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  • PLDT, Globe agree to cut interconnection rates

    PLDT, Globe agree to cut interconnection rates

    The Philippines’ two major telecom operators – PLDT and Globe Telecom – have agreed to reduce their voice interconnection rates to bring down the price of domestic mobile and fixed line calls in the country.

    Department of Information and Communications Technology (DICT) Secretary Rodolfo Salalima and National Telecommunications Commissioner (NTC) Gamaliel Cordoba witnessed the signing of the memorandum of agreement.

    The NTC said the decision to lower interconnection rates is in line with efforts to reduce communications costs, maintain and foster fair competition in the telecommunications industry as well as to make mobile voice service more affordable to the public.

    Under the agreement, the two companies committed to taking steps to lower retail rates for voice and to maintain a grade of service (GOS) in interconnection. This means ensuring that there is sufficient telecommunications circuits or routes for efficient transmission of calls.

    “We are confident that a reduction in the cost of interconnection for voice calls will eventually redound to a more robust economy, providing our customers with an affordable and easily accessible way of communication,” Globe chief technology and information officer Gil Genio said.

    The reduction of interconnection rates, however, will not affect international calls.

    The NTC has earlier issued a memorandum circular mandating a 38% reduction in the interconnection rate between the two networks, which should take effect not later than January 1.

    “We are supporting government’s efforts to bring down the cost of telecom services in the country. This agreement will translate in different ways to more affordable voice call rates for our subscribers,” PLDT director and head of regulatory affairs and policy office Ray C. Espinosa said.

    The interconnection rate for voice calls between the telco firms will be reduced to 2.5 pesos ($0.12) per minute across-the-board starting January 1, 2017. At present, mobile to mobile and landline to mobile voice calls cost 4 pesos per minute while mobile to landline voice calls cost 3 pesos per minute.

    PLDT Chief Revenue Officer Eric Alberto added that improving voice services will provide customers more options to connect with their family and friends, at home or on the go.

    The memorandum of understanding will serve as a guide to amending previous interconnection agreements.

    Earlier, the two telecommunication companies called on the government to streamline government policies and regulations to speed up the deployment of broadband infrastructure in the country.

    “We are calling for a national consensus to harmonize policies and regulations in support of building digital data infrastructure. We also hope to deepen understanding of our people, at the community level, how vital telecoms infrastructure are to our lives. When these facilities are damaged or stolen, this harms our welfare as surely as when roads and bridges are washed away,” said PLDT and Smart Communications Senior Vice President for Network Services Mario G. Tamayo in a speech at a summit hosted by the DICT.

    In anticipation of the continued growth of data traffic and digital services in the country, PLDT said it plans to increase the capacity of its data infrastructure by ten times come 2020.

    For 2016 alone, PLDT has allocated 48 billion pesos ($963.5 million) capital expenditure to fortify and expand its fixed and wireless networks, including the utilization of its recently acquired 700-MHz spectrum.

    Meanwhile, Globe Telecom emphasized the need for more cell sites in the country taking into account dramatic rise in mobile data demand. Genio pointed out the company’s quarterly data traffic increased exponentially to 98 petabytes in the third quarter of the year from only 9 petabytes in the first quarter of 2013 amid growing customer propensity for multi-media content.

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  • Hard Liquor Helps E-Commerce Titans Take China’s Consumer Pulse

    Hard Liquor Helps E-Commerce Titans Take China’s Consumer Pulse

    Predicting the changing tastes of China’s consumers is becoming easier thanks to the country’s e-commerce giants, who monitor sales that can exceed US$17 billion in a single day.

    The country’s second-biggest web-based retail platform, JD.com Inc, already has dozens of new indexes tracking sales of products from liquor to appliances. Larger rival Alibaba Group Holding Ltd plans to publish its own spending gauges in coming months.

    Their data is vital to large global companies like Starbucks Corp and Wal-Mart Stores Inc that are looking for insights into what’s hot among China’s billion-plus consumers. Online shopping indexes reflect millions of transactions daily, whereas traditional consumer surveys can only test a tiny sample.

