Blog

  • CapitaLand Malaysia has strong first quarter

    CapitaLand Malaysia has strong first quarter

    New income from Tropicana City Mall and higher contributions from Gurney Plaza and East Coast Mall, CapitaLand Malaysia Mall REIT Management (CMRM) have propelled reported property income growth of 13.1 per cent for the first quarter.

    Tropicana City Mall and Tropicana City Office Tower were acquired in July last year.

    CMRM, which manages CapitaLand Malaysia Mall Trust (CMMT), says its net property income for the period was RM60.6 million (US$15.57 million), compared with RM53.6 million for the corresponding period the previous year.

    “Despite the challenging global economic environment, the Malaysian economy is forecast to grow 4 per cent to 4.5 per cent this year,” says CMRM chairman David Wong. “We expect consumer and business sentiments to remain cautious throughout the year as concerns over rising costs of living persist.”

    He says headwinds are also likely from intensifying competition as more retail space is scheduled for completion this year. However, the group is confident its portfolio of malls will continue to be resilient.

    Tropicana City Mall and the office tower accounted for 12.7 per cent of the group’s net property income, says CEO Low Peck Chen. This was also boosted by higher rates from new and renewed leases at Gurney Plaza and East Coast Mall.

    Despite the temporary impact of Mass Rapid Transit construction works on shopper traffic at Sungei Wang Plaza, the stable performance of other malls in the company’s diversified portfolio will help to cushion the effect, she says.

    “At Tropicana City Mall we embarked on asset-enhancement works, including the addition of a retail area on the ground floor next to the office tower.”

    Reconfiguration works will also create retail areas on Basement 1 and Level 7 later this year.

  • Affinity buys Burger King Korea

    Affinity buys Burger King Korea

    Burger King Korea has been snapped up by private equity investors.

    Affinity Equity Partners has completed the buyout of the Korean business of the US fast food brand for 210 billion won (US$183.3 million), after agreeing to terms in February. The vendor was VIG Partners.

    Affinity is already planning to open new outlets as a first step in increasing sales.

    Meanwhile, Korean news media report rival fast food chain McDonald’s is seeking a strategic partner to run the local operation and speed up its network expansion.

    “We’re committed to Korea for the long-term and intend to combine our global brand with local insights and expertise,” said Steve Easterbrook, McDonald’s CEO and president.

    “This gives us the ability to enable faster decision-making, achieve restaurant growth and deliver a great restaurant experience for our customers in Korea.”

  • Muji India set to make history

    Muji India set to make history

    Muji India  is about to become the first Japanese retailer to open stores in the nation.

    One is planned for Mumbai, the commercial capital, and another in Bangalore, the hub of the IT industry.

    This follows the forming of a joint venture by Muji owner Ryohin Keikaku, Tokyo, with Reliance Brands, based in Mumbai.

    Ryohin Keikaku is also the first-ever Japanese retailer to receive individual approval for a direct investment from the Indian government’s Foreign Investment Promotion Board.

    Its first venture will be the Muji Palladium. Opening in 2009, Mumbai’s Palladium is one of India’s largest shopping centres, attracting more than 24 million visitors every year. It has luxury retail brands, restaurants and a food court, and is next to a five-star hotel and cinema complex. The Muji India store, scheduled to open in August, will cover about 207 sqm.

    Muji’s second outlet will be in the VR Mall next to Phoenix Market City, which has fashion stores as well as a cinema complex and restaurants. Covering about 485 sqm, the Muji store is scheduled to open in September.

  • Garuda signs 1 billion pound deal with Roll Roys

    Garuda signs 1 billion pound deal with Roll Roys

    The nations flag carrier PT Garuda Indonesia and British aircraft engine maker Roll Roys signed a 1 billion pound cooperation agreement here on Tuesday.

    “The results of the meeting between President Jokowi (Joko Widodo) and Prime Minister David Cameron included the agreement between Garuda and Roll Roys worth 1 billion poundsterling,” British Ambassador to Indonesia Moazzam Malik said here on Tuesday.

    Garuda would buy 14 units of aircraft produced in Britain and other European countries, Moazzam said after the meeting between Jokowi and Cameron.

    The units to be produced in Britain will use Roll Roys engines, he said.

    Under the agreement, Garuda would send mechanics and technicians for training in Roll Roys.

