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  • Tous Les Jours China expands

    Tous Les Jours China expands

    Korea’s CJ Foodville has opened its first Tous Les Jours store in the Xinjiang Uyghur Autonomous Region of China.

    CJ Foodville now has Tous Les Jours stores in 14 regions of China and more business region-based contracts than any other Korean bakery franchise company in the world’s most populous nation. It says it is committed to opening more than 1000 stores in China by 2020.

    Tous les Jours China inside 315

    The new bakery is located on the first floor of a landmark department store in Xinjiang’s capital city of Ürümqi, and saw more than 1000 customers on its opening day.

    CJ Foodville established a master franchise contract with a local restaurant operating company last October.

    One of the best-selling baked goods at the store is a Halal sandwich, which accounts for more than 20 per cent of overall sales, reflecting the unique demographic of Xinjiang Uyghur.

    The company has 172 overseas stores in seven countries including the US and Vietnam.

  • Kim Soo-Hyun: Caffe Bene’s new face

    Kim Soo-Hyun: Caffe Bene’s new face

    Korean-based coffee shop franchise Caffe Bene has named famous Korean actor Kim Soo-Hyun as its global face for the next year.

    Korean film and television drama has massive following throughout China and southeast Asia making Kim Soo-Hyun a recognised personality throughout the region.

    Caffe Bene will use the actor’s image in TV commercials, print advertisements and online, promoting its brand in 13 countries, with particular focus on Taiwan and China.

    Caffe Bene is the largest coffee franchise in Korea, based on store numbers, and now has 1500 cafes in Korea, China, Taiwan, Vietnam, the US, the Philippines, Indonesia, Saudi Arabia, Mongolia, Malaysia, Cambodia, Singapore and Japan.

    Kim Soo-Hyun has been chosen for his pan-Asian popularity, which will help Caffe Bene to make inroads globally.

    The company said that Kim Soo-Hyun has risen to be a global star based on a very hard earned filmography, which can be related to Caffe Bene’s success on the global scene.

    According to Wikipedia, he is an actor, model and singer best known for his roles in the television dramas Dream High, Moon Embracing the Sun, and My Love from the Star, as well as the movies The Thieves and Secretly, Greatly.

  • New northeast Bangkok mall

    New northeast Bangkok mall

    Thailand’s The Mall Group has budgeted US$91 million to build a new shopping centre in Bangkok’s northeastern outskirts.

    A final decision on the new Bangkok mall will be made within weeks, and represents an additional capital commitment beyond the $2 billion investment in the Emporium, EmQuartier and EmSphere developments in Bangkok and new malls in Phuket, previously announced.

    The new mall would be built on land across the road from Fashion Island on Ram Intra Rd, a key Bangkok arterial route.

    CEO Paiboon Kanokwattanawan told the Bangkok Post newspaper that having a shopping mall in the Ram Intra area “will fulfil our goal to serve customers in all important areas of Bangkok”.

    The Bangkok focus is aimed at cashing in on the establishment of the AEC later this year, of which Bangkok will be the capital.

    Paiboon told the Bangkok Post his company will not be following rival Central Group’s strategy of establishing centres in border towns.

    “We never planned to open our retail projects in special economic zones or border towns because Bangkok will be the capital of the AEC. It’s not necessary for us to develop projects in other locations as Bangkok is bigger than we thought.”

    He said people travelling from AEC member countries like Vietnam or Laos to Malaysia or Myanmar had to transit in Bangkok and while there “they will go shopping”.

    According to a report from Colliers International (Thailand) some 30 new shopping centres are scheduled to open in Bangkok and its suburbs during 2015 and 2016, adding about 1.52 million sqm of retail space to the Thai capital.

  • Vietnam’s Vingroup announces new retail venture in electronics

    Vietnam’s Vingroup announces new retail venture in electronics

    A Vingroup official announced the establishment of the firm’s new technology and electronics retail brand on Wednesday called VinPro.

