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  • Grana opens first permanent store

    Grana opens first permanent store

    Online fashion startup Grana has opened its first permanent physical store as it tries a new way of ensuring clothes fit the customers who order them.

    The new 1300 sqft store in Sheung Wan is branded The Fitting Room. It’s a unique hybrid retail concept, allowing customers to try a garment on, then buy clothes online instore for delivery to home or collection later in-store.

    While customers can try clothes on and see the styles first hand, they cannot purchase clothes from the store and take them home immediately.

    It aims to address the problem of online shoppers returning goods because they don’t fit, or because they don’t consider their purchase matches the colour or style of what they saw online.

    Grana is the creation of Australian Luke Grana, who was inspired by the high quality of t-shirts he came across during a trip to Peru. The site was developed with a unique business model in mind – in Grana’s own words “high-quality fashion at disruptive prices”.

    “Our business model is a little bit different; we deal directly with fabric mills instead of going through distributors or agents. Also, by operating online, we don’t have to pay rent. So when fashion retailers put in mark-ups along the way, our pricing is really simple: each of our shirts cost US$6, we retail that for US$12; jeans are US$20, we sell that for US$40. It’s a really honest and transparent pricing model and I think that’s what our, Generation Y customers prefer.”

    Of the new Sheung Wan store, Grana observes: “We bring together the best of two shopping worlds for a unique hybrid experience. Our customers can receive the tailored customer service and interaction that only a bricks-and-mortar location can provide, but with the ease of online purchasing.”

    Grana says similar hybrid stores are now being considered for Australia and the US.

    The new store is located at 108 Hollywood Rd, Sheung Wan, Hong Kong.

    Grana Hong Kong store inside

  • Korea Fashion Week extends Alibaba’s trade cooperation

    Korea Fashion Week extends Alibaba’s trade cooperation

    Chinese e-commerce giant Alibaba Group launched its Korea Fashion Week with its Taobao, Juhuasuan and Tmall online platforms in Seoul.

    Alibaba pledged to strengthen its exploration of overseas markets and to ink agreements with overseas brands to jointly explore the market, the report said.

    Imported Korean products have achieved annual sales of more than 10 billion yuan (US$1.6 billion) on Alibaba’s online retail platforms, according to statistics released by the company. Best-selling imports include beauty products, women’s clothing, daily life goods and baby products, accounting for 60% of the total market for imported Korean goods, according to statistics.

    The two nations have repeatedly announced moves to boost bilateral trade. In March, the two signed a free trade agreement. In addition, South Korea became one of the top destinations for Chinese tourists traveling abroad, the report said.

    In mid-May, Alibaba chair Jack Ma visited Seoul for the opening ceremony of the group’s Korean shop, indicating more Korean brands and products can reach Chinese consumers through the Alibaba platform.

    Samsung C&T, South Korea’s largest conglomerate with interests in construction, electronics, chemicals, finance and numerous other fields, has already moved three of its apparel brands — Beanpole, Rapido and Mvio — into the Chinese market through Tmall. It plans to cultivate China as its second domestic market, Samsung said.

    Samsung has annual revenue of US$30 billion.

    South Korea’s Eland Group began cooperating with Juhuasuan and Tmall in 2013, and reached sales of over 300 million yuan (US$47 million) last year. The group is expected to double sales to more than 600 million yuan (US$94 million) this year.

    The popularity of Korean TV dramas in China has sustained demand for Korean clothing, with 80% of the 4.32 million Chinese tourists to South Korea in 2013 shopping for clothes, shoes and bags.

    More than 200 Korean fashion brands have joined the Alibaba fashion week in Seoul, with most of them aiming to enter the Chinese market via the Alibaba retail platform. Zhang Jianfeng, president of Alibaba’s retail group, said he hopes to introduce Korean brands to Chinese consumers through their cooperation.

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  • Apple retailer iBox to focus on regional markets

    Apple retailer iBox to focus on regional markets

    iBox, one of Indonesia’s largest resellers of Apple products, plans to open six more retail stores by the end of 2015, mostly focusing on regional areas that are potential markets for Apple products.

    Cities on the retailer’s sights include Yogyakarta, Balikpapan and Manado, showing its effort to try and capture markets outside of major cities, particularly in Java.