    The ambassador said that Jokowi and Cameron also discussed issue of extremism, adding that Cameron asked Indonesia to play a greater international role in controlling radicalism.

  • Vice President Opens Inacraft 2016

    Vice President Opens Inacraft 2016

    Vice President Jusuf Kalla has opened Indonesian handicraft expo Inacraft 2016 held from today to April 24, 2016 in Jakarta Convention Center, Senayan, Jakarta.

    The largest Indonesian handicraft expo is participated by over 1,400 handicraft companies, consist of both manufacturers and exporters from 34 provinces in Indonesia that occupy 1,333 stands.

    The expo has seen an increase in individual participants with 849 stands. There are also 359 agency stands, 117 SOE stands and eight foreign participant stands from Singapore, Japan, Pakistan, Nepal, India and Syria.

    Adopting the theme “From Smart Village to Global Market”, Inacraft tries to facilitate Indonesian handicraft products to step up the level and standard of Indonesian handicraft products.

    The handicrafts being exhibited among others are various textile handicrafts such as batik, weaves, embroideries, songket, ikat weaving and various accessories, wooden handicrafts such as statues, carved furnitures, educational toys, jewelries from gold, silver and gem stones.

    This year, Inacraft provides free shuttle buses from a number of shopping malls and airport to the expo site, among others, Margocity, Mal Taman Anggrek and Sumarecon Mall Bekasi.

  • DHL Inaugurates S$160-million Advanced Regional Center in Singapore

    DHL Inaugurates S$160-million Advanced Regional Center in Singapore

    DHL Supply Chain has launched its Advanced Regional Center (ARC) in Singapore. Built at an investment of more than S$160 million, the new 90,000 sqm facility features an S$18.8 million multi-customer automation system featuring advanced robotics.

    The pioneering system allows customers to enjoy the benefits of automation solution without the need for significant capital investment. The technological enhancement uses 130 robotic shuttles to pick and store products from 72,000 locations spread across 26 levels, improving picking efficiency by 20 per cent and utilising 40 per cent less space than conventional warehousing operations.

    This is the first of its kind deployed by DHL globally and creates a model for the future of warehousing in land-scarce countries and dense cities where land availability is limited and expensive.

    “As an organisation, our spirit thrives on a hunger for new knowledge and innovations that we can bring to customers to meet the challenges of Industry 4.0, the fourth industrial revolution. We see the Asian region as a swift adopter of technologies for enhanced productivity and efficiency. By 2020, Asia will constitute 30 per cent of our total revenue. Facilities like the Advanced Regional Center offer a ready model of innovations that reduce complexity, improve accuracy and maximize opportunities for productivity gains,” said Frank Appel, Chief Executive Officer, Deutsche Post DHL Group.

    Co-located within the ARC is the DHL Asia Pacific Innovation Center (APIC), DHL’s first innovation centre outside of Germany and a joint development with the Singapore Economic Development Board (EDB). Launched in 2015, APIC is the first dedicated centre for innovative logistics services in the Asia Pacific region and showcases futuristic technologies.

    As a multi-customer facility, the Advanced Regional Center also offers bespoke solutions to cater to specific industry needs. For example, the facility boasts clean rooms for Life Sciences & Healthcare businesses, specialised infrastructure for aerospace operations and customized storage solutions for managing service parts for technology customers.

    Purpose-built to industry-leading standards, the ARC facility has been awarded ‘gold status’ for its energy and environmental design. The company has also implemented robust security measures that are in accordance with global TAPA standards.

  • CenturyLink expands cloud platform to Australia

    CenturyLink expands cloud platform to Australia

    CenturyLink has announced the availability of CenturyLink Cloud in Australia.

    The CenturyLink Cloud platform delivers enterprise-class control, agility, scalability and security backed by an industry-leading global network.

    Businesses based or operating in Australia can now turn to a single, trusted provider for public and private cloud infrastructure, managed services, colocation, network connectivity and support for advanced hybrid solutions.

    The Sydney cloud node joins the company’s other available cloud locations in the US, UK, Canada, Germany, and Singapore.

    Gery Messer, CenturyLink managing director, Asia Pacific, said “Launching the CenturyLink Cloud node in Australia signals our strong commitment to this key growth market.

