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  • Qoo10 parent raises $82m

    Qoo10 parent raises $82m

    Singapore-based Giosis, the parent company of Pan-Asian eCommerce platform Qoo10, has raised US$82.1 million in new funding led by Singapore Press Holdings.

    Other investors in the mix included eBay, Saban Capital Group, UVM 2 Venture Investments LP, Brookside Capital and Oak Investment Partners.

    Qoo10 operates six online eCommerce marketplaces across Asia – in Singapore, Japan, Indonesia, Malaysia, Hong Kong and China. Qoo10 has 17.6 million registered users across the region and combined, turned over US$408 million in 2014. Of the six markets in which the company operates, Qoo10 Singapore is the best performer with 1.8 million registered users as of June 2015 and US$182 million in gross merchandise volume in 2014.

    “Through this Series A investment, Giosis will deploy the new funds to accelerate Qoo10’s technology growth and service development, while investing in additional infrastructure and talent acquisition,” the company said in a statement.

    “The new funds will also help Qoo10 strengthen its position as a leading Pan-Asian platform in its key markets Singapore, Japan and Indonesia, and accelerate its expansion in its other rapidly growing Asian markets Malaysia, Hong Kong and China.”

    As the lead investor in this Series A round, SPH will also partner with Qoo10 to explore strategic collaborations on the e-commerce platform across various content, marketplaces, retail, advertising and classifieds opportunities.

    Alan Chan, SPH CEO, said Qoo10 is the number one ranked eCommerce website in Singapore and its parent company Giosis has established itself as a market leader in the region’s e-commerce space.

    “The investment in Qoo10 will enhance our portfolio of digital assets and open up opportunities for future marketing collaborations. With the region’s eCommerce market poised to grow, this investment puts us in a good position to tap on the industry’s growth and be an active player in this space.”

    A joint venture between Gmarket Inc founder Ku Young Bae and eBay, Qoo10 was founded in 2010 with US$20 million seed capital, after Gmarket was acquired by eBay in 2009 for US$1.2 billion.

    Ku Young Bae, CEO of Qoo10, said: “From the beginning Qoo10 has strived to be a hyperlocal eCommerce platform which enables local merchants, big and small, to sell their products to a local and regional customer base across Asia.  Today, 90 per cent of our staff and merchants are local, in order to provide consumers with a seamless shopping experience in a specialised marketplace. With this new funding, we aim to further strengthen our position as the leading Pan-Asian marketplace.”

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  • Tawandang eyes foreign expansion

    Tawandang eyes foreign expansion

    Thai-based brewery restaurant chain Tawandang is planning further expansion at home and abroad as its concept gains favour with consumers.

    There are currently three Tawandang Germany brewery restaurants operating in Bangkok, with a third scheduled to open on August 7. The first two are located on Rama III and Ram Intra, and the third will open on Chaeng Watthana Rd.

    Tawandang also has breweries in Singapore and Cambodia and a restaurant in Australia.

    In an interview with the Bangkok Post newspaper, CEO Supote Teerawatanachai said the company is now considering expanding into Myanmar and the UK.

    Meanwhile, a further two outlets have been confirmed for Bangkok over the next five years- one at Srinakarin and the other at Bang Khae, each outlet to cost about 200 million THB (US$5.7 million)

    The new Chaeng Watthana Tawandang brewery restaurant features 5000 sqm of space and a dining hall which can seat 1200.

    “The brewery business has shown significant growth every year we have operated,” Supote told the bangkok Post.

    “Even though spending per head may be down because of the poor economy, we believe our sales this year will grow 15 per cent as expected from more new clients and a bigger customer base.”

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  • Harvey Nichols is closing in Baku

    Harvey Nichols is closing in Baku

    British luxury department store operator Harvey Nichols has pulled out of its first store in Azerbaijan just four months after  a high profile opening in March.

    The seven-storey Harvey Nichols store opened in the oil rich nation’s fast-growing capital city of Baku offering 110,000 sqft of space selling more than 500 labels in men’s, women’s, children’s and bridalwear; a cosmetics hall, perfumery, cafe, restaurant, lounge and club. It was its largest store outside London.

    Stacey Cartwright, group CEO of Harvey Nichols, said in an interview at the time that Azerbaijanis were showing an increasing demand for luxury goods and the market was “fast becoming one of the top luxury retail destinations in the world”.

    But Harvey Nichols has parted ways with joint venture partner in the store, Perfomans, a subsidiary of a Baku investment company.

    The reasons aren’t clear and appear to be subject to legal proceedings: “Harvey Nichols has terminated its licence agreement with the operator of the Baku store. Consequently, the Baku store no longer operates under the Harvey Nichols brand,” the retail company said in a statement. It said further comment was not possible due to “legal reasons”.

    Harvey Nichols already has stores in London, Hong Kong, Saudi Arabia, Turkey, Dubai and Kuwait.

  • Shin calls for fresh goals for entire Lotte group

    Shin calls for fresh goals for entire Lotte group

    The 60-year-old chairman on Thursday became chairman of Lotte Holdings, the holding company of the Lotte Group in Japan, which was previously held by his brother Shin Dong-joo. This sealed his control of Lotte operations in both Korea and Japan. It is believed to be the first step in uniting the businesses in both countries.

    According to industry sources, Hwang Gak-kyu, president of policy coordination at Lotte Group, is already making adjustments to the chairman’s Vision 2018.