    Herman Wong, director of iBox in Indonesia, elaborated that the retailer would increase the number of its nationwide retail stores to 48, from the current number of 42 to extend its reach within regional markets.

    He described the relative market for Apple products in Indonesia as still very segmented within the upper middle- to high-income bracket demographic, adding that a lack of proper awareness on the usage and capabilities of Apple’s hardware and software is what kept the giant US brand from settling in that segment.

    “For upper middle-income people in regional cities, their purchasing power would be slightly better than those of larger cities due to the lower costs of living and of goods in general,” he told on Tuesday.

    Herman also said that because Apple’s principal products, such as the iPhone and the iPad, were majorly based on data and Internet usage, and with many parts of Indonesia lacking adequate data infrastructure, Apple’ s national penetration remained very minimal.

    “Many Apple users in Indonesia are still concentrated within Java, particularly in major cities, where data infrastructure is more developed than in other areas. One way to expand awareness about Apple products is to also open training centers and provide training sessions on how to use the software and hardware,” he added.

    iBox distributes up to 40 to 45 percent of all Apple products in Indonesia. PT Data Citra Mandiri, a subsidiary of publicly listed cellphone distributor PT Erajaya Swasembada, is responsible for operating and supplying iBox stores.

    Regarding the availability of newer Apple products in Indonesia, Herman mentioned that the Apple Watch smartwatch, which was released in April, may be available in iBox stores by December. However, he could not confirm the release dates for the recently announced iPad Pro or iPhone 6S.

    Erajaya Swasembada marketing and communications manager Djatmiko Wardoyo said the strong US dollar and weak domestic economic conditions had not significantly impacted sales owing to the fact that the market for Apple products remained segmented into the upper middle- to higher-income bracket buying for the “brand” value.

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  • Zalora Indonesia plans to expand marketplace to boost sales

    Zalora Indonesia plans to expand marketplace to boost sales

    Zalora’s Marketplace initiative was launched last year to give an online platform to independent designers and sellers, who can create their own branded storefront within the retailer’s site.

    The company currently manages 500 small medium enterprises (SMEs) and aims to increase these numbers significantly in the coming years.

    Managing director of Zalora Indonesia Anthony Fung, Marketplace is become a promising business in Indonesia following the government’s plans to boost SMEs or startup companies in the country.

    Speaking at a press conference, Fung said, the company was looking at ways to boost the customer base through mobile phone users.

    “We have seen a big shift in consumer behavior. We are investing a lot of money in marketing and add more people to do mobile apps,” he told reporters at a press conference at Zalora’s office in Jakarta.

    The company said, a lot of its customers actually access the e-commerce platform using their smart mobile phones. Hence, the company will invest more to maintain mobile apps. According to the Zalora’s head of marketing, Jo Bjordal, mobile users in Indonesia are below 1 per cent of total retail users while in China the figure is 8 per cent. In five to10 years from now, he said, Indonesian mobile users will reach that level (8 per cent).

    In Asia, Zalora has drawn up marketing campaigns and promotions to boost sales in the upcoming festive season. Zalora plans to hold several events to boost their sales in coming months in Indonesia and Southeast Asian countries. In Indonesia, Zalora will hold a month-long discount called Zalora Great Sale starting October 6.  Zalora will hold 11/11 Online Revolution on November 11 in collaboration with China’s Alibaba, Cyber Monday, Black Friday, Christmas sale November 27 to December 25, and National Online Shopping Day on December 12.

    Bjordal said, last year, during the Zalora Great Sale programme, the orders saw a 10-fold increase in one day compared to regular days.

    Zalora is a part of Global Fashion Group–which counts AB Kinnevik and Rocket Internet as lead investors–that operates through five leading fashion e-commerce companies, India’s Jabong, Latin America’s Dafiti, Russia’s Lamoda, Namshi in the Middle East, and Zalora in South East Asia and Australia.

    “We have a footprint around the world today. We are the number one fashion e-commerce platform in emerging markets. Zalora now has presence in Indonesia, Singapore, Malaysia, Thailand, Philippines, Vietnam and Hong Kong,”  Fung stated.

    Zalora started its Indonesian operation in 2012.

    So far, Fung said, Zalora offers 1,200 brands in Indonesia and there were plans to increase this number to 3,000 over the next six months.

