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  • Eslite Spectrum to continue China expansion

    Eslite Spectrum to continue China expansion

    Taiwan’s Eslite Spectrum, which runs bookstores, shopping malls and restaurants, plans to continue adding stores in the greater China market.

    President Wu Wen Chieh told the group’s annual meeting that after extending its reach into Hong Kong in 2012, the company had transformed into a cultural creative brand.

    Wu said the company has 46 outlets in Taiwan, Hong Kong and China through teaming up with cultural creative brands, and plans to enter Shanghai by opening a store this year. Its first China outlet launched in Suzhou in November. Another store is planned for Shenzhen in 2018.

    Eslite has three stores in Hong Kong, and Wu said that the company is studying the feasibility of opening more stores there.

    However, Eslite has closed two stores in Taipei and will shut down two others. Wu said the company is determined to open new stores in Taiwan this year.

    Chairman Wu Ching-yu told shareholders that the company has set its sights beyond the greater China market, with the aim of opening stores in Japan and the US.

    He said two property developers in Japan have made contact with Eslite, but Eslite will expand at a stable pace globally.

    Eslite last year posted NT$3.82 billion (US$118 million) in sales, up 9 per cent from a year earlier, and raked in NT$412 million in net profit, up 11.6 per cent.

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  • Singapore’s MyRepublic denies reports of funding woes

    Singapore’s MyRepublic denies reports of funding woes

    MyRepublic’s CEO has rejected reports that the company is having difficulty raising funds required to make a bid to become Singapore’s fourth mobile operator, calling the claim “a bold-faced lie.”

    Malcolm Rodrigues told us that the company has already lined up $130 million worth of the $250 million in funding needed to roll out a network.

    Rodrigues was responding to a report stating that the company’s latest financial statement casts doubts onto whether the operator can afford to become a mobile operator.

    The report alleged that it had received a copy of the unlisted operator’s balance sheet that shows that MyRepublic lost S$9.36 million ($6.96 million) in Singapore last year, and has so far raised no funds required for the rollout.

    But Rodrigues denied this claim, asserting that the company has a loan facility for half the required amount, and expects DBS Group and Goldman Sachs to help the operator finish its fundraising for the mobile bid by the end of July.

    MyRepublic will be competing against Consistel, through subsidiary OMGTel, which has reportedly lined up at least S400 million worth of the S$1 billion in funding it plans to commit if it wins the mobile license.

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  • Google, RingCentral partner to take on Microsoft

    Google, RingCentral partner to take on Microsoft

    The search giant Google and the cloud communications specialist RingCentral are joining forces to serve apps and UC to the enterprise.

    They’ve got a new offering called RingCentral Office Google Edition in the form of a plug-in in the Google Apps marketplace. It is intended to bring together RingCentral’s communications platform with Google Apps and related technologies like Google Hangouts.

    The idea is to be able to take on the likes of Microsoft, which itself moving to better integrate Office 365 and Skype.

    While the big tech companies have been very good at the cloud lately, they haven’t done that much in the cloud communications segment of the space, at least organically. Hence, despite the many infrastructure projects that Google for Google to seek out partners to better address the enterprise opportunity seems like a natural move.

    For Google it’s just another small piece of what has become a very big jigsaw puzzle. But it could be a big deal for RingCentral, whose quarterly revenues of $86 million would be more sensitive to the success of this new application package.

    RingCentral is one of the new generation of UC specialists that are finally shaking up the industry the way we all thought VoIP would do 10 years ago.

     

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  • Thailand will tighten call drop regulations

    Thailand will tighten call drop regulations

    Thai regulator NBTC will introduce stricter standards governing the quality of mobile signals in an effort to address a growing number of complaints related to dropped calls.

    The NBTC will amend current regulations, which require operators not to exceed a dropped call rate of 15% across all calls, to instead require operators to maintain this rate in each of Thailand’s service areas.

    The new regulations, which are expected to come into effect in September, have been implemented in response to the fact that in more busy service areas with congested traffic dropped call rates are much higher than the average.

    In addition to the new regulation, the NBTC has given five mobile operators – AIS, Dtac, True Move, CAT Telecom and TOT – 15 days to resolve their dropped call problems.

    According to the report as of May there were 994 complaints involving dropped calls from AIS, 497 from Dtac, 386 from True Move, 32 from CAT and seven from TOT. Complaints are picking up now operators are focusing on customer acquisition strategies to maximize their 4G investments.

