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  • Shrinking 7-Eleven Singapore turns to meals

    Shrinking 7-Eleven Singapore turns to meals

    7-Eleven Singapore is preparing to launch a range of ready to eat meals across its 500-strong store network, in what CEO David Goh says is the core pillar of its ‘change in direction’ business plan.

    The Singapore convenience store network, operated by Hong Kong-based Dairy Farm International, has trialled a chicken and rice meal in two stores as the first step in what will eventually be a full scale roll-out of ready to eat foods.

    About 100 stores will get the new range by the end of this month, the remainder by the end of November.

    The company hopes a fresh meals focus will lead a turnaround in the business, which closed about 60 stores over the last two years. Squeezed by the tight labour market and tough new liquor sales laws, the company is searching for new categories to drive growth and restore profitability for franchisees.

    “In the last few years, we have closed more stores than we (have) opened,” Goh said in an interview with Today.

    “This has now stabilised. Having consolidated and redeployed resources, we may be opening as many, if not more, stores than we closed over the next couple of years.”

    Goh said the chicken rice meal was developed after staff searched for and taste tested the best chicken rice dishes in the city. The goal was to create a meal which looked and tasted better than meals available at coffeeshops and hawker centres.

    In Japan, ready to eat meals are a key category in 7-Eleven stores, which sell sushi, noodles and bento boxes to time-poor Japanese consumers.

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  • Lulu to open first hypermarket in Indonesia this year

    Lulu to open first hypermarket in Indonesia this year

    The UAE-based Lulu Group will mark its first retail push in Indonesia by opening its first hypermarket in the capital city of Jakarta by this year end.

    The announcement came during the visit of President of Indonesia, Joko Widodo (popularly known as Jokowi), to Abu Dhabi. He visited the Lulu Hypermarket at Khalidiyah Mall in Abu Dhabi, along with a high-level delegation.

    The Indonesian President is on a five-day state visits to three Middle East countries — Saudi Arabia, United Arab Emirates and Qatar.

    “With an initial investment of $300 million in the first phase, we plan to open 15 hypermarkets by the end of 2017 and a central logistics and warehousing facility in Jakarta. These projects are likely to generate more than 5,000 job opportunities for Indonesians,” said Yusuffali MA, managing director of Lulu Group.

    The group expects to invest a total of $500 million in Indonesia over the next five years.

    “The fact that we are going to Indonesia with our Halal Hypermarket concept, is giving us the encouragement to look for a wider market segment there,” added Yusuffali.

    Apart from Jakarta, Lulu intends to open hypermarkets in Bandung, Solo, Semarang, Surabaya and Yogyakarta.

    “We also plan to set up contract farming to ensure continuous supply of high quality products and to support the Indonesian agriculture sector,” said Yusuffali.

    The Indonesian President was welcomed at the hypermarket by Yusuffali; Saifee Rupawala, CEO; Salim M A, director; Rajmohan Nair, director – Lulu Far East operations, and a large number of Indonesian expatriates.

    President Jokowi and the accompanying delegation were taken on a guided tour of the hypermarket by Yusuffali and team who briefed him about specialties of the retail store.

    The president later urged Yusuff Ali to export more products from villages and towns in Indonesia.

    The Lulu chain currently operates 117 stores across the UAE, Oman, Bahrain, Kuwait, Qatar, Saudi Arabia, Yemen, Egypt and India. -TradeArabia News Service

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  • Indonesia Motorbike Export Soars; Could Overtake Thailand

    Indonesia Motorbike Export Soars; Could Overtake Thailand

    Indonesia is seeing a surge in motorcycle exports. From January to August 2015, the export volume reached 123,790 units, soaring from only 9,000 units in the same period last year.

    Meanwhile in 2013, the export volume of motorcycle reached 27,135 units, the Indonesian Motorcycle Industry Association (AISI) said.

    This year’s export volume as per August accounts for 2.85 percent of the total sales, which amounted to of 4.34 million units.

    AISI Chairman Gunadi Sindhuwinata said ahead that if the national motorcycle industry can keep up with the growth rat—with each brand maintaining their export commitment, Indonesia could overtake Thailand’s achievement. Thailand currently has a balanced market between exports and domestic sales at 50:50.

    “In the future, Indonesia could overtake Thailand’s exports [ratio] that has reached 50:50,” he told on Sunday, September 9.

  • “In Style – Hong Kong” Promotion Opens in Jakarta

    “In Style – Hong Kong” Promotion Opens in Jakarta

    The mega “In Style – Hong Kong” campaign kicked off in Jakarta today with the launch of a citywide promotion at the Grand Indonesia Shopping Town mall, showcasing a range of Hong Kong fashion, food and lifestyle attractions until 20 September.

    Organised by the Hong Kong Trade Development Council (HKTDC), “In Style – Hong Kong” also includes a Hong Kong branded product expo (17-19 September) for trade buyers and a services symposium (17 September) featuring business insights, networking, business matching and consultation services. An invitation-only gala dinner will be held on 17 September for 500 members of the business community.

