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  • Hamleys Hong Kong takeover

    Hamleys Hong Kong takeover

    Hamleys – the world’s oldest toy retailer – has been bought by a Hong Kong investor. As rumoured last week, the business has been sold to interests connected with the Sanpower Group in China’s mainland, which last year acquired UK department store House of Fraser.

    The buyer is C.banner International Holdings Limited, a Hong Kong-listed Chinese private enterprise, which describes itself as a strategic partner of Sanpower.

    The new owners plan to speed up the international rollout of the brand – and to pursue opportunities for concessions in department stores.

    In a statement, the new owners say they hope House of Fraser will “become C.banner’s priority business strategic partner”.

    “By virtue of the acquisition of Hamleys, C.banner will expand its retail businesses, and consider establishing deep relationships with department stores, so as to further promote the win-win development of its products and department stores through their brands and channels,” the company said in a statement.

    “C.banner hopes to implement its global brand strategy through introducing the products of House of Fraser and Hamleys, as well as capitalising on their channels to export its products overseas.

    “In the future C.banner will continue to actively explore business opportunities at home and abroad through mergers, acquisitions, strategic partnerships, as well as the establishment of other business relationships with leading retailer brands, to further implement its global brand strategy.”

    French owner Ludendo, which rescued Hamleys from a collapsed Icelandic bank three years ago for just £60 million, has already grown the business into an international toy brand, opening stores in Russia, Malaysia, Singapore – and last week in Vietnam. The company now has 53 stores owned or franchised. It turned over £62 million last year and posted a profit of £4.5 million.

    Founded in 1760 as Noah’s Ark, Hamleys opened its Regent St flagship store in London’s West End in 1881.

    *Photo: From left to right: Chen Yixi, chairman of the board of C.banner, Yuan Yafei, chairman of Sanpower Group, Gudjon Reynisson, CEO of Hamleys, Jean Micdhel Grunberg, president of Lundendo, Rudolph Hidalgo, chief executive director of Ludendo, at a press conference announcing the sale.

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  • Coccinelle expands global shop network

    Coccinelle expands global shop network

    Coccinelle has further extended its global network of shops with three new openings in China and Morocco and on board the St Peter Line cruise ship, which sails the Baltic Sea.

    The three locations opened in August and September and carry the Autumn/Winter 2015 collection, which channels ‘relaxed femininity, effortless glamour and spontaneity’ according to the Italian accessories brand.

    The collection is an expression of the #FeelGood concept that interprets the true spirit of the brand, “a positive attitude that Coccinelle transforms into a game of colours (chocolate, amber, ivy green and bicoloured fuchsia combined with wine red), of contrasts and details,” says Coccinelle.

    The Arlettis Bag is said to be the ‘key bag’ of the season featuring a stirrup-shape golden latch and a double variation of leather, calfskin and suede across different models.

    The personalised 30sq m shop-in-shop at Chengdu Shuangliu International Airport Terminal 2 opened in partnership with Dufry, and features the new store concept.

    “Bright steel for the wall display module and fumé mirrors give the interior a timeless elegance and make the best use of the available space and open displays that showcase bags and accessories,” adds the brand.

    Emanuele Mazziotta, Head of Travel Retail, says: “We are pleased to be present at Chengdu Shuangliu Airport. Chengdu is a key business city and represents an important milestone for our expansion plan into China domestic and travel retail channels. We want to thank Dufry for all the efforts and support for this opening.”

    Coccinelle has also opened a corner at Casablanca International Airport in partnership with International Duty Free Shops and an additional corner on board of the Baltic Sea’s St Peter Line cruise ship.

    Emanuele Mazziotta, added: “We want to thank International Duty Free Shops; Casablanca Airport is another important opening for Coccinelle in 2015 and the first one in the region.

    “In September we have also opened a corner on board of St Peter Line cruise ship, following the recent openings on Costa Crociere cruise ships with Starboard. This additional location on the Baltic Sea show our interest and trust in the cruise business”.

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  • Samsonite Singapore plans more stores

    Samsonite Singapore plans more stores

    Samsonite Singapore plans at least two new stores in the city this year. Speaking in an interview with the Straits Times, Samsonite CEO Ramesh Tainwala acknowledged his business faces high operating costs and slower economic growth in Singapore, compared to other Asian markets. But he said the company’s strategy was dependent on more than economic growth.

