –  Consumers are no longer exclusively shopping online only during sales or are constantly on a lookout for special deals or promotions before purchasing a product. Instead, consumers now have high-brand loyalty whereby they source products from their favourite brands across categories when shopping online.

    Lazada_Infographic-06_age range

    LZD Trends v1

  • Innovation is not an issue in Indonesia: Ideosource’s Andrias Ekoyuono

    Innovation is not an issue in Indonesia: Ideosource’s Andrias Ekoyuono

    Prior to his current work, he spent years at Indonesia’s major online media Detik.com, followed by a stint at Hewlett-Packard and XL Axiata.

    “Back in Detik.com, my work involved setting up new businesses, business models, and monetisation models. I also did some marketing,” he explains. “There is actually a continuation between what I am doing then and now.”

    As an Indonesian VC, Ideosource’s portfolio ranges from gaming with Touchten, media with Female Daily Network, e-commerce with Bhinneka, and innovative companies for niche markets such as Stockbit and e-Fishery.

    Its latest investment is a sports wearables company called Turing Sense, a Silicon Valley-based startup founded by Indonesians.

    Dividing time between mentoring and looking for new business, as well as writing and speaking about entrepreneurship, Ekoyuono discusses startup and innovation in Indonesia – and why, despite challenges here and there, there is progress to celebrate.

    Can you tell us how the tech startup landscape in the country is?

    There is a significant difference with when we began in 2011. At that time, [the tech industry] was still in its early stage, we even had to make our own incubation programme, since incubators were basically non-existent. But lately, there have been more and more incubators, both from telco [companies] and campuses. There is definitely progress.

    We are starting to get used to hearing news about funding, and founders are getting more diverse. When we began, most founders were university graduates … But now, we have begun to see Internet industry veterans and diaspora – Indonesians who have been living and working abroad.

    There are also founders who have already run a conventional business, migrating to the digital side.

    Up until two years ago, people thought the Internet industry was cool, but [it was] still something for the distant future. No sense of urgency. But Tokopedia’s funding last year really got people to wonder … What is this company and why is US$100 million given to them?(laughs)

    Especially since they also advertise heavily on conventional media such as TV and newspaper. People began to see the Internet as ‘something’.

    But the most phenomenal is Go-Jek. Once it got to the level of the ojek drivers, it strengthened the message that technology is indeed for everybody.

    Speaking of business types, does e-commerce remain a primadonna in Indonesia?

    If we are looking with a top-down approach, there are some industries with strong visibility. First is media, then e-commerce, then fintech … The others are transportation. These are the ones with the biggest market. Consumers are starting to evolve.

    What founders need to consider is how to bridge between a digitised consumer and the industry itself, which might be run by conventional business and transaction model.

    Will this sector grow? I believe it will, followed by other sectors. Fashion and electronic goods still play a crucial role. But groceries are also starting to grow.

    What are the greatest challenges for investors in Indonesia, especially in terms of scouting for new talents and business?

    If you read my writing, you might notice that the main idea is about sharing knowledge to Indonesian startups to prepare for their pitch. Informing them what sets them apart from traditional entrepreneurs.

    The issue that we often see in Indonesian startups is that many founders do not have a deep understanding of the problem they are trying to solve. They often shoot something that may not be that big of a problem; that consumers do not even care about … It is advisable to start from the problems you encounter yourself.

    Second, often, founders do not have enough knowledge about building a sustainable business. For example, selling durian online is certainly not sustainable as you can only do it during durian season! (laughs)

    There is also a problem of scalability. How to balance between cost and business model.

    Does this mean that investors only sit around and wait? No. Especially for Ideosource, since we are local, we have been spending our time to build the ecosystem. Doing campus visits, building communities, writing in the media …

    Is innovation dead in Indonesia? Do founders tend to play it safe with businesses with great revenue?

    Oh, I’d say it’s not even an issue! Many people believe so because they are looking at Facebook and Twitter, which, at the beginning, might seem to not have a clear mechanism for monetisation. There is a misconception. I believe they did [consider monetisation], but it is just not [as] exposed.

    Our main problem is not innovation itself, our main problem is not fully understanding which problem to tackle. “We want to gather users first!” Yes, but what do you want these users to do?

    When it comes to innovation… Every year, we meet with 300-500 startups and guess what — I cannot mention names yet — but many of them are doing something very advanced. We are starting to get there.

    But, in terms of ecosystem, we are still like China and India at their early stage. IoT is still sitting at the back seat. Which is why founders in that subsector tend to be more quiet compared to those in e-commerce. They are still hiding in their labs.

    Generally, we need to dream bigger.If you want to create a startup, you should visualise ‘how big will the animal be?’

  • Indonesia Emerging as New Battlefield for ICT Companies

    Indonesia Emerging as New Battlefield for ICT Companies

    Korean mobile companies are making inroads into the Indonesian market one after another. The Korean mobile industry anticipate that Indonesia will rise as a new mobile market since the nation has the world’s fourth largest population and its many islands gave rise to the creation of a mobile service-friendly culture.

    According to the Ministry of Science, ICT and Future Planning on Nov. 19, the number of mobile service subscribers stood at 303.69 million as of the end of 2013. This figure was up 7.3 percent from a year before. Its penetration rate was staying at 121.5 percent. The Asian Mobile Consumer Report says that about 15 percent of all of Indonesia’s mobile service users were using two or more cell phones as of Sept. 2013.

    The report added that 24 percent of them were using smartphones, so the penetration rate of smartphones is expected to rise. Two Korean internet business leaders –- Naver and Kakao – began to preempt the Indonesian mobile platform while focusing on messenger services since Indonesia has a mobile market with great growth potential. In particular, the nation is planning to transform its 2G mobile telecommunication infrastructure into 4G long-term revolution (LTE) before hosting the Asian Games in 2018.