    “The ability to analyse and understand trends in online consumption has never been more important or more valuable,” said James Huang, big-data analytics director for the finance unit of Beijing-based JD.

  • Garuda opens Surabaya-Madinah flight route

    Garuda opens Surabaya-Madinah flight route

    Garuda Indonesia opened the Surabaya-Madina flight route on Tuesday as part of its efforts to expand its flight network in the Middle East.

    The national flag carrier will serve the flight route on Tuesdays using an Airbus A330-300 with a seating capacity of 360, all of them economic class, Garuda Cargo Director Sigit Muhartono said in a written statement released on Tuesday.

    “As the flag carrier of the country with the largest Muslim population in the world, Garuda Indonesia will always try to facilitate Muslims wishing to perform religious services in the Holy Land. With the new flight route inaugurated today, we hope the people of East Java and surrounding areas will find it easy and comfortable to travel to the Saudi main cities of Jeddah and Madinah by direct flight,” he added.

    The Surabaya-Madinah flight route will accommodate not only people who want to travel to the Holy Land for umroh (minor hajj) but also businessmen, tourists and migrant Indonesian workers.

    “With the Surabaya-Madina flight route, Garuda Indonesia offers umroh pilgrims an alternative flight route that enables them to opt to depart from Surabaya to Madina and return to Surabaya from Jeddah,” he explained.

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  • Despite recent setbacks, LeEco has big retail ambitions in China

    Despite recent setbacks, LeEco has big retail ambitions in China

    LeEco may have had some high-profile setbacks in recent weeks, with news coming from the company that it had overextended itself financially in some areas, but the Chinese electronics maker and service provider is still doing ambitious things in retail, starting with a new flagship store it opened at its Beijing headquarters earlier this year.

    We toured the store, and spoke to LeEco VP of retail Steve Zhao about some of the inspiration for the retail space and its intended purpose. A significant portion of Chinese electronics shoppers do their buying online, so the focus is on building a store that provides experiences and examples of how LeEco devices and services might work for a consumer in their daily lives, rather than on stocking shelves with as much inventory as possible.

    From flooring and furniture materials to layout and staff, the LeEco store feels like an Apple Store, which isn’t surprising given its aims and intent. But this is also only the first iteration of what’s to come; Zhao told me that their first major retail location in a shopping centre will dwarf the current flagship in size and scope, with a launch planned for sometime later in 2017.

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  • Smart Axiata deploys SMS spam filtering suite

    Smart Axiata deploys SMS spam filtering suite

    Cambodia’s Smart Axiata announced it has deployed an SMS spam filtering and A2P SMS monetization platform from 365squared for its more than 8 million customers.

    The operator is using the 365secure service to continuously monitor and filer SMS traffic from any source on a round-the-clock basis. The service is designed to detect and block fraudulent SMS messages delivered through gray routes.

    Smart will also be able to use the service’s proprietary 365analytics software to conduct detailed traffic analysis and reporting. The implementation was conducted by 365squared last month.

    “Spam messages are disliked by everyone. The partnership with 365squared stands on our desire to strengthen customer relationships based on trust,” Smart Axiata CEO Thomas Hundt said.

    “By filtering intrusive and uninvited messages we provide to our customers peace of mind and therewith step up our customer experience efforts further.”

    Smart Axiata launched LTE services in January 2014, and has now expanded the network to cover 25 key provincial capitals as well as other key cities. The company’s combined 2G, 2.5G, 3G, 3.75G and 4G mobile network covers more than 98% of the Cambodian population.

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  • AirAsia starts flying Philippines-Taiwan

    AirAsia starts flying Philippines-Taiwan

    The low-cost carrier’s Philippine subsidiary started flying direct from Manila to Taipei on 21 November, and then on 25 November it commenced flights between Cebu and Taipei.