    In 2009, Shin teamed up with the Boston Consulting Group to devise long-term goals for the Korean retail giant to expand into a conglomerate that would be 10th-largest in Asia with annual revenues of 200 trillion won ($173 billion).

    “It seems that Chairman Shin has come to the conclusion that the vision needs to be readjusted, as the leadership has changed and the retail industry is also changing rapidly,” said a high ranking official at Lotte.

    Lotte Japan has far smaller revenues than Lotte Korea. In 2013, Lotte Korea generated 83 trillion won in revenue from 74 affiliates. On the contrary, the Japanese businesses only generated 5.7 trillion won in revenue from 37 affiliates.

    The biggest change in the vision is said to be “select and focus” and “synergy management.”

    Lotte said it is looking into the idea of choosing duty free shopping, hotels, chemicals and finance as core businesses and focus its resources on enhancing those businesses. Additionally, since food and beverages are key businesses in Lotte Japan, it plans to generate synergy with Lotte Shopping and Lotte Confectionery.

    For new growth engines, the retail conglomerate is likely to inject large amounts of investment, but the affiliates that are not picked will likely undergo heavy restructuring, and some will probably shut down.

    One of the key areas for Lotte is chemicals.

    On Friday, the day after Shin was officially made the head of Lotte Japan, he visited Lotte Chemical’s headquarters in Sindaebang-dong, southwestern Seoul, where he was briefed on business.

    On the contrary, investments in department stores and supermarkets is expected to decline. Lotte Group is expected to pursue merger and acquisitions in channels that combine offline and online shopping in order to raise synergy with existing branches and businesses.

    “Considering the size of changes that Lotte will undergo, we can’t say the funding we have is sufficient,” a Lotte official said. “Our investments will likely focus on quality more than on quantity.”

  • Online shopping made safe at 11street

    Online shopping made safe at 11street

    Worrying statistics call for stringent safety measures to ensure Malaysians can make their online purchases risk-free. 11street, one of the biggest online marketplaces in Malaysia, has taken numerous steps to ensure safety of its customers with an ESCROW system being the most significant one. 

    “11street constantly strives to address e-shoppers’ concerns by implementing safety-boosting solutions. ESCROW system is a financial instrument of placing a buyer’s money on hold in control and releasing it to the seller only when the delivery of the purchased item is fulfilled, thus protecting buyers from frauds. 11street also takes extra effort and responsibility to penalise any sellers for non-delivery cases,” 11street’s Chief Executive Officer, Hoseok Kim said. 

     “Furthermore, we are Payment Card Industry Data Security Standard (PCI DSS) compliant and with our in-house security system, our website is strengthened with comprehensive capabilities to monitor all products and transactions between buyers and sellers, that allows us to focus on detecting suspicious activities such as counterfeit product listing to minimise online risks while facilitating secured online transactions.” Kim added.

    In light of recent increasing incidents of cybercrimes, 11street developed basic guidelines for consumers to follow in order to stay safe online:

    1.Choose only trustworthy online shopping sites

    Reliable sites offer full information on sellers and customer service support reachable via email and phone. A credible site will also include features such as a return policy in case the buyer is unsatisfied with their purchase, along with a ‘help’ section for shoppers to lodge any complaints. 

    2.Use a secure connection when you place your order

    Look for a lock symbol on the page and check if the web address starts with “https://”, rather than “https://”. This guarantees that encryption is being used and your sensitive information is protected.

    3.Be cautious when making payment  

    Upfront payment is common for online transaction. Yet, legitimate sellers usually offer multiple secured payment methods via bank or credible payment gateway, including credit card payment and online bank transfer to company account rather than personal account. 

    A good practice to ensure that you are buying from legitimate sellers would be to look for their bank partners or multiple secured payment channels that are available when making a purchase. This further enhances the site’s credibility, as they would need to be qualified by banks or the authorities through stringent checks.

    If a site has an ESCROW system in place to assure buyers with delivery, that is another plus point which indicates the credibility of the site.  

    4.Read reviews shared by other customers

    Make an informed purchase and read comments from real customers. You can be sure you’ll find out a lot on their overall shopping experience and the quality of products. Have a closer look at negative reviews and the way they were handled by sellers, as this will give you some insights into their customer service.

    5.Never click on links from spam emails to make purchases

    It is never a good idea to click on a link in an email from someone you don’t know, let alone purchasing from a random website that sent you spam email. Remember to verify the seller before any purchase and never follow links from dubious sources.

    6.Use strong passwords

    If your password can be found on the list of 25 most popular passwords it requires an immediate change. Set passwords that are at least 10 characters long and consist of a combination of letters and numbers. 

    7.Don’t use public computers for online shopping

    Even if you erase your browsing history and log out, your sensitive information may still be accessible to industrious thieves. It is not uncommon for them to install sophisticated software that records keystrokes and then emails that data to the thief on public computers 

    Kim ends, “We believe security is the key to success in the online sphere. All sellers on 11street have been thoroughly vetted and we also flag up suspicious credit cards to banking authorities to ensure that our sellers don’t get tricked as well. In the same manner, customers make payments to bank accounts that have been registered with us. Yet, we advise all online shoppers to take these precautions to make sure their online shopping experience is enjoyable and safe”.

