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  • Amazon Fresh expands into China

    Amazon Fresh expands into China

    Online retail giant Amazon has expanded its fresh food offer – Amazon Fresh – into China through partnerships with local distributors and suppliers.

    The new platform will offer fruit and vegetables for home delivery, alongside other groceries including meat, seafood and confectionary across a total of 600 fresh food SKUs, news outlet Tech in Asia and retail commentator IGD retail analysis have both reported.

    Unlike Amazon Fresh in the US, Amazon is not handling the logistics or using its own refrigerated vans for the fresh produce in China, Tech in Asia said, but instead will rely on suppliers to do this.

    Amazon’s larger e-commerce rivals in the country – such as Alibaba’s Tmall, JD, and Walmart’s Yihaodian – have been offering fresh produce for home delivery for some time.

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  • Singapore cryptocurrency developer begins retail payment trials

    Singapore cryptocurrency developer begins retail payment trials

    Local blockchain solutions provider Tembusu Systems will begin its first real-world implementation of digital currency payments in Singapore using the TRUST framework on 10th June.

    The TRUST system, a proprietary platform based on the blockchain technology that drives cryptocurrencies and digital economies, makes payment using different currencies — real-world, digital or even gold and silver — possible.

    The system was developed to integrate traditional currency platforms with the emerging blockchain technology that drive today’s commonly known digital currencies.

    “We’re planning to try out several possible use cases with current payment systems in Singapore and the success of this trial will see the use of digital currency payment systems being extended into real-world context,” said Andras Kristof, Co-Founder and CEO of Tembusu Systems.

    A demo of the platform, conducted in local uptown bar The Spiffy Dapper, which also hosted Singapore’s first Bitcoin ATM in 2014, showed how the TRUST framework could be easily implemented. The trial implementation only requires a computer or mobile device to be attached to existing POS systems, and successful integration will see businesses having a simplified, self-auditing, cashless payment system with low-running cost.

    With blockchain technology keeping each transaction in check, businesses like The Spiffy Dapper can expect easier reconciliation of their accounts from their daily sales as well.

    Tembusu Systems said the core of the TRUST platform is a network of payment gateways which allows consumers to pay with any currency of their choice. The platform can also accommodate establishments with loyalty rewards programs such that users can pay using accumulated loyalty points.

    The company  will also be exploring human ATM applications as well; the TRUST platform allows consumers to withdraw cash through participating businesses by processing currencies from their digital wallets to the POS systems. Businesses will then be able to cash out the digital payment into cash for consumers over the counter.

    “Our goal is not to replace other payment systems like NETS and credit cards, or even cheques. In fact, we are hoping the TRUST platform can be developed to integrate with these other systems, to become an organic payment integrator in time to come,” explained Jarrod Luo, Co-founder and COO of Tembusu Systems.

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  • L Capital Asia puts in bid to buy Jones the Grocer

    L Capital Asia puts in bid to buy Jones the Grocer

    The final bids to buy Jones the Grocer’s Singapore business were accepted on Friday last week, with majority shareholder L Capital Asia putting in a bid to buy the company.

    The target is to complete the sale by next month. It is not known how many bids were received, and how much was offered.

    The gourmet grocer’s Singapore arm, Jones the Grocer International (JTGI), was earlier placed under judicial management – where an external manager is appointed to manage a company that cannot pay its debts.

    Its assets – including two outlets in Dempsey Hill and Mandarin Gallery – were put up for sale.

    Its parent company, Jones Group Holdings in Australia, went into administration last December due to disputes between its former chief executive and shareholder John Manos, and majority shareholder L Capital – the equity arm of luxury group LVMH Moet Hennessy Louis Vuitton. Mr Manos also ran Jones the Grocer’s day-to-day operations in Singapore.

    When contacted, L Capital chairman and managing partner Ravi Thakran said the firm placed a bid as the business in Singapore has not been “adversely impacted”.

    In a statement, L Capital said business performance under Mr Manos’ leadership was “delivered poorly” when seen against “agreed business plans”.

    It was also “alarmed at the state of the business and, after being frustrated by Mr Manos in our attempts to course correct, infuse talent, and improve governance… we decided to take conclusive action”.

    This is the first time L Capital is commenting on Jones the Grocer’s woes.

    The firm terminated Mr Manos’ employment as chief executive late last year, and then applied to the Singapore courts to place JTGI under judicial management.

    It succeeded in March, and PwC Singapore’s business recovery services leader Goh Thien Phong was appointed judicial manager.

    By then, JTGI had accumulated about $19 million in total liabilities.

    Mr Goh found, among other things, that JTGI was spending money without basic rules in place. Each chef, for instance, could independently put in food orders with suppliers without following proper accounting procedures.

    Mr Manos grew the brand from just one outlet in Australia in 2006 – when he took over – to 18 stores worldwide in 2012, before L Capital came on board.

    Mr Manos, speaking to The Straits Times, said: “The issue (why Jones went bust in Singapore) has to do more with management and shareholder issues.” He added that L Capital had a “very aggressive” growth plan, as well as a “broader agenda” that he did not agree with. The debt, he said, came from overheads from plans to venture into China and Thailand. “We hired people, took on all these overheads, not because we needed them in Singapore but because we were planning regional growth,” he said.

    He said chefs placing orders independently was not part of a system he put in place. “If they did that, it was because these chefs were going past the system, and taking such actions themselves,” he added.

    Retail experts said putting a flailing company under judicial management could be a way to resolve disputes.

    “You can say that firms may do this to get rid of a partner. It’s fair game,” said Singapore Polytechnic retail lecturer Amos Tan, adding he was not surprised that L Capital Asia had put in a bid. “Branding does not happen overnight, and Jones the Grocer is a good brand, with an existing database of customers and suppliers.”