    “We’re seeing increased customer demand for IT services in Australia, which is one of the most connected countries in the world. Thanks to our continued investment in Asia Pacific, many more organizations are achieving success on their hybrid IT journeys,” the executive said.

    Business research and consulting firm Frost & Sullivan predicts cloud spending in Asia Pacific will reach $20 billion in 2018.

    CenturyLink’s presence in Asia-Pacific dates back to 1999. Numerous regional and multinational corporations in Australia are customers.

    The Australia cloud node is one of several recent cloud advancements for CenturyLink. In early March, the CenturyLink Development Center opened in St. Louis with a focus on building cloud-based managed services that help drive increased value for businesses. In January, the company launched Relational Database (DB) Service, a MySQL-compatible database-as-a-service designed to meet application developers’ rapid software requirements and drive more agile IT.

  • Telstra to launch Cloud Gateway in June

    Telstra to launch Cloud Gateway in June

    Australia’s largest operator Telstra will launch a product for businesses needing to connect to multiple cloud environments.

    The company has also added Amazon Web Services (AWS) to its list of supported cloud platforms. The service, named Cloud Gateway, will launch in June 2016.

    Cloud Gateway aims to provide private and secure connectivity directly into multiple public cloud platforms. This one-to-many “gateway” model connects an IP network service to the cloud with data carriage, cross connect in the hosting data center, configuration and support.

    Organizations are expected to be able to access their chosen cloud platform from around the world simply and securely, with increased application performance via Telstra’s IP network.

    Initially, Cloud Gateway will offer customers around the world connectivity to AWS and IBM SoftLayer, while Australian customers can also connect to Microsoft Azure, Office365 and VMware vCloud Air. More infrastructure and SaaS platforms are expected to join over time.

    Telstra executive director for global products and solutions Philip Jones said Cloud Gateway aims to help customers take full advantage of multiple cloud-based workloads.

    “Most organizations don’t realize the full value of cloud out of a single service. Instead, our customers are investing in sophisticated hybrid cloud environments, which come with their own range of fragmented networking challenges,” said Jones.

    “These include managing multiple vendors, portals and contracts, while trying to maintain a high level of security, performance and operational efficiency. We believe that just because these solutions are sophisticated, doesn’t mean that they should also be complex. Cloud Gateway is Telstra’s simple way to connect multiple clouds, and create hybrid environments.”

  • Mobile money service launched in Bangladesh

    Mobile money service launched in Bangladesh

    Financial inclusion in Bangladesh just took a stride closer to reality with the launch of a new international remittance receiving service via a partnership between MasterCard, Western Union, bKash and BRAC Bank.

    The new service enables bKash’s registered customers to use their mobile phones to receive remittances from abroad directly into their bKash accounts.

    A subsidiary of BRAC Bank and a joint venture between BRAC Bank and Money in Motion LLC of USA, bkash serves the low income masses of Bangladesh to achieve broader financial inclusion by providing services that are convenient, affordable and reliable.

    With 70% of the population living in rural Bangladesh many of whom have no access to formal financial services, it is also the eight largest receiver of international remittances in the world. Under 15% of Bangladeshis are connected to the prescribed banking system whereas over 68% have mobile phones.

    World Bank South Asia Financial Inclusion Index 2014These phones are not only devices for talking, but can be used for more useful and difficult processing tasks. bKash was conceived primarily to use these mobile devices and the universal telecom networks to extend financial services in a protected manner to the under-served distant population of Bangladesh.

    By using the new service, bKash’s registered customers can receive remittances from every Western Union send market and channel directly into their bKash account, 24 hours a day.

    MasterCard’s Matthew Driver said: “This relationship is another step towards achieving our global commitment to make the financial system accessible to 500 million more people by 2020. Working with companies such as bKash and Western Union is crucial to taking advantage of the latest technology; digitizing money transfers and supporting financial inclusion efforts in the South Asia region and worldwide. The choice, flexibility and convenience of this new bKash service will help to expand financial inclusion to some of the most remote parts of this thriving nation.”

    Western Union’s Jean Claude Farah said international money transfers over mobile phones will accelerate financial inclusion in Bangladesh where there are currently more mobile phones than there are customers with bank accounts.

