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Tag: analysis

  • How Better Product Visuals Are Changing Furniture Retail in Asia

    How Better Product Visuals Are Changing Furniture Retail in Asia

    A customer in Jakarta sees a sofa on a marketplace at lunchtime, saves it, compares finishes on the brand’s website that evening, visits a showroom on the weekend to sit on it, then buys it online the following week from her phone on the commute home. Five touchpoints, two of them physical, three of them digital, spread across nine days. At every one of them, she was looking at images of the same sofa — and if those images did not agree with each other, some of her confidence leaked away at each step.

    This is the shape of furniture retail across much of Asia now, and it has quietly turned product visuals from a marketing expense into a piece of retail infrastructure.

    Furniture is hard to sell on a screen

    Most retail categories survive a weak product photo. Furniture does not. A customer buying a sofa is making a large, infrequent, difficult-to-return decision, and the questions they need answered are exactly the ones a single flattering image cannot address: How big is it, really, against a normal living room? What does the fabric actually feel like? Is that grey warm or cool? Does the modular version come apart the way I think it does? Will it fit up the stairwell of an apartment block?

    As furniture retailers expand across ecommerce, marketplaces, showrooms, and reseller networks, working with a 3d rendering company can help them create consistent product visuals before every item, finish, or room scene is physically photographed. The commercial logic is straightforward: the more of those questions the visuals answer, the fewer customers abandon the purchase out of uncertainty — and the fewer who buy, misjudge, and return, which in furniture is an expensive event for everyone.

    The showroom and the screen should tell one story

    The temptation is to treat each channel as its own project — the website team shoots one set of images, the marketplace team adapts another, the showroom runs whatever the catalogue provided, the resellers use whatever they can find. The result is a brand that looks slightly different everywhere a customer meets it.

    In an omnichannel journey, that inconsistency is felt directly, because customers now move between channels within a single purchase. The sofa on the marketplace should be visibly the same sofa, in the same finish, photographed to the same standard, as the one on the brand site and the one on the showroom screen. Retailers like IKEA have built their Asian growth partly on exactly this kind of coherence between localised store formats and a growing ecommerce presence — the channels reinforcing one another rather than competing.

    When the visuals align across touchpoints, each channel builds on the confidence the last one created. When they do not, each channel makes the customer start over.

    Large catalogs break under one-off production

    A furniture brand with forty products can photograph its way to a decent catalogue. A brand with six hundred SKUs — each in several finishes, some modular, some seasonal, some assorted differently for different markets across the region — cannot. At that scale, treating every image as an individual shoot guarantees inconsistency, because the shoots happen at different times, in different conditions, by different hands.

    For furniture brands managing large catalogs, finish variations, modular collections, and reseller assets, resources such as https://cgifurniture.com/service/3d-furniture-rendering-services/ show how one visualization workflow can support lifestyle renders, silo images, PDP content, animations, 360° views, configurators, and ecommerce listings. The structural advantage is that the visual standards are set once and applied to everything — a new finish does not require a new shoot, a new market’s assortment draws from the same library, and the catalogue stays coherent as it grows. For a regional retailer adding SKUs and markets simultaneously, that repeatability is the difference between a managed catalogue and a sprawling one.

    Consistency is a retail operations problem, not a design preference

    It is easy to file visual consistency under “branding” and leave it to the creative team. In omnichannel furniture retail, it belongs closer to operations.

    The places it breaks are operational places. A marketplace listing that looks cheaper than the brand’s own site, undercutting the premium the brand is trying to charge. A reseller portal full of outdated images showing a finish that was discontinued two seasons ago. Lifestyle scenes shot for one market that look wrong to customers in another. Each of these is a small leak in the brand’s pricing power and trust, and each is fixed not by better taste but by a system: approved assets, current and complete, supplied to every channel that represents the brand.

    Static photos answer only some of the questions

    Furniture customers ask questions that a flat image cannot answer, which is why the format mix matters as much as the consistency.

    White-background silo images do the clean catalogue work. Lifestyle renders place the piece in a room so customers can judge scale and atmosphere. Close-ups carry the material story — the weave, the grain, the stitch. A 360° view lets a customer inspect the back and sides the way they would in a showroom. AR previews answer the single most common furniture worry by placing the actual piece, at actual size, in the customer’s actual room. Configurators let modular and multi-finish products be explored without a hundred separate product pages. Each format exists because a customer somewhere had a question, and the right format is the one that answers the question that customer is actually holding.

    Visual readiness is launch readiness

    Furniture launches in retail run on a calendar — seasonal collections, regional rollouts, marketplace campaign windows. And the assets are often needed before the products physically exist in quantity: the marketplace listing, the reseller kit, the campaign creative, the showroom screen content, all due before the first container of stock has cleared.