    “We are aiming to go further across Asia by strengthening AirAsia’s presence in Taiwan. Today heralds… brighter and much closer ties between two countries to improve trade and tourism,” said Philippines AirAsia’s CEO, Dexter Comendador. He added that the new services would cater to “travellers, overseas Filipino workers and Taiwanese tourists”.

    The new Manila-Taipei route will operate daily with late night flights, while the Cebu-Taipei service will run three times a week (Wednesdays, Fridays and Sundays) with early morning departures from the Philippines.

    The AirAsia Group also operates direct flight to Taipei from Kuala Lumpur and Kota Kinabalu.

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  • Tesla Motors Opens First Showroom In South Korea’s Largest Mall

    Tesla Motors Opens First Showroom In South Korea’s Largest Mall

    Teslarati reported on November 28 that Tesla Motors is all-set to open its first showroom inside South Korea’s largest shopping mall, the Starfield Hanam Complex. The store is expected to open today. However, the news didn’t do much to the stock as TSLA declined 0.41% during after-hours trading on Monday.

    The company’s latest store in Gyeonggi Province would be its first retail outlet in South Korea. With its entry, Tesla may provide tough competition to the region’s largest automaker; Hyundai Motor. The latter is also expected to open a store in Starfield. Moreover, the company is expected to launch its competitively priced Electric Vehicle (EV) before the year-end.

    Moreover, executives of Starfield Hanam indicated that they were notified about the store’s opening date. However, they believe that the date may be delayed, depending on the company’s preparations.

    Teslarati reported: “While the Silicon Valley-based automaker takes aim at expanding its retail presence in South Korea, the company is also busy with laying the ground work for the build out of its Supercharger network across the country.” The company is also reportedly viewing its plans of building supercharging stations around Seoul.

    The report further mentioned that TSLA has also invested in constructing another showroom within the country’s high-end Gangnam district. The district is also considered as the Rodeo Drive of South Korea. Earlier in September, the company had signed a $439,059 lease to get its hands on a three-story upscale commercial building in the district. The store is expected to be surrounded by Ferrari, Lamborghini, and Bentley showrooms. Moreover, neighboring stores will also include Cartier, Dior, and Hermes.

    Wall Street analysts have assigned a PT of $225.13 with a 14.8% upside over the last closing price. Analysts’ ratings include 3 Buy, 1 Overweight, 9 Hold, two Underweight, and four Sell.

  • Spa Ceylon opens nine POS operations in Asia

    Spa Ceylon opens nine POS operations in Asia

    Sri Lanka’s Spa Ceylon Ayurveda retail and spa company has opened nine new points of sale in Asia, including business with standalones, kiosks and airlines since it exhibited at last May’s Tax Free Asia Pacific show and it is expecting five more new presences in early 2017.

    Spa Ceylon says this progress follows the debut presence of its range of body, bath, beauty, aroma and wellness products to travel retail, which has been built on ‘success across ten countries with 55 boutiques and spas already in operation in downtown retail’.

    SPECIAL TRAVEL RETAIL OFFERINGS

    Commenting on the offering, company management said: “The all natural range of products offer a fresh new aspect to travel retail through Ayurveda-based formulae, using exotic herbs, fruits and minerals from their island home of Ceylon.

    Spa Ceyon has a strong presence at Bandaranaike International Airport in Colombo, Sri Lanka.

    KLI Airport 2

    Spa Ceylon at Kuala Lumpur International Airport in Malaysia.

    AMBITIOUS EXPANSION PLANS

    “The vibrant packaging in jewel-hued bottles and gift boxes adorned with colourful traditional palace art makes the brand stand out and has soon become a popular gift purchase among travellers.”

    By contrast, the impulse offering comprises the Spa Ceylon Palace Art range which is a collection of lip balms, hand creams, soaps, solid perfumes, coconut butters and balms with rich tropical scents made with fruit butters, herbs and oils.The company describes the core of its travel retail offering based on wellness and impulse. It adds that the wellness ranges such as ‘Sleep, De Stress and Detox’ offer an array of products suited for travel weariness and wellness needs.