    Indian regulator Trai is also focusing heavily on the issue of call drops.

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  • 3 Hong Kong launches prepaid plans for Apple SIM

    3 Hong Kong launches prepaid plans for Apple SIM

    Hong Kong mobile operator 3 has announced its support for Apple SIM, introducing a line of short-term LTE data plans that can be chosen and activated from compatible iPads.

    The operator has introduced day pass plans offering two days of connectivity for HK$38 ($4.90), seven days for HK$88 and 14 days for HK$168. These plans have fair use limits of 2.5GB, 3.5GB and 5GB respectively.

    Customers will also be able to choose monthly data pass plans for HK$168 for 1GB, HK$248 for 2GB or HK$298 for 3GB.

    Customers on Apple SIM LTE data plans will be charged a HK$2 administration fee every 30 days.

    Global  Apple SIM partner GigSky has meanwhile announced it had expanded its cellular data plans for Apple SIM to cover over 149 countries, up from just over 90. The prepaid packages are now available in all the top travel destinations, the company said.

    GigSky data plans are available in APAC markets including Hong Kong, Korea, Thailand, Australia, Pakistan, Indonesia, the Philippines, Singapore, Sri Lanka and Japan. The plans typically range from US$15 for 100MB of data over three days to $50 for 1GB of data over 30 days.

    Apple SIM is supported by the iPad Pro, iPad Air 2, iPad mini 3 and iPad mini 4.

  • Xiaomi taps China Unicom to boost offline sales

    Xiaomi taps China Unicom to boost offline sales

    Chinese smartphone maker Xiaomi has teamed up with the country’s second largest mobile carrier, China Unicom, to expand its sales through offline retailing channels.

    The partnership with Unicom signals a move to a more conventional sales operation for Xiaomi, whose sales have been heavily relied on internet channels.

    Xiaomi launched a new customized 4G smartphone Redmi 3X for Unicom, as part of a strategic alliance the pair announced last Wednesday.

    The Redmi 3X smartphone, powered by 1.1GHz octa-core Qualcomm Snapdragon 430 processor and a 4100mAh non removable battery, will go on sale for 899 yuan ($136) through Unicom’s 30,000 own retail stores and more than 230,000 retailing partners.

    Xiaomi CEO and founder Lei Jun said so far more than two-thirds of the company’s smartphones have been sold through e-commerce platforms and the company’s official website.

    “The proportion of online sales is too big,” Lei said. “To maintain the rapid growth we have seen in the past four years, expanding offline retailing channels becomes the key.”

    Xiaomi said earlier this year it will open 200 to 300 of its own retail stores to bolster sales.

    Xiaomi and Unicom will also expand their cooperation beyond handsets to a wide range of products, such as Xiaomi TV, routers, wearable devices and air purifiers.

    China Unicom deputy general manager Xiong Yu said all of these Xiaomi products will be available at the operator’s offline retail stores across the country.

    The move fits into the operator’s broad efforts to transform its abundant bricks-and-mortar assets into a big retailing platform of various electronic products, Xiong added.

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  • Aeon Indonesia dumps Ministop c-store partner

    Aeon Indonesia dumps Ministop c-store partner

    Aeon Indonesia has ended its partnership with its local partner in the Ministop c-store chain.

    The move will result in Aeon exiting the market temporarily while it seeks a new business partner.

    According to local media reports, Aeon teamed with Bahagia Niaga Lestari (BNL) in 2012. But after four years, the joint venture has managed to open just six stores.

    Aeon has meanwhile been expanding its Ministop network across Vietnam, the Philippines and South Korea.

    Aeon says it is committed to Indonesia and hopes to form a new joint venture.

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  • Bidding starts for McDonald’s China business

    Bidding starts for McDonald’s China business

    Beijing Tourism Group, ChemChina and Sanpower are among bidders for McDonald’s China restaurants and the 20-year master franchise covering China and Hong Kong.

    The deal is said to be worth about US$3 billion, and bids close on Monday.

    Restrictions on the franchise agreement have discouraged such buyers as private equity firms, but others have entered the auction, reports CNBC.

    McDonald’s China partner Beijing Capital Agribusiness Group has been reported to be among companies preparing first-round bids ahead of the deadline, but an official has said the company is not participating in the bidding.

    Illinois-based McDonald’s has hired Morgan Stanley to run the sale of about 2800 restaurants in China, Hong Kong and South Korea. The South Korea sale is being run separately.