    A launch is not ready if its visual assets are not ready, however complete the inventory. Retailers who can produce launch visuals from approved product data, in parallel with manufacturing rather than after it, hit their campaign dates and their reseller-onboarding deadlines. Those who wait for physical samples and photography slip — and a furniture launch that misses its season has missed a meaningful share of its year.

    A checklist before the catalog goes live

    Worth confirming across the team before product visuals publish: Are all priority SKUs visually covered, including the variants? Are the PDP images consistent in standard and treatment across the catalogue? Are material close-ups available for the products where finish drives the decision? Do the lifestyle scenes match the customer the brand is actually selling to in each market? Are the marketplace-specific formats prepared to each platform’s spec? Are the reseller kits current and using approved imagery? Are the launch assets ready ahead of the campaign date, not on it? And for complex modular or multi-finish products, are 360° or configurator assets needed to do them justice?

    A gap found on this list is a quick fix. The same gap found by a customer comparing your marketplace listing to your website is a lost sale.

    Furniture retailers across Asia are competing in an environment where the same customer will meet a product on a phone, a marketplace, a showroom floor, and a reseller’s page before deciding. Treating product visuals as a reusable asset system — consistent, complete, and ready ahead of need — is becoming part of how that competition is won. The retailers building these systems are not just producing nicer images. They are removing friction from a journey their customers are already taking.


  • Vietnam Gold Prices Tumble Despite Global Stability: A Detailed Analysis Amid US Interest Rate Speculations

    Vietnam Gold Prices Tumble Despite Global Stability: A Detailed Analysis Amid US Interest Rate Speculations

    On Tuesday morning, the price of gold in Vietnam dropped, even as global rates remained stable. A notable drop was seen in the gold bar from Saigon Jewelry Company, which decreased by 0.53%, making its current price VND148.2 million (US$5,628.34) per tael.

    Changes in Local and Global Gold Prices

    There was also a decrease in the price of gold rings, with rates falling by 0.34%, establishing a current price of VND145.9 million per tael of 37.5 grams, or 1.2 ounces. Despite such recent drops, there has been a significant increase in the price of gold in Vietnam throughout the year, with a surge of 76% observed so far.

    On a global scale, gold prices remained largely unchanged as investors anticipated the U.S. private payroll data expected to be released later this week. This data is critical in assessing the potential for an additional interest rate cut from the U.S. Federal Reserve this year.

    Stability in Spot Gold Prices

    Spot gold displayed minimal changes, maintaining a steady rate at $3,993.10 an ounce. Edward Meir, an analyst at Marex, suggests that gold is in the process of establishing a trading range, potentially in the high 3000s to the mid-4000s. This range is considered a consolidation following a significant move in prices.

    Despite a sharp increase of 53% this year, there has been an 8% decrease in the price of the metal from the record high that was observed on October 20th. Ole Hansen, the head of commodity strategy at Saxo Bank, commented on the current trend in gold prices. He noted, “Gold’s pause still looks like a breather, not a breakdown. Seasonal softness, temporary Chinese policy noise, and a firmer dollar explain the short-term retreat, but none change the longer-term narrative.”

    Questions & Answers

    What is the current price for Saigon Jewelry Company’s gold bar?
    The current price for Saigon Jewelry Company’s gold bar is VND148.2 million (US$5,628.34) per tael.

    By how much has the price of gold in Vietnam increased this year?
    The price of gold in Vietnam has seen a substantial increase of 76% this year.

    What factors are contributing to the current global gold price trend?
    Several factors, including seasonal softness, temporary Chinese policy noise, and a stronger dollar, are contributing to the short-term retreat in global gold prices. However, these do not influence the longer-term narrative.

  • Gold Reaches Three-Week Peak, Signaling a Potential Market Turnaround

    Gold Reaches Three-Week Peak, Signaling a Potential Market Turnaround

    Gold prices in Vietnam are experiencing a noticeable rebound, reaching their highest levels since April 24 on Saturday. This uptick reflects a lively market fueled by recent global events.

    Rising Prices in Vietnam

    The Saigon Jewelry Company reported a 0.25% increase in gold bars, now priced at VND 120.33 million (around US$4,614.76) per tael. Meanwhile, gold rings saw a slightly higher rise of 0.52%, reaching VND 116.8 million per tael. Since the start of the year, gold has surged by an impressive 43%.

    Global Influences

    On the international stage, gold prices soared on Friday as investors flocked to safe-haven assets in light of Israeli airstrikes on Iran, which rekindled fears of a broader Middle Eastern conflict, according to Reuters. Spot gold climbed 1.3% to $3,428.10 an ounce, drawing tantalizingly close to its record high of $3,500.05 from April. For the week, gold prices surged nearly 4%.

    The geopolitical uncertainty is palpable. “Israel knocking out Iranian targets is causing a little bit of geopolitical scare in the market,” noted Daniel Pavilonis, senior market strategist at RJO Futures. “Prices will stay elevated in anticipation of what is to come, the retaliation by Iran.”

