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  • Jollibee takes big bite of Smashburger

    Jollibee takes big bite of Smashburger

    Asia’s largest fast food company, Jollibee, has taken a 40 per cent stake in a fast-rising American burger chain, Smashburger for US$335 million.

    Launched in 2007, Smashburger has over 335 corporate and franchised restaurants operating in 35 states and seven countries. Approximately 60 per cent of Smashburger’s outlets are company owned and operated. The company is growing at a rate of  20 per cent annually.

    Jollibee, publicly listed in the Philippines, has been actively seeking an investment in a leading US growth brand. It currently operates and franchises a network of more than 3000 restaurants worldwide under the trade names Jollibee, Chowking, Greenwich, Red Ribbon, Yonghe King, Hong Zhuang Yuan, Mang Inasal, Burger King Philippines, San Pin Wang, and Jinja Bar. Jollibee also has a 50 per cent interest in the Super Foods Group, which operates and franchises restaurants under the Pho 24 and Highlands Coffee brands throughout Vietnam.

    “We at Smashburger are excited about our new strategic partnership with Jollibee,” said Rick Schaden, chairman and co-founder.

    “As founders and entrepreneurs we both have built teams that focus on bringing the highest quality and best tasting food to our restaurant categories. [Jollibee] founder and chairman, Tony Tan Caktiongand I share a true passion for the restaurant business having opened and operated our very first restaurants, we believe our companies still cultivate that spirit today as we initiate this partnership.”

    Caktiong  described Smashburger as one of the fastest growing restaurant brands in the US.

    ”We are very excited to work side by side with the owners and management of Smashburger as we continue its growth. This acquisition will make JFC’s presence in the US more significant, going beyond the Filipino market and serving mainstream consumers in the $100 billion US burger market, a food segment which is estimated to be almost three times larger than the pizza, sandwich or coffee segment in terms of sales.

    “This acquisition will make the US one of JFC’s most important markets and drivers of long term growth along with the Philippines, China and other Asian markets abroad.”

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  • Singapore’s electricity market to be fully liberalised in Q2 of 2018

    Singapore’s electricity market to be fully liberalised in Q2 of 2018

    Singapore’s electricity market will be fully liberalised in the second half of 2018, allowing households to have more choice in their power consumption, Minister of Trade and Industry (Industry) Mr S Iswaran said today (Oct 26).

    The announcement came during Mr Iswaran’s opening address at the Singapore International Energy Week 2015 held at the Sands Expo and Convention Centre at Marina Bay Sands earlier today.

    Energy Market Authority (EMA) hopes to achieve “full retail competition” which will enable 1.3 million consumers – mostly households – to “have flexibility and choice in their electricity consumption”.

    Earlier this year on July 1, lowering the contestability threshold from 4MWh to 2 MWh allowed commercial and industrial (C&I) consumers – from large users such as petrochemical companies to smaller users like coffee shops and kindergartens – to participate in the contestable market and better manage their energy costs by purchasing from a retailer instead of remaining on the regulated tariff with SP services.

    EMA will release more details on the plans for full retail competition soon.

    The government also plans to establish a Secondary Gas Trading Market (SGTM) to allow gas buyers and sellers to trade gas on a short-term basis domestically.

    With an SGTM, EMA hopes to “enhance Singapore’s position as a hub for LNG and gas trading activities.”

    EMA will issue a consultation paper later today to seek industry feedback on the design for a domestic SGTM.

    Furthermore, EMA intends to “put out more information on the projected growth on the longer term energy market outlook in Singapore”.

    This would include information on the projected growth of electricity system demand, as well as a mix of sources coming from gas plants, solar and electricity imports by 2030.

  • Stelux warns of looming loss

    Stelux warns of looming loss

    Hong Kong headquartered watch retailer Stelux has warned shareholders it expects to post a loss in the first half year.

    Stelux owns the City Chain network of watch stores along with eyewear brands eGG and Optical 88.

    In the first quarter of this year the company reported a 7.1 per cent decline in sales. But despite a decrease in turnover due to a decline in tourist spending in Hong Kong and Macau, the company achieved an 85.8 per cent increase in sales of its fashion eyewear chain eGG in the China Mainland, a 23.4 per cent increase in City Chain sales there, and a more modest 0.2 per cent gain in its Optical 88 chain.

    Fast forward to last Friday, however, and it warned interest charges, exchange rate losses and weakening Hong Kong and Macau sales will see it record a loss for the full six months.

    It reported “a decrease in turnover and gross profit caused by weak retail sentiment… particularly in Hong Kong, Macau and Southeast Asia (with moderate turnover growth recorded in Mainland China).”