    “Our market share in Singapore does not exceed 22 per cent… If I grow my business here… to 25 per cent of market share, without the market growing I can still deliver around 10 to 11 per cent growth in my business.”

    The travel goods retailer will end the year with more than 20 stores in Singapore with three new ones already trading and two more planned.

  • Asus ZenWatch 2 priced in Singapore, aims for mass market

    Asus ZenWatch 2 priced in Singapore, aims for mass market

    Taiwanese PC giant Asustek Computer Inc is taking the price of smartwatches, specifically those running on Google’s Android Wear platform, to a new low.

    Launching the Asus ZenWatch 2 smartwatch in Singapore on Oct 29, the company announced the wearable will begin shipping in Singapore from Nov 14 and retail for S$229 (US$165).

    As the name implies, this product is the follow-up to the original ZenWatch launched back in 2014.  That wearable wasn’t officially sold in Singapore, but was (belatedly) made available in Malaysia.

    Asus’ country manager for Singapore, Leo Tseng, told Digital News Asia (DNA) at the sidelines of the launch event, the decision not to introduce the original ZenWatch to Singapore was due to timing.

    “At that time [early 2015], the price was high and consumers weren’t educated about smartwatches, so if we brought that product in, there would be trouble for us.

    “Now, Apple has since launched their smartwatch, so consumers have a better idea and feelings towards this type of product,” he said, alluding to improved consumer awareness about  smartwatches thanks to the buzz generated by the Apple Watch.

    Tseng also noted that there was a clear directive from Asustek’s chief executive officer Jerry Shen to the product team to improve on the wearable and make it more affordable for consumers without sacrificing on quality.

    Compared to the recently launched Huawei Watch which starts at S$549, or even the Tizen-powered Samsung Gear S2 which retails for S$448, the Asus ZenWatch 2 looks like a sweet deal.

    And unlike its rivals, Asus is sticking to one price for its watch, even though it comes in two different sizes “to cater to both female and male users”, according to its press materials.  When asked for the reason behind offering just a single price point, Tseng said it was to reduce consumer confusion.

    The 1.63 inch ‘Sparrow’ model is similar in size to the previous ZenWatch, while the 1.45-inch ‘Wren’ version will suit smaller wrists.  Those measurements refer to the size of the display.

    To provide some design variety, Asus is also making available a number of interchangeable straps for the watches, priced at S$39 (US$28) each.  The bands will come in both rubber and plastic options, and will be available at the end of November.

    The original model was critically well-received, partly due to its sleek design and leather band.  In this regard, Asus hasn’t strayed too far from that design philosophy.

    Rather than going for a circular face, the company is continuing with a rectangular-shaped stainless steel watch case design with rounded edges, leather bands and metal buckles.

    A metal crown button is fitted on the right, similar to wristwatches and provides a way to access apps and turn the screen on or off.

    The watch display has a slightly curved surface which Asus claims improved usability and is protected against scratches with Corning’s Gorilla Glass 3.

    One marked change over its predecessor is the design of the watch clasp. The original model utilised a large metal clasp that joined both sides of the band together. The new ZenWatch opts for a more traditional buckle and is less conspicuous and looks more refined by comparison.

    One area which Asus didn’t iterate on however, is the internal hardware specifications. This smartwatch continues to rely on the same Qualcomm Snapdragon 400 processor, with 512MB of memory and 4GB  of storage.

    The display resolution on the ‘Sparrow’ model is also similar at 320 x 320 resolution, while the smaller ‘Wren’ model comes with a lower 280 x 280 resolution.  Asus is also utilising the same high-contrast AMOLED screen found in the original watch.

    In terms of battery life, the company claims the new watch is fitted with an enhanced battery (400mAh for Sparrow, 300mAh for Wren) which will provide up to two days of use on a single charge.

    It said it made some improvements to the charging mechanism, utilising a magnetic charger which takes slightly more than half an hour to charge the unit from zero to 50 percent capacity.

    Like most smartwatches today, the ZenWatch 2 comes with a number of different sensors to track your activities and how long you’ve stayed sedentary, but unfortunately it dropped the heart-rate sensor from this model.

