Just days after its CEO stepped down, Silicon Valley virtual reality company Jaunt said it has started producing VR content in China for worldwide distribution. Jaunt has received $100 million in funding, including millions from Disney.
The new operation was formed in partnership with Chinese media giants Shanghai Media Group and China Media Capital. The former will also invest in Jaunt’s U.S.-based efforts. Jaunt China will function, much like its American counterpart, as an end-to-end VR production and distribution platform, and will utilize the company’s high-end VR camera.
Nestlé has strengthened its global capabilities in e-commerce by signing a partnership with Alibaba in China, to grow online sales, build key brands and offer new products to millions of consumers.
Nestlé has introduced products including Nido milk powder, Damak chocolate and Nescafé Dolce Gusto BMW MINI coffee machines on Tmall.com, China’s largest shopping website for brands and retailers. Using Taobao.com, the country’s largest shopping site overall, Nestlé is expanding its distribution in rural areas.
Nestlé e-commerce successes to date include the Nespresso online boutique, and the recent global launch of super-premium chocolate brand Cailler using Amazon as the primary retailer.
Sebastien Szczepaniak, Vice President of Group Sales and eBusiness, said that Nestlé’s online sales are growing more than 25% per year.
“Moreover, offline purchases are increasingly influenced by what we see online, so brand building has gone beyond having good television advertising and nice packaging. Our ability to build brands on any touchpoint, be it digital or analogue, is vital,” he said.
A post on Chinese social media platform WeChat touts Orchard Road as a prime spot for a selfie, with its backdrop of high street brands and clean surroundings.
Another post raves about the value of the dishes at seafood restaurant chain Fish & Co, where appetisers cost between $3.90 and $11.90.
The Orchard Road Business Association (Orba) set up the WeChat account two months ago to promote the shopping street directly to consumers in China.
“In China, without a WeChat account, it’s impossible to communicate with the consumers,” said Mr Steven Goh, Orba’s executive director.
Like many businesses in Singapore, Orba is looking to the Chinese to provide a boost to the flagging retail and tourism sectors.
The Orchard Road Business Association recently hired a marketing agency in China to come up with twice-weekly posts on its WeChat platform that use the lingo of the mainland Chinese to introduce the brands in Orchard Road. PHOTO: ORCHARD ROAD BUSINESS ASSOCIATION
Competition from online shops and weak consumer sentiments have translated into lower retail sales. Tourism growth is expected to slow to a crawl this year, as tourists tighten their belts ahead of a weakening global economy.
The Chinese, however, offer hope.
Last year, Chinese visitor arrivals grew 22 per cent year-on- year to 2.1 million. Although their expenditure of $2.54 billion was a 4 per cent dip from the 2014 figure, they were still the top spenders among visitors here.
In recent years, Orba has sent teams to different cities in China regularly to promote the street.
Recently, it hired a marketing agency in China to come up with twice-weekly posts on its WeChat platform that introduce – in the lingo of the mainland Chinese – the brands in Orchard Road.
Its efforts complement those of the Singapore Retailers Association (SRA), which roped in Chinese payments firm UnionPay International as a partner of its Great Singapore Sale this year.
SRA extended the sale to 10 weeks and started it a week later than usual to coincide with most of China’s summer holidays.
Other retailers are also taking the initiative to cater to the Chinese.
Retail shop Taula Jewellery in Clarke Quay widened its range in March to include fashion jewellery and items with prices starting from $29, instead of $49 previously. Its Chinese customers prefer fashion jewellery to precious metal jewellery such as silver and gold, and like good deals, owner Kanika Mittal, 35, noted.
Department store Takashimaya is “displaying more prominently” products that are more highly discounted and appealing to Chinese tourists, who make up 30 per cent of its foreign customers, said a spokesman.
SRA executive director Anthony Gan said the Chinese tend to look for goods and services tax refund service, shops that accept UnionPay, Mandarin-speaking staff and special offers.
The spending patterns of Chinese tourists have evolved, said UnionPay International South-east Asia general manager Yang Wenhui. He said it was “seeing spending on hotels, supermarkets, dining, airlines and retail grow at a much faster rate than luxury goods in general”.