    As the markets react to these developments, major financial institutions are optimistic about gold’s trajectory. Goldman Sachs has issued a bold prediction, stating that robust central bank buying could push gold prices up to $3,700 per ounce by the end of 2025 and even reach $4,000 by mid-2026. Bank of America also sees a potential path for gold to climb to $4,000 in the coming year, making it an exciting time for gold enthusiasts.

    Who knew that a geopolitical skirmish could send gold prices dancing like a pop star?

    Questions & Answers

    What factors are contributing to the rise in gold prices in Vietnam?
    The rise in gold prices is largely influenced by global events, including heightened geopolitical tensions following Israeli airstrikes on Iran, leading investors to seek safe-haven assets.

    How much has gold price risen in Vietnam since the beginning of the year?
    Gold prices in Vietnam have surged by an impressive 43% since the start of the year, reflecting a broader trend across global markets.

    What predictions do financial analysts have for gold prices in the next few years?
    Goldman Sachs forecasts that prices could reach $3,700 per ounce by the end of 2025 and $4,000 by mid-2026, while Bank of America believes prices could also rally to $4,000 within the next 12 months.

  • Gold Prices Fall: Exploring the Factors Behind the Decline

    Gold Prices Fall: Exploring the Factors Behind the Decline

    Vietnam’s gold market saw a dip on Saturday morning, reflecting a global trend sparked by the latest U.S. jobs data which revealed stronger-than-anticipated economic growth. This information rippled through financial markets, causing gold prices to plunge.

    Declining Prices in Vietnam

    At Saigon Jewelry Company, the price of gold decreased by 0.68%, settling at VND117.2 million (approximately US$4,498.35) per tael. Meanwhile, gold rings saw a decline of 0.70%, priced at VND113.6 million per tael. To put it in perspective, one tael weighs 37.5 grams or 1.2 ounces. Despite this recent downturn, gold has impressively increased by 39% this year.

    Global Trends Impact Local Prices

    The worldwide gold market experienced a more than 1% fall on Friday, a direct reaction to a stronger-than-expected U.S. jobs report. This report dampens the expectation for immediate interest rate cuts by the Federal Reserve. Nevertheless, silver shone brightly, soaring to its highest level since 2012, according to Reuters. Spot gold prices slid by 1.1%, now at $3,316.13 an ounce, but interestingly, showed a slight weekly increase of 0.8%.

    Gold is often viewed as a safeguard against inflation and geopolitical uncertainty. However, rising interest rates diminish the allure of bullion, especially since it does not provide any interest income.

    A report from the U.S. Labor Department revealed that non-farm payrolls increased by 139,000 in May, slightly outpacing economists’ expectations, which forecasted a rise of 130,000. The unemployment rate remained stable at 4.2%. According to Marex analyst Edward Meir, this data lost its bullishness for gold as it indicates that the Federal Reserve may hold firm on interest rates for the time being. Yet, Meir noted, “These are very difficult negotiations and they’re not going to be solved just on the phone. If the tariff headlines become negative, that’s bullish for gold.”

    What a wild ride the financial markets are on—who knew that jobs could have such an effect on precious metals!

    Questions & Answers

    What caused the decline in gold prices in Vietnam?
    The decline is attributed to a stronger-than-expected U.S. jobs report, which reduced expectations for immediate interest rate cuts by the Federal Reserve.

    How much has gold increased this year despite the recent drop?
    Gold prices have impressively risen by 39% so far this year.

    What might impact gold prices moving forward?
    Ongoing negotiations regarding tariffs and any negative headlines could potentially boost gold prices, as elevated uncertainty tends to draw investors towards safe-haven assets.

  • Gold Prices Slump to Lowest Level in Five Weeks: What’s Driving the Drop?

    Gold Prices Slump to Lowest Level in Five Weeks: What’s Driving the Drop?

    Gold jewelry displayed in a Hanoi shop shines less brightly this week, as the value of gold in Vietnam has dipped to its lowest point since April 21.

    On Thursday morning, the price of gold bars from Saigon Jewelry Company fell by 1.01%, bringing it down to VND 117.5 million (around US $4,514.20) per tael. Meanwhile, gold rings saw a decline of 0.87%, now sitting at VND 113.4 million per tael. To give you a sense of scale, a tael weighs about 37.5 grams, or 1.2 ounces. Despite this drop, gold has managed to climb 39.5% since the start of the year, a fact that may leave some investors scratching their heads amid recent fluctuations.

    Globally, the metal is facing pressure, having slipped to a one-week low following a U.S. federal court’s decision to block President Donald Trump’s “Liberation Day” tariffs. This unexpected ruling has diminished gold’s appeal as a safe-haven asset while a strengthening dollar adds further downward pressure. As per reports, spot gold has dipped by 0.7% to $3,268 an ounce, marking its lowest value since May 20.