    Tseng said few people used the heart-rate sensor found on the original ZenWatch, so it decided to focus on other areas, like being able to track a larger variety of activities, including push-ups and sit-ups, aside from the usual walking and running motions, as part of its updated ‘Wellness Manager’ software.

    Compatible with Android smartphones and iOS devices, this wearable also includes new apps like  ‘FaceDesigner’ (pic above)  which lets you create your own watch face from your smartphone, and ‘Business Helper’ which helps users keep track of their agendas, manage their emails and viewing call logs, without having to check their smartphone.

    Speaking with several of the trade partners and members of the media who were present at the launch, DNA found the reaction to be generally positive, especially when it came to the price of the watch.

    Some believed this would help to encourage users to try on the watch for size, and since the ZenWatch 2 is available in two sizes, it would hopefully meet the needs of the fashion conscious as well.

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  • Emack & Bolio’s opens in Hong Kong

    Emack & Bolio’s opens in Hong Kong

    The Emack & Bolio’s Central ice cream parlour just opened in Hong Kong is described as “unlike any other” you’ll find in the city.

    Emack & Bolio’s, at 26 Cochrane St, serves up 31 flavours of ice cream, frozen yogurt and sorbets along with smoothies, confections and more.

    The brand has its origins in Boston, Massachusetts, where it was founded in 1975 by Robert Rook, a lawyer and self-declared hippie who worked closely with the homeless, Vietnam war protesters, civil and gay rights advocates, and numerous rock bands such as Aerosmith, U2, Boston, The Cars, and James Brown, according to Wikipedia.

    It’s sometimes likened to Ben & Jerry’s, another ‘hippie ice cream store’ concept, but was actually founded three years earlier.

    The first Hong Kong outlet follows the brand’s entry into Asia last year when it opened in Bangkok Thailand. There is also at least one store in the UAE.

    Emack & Bolio's Hong Kong

    Emack & Bolio’s invented the flavored cone in 1980 and has been improving on the concept ever since.

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  • Japan interested in auto component factory in Indonesia

    Japan interested in auto component factory in Indonesia

    A company in Japans Okayama Prefecture is interested in the automotive component business in Indonesia, Okaya Prefecture Governor Ryuta Ibaragi said.

    During his visit to the Indonesian Capital Investment Coordinating Board (BKPM) here on Friday, Governor Ibaragi said the automotive component company, which has supplied components for Mitsubishi cars, was interested in developing an auto component factory in Indonesia.

    “There are 422 companies from Okoyama Prefecture that have made investments outside Japan. In Indonesia, we have a number of large companies which made investments,” he said, in a written statement made available in Jakarta on Saturday.

    Meanwhile, Okayama Prefecture’s governor said there is considerable interest among Japanese businessmen to conduct business in Indonesia. However, there are a number of concerns about the investment climate in Indonesia from investors from the Prefecture Okoyama, he said, including the problem of the country’s unpredictable wage system.

    Ibaragi said that during his visit in Indonesia he found Indonesians to be quite open to Japanese companies.

    “Regarding the MRT project, we thank the Indonesian government for its trust in a Japanese company. Of course, we will not ignore it and will maintain that trust,” he said.

    BKPM Chief Franky Sibarani said Japanese companies were given priorities regarding assistance from investment facilities.

    Japanese investment is the main component of the economic growth driver in Indonesia, he said.

    “We are ready to assist investment from Japan. The Marketing Office for the Japan area and the BKPM representative office in Tokyo could be used by investors and companies in Okoyama to plan business activities in Indonesia,” he said.

    He noted that his office was planning to conduct an investment promotion in Yokoyama early next year to win over interest by Japanese investors.

    “One of the major investors is Sumitomo. We will invite a number of companies which have made investments in Indonesia to share their successful experiences with their colleagues in Japan,” Sibarani said.

    In the first half of this year, Japan was ranked third in foreign investments, amounting to US$1.6 billion after Malaysia (US$2.6 billion) and Singapore (US$2.3 billion).

    Coming next were South Korea (US$0.8 billion) and the United States (US$0.6 billion).