    The two Jones the Grocer outlets in Dempsey Hill and Mandarin Gallery are operating as usual.

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  • Johnnie Walker House opens in Singapore

    Johnnie Walker House opens in Singapore

    Diageo partners DFS group to launch first Johnnie Walker House in southeast Asia at Singapore Changi airport.

    Diageo Global Travel together with DFS Group have launched the Johnnie Walker House retail showcase within DFS Group’s new wines and spirits flagship store in the central atrium of the departures concourse at Singapore Changi Airport, Terminal 3.

    The establishment of Johnnie Walker House Singapore marks the seventh addition to the expanding international network of whisky embassies.  This follows the success of existing flagships in Shanghai, Beijing, Seoul and Chengdu, as well as travel retail theatres in the airports of Taipei and Mumbai.

    The milestone also celebrates the first Johnnie Walker House in Singapore and Southeast Asia.

    “With global airport sales growing by more than 12% every year since 2009, and the strategic location of Singapore Changi Airport as a travel hub, Johnnie Walker House Singapore is set to be a game-changer for the luxury spirits segment,” says Doug Bagley, MD, Diageo Global Travel and Middle East. “We combine our revolutionary hospitality concept with our successful travel retail model – providing an enticing experience to modern luxury consumers during the ‘golden hour’ before they board.”

    The design of Johnnie Walker House Singapore is inspired by the combination of two elements.  The first draws from the rich, progressive travel heritage of epic ocean voyages that took Johnnie Walker from the four corners of Scotland to the four corners of the world, making it the world’s first global brand.  The second is the evergreen custom in luxury retail of using trunk shows to provide tailored, exclusive experiences to valued clients.

    “Our long partnership with Diageo has been instrumental in creating the ultimate destination for the best in wines, spirits and tobacco at Changi Airport. It is our shared vision to bring personalized and unique shopping experiences to the traveler. The Johnnie Walker House Singapore at DFS’s new wines & spirits flagship store represents these aspirations and we are delighted to unveil it today,” says Brooke Supernaw, senior VP global merchandising – spirits, wine, and tobacco.

    When travellers step into Johnnie Walker House Singapore, they are transported into a retail theatre of a larger-than-life luxury steamer trunk.  Designed and built by award-winning Singapore-based design agency Asylum, the highly tactile environment of leather, copper, marble, bronze, wood and steel finishing, brings to life the history, provenance and pioneering spirit of Johnnie Walker with:

    • a multi-sensory retail setting, complete with a signature scent ambience emitting the six flavour characteristics of Johnnie Walker Blue Label instantly transporting travellers to the Scottish Highlands;
    • exclusive “theatrical mentoring” sessions, which are immersions in the Johnnie Walker brand and product universe, through a combination of education and entertainment, and storytelling and trial, led by brand ambassadors;
    • a tasting bar where clients can enjoy the pinnacle of whiskies from the Johnnie Walker Super Deluxe portfolio;
    • a ‘whisky constellation wall’ dedicated to the Johnie Walker heritage of the art of blending, and provides a comprehensive index for single malt Scotch whiskies; and
    • privileges extended to members of the Johnnie Walker House with the World of Privileges loyalty programme.

    To commemorate the inauguration of the Johnnie Walker House Singapore, a limited edition of the Johnnie Walker Blue Label will be exclusively available at Singapore Changi Airport. The ivory-coloured ceramic bottle puduced by Wade features the landscape of Scotland and the skyline of Singapore in the brand’s hallmark Willow design.  The collectible was illustrated by Dawn Ng and pictorially depicts the historic journey of Johnnie Walker from Scotland to Singapore – from the time John Walker & Sons was established in 1820, in Kilmarnock, to 1885, when the Johnnie Walker whiskies had made their way to Singapore as one of the world’s first modern luxury icons.

    Pictured above: the limited edition Johnnie Walker Blue Label bottle with the brand’s hallmark Willow design exclusively available at Singapore Changi Airport. Below is the interior of the Johnnie Walker House at Chaigi Airport

    Johnnie Walker Blue Label boutique opens in Taipei

    A multi-sensory Johnnie Walker Blue Label boutique has opened in the Terminal 2 Departures Concourse of Taoyuan Airport, Taipei.

    On first entering, travellers will experience the scents of honey and citrus fruits and brand ambassadors guide them through the flavours on a tasting journey of the whisky.

    The story of the casks is told on a wall of oak barrels. These explain how the brand has the largest reserves of Scotch whisky in the world but only 1 in 10,000 of these casks drawn from the four corners of Scotland contain whiskies of sufficient character to produce the signature taste.

    The craftsmanship is reflected on the second wall. It tells the story of the lineage of master blenders and how today’s master blender selects and blends.

    A video animation at the centre of the installation describes how the whisky is produced in limited quantities and how it evokes the authentic, powerful character and flavour of a traditional 19th century blend – 1867 Old Highland Whisky.

    Visitors can also take away a special memento of their travels – any bottle purchased in the adjacent travel retail unit can be engraved with a personal message, free of charge.

    Fairbrother explains: “Our aim is to provide shoppers with an extraordinary retail experience – this beautiful, multi-sensory retail activation follows the success of similar pop-ups in the Charles de Gaulle Airport in Paris and Johannesburg International Airport in South Africa last year.

    “This luxury boutique and the recent launch of our pioneering Johnnie Walker House in Taoyuan Airport is testament to our focus and commitment to innovation in travel retail in this region.”

    The store officially opened for business in March and it will welcome global travellers in the Terminal 2 Departures until the end of June 2015.

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  • UP Town Center rises

    UP Town Center rises

    It’s the first and only university town center in the Philippines,” says Rowena Tomeldan, vice president and head of operations at Ayala Land. Since it opened two years ago, the UP Town Center has served as a vibrant hub of leisure activity for the large student population and academic community from the premier schools along Katipunan Avenue in Quezon City, such as the University of the Philippines, Ateneo de Manila University, and Miriam College.