    At the moment, the 2G service accounts for 75% of the mobile service infrastructure in Indonesia. With the opening of a big mobile market momentum, Korean mobile messengers began to enter the market ahead of other foreign companies.

    Naver is ranked second in the Indonesian messenger market after its global messenger “Line’ took the Indonesian market in 2012. The number of monthly average users of Line grew to 26 million in the first quarter of this year from eight million in the first quarter of last year.

    Kakao is spurring its expansion in the Indonesian market by taking over assets of Indonesian SNS Path and Path Talk for 22 billion won. Path is the third biggest SNS after Facebook and Instagram in Indonesia. Its monthly average users add up to ten million. Three years ago, Kakao Talk made a foray into Indonesia and has been inking 18 million downloads. The company is aiming at taking Indonesia as a springboard to the global market by expanding synergies with Path.

    Pantech is planning all-around strategies to invade the Indonesian mobile market such as smartphones, communication equipment and the internet of things (IoT). The company already announced its plan to take Indonesia as a toehold for its revival when it exchanged hands. First of all, Pantech is planning to export a total of 300,000 units of mid- to low-priced smartphones to Indonesia within the second half of next year. It is said that the company will produce the products in the OEM system at factories in Southeast Asian countries for price competitiveness.

  • What Are The Key Drivers Of Growth For Estee Lauder?

    What Are The Key Drivers Of Growth For Estee Lauder?

    Focus on the online sales channel, digital initiatives, and revival of its travel retail channel, will be the key drivers for Estee Lauder‘s (NYSE:EL)  growth in the future.  While travel retail showed tremendous growth in 2014, the slowdown in China and natural calamities had a negative impact in 2015.  Estee Lauder feels this setback is temporary and we believe new product launches and initiatives in this segment will boost its revival, and will be a key driver of growth for the company. With booming e-commerce and mobile internet penetration, we believe focus on online sales will be another driver of growth for the company, especially in emerging economies such as China.

    Revival Of The Travel Retail Channel

    In the fiscal year 2014, Travel Retail was one of the highest growth channels for Estee Lauder contributing to 13% of its product distribution. Global Airport retailing information reveals that by 2016, airport retail spending will be $23.2 billion for Asia Pacific, whereas for the Americas and Europe the figures will be $10.1 billion and $12.4 billion. Estee Lauder is leveraging this trend primarily to capture the Asian market. In May 2014, the company launched a flagship boutique at the Detroit Metro Airport, a primary gateway to Asia, via Delta Airlines. This boutique offers a collection of all its luxury brands, High-Touch services, along with other facilities such as a first-class lounge area, free Wi-Fi, and updated information on the flights. Growth in the travel retail channel slowed down in Q4 2015 due to the macroeconomic slowdown in China and spread of MERS virus in Korea, but the company believes this setback is temporary. It is continuing to emphasize  skincare, its most profitable product category, to boost travel retail sales. Estee Lauder recently launched a vast array of products under several brands including Clinique, Bobbi Brown, Jo Malone, Tom Ford, and M.A.C., at the Tax-Free World Association (TFWA) Exhibition, held at Cannes in October. The products include face contouring, eye makeup, lipstick, serums, treatment creams, and fragrances. These new products will be available across Estee Lauder’s travel retail channel. [].We believe revival of the travel retail channel will be a key driver of Estee Lauder’s revenues in the future.

    Focus on Online Channels And Digital Initiatives

    The shift towards online shopping is evident from the tremendous growth in e-commerce.  New York based research agency, L2 ThinkTank.com found that while the global beauty industry grew at 6% in 2013, sales through the e-commerce channel witnessed a 29.1% growth during the same period. To leverage this trend, Estee Lauder is selling 14 of its brands directly to consumers online through approximately 120 of its own e-commerce and mobile commerce sites.  The company also launched  “Forecast,” a mobile application under its Clinique brand, which provides weather information and skin care tips based on weather conditions.  To expand in the Chinese market, Clinique opened its  flagship store on Alibaba’s Tmall. According to the National Bureau of Statistics cited in Statista, the online transaction value of cosmetics retailing in China is forecast to grow by 123% in 2015. Given the market potential, we believe Estee Lauder’s focus on online sales and digital initiatives, around the use of social media and mobile apps for promotion, will be key drivers of its revenue in the future.

     

  • Asia’s new shopping hotspots (and their must-have products)

    Asia’s new shopping hotspots (and their must-have products)

    Cashed-up Asian shoppers are switching their retail allegiances from long-time favorites Hong Kong and Singapore, and it’s not just for a change of scenery.

    Japan, South Korea and Taiwan are the new regional hotspots for selective shoppers, experts say, because they offer a mix of attractive exchange rates and must-have products.

    The Americas and Europe are still the world’s two largest luxury hubs, with 34 and 33 percent of the market respectively, according to the Altagamma 2015 Worldwide Markets Monitor report by Bain & Company. The report calculates market-share based on the value of the luxury goods purchased.

    Asia holds 28 per cent of the global personal luxury goods market, but the regional distribution is changing.

    “Hong Kong, mainland China and Macau have taken a hit, losing spend to Japan and Europe,” Joel Stephen, senior director and head of retailer representation for Asia at commercial real-estate player CBRE, said, adding that China’s corruption crackdown had also hurt the level of spending.

    “Singapore and Taiwan have also seen a drop in mainland Chinese luxury spend. There is still tourism, but a lot of the HNWI’s [high net worth individuals] from mainland China are traveling further afield.”

    While still largely driven by local shoppers, Taipei’s retail sector got a boost when the government eased visa restrictions and brought in a more consumer-friendly tax system. High-end department stores such as The Breeze Centre in the Taipei 101 area are an example of the stores capitalizing on the trend.

    Shoppers are also taking advantage of the weak yen, which is giving them greater purchasing power in Japan.

    “Chinese and, to a certain extent, Singaporean shoppers prefer to buy luxury goods when travelling where there are more opportunities to purchase them at lower prices,” said Amrita Banta, managing director at luxury-focused adviser Agility Research & Strategy.