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  • Rice prices ease in Vietnam; Thai grain stable

    Rice prices ease in Vietnam; Thai grain stable

    Rice export prices weakened in Vietnam this week from a nine-month high on thin buying demand, while Thai rice prices were stable ahead of sales from Thai government’s huge stocks next month, traders said on Wednesday. Vietnam’s 5-percent broken rice eased to $375-$380 a tonne, free-on-board (FOB) Saigon Port, from $370-$390 a week ago, and the indicative price for the 25-percent broken grade also weakened to $360 a tonne from $365 last week.

    “The price hike has stopped as nobody wants to buy at high prices,” a trader in Ho Chi Minh City said, noting that Thai rice was cheaper. Rice prices in Vietnam, the world’s third-largest exporter after India and Thailand, surged earlier this month on limited supply and news of demand from Indonesia and the Philippines.

    While loading of a combined 67,900 tonnes on five vessels for Indonesia is underway at Saigon Port, Indonesia has not confirmed the purchase. On Tuesday Indonesia’s state food procurement agency Bulog said the country would decide within two weeks whether to ship in rice from Vietnam and other Asian countries. Vietnam’s rice exports in the first 10 months of this year would fall 4.6 percent from a year earlier to an estimated 5.32 million tonnes, the Agriculture Ministry said on Monday. China, the top buyer of Vietnamese rice, has bought 1.39 million tonnes of the grain between January and September, up 37.5 percent from a year earlier, based on China’s customs data. Overall, China’s rice imports jumped 26.7 percent in the same period to 2.31 million tonnes.

    In Thailand, the 5-percent broken grain has been held stable at $360-$365 a tonne, FOB basis, while the Thai government plans to sell 2 million tonnes of rotten rice from huge stockpiles for industrial use in November. Thai traders said the market, which has been quiet due to the absence of Chinese and African buyers, could see prices rising if Thailand secures a deal with Indonesia as part of the latter country’s demand for 1.5 million tonnes.

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  • Fine wines languishing in China warehouses as demand cools

    Fine wines languishing in China warehouses as demand cools

    Importers of fine wines are cutting the prices of their products by as much as three-quarters amid a drop in demand.

    The fire sales are prompted by a huge oversupply of wine that had built up after a swarm of importers jumped at seemingly stellar growth from 2010.

    China wine consumption, which had been rising in double digits, dropped last year and is set to inch up just over 1 percent annually until 2020, Reuters reported.

    The striking slowdown is a headache for a global wine industry pinning hopes on fast China growth, and a further sign that Chinese consumers are reining in spending even as Beijing hopes they will pick up the slack from falling exports.

    “When we started there was huge demand so we could control prices, big margins no problem,” said Xavier Grangier, sales director at logistics firm Europasia, which runs a  4,000 square meter Shanghai warehouse storing 250,000 bottles of mostly European wine.

    Now, his firm has had to lower some prices and been stuck with some wine it is unlikely to sell.

    “In Shanghai alone, 2,000 firms in the wine business just vanished over the last couple of years,” he added.

    China’s retail wine market is worth around 78 billion yuan (US$12.36 billion), with imports making up around a third, according to a 2015 report from wine data analytics firm IWSR.

    While official retail sales figures have been a rare bright spot amid a stream of economic data showing China’s economy faltering, private sector surveys have shown consumer sentiment plumbing record lows in recent months.

    A crackdown on corruption now in its third year has also discouraged conspicuous consumption, hitting not just wine but also sellers of other luxury goods from LVMH and Burberry to global auto makers.

    “In 2010 everyone was screaming from the rooftops that China was the El Dorado for wine and you could become a millionaire by jumping into the business,” said Pierrick Fayoux, Shanghai-based marketing manager at French wine importer VGF China Ltd.

    “Now wine is being sold below cost, some is going bad sitting for long periods in poorly maintained warehouses and decent Bordeaux wines are going for 15 yuan a bottle.”

    To be sure, China’s wine industry has long-term potential: the market is already the world’s fifth largest, but with only 38 million wine drinkers — mostly in big cities such as Shanghai, Beijing and Tianjin — among a population of 1.4 billion, annual consumption per capita is only 5.8 liters, a fraction of the 50 liters consumed in France.