    In the six months to September 30 last year it posted a profit of more than HK$105 million (about US$13.5 million).

    “Despite the anticipated loss, the group is expected to report a positive operating profit, an improved gearing ratio (with a reduction in bank borrowings of approximately HK$130 million) and stable liquidity in the reporting period,” the statement concluded.

  • Krung Thai Bank makes profit

    Krung Thai Bank makes profit

    KTB posted 3Q15 earnings of Bt5.3bn, plunging 42% YoY and 37% QoQ. The result was 11% below our forecast but 4% below the Bloomberg consensus. This was attributable to bigger loan-loss provisioning (LLP) than was modeled. KTB set its 3Q15 LLP of Bt10.5bn against our numbers of Bt8.5bn. Pre-provision operating profit was Bt17bn, up 21% YoY but down 1% QoQ. The 9M15 earnings represent 90% of our FY15 earnings projection.

    Results highlights

    Lending was up 0.2% QoQ and 1.6% YTD—in line with our forecast. NIM for the quarter came in at 3.04%, up 3bps QoQ and 19bps, boosted by greater emphasis on the corporate and retail sectors and well managed funding cost from the previous quarter. LLP soared 270% YoY and 39% QoQ to Bt10.5bn (equaling credit cost of 2.1%). Note that the bank received a tax benefit of about Bt300m from troubled debt restructuring and extra LLP for Sahaviriya Steel Industry (SSI) in the quarter. Therefore, its corporate tax rate was down to 15% in 3Q15 from 18% in the same period last year.

    KTB’s NPL/loan ratio rose to 4.03% at end-September from 2.96% three months earlier (from SSI, and the small SME and retail sectors). Likewise, its loan-loss-coverage ratio dipped to 103% in 3Q15 from 125% last quarter. Fee income inched up 41% YoY and 12% QoQ to Bt7.3bn in 3Q15. OPEX was Bt12.2bn, an increase of 19% YoY but down 1% QoQ. KTB’s 3Q15 cost/income ratio was 44.2%, close to last quarter and down from the 45.6% reached in the same period last year.

  • Singapore’s Land Transport Authority pilots wearable technology

    Singapore’s Land Transport Authority pilots wearable technology

    Singapore commuters may soon be able to enjoy greater convenience through wearable and mobile wallet technology.

    The country’s Land Transport Authority (LTA) – in collaboration with Singtel, Sony, EZ-Link, Nets and TransitLink – has launched a trial using mobile payments and the Sony SG50 SmartBand, which features near-field communication (NFC) technology, to pay fares.

    “Insights provided by the trial will help LTA assess the performance of fare transactions using the smartband and gather feedback in assessing the potential use of wearable technology in public transit,” said LTA CEO Chew Men Leong.

    Some 200 commuters are taking part in the trial which started in August 2015 and will end in February 2016.

    Participants wear the Sony SG50 SmartBand, which is encoded with a digital contactless e-purse application (CEPAS) card designed for contactless payments on public transit. They can establish a Bluetooth connection with the Singtel mWallet app to check their band’s stored value balance and transactions while on the move.

    In addition to public transit, commuters partaking in the trial are able to use their SG50 SmartBand to make retail payments at thousands of points across Singapore. They can also track their daily activities and sleep quality, and synchronise the measurements into their smartphones via Bluetooth for visual tracking and display.

    “Like any new e-payment applications for public transport fare transactions, [the trial] needs to demonstrate that [the technology] works, is convenient and provides added value to commuters. In this light, the payment application will be assessed based on its compliance to CEPAS, public demand and results of performance tests,” said an LTA spokesperson.

    Enhancing user experience

    According to IDC Asia-Pacific government insights programme manager Gerald Wang, wearable technology can be used as an extension to existing smart government initiatives and employed to enhance the mobile experience of users.

    But for wearable technology deployment success, he said, Association of Southeast Asian Nations (Asean) governments must clearly differentiate between experience enhancements and deployment of technology for the sake of deployment.

    “Ensure line-of-business officials are convinced; leverage on their improved productivity gains as well as enhanced service experiences to help government IT departments drive the adoption of these technologies organisation-wide,” said Wang.

    He also warned that the manageability of wearables must not be underestimated.

    “Continuously monitor wearables on the network,” Wang said. “Government enterprises need to ensure the collection of information from wearables is accurately collected, securely stored, effectively analysed and deliberately shared with relevant approved authorities in government operations.”

    Corporate data should have different levels of confidentiality, he added, with only selected or approved users allowed access to the data.