  • The Legendary Strand Hotel Takes To The Waterways Of Myanmar

    The Legendary Strand Hotel Takes To The Waterways Of Myanmar

    The heritage of the iconic Strand Hotel in Yangon now extends to the Ayeyarwady River in Myanmar with the launch of The Strand Cruise. In early 2016, a new luxury river cruise is brought to one of Myanmar’s most visually captivating waterways steeped in history. Built locally, the vessel will offer 27 cabin suites and 24 hour butler service. The luxurious ship will also host a spacious pool deck, wellness center and wine tasting corner as well as gourmet á la carte cuisine in a restaurant with panoramic views of the river.

    The Strand Cruise is an authentic cruise experience offering exclusive and unique onshore tours curated intelligently to reduce ground transportation time andto enable maximum relaxation on-board – all while the ship is continuingly moving at the foot of the landmarks it visits.

    A schedule of regular sailings of three and four nights between Bagan and Mandalay will commence in early January 2016. Also known as The Elephant River, The Ayeyarwady River flows through the center of Myanmar and its banks are lined with hundreds, if not thousands of temples, stupas and nats. The Strand Cruise will moor in exclusive locations along route, right by Old Bagan itself, as well as at the foot of one of the most ancient Buddhist monasteries on Sagaing Hill when in Mandalay, and at a remote and picturesque riverbank for a private farewell dinner.

    The Strand Cruise will have 10 Deluxe Cabins, 13 Strand Cabins, two State Suites and two Strand Suites. The spacious cabins each with floor to ceiling windows and outdoor balconies are tastefully decorated with Burmese craftsmanship and Teakwood floors and furnished with pieces of original, local art. Each cabin offers an en-suite bathroom, complimentary Wi-Fi and international TV channels.

    Special activities for guests include evening BBQ’S on the upper deck as well as outdoor afternoon tea. The upper deck will include a wine tasting corner with temperature controlled cellars and on-board sommeliers creating special pairing menus for all occasions. The Lounge and Library will showcase exclusive cocktails made famous at the sister property, The Strand Hotel. The Spa facilities will offer massages and treatments in either individual rooms or double rooms for couples. A reflexology station on board will offer foot massages to help rejuvenate weary feet.

    “Having operated The Strand Hotel in Yangon for the past decade, we know that there has been a steady growth in demand from luxury travellers to explore the ancient monuments of Myanmar by using the Ayeyarwady’s waterways,” commented Jerome Seban, general manager of The Strand Cruise. “This demand presented us with an opportunity to reinvent the legendary style and unique personality of The Strand Hotel within a contemporary river cruise experience.

    “What makes a journey along the Ayeyarwady River so special is the fascinating landscape through which you glide, from ancient temples to daily life of the communities living at the water’s edge. Every aspect of The Strand Cruise is designed to echo this, with floor to ceiling windows welcoming in the views of the river banks and our colour palette reflecting the natural beauty of the waterways,” continued Seban. “We are working with Myanmar craftsman as much as possible and are using traditional materials such as locally carved teak, some of which will be detailed with gold leaf, connecting the golden age of the Strand to Myanmar’s golden land.”

    Named after its sister property the iconic Strand Hotel in Yangon, The Strand Cruise offers the same level of premium luxury in one of Myanmar’s most stunning destinations.

     

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  • Faces in new places Raffles, Fairmont and Swissotel

    Faces in new places Raffles, Fairmont and Swissotel

    FRHI Hotels & Resorts, the leading operator of Raffles Hotels & Resorts, Fairmont Hotels & Resorts and Swissôtel Hotels & Resorts, is pleased to announce several management-level appointments at its properties and locations worldwide. Recent appointments include:

    FRHI Hotels & Resorts promotes FrankNaboulsitothe role of regional vice president, Egypt and general manager, Fairmont Nile City. Naboulsi brings over 30 years of hospitality experience to this position with over 25 years of experience at Fairmont Hotels & Resorts worldwide. Over the course of his career,Naboulsi has held numerous general manager positions including stints at Fairmont Dallas, Fairmont Palliser and Delta Calgary Airport Hotel.

    FRHI Hotels & Resorts appoints Michael Moeckingas regional vice president, Western Europe and general manager of Swissôtel Berlin. Moecking brings 30 years of upscale international hospitality experience to this role, working with large brands including Kempinski and InterContinental. Moecking has been with FRHI for the last 10 years, spending six years as general manager ofSwissôtelBerlin and most recently, four years as general manager at Fairmont Dubai.

    Jimmy Kam joins Swissôtel Foshan as general manager.Kam brings over 20 years of hospitality experience to this position, most recently joining the property from Wanda Vista Dongguan & Wanda Realm Guangzhou Zengcheng as director of sales & marketing. Over the span of his career, Kam has held progressive positions at leading hospitality brands throughout China.

    Fairmont Pittsburgh welcomes Simon Boden as director of sales & marketing. Boden brings 16 years of management experience to this position, joining the company in 1999 at the Hamilton Princess & Beach Club as a sales manager, business travel. Boden later transferred to Fairmont Orchid as director of revenue management. Most recently, Boden held the position of director, sales & revenue, Fairmont Southampton.

    Victoria Dyson joinsFairmont Olympic Hotel, Seattle as director of sales & marketing. Dyson brings over 25 years of sales and marketing experience to this position, beginning her career in 1990 with The Delta Lodge at Kananaskis, Alberta where she held several progressive positions. Dyson joined Fairmont Chateau Whistler in 1997 as a sales manager and later transferred to Washington D.C as director, global sales. In 2007, Dyson returned to Fairmont Chateau Whistler as director, group sales, and held that position until 2008 when she was appointed to her most recent position as director, sales & marketing, Fairmont Chateau Whistler.