    “This was obviously the most important news driver, and looking at the broad dollar, it rallied on that, pushing gold lower,” said Nicholas Frappell, global head of institutional markets at ABC Refinery. Yet, there remains a silver lining for the gold market; Frappell notes that the long-term outlook hints at a potential weakening of the dollar and persistent inflationary pressures in the near future.

    Could it be that in the world of gold, what glitters truly is not gold after all?

    Questions & Answers

    What was the recent price drop for gold jewelry in Vietnam?
    Gold bars dropped to VND 117.5 million, and gold rings fell to VND 113.4 million per tael.

    How much has gold increased this year?
    Gold prices have risen by 39.5% since the beginning of the year.

    What factors are impacting global gold prices?
    The recent decision to block “Liberation Day” tariffs and a robust dollar have dampened gold’s safe-haven appeal.

  • Gold Prices Dive in Vietnam: What’s Behind the Sudden Drop?

    Gold Prices Dive in Vietnam: What’s Behind the Sudden Drop?

    Gold prices in Vietnam took a notable plunge on Monday morning, mirroring a downward trend in global bullion markets as the United States and European Union reached an agreement on a deadline for a much-anticipated trade deal.

    Gold Prices on the Decline

    The Saigon Jewelry Company’s gold bars fell by 0.82%, bringing the price to VND120 million (approximately US$4,631.42) per tael. Meanwhile, gold rings saw a decrease of 0.86%, now priced at VND115 million per tael, with one tael equating to 37.5 grams or 1.2 ounces. Interestingly, despite this drop, gold prices have skyrocketed by 42.5% since the start of the year, keeping investors on their toes.

    Globally, gold prices softened on Monday after U.S. President Donald Trump set a July 9 deadline to finalize a trade agreement with the European Union, retracting his earlier stance of imposing a 50% tariff starting June 1. As reported by Reuters, spot gold dipped 0.3% to $3,346.59 an ounce, while U.S. gold futures experienced a 0.6% decline, settling at $3,345.70.

    Kyle Rodda, an analyst at Capital.com, commented on the market fluctuations, stating, “There is a kind of element of relief in the marketplace after the pause on tariffs on the EU, and we’re seeing gold weaken.”

    So, as the gold market takes a breather, investors wonder: will a shiny future be on the horizon, or are we just polishing the surface?

    Questions & Answers

    What caused the drop in gold prices in Vietnam?
    The decline in gold prices is attributed to global market shifts following the U.S.-EU trade deal, easing fears of impending tariffs.

    How much has gold surged since the start of the year?
    Gold prices have surged by an impressive 42.5% since January 2023.

    What are the current prices for gold bars and rings in Vietnam?
    As of Monday, the price for gold bars is VND120 million per tael, while gold rings are priced at VND115 million per tael.

  • Gold Soars to 11-Day High, Marking a Strong Comeback

    Gold Soars to 11-Day High, Marking a Strong Comeback

    A bustling jewelry store in Hanoi showcases the latest trends as the gold market experiences a dramatic resurgence. On Wednesday morning, Vietnam’s gold prices soared to the highest level since May 10, primarily driven by a global uptrend that saw prices hit a one-week peak.

    Local Gold Prices Experience Significant Upsurge

    The value of gold bars from the Saigon Jewelry Company surged by 1.42%, reaching VND121 million (approximately US$4,660.39) per tael, a standard measure equating to 37.5 grams or 1.2 ounces. Meanwhile, the price for gold rings rose 0.88%, settling at VND115 million per tael. Cumulatively, gold has skyrocketed nearly 44% this year, capturing the attention of both seasoned investors and casual buyers alike.

    Global Trends Influence Local Market Dynamics

    Globally, gold prices have experienced a positive shift, climbing to their highest point in over a week. This boost is largely attributed to a weakened dollar and investors seeking refuge amid ongoing fiscal uncertainties in the U.S., as Congress debates an expansive tax bill. On the spot market, gold rose 0.5% to $3,305.39 an ounce, reaching its peak level since May 12 earlier in the trading session.

    Gold has earned its reputation as a safe-haven investment during periods of political and economic tumult, thriving in low-interest environments. Tim Waterer, KCM Trade’s Chief Market Analyst, noted, “In the medium- to longer-term, gold is likely to see further gains, although any positive trade deal headlines could pose challenges for gold as it strives to reclaim the $3,500 mark.”

    The shimmering allure of gold continues to captivate investors, illustrating that in the dance of market dynamics, the right moves can lead to golden opportunities.

    Questions & Answers

    What drove the recent increase in Vietnam’s gold prices?
    The rise in Vietnam’s gold prices is largely influenced by global trends, particularly a weakening dollar and increased investor interest due to U.S. fiscal uncertainties.

    How much have gold prices increased this year?
    Gold prices in Vietnam have surged nearly 44% so far this year, showcasing strong demand and investor confidence.

    What market factors could impact the price of gold in the future?
    Factors like trade deal announcements and broader economic conditions will play a significant role in influencing gold prices, especially as the market reacts to changes in fiscal policy.