    Japan is more popular with mature customers, while younger shoppers are heading to South Korean capital Seoul, Banta said.

    Seoul’s famous TV dramas and K-pop stars have as much, or more, influence on shoppers as traditional advertising campaigns for luxury brands. A recent example: Jimmy Choo shoes worn by Gianna Jun on the TV show “My Love from Another Star” sold out in stores across Asia.

    But Banta said old favorites Hong Kong and Singapore could make a comeback as Europe becomes more expensive, and Asians grow increasingly wealthy.

    “We see the Asia Pacific retail environment becoming increasingly competitive as shoppers will head back into stores in the region due to the price changes in Europe,” Banta says.

    Here’s what cashed-up shoppers are hunting for:

    Sulwhasoo ‘Timetreasure’ Renovating Serum – Seoul

    A price tag of hundreds of dollars for a 50ml bottle of anti-aging serum doesn’t stop moisturizer addicts from flocking to South Korea. Beauty products are a serious business for the country, with the rest of the world taking notice of all the products Korea has to offer.

    Moynat boutique – Hong Kong

    The trunk-maker’s first boutique outside of France sits in Central’s Landmark in a 400-square foot space. One of its prized offerings is the limited edition mini Réjane, a crocodile bag with diamonds on its clasp priced at $124,300.

    Café Dior – Seoul

    This year, the French designer fashion brand set up shop in Gangnam, offering a six-floor experience called House of Dior. The boutique has a glass-walled café upstairs – Café Dior is a culinary representation of the label, with a menu designed by French pastry chef Pierre Hermé.

    Hermès Petit H – Tokyo

    Works created from upcycled parts makes for a unique Hermès piece. Using leathers and textiles known in their products to create something new, Petit H is a pop-up series that lasts only a few weeks in locations such as Japan’s Ginza store, designed to promote recycling in a very high-fashion way – offering bags, wallets, necklaces and even a life-size fawn. This limited time offering drew design fanatics to Tokyo. It’s now set up in London.

    Taipei 101 – Taipei

    What once was the tallest building in the world still has one of the most highly regarded retail spaces on its first five floors. The sixth floor is where the VIP club is, which requires a purchase of over $44,000 in the one day to gain entry. Once in, you’ll have access to a private showroom with the latest in luxury items, private dressing rooms and Chanel spa products.

    Three Michelin stars – Tokyo

    Culinary experiences and Japan go hand-in-hand, from imported chefs such as Joël Robuchon gaining widespread appeal for modern French cuisine, to local chef Yoshihiro Narisawa’s fusion of European cooking styles with local ingredients.

  • Mobile payment race intensifies

    Mobile payment race intensifies

    From smartphone-makers to retail firms, more companies are jumping on the mobile payment bandwagon in a bid to take the initiative for hassle-free digital payments.

    As there is no single dominant player or set of standards yet, the mushrooming mobile payment market is flooded with more than 20 related applications in Korea and may look like a hodgepodge of technologies for some.

    Many industry officials, however, had a positive outlook on the fledgling market, anticipating that the mobile payment systems would further proliferate and one day kill plastic cards.

    “There will be a tenfold increase in the mobile payment services next year, and it is highly likely considering the great growth potential with most websites requiring online payment solutions,” forecast Park So-yeong, chief executive of electronics payment PayGate and chairperson of the Korea Fintech Forum, an organization for the financial technology sector.

    She added that the market needs a set of standards in order to enhance convenience for consumers, and small retailers that may want to adopt the contactless payment technology in the coming years.

    Users try to use mobile payment system Samsung Pay. (Samsung)

    Some said that the growing number of mobile payment apps ironically cause inconvenience due to the lack of standardized technologies, arguing new payment services will come and go until the emergence of strong market leaders.

    “Even Kakao, operator of Korea’s most used mobile messenger, has not been able to rule the mobile payment market,” said an industry source, adding that the firm’s KakaoPay takes up less than 10 percent of payments on Baedal Minjok, the largest food ordering app in Korea.

    Other mobile payment services providers include retail colossuses Shinsegae and Lotte, as also Internet giant Naver and LG Electronics.

    The Korean mobile payment market more than quintupled to 5.7 trillion won ($4.9 billion) in the second quarter this year from 1.1 trillion won in the first quarter of 2013, according to state-run statistics organization Statistics Korea.

    Highly considered as one of the potential market leaders, Samsung is gaining momentum to win the mobile payment race.

    After U.S. tech giant Apple launched contactless mobile payment system Apple Pay last year, Seoul-headquartered Samsung Electronics rolled out its own system in August.

    Despite its somewhat belated start, Samsung Pay has been garnering quite an upbeat response from reviewers and users around the world.

    Accumulative payments crossed the 100 billion won mark with the number of Samsung Pay subscribers exceeding 1 million in two months since its launch in Korea.

    Samsung Pay is often said to have a competitive edge over Apple Pay thanks largely to its better compatibility with the Magnetic Secure Transmission and Near Field Communications technologies.

    Apple Pay allows users to make purchases only with NFC terminals while Samsung Pay is compatible with both magnetic swipe and NFC terminals.

    “Some even say Samsung Pay is the last hope for the Korean tech giant’s mobile business unit, which is being squeezed hard between Apple in the premium handset segment and Chinese upstarts in the low end,” a market official said.

    The tech behemoth is also beefing up partnerships with credit card firms and banks to allow Samsung Pay users to use ATMs with the mobile service.

    Some of the global financial firms include Chase, Visa, American Express and MasterCard.

    Local investment firm BNK Securities anticipated the shipment of Samsung smartphones equipped with Samsung Pay worldwide will reach 22.5 million units — 11.4 million in Asia and 11.1 in North America — next year.

    The increasing popularity of the Samsung payment solution and the expanding mobile payment ecosystem has become a boon for Samsung’s partners and component makers for biometric sensors — used in smartphones to authenticate users.