    The multilayered promotion aims to enhance the already strong trade links between Hong Kong and Indonesia. Hong Kong is consistently rated as the world’s freest economy by the United States-based Heritage Foundation while Indonesia is the world’s fourth-most populous nation. In 2014, bilateral trade between Hong Kong and Indonesia reached US$5.16 billion.

    “In Style – Hong Kong” is an expansion of the successful Lifestyle Expos held by the HKTDC in Jakarta over the past three years, whereby Hong Kong’s innovative and quality products were featured to Indonesian buyers. This year’s event will highlight ways Indonesian companies can partner with Hong Kong to capitalise on the new business opportunities in Asia, especially China. It also showcases Hong Kong’s unique, vibrant lifestyle trends to local consumers through the citywide promotion.

    Citywide promotion – connecting with Indonesian consumers

    The centerpiece of the citywide promotion is a Hong Kong galleria at the Skybridge in Grand Indonesia Shopping Town (14-20 September), spotlighting Hong Kong fashion, food and lifestyle products. Some of these offerings were showcased at two product parades during today’s on-site press conference.

    A unique combination of Indonesian batik and Hong Kong design will also be on display at the Skybridge from 18-20 September. Under the title of “Batik Crossover”, and sponsored by leading Indonesian textile and garment company Sritex, this innovative programme features six batik fashion collections by renowned Hong Kong designers; Lulu Cheung, Walter Kong and Jessica Lau, Walter Ma, Aries Sin, Harrison Wong and Cecilia Yau.

    The citywide promotion also includes retail and gourmet specials at venues across Jakarta. A “Hong Kong Gourmet” campaign, with a webpage featuring more than 10 Hong Kong-style restaurants in Jakarta, has been launched on OpenRice Indonesia’s portal. The “OpenSnap Photo Competition” (www.opensnap.com/hktdc) is also being organised to encourage patrons to dine at participating restaurants.

    Indonesian-operated bistro chain Hong Kong Cafe is offering a three-course gourmet menu created by Hong Kong celebrity chef Walter Kei for “In Style – Hong Kong”. Dim sum specialist Tim Ho Wan is offering complimentary desserts while traditional Hong Kong-style milk tea is also available at the Chatime Indonesia takeaway beverage chain. The tea is brewed using blended tea leaves from Hong Kong beverage company Kampery.

    Meanwhile, a “Hong Kong Lifestyle Products” promotion is underway in Jakarta, with Hong Kong fashion brands such as G2000, Giordano and Staccato offering discounts and other consumer incentives.

    Main events to open 17 September

    The Chief Executive of the Hong Kong Special Administrative Region (HKSAR), Mr C Y Leung and Vice President of the Republic of Indonesia Mr H M Jusuf Kalla are expected to be guests of honour at the Opening Ceremony of the “In Style – Hong Kong” expo and symposium on 17 September.

    The expo is expected to attract about 10,000 trade buyers, importers, distributors, retailers, brand agents, franchisees, department stores and specialist vendors. It will be held at the Jakarta Convention Center from 17 to 19 September, presenting myriad opportunities for buyers to source the hottest styles and trends from Hong Kong.

    More than 190 participating companies will feature Hong Kong lifestyle products in four major themed zones as well as a display of award-winning pieces. The four themed zones are; fashion and fashion accessories (including Bossini, Cocomojo and Mastermind), jewellery and watches (including Chow Tai Fook, TSL Jewellery, Memorigin, Cosi Moda, Saga, Edwin and Charles Hubert), gifts and houseware (including Lexington, PO: Selected, Biba Toys, Kid Galaxy and Kinox), and consumer electronics (including Goodway, Gold Peak and SAS Lighting). Meanwhile, the Hong Kong Design Award Display Zone, titled “Fame – In Style” will showcase a range of award-winning products to highlight Hong Kong’s creative and design capabilities, while buyers can place low-volume orders of five to 1,000 pieces at the hktdc.com Small Orders display.

    Symposium provides global business insights

    The day-long symposium will be held at the Jakarta Convention Center for an expected 1,000 participants, mainly Indonesian businesspeople. It will feature a main symposium and five thematic sessions highlighting ways Hong Kong services, including financial services, legal and arbitration, design and branding services, digital marketing and ICT services, can help Indonesian companies expand their business in Asia, and especially the Chinese mainland.

    Distinguished speakers at the symposium include the Secretary for Justice of the HKSAR, Mr Rimsky Yuen SC; Armando Tolomelli, CEO, Prada Asia Pacific; Y K Pang, Director, Jardine Matheson Holdings Ltd; Royce Yuen, Founder & CEO, New Brand New Ltd; Kent Wong, Managing Director, Chow Tai Fook Jewellery Group Ltd; Peter Lo, Chief Country Officer, Deutsche Bank AG Hong Kong; Tommy Li, Creative Director, Tommy Li Design Workshop Ltd; Peter Mack, Executive Director, Marketing, Landor Hong Kong; and Jason Chiu, CEO, Cherrypicks.