    Fairmont Mayakoba welcomes Eric de Maeyer as executive chef. De Maeyer joins the hotel with over 24 years of experience as an executive chef, beginning hiscareer at Club Lounge “Zuider Terras”, Antwerp, Belgium. In 1992 de Maeyer relocated to Mexico as executive chef at Hotel Marquis Reforma in Mexico City.  De Maeyer continued to work as executive chef managing multiple F&B outlets at other hotels & resorts throughout Mexico until his most recent position as executive chef at Grand Velas at Riviera Maya.

    Fairmont Peace Hotel appoints Jeremy Harris as executive chef. Harris joins the team from Marriottwhere he was most recently the executive chef of the Shanghai Marriott City Centre Hotel. Harris brings 14 years of international experience to this new role, beginning his career in Washington D.C.In 2011,Harrisjoined his first property in China as executive chef at Renaissance Shanghai Zhongshan Park Hotel. 

    Beil Wang joins Swissôtel Kunshan as executivechef.Wang has over 20 years of rich culinary experience and joins the property from Swatch Art Peace Hotel Shanghai where he was executive sous chef. Prior to this, Wang was the executive sous chef at the Renaissance Caohejing Shanghai and has held several other sous chef positions at leading brands throughout China.

     

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  • Osim Q2 sales hit by weak retail scene

    Osim Q2 sales hit by weak retail scene

    A weak retail scene hit second-quarter sales at Osim International.

    Revenue for the three months to June 30 was down 12.7 per cent to $159.5 million, while net profit declined 25.5 per cent to $21.9 million.

    Despite soft retail sales across its core countries, “our dominant brand has enabled us to maintain a stable gross margin and cash-generative business”, the company said yesterday.

    Osim operates in 23 countries. Its main markets are in North Asia, with 58 per cent of revenue, and South Asia, with 38 per cent.

    The company has 560 Osim outlets in all. “China continues to be our No. 1 market where we are in 45 cities with 251 outlets.

    New products, including uMagic, uInfinity Luxe, uDiva, uHip, uSqueez Air, uTrek and uShape Music, have sustained our dominant position in the market,” the company said.

    It has a further 220 GNC/RichLife outlets in its subsidiary ONI Global, and is growing sales through new product launches, it added. It shed 13 outlets in the second quarter.

    Subsidiary TWG Tea has 47 outlets and the company is targeting to open about 11 new outlets in the second half of the year, it said.

    “We remain optimistic on the prospects for the remainder of the year following the launch of uMagic in key markets and upcoming planned product launches,” it said.

    The company bought back $29 million in shares during the quarter. It declared an interim dividend of two cents per share, similar to a year ago, to be paid on Oct 7.

    Net asset value was 56 cents as at June 30, unchanged from Dec 31 last year. Earnings per share was 2.95 cents, down from 3.87 cents a year back.

    The firm said its balance sheet had strengthened with consolidated net assets at $487 million, and total cash and cash equivalents and fixed income investments of $443 million as at June 30.

    “We are continuing to invest for growth, supported by a strong balance sheet,” it said.

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  • Wal-Mart eyes China growth with Yihaodian buy

    Wal-Mart eyes China growth with Yihaodian buy

    Wal-Mart Stores Inc stock is now trading 20.29% below its 52-week-high, 3.06% above its 52-week-low.

    Wal-Mart Stores CEO Doug McMillon has already increased starting wages and cut a layer of management in stores to try to tackle the situation at the stores. Wal-Mart Stores Inc (WMT) reported last quarter earnings on May 19.

    However, the company has strived to adopt the local culture in China and the consumers’ buying patterns. In an update, Walmart said today that Yihaodian now has over 100 million registered customers, and more than eight million products on offer.

    Wal-Mart, France’s Carrefour SA and Britain’s Tesco PLC have all seen sales growth slip over the last five years in China, losing market share to local rivals, according to consumer analytics firm Kantar Worldpanel. It has decreased by 1% from the same period of last month. With fiscal year 2015 revenue of $486 billion, Walmart employs more than 2 million associates worldwide.

    Walmart is cutting its hours in dozens of its stores.

    We reached out to Wal-Mart for a comment. That kind of integration is often referred to as online-to-offline (O2O), and has been a focus recently for Chinese Internet companies that are forging growing alliances with traditional retailers like department and convenience stores. State-owned China Resources controls 13.9%, while Wal-Mart lags behind both with 10.6%. Analysts at Morgan Stanley lowered their price target on shares of Wal-Mart Stores from $82.00 to $80.00 and set an “equal weight” rating on the stock in a research note on Monday, June 8th. Wal-Mart did not, however, disclose the size of the shareholding held by each party. US online retailing giant Amazon has tried a similar strategy in China, but so far has met with limited success and is still a relatively small player.

    The road aheadTo keep up with Sun Art, Wal-Mart plans to open 33 more stores and clubs this year, especially in the southern regions, where it enjoys a stronger market presence. Later this quarter, it will launch a mobile app which will let Chinese customers order products online and select in-store pickup or home delivery. Prior to joining Walmart Global eCommerce, Wang Lu was responsible for managing CBS Interactive in China, including the IT group, Auto group, Women & Fashion group and Lifestyle group.