    Among the beneficiaries are the Korea Information Certificate Authority, which develops user authentication solutions, and Amotech.

    KICA provides fingerprint identification solutions for Samsung Pay and the latter supplies chip modules used for the payment system.

    KICA’s share price doubled to 21,000 won in the two months that Samsung Pay was released, and is now hovering between 12,000 won and 14,000 won.

    It is also expected that Samsung would install its payment solutions in a variety of its products, including smart TVs, mid-range and low-end smartphones, running on the Tizen operating system.

    The Tizen OS has been jointly developed by a group of global tech firms including Intel.

    Fingerprint scanners will be more widely deployed in budget Samsung smartphones to beef up security of the mobile payment app.

  • Singapore businesses embracing analytics tools

    Singapore businesses embracing analytics tools

    According to Gartner, more than 75 percent of companies globally are investing or planning to invest big data in the next two years. In 2015, SAS saw an increased adoption in analytics solutions across various industries – a clear indication that Singaporean businesses are also recognizing the value of analytics in driving business outcomes.

    “We’ve seen an uptake in the adoption of analytics solutions by companies spanning across several verticals, including retail, transport and hospitality. We also see more non-technical employees embracing analytics, and this is largely driven by tools like SAS Visual Analytics, which has interactive, self-serving capabilities to allow anyone to explore and discover insights on their own,” said Francis Fong, Managing Director, SAS.

    Regardless of the size of an organization, its data or the complexity of its services, businesses are now able to take charge of its data quickly and easily. SAS Visual Analytics, uses an interactive interface that works to identify relationships, explore options and uncover hidden opportunities, allowing businesses to make precise decisions faster than ever before.

    Key customer wins in 2015:

    •    Club 21: a global luxury retail company, was looking to get a more holistic understanding of customer spending and shopping behaviors online and offline. With SAS Visual Analytics, they were able to discover insights to move them closer to surfacing omnichannel shopping patterns and merchandising affinity trends. This led to the retail brand integrating their point-of-sale and membership data to gain a more holistic understanding of sales patterns and member performances and habits.

    “The SAS VA tool is new to our organization.  Our goal is to use this tool to enable our teams to move beyond data collection to surface patterns and associations through visualization.  This tool allows our teams to extract insights faster and more strategically because we can finally see and understand data in a way that is custom to our businesses, marketing channels and customer segmentations.” Mei Lee, Senior Vice President, Digital, CRM & e-Commerce.

    •    SMRT: is Singapore’s premier multi-modal land transport operator. Like other large organizations which have a range of business functions and, correspondingly, a number of business units, SMRT had the challenge of collecting data from disparate sources, and synthesizing and analysing it. In 2013, SMRT invested in an Information Fusion capability and SAS Visual Analytics provided the platform through which a strategic dashboard view was built, allowing, among other things, for individual business units and the Group as a whole to track, trend and analyse operational performance.

    Henry Cheng, Head, Information Fusion Center, SMRT, said, “We required a tool that would allow us to have a single dashboard view across the entire Group to guide our decision making, and SAS Visual Analytics was able to provide that. The solution’s easy-to-use, self-service environment has allowed us to run data models across different business units to gain useful insights.”

    •    Far East Hospitality: Singapore’s largest hotels and serviced residences operator, tapped on SAS to help them consolidate and analyze information in a single source. The availability of decision trees and path analyses, in particular, helped Far East Hospitality develop a better data view and make more informed decisions, improving their tracking of flight details and finance data, and strengthening their risk management strategies. Taking into account the higher proportion of nontechnical experts compared to data experts in a typical organization, solutions like SAS Visual Analytics enabled employees to easily grasp the basics on data analytics, with its easy deployment and user friendly interface.

    “There are many strategic and tactical components that goes into a price.  Like most hotels, we have many data variables in our decision making of the price.  It is difficult to pull all this data together, and statistically interpret which factors contribute to success.  We want to become more forward looking, and make this process more intentional and proactive by using tools that can help us visualize the data quickly, and streamline the data access and analysis. We chose SAS Visual Analytics as it fulfilled the requirements: the ability to quickly visually analyse our various data in one single platform, the ability to build analytical models, and the ability to share the analytics and reports in different formats and devices,” Malcolm Leong, Far East Hospitality Management.

  • Echelon Thailand addresses the unique struggles of women in business

    Echelon Thailand addresses the unique struggles of women in business

    It may come as a surprise that Thailand not only boasts one of the world’s largest number of women entrepreneurs. It is also one of the few countries in the world where there are as many female business owners as there are male.

    At Echelon Thailand 2015, we are dedicating a panel solely to female entrepreneurs — their struggles, their drive, their rise in participation in business and why female entrepreneurs are here to stay. The discussion will include, but is not limited to, female entrepreneurship in different cultures around the world, existing policies and their issues and more.

    Araya Noo Hutasuwan is currently Vice President at Ardent Capital, an operator VC based in Bangkok with 15 companies in portfolio across Southeast Asia and Hong Kong. She is focussed on advising current portfolio companies on their business strategies, helping drive subsequent funding rounds and potential M&As, sourcing potential deals, due diligence and making investment recommendations.

    Prior to working at Ardent, Araya co-founded several fashion retail brands with a presence in the US and Thailand, spent time setting up a factory in Myanmar and spent four years in Investment Banking at Phatra Securities with a focus on M&A.

    EDIT_Panel4

    Shannon Kalyanmitr is superwoman: Entrepreneur, women’s advocate, World Connector, Thai-American and Mother of Siamese-Viking Twins. She is also the Founder and Group CMO of MOXY, the shopping destination in Southeast Asia focussed on women.