    For now though, the inventory overhang and the downward pressure on prices is making it hard to turn a profit.

    Even China’s biggest wine importer, ASC Fine Wines, has trimmed prices and taken a hit to its margins, a person with direct knowledge of the firm’s operations told Reuters.

    ASC, owned by Japan’s Suntory Beverage & Food Ltd., said the wine market was in a new slower stage of growth and that consumers were increasingly “price-conscious”.

    “We are expanding our entry-level wine selections to meet the changes in consumer demand,” said ASC’s chief executive officer Bruno Baudry in emailed comments to Reuters.

    The squeeze on prices could be better news for more affordable New World wines, with countries such as Chile and South Africa already taking more market share with wines under 100 yuan.

    “There is still demand for imported wine, but not the same wines,” said Guillaume Deglise, chief executive of Vinexpo, which organizes wine fairs to help introduce producers to China buyers.

    “Before it was mostly the luxury end of the business — up-market wines from Bordeaux. Now it’s the entry-level market.”

  • Ford Philippines hits all-time high retail sales in September

    Ford Philippines hits all-time high retail sales in September

    In a statement, Ford said its retail sales in the country rose 53 percent to 3,065 units in September, driven by the continued demand for the all-new Everest, new Ranger, EcoSport and Fiesta.

    The all-new Everest led the lineup in September, achieving an all-time monthly record total for any Ford nameplate in the Philippines with retail sales of 1,341 units.

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  • Mercedes-Benz Shakes Off ‘Dad’s Car’ Image in Indonesia

    Mercedes-Benz Shakes Off ‘Dad’s Car’ Image in Indonesia

    German automaker Mercedes-Benz is focusing on young Indonesians as part of its strategy to boost sales in the country, shaking off the “dad’s car” image along the way.

    “We’re opening up new segments that are characterized by younger buyers, people who may not have considered Mercedes-Benz previously,” Roelof Lamberts, Mercedes-Benz Indonesia’s sales and marketing director, said on Thursday.

    The company has rolled out six new models so far this year including the latest B-Class and CLA-class, catering to young entrepreneurs’ demand for more sporty and compact premium cars.

    “We are shifting generations,” said Ananta Wisesa, a Mercedes-Benz spokesman, “So, [Mercedes-Benz] will lose its dad’s car image.”

    Cars introduced this year, including the A-Class and GLA-Class, are sold for less than Rp 1 billion ($71,000), and “have seen very positive demand,” said Lamberts. The introduction of these models has helped the company buck the trend of a shrinking auto market in Indonesia amid slowing economic expansion.

    The German company sold 1,800 cars during the first seven months this year, a 20 percent increase from the 1,500 cars it sold in the same period last year.

    In contrast, total car sales in Indonesia shrunk 21 percent to 581,106 units during the period, according to the Indonesian Automotive Manufacturers Association, or Gaikindo.

    Mercedes-Benz now controls 49 percent of the premium car market, up from 38 percent in the same period last year.

    “Our strategy basically is in line with the overall Mercedes-Benz strategy, and that is to become number one in the premium segment,” Lamberts said. “In Indonesia, we’re number one. Our objective is to defend that position.”

  • Philippine banks lead in retail financial services

    Philippine banks lead in retail financial services

    Singapore-based publication The Asian Banker sees the Philippines leading the strong  growth in the retail financial services market in Asia Pacific on the back of increasing consumption and improved access.

    A study conducted by Asian Banker Research showed the income of commercial banks from retail financial services in Asia Pacific growing 77.5 percent to $824 billion by 2020 from the projected $464 billion this year.

    “Asia Pacific’s retail financial services market will be worth $824 billion by 2020. Increasing consumption and improved access to financial services in combination with mobile banking technologies, will be key catalysts in driving retail banking income between 2015 and 2020,” The Asian Banker said.

    Retail banking income was defined as business from retail deposits, mortgages, credit cards/unsecured lending, wealth management and, wherever possible, small and medium enterprises banking.

    “The ability to generate gross income in any given market is regarded as a key indicator of wallet share and a determinant of a bank’s bench strength in retail financial services,” said Mobasher Zein Kazmi, head of research at The Asian Banker.