    The symposium will also feature a mini-exhibition where 18 Hong Kong services providers and trade organisations will provide on-site business consultations. The CreateSmart Initiative*, administered by Create Hong Kong of the HKSAR Government, sponsors the participation of some of these exhibitors from various creative sectors in the symposium and their market visit in Jakarta on 18 September.

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  • Pedder Red Launches E-Commerce Site

    Pedder Red Launches E-Commerce Site

    Pedder Red, Pedder Group’s in-house private-label that specialises in contemporary shoe fashion, is proud to announce the launch of its e-commerce site, pedderred.com, offering free shipping & returns to customers in Hong Kong, Macau and Singapore.

    The site will carry all Pedder Red releases including more than 70 styles of edgy pumps, popular skater slip-ons, stylish booties and handbags. The “TRENDS” section will display a frequently refreshed, curated selection of popular and best-selling items; while the “SHOE WANTED” section highlights the season must-haves. Pedderred.com also offers online-only pre-ordering on key items and special promotions.

     The online store launches with Pedder Red’s Autumn/Winter 2015 collection titled “Who Cares”. Celebrating modern femininity with a salute to the rebellious, carefree attitude and style of street fashion, the collection includes exquisitely designed shoes using materials such as studs, zippers, crystals, neoprene and tweed as well as modern and chic prints like leopard and plaid.

    “Pedder Red fans can now shop anytime, anywhere,” said Peter Harris, President of the Pedder Group. “It is with great enthusiasm that we launch pedderred.com, extending our brand access from our store network to the wider world of omni-channel retailing, connecting to our existing and new audiences, continuously growing the Pedder Red community of shoe lovers.”

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  • New iPhone ‘will boost Hong Kong’s retail sales’ with mainland China demand a plus

    New iPhone ‘will boost Hong Kong’s retail sales’ with mainland China demand a plus

    The new Apple iPhone will give the city’s battered retail sector a shot in the arm, experts say, as the price difference between Hong Kong and the mainland will help stimulate demand from across the border.

    Previous iPhone launches have seen long queues in the city, as traders snap up the latest model weeks or months before it is sold across the border. The iPhone 6S will be offered in both markets on September 25, but prices are likely to be 15 per cent lower here, and with limited supply and strong demand, resellers still hope to cash in.

    ANZ senior economist Raymond Yeung said sales of the phone “will give an obvious short-term boost to retail sales and help top-line retail sales in September and October”.

    Lo Lau, owner of a Mong Kok smartphone shop, expected the new phone – with official prices starting at HK$6,388 – to fetch HK$11,000 to HK$20,000 at resale. A street trader said he planned to charge a minimum of HK$12,000 for a 16GB iPhone 6S Plus, the cheapest of the new Apple range.

    Demand for the iPhone has driven record profits for Apple in the past. Speaking at the unveiling of the new model, chief executive Tim Cook said the iPhone market in China had grown 75 per cent year-on-year, compared with 35 per cent globally.

    China is Apple’s second-largest market after the Americas, bringing in US$13.2 billion in the latest quarter, up 112 per cent on the same period last year.

    While ANZ’s Yeung thought the iPhone would have a positive effect on Hong Kong’s retail sector, he warned the overall outlook remained weak. A reduction in tourism and domestic consumption has dragged down sales, while a strong Hong Kong dollar, pegged to the US dollar, has reduced the spending power of overseas visitors, ANZ says.

    At the Apple store in Causeway Bay yesterday, some shoppers who still formed long lines to buy the current generation of iPhones expressed excitement about the new model.

    “I was using the [iPhone] 5, so I need to upgrade to the new one. At least my phone has some resell value, so I can go ahead and trade,” said Joseph Tsang Ka-ho, 40, who was visiting the store to learn more about the 6S.

    But 26-year-old Terry Lam King-wai was less impressed.

    “There’s not much difference between the old and the new iPhone 6S. The appearance is the same, but with a new colour,” he said. “I’ll probably wait for the next generation.”

     

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  • Chinese couples spend big in Korea

    Chinese couples spend big in Korea

    Korea is becoming a major destination for young Chinese couples looking to splurge on expensive items for their upcoming marriages.

    Chen Yi, 34, and Chai Xuefang, 30, who recently visited Seoul from Shandong province, China, are typical of the growing number of couples who are sparing no expense to make their big day special.

    The two bought two Vacheron Constantin wristwatches worth 100 million won ($84,350) each at the Hyundai Department Store in Apgujeong, southern Seoul. They also bought a two-carat diamond ring for 60 million won.

    “A lots of Koreans are preparing for their weddings at Cheongdam-dong [near Apgujeong in the posh Gangnam District],” said soon-to-be-wed Chai. “We plan to get wedding consulting [here in Seoul] exclusively for Chinese people.”

