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  • Thai beauty market booms

    Thai beauty market booms

    The Thai beauty industry is growing rapidly, fuelled by increasingly sophisticated consumers, including men.

    Sales in the lucrative luxury segment soared 24 per cent last year, aided by reductions in duty tariffs seen as a government initiative to attract more foreign shoppers.

    With 70 million potential consumers, there are many opportunities for international and domestic companies in what the organisers of ASEANbeauty 2015 trade show next month describe as “a vibrant market, which values new and innovative products”.

    ASEANbeauty 2015 expects to attract over 200 exhibiting brands from different countries and regions including Taiwan, mainland China, India, Japan, South Korea, Malaysia, Hong Kong, Singapore, the Philippines and Thailand, who will join a host of global businesses focusing on the Asia region. Many of these brands will take the opportunity to launch new products and innovations during the event.

    Held at the Bangkok International Trade & Exhibition Centre (BITEC) in Bangkok, Thailand, ASEANbeauty 2015 will run from April 8 to 10.

    On the afternoon of April 8, a panel discussion Thailand is Ready for The ASEAN Beauty Market, with invited speakers from association and government bodies will share thoughts on how Thailand is ready for the ASEAN beauty market and how the upcoming ASEAN Economic Community will impact the ASEAN beauty industry as a whole.

    Consumers and Marketing Focus for The Cosmetics Industry in 2015 will enable industry players to stay ahead with the latest trends, with brand new market data, case studies and insights.

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  • Yelp lands in Taiwan

    Yelp lands in Taiwan

    Business rating app Yelp has opened a portal in Taiwan.

    Yelp allows shoppers and customers of other businesses to share their opinions and experiences in a similar way TripAdvisor allows crowd ratings of restaurants, hotels and holiday destinations.

    From this week, people throughout Taiwan can create accounts on Yelp.com.tw  and use the free iPhone and Android applications as well as its free suite of business owner tools: Yelp for Business Owners.

    “From shopping at street markets for sweet and savory snacks, to getting lost on the many hiking trails, Taiwan is an energetic tropical island full of surprises,” says Miriam Warren, VP of new markets. “Similar to Yelp’s home in Silicon Valley, a bevy of influential technology firms make their home in Taiwan. It’s definitely a natural fit.”

    Yelp is already in Singapore, Hong Kong and Japan and The Taiwan debut continues an Asia growth ambition. The company will initially appoint a community manager in Taipei, whose role will be to build a local community of Yelpers in Taipei.

    Yelp is available to everyone in Taiwan with access to the Internet, whether that be via their desktop, smartphone or tablet, and they can do so in any one of the 16 languages that Yelp currently supports, including traditional Chinese.

  • Chinese drive Europe outlet malls

    Chinese drive Europe outlet malls

    Chinese travellers are poised to become the biggest global spenders at McArthurGlen designer outlets in Europe.

    Fashion-conscious travellers from China and across Asia are spending big at McArthurGlen’s  20 Designer Outlet centres located across Europe, with Chinese visitors poised to become the most prolific spenders in 2015.

    The company, a joint venture with US property giant Simon, says total tax-free sales at McArthurGlen Designer Outlets reached a record high in 2014, reflecting a more than quadrupling of sales to international travellers over the past four years.

    “Impressive sales growth was seen from Chinese shoppers, up 36 per cent, and from Korean travellers, whose spending increased 32 per cent” the company said.

    The projections for future Chinese spending overseas are even more impressive. In 2014, 109 million Chinese tourists spent US$164 billion worldwide, while 174 million Chinese tourists are tipped to spend $264 billion annually by 2019, according to Bank of America Merrill Lynch.

    “These upward global spending figures are being reflected in sales at McArthurGlen’s Designer Outlets. In 2014, Chinese shoppers accounted for 25 per cent of total tax-free sales, ranking second overall behind Russian travelers (29 per cent). Korean visitors ranked third, with five per cent of total tax-free sales.

    “In 2015, Chinese visitors will likely overtake Russian tourists as the number one international spender.”