    McDonald’s announced in March that it was reorganising in Asia by bringing in partners to own restaurants within the franchise business. Competitor Yum Brands, which has the KFC and Pizza Hut chains, is also restructuring in China.

    Domestic rivals are becoming more competitive, and the two international fast-food giants have had food-safety scares.

    “Given the difficulties Western chains have had recently with public perception, local players have become a serious competitive threat,” says Euromonitor International foodservice analyst Elizabeth Friend.

    Meanwhile, McDonald’s will draw up a shortlist of bidders for the next round in the coming weeks.

    McDonald’s China and Hong Kong business posted about $200 million in earnings in its latest financial year.

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  • Uniqlo US quietly closing stores

    Uniqlo US quietly closing stores

    Tokyo-based fast-fashion brand Uniqlo US, a 1700-store global chain with 43 US outlets, has been retrenching amid slowing sales.

    It has quietly closed five stores in the US since January, all in suburban shopping malls.

    “The US is very important to the company,” says spokesman Aldo Liguori. “We are focussing on large cities where we can open large stores.”

    As well as urban markets, Uniqlo is beefing up its customer service, says Liguori.

    Chief executive Tadashi Yanai last year said brand penetration in big cities such as New York, San Francisco and Chicago was good, “but not in the suburbs”.

    Owned by Fast Retailing, which has seven clothing brands, Uniqlo said last year that it would be scaling back its US expansion after opening 17 stores in 2014. It opened four stores last year, and has announced that three stores will be opened this year.

    Meanwhile, the brand may face competition from Irish-based discounter Primark, which is expanding in the US.

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  • South Korea to Launch Nationwide Shopping Festival in Fall

    South Korea to Launch Nationwide Shopping Festival in Fall

    South Korea will hold a nationwide shopping festival involving major retailers, manufacturers and traditional markets in the fall to draw foreign travelers and jack up lackluster domestic consumption, the government said Tuesday. 

    The Ministry of Trade, Industry and Energy and the Ministry of Culture, Sports and Tourism jointly formed a task force to create the massive shopping campaign, called “Korea Sale FESTA,” scheduled from Sept. 29 to Oct. 31. 

    “The government consulted with major manufacturers in consumer electronics, clothing, cosmetics and food industries, and they were positive about offering discounts on various items,” the ministries said in a release. “As Korea Sale FESTA is prepared well in advance, more manufacturers are expected to participate in this year’s event.” 

    The ministries separately held discount events last year as part of efforts to prop up the national economy hit hard by the Middle East Respiratory Syndrome outbreak last May.

    The culture ministry initiated a shopping festival called “Korea Grand Sale” from early September to mid-October during which retailers knocked down prices to woo back both domestic consumers and Chinese travelers during the long-haul national holiday. 

    Less than a month later, the trade ministry held another nationwide shopping campaign, called “Korea’s Black Friday,” during the first two weeks of October, to stimulate stagnant domestic consumption. 

    As last year’s discount campaign was criticized for hasty preparations and limited participation by retailers, the government formed a joint task force with industry officials this year to negotiate with retailers and manufacturers and offer shoppers better deals. 

    The culture ministry plans to provide support by hosting cultural and entertainment events with K-pop stars to attract foreign travelers, while the trade ministry will push for trade fairs and exhibitions to create a synergy effect. 

    The government will start promotion at home and abroad starting from late July and work with provincial governments and related organizations to link with local festivals during the period. 

    “We will combine shopping, tourism and culture to promote Korean culture and create a festive mood to bring in domestic and international consumers,” the ministries said.

     

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  • Lindt collaborates with DFS Group for HKIA store concept

    Lindt collaborates with DFS Group for HKIA store concept

    Following the success of TFWA Asia Pacific Exhibition & Conference in Singapore, Lindt has opened a shop-in-shop concept with DFS Group at DFS, Hong Kong International Airport.

    The store features the latest Lindt pick and mix in Asia, which for the first time will take the form of an eye-catching wall feature. With clear visibility from across the terminal, the stunning new unit will attract footfall into the shop. The pick and mix concept enables travellers to discover a wide assortment of Lindor chocolate truffles and create their own ideal mix. Eminently suitable for gifting, customers will be able to choose from a range of gift cards to complement their selection and personalise their pick and mix bags. The gift cards are themed to highlight the Hong Kong destination and seasonal events.

    The shop will also feature a bespoke space created for the Lindt Master Chocolatiers where live demonstrations will showcase the Lindt tradition of craftsmanship, artistry and innovation in the later part of 2016.