  • The Relevance Of Customer Sentiment Analysis In Business

    The Relevance Of Customer Sentiment Analysis In Business

    Perception often becomes a reality in the business world. Perception has a habit of spreading like a forest fire through word of mouth. Therefore, it becomes essential to ensure that the perception of the customers and even non-customers towards your business is good. It has a direct impact on the credibility and reputation of the business. Even though perception is important, the real question is how can a business analyse customers’ perception of a business? The answer lies in customer sentiment analysis. 

    Just like we know, if someone has uploaded a Sad Status on their WhatsApp Status, the user is sad. Customer sentiment analysis allows the business to analyse how the customers feel about the business. With the analysis, a business can find whether the customer feels positively or negatively about the brand. 

    The Importance Of Customer Sentiment Analysis

    Customers are king for a reason. Their happiness and satisfaction matter for the growth of a business and there is no doubt about it. Research has indicated that a customer who has experienced a positive feeling while purchasing will tell an average of nine people about the experience. On the other hand, a customer who had a negative experience with a brand will tell 16 people about it. 

    In addition, customers with a positive experience will stay loyal to the business for more than five years compared to those with a negative experience. Further, the cost to serve a customer reduces by 33% when the customer experiences a positive feeling. It is why it is important to keep customer sentiment in check. 

    Customer sentiment analysis also throws light on customer loyalty and the customer lifetime value, which is essential to growing the business. 

    How To Do Customer Sentiment Analysis?

    If you are running a huge business, it is manually not possible to engage in customer sentiment analysis. Thankfully, there are software and tools that can automatically detect the customers’ sentiments through Natural Language Processing. 

    With the help of Natural Language Processing, it is possible to detect whether the customer’s sentiment is positive, negative or neutral. 

    The Benefits Of Customer Sentiment Analysis 

    The ultimate aim of any process involved in a business is to increase the profit for business. The same truth goes for customer sentiment analysis too. Here are a few benefits of customer sentiment analysis. 

    1. Better customer service 

    After experiencing bad service, most of the customers complained about it. There is a high probability that they will stop associating with the brand after the negative experience. However, it can be taken care of through customer sentiment analysis. After identifying the customers who have had negative experiences, the businesses can go ahead and provide them with better customer service by solving their business. Through this method, you can eliminate the negative experience of the customer. 

    2. Brand reputation management 

    Brand monitoring is essential, especially on social media platforms where everyone can view the comments. Through customer sentiment analysis, it is possible to monitor the mentions that a brand receives and is associated with negative emotions. Quick action towards it can help the brand to maintain its reputation. 

    3. Provides room for improvement 

    Customer sentiment analysis on the features of the product or services that require improvement. A sudden rise of negative mentions indicates a sudden need to fix an issue. Further, it helps the business better understand the customer’s requirements. 

    4. Hyper-personalized experience for the customer 

    Customer sentiment analysis can also be used to segment customers of your business based on their emotions towards the brand. It allows businesses to create hyper-personalized experiences and allows them to bring more sales. 

    5. Improved marketing and sales plan 

    With a new launch in the market, through customer sentiment analysis, it is possible to check whether the customers are experiencing any issues or not. Further, the reaction of the target audience can be measured. It gives the necessary data to the business for making any adjustment in the marketing or sales plan for the good. 

    Customer sentiment analysis is invaluable for any company. Every customer interaction provides room for growth for the business. The valuable information it provides makes it possible to improve the business and maximise profit. It is always wise to analyse customer sentiments and keep the brand’s image positive. 

     

  • Malaysia property market to remain flat in 2019: Rahim & Co

    Malaysia property market to remain flat in 2019: Rahim & Co

    The property market is expected to remain flat this year before picking up again next year, said Rahim & Co International Sdn Bhd. Executive chairman Tan Sri Abdul Rahim Abdul Rahman said the property market will remain flat across all sectors this year, except for the warehousing sub-sector, which will be driven by growth of e-commerce.

    He said the overall market will take about 12 months to begin picking up, in line with the anticipated resolution of the trade war between the US and China.

    Rahim & Co director of research Sulaiman Akhmady Mohd Saheh said the residential market will take one to two years to improve due to affordability issues while the office market will remain slow for more than a year due to incoming supply.

    He said asking rents for offices have dropped 20% while effective rents have dropped 8-10%.

  • Ralph Lauren showing good progress

    Ralph Lauren showing good progress

    After a long run of fairly mediocre performance, Ralph Lauren has finally delivered a solid set of numbers. The 5 per cent net revenue growth announced last week is pleasing as are the various regional outcomes. These were supported by a respectable increase in underlying comparable sales. It would be remiss not to note that the good figures have been delivered off the back of a very weak prior year performance, but this should not take away from the fact that the brand is now headed in the right direction.