    The retail juggernaut previously bought a 51% stake in the e-commerce retail enterprise back in 2012 in an aggressive push to benefit from the Asian country’s booming e-commerce space.

  • Unilever expands Alibaba partnership

    Unilever expands Alibaba partnership

    The partnership began in 2011 when Unilever opened a virtual store on Alibaba’s Tmall.com online shopping portal. Last year it opened a store on Tmall Global, a cross-border solution that allows overseas retailers to sell and deliver goods directly to Chinese consumers online via government-backed FTZs and PRC bonded warehouses.

    Alibaba’s e-commerce “ecosystem” includes China’s retail marketplaces Tmall and Taobao Marketplace as well as logistics and online payment solutions, cloud computing, and a marketing technology platform called Alimama that provides retailers with extensive data analytics.

    Daniel Zhang, Alibaba CEO said the two companies “will jointly innovate in Big Data analytics application, cross-border e-commerce, and supply chain management”. The company will also protect Unilever’s brands by tagging each product with a unique QR code that allows the consumer to verify its authenticity and origin.

    Last year Alibaba began a three to five-year US$1.6 billion program to build 1,000 county-level and 100,000 villaAlibaba Cainiaoge-level Taobao service centers in order to provide e-commerce and logistics services to underdeveloped parts of China.

    The company said its cross-border system gives international retailers greater merchandising flexibility because shipments are made only on demand, reducing the need for sales forecasts and warehouse space in China.

    Online shopping accounted for 10.7 percent of total retail sales in China in 2014, according to the country’s National Bureau of Statistics.

    For the first six months of 2015 Unilever has reported a 12 percent increase in turnover to €27 billion. The operating profit fell 13 percent to €3.8 billion and net profit fell 11 percent to €2.7 billion.

    Unilever CEO Paul Polman noted: “The first half demonstrates again the progress we have made in the transformation of Unilever to deliver consistent, competitive, profitable and responsible growth, now in the seventh year. We plan for another year of volume growth ahead of our markets, steady improvement in core operating margin and strong cash flow,” he added.

    The company has also announced a one-year partnership with the WWF to raise public awareness against deforestation. The program will help protect a million trees by supporting forest protection programs in Brazil and Indonesia. The two countries historically have had the highest rates of deforestation in the world and have some of the largest areas of intact forest globally.

    Polman commented: “Stopping deforestation is an urgent priority in tackling climate change. Forests are second only to the oceans as the largest global store of carbon and support 80 percent of terrestrial biodiversity across the globe. As a business it is crucial that we operate sustainably and take action to help consumers live sustainably. It’s a moral imperative and a business one – to be here for the long term.”

  • Capital Foods’s brand Chings’s Secret exits noodles market

    Capital Foods’s brand Chings’s Secret exits noodles market

    Consumer goods company Capital Foods, which sells the Ching’s Secret instant noodles and Smith & Jones ketchup and masala noodles, has officially exited the noodles category post the Nestle Maggi controvery. The company says it had a marginal contribution from the noodles category to its total business and will restrict its focus to soups and sauces. The company has also shut down its Vapi plant which manufactured noodles.

    The company’s founder chairman and managing director, Ajaay Guptal told ET that the controversy had affected the growth prospects of the category. ” It has never been a focus business and we decided to shut down our factory. As far as our pedigree is concerned, we started off as an exports company and out backend meets the strictest guidelines and laws laid down by global markets, especially the US government.

    The Maggi controversy has impacted the entire processed foods industry significantly especially the ready to eat food category. All food companies are reworking their packaging and ingredients to make sure it meets the strictest mandatory laws.

    Very recently Hindustan Unilever (HUL) had recalled its Chinese range of ‘Knorr’ instant noodles from the market pending product approval from the central food safety regulator FSSAI. “HUL has decided to stop production and sale of its Chinese range of instant noodles till such time as its application is approved by FSSAI. HUL is initiating a withdrawal of its Chinese instant noodles from the market,” HUL had stated.

    Capital Foods sells Ching’s brand and Smith & Jones range of ketchups and ginger-garlic paste in markets such as the US, Canada, Singapore and Dubai. Capital foods recently hired Bollywood actor Ranveer Singh as the brand ambassador, with a campaign ‘My Name is Ranveer Ching’.

    It has tie-ups with the large retailers such as Tesco, Loblaw, and Mustafa in Singapore.

    ITC’s Sunfeast Yippee, HUL’s Knorr and Nissin Foods’ Top Ramen categories are very nascent, so other players are growing the market instead of biting into each other’s share. Capital Foods’ (it has two brands Smith-Jones and Ching’s Secret) consolidated revenue for the fiscal year 2014 stood at Rs 240 crore of which Ching’s Secret contributed a whopping Rs 200 crore.

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  • E-commerce market in China is big enough for multiple players

    E-commerce market in China is big enough for multiple players

    Cross border e-commerce is gaining traction worldwide, partly because of rising business from China. Despite the rise in global players, US online retailer Amazon is not afraid of the competition.

    Amazon has felt the wind of late comers. Alibaba has brought the war onto Amazon’s home turf, recruiting small US businesses to join its sales network after its debut on the New York Stock Exchange last year.

    Amazon’s senior vice president of international consumer business Diego Piacentini says the market is big enough for multiple players.

    “Business is not sport, where there is one winner. Business has multiple winners,” Piacentini said.

