Tag: asia

  • Dufry blossoms in Asia market

    Dufry blossoms in Asia market

    Asia “continued to boom” for travel retailer Dufry in the first half of this year.

    Bali, Cambodia, Indonesia, Macau and South Korea all achieved double-digit sales growth during the half year, with Chinese tourists credited for much of that growth. Australia also achieved “strong double-digit performance” after the full renovation of Dufry’s stores there.

    “Eastern Europe, Middle East, Asia and Australia continued to outperform, driven by a growing number of Chinese passengers,” the company said in an earnings statement. Organic growth across Eastern Europe, Middle East, Asia and Australia rose 22.1 per cent.

    Globally, the Swiss company’s turnover grew by 7.2 per cent to CHF 4.097 billion (US$4.112 billion). Earnings before interest and tax grew 38.4 per cent to CHF 124.6 million.

    Dufry says its organic sales growth rose by 5.5 per cent thanks to an expansion and refurbishment program across the group.

    In the first half of this year, it expanded and opened 13,200sqm of gross retail space, which included new operations aboard 12 cruise ships, totalling 3500sqm across 38 stores. A further 22,400sqm of refurbishments are planned during the second half year, including the implementation of its new generation store concept at Heathrow Airport’s T3.

  • The RealReal store showcases newest O2O innovation

    The RealReal store showcases newest O2O innovation

    Luxury consignment retailer The RealReal has opened a brick-and-mortar concept store on the US West Coast.

    The 12,000sqft Los Angeles store encompasses The RealReal’s entire brand offering, from one-of-a-kind luxury goods through to accepting consignment through to face-to-face consultations with its luxury experts. It includes a separate 5500sqft men’s department featuring a “sneakerdome”, watch bar and tailoring area, as well as a 1500sqft “handbag vault”.

    The concept store has installed a proprietary technology solution called RealReal 360, which provides a unified view of all inventory and customer behaviour across channels – brick-and-mortar, desktop, mobile, e-commerce centers, and luxury consignment offices.

    RealReal CEO and Founder Julie Wainwright said, “With the continued success of our SoHo flagship and pop-up shops, we’re excited to expand our brick-and-mortar footprint and give The RealReal another permanent home – on the West Coast. We’re excited to give shoppers and consignors in LA and surrounding areas access to our omnichannel business, unique brick-and-mortar experience and services, and team of experts.”

    The store offers free valuations, seamless consignment drop-offs, personal styling services, expert workshops, item repairs, alterations, and authentication of all luxury goods.

    View the gallery below (4 images) :

  • Tse Sui Luen makes big mainland expansion plan

    Tse Sui Luen makes big mainland expansion plan

    Hong Kong Jeweller Tse Sui Luen (TSL) has moved to target the Chinese middle class, according to a report.

    TSL has announced plans to open 100 outlets in the Chinese mainland within two years, taking its total number of stores to 487.

    The firm’s deputy chairman and chief strategy officer Estella Ng Yi-kum commented that “Even though the yuan is on a downward trend, we have strategies to adjust pricing and use product designs to fit the appetite of our customers to boost sales.”

    She said that China will be “the growth engine for TSL for the coming 20 years,” attributing this to the rise of the Chinese middle class, which is expected to flourish under changes planned for China’s tax code.

    Ng did admit to concerns about the weakening of the RMB making TSL products more expensive for Chinese shoppers in Hong Kong and devaluing TSL’s assets in China comparative to the US Dollar-pegged HKD. The firm will address these issues strategically by potentially raising prices in China and focusing on smaller, more profitable diamonds.

    “We use design to make a 0.3 carat diamond look like half a carat,” Ng said. “So we can have a good margin and attract customers.”

  • PepsiCo India’s Indra Nooyi to step down as CEO in October

    PepsiCo India’s Indra Nooyi to step down as CEO in October

    Indian American business executive Indra K. Nooyi will step down as the Chief Executive of food and beverage major PepsiCo Inc in October, the company said on Monday.