    This May, just in time for school opening, more retail stores and casual dining outlets opened their doors, as well as a department store and supermarket on 26,000 sq. m. floor plan, as part of its second phase development. The first phase, covering 4,700 sq. m, consists primarily of restaurants and a couple of retail stores. The last phase, covering 37,000 sqm, which will house more retail stores, restaurants, four cinemas as well as offices, is expected to be completed in 2016.

    “Ayala Land first entered into a lease agreement with the UP to develop the 7.4 hectares located within the campus grounds, and to build the shopping complex where the UP Integrated School formerly stood,” Ayala Land director Antonio Aquino, noted. “We kept the trees that were there. At least 40 percent of the total land area is preserved as open space. The buildings are low rises.”

    The place is secure and parents can feel that their children are safe in the mall.”

    For its young target market, popular fashion brands which have opened shop at the UP Town Center include Bench, Penshoppe, Bratpack, Birkenstock, Rookie USA, Artwork, Bambu, Claire’s, Tickles, Shoe Salon, Flying Dutchman, Just G., Bucket Feet, and Coalitions.  While for sports apparel, gear and equipment, which they need for their active lifestyle, there’s Planet Sports, Arena, Grind, Saucony, Urbangiz, Titan and Urban Athletics.

    Gadgets and accessories are part and parcel of millennials’ lives and at UP Town Center, there are stores to meet every techie’s needs, such as Digital Walker, Datablitz, Wonder Photo Shop, and Take Your Pic. And for good old-fashioned stationeries, there’s National Book Store, Paper Stone, and Papemelroti.

    For personal grooming and head-to-toe pampering, there’s Nail Tropics, Hey Sugar, and Sports Barber. Even pets get special treatment in this pet-friendly mall, at Uptown Animal Center.  There’s Qualimed, the mall-based health care center as well as shops to cater to lifestyle needs such as Visions Expression and Sewing Room. Kids will also be glad to find Toys R Us among the newly opened stores.

    Of course, the UP Town Center is not only for students and faculty but also for their families as well as residents in the area, and even visitors coming from other parts of the metro. It offers a number of affordable dining options as well as new dining concepts such as Pepper Lunch, Recovery Food, Jamba Juice, Sbarro, Rita’s, Wing Stop, Crisostomo, Ramen Nagi, and The Clean Plate.

    Time was when students could count with their fingers the number of places they could go to nearby at lunch break or after school, to grab a bite or simply relax after long hours inside the classroom. There was the ordinary school cafeteria which left much to be desired, and one or two restaurants outside the campus that served predictable meals. Not anymore. UP Town Center changes all that. More than a destination, UP Town Center promotes a thriving community where its denizens gather to learn, play, and live.

  • Tokyo is world’s hottest retail market

    Tokyo is world’s hottest retail market

    Tokyo is the world’s hottest market for retail expansion, attracting 63 new brands last year as leasing momentum in core areas remained strong, despite mixed signals in the economy and an increase in the sales tax to eight per cent in April 2014, according to the latest report from CBRE Group, Inc., “How Global is the Business of Retail?” Toronto was the hottest market in the Americas, attracting 25 new international brands in 2014.

    According to the report – which tracks the target markets of new brands in 164 cities in 50 countries – US retailers are the most active when it comes to expanding into new global markets. In 2014, US retailers accounted for 26 per cent of cross-border expansion. Primary expansion targets for America’s retailers are Asia (41 per cent), Europe (33 per cent), and the Middle East and Africa (12 per cent).

    Italian retailers were the second most active, accounting for 14 per cent of cross-border expansion, followed by UK-based retailers (11 per cent) and French retailers (10 per cent). Globally, Europe accounted for 42 per cent of retailer expansion, followed by Asia with 39 per cent and the Middle East and Africa with 10 per cent. North America was only a target for three per cent of retailers.

    “The core elements of globalization, technology and demographic change, continue to have a dramatic impact on the business of retail. Demographic shifts in many countries have resulted in changes in both spending power and shopping habits. Technology enables retailers to enter markets and evaluate performance more swiftly,” said Brandon Famous, senior managing director, retail occupier advisory & transaction services, CBRE. “Consumer traveling patterns mean that many brands are well known before they even enter a market and the pent-up demand for the chance to purchase locally creates a ready-made market before entry.”

    Among the most active retail sectors globally, mid-range fashion retailers led the field, accounting for 21 per cent of global expansion, followed luxury and business retailers, with 20 per cent, and coffee and restaurant and specialist clothing, each with 16 per cent. When it comes to expansion into the Americas, luxury and business retailers were the most active at 26 per cent, followed by mid-range fashion representing 20 per cent of total activity, and specialist clothing representing 14 per cent.

    “Consumers continue to view the physical store as their preferred mode of purchase and perhaps more importantly, as a point of social interaction,” Famous added. “Consumers view shopping as a leisure activity and the continued expansion of brands and the development/improvement of shopping locations gives them the opportunity to embrace this.”

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  • China’s Internet focus lifts online spending

    China’s Internet focus lifts online spending

    In a strategy known as ‘Internet Plus’, China is integrating the Internet, big data and other technologies with traditional industries, like retail. This is boosting China’s already vast e-commerce market further. As the government looks to use the Internet to create more spending – and jobs.

    Denny Liu returned to Beijing after graduating from Wharton Business School in the United States.

    Last year, he and his wife set up Le Chun – or Le Pur, in English – selling yogurt, using only natural ingredients.

    Before opening a physical store, they shared their story and mission online.