    The study showed the Philippines is expected to book the highest compound annual growth rate and total income generated among emerging markets between 2015 and 2020 with 18 percent followed by Indonesia with a little over 15 percent, and Thailand with 15 percent.

    Malaysia is seen to post the slowest income growth with a growth rate of six percent for the five-year period.

    “Since 2014, the Philippines has outpaced China and Thailand and is becoming one of the key growth engines in the Asia Pacific,” The Asian Banker said.

    However, China would continue to generate higher earnings by 2020.

    “Currently, China’s retail financial services industry alone generates 48 percent to total regional income, followed by India with 12 percent and Australia with nine percent,” it added.

    The Asian Banker sees income from retail financial services of commercial banks in Asia posting a CAGR of 12 percent from 2015 to 2020.

    “There are, however, stark variances in growth rates between the mature markets of Korea, Hong Kong, Australia, Japan, Taiwan and Singapore and developing markets,” it said.

    On the other hand, income growth in mature markets is lower and expected to grow by an average of five percent this year and by the same amount in subsequent years until 2020.

    Developing markets have grown on average by 13 percent annually to 2015. However there have been dramatic changes since 2014.

    The fastest growing markets up to 2013 were Thailand and China after having grown by more than 20 percent annually.  Both markets, however, have been slowing down due to economic woes.

    The Asian Banker noted that retail banking income is shifting focus on high yield businesses but sees tightening of consumer banking regulations as a key threat.

    The greatest change in regulations is a shift away from a principle-based regulatory framework to a rule-based framework. As a result regulators have much more power to intervene.

    In particular, in emerging markets, financial authorities often want to control everything down to the product level, including loan pricing and fee income.

    Commercial banks have managed the impact of new regulations imposed on banks’ wealth management businesses in the aftermath of the global financial crisis, but a second wave of regulatory scrutiny, initiated in 2012, into interest rates and fee structures, compounded by recent macro-economic weaknesses, continues to pose ongoing threats to income expansion.

    “Regulators are increasingly worried about rising consumer debt so they have resorted to tightening unsecured lending, credit cards and home loans. In addition, consumer protection and optionality, which requires banks to seek a customer’s consent to opt in or out of services, are becoming key agenda items for financial regulators in this region,” Kazmi said.

    According to The Asian Banker, the most profitable banks in Asia include Bank of Mandiri in Indonesia, Union Bank of the Philippines, and Siam Commercial Bank in Thailand.

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  • Online retailer Daraz raises $55 M

    Online retailer Daraz raises $55 M

    Online retailer Daraz, which has presence in Pakistan Daraz.pk, Bangladesh Daraz.bd and Myanmar shop.com.mm, has secured EUR50 million ($55 million) in its first major financing round. 

    The investment comes from the CDC Group, the UK Government’s Development Finance Institution (DFI) focused on supporting and developing businesses in Africa and South Asia – as well as Daraz’s existing investor Asia-Pacific Internet Group (APACIG).

    Founded in Pakistan in 2012 as an online fashion business, it has since then has expanded its business model to a general marketplace for quality brands within electronics, home appliances, fashion and many other categories.

    The company said the funding will be used to continue to grow the business in existing markets and for expansion into other frontier markets in Asia.

    “Taking the e-commerce business model into these exciting markets is a fascinating journey. Although internet penetration is still relatively low, the market is developing fast and its potential is immense,” said Bjarke Mikkelsen, CEO of Daraz. “By making Daraz a success, we are not only building a great business but also creating jobs and infrastructure in the countries we operate in – that’s what makes it so exciting”.

    Daraz is part of APACIG, a joint venture between German internet platform Rocket Internet and Qatari telecommunications provider Ooredoo which began its operations in the region early in 2014.

    Today, it is one of the fastest growing internet platforms in the  region, currently 14 e-commerce companies in 15 countries.

    Hanno Stegmann, CEO of APACIG, said Daraz is one of the most promising companies in their portfolio.

    Last month, it  announced today an ambitious plan to launch one new startup company every three months, which it says is part of the strategy to build one of the largest Internet platforms in the APAC region.

    The first company to be launched as part of the  strategy will be online beauty marketplace Vaniday, starting in Australia. The marketplace offers curated selection of offers and can book treatments such as massages, hair appointments and manicures.