    In 2011, the Bangladesh Bank, the country’s central bank, issued the Mobile Financial Services (MFS) Guidelines and mandated that the model where MFS must be bank-led but also clearly indicated that partnerships with mobile operators must be forged to reach customers. The first two MFS providers to emerged as leaders early on were BRAC/bKash and Dutch Bangla-Bank/DBBL.

    Like many parts of developing Asia, financial inclusion is part of the government via the central bank’s strategic plan, aimed at ensuring these products meet the needs of the traditionally underserved segments of society. Among the services on priority list include expanding access to financial services to women, poor and rural populations; and formalizing financial services by promoting registered transactions.

  • Telkomsel’s LTE footprint reaches 100 cities

    Telkomsel’s LTE footprint reaches 100 cities

    The company has to date deployed more than 4,500 base stations in Sumatra, Java, Kalimantan, Sulawesi, Bali, Nusa Tenggara, and Papua.

    According to the operator, 4G subscriber take up is strong. The company has around 5 million 4G subscribers, and is aiming for 12 million by the end of the year.

    The latest city to be covered by Telkomsel’s LTE rollout is Ambon in the Maluku province. The company has established 29 base stations in the seaport city, and aims to roll out 373 in the Maluku region.

    Telkomsel’s current focus is on expanding its LTE network in the ‘buffer zones’ of Jakarta and Bandung, the company revealed.

    Telkomsel was Indonesia’s first mobile operator to launch LTE services in late 2014, using the 900-MHz band. The company – along with its four major rivals – also launched LTE over the 1800-MHz band in July last year.

  • Tenant Manila is a cafe and a surfwear shop in one

    Tenant Manila is a cafe and a surfwear shop in one

    On the ground floor of Solace Hotel in Makati, there is a coffee shop, and just above it, a lifestyle boutique specializing in surfwear. It’s an unfamiliar, if welcome, amalgamation of the laid-back vibe of a neighborhood cafe, the stylish urbanity of the city, and the anything-goes attitude associated with going out to the water to catch some waves. How, then, has such a place come to exist?

    tumblr_o37d6py7wa1qf32sfo1_1280

    Nearly 20 years ago, the designers Anton Lopez and John Esguerra met while working at Diesel in Italy before eventually going on different paths. “When John moved to Hawaii to surf and design, I moved to Hong Kong to work for Nike,” Lopez explains. “We stayed in touch and always spoke about the potential of developing our own brand and retail concept.” Despite their Filipino heritage, neither Lopez nor Esguerra grew up in the Philippines. This led them, Lopez says, to be “fascinated with the idea of coming ‘home’ and developing a unique brand that was based in Manila [and] had strong influences and inspiration from all the places we’ve lived.”

    Tenant Edit.jpgQuality Peoples statement tee. Photos by PATRICK DIOKNO.

    Out of that fascination came Tenant Manila, a cafe-boutique opened in February that is, according to Lopez, “rooted in surf and beach culture,” something they felt was “a natural and authentic fit for a brand developed in the Philippines.” The coffee shop serves an array of drinks (aside from the caffeinated kind, they have tea, juices, and alcoholic beverages), snacks, and meals. Meanwhile, the second-floor shop sells everything from men’s apparel and accessories to surfboards and even books. “The idea behind merging a cafe and a retail shop was to blur the lines of what a retail experience is meant to be,” Lopez says. It’s a concept that they believe appeals to everyone: “We wanted to create a space where you can shop, design, meet, have a drink — multipurpose without any pretenses.”

    Tenant 4.jpgMollusk windbreaker, Saturdays NYC tee and H&M trousers. Photos by PATRICK DIOKNO.

    Lopez believes that Tenant is distinct in its branding. “We believe we distinguish ourselves first by our unique brand partners,” he says. “Most of [them] decided to launch first with us in the Philippines.” The shop carries products by Saturdays NYC, Converse, Kapital, Mandala (making its retail debut), Mollusk, and Esguerra’s own Quality Peoples, to name a few. In addition, they are expanding the shop’s offerings within the year with new menu items, new brands, and events relating to art, music, and film.