    Emerging trends

    According to Wang, mobile and wearable devices, and the sensors that power them, enhance operational manageability and can provide different electronic government services.

    “Though government agencies have not yet reached a tipping point for the mass adoption of enterprise mobility solutions coupled with the growing prevalence of wearables, there is definitely a growing hype toward being ready for the emerging era of internet of things,” he said.

    According to IDC’s government insights team, several Asean governments have begun conversations, while others are participating in pilot projects aimed at testing out the viability of wearable technologies.

  • Brooks Brothers, Walton Brown seal China JV

    Brooks Brothers, Walton Brown seal China JV

    Brooks Brothers Group, America’s oldest retailer, and Walton Brown Group, have signed a 10 year joint venture to market the brand in Greater China.

    A 50/50 joint venture company has been established which will launch in January 2016 for an initial period of 10 years. It will take over the management of Brooks Brothers’ existing retail network of 90 stores in the market territory and plans to open more than 10 points of sale in the first two years across key cities in China, Hong Kong, Macau, and Taiwan.

    In addition to freestanding stores, the JV will invest deeply in a multi-channel distribution platform providing wholesale, outlets, travel retail and eCommerce channels to bolster brand presence and fuel business growth in the region.

    The move comes several months after the announcement by Hong Kong’s Dickson Concepts it would not be renewing its partnership with Brooks Brothers when it expires on December 31.

    The two companies in the new JV believe the arrangement will leverage the strengths and capabilities of Walton Brown, a subsidiary of The Lane Crawford Joyce Group, with experience in strategic retail brand management in Greater China with the global appeal of Brooks Brothers, “one of America’s most iconic clothing brands,” augmenting its dynamic growth across the Greater China region.

    The partners say that building on the success of Brooks Brothers’ ready-to-wear menswear and accessories collections, the product offerings within its women’s collection and accessories lines will be enhanced with the appointment of influential US designer Zac Posen as the creative director for women’s wear. His first women’s collection will debut in Spring/Summer 2016 and will be available worldwide.

    Claudio Del Vecchio, chairman and CEO of Brooks Brothers, said the JV will enable Brooks Brothers to develop long-term growth strategies across multiple online and offline distribution channels especially in China, one of its most important growth markets for the global business.

    “We are confident in China’s growth prospects in the premium sector for the coming years and this is the optimal time for us to position Brooks Brothers for long term sustainable growth,” said Del Vecchio.

    “With Walton Brown’s in-depth local market insights and extensive distribution capabilities and network in retail, we believe we can capture new opportunities to further deepen our relationship with Chinese consumers.”

    Walton Brown president Thomson Cheng said that in the 12 years since Brooks Brothers entered China, the brand has built a strong following of customers.

    “With the foundation in place, we believe the brand has enormous potential with the new generation of sophisticated and prosperous consumers in China and with the launch of the online business in 2016 we will be able to significantly increase reach with this consumer segment.”

    Following the formation of the joint venture, Brooks Brothers and Walton Brown will establish a corporate office and showroom in Hong Kong in early 2016.

    Brooks Brothers today operates more than 460 stores worldwide including over 130 retail stores in the Asia Pacific region, 90 of which are in Greater China.

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  • Lazada promises ‘biggest ever’ online sale

    Lazada promises ‘biggest ever’ online sale

    eCommerce giant Lazada plans a month-long mega sale in six Southeast Asian countries under its now annual promotion ‘Online Revolution’.

    Lazada, part of Germany’s Rocket Internet group, says more than 10 million products will be offered to 550 million consumers in six countries, in partnership with a raft of international and local brands.

    The Online Revolution will launch in full scale in Singapore, Indonesia, Malaysia, the Philippines,Thailand and Vietnam on November 11 and culminate in a three-day finale ending on December 12.

    Brands and merchants in Southeast Asia and other international markets such as China, Hong Kong, the US and the UK will join the sale to offer goods across 13 categories. These categories include new additions such as groceries, liquor and automotive in some markets as well as current favorites such as electronics, home & living, health & beauty, fashion, kids & toys, and travel. Brands that have signed up include Microsoft, Xiaomi, Philips, Tefal, Pierre Balmain, Desigual, Spektre Sunglasses, Date Sneakers and Gas Jeans.

    “We are going to bring the most exciting selling month of 2015 to Southeast Asia. With flash sales, best deals, exclusive promotions and app-only incentives, Online Revolution will give plenty of reasons for consumers to tune in and stay engaged,” said Maximilian Bittner, CEO of Lazada Group.