    McArthurGlen Designer Outlets is responding to the burgeoning Chinese interest by increasing its digital engagement with consumers in China. A dedicated page is about to be launched on social media channel WeChat, and McArthurGlen also re-launched its Sino-Weibo page. In addition, the McArthurGlen App and The Guide is available in 12 languages, including Chinese.

    Anthony Rippingale, McArthurGlen’s head of tourism, says the company’s sales to international shopping tourists are increasing twice as fast as for overall tax-free retail sales in Europe.

    “We are noticing particularly impressive growth from Korea and China, whose shoppers rank first and second for average transaction value for international visitors.”

    Across all international shopping markets, the most popular McArthurGlen Designer Outlets in 2014 for tax-free shopping were: Serravalle (near Milan, Italy), Roermond (near Düsseldorf, Germany), Parndorf (Vienna, Austria), Noventa di Piave (Venice, Italy) and Castel Romano (Rome, Italy).

    In June, McArthurGlen will open its first centre outside Europe, in Vancouver, Canada.

    “The latter will be of special interest to Chinese shoppers after the announcement of the new 10-year Canada visa plan for Chinese guests was announced in March,” the company said.

    McArthurGlen Group, Europe’s leading owner, developer and manager of designer outlets, was founded in Europe by Kaempfer Partners in 1993. Since then, the company has developed nearly 600,000 sqm of outlet space, with a current value of more than euro 3 billion, and manages 20 McArthurGlen Designer Outlets across eight countries: Austria, Belgium, France, Germany, Greece, Italy, the Netherlands and the UK.

    In 2013, McArthurGlen became a joint venture between the world’s largest retail developer, Simon Property Group, and Kaempfer Partners.

  • Retailers close for founder’s funeral

    Retailers close for founder’s funeral

    Department stores Metro and Tangs will close their Singapore outlets all day on Sunday, when the state funeral for the nation’s founder and former prime minister Lee Kuan Yew will be held.

    Retailers Mothercare Accessorize, Island Shop boutiques, Cache Cache and King Kow are among others to announce their closure.

    All Singapore Pools (betting) retail outlets will close all day.

    The closures were announced as a gesture of respect to the much admired former leader.

    The Straits Times newspaper quoted Metro’s advertising and promotions manager Veronica Lee saying: “We felt that we should do so as a mark of respect. Staff will also get a day off to show thanks and reflect.”

    Normal operations will resume on Monday.

    Earth Hour activities planned for City Square Mall on Saturday by City Developments were cancelled.

    The newspaper reports that three retailers in The Shoppes at Marina Bay Sands have postponed events, including Cath Kidston’s island-wide marketing campaign and the official store opening event of Kate Spade New York. Other sale promotions have been suspended.

  • Harvey Nichols Baku opens

    Harvey Nichols Baku opens

    The once Soviet state of Azerbaijan has become British department store Harvey Nichols’ newest overseas market.

    A new seven-storey Harvey Nichols store has opened in the 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.

    Stacey Cartwright, group CEO of Harvey Nichols, said in an interview 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”.

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

    Harvey Norman Baku opens amidst esteemed neighbours, with Burberry, Armani, Valentino and Dior already operating stores in the city, and Donald Trump planning to open a hotel there in June.

    Baku will host a Formula One Grand Prix on a street circuit from 2016.

    Located on shore of the Caspian Sea, Baku has a population in excess of 2 million.

  • Dairy Farm boosts Macau reach

    Dairy Farm boosts Macau reach

    Hong Kong’s Dairy Farm International has acquired the Macau-based supermarket operator, San Miu Supermarket.

    The purchase price was not disclosed.

    San Miu operates 15 mass-market supermarkets with an average gross store size of approximately 9500 sqft.

    In a statement, Dairy Farm said the purchase of San Miu reinforces Dairy Farm’s retail presence in Macau, and complements its well-established convenience store and health and beauty businesses in the territory.

    Dairy Farm Group, together with its associates and joint ventures, operates more than 6100 outlets – including supermarkets, hypermarkets, convenience stores, health and beauty stores, home furnishings stores and restaurants – employing over 100,000 people. It posted total annual sales in 2014 exceeding US$13 billion. It is a member of the Jardine Matheson Group.