    The largest project will involve the development of an in-house brand with its own products this summer. “[It] will encompass Tenant culture,” Lopez says. “Good quality, attention to detail, relaxed and authentic clothing and accessories.”

    tumblr_o3cqsvmJH21qf32sfo1_1280

    Lopez and Esguerra believe that what they’ve built really connects to the modern Filipino lifestyle. “I think we are, in essence, a modern concept and creative brand,” Lopez shares. “And with that alone, I think we fit into anyone’s lifestyle. We hope to connect with Filipinos based on our honest and thoughtful approach through all aspects of the Tenant brand.” He adds: “Our hope is that Tenant is recognized as a creative environment for everyone, a space with beautiful and well-curated apparel and goods. Somewhere to have a great cup of coffee and good conversation with your friends.”

    Tenant 5.jpgSaturdays NYC knit pullover (left) and Saturdays NYC bonnet. Photos by PATRICK DIOKNO.

    ***

    Styled by David Milan
    Grooming by Gery Penaso for MAC Cosmetics
    Modeled by Javi Marcalain
    Shot on location at Tenant Manila

     

  • Shop young progressive Malaysian brands at LOKA, NU Sentral

    Shop young progressive Malaysian brands at LOKA, NU Sentral

    Homegrown brands in Malaysia usually start off by participating in bazaars or selling online.

    With limited funding, it is difficult to penetrate into big retail malls. One way is to succeed collectively, as seen in LOKA, an initiative to foster the talents of the next generation brands so they can hopefully expand in Malaysia and even in the ASEAN region.

    Located in NU Sentral, next to H&M, LOKA is home to startup brands like Ash Be Nimble, Cufica, Greenroom136 and many more.

    Kamarulazhan Abdullah (co-founder of Cufica), Zye Ramli (LOKA store manager), Kamarul Akbar (co-founder of Cufica) and Patrick Lim (founder of Greenroom136) are advocates of homegrown brands.

    Kamarulazhan Abdullah (co-founder of Cufica), Zye Ramli (LOKA store manager), Kamarul Akbar (co-founder of Cufica) and Patrick Lim (founder of Greenroom136) are advocates of homegrown brands.

    Zye Ramli, the general manager of LOKA, has a lot of experience in mentoring startups. She was previously in publishing and media, public relations and subsequently worked on incubating startups in Malaysia. “LOKA is a movement, a curator of local brands. It is an organisation, a company, an agency that curates all local lifestyle brands under one roof.”

    As Zye elaborates, the company that owns LOKA is called Gemilang 4E where the term 4E stands for “for entrepreneurs.”

    “It is an entrepreneurship development agency that solicits for local designers and artists, asking them to come onboard and help them to elevate their businesses. The reason why Gemilang 4E does this is because they realised a couple of years back that the ministry and government gave a lot of support and attention to technology startups but not so much to lifestyle entrepreneurs.”

    Nightwear and children’s wear are some of the offerings at LOKA (left). Eco-friendly bags are sold at LOKA (right).

    Nightwear and children’s wear are some of the offerings at LOKA (left). Eco-friendly bags are sold at LOKA (right).

    Gemilang 4E took the initiative to start campaigns for the entrepreneurs. Zye noted also that they realised these local brands go for ground events like Tempatan Fest and Urbanscapes where they build their platform.

    However, because they are designers, Zye is of the opinion that many of them lack business sense. “They don’t have the funds or capabilities to go into a premium mall so they keep on following these on ground events and e-commerce events but what we want to do is elevate their business to another level.”

    LOKA approaches these homegrown brands by asking them to join in. Most of the brands were open to the idea because on their own they cannot afford the rental at such a premium space in a mall. So far, LOKA has amassed around 40 brands.

    Each brand is given an individual space and they are on consignment basis. LOKA takes a percentage from the consignment. The space is not calculated as rental but the brands pay a service fee.

    These colourful tassels will brighten up anyone’s mood (left). Doof bean bags are great alternatives to couches and chairs (right).

    These colourful tassels will brighten up anyone’s mood (left). Doof bean bags are great alternatives to couches and chairs (right).

    In return the LOKA ambassadors sell the products for them and LOKA runs marketing campaigns for individual brands too. All the brands under LOKA also sign an agreement where the products will be there for three months and under review for its sale performance.

    After three months, both LOKA and the brand will decide whether to continue. It has to be a mutual decision between two parties meaning that you can’t just simply open a space one day and move out the next day.

    Before LOKA opened, food was part of the plan but due to time constraints, they couldn’t bring in the food vendors on time. Currently the plan to bring in food is put on hold for the moment.