    A group representative said opening the chain was part of the group’s strategy to become a leading retail brand in Vietnam, adding that it will open four VinPro stores in Hanoi and HCM City on 21 March.

  • Tesco food chief exits

    Tesco food chief exits

    Tesco’s in-store restaurant and cafe concepts may be doomed after the man heading the division exited the company this week.

    Analysts are interpreting the departure of Michael Holmes, who headed the Tesco food division, as an admission the concepts had failed.

    Giraffe restaurants and Harris + Hoole cafe chains were opened in a number of larger Tesco supermarkets in the UK as part of former CEO Philip Clarke’s strategy to draw customers back to its stores. Holmes also oversaw Euphorium bakeries and Decks, an in-store restaurant created by Tesco.

    The grocer paid £50 million to buy Giraffe and took a strategic stake in Harris + Hoole. Harris + Hoole reportedly lost £13 million in the year to February 2014 and Giraffe is understood to have also been booking losses.

    Critics of the former Tesco CEO have long said the company should be focusing its investment on cutting prices and improving product quality, focusing on the core grocery business instead of such initiatives like in-store cafes and restaurants.

  • Seven & I in grocery pact

    Seven & I in grocery pact

    Japanese retail giant Seven & I Holdings is to partner with an Osaka supermarket chain in product development and supply chain initiatives.

    Its new partner, Mandai Co, has about 150 stores in Osaka and four other prefectures in Kansai and achieved ¥279.3 billion (US$2.2 billion) in sales in the year to February.

    While the initial partnership is a working relationship, the Japan Times reports Seven & I, which owns the 7-Eleven convenience store network and Ito-Yokado supermarket chain, may take an equity stake in Mandai.

    Commentators say the partnership will give Seven & I local product and sourcing knowledge, improving its Ito-Yokado offer in Kansai region. Especially beneficial will be food product development and know-how.

    Seven & I, will dominant in Japan’s retail industry, wants to improve the localisation of its offer, reflecting regional characteristics in its food range in particular.

    For Mandai, the partnership could have benefits in its buying power with suppliers and reduce product development costs.

  • Sony US exits direct retail

    Sony US exits direct retail

    Sony US is to close down its direct retail business, closing the 10 remaining stores this year.

    The decision follows the failure of a new Sony store concept which superseded its Sony Style format about four years ago. It has run its own retail stores for more than a decade in the US, but never achieved the sales or awareness of Apple which set a global standard in electronics retailing.

    Instead, the Japanese electronics giant will focus on partnering with specialist retail chains to boost sales in the US market, where it has struggled to achieve profitability for years, against tough competition from Korean and Chinese rivals.

    Sony Electronics, now renamed Sony North America and managing sales, marketing, distribution and customer service throughout the US, Canada and Puerto Rico, will maintain a brand-building flagship in New York and another showcase near its motion picture studio in California.

    Mike Fasulo, president of Sony North America, confirmed this week that 20 stores were closed last year and the remaining 10 will be closed as leases expire or are renegotiated.

    It would now focus on stores-within-multi-brand-stores like Best Buy, a strategy which has worked well for Samsung.

    Most of the Sony US stores were in shopping centres with high rents and were not selling sufficient volume to justify their continued trading.

    Mike Fasulo, president of Sony North America, said Sony US now has concessions in about 400 Best Buys across the US and aims to boost that to 500 this year in that and other chains.

  • Neteven to help Europeans sell on Tmal

    Neteven to help Europeans sell on Tmal

    Online marketplaces management solution provider Neteven has partnered with China’s Tmall Global to help European brands sell to Chinese consumers online.

    The partnership with Alibaba Group’s Tmall Global marketplace will allow European brands to launch their business across China’s vast consumer market.

    It opens the way for brands and retailers in fashion, home and garden, kids, accessories and many more categories to sell their products to the Chinese market and drive incremental revenues.