    “The size of the business, particularly e-commerce, would be so large. There is room for global players. Amazon is going to be one of them, absolutely, Alibaba and Tmall is one of them and many others.”

    Besides talking the talk, Amazon has beefed up its operation in China since last year. It opened direct mail to China from six of its global locations. Amazon also set up a Chinese e-commerce website and increased its overseas purchases in China to bolster local sales.

    “For countries like China or India, they are not exposed to many years of modern retail, e-commerce, or mobile commerce. You can expect in the next few years, that the vast majority of retail activities in China and India would happen online,” Piacentini said.

    Last year, 18 million Chinese consumers spent US$213 billion overseas—more than double Amazon’s annual sales. For any global commerce site, such potential is hard to ignore.

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  • Global Logistics Properties sets up US$7 billion China-focused fund

    Global Logistics Properties sets up US$7 billion China-focused fund

    Global Logistics Properties launched a US$7 billion fund yesterday dedicated to mainland China, piling in on investment euphoria about warehouse demand as China shifts to a consumption-led economy.

    Singapore-listed GLP has secured US$3.7 billion in equity commitments from seven unnamed investors, six of them national pension or sovereign wealth funds, for the CLF II fund. The largest China-focused logistics infrastructure fund so far, it will have an investment capacity of US$7 billion after adding leverage.

    “We continue to see strong demand from China,” GLP chief executive Ming Z. Mei said. “Despite the recent headlines about the GDP growth slowdown, 7 per cent is by definition a healthy rate anywhere in the world. Retail consumption, which is more relevant to logistics demand, maintains a double-digit growth rate.”

    Retail consumption, which is more relevant to logistics demand, maintains a double-digit growth rate

    Ming Z. Mei, GLP chief executive

    CLF II is an add-on to the US$3 billion CLF I, whose capital was fully allocated more than two years ahead of the planned investment horizon. GLP, created from a spin-off of US industrial property developer Prologis, dominates industrial property markets in China, Japan and Brazil. It is 36 per cent controlled by Singapore’s sovereign wealth fund GIC.

    The US$7 billion in funds will be channelled to develop 13 million square metres of warehouses in four years. GLP, the fund manager, holds a 56 per cent stake.

    China’s burgeoning industrial property market has lured investors from around the world – most recently Carlyle Group, Glodman Sachs and RRJ Capital – who believe a shifting economic pattern has created vast demand for modern warehouses, where courier firms, e-commerce outlets and third-party logistics service providers store, distribute and process goods.

    “Over the last few years, many people make noises about raising capital. Actually raising capital is not the hard part. Executing on the ground is,” Mei said. “As the market gets heated up, it requires deeper knowledge of logistics patterns.”

    As capital flocked in, oversupply had started to surface in certain locations, he said.

    “The market is no longer the way it used to be five, six years ago,” Mei said. “Supply and demand is more balanced now, with some markets oversupplied in the short term.”

    CLSA senior analyst Yew Kiang Wong said: “The big question mark here is demand. These investments are in anticipation of future demand. Third-party logistics companies represent large demand potential and are GLP’s bread and butter. But there’s also some cannibalisation from e-commerce companies which are now trying to develop their own warehouses, such as Alibaba. So there’s some risk in that respect.”

    GLP’s top tenants in China include e-commerce powerhouses JD.com and Amazon, and logistics firms Sinortans and Best Logistics.

    Mei said it was getting harder to source new land. Due to lower tax and employment contributions, local governments are less willing to release land for logistics use.

    In order to gain better access to land reserves and customers, GLP last year sold a 34 per cent stake in its China portfolio for US$2.5 billion to a consortium of state-owned investors including China Life Insurance, China Development Bank and Bank of China.

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  • Scope of e-commerce expanding rapidly

    Scope of e-commerce expanding rapidly

    Thailand’s e-commerce sector is expected to see continued strong growth, of 30-35 per cent this year.

    More and more players are getting into the e-commerce game, such as online merchants, payment-service providers, order-fulfilment providers, tech start-ups and telecoms, and foreign interests as well, encouraged by the government’s “digital economy” initiative.

    Thai E-Commerce Association president Pawoot Pongvitayapanu said e-commerce was a very tough and competitive sector.

    “This year there is tough competition for e-commerce in Thailand. Large players will spend a lot of money to gain a share [of the market]. We recommend that small and medium-sized e-commerce businesses should focus on segmented marketing targeted at their [particular market],” he said.

    He said the rapid increase in mobile Internet users had been helping e-commerce to grow actively this year.

    As of the first quarter of this year, True Mobile had 20.7 million users of its fourth- and third-generation wireless broadband services, Total Access Communication had 14.8 million data subscribers, and Advanced Info Service (AIS) had 20.6 million data subscribers.

    According to research by eMarketer, by 2018, Thailand is projected to have nearly 27 million smartphone users, with mobile-phone penetration reaching 71 per cent, giving the Kingdom the 19th-largest smartphone-user population worldwide, ahead of Australia and Vietnam.

    This rapid increase of smartphone penetration and mobile Internet users is the key factor driving rapid growth of online shopping in Thailand.

    This has obliged all stakeholders included retailers, e-commerce businesses, e-marketplaces, e-payment providers, and logistics companies to focus more on this sector. If they do not, they will lose customers to the other online shopping sites or miss business opportunities.