Tourism consultant Edward Chew said Chinese tourists no longer “purchase everything they come across”, with many international brands now available in China.
The former Singapore Tourism Board regional director for Greater China said: “We need to distil what Singapore is good for and strong in and what’s unique about our retail scene, and actively promote them to the Chinese traveller in Singapore.”
As Swedish retail brand H&M continues to dominate the Philippine shores, it seems that they also got a prestigious award along the way.
Last year, H&M Philippines unveiled a 50 x 50 foot coat hanger in Ayala Center Cebu during the opening of their largest South East Asian branch to date. Not only was it a sight to see for local mall-goers, it also recently got the Guinness World Record for the World’s Largest Coat Hanger.
Yes, there is such a record. I was as surprised as you. Also, I wonder how many clothes can we hang on that?
Samsung Pay, the Korean electronics giant’s e-wallet system, will launch in Singapore on June 16.
At launch, those holding Visa and MasterCard credit or debit cards issued by POSB Bank, DBS Bank, OCBC Bank, Standard Chartered Bank and Citibank will be able to use a compatible Samsung phone to pay at almost all retail outlets that accept credit cards.
Singapore will be only the fifth country to have Samsung Pay. It was launched in South Korea last August, followed by the United States in September. In March this year, Samsung Pay made its debut in China, while it was launched in Spain just earlier this month.
“We are excited to bring this service to Singapore consumers and we hope to introduce value-added services to drive and lead innovation in mobile commerce,” said Mr Thomas Ko, vice-president and global general manager of Samsung Pay.
Samsung Pay allows users to register their credit card details on selected Samsung smartphones with Near-Field Communication (NFC) wireless technology. Once registered, users can tap the phones for payment on almost all credit card payment terminals here.
This is because Samsung Pay uses a proprietary Magnetic Secure Transmission (MST) technology that works with both traditional magnetic-stripe credit-card terminals and NFC contactless payment terminals.
Unlike other contactless payment methods that are limited to transactions of $100 or less, Samsung Pay does not have this limit due to its MST technology.
Four Samsung Galaxy smartphones – the S6 edge+, Note 5, S7 and S7 edge – are compatible with Samsung Pay at launch. Fingerprint authentication is required for each transaction.
As of February this year, Samsung Pay has over five million registered users and recorded more than US$500 million (S$672 million) worth of transactions globally.
Rival mobile payment service Apple Pay was launched in April with support for American Express-issued cards only. But as of last month, Apple Pay also accepts Visa and MasterCard credit and debit cards issued in Singapore from five major banks – POSB, DBS Bank, OCBC Bank, UOB Bank and Standard Chartered Bank.
Apple Pay only works with contactless NFC payment terminals. This limits Apple Pay to only around 30,000 payment terminals in Singapore.
It also has a $100 cap for most transactions. But UOB has lifted this limit for some merchants, such as Singapore Petroleum Company, Caltex, Metro and The Coffee Bean & Tea Leaf.
Hong Kong women’s apparel company Niologie Limited has received a capital injection of RMB20 million (US$3.034 million) for its wholly owned subsidiary Niologie China from one of China’s largest fashion brands.
Shanghai La Chapelle Fashion gains a direct holding of 16 per cent of the shares of Niologie China through the investment co-operative agreement with its wholly owned subsidiary Shanghai La Chapelle Enterprise Management.
Originating in Hong Kong, Niologie China’s Tanni brand is a mid- to high-end lifestyle store brand with romantic European styling encompassing women’s apparel, handbags, footwear and accessories as well as houseware products. A significant characteristic of the brand, which entered mainland China in 2010, is its floral prints, designed exclusively by a UK team.
Shanghai La Chapelle believes the investment complies with its “product-oriented, fashionable and high-quality” brand philosophy, and will help it consolidate its leading position in China’s apparel market. Through the investment in Tanni, the group aims to enrich its mid-range to high-end product mix and accelerate the development of its multi-brand strategy, while the brand itself can leverage the group’s channels and supply-chain management capability for expansion and improved margins.