     

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  • Levi’s saved 1 billion litres of water through sustainability initiatives

    Levi’s saved 1 billion litres of water through sustainability initiatives

    Levi Strauss & Co (Levi’s) has saved 1 billion litres of water since 2011 through its Water<Less process, which reduces the water used in garment finishing by up to 96 percent, the clothing company said on Wednesday.

    It has also released an update on it 2007 study that examined the environmental impact of Levi’s products – Product Lifecycle Assessment (LCA). The new study analysed the complete product lifecycle, probing deeper into the environmental impacts of cotton in key growing regions, apparel production and distribution in a range of locations, and consumer washing and drying habits in key markets.

    The study shows that of the nearly 3,800 litres of water used throughout the lifetime of a pair of jeans, cotton cultivation (68 percent) and consumer use (23 percent) continue to have the most significant impact on water consumption. Consumer care is also responsible for the most significant energy use and climate impact, representing 37 percent of the 33.4 kilograms of carbon dioxide emitted during the lifecycle of a jean. The new LCA expands on previous research to better understand the impact of cotton cultivation and includes data from the world’s primary cotton producing countries, including the United States, China, Brazil, India, Pakistan and Australia. It also analyses consumer care data from new markets, including China, France and the United Kingdom, to understand the costs and benefits of differences in washing habits.

    To reduce the impact of cotton consumption, Levi’s is working with the Better Cotton Initiative (BCI) to train farmers to grow cotton using less water. Based on the latest BCI harvest data available, in 2013, cotton farmers in China reduced their water use by 23 percent compared with farmers who were not using BCI techniques. Levi’s plans to continue working with its global suppliers with the goal of sourcing approximately 75 percent Better Cotton by 2020, up from 6 percent today.

    The denim company will also continue to work toward using less water during manufacturing by expanding the Water<Less process to include more Levi’s products, such as tops. By 2020, the Levi’s brand aims to make 80 percent of its products using Water<Less techniques, up from nearly 25 percent today.

    The new LCA also reveals that Americans use more water and energy to wash their jeans than consumers in China, France and the UK It shows that consumers in China wear their jeans, on average, four times before tossing them into the wash – and if American consumers did this, they could reduce the water and climate change impact from washing their jeans by 50 percent.

    “It’s time to rethink autopilot behaviours like washing your jeans after every wear because in many cases it’s simply not necessary,” said Chip Bergh, CEO and president of Levi’s. “Our LCA findings have pushed us as a company to rethink how we make our jeans, and we’re proud that our water stewardship actions to date have saved 1 billion litres of water. By engaging and educating consumers, we can fundamentally change the environmental impact of apparel and, ideally, how consumers think about the clothes they wear every day.”

  • Apple plans China iPhone trade-in program with Foxconn

    Apple plans China iPhone trade-in program with Foxconn

    Apple Inc plans to introduce a trade-in program for iPhones in China in association with the Foxconn Technology Group, Bloomberg reported, citing people familiar with the effort.

    Under the program, consumers will be able to exchange older iPhones at Apple stores in China for credit against the company’s products starting 31 March, Bloomberg reported.

    Chinese demand for larger-screen iPhones helped fuel Apple’s record profit of USD18 billion in the final quarter last year.

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  • Malaysia retail sales slip

    Malaysia retail sales slip

    Retail sales in Malaysia fell by nearly one per cent in the last quarter of 2014 as consumers cut back spending, spooked by the looming introduction of GST.

    On April 1, Malaysia’s government introduces a goods and services tax on most items, excluding food, of six per cent.

    Sales in the fourth quarter fell 0.8 per cent year-on-year – the worst quarterly performance on record, and below predictions by the Malaysia Retailers Association (MRA).

    The poor fourth quarter lowered the full year figure to 3.4 per cent growth, compared with 4.5 per cent growth in the previous year.

    Retail Group Malaysia (RGM), in a report released this week titled Malaysia Retail Industry Report, said Christmas, lower fuel prices and the year-end sale season all failed to lift sales.

    “Furthermore, the (impending) implementation of the goods and services tax (GST) next month did not stimulate consumption during the last quarter (of 2014). Retailers used heavy discounts to encourage consumers to shop, but failed to generate higher sales. During the quarter, many retailers suffered declines in profit margin growth,” the report said.