    “It is a unique opportunity for brands and merchants to reach a large audience and accelerate their growth. We are thrilled to have the strong endorsement from thousands of partners – from sellers and service partners, to banks, and telecoms companies. And, we welcome more to join us in spreading the benefits of online shopping to consumers through Online Revolution,”  said Bittner.

    During the month-long Online Revolution campaign, Lazada will feature weekly product category highlights, a curated brands’ showcase and exclusive promotions with partner banks, on top of daily deals. Beyond online, it will run a TV advertising campaign to keep the Online Revolution branding on top of consumers’ minds.

    To help sellers maximise revenue, Lazada says it has been introducing new and improved services. Its ‘Fulfillment by Lazada’ (FBL) is a network of fulfillment centers, hubs, delivery fleet and service specialists that takes care of the fulfillment of a customer’s order through to delivery, efficiently. This lowers cost for the sellers and allows them to focus on marketing and boosting their business. Lazada, recently, also rolled out a Seller Center Android app. The app comes with enhanced search, notifications and language support, on top of all the Seller Center features to help marketplace sellers manage their business on-the-go.

    Small and medium business owners will also receive support through training, such as in stock planning and packaging capacity, to prepare them for a smooth operation with the expected spike in orders. Last year, sales from Lazada’s Online Revolution on December 12 alone hit more than 10 times that of a normal day.

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  • Sa Sa profits down more than half

    Sa Sa profits down more than half

    The Hong Kong-based company has issued a warning for investors to prepare for a profit cut to around HK$170 mln

    Cosmetics sale company Sa Sa International Holdings Limited is expecting profits to plunge more than 50 per cent for the six months ended September, according to a filing sent to Hong Kong Stock Exchange.

    These results are explained by ‘the worsening operating environment of the retail sector which has led to significant drops in both sales and gross profit and reduced operational efficiency’.

    According to the previous interim report of the company, for the six months ended September 2014, Sa Sa posted a profit of HK$339.76 million (US$43.84 million), which at that time was also down by around 5 per cent from HK$357.38 million. Now, the profit for the period is expected to be less than HK$169.88 million.

    Regarding sales for the second quarter of fiscal 2015/2016, Sa Sa has announced in another filing that turnover for the Hong Kong and Macau market declined 13.2 per cent year-on-year to HK$1.59 billion. Over this period, same stores sales dipped 10.1 per cent, while average sales per transaction declined 7.9 per cent to HK$346.

    Second quarter results
    In the filing sent to the Hong Kong Stock Exchange with data for the second quarter, the company says ‘overall consumer sentiment and Mainland Chinese tourist arrivals continued to be adversely affected by a number of factors with no significant signs of improvement’.

    ‘The strength of the Hong Kong dollar and the weaker yuan adversely affected the attractiveness of shopping in Hong Kong for both local consumers and Mainland Chinese visitors’, the company explains. ‘The impact of the ‘one-trip-per-week’ policy has gradually gained momentum, leading to a decline of 13.1 per cent and 10.1 per cent in the Group’s retail sales and same store sales in Hong Kong and Macau markets during the second quarter, respectively.’
    It is also explained that the number of transactions of Mainland Chinese customers declined 4.1 per cent, and that their average sales per transaction went down 12.5 per cent year-on-year, dragging down the overall performance of the group.

    Regarding the group performance, including Mainland China, Singapore, Malaysia and Taiwan markets, turnover declined during the second quarter of the year, 12.4 per cent year-on-year to HK$1.96 billion. Of the group’s 281 shops and counters, 110 are in Macau and Hong Kong.

  • Croesus to buy retail mall in Japan for S$95.2m, proposes rights issue

    Croesus to buy retail mall in Japan for S$95.2m, proposes rights issue

    Mainboard-listed Croesus Retail Trust has agreed to acquire Torius Property, a completed retail mall in Japan, for eight billion yen (S$95.2 million).

    The purchase price is at a 3.7 per cent discount to the property’s valuation of 8.3 billion yen (S$98.8 million).

    The property is a large-scale suburban retail mall in the satellite town of Hisayama-machi of Kasuya-gun, which is about 13 km from central Fukuoka City in Fukuoka Prefecture, on Japan’s Kyushu Island.

    Comprising 36 single or double storey buildings, Torius Property occupies a land area of 257,173 square metres and has a net lettable area of 77,032 sqm.

    It will be the eighth property in Croesus Retail Trust’s portfolio and marks its first foray into Kyushu Island.

    The purchase will be funded by a combination of debt and equity financing. Four billion yen will come from new Japanese five-year bonds, while a rights issue is expected to raise another $69.7 million.