“With the constantly changing fashion trends in apparel and the need to satisfy consumers’ requirements for a more sophisticated shopping experience, apparel retailers have to adjust their sales model in order to capture first-mover advantages and expand market share amid intense market competition,” says La Chapelle executive VP Wang Yong.
“The Tanni brand has an independent design team, offers individualised products, stable domestic and overseas product channels, an excellent marketing system and speedy and stable logistics systems enabling a fast market response.”
Founded in 1998, La Chapelle designs, markets and sells apparel products with a focus on mass-market women’s casualwear. Its retail network comprises 7893 outlets in about 2500 locations across China.
Founded in 2010, Niologie China is the first women’s apparel brand chain in China to introduce European lifestyle-brand shops. The company has directly run shops in major business districts in Beijing, Nanjing, Hangzhou, Shenyang, Dalian and Harbin.
Starbucks has opened its first flagship store within a Disney resort in Asia.
The new Starbucks Disneytown Shanghai cafe opened on Wednesday. It will employ 110 staff creating a destination for resort-goers to relax and recharge.
“We will bring to life the craft of coffee in an immersive environment which will include new menu ordering options through a variety of mobile devices,” said Starbucks in a statement.
With the addition of this latest flagship store in Shanghai, China will be the only market in Starbucks China and Asia Pacific region to pioneer and operate four distinct flagship stores.
“China today represents the most significant and exciting opportunity ahead for Starbucks and our aspiration is to delight our customers and partners throughout China with an extraordinary store experience,” said John Culver, group president of Starbucks China and Asia Pacific.
“We expect the Starbucks Disneytown flagship store to be one of our busiest stores globally, serving and bringing the unique Starbucks experience to thousands of customers daily,” said Culver.
“This store builds on our ongoing commitment to the China market, following the announcement of our plans to open a Starbucks Roastery and Reserve Tasting Room in Shanghai late next year.”
“First of its kind experience”
Reflective of Starbucks unique, sophisticated and locally relevant design, customers will immediately recognise the two-story Starbucks Disneytown store located at the crossroads of the shopping, dining and entertainment district just outside the main entrance to the theme park, adjacent to the Wishing Star Park. Atop the store, a specially crafted wind vane will evoke the playfulness of Disney with the Starbucks siren.
Upon entering through grand, castle-like doors customers will be greeted by a Starbucks barista and a sweeping view of a warm, inviting environment created out of natural woods and materials reflecting the raw, agricultural roots of coffee. Seating will surround the cafe bar allowing families and friends to gather, creating connection and community as they immerse in the story of coffee.
The first and second floors of the store will be joined by gently terraced stairs, and the copper wall panels celebrate the different degrees of coffee roasting highlighting the proud coffees in Starbucks portfolio.
Hanging from the ceiling is a delicately constructed piece of artwork designed from gold and white metal wiring inspired by latte art crafted by baristas, while a mural of the Starbucks siren is made out of Starbucks cups. A centerpiece, this mural includes intricately designed silhouette scenes inside a handful of cups designed by local artists representing China’s cultural heritage.
Technology
For the first time in China, the traditional menu board is replaced by a digital menu. Customers can order their favorite beverages and food using a mobile handheld device available at the store or from their personal mobile device. This integration of technology offers a convenient experience that was inspired by Starbucks stores in the US, including its express format on Wall St in New York and the Starbucks Roastery located in its hometown of Seattle, Washington.
“This new Starbucks Disneytown Flagship store will bring its own distinctive, unforgettable moments of connection while inspiring playful imagination for customers of all ages,” added Henry Xie, GM of President Starbucks Coffee Shanghai Co.
This new Shanghai location is the 12th Starbucks store globally to open as part of a Disney resort.
Link Asset Management, which manages Link Real Estate Investment Trust, Link REIT, increased both its revenue and net property income by double figures during the year ended March 31.
Revenue rose 13.2 per cent to HK$8740 million (US$1125.68 million), while property income rose 14.9 per cent to HK$6513 million.