    Department store sales fell 5.7 per cent last quarter, while hypermarket sales rose just one per cent. Fashion and accessory sales fell 2.2 per cent.

    Miscellaneous retailing – including optical products, second-hand goods, health and fitness equipment, toys, souvenirs, duty-free goods, arts and crafts, photographic equipment – and foodservice, believe it or not – performed the worst, with sales contracting 6.7 per cent.

    RGM is concerned consumers do not understand the potential impact – or lack thereof – on retail prices post-April 1.

    “Retail sales performance during the first two months of this year was below expectation as consumers were confused by different public messages on the prices of retail goods and services after March 2015,” it said.

    Possible rushed purchases – to avoid paying six per cent on big ticket items – may power sales growth in the first quarter of 2015. In the survey, MRA members said they were hopeful of a recovery, RGM estimating growth of 5.8 per cent.

    But RGM has lowered its 2015 full year prediction from 5.5 per cent growth to 4.9 per cent growth.

    “Malaysian consumers will get used to GST by the last quarter of 2015. Retail spending will return to normal again by this period. Retail is expected to recover strongly with a 6.9 per cent growth rate,” it said.

     

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  • Global Brands revels in maiden result

    Global Brands revels in maiden result

    Global Brands, the listed Li & Fung spinoff, has reported its first trading result – reveling in a 37 per cent profit rise.

    The Hong Kong based company listed as an independent business on July 9, a move CEO and vice chairman Bruce Rockowitz says afforded it the freedom to fully build its brands business and pursue its own distinct and focused strategy. That strategy includes a direct-to-consumer business,, which would not have been possible under the Li & Fung business model. “At the same time, we continue to enjoy the benefit of being a member of the Fung Group.”

    Group sales in the second half totalled US$2.105 billion, up 7.5 per cent on the same period the previous year, while profit rose 36.6 per cent to $217 million.

    Merging the half years under the two ownerships into one set of figures, annual sales reached $3.454 billion and profit $154 million .

    Rockowitz says the business will continue to primarily concentrate on ‘American power brands’ through Licensed Brands and Controlled Brands divisions.

    “On the Licensed Brands side, we continue to sharpen the focus of our platform in terms of both the product categories that we offer and the brands that we work with, while expanding the platform globally.

    “One notable achievement of our efforts is that today we are among the largest licensed brand companies within the kids sector, a success that is based upon our leadership position in characters as well as in kids fashion. We have a truly global platform in the kids area, and we are working hard to further strengthen our prominent position in key categories and geographies worldwide.

    “In the US, notable achievements include the master licensing agreement that we signed with Disney in the sleepwear category in August. In Europe, our focus has been to integrate our businesses across major markets to strengthen our leadership across the region. In China, we have successfully established a strong platform for the kids fashion and character businesses.”

    Global Brands is also building its licensed brands portfolio , securing deals with major American brands in footwear and accessories: a new global accessory licensing relationship was signed with Cole Haan last year, and in January 2015, with Kate Spade.

    “In addition, we renewed our global footwear license agreement with Coach. These are all highly successful affordable luxury brands with strong growth momentum,” said Rockowitz.

    The company exited its private label jewellery business post listing and consolidated its home and women’s apparel offers to ensure each is run more efficiently.

    On the Controlled Brands side, the company made special mention of Frye, an American brand with a strong heritage.

    “Our Frye retail stores delivered strong results, while sales through our eCommerce portal Frye.com also recorded significant growth. Looking ahead, we see the further expansion of our retail footprint, growing online sales and extending our product offering as being the key drivers to building Frye into a global lifestyle brand. We have also made a number of key hires to accelerate growth.”

    Spyder has established itself as “a high end, high performance” skiwear brand in the US and Europe.

    “We are working to expand its presence in other geographies as well as in other product categories. In particular, we believe this is an opportune time to make a big push for Korea (the host country for the winter Olympics in 2018) and China. We believe the brand’s edgy aesthetics and high performance will resonate well in these key Asian markets.”

    Juicy Couture has started with very strong sales momentum and retail partners are actively working on a plan for new store openings globally.