    The rights issue comprise 114,222,677 new units based on 22 rights units for every 100 existing units at an issue price of 61 cents per rights unit.

    Croesus said the pro forma net property income (NPI) yield for Torius Property is 7.8 per cent, compared to the actual NPI yield of 5.3 per cent for its existing portfolio, for its financial year ended June 30, 2015.

    The pro forma distribution yield of the enlarged portfolio would increase to about 9.41 per cent compared to 9.4 per cent currently.

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  • Garuda Indonesia Reports US$51.4 Million Third Quarter Earnings

    Garuda Indonesia Reports US$51.4 Million Third Quarter Earnings

    Garuda Indonesia booked a net income of $51.4 million through the third quarter 2015, an increase of 123.4% compared to the same period last year when it incurred a loss of $220.1 million.

    Garuda Indonesia President and CEO M. Arif Wibowo said that the Company also increased total revenue from $2.83 billion through the third quarter 2014 to $2.84 billion during the same period in 2015. Meanwhile, total expenses dropped from $3.08 billion to $2.72 million.

    “Improvements in the Company’s performance are the result of strategic business development measures being carried out through the ‘Quick Wins’ program, as well as a tight cost efficiency policy that was put into effect at the beginning of the year,” he said.

    Arif, who is also the Chairman of INACA (Indonesia National Air Carriers Association), further explained that this achievement came when the airline industry is facing huge challenges, from a sluggish economy to a number of “force majeures” or natural disasters, such as volcanic eruptions and haze.

    Speaking of Garuda Indonesia’s ongoing flight network development, Citilink Indonesia’s former president said that the Garuda Indonesia Group (including Citilink) together carried a total of 24.55 million passengers during Jan-Sept 2015, or an increase of 17.5% compared to 20.89 million passengers carried during the same period in the previous year.

    Garuda Indonesia carried 17.69 million, comprising 14.51 million domestic passengers and 3.18 million international passengers, through the third quarter 2015, whereas it carried 15.56 million passengers during the same period in 2014. Its subsidiary, Citilink Indonesia, transported 6.87 million passengers between Jan-Sept 2015, an increase of 28.8% from the 5.33 million passengers carried in the same period in 2014.

    Garuda Indonesia and Citilink flight frequency in the domestic and international sectors rose from 165,642 fights in the third quarter of 2014 to 186,105 flights in the same period of 2015. In addition, Availability Seat Kilometer/ASK increased from 36.9 billion in 2014 to 38.75 billion in 2015.

    Garuda Indonesia also succeeded in increasing Seat Load Factor/SLF to 77.3% in 2015 from 70.7% in 2014. In terms of on time performance (OTP), Garuda Indonesia achieved an OTP of 88.2% in 2015, with an aircraft utilization of 09:11 hours.

    Through the third quarter 2015, Garuda Indonesia was also able to increase its market share in both the domestic and international markets. In that time, Garuda Indonesia’s domestic market share increased to 44% from the previous 37% in 2014. Meanwhile, Garuda’s international market share from Jan-Sept 2015 reached 28%, an improvement from the previous year’s 22%.

    The Garuda Indonesia Group operates a total of 181 airplanes to date, consisting of eight (8) Boeing 777-300ER, twenty-two (22) Airbus A330-200/300, two (2) Boeing 747-400, ten (10) ATR72-600, fifteen (15) Bombardier CRJ1000 NextGen, eighty-eight (88) Boeing 737-300/500/800NG, and thirty-six (36) Airbus A320, with an average age of 4.7 years. By the end of 2015, the Group will operate a total of 187 airplanes, of which 143 are Garuda Indonesia’s and 44 are part of the Citilink fleet, with an average age of 4.3 years.

    To anticipate the impact of the Rupiah’s weakening exchange rate against the US Dollar, since the first quarter 2015 Garuda Indonesia has signed hedging contracts using “Cross Currency Swaps” with several banks, on Rupiah loans into US Dollars amounting to a total of Rp2 trillion.

    By carrying out the Cross Currency Swap, the company will be able to avoid or minimize the risk of a rise in operational costs if paid in Rupiah due to the weakening of the Rupiah exchange rate against the US dollar. This is due to the fact that an airline’s operational costs that include the purchase of spare parts, aircraft maintenance, and aircraft leasing are mostly conducted in US dollar AS.

    The company is still watching market developments and at the right moment will again hedge and use Cross Currency Swap to leverage the Rupiah. This is part of the company’s ongoing Risk Management measures based on the prudence principle. Routine hedging transactions against IDR earnings and USD fuel costs have added to the risk management’s work load in the midst of an adverse economic condition at global, regional and national levels.