    He noted it was easier now to add brands as consumers were now familiar with Zalora brands.

    The company revealed that 70 per cent of Zalora customers were female in the 18-40 years bracket.

    Warehouse and Brands

    Zalora Indonesia, which set up its new warehouse in Cibitung, Bekasi, West Java province in April this year, claims the warehouse can store up to 2 million products, making it possibly the largest such facility in the country. Zalora has a physical store in Kota Kasablanka and also in HK and Philipines.

    Zalora partners with over 1,000 local and international brands. Zalora plans to invest in the merchandising market and acquire local brands in Indonesia. Zalora will continue to be aggressive in brand acquisition, Anthony Fung said.

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  • Glambot sells users’ pre-owned makeup online

    Glambot sells users’ pre-owned makeup online

    Most women have a few pieces of makeup lying around at home that they never use — a lipstick that is the wrong color or an eyeshadow set that doesn’t suit their skin tone. Now, Glambot is an online cosmetics store that resells users’ pre-owned makeup. The startup purchases used cosmetics from members and sells it online at a reduced price, enabling customers to profit from their unwanted items.

    To begin, customers send a minimum of 20 pre-owned items to Glambot. Every piece is then examined and sanitized and repackaged. Customers can earn different amounts depending on the type, brand, age and level of use of their makeup, and they can earn 30 percent more if they take their fee in Glambucks — store credits for use on the website. Glambot then prices the items at a discounted price — sometimes as much as 80 percent off — and sells them via their website.

    Numerous professionals have questioned how safe and hygienic used makeup can ever truly be, but Glambot insists that their multiple sanitization techniques — including the application of heat, the use of various alcohol solutions, detailed layered product removal, and the use of natural emollients — make the products fit for consumers.

    Are there other overbought products that could be resold in this waste-reducing way?

  • Apple Begins Hiring for Flagship Chinese Retail Store in Macau

    Apple Begins Hiring for Flagship Chinese Retail Store in Macau

    Apple has posted several job listings for an upcoming retail store in Macau, a Special Administrative Region of China. The store is looking to fill Specialist, Creative, Genius, Store Leader and Manager positions, in addition to hiring for the Apple Store Leader Program and multiple business-related positions.

    Chinese-language newspaper Macao Daily reported in June that Apple is planning to open a flagship store in Macau, which is located across from Hong Kong, but the news went largely uncovered by mainstream media. At the time, the report claimed that Apple had not finalized a location for the upcoming store.

    Apple-Store-Macau
    Apple celebrated the grand opening of its Apple Store in Brussels today, while two new Apple Stores also open in Nanjing, China and Florence, Italy today and September 26 respectively. Apple now operates over 460 retail stores worldwide.

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  • SHOW DC Invests US$265 million to Open Thailand’s First Retail & Entertainment Mega-complex

    SHOW DC Invests US$265 million to Open Thailand’s First Retail & Entertainment Mega-complex

    SHOW DC Corp Ltd., recently, announced it will open Thailand’s first retail and entertainment mega-complex in June 2016 with a total investment of US$265 million and aims to attract 100,000 visitors a day. The landmark development combines spectacular entertainment facilities with a rich mix of retailing and food & beverage. Located on almost 4.5 hectares in the heart of Bangkok’s Rama IX entertainment district, the project has a massive 150,000 square metre gross floor area that also includes the world’s largest ‘K-Town’ outside of Korea.

    Mr. Chayaditt Hutanuwatra, Chairman of SHOW DC Corp Ltd., said, “We are the first to bring to Thailand the ‘Shop & Enjoy’ concept that combines great shopping and eating with mega-entertainment, in a single complex. Visitors can indulge in the best of shopping, eating and culture from Thailand and the region. At the same time, they can enjoy Thailand’s most sophisticated entertainment offerings with a state-of-the-art Performance Hall for 5,000 people, and a 5,000 square metre Sports Arena for Asian sports entertainment that seats 1,500 people. There is also a 5,000 square metre Fantasy Dreamscape cultural walk-through phenomenon called ‘Himmapan Avatar’ that brings to life dazzling Thai legends through immersive 4D experiences using the most advanced light, sound and holographic technologies.”