    Coming from a long line of business development roles from Investment Banking (Lehman Brothers and PwC) to Television and Media (Singha Beer & Building a Digital TV Station from Scratch) – to Social Development (Tsunami Humanitarian work) and now Tech, Shannon has been able to marry the best of all her global experiences into MOXY, along with carrying on her passion for women’s development and entrepreneurship.

    An international marketing and communications professional with over 20 years experience, Pacharee Pantoomano-Pfirsch delivers winning solutions for some of the world’s most influential brands. From brand management to direct marketing to internal communications and community relations, her proven expertise and solid grasp of market communications come together with stellar results for leading-edge marketing strategies for her clients around the globe.

    Today, in addition to serving her clients at Brandnow, she is also the Chairwoman for the Bangkok Now, an organisation she founded in 2003.

    Juliette Gimenez, is highly passionate, a serial entrepreneur and currently Co-founder of Goxip, the mobile-first app that allows users to search, discover and shop fashion by image recognition and celebrity stylefeed. Gimenez has extensive experience in starting up companies and driving multi-million dollars sales growth in e-commerce, particularly from an early stage level onwards in Southeast Asia and Hong Kong at companies such as Cdiscount Thailand and LivingSocial. Previously, she was a VP at ubuyibuy, which got acquired by Groupon.

    Linh Thai is Founder and CEO of Stitch Appeal, an online fashion brand that creates custom tailored women’s fashion.

    Prior to this, she was a Director at DFJ VinaCapital, a leading venture capital fund based in Ho Chi Minh City. Before that, she was an Investment Banking Associate at Bank of America Securities in New York City, where she worked on equity, debt and M&A deals. Her experiences also include roles in marketing and operations at Internet startups in the US.

  • Ecommerce offers a cheaper and faster way to market in China

    Ecommerce offers a cheaper and faster way to market in China

    Todd Fryhover, president of the Washington Apple Commission, joined China’s Singles Day celebration for the first time, hoping to sell 1.2m apples from Washington State in 24 hours.

    To help him out was the marketing juggernaut of Alibaba, the Chinese ecommerce company, where Washington apples are sold through branded website Tmall, one of a number of foreign food brands that are finding a ready market in China amid health scares over domestic produce.

    Singles Day, which began as a student celebration of singledom in the early 1990s, was reinvented by Alibaba in 2009 as a mass festival of conspicuous consumption, and more and more foreign companies are joining, hoping to use the holiday as a marketing exercise to get their brands out to the Chinese public.

    Mr Fryhover wants everyone in China to have “a repeatable, wonderful experience on Washington apples”. China is number six on the list of 60 countries that import apples from Washington’s 450 growers, but he thinks it will be number one by next year.

    He may be right. By midnight, as a video billboard in Alibaba’s Beijing auditorium showed, $14.3bn of merchandise had been bought via Alibaba’s platforms in 24 hours.

    Western companies are increasingly turning to online commerce, a cheaper and faster way to get to market than setting up store chains or penetrating the opaque retail market in China.

    To do this they are learning to love China’s internet conglomerates, informally known as BAT — Baidu, the search company, Alibaba and Tencent, the social media and gaming company. The three have begun to dominate economic life in China with amazing speed, doing everything from retail to finance to transportation, and moving into healthcare and even agriculture.

    In just a few years, the BAT conglomerates has been able to monopolise every aspect of daily life that could conceivably be put on the web and sold to the public. “They all want to own the customer, they want to be with them every second of the day, when they watch a video, chat to their friends, buy groceries, or go to a restaurant” says Chris DeAngelis from the Beijing-based Alliance Development Group.

    China’s internet giants are becoming what analyst Anne Stevenson-Yang of J Capital Research calls “tech Keiretsu”, referring to the national champions that dominated the Japanese economy in the 20th century with interests in multiple industries. “When companies are this big in China, the difference between public and private is not that important,” she says. “For all intents and purposes these companies have become the ministry of the internet.”

    But fierce competition means foreign sellers have many options for courting Chinese middle class buyers who are looking to buy imported goods abroad due to concerns about home-made counterfeit goods.

    Alibaba offers a number of options for sellers, including the free eBay-like platform Taobao, which is basically an online flea market. Most big brands set up on Tmall, which resembles an Amazon market place, a platform where big brands can set up stores and have more control over their sales and supply chains. Tmall’s first store from a fortune 500 company was Procter & Gamble, launched in 2008, which has grown 100 times since then, according to P&G vice-president Jasmine Xu.

    This year on Singles Day Ms Xu says that P&G made its first Rmb100m ($16m) in six minutes, compared with eight hours last year. “[Tmall] is a key platform to drive brand building in addition to sales,” she says.

    Some merchants have been loath to list on Alibaba, however. It gets vast online traffic, but the pressure to discount and the prevalence of fakes means it is “hard to protect a brand on Tmall,” says one consultant.

    But there are plenty of alternatives. JD.com, Alibaba’s rival, which is increasing its market share, has attracted a number of brands to its online store.

    China in many ways is more switched on to the internet than other countries which have had it for longer– Jim James

    Meanwhile, waiting in the wings is Tencent’s social media app WeChat, which has more than 500m users and is growing rapidly. Fearful of flooding the app with advertising and products, Tencent has been holding back on “monetising” WeChat.

    But advertising on WeChat is just one way of getting attention, and many companies have found they can win huge marketing success simply by using WeChat for word-of-mouth marketing.

    Fans of English country living, for example, can join a WeChat group devoted to Aga cookers, the iconic English oven brand, watch videos about cooking on an Aga, swap messages about it, and, thanks to the software which embeds the store in the chatroom, even buy one on impulse.

    “WeChat is unusually versatile; its better than Facebook, better than WhatsApp for marketing,” says Jim James, head of EastWest Public Relations in Beijing, which designed the Aga WeChat group.

    “China in many ways is more switched on to the internet than other countries which have had it for longer.”