    Pawoot, who is also managing director of Rakuten Tarad.com, said the company would launch a new e-commerce service next quarter as part of its strategy to grow by 40-50 per cent this year. “This year, our growth comes from an increase in merchant numbers, adjusted internal processes, focusing on the mobile channel, and conducting marketing and promotion. We have a marketing budget of more than Bt10 million.”

    Telecom online stores

    Pratthana Leelapanang, executive vice president for marketing at AIS, said sales through AIS Online Store were growing by more than 200 per cent when compared with last year. All products are telecom-related including devices, accessories, SIM cards, and premium packages and content.

    The sales goal of AIS Online Store this year is to sell 600,000 mobile phones, while the marketing goal is to be a “top of mind” store.

    Convenient payment is one of the factors in the online shop’s success. Customers can pay cash on delivery or via credit or debit cards, automated teller machines, Internet banking, or over the counter at more than 400,000 outlets nationwide such as at Tesco Lotus, FamilyMart, mPay Station and Thai Post.

    “Online business in Thailand is rapidly increasing. According to the latest research by Google in June, a lot of people do online shopping via smartphone. Thailand has the highest ratio with 31 per cent of smartphone users doing mobile shopping. Therefore, there are huge opportunities for online business in Thailand,” Pratthana said.

    However, one of the disadvantages faced by online businesses in Thailand right now is price wars. Many players have absorbed losses after offering big discounts to attract customers to their online shops. Meanwhile, logistics costs in Thailand are still high.

    “Online shopping cannot [allow] customers to try and touch products before purchase. Credit-card use is still limited as people are concerned about security,” Pratthana said.

    Tim Verouden, senior vice president and head of digital services at DTAC, said online business was growing. DTAC’s e-commerce is not confined to its dtac.co.th online store, but is a whole ecosystem of digital commerce-related activities and platforms based on its customers’ understanding that it can make personalised and relevant offers.

    “We see our digital-channel footprint from a holistic perspective where all channels can benefit from each other. In terms of portfolio, we used to have the same portfolio of handsets, packages and offers as the other channels, but especially due to advanced customer understanding we can now offer more and more personalised products and services. And this portfolio will only continue to grow in the big-data age,” Verouden said.

    Revenue from DTAC’s online store alone grew rapidly in the first half of 2015, by more than 30 per cent year on year.

    “When you look at growth rates for e-commerce transactions we have just started, I think overall revenue through digital channels will double in the coming year, for the reasons mentioned earlier,” he said.

    “We also see that channel convergence and digital being just part of a customer journey is an important factor, and having this omni-channel mindset is essential to better understand and accommodate customer needs. We are in the top five [among] e-retailers in Thailand, which is quite remarkable for a telco company.”

    Line Pay

    Last week, Line Pay, a payment platform using the Line chat application, made its Thailand debut. Chase Chang, vice president for global business development at Line Pay, said the service would become a mobile payment platform for both online and offline with the aim to drive growth of online commerce in Thailand.

    Currently there are more than 205 million monthly active Line users worldwide. As of January, Thailand was Line’s second-largest country, following Japan’s 58 million, with more than 33 million users.

    “Line is very big and growing very fast. Line is set to be a ‘life platform’. We started from a communication [chat] platform, then we introduced vertical services such as Line TV, Line Music and others. Line Pay is the fundamental for supporting all of Line’s services as well as to support our partners,” Chang said.

    Line users can apply for Line Pay with ties to their credit or debit card for seamless payment for digital goods and services from Line Shop and other online markets.

    Next quarter, Line Thailand will launch the Line e-wallet, which is a Line Pay account that people can tie to their ATM or bank account. When they make a payment, they can choose between their credit/debit card or Line Pay e-wallet.

    Currently more than 100 merchants accept Line Pay. By the end of this year, Line Thailand aims to get that number above 300.

    Retailers go e-commerce

    E-commerce in Thailand is growing by 30-40 per cent per year, said Worawut Ounjai, chief executive officer of COL.

    Recently, COL redesigned its shopping site www.Central.co.th, which is set to be Central Group’s flagship online store. The group’s online sales account for a very small proportion of its overall annual sales of more than Bt150 billion but are expected to grow strongly, because a lot more people are turning to online shopping.

    E-commerce in Thailand currently accounts for about 0.5 per cent of the retail industry, while globally, it is more like 5.6 per cent. By 2020, it should pass 20 per cent.

    Central’s strategy is to harness its strengths, both online and offline, to increase the competitiveness of Central.co.th such as next-day delivery, flash deals, and click and collect. The company has prepared a 40,000-square-metre warehouse that can support online sales of up to Bt5 billion. For now, it offers online shopping via websites and mobile sites only.

    Recently, Central Group also announced it was opening distribution channels for small and medium-sized enterprises through Central.co.th, This is in line with the group’s policy of supporting SMEs to ensure strong and sustainable growth of the Thai economy.

    Central has partnered with Line Pay.

    “With consumers going online for shopping, merchants who are not part of the e-commerce trend will be out of the era and unable to reach a large number of customers,” Worawoot said. “At Central.co.th, customers can pay for shopping with Line Pay. By the end of this year, there will be 100,000 product items available.”

    Global e-commerce platforms

    Recently, the giant Taiwanese e-commerce company PC Home Online arrived in Thailand. It entered a joint venture with Cal-Comp Electronics (Thailand) to set up PC Home (Thailand) to provide an e-commerce platform for Thais.