    The Spa Ceylon store in the prestigious Royal Court, in Colombo, Sri Lanka.

    GROWING TR FOOTPRINT IN JAPAN

    Spa Ceylon’s management says it has continued to grow its global foot print within travel retail and downtown retail with the opening of its first retail store in Tokyo in October 2016, followed by a 3,000sq ft flagship store in Tokyo’s premium shopping district in the Ginza in November 2016.

    A further 10 locations are planned in the next calendar year in Japan and Spa Ceylon also intends to expand rapidly over the next 24 months, reaching a milestone of 100 stores internationally by 2018, across 20 countries.

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  • Global Blue collaborates on Chinese VAT refund scheme

    Global Blue collaborates on Chinese VAT refund scheme

    Tax-free specialist Global Blue has partnered with the Bank of China to launch a VAT refund service to overseas tourists in Shanghai.

    Travellers in Shanghai are now able to save 9% on their purchases as China has introduced its first tax-free shopping scheme for foreign visitors. The scheme will be among the first of its kind in mainland China, allowing eligible travellers to reclaim the VAT imposed by the Chinese government, when making purchases within the country.

    For travellers, eligibility for VAT refunds will be based on a set of simple criteria. These include possession of a non-Chinese passport (or specified ID from Hong Kong, Macau and Taiwan), receipt of purchase showing spend of over RMB500 ($72) in one store on the same day, and proof that the traveller has remained in mainland China for no more than 183 consecutive days.

    If these eligibility criteria are met, merchants simply have to provide a VAT invoice, then issue the shopper with a Tax Refund Application form provided by the Chinese Government, which includes the description of purchased goods and the traveller’s details.

    Global Blue will work with Bank of China to encourage local retailers to sign up to the scheme. It will also provide licensed retailers with ongoing training to sales staff and consult on the processes surrounding the issuing and completion of VAT refunds.

    Already almost 200 stores in Shanghai have already signed up to the tax-free shopping scheme, including major department stores [e.g. Takashimaya, Pacific, Parkson and Bailian (Group) Department Stores], luxury brands (e.g. Chanel, Hermes, Tiffany and Louis Vuitton), high street names (e.g. Zara, Bershka and Marks & Spencer) and local retailers (e.g. Silk King, Lao Feng Xiang Jewellery and Chow Tai Fook Jewellery).

    Global Blue CEO Jacques Stern commented: “We are excited about launching this partnership with Bank of China, a true market leader in the international banking space. The VAT refund service represents a great opportunity for merchants in Shanghai to attract high-spending international travellers and encourage higher spend in-store. For visitors to the city, this scheme will bring obvious benefits, allowing them to shop and spend with leading Chinese merchants for less.”

    Bank of China vice president Mr. Wang added: “This is a very exciting period for Shanghai’s retail sector and we are confident the introduction of these services will be a powerful tool in helping businesses connect with valuable international shoppers. Global Blue’s experience of promoting and supporting Tax Free services around the world make it a valuable partner and we look forward to a long and happy working relationship.”

    In addition to merchant support, Global Blue will manage marketing activities inside and outside of China to increase traveller awareness of the VAT refund scheme. Promotional channels will include Global Blue’s website, app and a wide range of traveller focused collateral including SHOP Maps and point-of-sale materials. The partnership will also see Global Blue collaborating closely with local governments’ tourism departments.

    In addition to VAT refund services in Shanghai, Global Blue has also named Bank of China as a banking refund partner for returning Chinese shoppers across the country. Bank of China will operate refund counters from 10 branches throughout China, making it easier for Chinese consumers to claim overseas refunds back home.

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  • Hong Kong consumers oppose spectrum fee hike

    Hong Kong consumers oppose spectrum fee hike

    PCCW’s HKT is opposing a proposal by the SAR government to raise the spectrum utilization fee for all mobile operators, publishing research indicating that a wide majority of consumers oppose the suggestion.