    According to the US-based multinational, Nooyi, 62, will step down on October 3 after 24 years with the company, the last 12 as the CEO. However, Nooyi will remain the Chairman of the company until early 2019, Pepsico said.

    She will be succeeded by Ramon Laguarta, 54, as the Chief Executive Officer.

    “Growing up in India, I never imagined I’d have the opportunity to lead such an extraordinary company,” Nooyi was quoted as saying in a company statement.

    “Guided by our philosophy of ‘Performance with Purpose’ – delivering sustained performance while making more nutritious products, limiting our environmental footprint and lifting up all the communities we serve, we’ve made a more meaningful impact in people’s lives than I ever dreamed possible.

    “PepsiCo today is in a strong position for continued growth with its brightest days still ahead.”

    While Nooyi departs, the rest of PepsiCo’s senior leadership team will remain unchanged.

    Speaking on behalf of PepsiCo’s Board of Directors, presiding Director Ian Cook said: “As Chairman and CEO, Indra has provided outstanding leadership over the past 12 years, serving as a model both within our industry and beyond for responsible corporate stewardship in the 21st century.

    “As CEO, she grew revenue more than 80 percent, outperforming our peers and adding a new billion-dollar brand almost every other year. And shareholders have benefited: US $1,000 invested in PepsiCo in 2006 is worth more than two-and-a-half times that amount today.”

    Cook pointed out that under her leadership the company invested “for the future, leading the way on corporate sustainability and responsibility, and embedding a sense of purpose in everything the company does.

    “As one of the first Fortune 100 CEOs to embed sustainability targets into business operations, Indra was a pioneer, paving the way for a new generation of business leaders who seek to ‘do well by doing good’.

    “Under her leadership, PepsiCo grew its portfolio of ‘Good for You and Better for You’ options from about 38 percent of revenue in 2006 to roughly 50 percent in 2017, almost tripled its investments in research and development to expand its more nutritious offerings and minimize its environmental impact, and achieved global recognition for the company’s work in communities around the world.”

  • Moncler sales up on China, Japan

    Moncler sales up on China, Japan

    Luxury down jacket brand Moncler reported strong double-digit sales growth in the first half of 2018, on the back of solid revenue gains in China and Japan.

    The Milan, Italy-based brand said consolidated revenues reached 493.5 million euros for the six months ended June 30, an increase of 27% (at constant exchange rates), compared to 2017.

    In outlining the results, Moncler’s CEO, Remi Ruffini, hailed “major growth across all distribution channels—retail, wholesale and digital—and across all markets.”

    The group’s retail distribution channel increased to 376.8 million euros, up 33%, while comparable sales jumped 27%. Wholesale saw a 12% uptick.

    For the six months, net income climbed 47% to 61.6 million euros for a margin of 12.5%, while operating profit increased 35% to 85.7 million euros.

    In Italy, revenues rose 9%, mainly driven by the strong growth of the retail channel, while in Asia and ROTW, revenues leaped 42, helped by Japan, which significantly accelerated in the second quarter, thanks to the launch of ‘7 Moncler Fragment Hiroshi Fujiwara’.

    Moncler said it continued to register “very good performances” in China, which saw double-digit organic growth, following the Chinese government decision to reduce import duties.

    From the beginning of July, Moncler reduced its prices in China by 3.5% on average, it added.

    Revenues in Korea recorded a solid increase, with a sales acceleration in the second quarter, “mainly due to the organic growth of the existing stores’ network.”

    In the EMEA marker, Moncler’s revenues grew 17%, while the Americas grew 29%, said the company.

    Moncler currently operates 209 retail directly operated stores globally, with 65 shop-in-shops.

    It operates some 84 points-of-sales in Asia alone.

  • Yum China sales performs growth from expansion

    Yum China sales performs growth from expansion

    Yum China sales rose 12 per cent in the quarter to June 30, boosted by more stores and currency gains.