    Away from the top line, the bottom line has also strengthened with operating income up by 12.9 per cent over last year. Much of this is down to far lower rates of discounting, especially in the wholesale channel. We also see this as a sign that Ralph Lauren’s more disciplined and focused approach to producing collections is allowing more product to be sold through at a fuller price. All of this suggests that the company is doing a much better job at connecting with consumers.

    Our own data backs this up. Brand affinity to Ralph Lauren was the strongest in over five years this holiday season; brand recall and awareness were also higher, including among younger consumers. Some of this is the result of increased marketing spend but a lot of it also comes down to a more targeted approach. Initiatives like the launch of the Palace label have provided the brand with greater visibility among consumers looking for edgier, contemporary designs. There is clearly more work to be done, but this progress represents a good platform on which to build.

    That said, Ralph Lauren needs to remain disciplined; it should not revert to past form by launching rafts of sub-brands and spin-off labels which create confusion.

    Digital was the star channel this quarter with sales up by 20 per cent over the prior year. Some of this is a consequence of the investment in online platforms which are now much improved and delivering higher conversion. However, traffic to websites has also risen as Ralph Lauren has created more visibility around its products and brands. In North America, the slight downside is the imbalance in growth. Online comparable sales rose by 21 per cent, but store comparables were flat. While this is not necessarily surprising, it underlines that Ralph Lauren has more work to do in persuading customers to visit its shops – something that should, in theory, become easier as it pulls back from the wholesale channel.

    For all of this positivity, we are still cautious about the trajectory of the brand. While there is no doubt that Ralph Lauren is now in a much stronger position, a lot of work remains to be done on carefully defining the various parts of the offer and ensuring they remain targeted.

    Because of the vast array of brand elements, this is a challenging task that could easily falter – especially as the economy tightens and the company laps some tougher comparatives.

    Overall, however, Ralph Lauren is on the right track, it just needs to stay on course as it accelerates.

  • SEA e-commerce market to grow at 23 per cent

    SEA e-commerce market to grow at 23 per cent

    Southeast Asia’s online retail market is expected to reach US$53 billion in the next five years, according to a recent analysis by Forrester Consulting. The report anticipated a compound annual growth rate (CAGR) for the industry of 23 per cent over the period, given the momentum of smartphone penetration and fast-growing economies in the region. Currently the area’s largest online retail market is Indonesia – which took 41 per cent of Southeast Asian online sales last year – followed by the Philippines with its strong base of social media users.

    The report identified fashion as the main driver of growth in Southeast Asia’s online retail market, while consumer electronics retains the greatest market share at 24.2 per cent. Fashion and cosmetics brands launched online are likely to be a more regular marketplace feature in the near future.

  • Hong Kong faces ghosts of Asian financial crisis

    Hong Kong faces ghosts of Asian financial crisis

    Hong Kong, which for years rode a wave of cheap capital and China’s economic boom, is as vulnerable now as it was before the 1990s Asian financial crisis as those drivers reverse, according to analysis by Daiwa Capital Markets.

    In a bearish take on the financial hub, Daiwa forecasts “enormous stress” ahead as money heads out amid a global US dollar debt deleveraging, China’s economy slows and currency weakens, US interest rates increase, and domestic property prices slump.

    “If the Asian financial crisis was preceded by a classic credit and housing bubble, we see another one now of a bigger scale,” the Daiwa analysts led by Kevin Lai, chief economist for Asia excluding Japan, wrote in a note. “Money inflows have been unprecedented; we expect this money to leave eventually on the back of global dollar debt deleveraging.”

    Daiwa flagged six metrics to gauge Hong Kong’s strength:

    Net money inflows: Inflated in recent years by easy US monetary settings and bullish bets on China’s economy and currency.

    Total credit expansion: Estimated at about 320% of gross domestic product.

    China or regional credit exposure: With an estimated $750bn in loan and bond exposure to China.

    Real estate lending: With more lending exposure and a longer and quicker period of house price inflation this time around than in the late 1990s.

    The direction of US monetary policy as policymakers consider further tightening Hong Kong dollar’s valuation after an estimated 30% appreciation on a broad, real-effective rate over the past four years Of those, the first four are flashing danger, Daiwa says.

    “Measures of macro and financial vulnerability indicate things are no better now than they were just before the Asian financial crisis,” the brokerage said. It isn’t the first time that Lai has warned on Hong Kong. In recent months, the Daiwa economist has highlighted vulnerabilities as the Fed keeps open the option of further rate increases after hiking in December for the first time since 2006.

    Because Hong Kong’s currency is pegged to the dollar, the former British colony effectively imports US monetary policy. Rising US interest rates increase the cost of servicing loans taken out in Hong Kong.

    Hong Kong was hit hard by the Asian financial crisis that started in Thailand in 1997 and spread across the region, forcing the Hong Kong Monetary Authority to spend HK$120bn buying up Hong Kong stocks and to use its foreign-currency reserves to defend the dollar peg. House prices tumbled 70%.