  • Warehouse Managers Must Get Mobile

    Warehouse Managers Must Get Mobile

    Today’s warehouse managers face many challenges, not the least of which are meeting higher service levels and operational cost constraints. In this environment, it’s more important than ever that managers spend time on the floor, managing associates to drive optimal levels of productivity and monitoring work throughout the warehouse. This represents a difficult balancing act, however, as distribution centre managers and supervisors traditionally lack access to critical real-time data anywhere but the office.

    With this issue in mind, Manhattan Associates recently conducted a survey of supply chain executives and managers to better understand their struggle—and how mobile tools may be able to alleviate the challenges. The findings underscore that legacy, PC-based labour management systems (LMS) are effectively chaining managers to their desks, and preventing them from spending valuable time with associates. For example, 63 percent of respondents said lack of access to a computer keeps them from the warehouse floor, and 58 percent pointed to the need to review reports as another barrier against more associate engagement.

    Numerous studies have documented that employees are more productive when given frequent, real-time feedback on their performance, and how their work aligns with broader company goals. As such, it’s essential that distribution centre managers break out of the back-office for good, or risk poor morale and warehouse throughput.

    According to Manhattan Associates’ survey, increased mobility could address these challenges. Thirty-three percent of respondents said a mobile solution would increase their floor time by 50 percent or more, and an additional 28 percent indicated that mobile would free up at least 25 percent more time for on-site activities. In keeping with these findings, respondents reported that greater engagement is the chief benefit of providing managers with mobile tools. Additional advantages include:

    • Increased oversight (42 percent)
    • Real-time data (33 percent)
    • Supervisor productivity (21 percent)
    • Exception management (19 percent)

    In addition to recognising the benefits of mobility, our survey results indicate that warehouse managers are well on their way to implementing these solutions. Eighty-one percent of respondents said they either currently have mobile capabilities for managers, or have plans to deploy them in the near-term. Among the most desired functions in a mobile app were:

    • Employee productivity (85 percent)
    • Work management (85 percent)
    • Exception management (66 percent)
    • Labour requirements (49 percent)

    It’s evident that mobile solutions enable warehouse managers to spend much-needed time engaging with employees without sacrificing reporting requirements or other equally critical responsibilities.

    To help distribution managers and staff alike break away from their desktops and be more engaged and effective in the warehouse, Manhattan Associates launched its own Mobile Distribution Management solution earlier this year. The Manhattan solution provides everything warehouse managers need to interact and effect change among employees and execute tasks out on the warehouse floor. Combining data and functionality from Manhattan’s Warehouse Management and Labour Management solutions, Mobile Distribution Management allows warehouse and distribution managers to:

    • Systematically record active interactions with employees, including observations and performance measurements
    • Review work in the warehouse by wave, job function and task/activity
    • Put a task on hold, re-prioritise a task, assign a task to an employee or release a set of tasks to be completed
    • Monitor, plan and forecast work in real-time
    • Track the status for a particular customer, including order look-ups and wave progress

    While Labour Management and Warehouse Management Solutions have long been integrated, sharing performance data in person with employees was limited to static reports run at infrequent intervals. Mobile management, however, improves the manager/employee interaction by connecting both parties to performance reports in real time.

    Intelligent decision

    With mobile solutions, managers can also update information while an operational change is being made, and potentially reverse changes quickly to avoid work stoppages. Examples of active capabilities include task reprioritisation, release and reassignment. Outbound tasks in particular have the potential to benefit the most due to their high complexity and rapid pace.

    Supervisors can send real-time metrics (e.g., picking and packing rates by team or individual members; rankings; actual versus goal performance) via display screens and desktop dashboards to employees on the warehouse floor. This enables them to make better decisions in real time. The data also can be pushed to mobile devices, enabling management to monitor activity from any location or through pre-set, threshold alert notifications.

    What is the market’s understanding of mobile supply chain management?

    Engagement and communication techniques in the warehouse were traditionally centred around decidedly low-tech items, like bulletin boards and newsletters. With the increasing adoption of technology in the warehouse, big screen TVs for example, companies are introducing some great new ways to facilitate informational flow with minimal work. Large screens broadcast details like top performers on the floor and the most current KPIs, so that everyone is on the same page. This enables managers to make information available anywhere and anytime while integrating both quantitative and qualitative data.

    With mobile phones and tablets entering the scene also and showing up on the warehouse floor, mobility is having a huge impact on warehouse management. With a continuous drive for greater efficiency, improved productivity and enhanced service levels by companies in the Southeast Asia region, mobile is becoming a major focus for supply chain infrastructure upgrades and we expect this to remain the case for many years to come.

     

  • Indonesia through the eyes of local startups

    Indonesia through the eyes of local startups

    11 and 12 November were two days of highly intensive activity at the Tech in Asia Jakarta 2015 held at Balai Kartini. From my sources at TIA, it was a whopping 4123 attendees, the largest turnout for a TIA event.

    The sheer crowd was a testament to Indonesia’s importance as a major South-East Asian consumer market. 142 of 184 startups hail from the host nation Indonesia at the Bootstrap Alley, the startup exhibition area.

    I have read many news sources about the Indonesian market, spoken to many people involved in Indonesian businesses, but my access to the local startup community has been limited, until now.

    tech in asia jakarta 2015 bootstrap alley featured image

    Intrigued to know Indonesia through the eyes of local startups, I told my investment team to spread out and take different alleys and speak to as many Indonesian startups as possible to learn more about the scene.

    At the end of the trip, we compared our notes and came up with some interesting observations. Due to the sensitivities of information being shared here, all names have been removed.

    New tech, same old way of business

    You would have expected a cultural shift of Indonesians adopting mobile technology as a new way of doing business, but the business scene is still dominated by very powerful and connected people who dictate the speed and direction of the technological adoption.

    “These powerful people have many companies under the guise of proxies and the company ownership structure is complex. Information is very scarce on who is the ultimate owner. Many of these companies own approved permits for various projects, which are awarded to them from their connections to the government. You have to work with these companies in order to gain access to a larger slice of the market,” says a startup founder working on an ecommerce platform selling a restricted good.