    Mr. Chayaditt said that 60% of the lettable space at SHOW DC has already been leased. Among its anchor tenants is YG Entertainment – one of Korea’s top star-maker entertainment companies which is behind global K-Pop sensations such as BIGBANG, Psy, and 2NE1. YG Entertainment will operate a 5,000 square metre rooftop K-Pop culture and entertainment park with hip bars and eateries.

    “As part of our emphasis on presenting the richness of Asia, SHOW DC has an expansive 10,000 square metre Asian Food Street dedicated exclusively to restaurants. Next to that, inside the K-Town are large areas devoted to Korean fashion (K-Fashion), Thailand’s most extensive offering of Korean beauty products and services (K-Beauty), as well as celebrity food and beverage outlets, such as Psy’s ‘Psy Ramen’, and ‘After Rain’, inspired by global K-Pop sensation ‘Rain’,” Mr. Chayaditt said.

    Ms. Praparwarn Waeladeevong, Vice Chairperson of SHOW DC Corp Ltd., said, “We are the first in Thailand to design facilities on this scale specifically to handle a high number of international travellers. We have invested heavily in building generous bus parking facilities as well as carefully mapped people flows within the complex to ensure comfort and convenience to all visitors, all the time.”

    Ms. Praparwarn said that visitors to Thailand are expected to reach 37 million people a year in the next five years, and that the creation of landmark lifestyle destinations such as SHOW DC give international visitors an exciting one-stop destination for shopping and entertainment.

    One of SHOW DC’s special facilities for international visitors is a large VIP Traveller Lounge where visitors can spend time on their last day after they check-out from their hotels.

    “They can leave their bags, take a shower, or rest after checking-out from their hotel and prior to a night flight. In addition, travellers can use SHOW DC’s complimentary shuttle transport services to Bangkok’s airports,” Ms. Praparwarn said.

    Vice Chairperson added that because SHOW DC is a major new landmark in ASEAN it will help boost Thailand’s position as the shopping and entertainment capital of the ASEAN Economic Community.

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  • Sino Land Named ‘Best Developer Overall in Hong Kong’ by Euromoney for the Second …

    Sino Land Named ‘Best Developer Overall in Hong Kong’ by Euromoney for the Second …

    Sino Land Company Limited has been named the ‘Best Developer Overall in Hong Kong‘ at the eleventh annual global Euromoney Real Estate Survey, the second consecutive year it has received the coveted award, in addition to being voted the best in all other eight developer categories, namely, ‘Best Residential Developer in Hong Kong‘, ‘Best Retail Developer in Hong Kong‘, ‘Best Office/Business Developer in Hong Kong‘, ‘Best Leisure/Hotel Developer in Hong Kong‘, ‘Best Mixed Developer in Hong Kong‘, ‘Best Industrial/Warehouse Developer in Hong Kong‘, ‘Best Advisor & Consultant Overall’ and ‘Best Advisor & Consultant for Agency/Letting Hong Kong’.

    Conducted by leading global finance magazine Euromoney, the annual poll is widely considered as the benchmark award for the global real estate industry. According to Euromoney, senior executives of real estate bankers, developers, investment managers, corporate end-users and advisory firms around the world have been invited to participate in the survey this year and over 1,700 valid responses were received, representing a 10.6% increase from a year ago. The awards are a testament to the Group’s continuous efforts and commitment to delivering premium projects.

    “Quality is the guiding principle of our business. We are honoured that our efforts in delivering products and services of the highest possible standards have been recognised. We would like to express our heartfelt gratitude to our business partners and those who have voted for us, their support is an encouragement for us to work even harder to deliver exceptional ‘Sino Experience’ to our customers,” remarks Mr Daryl Ng, Executive Director of Sino Land.

     

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  • Japanese food traders target more exports to Thailand

    Japanese food traders target more exports to Thailand

    Last year, Japan’s exports of food and farm products reached 610.7 billion yen.

    Koichi Takano, director of the agriculture, forestry, fisheries and food division at the Japan External Trade Organisation (Jetro), said Thailand was a high-potential market because many Thais liked Japanese foods, while the country is a centre of Asean, which means many visitors come here.

    Thailand is Japan’s six-largest food importer, with imports last year worth 248 billion yen, up by 1.1 per cent from 2013. In the first half of this year, Japanese food imports by Thailand increased considerably, by 4.9 per cent year on year.