    Research commissioned by HKT and conducted by Policy 21 suggests that 72.8% of consumers believe a fee increase that the operator said would be likely in the event the government raises spectrum prices would be unacceptable.

    Hong Kong mobile users currently pay a fee of HK$18 per month covering contributions towards mobile license, administration and MTR and tunnels expansion costs, and operators are likely to raise this fee if their spectrum costs increase.

    Of the remaining 17.4% of respondents who consider a fee increase acceptable, 84.7% would only accept an increase of HK$10 or less per month.

    The government’s proposed fee increase would be implemented on the expiry of existing 900-MHz and 1800-MHz licenses, and would affect 40% of the total amount of spectrum currently assigned to mobile operators.

    HKT presented the findings yesterday at an industry forum organized by the Hong Kong General Chamber of Commerce. Consultancy firm Network Strategies also used the event to unveil a study into the optimal price of spectrum in Hong Kong.

    “In comparison with international benchmarks, the reference prices are very high. Use of these reference prices for setting reserve or fixed prices may lead to artificially high SUFs which may have a distortionary effect on the market,” Network Strategies director and founder Dr Suella Hansen said at the forum.

    “With efficient spectrum pricing and sufficient spectrum allocation, incumbent operators may minimize costs to produce retail services efficiently, continue to invest and develop innovative services and products, all of which promote social efficiency. However, consumer welfare will not be promoted if the price of spectrum does not reflect its true market value.”

  • Sa Sa International sees fall in profits amid drop in tourism

    Sa Sa International sees fall in profits amid drop in tourism

    In the period ending September 30th 2016, Sa Sa International’s turnover reached HK$3.63 bn (€442.2 mn), a 4% drop from HK$3.78 bn (€460.5 mn) compared to last year’s results.

    Sa Sa totalled profits of HK$96 mn (€11.7mn), indicating a 37.3% drop from last year’s HK$153 mn (€18.6 mn) during the same period.

    Purchasing patterns

    Despite a continued reduction in tourist footfall, the total number of transactions by local and mainland Chinese consumers increased by 0.2% and 4.4% respectively.

    However, the average sales value per transaction saw a slump, decreasing by 6.3% for purchases made by local consumers and 6.6% for tourists. This was reflected in the leading cosmetics company’s retail sales in Hong Kong and Macau, which fell by 3.6% from HK$3 bn (€365.5 mn) to HK$2.9 bn (€353.3 mn).

    The Hong Kong market has witnessed changing consumer attitudes towards product selection. As the Hong Kong dollar strengthened and the Chinese Yuan deteriorated, these have also been cited as having a detrimental impact on Sa Sa’s interim results.

    To reflect the evolving marketplace, Sa Sa focused on adapting to consumer demands by speeding up product launches, combatting lengthy product cycles with shorter alternatives, reducing price points of on-trend lines and creating innovative marketing displays.

    The shopping experience

    Sa Sa is currently concentrating on increasing sales by bringing these efficient product cycles to market through facilitated CRM processes, online marketing and online-to-offline (O2O development.)

    The O2O landscape has been developing rapidly throughout APAC in recent years. As a result, Sa Sa hopes to maximise this opportunity to improve the shopping experience for its customers through creating online operations for digital marketing that connect with its physical stores.

    “We…remain resolute in our belief that we can further strengthen our competitiveness in the coming years and convert difficult challenges into golden opportunities, such as those offered by O2O, by changing consumer behaviour and by the growing affluence of the less developed regions of Mainland China” said Dr Simon Kwok, BBS, JP, Chairman and CEO of the Group.

    This year, the cosmetics brand launched a new mobile app to reflect the market’s preference for mobile over desktop usage. Sa Sa collaborated with online retailer Kaola to complement this release and existing partnerships with T-Mall, JD.com and suning.com.

    It used these channels to promote its range of Korean products, which it produced to reflect the popularity of the K-beauty and K-pop influences trending through APAC and the wider markets. As a result, Sa Sa saw its sales increase by 51.5% in Hong Kong and Macau, with its own brands and exclusively distributed products dropping by 2.5% from 41.3% to 38.8%.