    For my business, I need to do four things to get it moving. Funding my operations is one. Next is to get access to a company which owns a permit to import these restricted goods. In this industry, there are only eight such companies holding permits. I have access to two.”

    “Supplies and funding,” I thought to myself. What else can there be? “Next, I have to be on very good terms with the police, to ensure they won’t cause trouble for me. There is no bribing, just ensure we are in communication and having good relations. Next is the mafia, to ensure they also won’t cause trouble for me,” he explains. What a balancing act he has to do. He didn’t mention about whether he needs to pay off the mafia though.

    He explains that Indonesia is a place where you have to identify first the right people in power and to connect with them to gain access to a certain market. He claims his market is niche, but I feel that he is hiding the real huge potential of the market. By having two of eight suppliers working with him, he is effectively addressing an estimated 25% market share of this vertical, assuming equal market share per supplier.

    Complimentary, not disruptive

    Another founder, who reads many articles on US entrepreneurs, says the US founders tend to claim their business model is disruptive and changes the way people work and live.

    “But here in Indonesia, remember that the economy is run by many powerful people. If you mention the word disruptive technologies, these people will regard you as a threat and go all out to block you. Rather, always say you are here to compliment their existing businesses and help them earn more money. Never go head-on with the incumbents. You might just get yourself ‘disrupted’,” he gives a shiver for dramatization.

    Mobile ecommerce is a huge size available for all

    Despite the dominant ecommerce players in Indonesia, the sheer market size makes it available to all, even the small-time businesses. An Indonesian investor who invests in hyper-local startups mentions:

    “Take Jakarta for example, there are many hyper-local ecommerce startups serving neighbourhoods. With the population density so high in the cities, many small-time startups are able to tap into these places and build their customer base and grow from there. It is not a nationwide expansion like the large players, but you can earn a decent living serving a small area. And don’t bother to build an ecommerce website. Everyone is on a smartphone. Going mobile is the easiest to start.”

    But for B2B businesses, it seems that web is still the way to go. I spoke with another startup that is an Alibaba me-too, focusing on very specific categories like fashion clothing. They connect wholesalers to distributors in Indonesia via their website.

    Despite being only in the market for a few months, they have already transacted a good number of B2B deals online. But given that the founder’s family is already in the trade, it might be their own existing orders going online that is creating the traction.

    Split-founder personalities

    Given space constraints, only 90 or so startups could exhibit on the first day, and the remainder presented on the second day. But it was an irony that the founders on day one came back on day two as founders of another startup!

    It is apparent in the Indonesian culture not to dabble in one startup but rather to try as many. “The opportunities are just so many that it would be stupid not to have multiple businesses,” quips a founder.

    He himself has four startups, working with various partners across the three cities of Jakarta, Bandung and Surabaya. “We have friends everywhere who have good connections for different businesses. We have our own connections and thus connecting all the dots from various cities to build a business together makes sense.”

    When I asked him how he manages his time, he smiles and says, “I wear different hats, just sometimes, I have to put on all hats. It is fun!”

    Ending thoughts

    As I took off from Soekarno-Hatta airport, I have been left with an impression that Indonesia’s tech startups are still basic in nature and not cutting edge. Founders have shared that the consumer market is still very much in its infancy stages and focused on bread and butter issues.

    However, there is no need for disruptive technologies yet as enabling technologies like transportation, ecommerce and communications need to be established first. Having strong existing cultural business norms of working with the bourgeoisie shows that running a big business requires a long-term plan.

    Further adding to the complication is the government’s many 87 regulations that prevent effective foreign investments and the creation of startups. But for those who are willing to slog it out, Indonesia’s huge population size is one attraction with its might and potential that entrepreneurs cannot ignore.

  • Asia luxury retail revival ahead

    Asia luxury retail revival ahead

    While Asia Pacific may be experiencing a slowdown in luxury retailing right now, three key trends will fuel a renaissance in coming years.

    That’s the core finding of a research report by property specialist CBRE, The Future of Luxury Retail in Asia Pacific: New Demand Drivers and Shifting Occupier Requirements, which promises property owners can expect “a solid new stimulus for demand” in the coming years.

    Most major luxury retailers are now well established in Asia Pacific – their with China and Hong Kong penetrations already at 89 per cent and 81 per cent, respectively. And after several years of rapid expansion, these markets are approaching saturation point.

    “Accounting for one-third of personal luxury goods sales globally in 2014, Asia Pacific is a key region for international luxury brands with key markets including China, Hong Kong, Japan, Singapore, South Korea and Taiwan. However, the high growth period for luxury retailers in the region is gradually coming to an end,” commented Dr Henry Chin, head of research, CBRE Asia Pacific.

    ”Over-saturation, surging operational costs and weaker retail sales – especially in Hong Kong due to the slowing mainland China economy – have prompted retailers to consolidate their existing store networks and slow their rate of entry into new markets focusing on operational efficiency,” said Chin.

    But here is where there is hope: CBRE has identified three emerging trends which will partially offset some of the negative effects arising from the slowdown and compensate for the loss of demand.

    • The Emergence of Affordable Luxury

    Often referred to as bridge brands, affordable luxury retailers – for example Michael Kors – provide high quality branded goods at a lower price tag than top-tier luxury retailers. Several top-tier luxury brands are already so well established in the region that they are at risk of overexposure, a trend which is prompting many consumers to look for differentiation.

    • Inclusion of F&B

    Recent years have seen luxury brands begin to expand beyond their core fashion businesses into the F&B sector – examples include 1921 Gucci in Shanghai iAPM and Cafe Dior by Pierre Hermé on the top floor of Christian Dior’s flagship store in Seoul – transitioning their brand from being totally fashion-oriented to more lifestyle-driven. Including an F&B component in stores enables luxury retailers to provide their consumers with a more complete experience in which they can shop, relax and socialise.