    There are some homeware products but the majority are fashion, accessories and lifestyle products. Each brand goes through a screening process where they are evaluated based on their history and social media followers.

    The brand also has to be the right product mix for LOKA. “We do get a lot of proposals. If we have too many street wear brands, I will have to see if they can compete with the current products or I have to put them on KIV (keep in view). If someone approaches me with something we don’t have and it looks interesting, we will look into it,” said Zye.

    Choose from a variety of Malaysian brand shoes (left). Decorate your house with some greens (right).

    Choose from a variety of Malaysian brand shoes (left). Decorate your house with some greens (right).

    The reason NU Sentral was chosen is because it is a good catchment area, a centralised location that serves the Petaling Jaya and Kuala Lumpur market as well as a tourist hub. LOKA has launched their outdoor campaigns in Jalan Travers, Bangsar and parts of KL to also create a buzz for the shop.

    “We haven’t launched a 100 per cent campaign yet. We will have escalator wraps in NU Sentral and KL Sentral and we plan to go to the campuses as well. There are 22 corporate buildings around KL Sentral and we will market to them too,” said Zye.

    So, how do homegrown brands expand with the help of LOKA? “They are the brand custodians of their own products. LOKA will assist them in terms of elevating their standing in the market but at the end of the day, they are the brand custodians. So whatever they do out there, they have to give us enough support to complement each other. They need to find ways to get into market expansion. We provide the facilities for them but we can’t provide everything for everyone,” she said.

    Ultimately, the brands have their own team and investors and should they need extra assistance, LOKA can step in to assist. The first phase of LOKA NU Sentral is completed and phase two would entail opening another outlet outside KL. Kota Kinabalu, Kuching, Johor Bahru and Penang are places they are considering for phase two. For phase three, LOKA plans to expand to the ASEAN region.

    With regards to LOKA, there are people curious enough to come and find out what’s available. “It has been encouraging. For two and a half months we are doing okay. There is buzz, talk and a lot of reviews. Fridays, Saturdays and Sundays are better,” said Zye.

    Local bag brand Greenroom136 is one of the vendors at LOKA.Local bag brand Greenroom136 is one of the vendors at LOKA.Patrick Lim of local bag brand Greenroom136 is one of the first few vendors under LOKA. He started out his brand online and now he sells his products with LOKA.

    “LOKA called me. So,they came by our studio and introduced the concept and we were interested. The emphasis is on local entrepreneurship, something we always advocate in our brand. Immediately we saw a brand fit. The fact that we have an opportunity to set up in a mall was the other pulling factor. We have been onboard since day one. We are expanding our operations, hiring more people for production and get things to the next level since being part of LOKA,” said Lim.

    He feels that LOKA is a good opportunity for local independent brands who start up small to have an establishment to support the front line efforts. Being part of LOKA will be a permanent initiative by Greenroom136 as they want to expand as LOKA opens more outlets. It helps them to grow, an opportunity that is hard to come by for local brands. Lim said that if he called a premium mall, they would prefer to pick an international brand rather than a local one.

    “We started off as an online business and we sell products that are RM300 and above. We pride ourselves on quality. Some customers are bitten by the made in Malaysian bug so when you have a higher price, they feel it is dubious so it is better that they can touch and feel the product in person. So it is a win-win all across,” he said.

    Another vendor at LOKA is Cufica, a Muslim lifestyle product brand that sells home decor and fashion apparel. It was started by friends Kamarulazhan Abdullah and Kamarul Akbar. The products are designed by them personally and made in Malaysia. “We joined LOKA since December and so far, it’s been good. Our sales and performance have increased since being part of LOKA. The location is good and it is easier for our customers to buy our products,” said Kamarulazhan. As the duo are based in Sentul, the shop at NU Sentral is also a strategic spot for them. Cufica started having a lot of new followers since being part of LOKA. They also started getting international customers that is a boost for the brand. Kamarulazhan said that they plan to stick around with LOKA as long as they can.

     

  • TFWA Singapore: conference programme revealed

    TFWA Singapore: conference programme revealed

    TFWA Workshop imageOff-airport duty free developments, millennial travellers and legislative threats to travel retail’s growth will be focal points for discussion at this year’s TFWA Asia Pacific Exhibition & Conference, 8-12 May.