    This time around, Daiwa assumes the HKMA would “defend the peg at all costs,” eroding the monetary base and setting the stage for debt-deflation. In contrast to orthodox thinking, Lai says Hong Kong’s “sizeable reserves” are actually an indication of weakness, and the fact that the currency is pegged prevents a natural currency mechanism.

    Hong Kong’s outlook has dimmed as exports fall and big-spending Chinese tourists stay away, prompting an increasing number of analysts to turn cautious on the $300bn economy because of its exposure to China’s slowdown. Moody’s Investors Service last month lowered Hong Kong’s long-term debt outlook. Retail sales in February plunged the most since 1999 as fewer Chinese tourists visited the city during the Lunar New Year holiday. Chinese visitors are projected to fall 3.2% for the year, according to the Hong Kong Tourism Board, with average spending dropping 4%.

    Lai’s forecast for gross domestic product to slip towards recession territory this year is an outlier. A median forecast of economists surveyed by Bloomberg tips growth of 1.7% this year and 2.1% in 2017.

    And after an initial slump at the start of the year, the Hang Sang Index has rallied, the city’s dollar has rebounded from the weak end of its trading range, and interbank borrowing costs have tumbled after spiking in January.

    But that calm may not last long. According to Daiwa’s analysis, the global deleveraging process “has probably started, or at least could be about to begin,” and the first “real test” for Hong Kong could come in the second half, with pressure set to build next year, according to Lai.

  • Myanmar retail sector ringing up sales

    Myanmar retail sector ringing up sales

    Rising incomes, an expanding economy and changing consumer patterns are attracting a growing number of international brands to Myanmar. By fuelling competition amongst existing players, their presence is expected to trigger an improvement in the range and quality of products and services on offer.

    International attention has been driven by bullish retail growth, which has expanded by an average rate of 7-15% per annum since 2011.

    Daw Win Win Tint, managing director of leading retailer City Mart Group and president of the Myanmar Retailers Association, told OBG international bands are attracted to Myanmar’s strong economic growth and increasing consumer purchasing power.

    “The average basket of goods continues to grow by around 10% per year mainly due to increasing spending power in urban cities, especially Yangon, where salaries have risen significantly,” she said.

    Fast moving

    Several international brands have made forays elsewhere the retail supply chain, making strategic greenfield investments in local processing. In the fast-moving consumer goods (FMCG) segment, Carlsberg and Heineken both opened brewing factories in Myanmar earlier this year through joint ventures with local partners, and Japan’s Kirin acquired a 55% stake in market leader Myanmar Beer for $560m in August.

    While modern retail currently accounts for just 10% of the FMCG segment, Daw Win Win Tint expects restrictions on foreign retail chains entering the Myanmar market to be lifted sometime in the future. As local purchasing power grows and Myanmar consumers have greater exposure to foreign brands via the internet and international travel, demand in the FMCG segment in particular is expected to rise.

    “There needs to be more awareness of the potential of the FMCG sector, as Myanmar has a population of approximately 51m and the prospects of becoming a manufacturing hub for South Asia,” she told OBG.

    Rising tide of consumerism

    Industry observers forecast a surge in consumer activity in the coming years, with the McKinsey Global Institute predicting in mid-2013 that Myanmar’s GDP would expand by more than four-fold by 2030, from around $45bn to $200bn. The group also predicted that rising incomes would fuel expansion of the country’s consumer class, jumping from 2.5m to 19m over the period, with consumer spending to triple to $100bn per year.

    As the country liberalises its retail market, the division of consumer spending between domestic and international retailers could see a shift. Local consumption habits continue to favour local products, though this is largely due to availability. In the beer segment for example, Myanmar Brewery accounts for more than 80% of sales.

    Though Myanmar consumers may welcome the entry of new brands and chains, such a transformation is likely to be a strain on current operators, who will have to contend with high-profile rivals with international experience and economies of scale. This will force local retailers to adapt to the changing market, which should bolster the portfolio products on offer and promote market efficiency.

    Consumer spending

    In addition to the prospect of greater competition, a decline in consumer confidence has the potential to cool sales in the shorter term. Though consumer sentiment in Myanmar remains among the most positive in the region, according to the most recent MasterCard survey, there has been a recent dip in the outlook of shoppers.

    Myanmar’s rating on the latest consumer confidence index, issued at the end of July, slipped from a regional high of 97.2 in mid-2014 to 81.6. Although still ahead of the South-east Asian average of 71 – second only to Vietnam – the 15.6-point drop was one of the sharpest recorded over the period. Although Myanmar’s position on the MasterCard index may have eased somewhat, any rating above 50 suggests that consumers remain optimistic.

    Weaker sentiment could be due in part to upcoming elections, scheduled for November, though increasing inflation is also likely to be a factor. According to the IMF, inflation reached 8% at the end of May. While low compared to an average of 23% between 2001 and 2010, this represents an increase from the 5% and 6.1% registered in FY 2011/12 and FY 2012/13, respectively.