During the year, the value of its investment properties portfolio – including property under development and properties in mainland China acquired during the year – continued to improve, reaching $160,672 million, an increase of 16.1 per cent.
“The past 10 years have seen the transformation of Link from being a passive manager of a portfolio of legacy assets to becoming an innovative and world-class real-estate investor and manager,” says the group.
An active and productive financial year saw the group capitalise on high-potential investment opportunities, and it also launched its new brand, in development for two years.
It was also an important year for improving its portfolio, refining tenant mix and enhancing properties in Hong Kong, disposing of non-core properties and adding two properties in mainland China.
“The management of our retail and car park facilities has evolved to be our strength and expertise,” says the group. “Through scalable innovation, we continue to leverage on this competitive advantage. This strategy is supported by close monitoring and analysis of changes in district demographics and shopper preferences.”
Retail growth
Despite a challenging economic environment in Hong Kong, the group’s retail portfolio showed resilience. There was growth in nearly all areas of retail through the group’s leasing strategy to attract more productive tenants, especially in the food and beverage sector, and to cut down large shops into smaller ones.
Occupancy rate for the portfolio reached 96 per cent, with a record 6.7 per cent year-on-year retail rental growth.
Link segmented its Hong Kong portfolio into three groups – Destination, Community and Neighbourhood – for management and marketing tailored to different types of tenants and shoppers. Destination shopping centres contributed to 17.1 per cent of the portfolio’s retail rentals.
During the year, the group acquired EC Mall in Beijing and Corporate Avenue 1 & 2 in Shanghai. In Zhongguancun, the “Silicon Valley of China”, EC Mall offers mass-market retail products, and reached 100 per cent occupancy by the end of the financial year.
In February, the group acquired 700 Nathan Road in Mong Kok through a government tender. With its location and catchment, the property will be converted into a retail podium and tower.
Five asset-enhancement projects were also completed during the year: Tsing Yi Commercial Complex, Temple Mall North, Long Ping Commercial Centre, Wo Che Plaza and Tin Shing Shopping Centre.
Temple Mall North (previously Lung Cheung Plaza) in Wong Tai Sin was rebranded and upgraded to offer more space and shops. The atrium was revamped to cater for marketing activities.
Also rebranded was Wong Tai Sin Plaza, connected to Temple Mall North by a footbridge, as Temple Mall South. The two shopping centres are now run as one mall.
Given changes in demographics from new residential projects nearby, Tsing Yi Commercial Complex and Long Ping Commercial Centre were also improved, and Tin Shing Shopping Centre has been reconfigured with its fresh market repositioned as a regional fresh market.
Already the group has 11 enhancement projects in progress with another eight to start, and more than 16 other projects undergoing review.
Spain’s Inditex group has opened its largest global Stradivarius flagship yet on London’s Oxford St.
The new store at number 309 has a total area of 1500 sqm spread over three floors and showcasing the entire range of the young fashion and accessories brand. The basement and first floor contains the women’s and lifestyle collections, while the first floor is scheduled to open in 2017 in time for Spring/Summer with the launch of Stradivarius’s first menswear offering.
A prominent glass facade allows natural light to flow into the store helping to connect with the street outside. The atmosphere is one of industrial combined with natural aesthetics, with wood, textured fabric walls and strip lights. The original interior brick walls have been exposed and preserved to create a vintage feel and showcase the #stradivariuslondon hashtag.
The new opening builds on the success of Stradivarius’s first UK store opened at Westfield Stratford in August 2014, as well as the launch of the brand’s UK eCommerce offering in September 2013.
Stradivarius is one of the eight brands that make up Inditex Group. It designs thousands of feminine and creative garments and accessories in Spain which are distributed exclusively in its stores worldwide, especially targeting women between 20 and 35 years old. Including the new store at 309 Oxford St, the brand has 960 stores in 64 countries.
Tech giant Xiaomi Korea took another step forward in its Korean operations by opening its first offline store in Seoul.
The Chinese-headquartered smartphone and electronics brand has opened the store inside the Yongsan Electronics Market, one of the largest retail areas in Korea that houses some 5000 electronics stores.