    “That story actually went viral for a little bit and that got us our first 5,000 seed users. Who are all yogurt lovers.We didn’t know any good milk sources around Beijing, so we threw it to our community and said ‘do you guys know any good milk source around’ and about 10 people gave us leads. When we designed our logo and picked out the store location, we asked our followers,” Liu said.

    With 40,000 followers on WeChat, the Internet has played a key part in Le Chun’s success.

    In less than a year, the startup is making a profit.

    Most of their sales are online. Thanks to word of mouth, from social media fans.

    Now, the government is backing them too. With 100,000 yuan or roughly 15,000 dollars in funding. No strings attached.

    China wants consumer spending to be a central part of the economy. But malls like this one don’t exist in every city. So it’s supporting online stores to get more Chinese shopping.

    “Clothes, computer stuff, food. I buy about 80 percent of my things online,” Student Quan Jiujiu said.

    Retail expert, Professor Xiangdong Liu, says official data shows that last year, China’s online sales hit 2.79 trillion yuan. Taking 10 percent of its total spending.  And overtaking America’s.

    He says the government’s Internet focus will encourage e-commerce further.

    “The government will invest more in Internet infrastructure, cutting costs for surfing online. It’s also setting up pilot projects, to make Internet companies better, as well as encouraging companies to open online services, by providing subsidies and lower taxes. The government’s approach is first to let them mature, then unveil more policies to manage them,” Professor Liu said.

    This is changing brick-and-mortar giants, like electronics retailer, GOME. It launched its online store in 2011. Now with a mobile platform and App.

    But while their online options give customers a bargain, it’s been tough business.

    “10 percent of our sales are online. We predict GOME’s online consumers will grow faster, to exceed 20 percent in three years. Online customers pay more attention to price, so goods online have simpler functions and are cheaper. But since prices online are cheaper, many online businesses are making a loss,” Wang Junzhou, president of GOME Electrical Appliances Holding Ltd., said.

    While keeping costs down for niche retailers, like Le Chun. The Internet is proving costly for mainstream players.

    That’s likely to test China’s e-tail industry, in the years ahead.

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  • How EpiCentre used iBeacon to integrate online and offline

    How EpiCentre used iBeacon to integrate online and offline

    In Singapore, location-based marketing is still largely a fringe activity, adopted mostly by marketers who are tech-savvy and risk-takers. Marketing spoke to one such risk-taker: Danielle Siauw, manager (CRM, m&e-commerce, new media) at Apple Premium Reseller EpiCentre.

    EpiCentre recently invested in Apple’s iBeacon technology. The iBeacon is a device that sends Bluetooth signals detectable by iOS software, allowing marketers to send location-targeted promotions and content to Apple users.

    The iBeacon functions as part of EpiCentre’s membership programme, allowing members to earn points through their mobile app when they visit stores. For example, members earn 10 points every time they step in to a store. EpiCentre also uses iBeacons to deliver location-targeted discount coupons to customers near their stores, amongst other uses. Currently, all 10 EpiCentre stores are iBeacon enabled, and the brand is looking into an iBeacon payment system as well.

    Marketing: Why did you choose to invest in location-based technology?

    EpiCentre started out as a brick and mortar retailer. Our core strength is still in retail stores. As all of us know, the retail scene is looking bleak in Singapore with more competition from e-commerce. To counteract this problem, we started to look into omni-channel strategies for sales and marketing. We started by revamping our CRM system for brick and mortar in 2013, then integrated our e-commerce site www.epilife.com.sg with our CRM system in early 2014. In late 2014 we tied our mobile platform, epiApp, with our CRM system and e-commerce site. In this way, we have successfully delivered a seamless membership programme that extends to both the online and offline channels; however, there is still a missing puzzle, which is how to use the mobile platform to drive footfall in our stores. For this, iBeacon becomes a natural choice.

    Marketing: Location-based marketing has been held up as a marketing goldmine over the past few years. Yet, still it’s not used on a mass scale. Why is this?

    One of the key issue is with the Personal Data Protection act. Location-based marketing through SMS or notifications are often seen as spam. To send users information via this mode requires opt-in. The customers who opt-out would be missed opportunities.

    Secondly, although the cost of doing location-based marketing is not high the expectation in terms of ROI (i.e. translating to actual sales) still does not match up.

    Lastly, location-based technology such as GPS and GSM do not render accurate results when used indoors. However, there are other location-based technologies that work indoors, such as geo-fencing and iBeacons. iBeacons are, however, very much much in-app, and customers still need to download and install the app on their phone. This can be cumbersome. Also, customers need to switch on the Bluetooth on their mobile devices to experience the iBeacon.

    Generally there is slow adoption by retailers for such technology in Singapore, especially among traditional retailers. One reason for this is low user adoption and education about such technologies. I think it boils down to a chicken and egg issue: Retailers need to find compelling reasons that location technology can complement their existing businesses.

    Marketing: How should retailers strike the balance between annoyance and genuine consumer value?

    I think whatever technology that we implement, we must always add value to our customers and stakeholders. Customers must find the technology useful; the technology has to solve a problem. We must first understand our own business and our customers, then formulate the right content and promotions to reach out to the customers. For example, offering relevant content, attractive offers and coupons, or as part of the company’s loyalty programme. We should also be mindful about the number of times the content is sent, and not be spammy. One advantage of iBeacons is that they allow for content and promotions to be tailored to individuals, based on past purchases and preferences.

    Marketing: Have you seen cases where iBeacons have been deployed effectively?

    Macy’s uses the iBeacon in 800 stores in the US. They can effective track customer behaviour and send out relevant promotions within the category through their mobile app. This cuts down the print materials required and allows them to update their promotions on the fly.