    The company will launch a consumer-to-consumer (C2C) e-commerce platform in September and aims to have more than 5 million product listings within one year of operation.

    For the first three years, it will offer its service to sellers free of charge, and after that they will have to pay a fee of 1.5 per cent of a transaction value.

    Hung-Tze Jan, founder and CEO of PC Home Online and the chairman of the Taiwan Internet and E-Commerce Association, said Thailand was the best place to land in Southeast Asia because of its well-established infrastructure.

    Meanwhile Ekachai Rukachantarakul, eBay’s Southeast Asia head, said eBay was strongly committed to the evolution of commerce in Thailand, and continued to work with local SMEs. It aims to provide them with a platform through which they can deliver goods and services on an unparalleled global scale.

    Thailand, as the nation with the highest number of eBay retail exporters in Southeast Asia, with annual sales in excess of US$1 million (Bt34 million), is seeing an increasing number of success stories on eBay’s US, Australia, UK and other global marketplaces.

    An example of a successful Thai entrepreneur benefiting from eBay’s platform is Tuff. Wuttinum Sangon, owner of Tuff, uses eBay as an online marketplace to sell his Muay Thai products such as shorts, gloves and protective gear. He said eBay enabled SMEs to compete with larger companies in the global market.

    Similarly, the giant Chinese e-commerce Alibaba.com has focused on Thailand’s e-commerce market. Thailand is a really important and high-potential market for Alibaba.com, said Thomas Ho, Thailand country manager.

    Alibaba.com provides an e-commerce platform for businesses. As of March, the number of registered users in Thailand had increased by 42 per cent year on year. This was natural growth without having a local reseller, so it is possible to expect more growth in Thailand this year.

    Currently, Alibaba.com has around 570,000 registered users in Thailand, mostly buyers.

    Apart from Alibaba.com’s B2B e-commerce platform, Ho said, the company’s other businesses such as AliExpress and AliPay are under consideration for bringing to the Thai market in the future.

    Local e-marketplace

    The local e-marketplace Weloveshopping.com has adjusted its business with the aim of capturing the rapid growth of e-commerce in Thailand and in Southeast Asia and to become leader in e-marketplace segment.

    Sunsern Samaisut, chief commercial officer for the e-business group at Weloveshopping, said no one had yet dominated the e-commerce markets in Thailand and Southeast Asia, while the markets were growing rapidly. The company is confident of becoming the e-marketplace leader.

    This year, it aims to have 10,000 merchants on Weloveshopping.com, with a combined transaction value of Bt2 billion.

    The company refreshed its brand and changed its business model from earning revenue from rentals of online stores to earning commissions from transaction fees ranging from 2.9 to 13 per cent.

    “This year, we strengthened our position in Thailand with the new business model. Early next year, we plan to expand [into Southeast Asia] through two possible models, including to cooperation with local partners and takeovers of local companies,” Sunsern said.

    Fulfilment services

    Order fulfilment is crucial to the success of e-commerce businesses. Currently, there are many such services. The newest one is Thailand Post Distribution. It is a subsidiary of Thailand Post recently established to provide a total logistics solution in Thailand and Indochina with the aim to be the hub of logistics in the Indochina region by 2019.

    The service fulfils orders for medicines and medical supplies, banks and financial institutions, multinational companies, and border traders, said Warakan Srinualnad, CEO of Thailand Post Distribution.

    The company offers a total logistics solution including packing, warehousing, delivery, and payment services for both private

    companies and government organisations. It also utilises 10 of Thailand Post’s 16 warehouses and distribution centres throughout the country to enhance its logistical efficiency.

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  • Hong Kong residential property prices reached record high in May

    Hong Kong residential property prices reached record high in May

    Residential property prices in Hong Kong reached a record high in May, increasing more than 20% compared with the same month last year.

    The growth in values continues despite the government’s series of property market cooling measures.

    The transaction volume of new homes reached over 8,700 for the first half of 2015, the data from the Rating and Valuation Department shows.

    According to an analysis by international real estate firm Knight Frank it is a result of strong housing demand, ample liquidity partly attributable to the previous rally in the Mainland and Hong Kong stock markets and the continual return of wealthy Mainland investors to the city’s residential sector.

    Amid positive market sentiment, property developers have been actively acquiring residential sites this year, in line with the government’s target to boost housing supply. In early July, a large residential site in So Kwun Wat in Tuen Mun, estimated to require an investment of up to HK$8 billion, was sold for HK$3.82202 billion, representing the second highest ever accommodation value in the area.

    During the third quarter of this year the Hong Kong government will release three residential sites for sale. It has indicated that additional land may be launched by the end of September, depending on the market situation and progress of preparatory work.

    ‘The annual private housing supply target of 19,000 flats is considered achievable this year. Despite the rising supply, we expect home prices to continue rising this year, as it will take time for the new sites to be developed into flats,’ the Knight Frank report concludes.

    Meanwhile in Greater China the Grade-A office market remained active in June, driven by continual expansion demand from Chinese financial institutions, most notably fund and asset management companies.

    Knight Frank believes that Grade-A office rents in Central will continue rising steadily in the second half of 2015.

    Last month, with rents in prime retail districts softening, mid-range retailers gained opportunities to enter high profile streets at lower rents. Retail sales are not expected to recover in the near term.

    Knight Frank says that prime retail rents will continue to come under downward pressure for the remainder of the year.

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