    Neteven says its has worked closely with Tmall Global in order to launch “a fully managed solution” which includes the technical integration of the Tmall Global marketplace within Neteven’s platform and the adapted services for brands.

    Launched in April 2008, Tmall provides a premium shopping experience for Chinese consumers seeking quality branded merchandise. Tmall Global allows international brands and retailers to sell on China’s largest third-party platform, with very few localisation constraints. For example, overseas companies without Chinese business licenses are eligible to apply to sell on Tmall Global. Orders can be fulfilled and shipped from outside of China, and customer payments are settled in the preferred origin currency such as US Dollars, Euros, etc.

    For the past 10 years, Neteven has collaborated with leading brands and marketplaces to provide its clients with a comprehensive offering. Thanks to the API integration of Tmall Global within Neteven’s software, European brands and retailers have now access to the most effective entry point for China e-commerce market.

    Greg Zemor, Neteven CEO, says more than half of Neteven’s clients are based outside of France.

    “All our European clients use our solution to trade locally, in Europe or in the US. The logical next step was to open their distribution to the largest and fastest growing e-commerce market in the world – China. Beyond technology, we needed to offer the market a good value proposition.”

    Shaoming Yang, head of Tmall Global Europe said Europe is a key strategic focus for Tmall Global. “Our aim is to help brands and retailers reach Chinese consumers that are eager for their products. To extend our reach we work with trusted and respected organisations such as Neteven to build an ecommerce ecosystem that works for both consumers and brands.”

     

  • KFC China moves into ‘premium’ coffee

    KFC China moves into ‘premium’ coffee

    t’s a hard concept to grasp: ‘quality coffee’ at a fried chicken chain.

    But KFC China is reportedly planning a serious move into the ‘premium’ coffee market, aiming to become a low cost alternative to Starbucks.

    Yum! Brands-owned KFC is the leading fast food player in China already and Starbucks has built a strong and loyal following in the market after 16 years there.

    According to a report on Bloomberg News, KFC China will start selling freshly ground hot coffee this year.

    The new coffee offer made its debut in several restaurants in December and the company is “very pleased with the results” according to CFO Pat Grismer, commending at an investors conference last week.

    So by the end of 2015, KFC China will add ‘premium’ coffee to 2500 outlets – 1000 more than the size of Starbucks’ network. It’s following in the footsteps of McDonald’s, which has McCafes at most of its 2000 Chinese outlets.

    “Trying to beat Starbucks on higher-quality coffee in China makes more sense than it might seem for KFC, which has a long-established breakfast menu featuring such local fare as congee,” Bloomberg observed.

    A premium coffee is priced at about 10 RMB (US$1.60) which is about half the price of a like cup at Starbucks.

    While it is not clear quite the range of coffee styles on offer, it is unlikely to be as broad as Starbucks, which is also gaining favour in Asia for its range of teas.

    “While Starbucks coffee is positioned as a more luxurious product, the entry of a large competitor such as KFC at a midrange price will certainly complicate those expansion plans in a country where tea is far more popular,” observed Bloomberg.

  • China retail sales ‘sluggish’

    China’s retail sector is continuing to expand faster than in any other major market in the world – but the growth rate continues to slow.

    The National Bureau of Statistics said on Wednesday that China retail sales grew 10.7 per cent year on year to 4.8 trillion yuan (US$779 billion) in the first two months of 2015.

    That’s a full 1.3 percentage points slower than the annual growth rate for 2014.

    According to the bureau, the restaurant and catering sector achieved an 11.2 per cent year-on-year sales rise in revenue and sales of ‘other consumer products’ increased by 10.7 per cent.

    Online retail sales soared 44.6 per cent year on year to 475.1 billion yuan.

    Analysts attributed the slowing growth rate to sluggish property sales (reducing demand for housewares and furniture, etc) and the ongoing government clampdown on corruption and gift-giving, as well as general economic malaise.

    The growth rate was lower than the 11.7 per cent consensus of analysts prior to the bureau’s announcement.