    Aquatalia, though much smaller in scale than Frye, has proven its brand appeal, and expanded into menswear with a Fall 2015 collection.

    In December, Global Brands announced a joint venture with David Beckham and his business partner Simon Fuller. The joint venture, Seven Global, focuses on the continued development of the brand around David Beckham as well as on creating large scale brands in partnership with a select number of high‐profile sports and entertainment icons. The venture will cover all major consumer product categories.

    “We are extremely excited about the prospects that lie ahead for Seven Global,” said Rockowitz. “With our strong global platform of TLC, one of the world’s leading brand management companies that we acquired in January 2014, we are confident we can establish Seven Global as a trendsetting enterprise in the sports and entertainment space.”

    Rockowitz said although the macroeconomic environment remains complex, the company expect its margins will continue to trend upwards due to its growth in scale, improvement in gross margins and an improving business mix in favor of higher‐margin businesses, and an ongoing focus on integrating its businesses and rationalising the cost structure, while exiting unprofitable and non‐core businesses.

    “As we continue to grow and strengthen our business, one strategic priority is to extend our global reach. We have established a leading platform in our space in the US, which will remain our largest geography for the foreseeable future, and we believe we can successfully replicate this in Europe and Asia.”

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  • Foodpanda Malaysia reaches 700

    Foodpanda Malaysia reaches 700

    In just three years, Foodpanda Malaysia has expanded its offer from 40 restaurants to more than 700.

    The online restaurant food delivery service this month markets its third birthday, with country manager of Foodpanda Malaysia, Sidney Ng, reflecting on how the business launched with just 40 restaurants operating in the Klang Valley, home to capital Kuala Lumpur..

    Now Ng says the network is larger than 700 and covers most major cities in the country, including Johor Bahru, Penang, Ipoh and Melaka.

    “Foodpanda Malaysia has come a long way,” said Ng.

    “From just taking orders via our website, progressing to a mobile friendly site and finally developing a mobile application.

    “We recognise modern consumers are moving towards mobile technology and we want to make ordering food as seamless as just a few taps on our app. We will also be launching a new version of our app very soon that will simplify the order process.”

    Foodpanda Malaysia has plans to expand its current delivery zones within the Klang Valley and to launch operations in Kota Kinabalu. It also plans to add more restaurants and to further develop its website, mobile application and overall operations.

    “We treasure our partnership with Foodpanda – they have definitely improved with leap and bounds in terms of both number of orders and operation efficiency since they started,” says Billie, the owner of Puzzini Pizza – one of Foodpanda’s early restaurants.

    Foodpanda Group is the leading global food delivery marketplace, active in 39 countries in five continents.

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  • Chow Tai Fook to partner in Vietnam casino

    Chow Tai Fook to partner in Vietnam casino

    Hong Kong based retail jeweller Chow Tai Fook is to partner in a US$4 billion casino project in Vietnam.

    Chow Tai Fook Enterprises, an affiliate of Chow Tai Fook Jewellery Group, the world’s largest jewellery retailer by market value, has already committed to investing in casino resorts in Brisbane, in the state of Queensland, Australia, and in South Korea.

    Now it will partner with Vietnamese investment group VinaCapital and Suncity, a Macau-based casino tour operator.

    Strict regulations in Vietnam prevent locals from gambling inside the country, however the government allows developments to serve tourists or those locals who hold a foreign passport. New casino licences will only be issued to developments with an investment value in excess of $4 billion, which deters minor players.

    Other international gambling businesses, like Sheldon Adelson’s Sands Group have gone as far as creating plans for integrated resorts featuring casinos, but have stopped short of commencing construction until the government loosens restrictions on locals playing.

    Reuters reports the new resort will be located in Quang Nam in the central part of Vietnam

    The news agency said Chow Tai Fook’s involvement was confirmed by VinaCapital after the jeweller issued no comment beyond confirming “preliminary studies”.

    Chow Tai Fook has reportedly replaced Malaysian casino operator Genting which withdrew from the project in 2012 due to the local gambling restrictions.

    Reuters said the government was “mulling” a change in the legislation but has not released a policy as yet.