    Another innovative and practical use of the iBeacon is at Starwood. They use the iBeacon to greet guests upon arrival, allowing guests to skip the whole check-in process, go direct to their room and use the mobile phone to enter the room. Starwood also uses the iBeacon to let housekeeping staff know if guests are still in the rooms. This creates a seamless experience for the guests through their mobile app. This shows how the iBeacon can integrate the online and offline experiences in a way that adds genuine value.

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  • Taipei a target for global retail brands

    Taipei a target for global retail brands

    Taipei ranked fourth as a target market for international retail brands last year as a willingness to try new dining and fashion is driving leasing activity across the Asia-Pacific region, a report by property consultancy CBRE Group Inc showed yesterday.

    The nation’s capital rose seven notches from its ranking last year, with 49 new brands establishing a presence in Taipei, compared with 29 in 2013, according to the annual report of hot target markets by CBRE.

    HOT SPOT

    The results left Taipei trailing only Tokyo with 63 entrants in first place, Singapore with 58 entrants in second and Abu Dhabi with 55 entrants in third, the survey found.

    “Taipei has become a hot spot for Japanese and [South] Korean fashion and cosmetics brands looking for overseas expansion,” CBRE Taiwan managing director Joseph Lin (林俊銘) said in the report.

    The property broker saw strong leasing momentum from mid-range and fast fashion retailers, with existing brands introducing new product lines such as GU, a Japanese fashion retail chain. New arrivals also included New York-based contemporary clothing company Alice + Olivia and US multinational clothing and accessories retailer The Gap Inc among others, the report said.

    OUTLET LOCATIONS

    High-profile units on main streets were in strong demand last year, and the lack of flagship prospects pushed retailers to seek opportunities in department stores, the major retail format in Taiwan, the report said.

    The number of new entrants located in shopping centers was relatively limited, but well-managed centers such as Breeze Center, Taipei 101 and ATT 4 FUN are gaining attention, the report said.

    The luxury and business fashion sectors contributed 20 percent of all new retail entrants to Asia-Pacific markets last year, the report said.

    The bulk of new entrants were second-tier luxury brands, since mainstream luxury groups are already well-established in the region, the report said.

    CAUTIOUS

    About 85 percent of luxury and business fashion retailers are looking at the region, although they are expected to adopt a cautious attitude toward expansion due to escalating operating costs, the report said.

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  • China beef processor launches online store

    China beef processor launches online store

    Speaking during last week’s inaugural Beef Festival in Chongqing, China’s largest metropolis, Feng Jiyu, general manager of Hengdou Agriculture Co, which operates a beef processor of the same name, said the company had been establishing a nationwide network of warehouses which would allow it to deliver nationwide once the company’s website was set up.

    Hengdou, said Feng, had established a marketing headquarters in Beijing and branch offices in all the country’s key population belts, including northerly Shenyang but also the populous central province of Henan and the wealthy southern cities of Guangzhou and Shenzhen.

    The announcement about an own-name online retail operation came after Hengdou, in March, launched nine new packaged meat products, such as cooked liver, tripe and brisket, prepared in various Chinese styles and frozen for quick cooking. The firm already sells a range of frozen steaks and dried jerkies. These are retailed via key Chinese online sites such as Taobao.com, Tianmao.com and Jingdong.com. Hengdou sells 150g packaged frozen steaks online for RMB22 with five-steak packs selling for RMB178 on Jingdong.com, a food-focused online retailer.

    The firm gives consumers instructions on how to cook beef such as steaks in ‘Western’ ways: Chinese cooking tends to emphasise the use of stir-fried cubes of beef as well as clay-pot cooking of variety/offal cuts.

    According to Feng, Hengdou is keen to maximise online sales both of gift boxes and convenience snack products. But it is also looking to sell wines, olive oils and other high-margin imported food products which it currently markets in marketing material to educate customers on how to consume beef.

    “We will increase both our online and our offline presence,” Feng told journalists in Chongqing. Notably, the firm last month opened a brand-name store in Beijing’s fashionable Wangjing district. “It is vital to use offline stores to build brand recognition,” said Feng. His retail clients include Walmart, RT-Mart and Carrefour outlets in China.

    Traceability is a key marketing point for Feng, who said online customers would be drawn to the company’s ability to trace meat – all of which, Feng said, came from the company’s own 300,000 herd of Simmental and Chinese-native Luxi cattle, fed in feed-lots adjacent to company slaughtering facilities in northern and south-western China.

    Hengdou has seen online retail shake up China’s traditional retail market in the past few years, with consumers switching to frozen and convenience meals in a manner before unseen in China where wet markets – most without any refrigerated meat – and supermarkets have long dominated.

    Based in Sichuan, one of China’s fastest-growing regional economies, Hengdou stands to gain from rising beef consumption, according to Feng, who pointed to average per capita beef consumption of “5kg per capita in China compared to 45kg in developed countries”.

    Long-term, China has the potential to export branded beef products to Muslim and other countries, stated Liu Changde, head of the beef committee at the China Animal Husbandry Association (CAHA), a government body. CAHA and the Chongqing government teamed up with Hengdou to organise the Beef Festival, which saw demonstrations on how to cook beef as well as how to recognise “water-injected and fake beef” according to an invitation to the event sent to China-based journalists.

  • Launches and Deals Announced at CommunicAsia, EnterpriseIT and BroadcastAsia 2015

    Launches and Deals Announced at CommunicAsia, EnterpriseIT and BroadcastAsia 2015

    Asia’s leading infocomm technology and broadcasting industry event maintains its position as platform of choice for companies to announce major launches and partnerships

    Over the past four days, Marina Bay Sands has been abuzz with activity as CommunicAsia2015, EnterpriseIT2015 and BroadcastAsia2015 brought the movers and shakers of the infocomm technology (ICT) and broadcasting industry together under one roof.