    The ongoing depreciation of the kyat and crackdown on dollarisation could also be impacting consumer confidence, with the currency falling some 25% year-to-date against the US dollar in August. In addition to affecting the price of foreign goods, this downward movement has also increased the cost of local goods that rely on imported components.

     

  • Online to offline seen as a marriage of convenience

    Online to offline seen as a marriage of convenience

    The eating habits of urban Chinese have changed dramatically since the proliferation of takeaway food delivery apps brought restaurant-quality meals to almost everyone’s front door.

    Engineer Zhao Baijun, 29, now eats in more often than he eats out.

    “Before these apps, most restaurants did not offer deliveries. I had very few choices, mostly fast food chains,” he said.

    Besides the convenience for busy people like Zhang, online to offline means extra sales for traditional food suppliers and beyond. Connecting online to offline is the new Holy Grail for the biggest players in China’s Internet shopping explosion, whether they be domestic or overseas operators.

    Recently, China’s largest e-commerce company Alibaba and electronics retailer Suning agreed a multi-billion dollar deal on platforms, logistics and payments.

    Alibaba will pay about 28 billion yuan (US$4.5 billion) for 19.99 percent of Suning, becoming its second-largest shareholder, while Suning will buy no less than 28 million new shares in Alibaba for 14 billion yuan.

    Suning owns more than 1,600 stores and 3,000 aftersales service centers which will now be “seamlessly connected” with Alibaba’s online network. A Suning online sales center on Tmall.com, part of Alibaba’s retail operation, completes the new setup. The arrangement was described as a “wedding” by Alibaba chairman Jack Ma.

    “If we do not integrate with offline, we will not have a future,” he said. The deal is set to reshuffle China’s e-commerce deck and help Alibaba in its battle against archrival JD.com.

    E-commerce companies are queueing up to find stores to align themselves with.

    In its quest for existing networks of physical stores, JD.com announced it had taken a 10 percent stake in domestic supermarket chain Yonghui Superstores for 4.31 billion yuan.

    Early last year, Alibaba became the main shareholder of Hong Kong-listed department store operator Intime. In July, after the cap on the number of shares foreign firms can hold in Chinese e-commerce platforms was lifted, Walmart took a 100 percent stake in Yhd.com.

    The local advantages of Yhd.com combined with Walmart’s global procurement resources, retail stores and supply chain will be a huge fillip to Walmart’s campaign to win over China’s consumers.

    For Zhao, the most important aspect of the rapidly evolving industry is that he can have a decent meal in the comfort of his own home.

  • How to achieve the ‘perfect store’ visit every time

    How to achieve the ‘perfect store’ visit every time

    Many consumer goods companies are seeking out the perfect store.

    Those setting themselves up for success are defining the strategic vision for the perfect store at the senior leadership level – defining what it means for the organisation.

    No matter how well you define your vision of the perfect store, you will not realise the worth to the business without flawless execution – from senior management at head office down to the individual reps in store.  You must avoid common pitfalls like misalignment of internal departments and team goals, failure to clarify sales team member roles and who takes responsibility for which tasks.

    Here are some key considerations to help deliver the perfect store visits for your organisation:

    1. Invest in the right processes, tools and technology.

    Make sure you have invested in a technology solution that can generate a continuous flow of real-time, store specific data and close the loop between your head office and your field teams. Make the most of today’s mobile devices and give your reps access to the most up to date insights while out in the field.

    1. Communicate the perfect store vision to your field teams.

    Reps must know what they are aiming for in store and what they will be measured against (KPI’s). Provide specific plans, task lists and objectives by store for merchandising activities as well as getting the perfect order. Motivate and compensate your reps for achieving perfect store status.

    1. Engage and consult the retailer.

    Allow your reps to take a consultative, data driven approach with retailers improving operational efficiency and fostering meaningful relationships with store managers and owners. Part of this means providing reps with the right mobile tools and devices. A visual, fact based pitch will more likely win over a busy store manager resulting in an in store sale or promotion and display activity.

    1. Take measures to improve productivity.

    A more productive field force will unlock opportunities to focus on value adding activities in store and getting to more stores. By reducing driving time, administration and data processing time with route optimisation and better systems and technology in the field your reps can deliver additional results above the productivity gains themselves.

    1. Measure, improve and repeat.

    Implement ongoing checks and balances to evaluate and measure activity. Adjust KPI’s accordingly, make better business decisions, and target high yield territories and stores. And always look to course correct if necessary with visibility generated by a closed loop system.

    Perfect Store visits executed correctly offer more productive field teams, visibility into lost sales opportunities such as OOS & promotional non compliance, and the ability to identify new opportunities with the store manager, take orders and sell more in the store.

    Bring your company’s “perfect store” to life – invest in today’s latest technology and tools, communicate, motivate and compensate your field teams and actively consult to store managers by sharing store specific data. This will result in increased sales – a win for you, your sales teams, the retailer and your end consumer.