    Most Japanese food companies are small and medium-sized enterprises.

    Last week, Jetro Bangkok held a business-matching event between 40 Japanese food enterprises and more than 200 Thai businesses, including modern trade, retail and wholesale, hotels and restaurants. The event aimed to increase trade opportunities for Japanese producers of food and agricultural products in Thailand.

    Sachio Takiyama, director of Jetro Bangkok’s trade promotion department, said the organisation expected that each Japanese firm participating in this event would secure at least one trading contract or one business transaction with a Thai company.

    He said that with the rising popularity of Japanese restaurants here, Thailand would import more raw materials and food products from Japan.

    According to a Jetro survey in August, the number of Japanese restaurants in Thailand had grown by 11.5 per cent year-on-year to 2,364.

    Takiyama said Jetro Bangkok expected the number of Japanese restaurants in Thailand to increase by 10 per cent a year. Thus there is a strong opportunity for more exports of Japanese foods, rice and raw materials, as well as alcoholic beverages, to Thailand in the near future.

    Japanese products with high potential for export to Thai markets are premium-grade meat, alcoholic beverages, fish, and fruits and vegetables.

    Kouda Mayumi, a member of the technical staff of the beef promotion section of the Oita prefectural government, said the prefecture had started to export premium-grade beef to Thailand via Japanese importers last year, with a total volume of about 2 tonnes. She foresees strong demand in the Thai market.

    Shingo Yamashita, senior adviser to Azuma-Cho Fisheries, said demand for fresh fish in Thailand was expected to increase considerably as spending power rose along with the popularity of Japanese restaurants here.

    The company exports about 50 tonnes of buri fish, also known as yellowtail, to Thailand each year.

    Masanobu Miyazaki of JTF Trading, an importer of beef and fish from Japan to Thailand, said demand for Japanese food here had increased strongly over the past few years.

    Vegetables

    Takashi Kato, assistant manager of Bangkok Food System, an exporter of Thai vegetables to Japan and importer of Japanese food to the Thai market, said the company had exported Thai vegetables to Japan for more than 30 years.

    It foresees imports of Japanese foods to Thailand increasing, due not only to demand from Thais themselves but to the rising number of Japanese residents in this country.

    “Now, with higher demand for Japanese foods, we will import Japanese rice, vegetables and fruits to Thai markets to serve restaurants and supermarkets,” he said.

    Haruhiko Sunakawa of Okayama Fruits Company wants to export Muscat grapes to Thailand, along with other fruits such as peaches and strawberries.

    He is now looking for distributors or modern trade outlets to buy such products.

    Kyoko Yoshida, director of Shiyoshida-Syuzou, a producer and trader of shochu, a distilled beverage, said the company has started to introduce the product to the Thai market two years ago. So far, the company has exported it to some Japanese restaurants in Bangkok, and wants to seek |modern-trade partners as distributors.

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  • World-first diamond exchange set for Singapore

    World-first diamond exchange set for Singapore

    The world’s first exchange for physical diamonds, is set to launch in Singapore in the fourth quarter, with a longer-term plan of creating a diamond futures market.

    Alain Vandenborre, the man behind the Singapore Diamond Investment Exchange (SDiX), thinks they can be bought and sold in a different way.

    He said he is surprised no one has tried to bring the trading of diamonds as a commodity into the 21st century on a global scale.

    To achieve that vision, some of the biggest diamond companies in the world have been secured as suppliers, including New York-based Leo Schachter, a leading manufacturer.

    “Up until now, the industry has been old-school. There’s wholesalers, there’s retailers, people in the middle, and there’s just no room for those people anymore. This way, we as manufacturers can go directly marketplace to sell our goods at the right price,” said CEO Alex Yarrow.

    According to SDiX, it expects to see turnover of at least US$250 million in its first full-year of trading, with operational bases set-up in Singapore, Hong Kong and India. And there are bolder plans for the future.

    “We’re going to start as the spot-market, but that’s not my strategy. The strategy is to move towards a futures licence,” said Mr Vandenborre.

    “The Exchange will be as soon as we’re regulated under the Futures Trading Act and will be launching a number of derivative products, which are highly needed. The diamond industry needs to hedge its position.”

    The new exchange might be what the marketplace needs.