    Dell, Panasonic, Samsung and Sony, household names renowned for their consumer electronics chose CommunicAsia, EnterpriseIT and BroadcastAsia to announce major launches in their B2B segments.

    Panasonic, an exhibitor at both CommunicAsia and BroadcastAsia, announced seven new business technology products and solutions for the Asia Pacific markets. These include the Toughpad FX-X1, a fully-rugged 5-inch tablet, the new AG-DVX200, the world’s first 4K integrated zoom lens camcorder and the world’s lightest 4K+ 3-Chip DLPTM Laser Projector alongside the latest in mobile surveillance technology, blu-ray data storage, and professional broadcast video equipment.

    “Asia Pacific is a fast-growing dynamic marketplace, and presents huge opportunities for Panasonic across all our B2B business segments from integrated solutions to audio visual products,” said Hiro Sakamoto, Managing Director of Panasonic System Solutions Asia Pacific. “Our commitment to delivering total end-to-end solutions in the region is an integral part of our growth strategy. CommunicAsia2015 and BroadcastAsia2015 was an ideal platform for us to launch new products and solutions for the Asia Pacific markets as part of our commitment to strengthen our B2B business.”

    At CommunicAsia, Dell launched its new Internet of Things Gateway, while at BroadcastAsia, Samsung unveiled the world’s first low temperature video wall, and Sony – their new HXR-NX100 professional camcorder.

    Handset makers Huawei, PHICOMM and RugGear also launched their flagships P8, P660 and GranTour Series – RG730 respectively at CommunicAsia.

    “CommunicAsia, EnterpriseIT and BroadcastAsia are cornerstone events in the Asia Pacific ICT and broadcasting industries. With experts and decision-makers from a wide range of fields, the events provide an important Asian platform for companies and industry leaders alike to announce new, best-of-breed launches, and deliver key announcements that not only signal a pivotal shift in how enterprises are embracing technology in the way business is conducted, it also demonstrates clearly how technology has become indispensable in the new generation of business growth strategies. We continuously aspire to deliver great, if not better, quality events as countries and regions make further inroads in their smart cities journey towards a hyper-connected digital world,” said Lindy Wee, Chief Executive of event organiser, Singapore Exhibition Services.

    “I had no idea how big CommunicAsia was. There are so many high profile companies and people here. It has been great to meet these people in person and develop new friendships and business relationships that are going to help my own business grow,” said CommunicAsia2015 Summit speaker and CEO of MCOI, Joshua Steimle.

    Smart Technologies to realise Singapore’s Smart Nation initiative Dr. Yaacob Ibrahim, Minister for Communications and Information announced at the opening ceremony of CommunicAsia, EnterpriseIT and BroadcastAsia that Singapore has entered the “build” phase of its Smart Nation initiative.

    In support of Singapore’s Smart Nation vision, local company ST Electronics launched the Intelligent Aggregation Gateway (iAG) Box – a key enabler to ubiquitous connectivity for smart cities. Facilitating sensor communication infrastructure on a single secure platform, the iAG box can be deployed in an urban environment to help with the management of a city’s key infrastructure for public safety, healthcare, transport, environment and utilities.

    Alongside major conglomerates, also playing a significant role in paving the way for Singapore becoming a ‘Smart Nation’ are start-ups like CtrlWorks, Neeuro and Zap!. At CommunicAsia, CtrlWorks showcased Axon, an intelligent robot powered by cloud robotics technology, easing manpower needs for areas such as logistics and hospitals. Neeuro pioneered an innovative EEG brainwave headgear that, when paired with Memorie – a mobile app with entertaining games suited for people of all ages, can train different aspects of the brain’s cognitive functions through completion of specific tasks, and enable them to apply the attained skills to daily activities. Another exciting product launch is Zap!, an ‘Uber’ courier service that offers less than two-hour deliveries from as low as S$5.

    Australian firms announced major deal at CommunicAsia2015

    On the international front at CommunicAsia, ICT companies from Australia marked a decade of participation. The 49-strong delegation from the Victoria region of Australia announced a range of new partnerships, expansions, licensing deals and international joint ventures centred on ICT health and medical technology industries. UnityHealth licensed its award winning eLearning platform, iTherapeutices, to Singapore based MIMS. Proximiti announced the expansion of company operations through two new regional hubs in Singapore and India. flexAnswer Solutions signed a five-year renewal contract with Changi Airport Group, and new contracts with seven Singapore government agencies.

    “Victoria has a strategy to help our ICT, health and medical technology companies to become part of global supply chains in knowledge creation, research, product development and commercialisation. The Andrews Labor Government is proud to be showcasing our state’s world class ICT capabilities at CommunicAsia2015, the most important ICT expo in South East Asia,” said Australian Minister of Training and Skills, Steve Herbert.

    Shifts in broadcasting economics addressed at BroadcastAsia2015

    With consumers increasingly taking control of where and when they want to access content, BroadcastAsia2015 responded by bringing together the latest in OTT and 4K technology, media asset management (MAM) and video analytics.

    ARRIS, a global innovator in IP, video and broadband technology gave BroadcastAsia attendees an exclusive first look of its 2015 Consumer Entertainment Index. It is one of the only global studies of its kind undertaken annually that looks at the evolution of entertainment through the lens of consumer engagement with content, connected devices, and each other.

    “This week at BroadcastAsia2015, we shared a first look of the findings of our ARRIS Consumer Entertainment Index. This event provided the perfect platform for us to talk about the evolving trends of consumers from across APAC. This year’s study revealed that while consumers’ consumption habits are changing, there are many frustrations, such as challenges with streaming and Wi-Fi connectivity, and experiencing quality mobile TV content through cellular and mobile Wi-Fi streaming services,” said Tim Gropp, Senior Vice President, Sales, Asia Pacific, ARRIS. “Understanding their concerns present significant opportunities for service providers. Beyond addressing these issues, businesses can look at developing new and differentiated offerings that would be most relevant to viewers.”