  • Profit surge for 7-Eleven Philippines

    Profit surge for 7-Eleven Philippines

    Philippine Seven Corp, which operates the 7-Eleven Philippines network, has reported a 27.9 per cent jump in income for 2014.

    Its income rose from P682.6 million in 2013 to P873.3 million (US$19.7 million) last year, according to a statement filed with the stock exchange today.

    The result was powered by an aggressive store network expansion program, with a net 273 new stores opened last calendar year – a 27 per cent increase – and higher operating margin.

    In 2015 PSC expects to add as many as 350 more, expanding its network to more than 1600. It will make its first foray into the southern province of Mindanao, in the cities of Cagayan de Oro and Davao.

    About two-thirds of the company’s stores are franchised.

    Network wide store sales rose 19.3 per cent from P17.2 billion to P20.6 billion

    “PSC has taken steps to protect and expand its leadership in light of increased competition, recognising that rewards for market share are especially strong in the convenience store sector,” said PSC president and CEO Jose Victor Paterno.

    “This involves not only an increased pace of expansion in areas contested by competition, but strategic entry into new territories. The latter may be unprofitable for the first few years due to the high fixed costs of logistics, but we believe will later be rewarded with strong first mover advantages.”

    Paterno said the long-term growth prospects for convenience store retailing in the nation are favourable.

    Philippine Seven Corporation operates the largest convenience store network in the country. It acquired the licence for 7-Eleven in the Philippines from Southland Corporation (now Seven Eleven Inc.) of Dallas, Texas in December 1982.

  • Le Saunda sales strengthen

    Le Saunda sales strengthen

    Listed Hong Kong shoe and handbag retailer Le Saunda says same store sales rose in the last quarter.

    In the final three months of Le Saunda’s financial year, which ended on February 28, the group achieved a 3.9 per cent same store sales growth in its self-owned retail business, and a 1.1 per cent rise overall.

    In the preceding quarter, same store sales rose 1.9 per cent.

    Le Saunda operates 904 stores in mainland China, Hong Kong and Macau, 24 fewer than at the same time last year. Of the total, 770 are self owned and 134 franchised, all of the latter in mainland China.

    Le Saunda Hong Kong 315In its half year report last year, Le Saunda said it expected the ratio of sales between mainland China and Hong Kong-Macau would continue to trend towards the mainland in coming quarters.

    In the first half, Hong Kong and Macau store sales slid 9.9 per cent to HK$95.7 million.

    The company has not yet released financial data for the full year.

  • Gap, H&M and Levi’s among the most ethical brands

    Gap, H&M and Levi’s among the most ethical brands

    Gap, H&M and Levi’s are the three fashion brands that have been named on the Ethisphere Institute’s ninth annual list of the World’s Most Ethical Companies. The New York-based research firm listed 132 groups and companies that it believes foster a culture of ethics and transparency at every level from 21 countries, representing over 50 industries.

    Gap is one of only fifteen to have been honoured every year since the list’s inception. It received qualifying scores across five categories including ethics and compliance; corporate citizenship and responsibility; culture of ethics, governance, and leadership; innovation; and reputation. French cosmetic giant L’Oreal, Brazil’s Natura Cosméticos and Japanese brand Shiseido are also honoured in the list at the Health and Beauty category. Marks & Spencer and US pet food retailer Petco Animal Supplies are featured in the list at the retail category.

  • Benetton takes heat over Rana Plaza fund

    Benetton takes heat over Rana Plaza fund

    The Clean Clothes Campaign says it has confirmed authorization of another round of compensation payments to victims of the Rana Plaza clothing factory collapse.

    Rana Plaza, in the Bangladesh town of Savar, was the scene of the 2013 disaster where 1129 workers were crushed to death in the collapse of sweatshops producing clothing for western fashion brands.