    According to the widely-followed Rapaport Diamond index, the August price of a one-carat stone was 13 per cent lower than a year ago. Still, at the Hong Kong and Jewellery and Gem Fair, some traders remain upbeat despite economic wobbles in China.

    “When they slowdown, it’s going to cause a lot of pressure, so the volatility has increased considerably, I think it’s stabilising now as we speak so I believe players will come back in because the market has dropped quite a bit,” said Mayank Mehta, CEO of Rosy Blue.

    The trading of polished diamonds is quiet and expectations from dealers at the Hong Kong and Jewellery and Gem Fair was muted. Retail inventory levels remain high, particularly among 0.30-carat to 0.40-carat goods, as jewellers are not stocking up on inventory because of a retail slowdown in China.

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  • Apple to launch online payment in China

    Apple to launch online payment in China

    Apple will launch an online payment service in China, as the tech giant seeks to expand in its largest market outside of the US despite fierce competition from local rivals.

    An Apple Company offering online payment has launched in the Shanghai Free Trade Zone (FTZ), an area set up as a testbed for financial reforms, China News Service reported late Thursday.

    Apple didn’t give a date for the launch, but the company told AFP that CEO Tim Cook hopes to set-up Apple Pay in China “as quickly as possible”.

    Cook previously said that he expects China one day to surpass the United States to become Apple’s largest market.

    But China’s e-commerce giant Alibaba dominates the country’s online payment sector, with the Paypal-like Alipay taking around 80 percent of the market.

    Internet firm Tencent is also catching up with a similar service provided via its popular messaging application WeChat.

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  • Singapore Retail Sales Growth Eases Less Than Expected In July

    Singapore Retail Sales Growth Eases Less Than Expected In July

    Retail sales rose 0.2 percent in August, slightly below analysts’ consensus estimate.

    “Along with a 0.3% m/m rise in core sales and an expected increase in restaurant sales, these components imply a 0.2% gain in total retail sales for August”.

    In August, spending at gasoline stations slid 1.8 percent in August. Excluding volatile autos and gasoline, sales advanced 0.3%.

    People “have chosen to spend some of their gas price windfall on services – leisure, recreation, travel, etc. – which aren’t included in the retail sales numbers”, he said in a client note.

    On a seasonally-adjusted basis, retail sales decreased 2.2 per cent in July over the previous month. Sales at clothing stores rose 0.4 percent.

    Consumer spending has picked up in recent months after a choppy showing early in the year – gains that some economists attribute to milder weather after a harsh winter and Americans’ growing belief that low pump prices will be around for a while. The hiring – 2.9 million additional jobs over the past 12 months – has translated into a surge of spending at auto dealers and restaurants. The USA economy has become increasingly reliant on consumer spending to maintain growth as Europe and China have struggled to expand at a faster pace.

    “Retail sales showed solid gains in August, despite financial market volatility and a deflationary pricing environment in retail”, said NRF Chief Economist Jack Kleinhenz in a blog posting.

    Consumers came back to life in the first two months of the third quarter after lying low in June, wrote IHS Global Insight Director of U.S. Consumer Economics Chris Christopher in a research note. Overall, however, the numbers suggest consumers have been upping their spending in the spring and summer as they begin to feel more confident about their circumstances. The strong labor market has also helped.

    The index for mining fell 0.6% in August, while the index for utilities rose 0.6%.

    “With the Fed eagerly awaiting a sign or signs the economy is strong enough to withstand a rising rate environment, the data suggests the Fed will continue to wait for some time”, Piegza said.

    Americans spent less on gas in August as prices fell and used some of the savings to buy new cars or go out to eat.

  • ‘First’ high-end luxury concession for Kunming

    ‘First’ high-end luxury concession for Kunming

    Lagardère Travel Retail has opened the first high-end luxury concession in Kunming’s Changshui International Airport in South-Western China, which the retailer says is the result of a ‘close and successful partnership’ with Yunnan Airport Group and Asiaray Media Group.

    Inaugurated in 2012, Changshui airport is said to be one of the largest and most modern in Asia and serves as a gateway to China’s Yunnan region with growing links to neighbouring countries of South-East Asia.

    Evidence of this can be found in the airport’s traffic reports, which show that the number of passengers at Kunming airport has risen rapidly in recent years. In 2015, the airport is expected to serve over 36m passengers and will be the fastest-growing of China’s large airports.