    “BroadcastAsia is THE meeting place for broadcasters in the region. The wide spectrum of products and variety of exhibitors allow me to choose the ideal digital solutions for our company’s ICT strategy,” said BroadcastAsia2015 visitor Alain Roger Poirier, Chief Operating Officer, Bloomberg TV Malaysia.

    Best Practices and Growth Potential – The Focus of Industry Discussions

    More than 1,000 industry leaders and professionals gathered at CommunicAsia2015 Summit, BroacastAsia2015 International Conference and the Creative Content Production Conference to discuss latest ICT trends, fundamental shifts in broadcasting economics, and digital media challenges.

    “BroadcastAsia2015 International Conference was a good combination of both technical and commercial aspects of cloud and virtualisation, as it applies to all video applications. Attendees were a good balance between IT, enterprises and those with broadcast experience,” said Ian Trow, BroadcastAsia2015 International Conference speaker and Senior Director of Emerging Technology and Strategy at Harmonic.

    “The social TV and second screen track was absolutely outstanding this year. 2014 and 2015 has seen some of the biggest changes in OTT, social media and the second screen and our panelists and speakers represented all different parts of the business. From gamification to analytics and video this year’s BroadcastAsia was truly enlightening when it came to understand the future of TV,” said BroadcastAsia2015 delegate and Senior Vice President of the Shorty Awards & Muck Rack, Natan Edelsburg.

    “The session was especially enlightening in terms of service providers’ business plans to leverage convergence to deliver cross platform services that are engaging to customers,” said Yuvarami T, Director, Media Development Authority, a CommunicAsia2015 Summit delegate.

    More than 48,000 attendees from 101 countries and regions, including visitors, exhibiting staff, conference speakers and delegates, and members of media, got to witness at CommunicAsia, EnterpriseIT and BroadcastAsia how technology could be harnessed to better connect cities, governments, enterprises and consumers.

    The event will return to Marina Bay Sands on 31 May – 3 June 2016.

    About CommunicAsia

    At CommunicAsia2015, the latest innovative technologies from Big Data, Business Analytics, Cloud technologies, IoT, to Zigbee will be unveiled. These advances are poised to change the way we live and work. www.CommunicAsia.com

    As Asia’s largest integrated ICT event, CommunicAsia2015 is held concurrently with EnterpriseIT2015 and BroadcastAsia2015.

    EnterpriseIT2015 is the leading event for businesses to source for the latest innovations and solutions that enable them to stay relevant in the rapidly digitalising and consumer-led business landscape. These innovations include connected home, smart office, wearable devices and technologies, mobile payment, mobile health and more. www.goto-enterpriseit.com.

    BroadcastAsia2015 is the largest representative integrated event for film, TV and entertainment industries. www.Broadcast-Asia.com.

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  • Jack Ma enters Korean market to expand Alibaba empire

    Jack Ma enters Korean market to expand Alibaba empire

    Jack Ma, the chairman and founder of Alibaba Group Holding Ltd. who holds assets worth $36.4 billion, visited South Korea for the third time on May 17 to announce the launch of the Korea Pavilion on T-Mall, a business-to-consumer online retail channel.

    T-Mall is a profitable business for Alibaba Group Holding Ltd., with gross merchandise volume of 763 billion yuan (about $123 billion) last year.

    The Korea Pavilion, which opened May 18, deals with Korean retail items. The decision stems from the popularity of Korean products in China ― an employee at Alibaba Group Holding’s overseas business team stated that a Korean herbal cosmetics brand was their best-selling item during China’s Singles’ Day on Nov. 11 last year.

    But profit appears to be just one reason behind Ma’s decision to enter the Korean market. It appears that Ma has decided to use the Korean market as a testing ground to realize his vision of fostering Alibaba Group Holding Ltd. as a giant cultural empire beyond online retail.The T-Mall Korea Pavilion plans to attract Chinese customers by offering popular Korean products on their online retail website.

    At the Korea Pavilion opening ceremony held at the Korea Agro-Fisheries & Food Trade Corp. on May 18, Ma expressed delight in opening an online mall where Chinese customers can shop for authentic Korean products in one place.

    His use of the word “authentic” is noteworthy, showing his determination to use the Korea Pavilion to steer away from controversy over counterfeit products being sold through Alibaba channels.

    Alibaba has faced allegations that nearly half of the goods exchanged through several of their e-commerce sites are counterfeit.

    The Chinese government has also accused Alibaba Group’s e-commerce site Taobao of selling counterfeit products and failing to track them down effectively.

    Ma addressed the issue at the opening ceremony, stating that counterfeit products have been one of the biggest problems in the Chinese market, and adding that Alibaba Group has drastically reduced the sale of counterfeit goods through 10 years of effort.

    At the Asian Leadership Conference held last Tuesday at Hotel Shilla, Ma also said that “in order for corporations to survive for over 30 years, they must solve social issues,” and emphasized that Alibaba Group had created 14 million jobs. His statements reflect Ma’s additional plans for the South Korean market in addition to opening the Korea Pavilion.

    Ma appears interested in luring Korean youths as core followers of Alibaba, and announced that the group would offer a paid internship program in China specifically for Korean graduates, starting in July.

    Ma said Alibaba valued the potential growth of those in the younger generation who are setting out to create their own jobs, and that the program would target young Koreans in order to invest in their talent.

    Students who have gone through internships with Alibaba Group Holding Ltd. and start their own business are likely to sell their products through the T-Mall Korea Pavillion, as they would have learned how to best navigate the company’s online platform.

    Ma has also shown an interest in supporting tech start-ups run by young Korean entrepreneurs, signaling a possible cultural shift where Alibaba Group financially supports Korean start-up companies, while securing them as loyal customers.