To celebrate its grand opening, Xiaomi has organised various events for visiting customers, which will last until June 12.
Chinese etailer Globalegrow says it has taken steps to ensure what foreign customers order is what they get at a time foreign shoppers are increasingly wary of the authenticity of Chinese-sourced products.
Globalegrow, whose full name is Shenzhen Global E-Grow Electronic Commerce Co, operates several eCommerce websites in the US, including SammyDress.com, RoseGal.com and Zaful.com, providing consumers direct access to “affordable, trendy fashion”.
A company spokesperson said while its primary focus is on maintaining low prices, it considers it of equal importance that customers are assured its products and services meet their needs and expectations.
“To that end, the company has developed a two-year plan to enhance its quality assurance and customer service procedures.’
That plan includes:
In-house inspection of all Globalegrow products before shipping, to ensure all consumers receive the high-quality items that they expect.
In-house advertising, in which the company will photograph 100 per cent of the items sold on its websites to ensure accurate representation of its products.
Streamlined and clarified return policies.
The company has already increased its customer services agent staffing levels by 150 per cent during the last six months and now has agents available 24/7 to respond to customers via email or on live chat.
Globalegrow says it has also enhanced its vendor selection process and has ended relationships with vendors that “were not meeting its standards of honesty, quality, and trust”.
“The company follows a four-step process that includes reviewing product quality, inspecting factories and production processes, verifying certifications and qualifications and instituting an ongoing process for continuing assessments and feedback.
“Globalegrow is dedicated to honesty, quality, and trust, and welcomes feedback and suggestions as it continues to develop its international business offering direct-to-consumer affordable fashion,” the spokesman said.
Founded in 2007, Globalegrow describes itself as a cross-border eCommerce enterprise that imports products to China and exports Chinese products all over the world.
Odaiba’s Aqua City waterfront shopping complex in Tokyo has an unusual lady on the third floor who waits patiently to answer visitor inquiries.
Chihira Junco looks exactly like the type of polite, impeccably dressed and well-groomed staff attendant you’d find at a service desk in Japan, only she is not human at all – she is a robot, created by the Toshiba Corporation.
Junco gets her name from the fact she was “born” in June, reports Rocket News. Said to be 26 years old, she stands at 165cm and speaks Japanese, English and Chinese.
Her facial features and hand movements draw large crowds daily. Next to her is an information desk staffed by three real-life female attendants who tend to be overlooked.
Alongside the android at her desk is a futuristic device that lets visitors interact with her. A touch-screen panel displays options, and responds to mid-air “touch”, meaning customers do not have to actually touch any surface.
Once the selection has been made, Junco springs to life, offering guidance and directions in the language chosen, complete with lifelike gestures and a friendly smile. Visitors have a list of options for their inquiries, such as restaurants, transport access and tourist information.
In the future, the company plans to have Junco respond directly to questions from customers rather than have them use a menu. They also hope to add more foreign languages, including Korean.
When not responding to customer requests, Junco spends time speaking in Japanese, Chinese and British-accented English in rotation. On special holidays, like Christmas, she dresses up in appropriate outfits.
Soon all SM’s retail-related businesses will come under a single umbrella company.
The planned SM Retail consolidation is expected to boost sales by 16.6 per cent to Php251 billion.
SM Investments Corp, Henry Sy’s holding company, said in an investor presentation that the merger of all retail-related businesses under SM Retail would ratchet up footprint and diversity in the group’s portfolio.
Aside from higher revenues, the combined merger will result in 1927 outlets and 2.4 million sqm of GFA across a diverse portfolio of food, household appliances, DIY, furniture, apparel, footwear, pharmaceuticals, cosmetics and specialty retailing stores.
Currently SM Retail has only 553 stores and 1.8 million sqm of GFA.
SM Investments is also expanding its minimart concept store Alfamart. While Alfamart is in the testing phase, it now has 126 branches mostly in provincial areas south of Metro Manila and in residential areas.