    The master-concession, encompassing an area of over 1,000sq m in the main departure concourse, brings together ‘ten of the biggest names in luxury fashion and cosmetics’, says LTR.

    Emporio Armani, Salvatore Ferragamo, Dior, Hugo Boss, Bally, Montblanc, Coach, MCM, Tommy Hilfiger and Calvin Klein Jean comprise a strong brand line-up offering a range of ready-to-wear, accessories and beauty products.

    Dublin-based Aer Rianta International originally opened 11 domestic shops at what was Kunming’s newly-built Changshui International Airport in south-west China in June 2012.

    The contract, secured in 2011, was seen as an important one at the time for ARI, marking its first Mainland China airport store openings where it held exclusive rights to sell duty paid fashion goods and accessories, perfume and cosmetics, confectionery, jewellery and souvenirs at the capital city airport in Yunnan Province.

    However, in September 2014, Aer Rianta International confirmed that it had has ceased duty paid operations at Kunming International Airport and in a brief statement issued at the time, ARI CEO Jack MacGowan said: “We are pleased that ARI Yunnan has reached this constructive and amicable agreement with Yunnan Airports Group in the best interests of both parties and look forward to potential opportunities for working together again.”

    ‘WORLD-CLASS SERVICE FROM SALES CONSULTANTS’

    According to LTR, customers will be able to enjoy “world-class service delivered by Lagardère Travel Retail’s sales consultants who benefit from the company’s ISO-9001 certified OSCAR training programme,” says the Paris headquartered group.

    “The industry leading training program covers customer service, brand philosophy and product knowledge, is unique in the travel retail industry and gives the font-line team the expertise and confidence to provide the exceptional service and personalised experience.

    “The addition of high-end brands to the retail offer at Changshui airport was made possible by the complete transformation of the main commercial surfaces in the airport’s departure concourse.”

    LTR and Asiaray Media have worked closely with Yunnan Airport Group to plan and implement the terminal’s commercial upgrade, which intends to elevate the passenger experience by aligning the quality of the commercial offer with that of the terminal’s ‘outstanding’ architectural design.

    “We are also very pleased to have the opportunity to further deepen our working relationship with our global brand partners that have taken part in this project. We look forward to further development in Kunming Changshui airport across the spectrum of categories. Our partnership with Asiaray creates novel and unique opportunities to drive passenger engagement and increase the visibility of the commercial offer.Eudes Fabre, General Manager – China for Lagardère Travel Retail, said: “This new opening is an exciting development for Lagardère Travel Retail in China. We are grateful to Yunnan Airport Group for their trust in our capabilities and for their effective support throughout the planning and building process.

    “We are now working together with the airport to offer exclusive and personalised services that improve the airport experience for our customers, create delightful moments and build loyalty.”

    Vincent Lam, CEO of Asiaray Media Group added: “We very pleased with the collaboration with Lagardère Travel Retail. They are a global leader in the airport retail and F&B sector and have demonstrated their professionalism, innovative spirit and understanding of local market trends throughout the different stages of this project. This partnership is an important development for our company.

    “We aim to create an innovative business model that benefits all parties by delivering an engaging experience between customers, shops and airport. This is our first pilot site where we have exclusive advertising concession at Kunming Changshui airport.

    “By closely integrating advertising and commercial assets within the terminal, we will be able to create a more interactive and ultimately more compelling experience for travellers. Our media assets will support the growth of the retail operation which shall certainly benefit us as advertising service provider riding on the business performance of such operation.”“We look forward to cover the other 25 airports where we have similar exclusive rights in the whole of China. This new development creates many new possibilities for our mutual brand partners.

    Wang Xinrui, Director of Commercial Management of Kunming Changshui International airport, added: “Kunming Airport is very satisfied with the outcome of our collaboration with Lagardère Travel Retail and Asiaray Media Group.

    “The newly-opened luxury brands significantly enhance the image and service provided by our airport and help bring our commercial offer in line with the best airports in the region. We look forwards to growing the collaboration with our partners.”

  • Uber Says Special Interests Challenge Push Onto Indonesia Roads

    Uber Says Special Interests Challenge Push Onto Indonesia Roads

    Uber Technologies Inc. plans to set up an Indonesian entity to deal with challenges from authorities to its push into one of Asia’s largest markets.