    Commenting on the partnership, DFS Group’s Senior Vice President Food and Gifts, Thierry Canivet, said, ‘DFS continuously strives to create shopping experiences that surprise and delight our customers and we are proud to partner with Lindt to do just that with the new shop-in-shop at DFS, Hong Kong International Airport. This engaging approach to the food and gifts segment will provide travellers with a lasting memory of their travels and we look forward to what we are confident will be a successful new take on this exciting category.’

    Peter Zehnder, head of the Lindt & Sprüngli global duty free division, said that the Asian market clearly presents the travel retail sector with considerable opportunities, and this new venture was the first of a series of innovative initiatives to capitalise on this potential. ‘We are delighted to have launched our latest shop-in-shop concept in Asia and believe that there is a huge opportunity for Lindt in the region. Our well-known brand of premium chocolate offers a wide range of bestseller products, a continual flow of innovations and strong activations beyond ordinary price-offs to drive category sales.’

  • Wal-Mart’s deal with China’s JD.com may be copied by others

    Wal-Mart’s deal with China’s JD.com may be copied by others

    When the world’s largest retailer makes a move, other retailers pay attention. Wal-Mart Stores Inc.’s decision to enter into a strategic alliance with the second largest Chinese e-commerce retailer, JD.com Inc., may inspire others to seek out local partnerships to make inroads in this major market.

    “For some in the industry, this will be a ‘Good Housekeeping’ seal of approval,” said Christian Magoon, chief executive officer of Amplify Investments, which recently launched the Amplify Online Retail ETF IBUY, -0.52% .

    “If Wal-Mart is comfortable and, with their scale, couldn’t crack the Chinese market on their own, it will be a case study for others. It could be a bellwether moment to see if this strategic partnership is the best model.”

    Wal-Mart announced Monday that it will sell its Yihaodian website to JD.com and receive about 5% of the company’s total shares outstanding. Wal-Mart WMT, +0.51% will open a flagship Sam’s Club China store on JD.com JD, +0.33%  and leverage the online retailer’s supply chain assets.

    Wal-Mart has had problems growing in the Chinese market, amid food regulatory and food safety controversies.

    “Wal-Mart was trying to go on its own and I think this is kind of a throwing in the towel,” Magoon said. At the same time, it is an acknowledgment that Wal-Mart needs to grow in China to be in a good position for the future. “If Wal-Mart is going to compete, they’re going to have to go big,” Magoon said.

    To compete in China, retailers have to go online, said Charlie O’Shea, Moody’s lead retail analyst.

    “JD.com has a solid platform online in China, and we know China’s online business is expanding rapidly because they’re not at the level of brick-and-mortar like the U.S.,” said O’Shea.

    JD.com also has a proprietary system that allows them to control the “last mile” with customers, or the final leg of the delivery process that gets merchandise into the buyer’s hands. O’Shea describes the last mile as “critical.”

    Analysts at UBS view the deal as a “good move on many levels,” though Wal-Mart’s share price may not reflect that.

    “While this deal isn’t a needle mover for Wal-Mart shares, it shows the retailer can be shrewd when the opportunity presents itself,” the bank wrote in a Monday note.

    UBS believes there are more opportunities like this one in the retailer’s portfolio, which currently spans 28 countries.

    “Wal-Mart has identified China as its highest potential international growth market,” they wrote. “We believe it remains fully committed to this geography, despite the sale.”

    UBS rates Wal-Mart stock at neutral with a price target of $67.

    Wal-Mart shares were up 0.4% in Tuesday trading, and up 16.5% for the year so far. JD.com shares are down 0.4% in Tuesday trading, and down 35% for the year so far. The S&P 500 is up 2.1% for the year to date.

     

  • Are These Retail REITs Trading For Less Than What They’re Worth?

    Are These Retail REITs Trading For Less Than What They’re Worth?

    The price-to-book (PB) ratio is a popular way to value a real estate investment trust (REIT).

    The P/B ratio is calculated by dividing the market capitalisation of a REIT with its book value, or net asset value. Theoretically, having a P/B ratio that is less than 1 means that a REIT is trading for less than what it’s worth – an investor who buys the REIT could liquidate all its assets, settle all its obligations, and still end up with a profit.

    A recent report indicated that the average P/B ratio for Singapore’s REIT universe (the local stock market has 27 REITs and six stapled trusts) was 0.9. The list of 33 trusts included eight Retail REITs, as defined by the Global Industry Classification Standard.