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  • Amazon to acquire Net-A-Porter?

    Amazon to acquire Net-A-Porter?

    Speculation is rife that e-commerce giant, Amazon, is in talks with online luxury retailer Net-A-Porter for what could be its biggest acquisition yet.

    Luxury goods group, Richemont, bought Net-A-Porter in 2010 for around €350 million (A$492.35 million).

    Net-A-Porter, has seen huge growth in the last few years, and is reportedly worth more than £2 billion globally.

    Founded in 2000, Net-A-Porter stocks more than 350 designers including Alexander McQueen, Chloé, Dolce & Gabbana, Isabel Marant, Jimmy Choo, Miu Miu, Stella McCartney, and Valentino.

    In 2009, the company launched discount fashion website, The Outnet, and in 2011 created menswear website, Mr Porter. In 2014, Net-A-Porter Group’s publishing division  launched the company’s first ever consumer magazine, Porter.

    Following a series of investments, including a significant push into fashion, Amazon surprised the market with far better than anticipated Q4 profit results.

    Amazon posted earnings of $US214 million ($A275.88 million) in the fourth quarter as sales jumped 15 per cent to $US29.3 billion, swinging to profit after two consecutive losing quarters.

    The Seattle-based company faced pressure from shareholders to deliver profits even as founder Jeff Bezos invested in a vast array of projects.

    For the full year 2014, Amazon posted a net loss of US$241 million on sales of US$89 billion.

    Amazon has denied speculation of the Net-A-Porter acquisition.

  • Lawson Philippines debuts today

    Lawson Philippines debuts today

    The much anticipated debut of Lawson Philippines will occur today, Monday.

    The first store will open in the Manila suburb of Sta. Ana.

    Lawson Philippines is a joint venture between local operator Puregold Price Club (70 per cent) and Lawson Japan (30 per cent). The two companies plan a massive network of 500 convenience stores across the Philippines by 2020, with up to 100 opening this calendar year.

    Initially the chain will be focused on metro Manila.

    Lawson’s debut will have little immediate effect on the nation’s cstore sector, but once it builds critical mass, it will present a challenge to the dominance 7-Eleven chain and compete with the rising FamilyMart and Ministop networks.

    “Under the partnership, Lawson will provide its expertise in convenient stores know-how and product development while Puregold will provide its expertise in product procurement and localized knowledge of the retail consumers,” the company said in a statement.

    In May 2014, during a visit to Manila, Lawson Japan chairman Takeshi Niinami said the company was planning as many as 2000 convenience stores in the Philippines in the long term.

  • China sinks Prada profit

    China sinks Prada profit

    Luxury retailer Prada Group has blamed China for a 28 per cent slump in profit last year.

    The Italian company says sales in its key Asia-Pacific market – which contributes 35.7 per cent of its global turnover – slid 3.1 per cent.

    This was largely due to the clampdown in corporate gift giving as China tries to reduce graft, and changing purchasing patterns in Hong Kong, which cashed up Chinese are spurning for other travel destinations.

    “Results in the region were hit by the negative performances recorded in Hong Kong and Macau. The Greater China area still benefited from growth on the [mainland] Chinese domestic market and ended the year with net sales of 774.1 million euros, a decrease of 6.3 per cent,” the company said.

    While Prada accounts for 81.2 per cent of the group’s sales, Miu Miu and Church’s both improved globally, while the smallest, Car Shoe, returned a sales drop of 11.9 per cent.

    Prada opened 21 new stores in Asia Pacific in the year to January 31 and closed three. Retail sales slid 5.5 per cent, but this was in part compensated for by a double digit growth in the wholesale division, largely due to increasing numbers of inbound tourists into South Korea. In the Americas, sales were up 0.9 per cent.

    In Europe, sales fell 4.9 per cent, but in Japan (which is not included in the Asia-Pacific figures) sales rose 7.9 per cent, despite store network rationalisation.   Prada said overall revenue for the year dipped by one per cent to 3.55 billion euros, while net income dropped to 450.7 million euros from 627.8 million euros a year earlier. Its operating margin was down from 31.9 per cent to 26.9 per cent, largely due to store openings.

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