    The trio of workshops will provide delegates with the vital insight they require to meet the challenges facing their industry.

    Workshop A will look at ambitious off-airport duty free developments, which have gained particular traction in Asia.

    Speakers include Amos Xu of Haikou Meilan Airport Duty Free Shop, Hyunah Ahn from Korea duty free operator Hanwha Galleria Timeworld and Peter Mohn from M1nd-set.

    Workshop B will delve into the hopes and expectations of the ambitious millennial traveller, with speakers including Singapore-based bloggers Uli Chan and Christabel Chua, Grant Fleming from Lagardère Travel Retail and Cheryl Lim from McKinsey who co-authored a report on capturing the Asian millennial traveller.

    Workshop C will pinpoint and discuss current legislative and regulatory threats, packaging regulations and carry-on board rules and specific categories such as alcohol and tobacco to establish ways of safeguarding the industry.

    Speakers include Sarah Branquinho, ETRC president; Andrew Gardiner, Asia Pacific Travel Retail Association board member and chief of retail & Launceston, Australia Pacific Airports (Melbourne); Duty Free World Council president Frank O’Connell and GfK global head of travel & hospitality Laurens van den Oever.

    “With three sessions running simultaneously, there will be plenty of food for thought during what promises to be a highly informative and constructive afternoon,” says TFWA vice president, conferences and research Thom Rankin.

     

  • McKinsey report shines light on online-to-offline services

    McKinsey report shines light on online-to-offline services

    As world’s largest and fast-growing e-commerce market, China is expecting the potentialgrowth of the online-to-offline services, which are cutting into incumbents’ margins, accordingto the latest McKinsey’s survey of China’s Internet users.

    “Online-to-offline services can win consumers and even convince them to spend more thanthey might want to,” said Gong Fang, a partner at McKinsey’s Shanghai office.

    China’s online retail market is the world’s largest after 2015 sales grew to approximately $630billion, nearly 80 percent bigger than that of the US. E-commerce in China accounts for 13.5percent of all retail spending.

    “In an e-commerce market as large and fast as China’s, retailers and consumers will have noshortage of opportunities, especially in low-tier cities where online and e-commercepenetration remains relatively low,” said Alau Lau, senior partner and head of McKinseyDigital in Asia.

  • Singapore GIC Makes First Investment in Indonesia’s Logistics Sector

    Singapore GIC Makes First Investment in Indonesia’s Logistics Sector

    Singapore sovereign wealth fund GIC has teamed up with Indonesia’s PT Mega Manunggal Property (MMP) to develop a portfolio of quality logistics warehouses over the next three years.

    The warehouses will boast nearly 500,000 sq m of net leasable area in both Greater Jakarta and Greater Surabaya in Indonesia, the two firms said in a joint press release issued yesterday.

    The partnership aims to meet increasing demand by companies for sophisticated inventory systems which cannot be fulfilled by traditional warehouses, they added.

    This is GIC’s maiden investment in Indonesia’s logistics sector.

    “We are attracted by the long- term growth of this sector, which is underpinned by the strong consumption of Indonesia’s rapidly rising middle class,” GIC Real Estate’s managing director and co-head of its Asia operations, Mr Loh Wai Keong, said. “We believe GIC’s knowledge and experience investing in logistics, both in Asia as well as other global markets, will add value to this partnership.”

    MMP, a publicly listed company in Indonesia, develops, owns and operates logistics properties, with a focus on international quality warehousing. “The partnership will also focus on increasing productivity,” MMP president director and chief executive Fernandus Chamsi said, adding that having good operations and quality human resources, as well as good corporate governance, helps.

    Indonesia was ranked 54th in the World Bank’s Logistics Performance Index of 2014. Restrictions on foreign investment in its logistics sector were recently loosened under President Joko Widodo as his administration aims for economic expansion and higher growth by 2019.

    GIC has over US$100 billion (S$135.9 billion) in assets under management in the property, private equity, fixed income and equity sectors in over 40 countries. It has been investing in emerging markets for over two decades.

    It has invested in Indonesia’s retail sector, putting in about 5.2 trillion rupiah (S$537 million) in PT Trans Retail, which operates hypermarkets, supermarkets and cash- and-carry stores under the Carrefour and TranSmart brands.