    Consumer support

    On 21st November, two days before the interim report was released, Sa Sa International announced it had been presented the award at the “World’s Excellent Brands Awards 2016-2017” by China Media Network (CMN).

    The prestigious accolades are given to those brands that demonstrate an awareness, recognition, leadership and representativeness of tourism-related global brands by an evaluation committee and selection of tourists.

    Following public voting and evaluation, Sa Sa received the “World’s Excellent Brands Awards” and has previously been awarded the “Most Popular Hong Kong and Macau Brand” by CMN.

  • Esprit India to sell on Myntra

    Esprit India to sell on Myntra

    Esprit India has secured an exclusive online partnership with online fashion retailer Myntra.

    Esprit will sell its men’s and women’s casual wear range on the platform, and will launch its latest collection exclusively online on Myntra. The all new winter wear collection by Esprit aspires to revive 90s fashion and sports luxe in a selection of 405 different styles.

    Gunjan Soni, CMO and head of international brands business with Myntra, says Esprit is a truly international fashion brand with global appeal and a brand ethos that exemplifies comfortable fashion.

    “It gives us great pride to forge an exclusive association with Esprit as part of our focused endeavor in making Myntra the de-facto destination for International fashion in India.”

    Guillaume Thery, GM Asia-Pacific with Esprit, added: “Esprit has built strong brand equity among shoppers in India over the years. With the exponential growth of the online shopping medium and the expansive market of India, it was imperative that we work with the segment leader in taking our brand development to the next level. Myntra was the obvious partner of choice given their understanding of the online fashion landscape and their ability to partner and develop strategies that complement our business imperatives for the region.”

    Myntra has emerged as India’s leading fashion e-tailer and home to the largest selection of international premium fashion brands, including Nike, Adidas, Puma, Levis, Wrangler, Arrow, Jealous 21, Diesel, CAT, Harley Davidson, Ferrari, Timberland, US Polo, FabIndia and Biba.

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  • Bluebell Group invests in designer startup

    Bluebell Group invests in designer startup

    Bluebell Group has invested in a new luggage design house Ookonn, which takes inspiration from a hat box, selling direct to consumers online.

    Ookon is the brainchild of Anson Shum, who conceived a style and design based on an old-fashioned, round hat box.

    At the time, Shum was working in a marketing and communications role with Bluebell Group.

    “When I resigned last year, I told the company of my plan to start my own label,” Shum said in an interview.

    ookonn-lugguage

    “They were so nice to me, and asked if there was any way we could work together. I showed them my business plan, and they offered to coach and mentor me.

    “Eventually nearing the end of my employment period, I did a formal presentation in front of all the shareholders. And the week after, I was told that Bluebell wanted to invest in Ookonn. It was a surreal moment. I think they decided to invest because of the product, the business model, and obviously the fact I have built a good relationship with them.”

    Shum and his business partners sell the Ookonn bags online, where they cost upwards of HK$2280 for basic models.

    “Online business is more relevant to my target audience. Ookonn is a lifestyle brand targeting millennials. While we get customers from different age groups, the feeling and foundation of the brand is for a younger audience in their early 20s to early 30s. While online is important, it is only one part of the business model, since we are launching in Hong Kong and China. But for other markets, perhaps we can collaborate with several bricks-and-mortar multi label stores,” said Shum.

    He describes his case designs as “a bit more playful” than most common luggage ranges.

    ookonn-lugguage-1

    “I’ve been working in fashion and luxury for 12 years, and have had plenty of opportunities to travel. But while I can find a lot of beautiful options for clothes and accessories, there are not that many for luggage. Most luggage brands in the market are business oriented. So I wanted to see if I could create a luxury brand that would generate excitement.”

    The bags come with a variety of options for handles, covers and belts and can be customised with the buyer’s chosen monogram.