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  • Philippines eyed as next largest market for e-commerce firm Lazada

    Philippines eyed as next largest market for e-commerce firm Lazada

    Lazada Group, an online commerce company founded by the world’s largest Internet incubator, is eyeing to keep a double-digit growth trend for its sales and customer-based in the Philippines, which is well-positioned to become the company’s largest market.

    Part of Rocket Internet, Lazada’s e-commerce websites are present in six countries including the Philippines, Indonesia, Malaysia, Thailand, Vietnam, and Singapore.

    Lazada Philippines Chief Executive Officer Inanc Balci said in an interview with Business Bulletin that the group is eyeing to make the Philippines its largest market out of the six countries it is present in.

    “I want to make it [the Philippines] the first,” Balci said.As of now, Balci said Lazada Group’s largest market is Indonesia, while the Philippines only stand at second.

    “The e-commerce is growing in the Philippines. We have the 80 percent market share in the general retail e-commerce in the Philippines. [Here] we intend to be the market leader. I would like to grow faster. Sales is growing,” he added.

    In September alone, Balci said the company had recorded 37.7 million visits, significant number of which had actually booked their orders. “This significantly increased over the years,” he further said.

    Next month, Lazada Philippines will launch its three-year-old annual online shopping event that highlights big discounts on 200 major brands, which includes Canon, Nikon, Nescafe, Epson, Microsoft, Asus, Acer, Lenova, Milo, Pampers, Chuckie, Nestle, Unilever, among others.

    As of now, 1 million brands are being sold through Lazada and this should increase before the end of the year.

    “From 100,000 in 2012, we now have 1 million brands. That’s going to increase by several times moving forward. We proactively approach the brands,” he further said.

    From November 11 until December 12, online shoppers can avail of as much as 95-percent discount from their favorite brands in Lazada through Online Revolution.

    With its increased share in mobile app users, it is expected that this year will definitely break last year’s record in terms of online traffic for Lazada in the Philippines.

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  • WS Retail’s 10K crore sales offer peek into Flipkart’s performance

    WS Retail’s 10K crore sales offer peek into Flipkart’s performance

    WS Retail, the largest seller on India’s biggest online marketplace Flipkart, nearly tripled its turnover to Rs 10,163 crore in FY15 — more than the combined sales of top brickand-mortal retailers such as Shoppers Stop, Future Lifestyle, Tata’s Trent and Aditya Birla Group’s Pantaloons.

    Experts feel WS Retail’s numbers, which were submitted by the company to the ministry of corporate affairs earlier this week, offer a peek into Flipkart’s likely performance for the year to end-March 2015, given its dominant position on the e-tailer’s platform.

    Cutting dependence on WS retail

    Flipkart’s own annual revenue numbers are not known. “WS Retail numbers should be good barometer to the performance of Flipkart considering it gets a bulk of its sales from this seller,” said Ruchi Sally, director at retail consultancy Elargir.

    The six-year-old company, originally founded by Flipkart’s founders Sachin Bansal and Binny Bansal, sells nearly 80% of its merchandise to Flipkart. Three years ago, the Bansals sold their stake to former OnMobile Global chief operating officer Rajeev Kuchhal and a clutch of investors.

    WS Retail reported a net profit of Rs 67 lakh on sales of Rs 3,135 crore for fiscal year 2014, which was higher than Flipkart India’s revenue of Rs 2,846 crore for the same period, the numbers showed. Another company, Flipkart Internet, which earns commission and advertising revenues from sellers, posted total sales of Rs 179 crore last year. Both WS Retail and Flipkart didn’t respond to email queries sent by ET.

    Flipkart’s head of commerce Mukesh Bansal told ET last month that Flipkart was on course to sell goods worth $10 billion (Rs 65,000 crore) during fiscal 2016. The company has in the past said it had achieved $4 billion worth of gross merchandise value or GMV, which is industry jargon for sales, last year.

    For years, WS Retail was the mainstay seller on Flipkart, the one encountered most by customers shopping on its platform. However, in the last year and a half, Flipkart has sought to diminish its prominence as part of its shift away from an inventoryled model to a marketplace one, even though WS Retail remains its top seller even now. Indian laws also prevent foreign-owned internet retailers — Flipkart is registered in Singapore and a majority of its ownership is held by overseas entities — from only operating inventory-based models.