    Another Chinese couple, Yang Xiaoliang, 30, and his fiance Xu Jingjing, 27, last month bought a 10 million won Thom Browne suit for men and two Rolex wristwatches for the couple worth 150 million won each at the same Hyundai Department Store in Apgujeong. They purchased the items ahead of a wedding photo shoot at a studio in Cheongdam-dong.

    The Korean retail and hotel industry is taking notice of the growing number of Chinese couples who are spending big in Seoul to prepare for their weddings.

    They have become major customers who are spending large on high-end wedding gifts, including jewelry, wristwatches and designer suits and dresses. Majors stores are already catering to the growing demand.

    Hyundai Department Store’s Apgujeong branch plans to provide a wedding consulting program exclusively for Chinese couples, and have already enhanced other services for young Chinese customers. Since last month, they have provided a free delivery service where electronic appliances and furniture purchased by Chinese couples can be dropped off at their front door in China. The service has a limit of 30 kilograms (66 pounds) per person.

    Lotte Duty Free recently started a service where items purchased at its shops can be delivered from the Chinese airport to their homes.

    “We get a lot of inquires from Chinese tourists who come to Gangnam [District] to get wedding consulting,” said Lee Hyun-sook, a foreigner-exclusive concierge at Hyundai Department Store. “They shop after asking every detail, such as which brand Koreans most prefer for their own wedding gifts.”

    China Union Pay credit card purchases made by Chinese on imported brands such as Tiffany’s and Cartier soared 91.3 percent in the first eight months of this year compared to the same period last year at Hyundai Department Store. Purchases on furniture, electronic appliances and household goods saw a huge growth of 134.1
    percent.

    Shinsegae Group is widening its marketing strategy to attract soon-to-wed Chinese couples in its department stores and other major affiliates, including its discount store E-Mart and its hotel business Westin Chosun.

    Shinsegae Group invited two couples from Shenyang and Tianjin to Seoul, where they will get a wedding photo taken at the Cheongnam-dong studio that took wedding pictures for famous Korean actresses Jun Ji-hyun. They will also get the chance to experience a traditional Korean wedding ceremony at the Westin Chosun Hotel and shopping at E-Mart and the retail group’s other outlets. The cost is 15 million won per person.

    “We plan to secure the lead in grabbing Chinese couples visiting Korea to get wedding services during the most popular wedding seasons for the Chinese, which starts this month and leads up to the end of the year,” said Shinsegae CEO Jang Jae-young.

    Wedding gifts, including high-end wristwatches, jewelry and designer bags, accounted for 60 percent of all sales made by Chinese tourists at Shinsegae Department Store during China’s May Day, from April 25 to May 3.

    Hotels are also recognizing the growing trend.

    Plaza Hotel last month introduced a wedding package where a hopeful groom can make a proposal at the hotel’s restaurant.

    The package includes a studio wedding photo shoot that comes with makeup from a company that many Korean female celebrities like Han Ye-seul and Han Hyo-joo frequently use. The price tag on the three-day package is 7 million won including flight tickets.

    Lotte Hotel is offering a package targeted at Chinese customers that includes not only the wedding photo and makeup but also a proposal ceremony and spa. The cost for the three-day program is 11.8 million won.

     

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  • Alibaba feels China pain as it trims sales forecasts

    Alibaba feels China pain as it trims sales forecasts

    E-commerce giant Alibaba has succumbed to the crisis gripping the Chinese economy a year after the company became the world’s biggest float.

    Founder and former English teacher Jack Ma became an overnight billionaire when Alibaba launched on the New York Stock Exchange in September 2014, as the firm raised a record-breaking $25 billion (£16.3 billion) in a float valuing the company at $186 billion.

    Alibaba is the biggest player in the Chinese e-commerce market — where spending is set to hit $1 trillion by 2019 — accounting for 80% of online sales in China.

    The firm is also among the top picks of UK retail investors, according to fund manager Hargreaves Lansdown.

    But the company admitted today that a weakening Chinese economy has taken its toll on business, as it slashed forecasts for the total value of transactions it expects to take place in the current quarter.

    This will now be “mid-single digits lower” than the giant’s initial estimates for the quarter.

    Alibaba’s head of investor relations, Jane Penner, said consumers were still willing and able to spend but that the company had been seeing a “negative impact of the magnitude of the spending”. Average order values are also lower, Penner added.

    What is Alibaba?

    The latest fears over the e-commerce giant come a month after it reported its slowest growth in transactions for more than three years.

    Shares in the company are now below their $68 float price after a near-5% slump overnight to $60.91. The stock has halved since the end of May, when Alibaba’s shares hit $119 — valuing the company at a staggering $300 billion.

    The latest bad news out of China comes hard on the heels of a dramatic slump in imports — fuelling fears of a hard landing for the world’s second biggest economy — and a month of turmoil in global stock markets following Beijing’s sudden devaluation of the yuan.

    China also cut its official growth estimates for 2015 this week. China has also cut interest rates five times since November and intervened directly to stem plunging stock markets.