The conglomerate said the minimart concept was different to convenience store, as it offers supermarket pricing and ready-to-cook items versus ready-to-eat products.
Prior to the merger, SM Retail operates 53 SM department stores, 44 hypermarkets and 213 supermarkets and majority stakes in the local operations of Alfamart, Forever21, Crate & Barrel and other specialty and apparel retailers in addition to a minority stake in Uniqlo.
SM Retail brands include Ace Hardware, SM Appliance Center, Homeworld, Our Home, Toy Kingdom, Watsons, Kultura, Baby Company, Sports Station and several other specialty stores.
SM Retail is one of the leading retail companies in the Philippines, along with Robinsons Retail Holdings of the Gokongwei group and Puregold Price Club.
With continuing restructuring in the Singapore retail sector it is a tenants’ market, but while rents are generally under pressure, well-located, well-managed suburban malls are in a strong position.
Meanwhile, average prime retail rents in Orchard Rd and suburban areas continued to fall in the second quarter of this year, reports CBRE.
“Our research shows a clear reduction of rentals, and it would not be accurate to report otherwise,” says CBRE SIngapore/Southeast Asia head of research Desmond Sim.
Average prime Orchard Rd rents stand at S$32.50 (US$24) psf/mth, down 1.1 per cent from the first quarter – the sixth consecutive quarter of decline for the precinct.
Average prime rent for the suburban submarket fell 0.7 per cent to $29.45 psf/mth from the first quarter. There rents began to fall only in the last quarter of last year.
“There are still sparks of activity, particularly around well-located and well-managed suburban malls that have a strong positioning tilted toward families and the immediate catchment,” says Sim, citing Compass One, which has reported 90 per cent precommitment. “With the positive momentum continuing, I would not be surprised if Compass One achieves full occupancy ahead of its opening.”
Compass One is about to reopen after an asset-enhancement exercise. It has seen a strong showing from returning tenants, attracted to its concept of a family mall.
Malls near transport nodes with a good tenant mix and the guarantee of a day and night catchment will continue to be more resilient in terms of rents and occupancy under the current market climate, says the CBRE report.
While general vacancy has been rising and more retail stock can be expected, the availability of prime space in good locations is scarce. This has deterred the expansion and entry of some retail brands as location, visibility and high foot-fall have become even more important factors than ever because of intense competition within the market.
With no foreseeable new supply in Orchard Rd and Marina Centre in the next few years, at least until 2019, this should provide some support for prime rents in Orchard Rd for the next half of the year, says the report.
F&B brands continued to be active in Singapore this quarter. Most new foreign cafes and restaurants that have opened or leased space in Singapore originate from the Asia Pacific region, such as Honolulu Cafe and the food-hall concept Itadakimasu by Parco.
Cosmetics, streetwear and footwear are seeing signs of more activity, and flagship stores are also trending in tandem with the growth of eCommerce.
“The market is particularly challenged by a mismatch of demand and supply at this point in the cycle. While most of the limits to expansion stem from consolidation activity, some retailers are constrained by the shortage of quality space,” says Sim.
Singapore’s Consistel is reportedly pulling ahead of MyRepublic in the race to secure funding to make a play to become the market’s fourth mobile operator.
Consistel has so far lined up at least S$400 million ($293.8 million) worth of the S$1 billion in funding it plans to raise ahead of a planned spectrum auction in the third quarter, and expects to be able to raise the remainder by the end of the month, citing a Maybank analyst.
Consistel is reportedly considering a range of funding options, including term loans, equity, and potentially vendor financing.
By contrast, MyRepublic had aimed to complete an S$250 million funding round by April, but has so far not reported any progress with this goal.
Consistel is a wireless networking equipment provider specializing in distributed antenna systems (DAS). The company first expressed an interest in becoming Singapore’s fourth MNO – through subsidiary OMGtel – in 2014, not long after MyRepublic announced its MNO ambitions.
Regulator IDA plans to hold an auction to select Singapore’s fourth mobile operator in the third quarter, with a reserve price of around S$35 million. A dedicated auction for the potential new market entrants will be held ahead of a general auction open to all takers.