    While Flipkart has 60,000 sellers on the platform already, it is planning to double the count by March next year in an effort to convert itself into a pure marketplace much like the one its rival Snapdeal operates.

    “Flipkart has been reducing its dependence on WS Retail in its effort to simplify its business structure. It is expected that such a step and simultaneous addition of new vendors on its website directly shall automatically reduce the trading volume of WS Retail over time,” said Rakesh Nangia, founder and managing partner at tax and transaction advisory firm Nangia & Co.

    In fact, Flipkart informed several companies and brands, which sell on the site through WS Retail, to sell directly to consumers through its marketplace few months ago. However, WS Retail will continue to be the seller for Flipkart exclusives such as the Motorola and Xiaomi handsets.

    Snapdeal already has 2 lakh sellers listed on its marketplace while Amazon India has nearly a lakh sellers, although in its case, Clouttail, its joint venture with NR Narayana Murthy’s Catamaran Ventures, is its biggest vendor.

    A month ago, Flipkart bought back the logistics business of WS Retail, which has also seen exits of two shareholders — Meenu Gupta and Sujeet Kumar — who together held a 25.3% stake.

    According to WS Retail’s annual filings for fiscal year 2015, Rajeev Kuchhal owned 49.7% stake, while one of Flipkart’s early employees, Tapas Rudrapatna, controlled another 24.8%. In fact, Rudrapatna was given Rs 24 crore as a one-time bonus for ‘increasing sales beyond targets,’ said the filing.The latest shareholding pattern after these exits and logistics business sell-off hasn’t been filed yet.

  • Abolition of China’s one-child policy may boost dairy demand

    Abolition of China’s one-child policy may boost dairy demand

    Chinese like Shao, who were born in the 1980s and 1990s, when the one-child policy was most strictly enforced, say they were lonely growing up without siblings.

    The one-child policy was gradually eased in recent years as China experienced economic growth and as the country had to deal with its aging population. Historically and economically speaking, the argument was spot on. “They need to eliminate it entirely”, Mr Chen, who now lives is the U.S., said of the government.

    A skewed gender balance and a rapidly ageing workforce are among the worst symptoms of state-ordered birth control. However, things have been hitting a low point after China’s ageing population has grown to a cause for concern.

    The statement also emphasized that the nation will still uphold family planning policy, improve its population strategy and seek a balanced development of population.

    While once there may have been pent up demand for more children, experts say that as the country has grown wealthier, couples have increasingly delayed having even one child as they devote more time to other goals, such as building their careers.

    About 90 million couples will qualify to have a second child after the policy is enacted, Wang said, adding that around 60% of the qualified women were 35 years old or older.

    Couples in China will be allowed to have two children after decades of a strict one-child policy, announced the ruling Communist Party on Thursday.

    Though there were exceptions to the policy, most couples who violated it faced punishment, from fines and the loss of employment to forced abortions.

    Looking elsewhere in Asia, though, the Chinese government may find that it is much easier to “encourage” people to have fewer children than to have more.

    Critics said the relaxation of rules was too little, too late to redress substantial negative effects of the one-child policy on the economy and society.

    China’s dramatic drop in fertility in the ’70s and ’80s created a demographic time bomb that will leave the country with a smaller work force and more older citizens to care for in the coming decades.

    Reggie Littlejohn, Chairman of “Women’s Rights Without Borders” told VOA she believes the two-child policy does not stop population control.

    More mouths to feed: that means less for families to spend on consumer goods.

    In addition, China – favoring male children – has a shortage of girls and women.

    The policy will not officially change until the Chinese legislature approves it, but many Chinese couples are already excited to grow their families.

    “It might serve to address the current imbalance in the sense that if they do not boost the growth rate, then very soon, within 20 years or less, the working population will be supporting four aged parents”.

    The Credit Suisse report said that with the annual cost of raising a child estimated at 40,000 yuan (£4,100), the extra births would translate into an extra 120bn-240bn yuan in consumer spending a year, or 4-6% of China’s total retail sales.

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