    Rathbones investment director Jane Sydenham said: “Investors are beginning to adjust to what was initially quite a shock in terms of the renminbi devaluation, share repurchases — normally those kind of activities on the part of central banks signal something really quite serious.

    “It’s taken some time for investors to adjust to the fact that clearly, growth is slowing, perhaps more than we’d thought.”

    Despite the gloom from Alibaba, shares rallied in China for the second day running on hopes of more government stimulus.

    Asian markets rose on Wednesday

    Shanghai’s main market gained 2.3% after the finance ministry set out plans to boost infrastructure spending and speed up reform of its tax system to support the economy.

    Japan’s Nikkei also saw its biggest single gain in seven years — rising 7.7% — as markers rallied on comments from prime minister Shinzo Abe raising hopes of a corporate tax cut and a new trans-Pacific trade deal.

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  • GSS shoppers spent $2b using MasterCard this year

    GSS shoppers spent $2b using MasterCard this year

    Despite slowing tourism growth and competition from online re- tailers, shoppers shelled out a five-year high of $2.12 billion using their MasterCard cards at the Great Singapore Sale (GSS) this year.

    The amount spent during the eight-week event, held from May 30 to July 26, was a 2.2 per cent increase from last year, the credit card company said on Monday.

    The number of transactions made during the sale between its cardholders and Singapore merchants also rose by 7.3 per cent to hit more than 14.5 million.

    The growth was fuelled mainly by tourists, who spent 15.3 per cent more and used their cards 21.8 per cent more than they did last year.

    This was despite falling tourist numbers. According to Singapore Tourism Board figures, visitor arrivals from January to June this year were 7.26 million, down 3.4 per cent from the same period last year.

    In contrast, Singapore-based cardholders spent slightly less than they did last year – $1.41 billion, down from last year’s $1.46 billion – although transaction numbers grew 2.6 per cent to 10.5 million.

    Nonetheless, these cardholders made up two-thirds of the amount spent in all by MasterCard users.

    Singapore Polytechnic senior retail lecturer Sarah Lim said the sale, now in its 22nd year, may have lost its shine among Singaporeans.

    “Some retailers hold sales throughout the year. So to locals, GSS may not be something special,” she said. “But to tourists, the GSS is quite established and is something they look forward to, so their objective is to spend when they are here.”

    The top five countries where most of the shoppers came from remained the same as those last year. Australia, Malaysia and China retained the top three positions, while Indonesia overtook Japan to take the fourth spot.

    Of the five, those from Indonesia spent the most at department stores, while the rest splurged at restaurants and eating places.

    Local online merchants were not left out, with Singapore-based cardholders spending $303.5 million online during the sales period, a 5.6 per cent increase from last year.

    Rakuten, which held a one-week sales campaign during the GSS, saw revenue rise by over 350 per cent, while site traffic was up by nearly 90 per cent. “Rakuten is definitely keen to participate in next year’s Great Singapore Sale,” said Mr Masaya Ueno, general manager of Rakuten Singapore online shopping.

    The growth in spending shows that the annual GSS remains attractive to tourists, said MasterCard Singapore group head and general manager Deborah Heng, adding: “What’s interesting is that, this year, we are seeing dining places emerge consistently as a top spend category for visitors, an indication that fine dining may be growing in appeal for travellers to Singapore.”

    Said Ms Jannie Chan, president of the Singapore Retailers Association, which organises the GSS: “With its well-established branding, the GSS has remained an essential pillar in driving spending and generating a positive impact on our economy.”

    Filipino accountant Charmaine Garcia, 37, who visits Singapore twice a year, said she looks forward to the GSS for its good deals. “I like to shop for shoes, clothes and bags and, during the sale, there are discounts not just on the old stock, but on the newer range of items, too.”

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  • Macy’s to shutter 5% of its stores in early 2016

    Macy’s to shutter 5% of its stores in early 2016

    Macy’s says it will close 35 to 40 stores in early 2016, or as much as 5 per cent of its namesake department stores.Macy’s said Tuesday it hasn’t selected all of the stores that will be closed yet. It expects the locations will have about $300 million in combined revenue. The company says employees who work at the closing stores may be offered positions at nearby locations, and workers who are laid off will be offered severance benefits.

    The Cincinnati-based company says it closes a few underperforming stores every year. The company runs 770 Macy’s stores and has closed 52 locations over the last five years while opening 12.

    Macy’s and other retailers are looking for new ways to boost their sales as middle-class customers try to keep their spending down, looking for deals and doing more of their shopping online. The company is preparing to open six lower-priced Macy’s Backstage stores later this year and intends to open more of them in 2016.

    Over the last few quarters Macy’s has been hurt by the strong U.S. dollar, which has cut into spending by tourists, as well as a labour dispute that slowed down ports on the West Coast. The company reported $28.11 billion in revenue in 2014, up less than 1 per cent from the year before.