    The ride-hailing company has had cars seized in Jakarta this month and drivers questioned by police, Michael Brown, Uber’s regional manager for Southeast Asia, said in an interview. The company needs to register to pay tax, Jakarta Governor Basuki Purnama said in a televised briefing on Friday, after saying it doesn’t have the right permits.

    Uber is in discussions to submit an application to become a registered onshore entity as asked by Jakarta authorities, Brown said on Monday. The company is obeying Indonesian law, is tax compliant and is working with the government to “get aligned” with everything it is asking for, he said.

    “We see some things here that are new and challenging,” Brown said, referring to “special interests” working against the San Francisco-based company that he declined to identify. “We don’t like that.”

    Indonesia’s President Joko Widodo is trying to attract investment and tackle corruption to spur an economy growing at its weakest pace since 2009, yet U-turns on policies from taxes to foreign worker permits have left investors confused. Foreign direct investment has stagnated and the rupiah is Asia’s second-worst performing currency this year.

    Cars Confiscated

    Some of Uber’s junior employees have been taken to police stations for hours of questioning, Brown said. Police confiscated 30 Uber cars but didn’t detain drivers, said Jakarta police spokesman Muhammad Iqbal.

    The smartphone application allows users to order rides from private drivers. It is offering fares at discounts of as much as 50 percent compared to taxi operators in greater Jakarta, home to an estimated 30 million people and some of the world’s worst traffic. Its competition includes taxi companies such as PT Blue Bird and PT Express Transindo Utama.

    Uber has run into strident opposition from taxi drivers in the U.S. and abroad as it has expanded to build its business, valued at $50 billion.

    Uber has sent a message to customers in Jakarta, asking them to take to Twitter to tell the authorities why they need it.

    “Uber can say what it wants,” said Adrianto Djokosoetono, the head of the country’s land transport association and a director at Blue Bird, Indonesia’s largest provider of taxis, car rentals and chartered buses. “They are in a tricky situation having to follow the laws so they have to ask for public support.”

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  • Luxury Brands Leave Hong Kong as Rental Prices Skyrocket

    Luxury Brands Leave Hong Kong as Rental Prices Skyrocket

    The closure of the watch brand TAG Heuer’s outlet in Causeway Bay in August this year is a sign of luxury brands’ withdrawal from Hong Kong and the end of the city’s status as a center for Asian luxury goods.

    Following TAG Heuer’s exit, luxury fashion brand Coach pulled out its flagship store in the Central District of Hong Kong on Aug. 31, two years before its lease expires.

    Women’s shoe retailer Belle International in Tseung Kwan O also closed on the same day, while Hong Kong jeweler Emperor Watch & Jewellery Limited also announced plans to terminate its store’s lease early.

    The Guangzhou-based paper said that the exodus of luxury brands from Hong Kong has raised concerns about whether the trend may spread into mainland China.

    High rental fees were one of the reasons for the closures, the report said. Store rentals in Causeway Bay in the first quarter of 2014 stood at HK$43,310 ($5,580) per square meter, making it the most expensive in the world next to New York’s Fifth Avenue shopping district.

    With its store’s closure in Central, Coach will save HK$180 million ($23 million). It had been paying rental fees of $7.2 million ($930,000) per month.

    TAG Heuer ultimately decided to close shop after negotiations for a rent reduction with its landlord fell apart.

    Hong Kong is gradually losing its appeal to mainland Chinese shoppers, who are becoming more inclined to go to Europe, the U.S., Japan and South Korea to shop.

    Total retail sales in the city in 2014 have decreased 0.2 percent from the previous year to HK$493.3 billion ($63.65 billion), its first negative growth in the retail sector since the Hong Kong government launched the individual visa scheme for mainland visitors 11 years ago.

    Between March and July, the region’s retail sales fell even further, posting a 0.4-percent decline year-on-year in June and 2.8 percent in July.

    But despite increasingly poor sales of luxury goods such as jewelry and watches in Hong Kong, medium- and low-priced goods, including food stuffs, liquor, and tobacco, have been growing steadily. According to Southern Metropolis Daily, foodstuff sales rose 7 percent year-on-year in July, an indication that shoppers visiting Hong Kong are shifting from luxury items to daily necessities.

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