    In addition to reinventing its image and finding new target audiences, Ma’s other business decisions seem to suggest that he views Korea as an eventual partner for his emerging cultural content business.

    Ma has been investing heavily in the sports and entertainment industry in China. Since March 2014, Ma has reportedly invested about $3.3 billion in cultural and entertainment-related businesses.

    Recently, Ma’s private equity firm Yunfeng Capital and Dalian Wanda Group chairman Wang Jianlin invested 800 million yuan ($129 million) on Chinese online entertainment company LeTV, specifically on LeTV Sports.

    LeTV Sports is one of the largest sports channels in China, with broadcasting rights for 121 international sports competitions.

    With the investment, Yunfeng Capital holds 7.8 percent of LeTV Sports’ shares, while Wang has 11.4 percent of the shares.

    Chinese investment experts speculate that Ma’s investments were a necessary component in building his “cultural empire,” and stated that Ma may likely be looking for an innovative business model in the sports and entertainment sectors.

    Jack Ma’s Korean entrance may simply appear to be an expansion into another major Asian market, but behind his decision is an elaborate plan to reinvent his company’s tarnished brand image, reaching out to potential customers through job creation and financial support, and branching out its business into new areas that include culture and entertainment.

    Ma’s plan has likely been in the works for a significant amount of time, evidenced by the wall-sized Alibaba Group Holding Ltd. advertisement at an exit of Myeongdong Station.

    The ad, which had been on display for several months, featured both Korean and Chinese slogans, signaling its intent to appeal to Koreans and Chinese.

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  • Travel specialist DFS Group unveils store at Changi Airport

    Travel specialist DFS Group unveils store at Changi Airport

    Luxury travel specialist DFS Group has opened its largest global store: a wine, spirits and tobacco flagship at Singapore’s Changi Airport.

    The store, in the airport’s Terminal 3, covers 11,400 sq ft across two floors. Designed by award-winning interior designer Masamichi Katayama, the shop features the Raffles Long Bar, in collaboration with Singapore’s famous Raffles Hotel. The ground floor also includes atrium tasting bars and a private lounge.

    Drinks brands Absolut, Dom Pérignon, Glenfiddich, Hendrick’s, Hennessy, Johnnie Walker, The Macallan, Martell, and Penfolds are showcasing their heritage and products within individually designed boutiques.

    DFS Group chief executive and chairman Philippe Schaus said: “When we embarked on this unique project, we wanted to offer Singapore, the most renowned travel destination in Southeast Asia with the most modern airport, a wines and spirits store of a quality and richness unlike anywhere else in the world.

    “That is why we secured the collaboration of Masamichi Katayama to build this one-of-a-kind, two-level experiential store, drawing inspiration from the most stylish bars and restaurants around the world as well as from the traditional and historic cellars of France and Scotland.”

    Lee Seow Hiang, chief executive of Changi Airport Group, added: “The store – with its stunning façade and double-volume grandeur – is not only a design showpiece on its own, but the extensive range of products and unique boutiques truly enhance the overall retail experience.”

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  • Thailand cost-effective destination for luxury brands

    Thailand cost-effective destination for luxury brands

    “During the last two years, more than 100 new global brands have entered Thailand. That has approximately doubled the number of stores [in this category] compared with 2012,” he said.

    The top brands are from Italy, Britain, Australia, Japan, Hong Kong, Singapore and Sweden.

    The cost of investment for luxury brands setting up in Hong Kong is about double that of Thailand, and Singapore costs 1.5 times as much. Costs here are also much lower than in many Western countries.

    Kriengsak said Thailand was also popular with international brands because of the size of the market, with a 70-million local population and tens of millions of tourists. “There are also more than 500 million people in the region. As such, top international brands are looking at expanding throughout the region from their stores in Thailand.”

    Another key reason for the fast growth in luxury brands’ presence here is the fact that tourism has recovered after suffering a huge drop last year during the political crisis. Meanwhile developers have new unique venues in place.

    Kriengsak said retail business would continue to grow during the rest of the year. However, he urged government to promote the country as a shopping destination as well as to assure foreigners that Thailand is a safe place to visit.

    “When The EM District, which is so far consists of The Emporium and EmQuartier, is fully opened, including the Bhiraj Tower, we expect 200,000 customers per day.”

    This year, it is forecast that visitors from other Asean countries will contribute Bt10 billion in sales, helping increase The Mall Group’s sales by Bt53 billion or 6 per cent from 2014.

    At EmQuartier, about 90 per cent of retailers have opened their doors. More world-class brands will open outlets soon: the first and only branch in Thailand of New York jewellery store Tiffany & Co; French jeweller Van Cleef & Arpels; separate Dior boutiques for women and men, Lady Dior and Dior Homme; Burberry; Emporio Armani; Issey Miyake; Tod’s; Canali; Patek Philippe; Rolex; and Hublot.

    The Mall Group plans to open a new shopping mall called Bluport in Hua Hin next year, followed by another Bluport in Phuket in 2018, and Emsphere in The EM District in 2019.

  • South Korea April department store sales barely rise

    South Korea April department store sales barely rise

    May 27 Sales at top South Korean department stores rose 1.3 percent in April from a year earlier, revised government data showed on Wednesday, turning from a fall in March but slightly weaker than a recent estimate. It was compared to a preliminary 1.5 percent gain estimate by the finance ministry early this month and a 5.7 percent fall in March.

    The sales data from department stores run by Hyundai Department Store, Lotte Shopping and Shinsegae Co is a useful guide on retail sales trends in Asia’s fourth-largest economy.

    The same industry ministry data showed annual sales at discount stores held steady in April from a year earlier, slightly better than a 0.2 percent fall previously estimated.

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