    Macy’s is also getting ready to test selling goods online in China through a joint venture with a retailer based in Hong Kong.

    Macy’s Inc. also runs the Bloomingdale’s chain, and earlier this year it bought upscale beauty retailer Bluemercury. It has a total of 885 locations.

    On Tuesday the company said it will experiment with selling consumer electronics, as it will open Best Buy shops inside 10 of its stores in November. Those departments will be staffed by Best Buy employees.

  • Warning bell for the end of Hong Kong’s 12-year property rally is ringing louder

    Warning bell for the end of Hong Kong’s 12-year property rally is ringing louder

    The warning bell signalling the end of Hong Kong’s 12-year property rally is ringing louder with more experts predicting that the stock market rout and economic uncertainties at home and abroad will accelerate a price correction.

    Analysts widely expect home prices could fall as much as 10 per cent this year. Hong Kong home prices have risen 9.8 per cent since January after soaring more than 360 per cent from 2003.

    “The worrying factor is Hong Kong’s economy, especially the retail market. Some retailers will be forced to close their business or cut staff if the coming Christmas holidays fail to lift sales. It will certainly affect the home buying desire,” said Alvin Cheung Chi-wai, an associate director at Prudential Brokerage.

    He notes the increasing number of transactions recently sold for below market price in the secondary residential market.

    “It is a reverse trend. Previously, flats in the secondary market kept setting records. Today, vendors have to lower their asking prices on rising expectations home prices are going to fall,” said Cheung, who expects home prices could decline 10 per cent next year.

    His forecast comes in the wake of JP Morgan predicting flat values could drop 5 to 10 per cent a year over the next three years.

    The number of flats in the secondary residential market changing hands at steeper discounts is also on the rise. Such cases were seen from blue-chip housing estates in Taikoo Shing to mass-market homes in Castle Peak Road in the New Territories.

    One case in point was a 714 sq ft unit in Taikoo Shing – the most actively traded housing estate in Quarry Bay – which sold on Sunday for HK$12 million, or HK$16,807 per square foot, 6 per cent below prevailing transaction prices, agents said.

    A 572 sq ft unit at Belvedere Garden in Castle Peak Road sold for HK$4.98 million, or HK$8,706 per square foot, according to Louie Lui, a senior manager at Centaline’s Belvedere Garden branch.

    “It is the lowest price in terms of per square foot in the past 12 months,” he said.

    Buying sentiment may further be hit after UBS lowered its year-end target for the stock market’s Hang Seng Index to 19,775 points. The blue-chip index closed 3.28 per cent higher at 21,259.04 points yesterday.

    “Now, as we have seen a combination of the three pillars of Hong Kong’s economy weakening (tourism and re-export) or showing signs of weakness (property), along with decelerating economic growth in China, we believe our ‘black-sky’ scenario could be a better portrayal of the challenges in the current environment,” UBS said.

    Eva Lee, a property analyst with UBS, said stock market turbulence would certainly affect buying confidence.

    “But it is not a key factor to trigger a price correction. The property market outlook still hinges on the performance of our economy,” she said. The brokerage house forecasts home values will fall 5 to 10 per cent this year.

    Morgan Stanley said home prices would decline 5 per cent from the current level to the end of this year and remain flat next year.

    Joseph Tsang, the managing director of property consultancy JLL’s Hong Kong office, believes the worst-case scenario for the mass-market home sector would be a decline of 5 per cent next year because demand remains solid.

    “Development cost for mass residential projects is HK$12,000 to HK$13,000 per square foot. I believe downside risk for unit pricing not exceeding HK$15,000 per square foot will be limited,” he said.

    On September 5, Kowloon Development’s special financing scheme helped to boost the sale of its Upper East development in Hung Hom. It sold 328 units or 89 per cent of the total over the weekend.

    The developer launched the first batch of 368 flats at prices as low as HK$3 million. Buyers will only require as little as a 5 per cent deposit through its scheme of providing second mortgages of up to 35 per cent on top of the bank’s 60 per cent.

    Tsang said the luxury residential sector, particularly for flats worth HK$20 million to HK$100 million, could have room for a 10 per cent downward adjustment once interest rates rose.

    He said individual owners offering flats at discounts had not developed into a trend.

    “There are always some owners who offload their flats at low prices for some personal reasons. But most vendors still have strong holding power and refuse to sell at a low price,” he said.

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  • Germany’s Metro, China’s Alibaba in e-commerce tie-up

    Germany’s Metro, China’s Alibaba in e-commerce tie-up

    German retail giant Metro said today it is teaming up with Chinese online retailer Alibaba to tap the potential of the booming e-commerce market in China.

    Metro, which operates more than 80 Cash and Carry wholesale stores in China “is now expanding its channels” by opening an online shop in China offering Metro’s own brands, as well as supplier brands from Germany, it said in a statement.

    “In the first phase, over 100 products in the categories of dairy, canned foods, coffee, and chocolate from Metro Cash & Carry Germany as well as cosmetics goods from Real are to be offered online,” the statement said.