    Moreover, Garuda Indonesia was able to obtain new sources of funding through more competitive cost financing, and in May 2015 issued a 5-year Global Sukuk Bond worth USD 500 million with a coupon of 5.95%.

    In line with the airline’s continuous service development program, Garuda Indonesia’s cabin crew was once again presented with the “The World’s Best Cabin Crew 2015” award from Skytrax – the London-based independent airline and airport review specialist, for the second consecutive year, after beating other big players in the airline industry. During the “Skytrax Award 2015” event, Garuda Indonesia also came in eighth place in the “World’s Best Airline” list.

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  • Vietnam e-commerce market growth to be led by online retail market

    Vietnam e-commerce market growth to be led by online retail market

    According to the Research’s recently issued report “Vietnam E-Commerce Market Outlook to 2019 – Driven by Internet Penetration and Smartphone Usage”, e-commerce managed to gain some attention in Vietnam only after 2011. The retail market in Vietnam is considered one of the most dynamic markets in the South East Asia with such a high growth rate. Hanoi and Ho Chi Minh City are ranked in the top 10 cities in the entire Asia for retail expansion. Hanoi ranked third after Beijing and Shanghai as the city with liveliest retail market.

    Vietnam is one of the top three countries with the highest rate of growth of internet and mobile phone subscribers in Vietnam, with more than four million people using the internet a day, offering great potential for online shopping development.

    In 2014, Vietnam had a total population of 90.7 million out of which 35.4 million people have access to internet, making the internet penetration rate of 39%, amongst the highest in the region. Though the E-commerce market is not very old, the country has many big players such as Lazada, Hotdeals, Vatgia and others which are driving E-commerce in Vietnam.

    Vietnam E-Commerce is one of the fastest-growing E-commerce markets in South East Asia. Cash on Delivery in Vietnam is the most preferred mode of making payments online.

    Vietnam has great potential to grow its E-commerce, especially after investors shifted attention from China towards Vietnam for the next manufacturing hub in the east. Vietnamese are digitally attuned, especially in urban parts of the country which is the main target audience for  E-commerce players, at least in their initial and growing phase.

    The online retail market of Vietnam is driven by major players such as Lazada and Amazon along with local players such as tiki, Vatiga, Zalora and others due to their focus on localized content.

    In 2014, the online retailing market contributed more than 65% in the overall B2C market of Vietnam. Constant innovation, launch of newer brands online, proliferation of affordable smartphones coupled with rise in broadband access have largely propelled market growth.

    The online retail market has been segmented into clothes, shoes & cosmetics, technology Kitchen and home appliances, books and stationery, CD’s & DVD’s, mother & baby products and others.

    The Vietnam gaming industry is the biggest in the entire South East Asia which gives its online gaming market an edge. Vietnam Online Entertainment & Services booking market has attained small but significant growth in overall e-commerce market.

    The concept of online entertainment has become prevalent since the rise in internet penetration in Vietnam, owing to the emergence of websites offering online booking of movie and event tickets as well as professional services.

    The rising share of online entertainment and services booking is supported by the fact that more players are entering the market with different business models to tap the customer base.

    Ken Research is a research and information service company operating with a network of partner firms across the US, Asia and Europe.

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  • New Burberry collection premieres on Snapchat

    New Burberry collection premieres on Snapchat

    Burberry first launched its Womenswear Spring/Summer 2016 collection on Snapchat.

    As finishing touches were being made in Burberry’s headquarters in London, looks from the collection were shared live on the mobile platform.

    The colletion include classic coats and functional pieces mixed with elements of regalia including metallic cording, crested buttons and hand-embroidered military motifs. English lace and floor length satin dresses were paired with leather biker jackets, and regimental tailoring with tie-dye tulle. There’s also the Burberry Rucksack in gabardine-constructed nylon and the Belt Bag in black English suede.

    Burberry followers were offered a glimpse into the brand’s design studios, and a special appearance by Anna Wintour receiving her invitation to the show.

    The live show took place the following day in its custom-built show venue in London’s Kensington with British singer Alison Moyet performing with a 32-piece orchestra conducted by Joe Duddell. But it also featured a Snapchat-curated montage of crowd-sourced Burberry show related video and imagery, giving followers a complete view of the event – from the red carpet to the backstage

    British singer Alison Moyet performed the live soundtrack to the show, accompanied by a 32-piece orchestra conducted by Joe Duddell from an orchestra pit in the centre of the runway. The performance was filmed for Burberry’s channel on Apple Music. The full show soundtrack, “Alison Moyet Live for Burberry”, will be available to purchase through the iTunes Store and for streaming through Apple Music.