    The bags come from Transport Safety Authority locks, wheels which turn a full 360 degrees and a light polycarbonate shell.

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  • Cafe de Coral grows revenue, profit, outlets

    Cafe de Coral grows revenue, profit, outlets

    Total revenue for the half-year to the end of September rose by 4.3 per cent to HK$3.89 billion (US$501.5 million) for restaurant and catering group Cafe de Coral Holdings.

    Net profit, at HK$232 million, was up 11.8 per cent, while profit attributable to shareholders rose similarly to HK$3.89 billion, according to its interim results.

    With stronger momentum in the fast-casual and casual-dining sector, the group says its quick-service restaurant (QSR) and institutional catering business continued to achieve encouraging results and steer further expansion.
    “Mainland China business persistently improves its profit margin with a lower break-even point, which has laid a solid platform for expansion,” says the group. “The positive results demonstrate not only the capable stewardship of our new management team, but also the successful completion of the group’s succession plan.”

    “Encouraging” revenue and same-store sales growth resulted in a robust and stable performance for the group’s (QSR) and institutional catering business.

    In China, revenue stabilised for its fast-food business, thanks to updated menus.

    Overall, the group’s QSR and institutional catering business in Hong Kong reported solid revenue gains, up 7.7 per cent. Same-store sales under the Cafe de Coral fast-food and Super Super Congee & Noodles grew 5 and 4 per cent respectively. As of September 30 the group had 288 QSR and institutional catering outlets, including 160 Cafe de Corals, 47 Super Super Congee & Noodles shops and 79 Asia Pacific Catering outlets.

    Strategic tenancies

    To speed up its expansion of the Cafe de Coral network, the group took advantage of the softer leasing market to take up tenancies at strategic and prime locations. Four outlets were added, with 11 more set to open. Seven more Super Super Congee & Noodles shops were added, with eight openings scheduled.

    Asia Pacific Catering renewed all major contracts while Luncheon Star continues to be the leading provider for schools.

    For its fast-casual and casual-dining sectors, the group saw 14.4 per cent revenue growth. Its catering-inspired Shanghai Lao Lao brand has evolved into a popular chain with eight outlets, says the group. Two of the outlets opened during the six months, with four more scheduled.

    Encouraged, the group says it will aim to scale up Mixian Sense to provide another lucrative revenue stream.

    Meanwhile, it is rejuvenating its Western-style brands, The Spaghetti House and Oliver’s Super Sandwiches. Decors and menus are being revamped.

    Launched last year, its Japanese and Korean-style franchise restaurants are still in the investment stage.

    Non-performing outlets in eastern and southern China have been closed, plus the management team has been localised as well as menus being revamped.

    Same-store sales from the fast-food business grew by 1.2 per cent with “remarkable profit improvement” on the mainland even after excluding the effect of new VAT rules and despite the segment revenue falling by 16.3 per cent. This was mainly a result of the strategic closure of non-performing stores.

    “While the imminent outlook is less than promising, the group remains confident its businesses will continue to fare reasonably well. Fortunately, our core QSR and institutional-catering segments, in particular, are relatively resilient to downturns.”

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  • Under Armour Korea flagships planned

    Under Armour Korea flagships planned

    Under Armour Korea plans to open flagship stores to make the most of its growing popularity in the Asian market.

    The US-headquartered sports brand says it has opened an office in South Korea to operate its business directly from next year, after taking over distribution from local partner Hyosung Galaxia.

    “Under Armour will strengthen its marketing, distribution and retail efforts, providing Korean consumers with the best brand and shopping experience,” said David Song, country manager of Under Armour Korea.

    “We will open our flagship store in southern Seoul in January. The brand will also continue to connect with athletes directly and promote sports, fitness and healthy living through its connected fitness platform, which is the world’s largest digital health and fitness community.”

    Song said Korea is a “pivotal component” in the company’s international growth plan.

    “Through design, innovation and our Under Armour connected fitness platform, we look forward to forging long-term relationships directly with athletes at every level in the country.”

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