    The product assortment would subsequently be expanded to include more food items from Metro Cash & Carry and non-food from its Real supermarket brand.

    “E-commerce is one of our strategic growth drivers in China,” said chief executive Olaf Koch.

    “Opening the flagship store again shows our clear confidence in the Chinese market. This platform enables us to deliver more quality imported goods and German brands to the Chinese customers,” he said.

    Metro and Alibaba said they would also explore possible cooperation in other areas, such as supply chain and market data.

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  • GM China sets year to date retail sales record

    GM China sets year to date retail sales record

    General Motors and its joint ventures booked record retail sales of 2,197,192 vehicles in China during the first eight months of the year, which was up 2.3% year on year. The increase, the automaker said, was driven by successful new product launches and an improved mix of SUVs and MPVs.

    In August, domestic sales by GM and its joint ventures declined 4.8% to 248,815 vehicles, owing to softness in the overall vehicle market.

    GM China president Matt Tsien said: “Recently launched models such as the Buick Excelle GT and Cadillac ATS-L have been well received by consumers and produced solid sales growth.”

    Increased demand for several SUV and MPV models helped offset the market slowdown in August. The Buick Envision and Baojun 560 led the sales growth during the month, rising 161.7%, while sales of the Baojun 730 MPV more than doubled.

    Buick enjoyed its best sales ever in China in the first eight months of the year. Sales rose 5.4% year on year to 581,544 units, led by the Excelle GT and Envision. In August alone, Excelle GT volume jumped 77.6%.

    Cadillac also set a record in the first eight months of the year with sales rising 12% year on year to 49,186 units. Sales of the ATS and ATS-L reached a new high for the period.

    Chevrolet sales declined 7.4% to 391,677 units year over year between January and August. However, sales of the Trax urban SUV surged 146.2% to a record for the eight-month period.

    Baojun sales jumped 282.5% to 223,367 units, an all-time high from January to August. The Baojun 560 SUV exceeded expectations in its first six weeks on the market.

    Wuling sales declined 8.1% to 948,643 units in the January-August timeframe due to continued contraction of the mini-commercial vehicle market.

  • Myanmar National Airlines connects to Sabre

    Myanmar National Airlines connects to Sabre

    Myanmar National Airlines will now distribute its fares via Sabre

    Myanmar National Airlines‘ expansion strategy has taken another step forward, with the signing of a new distribution deal with Sabre.

    The Yangon-based airline started distributing its fares to travel agents last month via the Amadeus GDS, and it will now be able to access even more travel agents with the Sabre GDS deal. Effective immediately, the carrier’s fares and inventory will be made available to more than 100,000 Sabre-connected travel agents across the Asia Pacific region.

    “This agreement will help us to stimulate demand within the most important retail sales channel for Myanmar, supporting our ambitious expansion plans,” said Captain Than Tun, CEO of Myanmar National Airlines.

    “Shopping for flights to our 26 corporate and leisure domestic destinations becomes easy and more transparent, while we also promote our new international routes which have just started with Singapore.”

    In recent months Myanmar National Airlines has started taking delivery of a new fleet of modern aircraft, and also launched its first international services to Singapore. It now plans to add four more international destinations within the Asia Pacific region by early 2016.

    “Myanmar has become a strategic growth market in Southeast Asia for both tourism and trade. This agreement with Myanmar National Airlines provides travel agents across the region with access to the full domestic network, while the flag carrier enjoys a boost in ticket sales,” said Hans Belle, Sabre Travel Network’s vice president of supplier commerce & strategic partnerships for Asia Pacific.

    Lees ook:

    Lees ook:

  • Chinatown Mid-Autumn Festival Celebrates Singapore’s Golden Jubilee

    Chinatown Mid-Autumn Festival Celebrates Singapore’s Golden Jubilee

    A yearly extravaganza, Chinatown will once again don on specially designed lanterns, accompanied by a myriad of decorative installations, to present the lights and sounds of the Mid-Autumn Festival that will take place from Sunday, 13 September to Monday, 12 October 2015.

    A total of 2,300 lanterns will line the busy streets of the precinct, stretching from Eu Tong Sen Street and New Bridge Road down to South Bridge Road. Bearing a strong SG50 theme this year, the Festival, which is named A Golden Jubilee Mid-Autumn will celebrate Singapore’s Golden Jubilee with the nation.

    For the first time, Kreta Ayer-Kim Seng Citizens’ Consultative Committee (KA-KS CCC), the organizing committee for the Chinatown Mid-Autumn Festival, will work closely with the students and faculty of the Nanyang Academy of Fine Arts (NAFA) for a creative interpretation of the street lanterns and decorations.

    Dr Lily Neo, Grassroots Adviser said: “2015 is a very significant year for Singapore as the nation celebrates its Golden Jubilee. The Chinatown precinct has a rich heritage, and we hope that by injecting strong elements of local culture and icons of yesteryear, this year’s Mid-Autumn Festival can be more meaningful for Singaporeans and tourists. We are also delighted to be able to create opportunities for the youths in Singapore to be more involved in our traditional festivals and gain a deeper understanding of our cultural heritage.”