    Meanwhile, the company announced it will be also offering a selection of its make-up collection, through Kakao Giftshop and LINE in Japan.

  • Japan’s value fashion brand basks in Disney tie-up

    Japan’s value fashion brand basks in Disney tie-up

    Fast Retailing Company Chairman Tadashi Yanai said Walt Disney’s new park in Shanghai will help his Uniqlo casual wear brand expand in China, shrugging off concerns over an economic slowdown in the Japanese retailer’s largest overseas market.

    “The opening of the Shanghai Disneyland gives both of us, Uniqlo and Disney, a business opportunity,” Chairman Tadashi Yanai said in Shanghai, where Uniqlo will open a new Disney-inspired concept store. “Our business is getting absolutely no impact” from China’s slowdown, he said.

    Uniqlo will devote an entire floor at its six-storey China flagship store in central Shanghai to products co-designed with Disney. A human-sized Mickey Mouse statue greets visitors to the store, where T-shirts and toys depicting characters such as Tinker Bell, Woody of Disney Pixar’s ‘Toy Story’ animated films, and Darth Vader from the ‘Star Wars’ movies are on display.

    Japan’s richest person, Yanai plans to open 100 stores a year in China as Uniqlo competes with Hennes & Mauritz AB’s H & M and Inditex Sa’s Zara to win over consumers in the world’s most-populous country. The Japanese retailer’s design tie-up comes as Disney prepares to open its $5.5 billion Shanghai theme park next year, its biggest foreign investment and a bet on the country’s booming middle-class.

    The Disney collaboration should help Uniqlo boost sales in China “as buzz builds around the opening of Shanghai Disneyland,” said Bloomberg Intelligence retail analyst Thomas Jastrzab. “Expanding store-specific limited edition merchandise offerings should help Uniqlo increase regular foot traffic and improve customer loyalty.”

    Fast Retailing shares are up by 6.3 per cent so far this year, compared with the 3.3 per cent gain in the benchmark Topix index.

    Uniqlo has about 360 stores in mainland China, the most by country outside Japan, where it has almost 850 shops. The company plans to expand its Greater China network, including mainland China, Hong Kong and Taiwan, to 1,000 outlets.

    China is a key market for Fast Retailing as Yanai targets to build Asia’s biggest clothing retailer into the world leader, with a target of 5 trillion yen in sales by 2020 from its forecast of 1.65 trillion yen for the fiscal year ended August 31.

    Yanai said demand for Uniqlo products will increase amid an economic slowdown in China. Everyday clothes with basic designs and advanced materials that Uniqlo sells at affordable prices fit well as China shifts its focus to consumer purchasing from manufacturing, he said.

    “An economic slowdown in China could boost Uniqlo’s sales, particularly as shoppers increasingly look for value-for-money when purchasing clothing essentials such as T-shirts and pants,” Bloomberg’s Jastrzab said.

    China’s apparel and footwear market is highly fragmented, with market leader Bestseller AS, owner of brands such as Jack & Jones and Vera Moda, holding a 1.7 per cent market share by value in 2014, according to Euromonitor International. Uniqlo ranks eighth with 0.6 per cent, while Inditex is ninth with 0.5 per cent and H & M is out of the top 10 with 0.4 per cent.

    “Our concept of manufacturing is fundamentally different and unique,” said Yanai. “We don’t chase trends, but we would rather want to incorporate fashion into our basic clothes.”

  • Largest 3D printing factory in SEA opens in Singapore

    Largest 3D printing factory in SEA opens in Singapore

    The largest commercial 3D printing facility in South-east Asia opened in Singapore today (Sept 28), capitalising on the rising demand for such services.

    Launched by NASDAQ-listed ­Ultra Clean Asia Pacific (UCT), which develops and supplies systems for the semiconductor industry, the UCT Additive Manufacturing Centre will target business sectors such as the aerospace, dental and medical industries. It will also offer consumer services.

    The centre, which cost more than S$5 million to establish, has 15 sets of 3D printers. There are ­12 ­employees at the facility at present, with plans for that number to double by next year, UCT said.

    “The establishment of UCT’s ­additive manufacturing facility ­reflects Singapore’s progression ­towards advanced manufacturing and engineering,” said Mr Lim Kok Kiang, Assistant Managing Director of the Singapore Economic Development Board, which supports the facility.