    Here’re five quick highlights from the report on the eight Retail REITs (figures as of 8 June 2016, unless otherwise stated):

    1. Lippo Malls Indonesia Retail Trust (SGX: D5IU) has a P/B ratio of 0.9. The REIT is home to 19 retail malls and seven retail spaces in Indonesia and offers a distribution yield of 9.9%. While the REIT’s yield looks high, it’s worth noting that its total returns over the past three years have been a negative 15%.
    2. CapitaLand Retail China Trust (SGX: AU8U) also has a P/B ratio of 0.9. The REIT offers a distribution yield of 6.7% and has recorded a total return of 19.1% over the past three years. It is focused on the ownership of retail malls in China and currently has stakes in 10 shopping malls across six Chinese cities.
    3. Meanwhile, Starhill Global Real Estate Investment Trust (SGX: P40U) is yet another REIT with a P/B ratio of 0.9. The REIT has stakes in Wisma Atria and Ngee Ann City in Singapore. In all, the REIT owns commercial as well as retail properties in four other countries, namely Australia, China, Japan, and Malaysia. Over the past three years, Starhill Global REIT has delivered total returns of 4.9%. The REIT offers a 6.5% distribution yield.
    4. Not all retail REITs are trading below their book values. SPH REIT (SGX: SK6U), whose portfolio only has two properties right now (the retail malls Paragon and Clementi Mall in Singapore), trades at its book value. The REIT offers a distribution yield of 6.0% and has recorded a negative total return of 5.8% over the past year.
    5. CapitaLand Mall Trust (SGX: C38U) is one REIT that has a P/B ratio of over 1 – more specifically, the REIT has a P/B ratio of 1.1. CapitaLand Mall Trust, which owns 16 retail malls here, is the Singapore stock market’s first and oldest REIT. It offers a 5.3% distribution yield and has total returns of 14% over the past three year.

    The P/B ratio represents a starting point for investors who are looking for REITs that may be undervalued. Valuation, though, has to be complemented by understanding a REIT’s asset quality, the performance of the REIT’s portfolio in the past, and its future prospects, among other important things.

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  • Aeon Vietnam opening second HCMC mall

    Aeon Vietnam opening second HCMC mall

    Aeon Vietnam will inaugurate its second shopping centre in Ho Chi Minh City, Aeon Mall Binh Tan, on July 1.

    Larger than Aeon Mall Tan Phu Celadon, which opened in early 2014, it has an total investment exceeding US$120 million and covers 4.6 ha. at the Hi-Tech Healthcare Park of Hoa Lam Shangri-La. It will have four floors and a basement, with a parking lot designed to accommodate 1500 cars and 4000 motorbikes at any one time.

    About 80 per cent of goods on sale at the mall, Aeon’s fourth in the country, will be made in Vietnam with the rest imported from Japan.

    A feature will be a photo-taking area for children and families, plus painting classes for children.

    Aeon targets 20 malls across Vietnam by 2020. The Japanese retailer owns 49 per cent of the Citimart store chain and 30 per cent of another local chain, Fivimart, and also runs Ministop convenience stores.

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  • Singapore’s SMI eyes expansion into retail, F&B in Myanmar

    Singapore’s SMI eyes expansion into retail, F&B in Myanmar

    SGX Mainboard-listed Singapore Myanmar Investco (SMI) – engaged in consumer products and services in Myanmar – will be looking at investing in the retail and food & beverage vertical in the next three years.

    Late last year, SMI inked an agreement with Royal Golden Sky Co Ltd to operate a retail space at the Yangon International Airport.

    “We will continue to look at retail opportunities in the domestic market (Myanmar). We are in discussions with the Junction City (Shwe Taung Group’s $300-million mixed-used development project) and I think there will be opportunities in both retail and F&B space,” said Mark Bedingham, president and chief executive officer, Singapore Myanmar Investco.

    About 10 international brands will be brought to the domestic market while the Yangon International Airport retail space will sport 30 brands by July 2016.

    SMI is primarily targeting the downtown business district around Kandawgyi lake area and Mandalay for retail opportunities.

    For the food and beverages sector, SMI has signed a franchise agreement with Crystal Jade group to bring in the Chinese restaurant concept and The Coffee Bean and Tea Leaf that will open soon at the new Yangon International Airport terminal.

    “We want to be seen as a progressive company in Myanmar, bringing new products and services that have not been available here before, both for consumers and businesses.”