    Witness the Festival come to life at the Official Opening and Light Up Ceremony, which will take place on Sunday, 13 September 2015 along New Bridge Road and Eu Tong Sen Street.

    Deputy Prime Minister and Minister for Finance, Mr Tharman Shanmugaratnam will be gracing the event as the Guest-of-Honour, kick starting the celebrations at the Chinatown Mid-Autumn Festival. Local and overseas talents will showcase thematic performances with a uniquely Singaporean storyline that makes a reference to the history and traditions of the Mid-Autumn Festival.

    Mr Kenneth Lim, Director, Cultural Precincts Development, Singapore Tourism Board, said: “The Mid-Autumn Festival, set in the historic precinct of Chinatown, is another key event to allow Singaporeans and visitors to deepen their understanding of the festival’s significance and witness how it is celebrated. The exciting line-up of events this year will not only be a nostalgic trip down memory lane, but also one that will allow visitors to engage and interact with locals through the different activities on offer, and allow them to better appreciate Singapore’s unique multicultural heritage.”

    Youth engagement through first-time partnership with NAFA students for lantern designs

    KA-KS CCC stayed true to its aim to engage the younger generation and provide youths with opportunities to be actively involved in traditional festivals by partnering with NAFA this year.

    Through a collaborative effort, 10 students from NAFA have been handpicked to participate in this year’s Chinatown Mid-Autumn Festival, presenting innovative interpretations of elements that are truly Singaporean and re-proposing them onto the lanterns and street decorations this year. From landmarks like the iconic old Toa Payoh playground to campaign icons like Singa the Courtesy Lion and Water Wally that mark the key milestones in Singapore’s history, this year’s decorations will bring a sense of nostalgia to all Singaporeans.

    Over the last four months, the students had the opportunity to work closely with KA-KS CCC, as well as a team of experienced craftsmen from Zi Gong Zhongyi Lantern Lighting Art in Sichuan to design, build and install the lanterns.

    Ms Marienne Yang, Vice Dean of NAFA’s 3D Design Programme said: “The 10 participating youths are Year Two and Year Three students reading for their Diploma in Design. This includes participants from the Interior & Exhibition, Object & Jewellery as well as Landscape & Architecture Design programmes. They worked as a multi-disciplinary team to propose and refine concepts for KA-KS CCC for this large scale installation, and had hands-on learning experience with the craftsmen on aspects of the production and set-up process.”

    Festival highlights

    To engage the young and old in the celebratory ambience of the Chinatown Mid-Autumn Festival 2015, KA-KS CCC has organized an array of exciting events and activities from Monday, 13 September 2015, to Monday, 12 October 2015.

    A first this year, KA-KS CCC and the Chinatown Business Association will host the Chinatown 1960s Fancy Dress Contest “Mid-Autumn Festival 2015 – Back to the 60s”, a fancy dress contest featuring fashion styles of the 1960s, on Saturday, 26 September 2015. Participants will showcase fashion statements of that era at the first ever pop-up runway along Pagoda Street. Visitors who come dressed in their 1960s attire will also stand a chance to bring home limited edition door gifts.

    Shortlisted works from close to 180 children and students who pit their creative skills against each other at the annual Mid-Autumn Lantern Painting Competition will also adorn the streets of Chinatown. Winning lanterns from the competition, held on Saturday, 6 September 2015, will be displayed at Chinatown Food Street along Smith Street until Monday, 27 September 2015.

    Experience the festival in its full glory and discover the charm of Chinatown via the complimentary Heritage Walking Trail, where our friendly tour guides will bring participants around the precinct, sharing anecdotes and historical facts about the heritage of Singapore’s Chinese enclave. With a wide variety of stalls at this year’s Mid-Autumn Festival Festive Street Bazaar, visitors will have endless options as they shop for traditional snacks and knickknacks such as mooncakes, preserved food, decorative items to potted plants and clothing.

    Be entertained by lively and vibrant Chinese cultural performances, festive songs, and music and dance performances by local entertainers and troupes from China at the Nightly Stage Shows at Kreta Ayer Square during the Chinatown Mid-Autumn Festival period.

    Join 3,000 participants for the annual Mass Lantern Walk on Sunday, 27 September 2015, and immerse in the Mid-Autumn festivities under the dazzling displays around Chinatown. The Mass Lantern Walk procession will take a leisurely stroll down Chinatown, while being entertained by local and overseas performing groups, as well as eye-catching mascots decked out in vibrant LED suits at 10 locations along the route.

    For more information on the variety of activities lined up for this Mid-Autumn, please refer to Annex I and II. Or you may visit us at:

    – Website:www.chinatownfestivals.sg

    – Facebook: https://www.facebook.com/chinatown.festivals