    “Companies can tap on Singapore’s base of skilled engineering talent, ­industry-focused public research and development ecosystem … to ­develop better products and services to serve their growing Asian customer base.”

    The Singapore Government in 2013 announced plans to set aside S$500 million over five years to support a “future of manufacturing” programme, which includes 3D printing.

    Such 3D printing functions much like conventional 2D printing. But instead of printing a flat image, a 3D printer extrudes material through a nozzle, layer by layer, to create a physical ­object.

    Although it has been around since the late 1980s, technological improvements have made the service more affordable, driving up demand.

    In Singapore, ­retail shops have reported ­increased requests from consumers seeking to print products, from figurines to jewellery.

    Mr Lavi Lev, senior vice-president of the Asia Division at UCT, added that 3D printing allows individuals and companies to manufacture parts with no capital equipment investment.

    “It allows large corporations to ­increase their R&D pace through rapid prototyping. In particular, the medical and aerospace sectors are ­using 3D printing extensively,” he said.

    For instance, he explained, if someone breaks a bone, they can take an X-ray or CT scan of it, and 3D print a bone implant.

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  • Philippines’ BDO sets up first GCC branch

    Philippines’ BDO sets up first GCC branch

    Manila-headquartered BDO Unibank, the largest bank in the Philippines, has become the first Filipino bank to set up an office in the Gulf Cooperation Council (GCC) where it will operate within the premises of the UAE’s Dubai International Financial Center, a financial free zone and one of the largest financial hubs in the Middle East.

    The establishment of a GCC office is a reaction to the growing number of Philippine expats in the region and their banking needs, Nestor Tan, president and CEO of BDO Unibank, explained. Filipinos form one of the largest expat communities in the GCC, with an estimated 700,000 of them living and working in the UAE. More than 1.2mn are said to stay in Saudi Arabia and over 200,000 in Qatar, and all are the source of significant money flows back to the Philippines.

    “Setting up a representative office in the Dubai International Financial Center was driven by our objective to further widen our overseas network to provide support to Overseas Filipino Workers (OFWs) and residents,” Tan said, adding that “the expansion into Dubai will boost our capability to service the needs of our countrymen in the entire Middle East and, hopefully, make the bank a catalyst for the progress of financial inclusion of the expatriates in the Philippines.”
    The new branch comes on top of several partnerships BDO Unibank already has in the Gulf. It struck a deal with Emirates NBD in January this year to provide quick money transfer services to the Philippines. It also cooperates with UAE Exchange, Al Ansari Exchange and Al Ghurair Exchange for remittance services, as well as with Gulf Exchange in Qatar and other banks and financial service providers in Saudi Arabia, Oman, Kuwait, Bahrain and Jordan.

    OFWs are the third largest source for remittances globally, with $28bn sent back home in 2014, only being topped by Indians and Chinese who sent home the biggest chunk at $70bn and $64bn, respectively. With regards to Filipino remittances, estimates are that more than half of total remittances to the Philippines are originating from the GCC, making it a huge business for regional money remittance services.

    The new branch in Dubai, however, aims at widening the scope of banking services on offer for Filipinos, Tan indicated, as well as at extending the reach of BDO Unibank’s portfolio within GCC countries as the bank also wants to address possible Philippine expat and Middle East investors and provide more sophisticated financial services than just remittances. The bank offers a variety of corporate, commercial and retail banking services, including traditional loan and deposit products. This is in addition to treasury, trust banking, private banking, wealth and cash management, leasing and finance, insurance, retail cash cards and credit card services.

    BDO Unibank – its full name is Banco de Oro Universal Bank – was founded in 1968 as a small savings bank in Manila and became a universal bank only in 1996. Today, it has over 870 branches in the Philippines and one other foreign branch in Hong Kong. It is one of the many banks owned by Chinese-Filipino businessmen in the Philippines, namely tycoon Henry Sy – listed by Forbes Magazine as the richest man in the Philippines – through his conglomerate SM Group of Companies, one of the country’s largest business groups with activities spanning from retail, mall operations and property development to financial services.

    Since 2001, the bank grew through remarkable mergers and acquisitions, among them the Philippine operations of Banco Santander, Citibank, UOB, Deutsche Bank and GE Money. In March 2008, it was listed on the Philippine Stock Exchange. Its main competitors on the home soil are Metrobank, owned by Chinese-Filipino business tycoon George Ty, and Bank of the Philippine Islands (BPI), the oldest bank in the Philippines and a subsidiary of Ayala Corp, the country’s largest business conglomerate majority-owned by the influential Ayala family, which is of Spanish descent.

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