    • Growth of Luxury Childrenswear

    As of 2014, Asia Pacific was home to 807 million people aged below 14, representing more than 20 per cent of the total population, offering an enormous opportunity for growth in this segment. The emergence of luxury childrenswear brands has been welcomed by landlords as many of them are looking to expand their offering into toys, bookstores and playrooms in order to attract and retain foot traffic amid competition from online retail.

    “With the momentum behind these trends, this will account for a bigger slice of leasing demand for prime retail space,” says Joel Stephen, senior director, head of retailer representation, CBRE Asia.

    “Retailers and landlords can benefit from the projected growth in these market segments.”

    Changes in Luxury Retailers’ Real Estate Requirements

    The emerging retail trends – combined with changing tourism patterns and the ongoing slowdown of the region’s luxury retail sector – are already impacting luxury retailers’ real estate requirements, resulting in new, and in some cases, weaker demand for different types of retail property.

    “The change in shopping behavior among mainland Chinese tourists – who are demonstrating a stronger preference for shopping in Europe and Japan – has prompted luxury brands to review their expansion and rationalise their real estate portfolios, strategies and requirements. Since most luxury retailers remain cautious towards expansion, especially in China, retailers are now focusing on consolidating their footprint into a solid network of stores in high quality locations, as opposed to expanding rapidly and opening many smaller stores, in order to extract the highest value from their sales network,” says Chin.

    Some of the key trends that CBRE have identified include:

    • Weaker interest in department stores despite continued interest in prime locations;
    • Stronger focus on flagship stores, displaying more product lines, thus making a stronger statement in the market;
    • Increased popularity in short-term opportunities for brands to set up exhibitions, pop-up and concept stores, and workshops, to generate greater consumer awareness;
    • Affordable luxury brands continuing to drive demand, encouraging more shopping center landlords to offer them anchor tenant space; and
    • More interest in upper floor retail space, but limited to top-tier malls and driven by F&B and childrenswear segments.

    Says Stephen: “Driven by the emergence of affluent consumers and the rise of the number of millionaires in the region, Asia Pacific will remain a hugely important market for international luxury brands with new names entering the region.

    “Even though leasing demand will slow to a more sustainable level, prime space in core areas will continue to be keenly sought after.”

    Penetration of luxury retailers into Asia-Pacific.

  • Four trends to shape food retailing future

    Four trends to shape food retailing future

    “Genuine revolutions in food retailing are rare, but we’re living through one now.”

    That’s the view of Joanne Denney-Finch, CEO of the food and grocery researcher IGD, speaking who addressed last week’s Asia Pacific Retailers Convention and Exhibition (APRCE) conference in Manila.

    She believes the drivers of change are based on increasing population growth, especially in Asia and Africa, and urbanisation as well as rapid technological changes, and outlined four big trends that will shape the future of global food retailing:

    • The reinvention of stores.
    • The link between the online and offline world.
    • New ways of marketing.
    • Changing supply chains.

    “Change is sweeping through every part of international food retailing. The revolution is so big and powerful, that no-one knows exactly what the future will look like,” said Denney-Finch.

    “While this is creating the most challenging conditions for food retailers I’ve ever seen, there are many opportunities too. Retailers around the world are responding creatively and starting to build a new future.”

    On the reinvention of stores, Denney-Finch, said: “Technology is making a big difference to help improve the customer experience. Robots are starting to appear in stores around the world. In some Japanese shops, they meet and greet shoppers and give them advice on where to find products, while in Spain they are being used to give nutrition advice. They are a novelty at the moment, but robots will be a common sight in the future and we can expect them to patrol stores, looking for gaps on shelves and replenishing them.

    “Beyond technology, retailers are finding various ways to make shopping easier, more exciting and informative. Various British retailers have set up convenience sections within their largest stores where everyday items like bread and milk are grouped together to save time for top-up shoppers. Thailand’s Central Food Group has an expert Australian butcher to give shoppers advice on international product that they’re not familiar with.”

    On the merger of the online and offline worlds, Denney-Finch said: “Many retailers are viewing online and offline as two complementary ways to help shoppers buy whatever they want, anytime, anywhere and in the most convenient way to them. It’s what’s known as ‘omnichannel retailing’ and gives retailers the opportunity to regain loyalty. Phone apps are one way to link the online and offline worlds. People using the Walmart app, for example, shop there twice as often and buy 40 per cent more than other shoppers. Alliances are another way to utilise omnichannel shopping. The Chinese online platform Yihaodian, now owned by Walmart, has partnered with Family Mart stores to offer product collection.”

    On new ways of marketing, Denney-Finch, said: “In my view the most important role of marketing is to help build consumer trust and that requires a commitment to transparency and traceability. Stew Leonards stores have a live ‘web cam’ where you can watch their suppliers fishing. Some companies are also using computer game techniques to make promotions more exciting. In Singapore, McDonald’s provides an alarm clock phone app that wakes people up and delivers a new surprise each morning such as a discount or a game.”

    On changing supplying chains, Denney-Finch, said: “For many years, big food retailers were able to buy everything their customers wanted, at short notice and at a good price. However, with demand growing so quickly, as well as climate change and many other factors there’s more uncertainty about food supplies. So many retailers are thinking further ahead and building longer-term relationships with suppliers. For instance, Tesco has agreed to buy the whole banana crop every year from some regions of South America.”

    To conclude, Denney-Finch, said: shopper expectations will continue to rise in the future.

    “In response, retailing will become more flexible, personalised and exciting than ever before. New solutions are emerging every day from every part of the world. So the challenge for retailers is not just to reach the world class standards of today, but to set and deliver new standards for tomorrow.

    “Retailing in Asia is exceptionally dynamic, building on all the energy that comes naturally from such fast growing economies. So I confidentially predict that many Asian companies will be amongst the leaders of the retail revolution for the next 20 years and beyond.”