    The Rana Plaza Coordination Committee has this month approved compensation payments to 5000 claimants, who are dependents of the deceased and injured workers. This round of payment is sufficient to pay an additional 30 per cent of each award, making the total amount received by each eligible beneficiary only 70 per cent of the amount they are entitled to.

    The Clean Clothes Campaign has singled out Italian fashion house Benetton for failing to make a promised payment, inferring the company is largely responsible for the short payment.

    “Other companies such as Children’s Place, Inditex (Zara), Mango, Matalan, and Walmart have failed to contribute a significant and proportional amount.

    “With this payment the majority of the funds received into the fund will be distributed and the payment of the final 30 per cent of each compensation claim will only take place once more donations are made to the Rana Plaza Donors Trust Fund, which remains at a US $9 million shortfall,” the campaign said in a statement.

    In the past year, the fund, set up by the International Labour Organisation in January 2014, has received around US $21 million in donations from global brands, the Bangladeshi Prime Minister’s Fund, trade unions and civil society.

    Benetton released a statement at the end of February confirming its intention to donate to the fund, but since then Benetton has remained silent on the matter.

    “Benetton claims it is delaying to allow time for a consultant to advise it on a fair amount of payment, but refuses to disclose any information about who will carry out this work, the methodology with which they will determine the amount, or a date for when a donation will be announced,” said the campaign.

    “The Clean Clothes Campaign urges Benetton to make an immediate payment of at least $5 million to the Rana Plaza Donors Trust Fund – an amount believed to be proportional according to Benetton’s ability to pay, the size of its relationship with Bangladesh and its relationship with Rana Plaza.”

    The campaign says compensation payment amounts are calculated “in line with international standards”. Despite this, brands continue to be reluctant to make “meaningful payments” to ensure that the victims of the Rana Plaza collapse receive full and fair compensation.

    “Now that the next round of payments have been authorised, the fund urgently needs more donations. There will be no more money in the fund, which means that families will then be placed in a precarious situation of not knowing if they will ever receive the full compensation that they are entitled to”, said Sam Maher of the Clean Clothes Campaign.

    “Every single brand has the responsibility to ensure that the victims receive full and fair compensation. Until this is accomplished, brands should recognise that their responsibility to the victims has not been fulfilled.

    “The $9 million shortfall is totally unacceptable, and we need to see all stakeholders involved, particularly Benetton and other brands, step up and fulfill their responsibility”, said Maher.

    “In the immediate aftermath of the disaster, when the industry made all sorts of commitments to the victims of Rana Plaza, we never imagined that full and fair compensation would still be an issue almost two years later.  Any of the companies – Benetton, Walmart, Inditex, Mango – have the ability to fill the gap.  All earn hundreds of millions of dollars in profit each year; money earned on the backs of the workers like those who died in the Rana Plaza collapse.

    “Its time for these brands to stop playing politics with people’s lives, and fill the gap immediately.”

  • Revamp plan for Robinsons Singapore

    Revamp plan for Robinsons Singapore

    Store closures lie ahead as the parent of Robinsons Singapore and the local M&S franchise refocuses on its key flagships.

    Dubai-based Al-Futtaim Group will close several stores in the city state and revamp others.

    The Marks & Spencer store at Centrepoint will close on March 29 to allow resources to be focused on the Wheelock Place flagship.

    The John Little store at Marina Square will close on April 26 and the Tiong Bahru Plaza store will close in the last quarter of this year. The closures would allow the company to “focus manpower and resources on enhancing the Plaza Singapura and Jurong Point stores”.

    In a statement, Kesri Kapur, head of business in Asia, said the moves were intended as a response to the fast evolving retail scene.

    “This consolidation move is part of our group’s ongoing business strategy to ensure the long-term sustainability of our businesses.”

    A “major upgrade” will be undertaken of the Robinsons and Marks & Spencer stores at Raffles City and the Paragon store, the group said, with work commencing early next year.

    A Marks & Spencer’s food hall will be added to the Robinsons The Heeren store towards the end of this year.