    But same-store sales declined across both of its brands and margins contracted.

    The company reported total sales of US$2.1 billion which on a currency-neutral basis was 5 per cent better than for the same quarter last year. KFC sales rose 5 per cent, partially offset by a 1 per cent decline by Pizza Hut.

    However, same-store sales declined 1 per cent year-on-year, with flat same-store sales at KFC and a 4 per cent decrease at Pizza Hut.

    During the period, Yum China opened 164 stores, taking its network to 8198 across more than 1200 cities.

    Operating profit rose 13 per cent to $193 million (or by 5 per cent excluding foreign exchange effects).

    Joey Wat, CEO at Yum China, said the growth was driven by “solid business fundamentals and accelerated new store development”.

    “We are on track to add 600-650 new stores, led by KFC, by the end of the year. This strategy will set us up for long-term growth in both profitability and market share,” she said.

    While Pizza Hut continued to face challenges in China’s competitive casual dining space, Yum China added new talent to its team and is working on repositioning the brand with its target customers.

    “We remain dedicated to revitalising the brand and strongly believe that our initiatives including delivering more innovative products and introducing new store formats will restore the brand to the level of consistent growth that our shareholders expect,” said Wat.

    Jacky Lo, CFO at Yum China, said the company stepped up food investment and promotional activities during the quarter, which inevitably had some impact on its margins.

    “This reflects our strategic decision to invest in our brands for long-term market share gain.”

  • Faure Le Page ready to debut in Seoul

    Faure Le Page ready to debut in Seoul

    The Parisian luxury accessories retailer Faure Le Page will open its first store in South Korea next month.

    The Faure Le Page store will be the fashion house’s eighth brick-and-mortar store globally when it opens at Hanwha’s Galleria Department Store in Seoul.

    The French company, which specialises in leather bags and other leather goods, dates back to 1717 and already has Asian stores in Japan and Taiwan.

    “Seoul, one of the most dynamic cities in the world, will open a new chapter for our brand,” said Faure Le Page’s creative director Augustin de Buffevent.

    “After comparing other competitive fashion companies, we decided to partner with Hanwha Galleria [due to] their best department stores for luxury goods.”

  • Indonesia VP Says Stronger Measures Needed to Keep Export Earnings in Indonesia for Longer

    Indonesia VP Says Stronger Measures Needed to Keep Export Earnings in Indonesia for Longer

    Vice President Jusuf Kalla said Indonesia must impose stricter measures to ensure that dollars earned from exports remain in the country for longer, amid the continuous depreciation of the rupiah, which has been among the worst performers in Asia this year.

    The currency has weakened by 6.21 percent against the dollar so far this year, amid a global sell-off of emerging-market assets, triggered by higher US interest rates and a stronger greenback. A weaker rupiah has many negative effects on the nation’s economy, as it increases the cost of imports, while raising the interest burden on public- and private-sector foreign debt.

    In a discussion in Jakarta on Thursday (02/08), Kalla criticized Indonesia’s existing free-floating foreign-exchange regime, which has made the country highly dependent on capital inflows, particularly in the short run. He highlighted the fact that under current laws, regulators are powerless to force exporters to keep their earnings onshore for longer.

    “There needs to be stronger measures so that foreign-exchange earnings from exports can stay [in the country],” he said, adding that Indonesia adopted very loose foreign-exchange controls, especially in the aftermath of the 1998 Asian financial crisis.

    The vice president cited as an example Thailand, which has implemented a strict foreign-exchange regime that requires export proceeds to stay in the country’s financial system for at least six months. He believes such a policy could help boost Indonesia’s supply of foreign exchange.

    However, Bank Indonesia Governor Perry Warjiyo made it clear last month that the central bank has no intention to impose tougher regulations that would force exporters to keep their dollars in the country for longer. Under current laws, the monetary authority is independent from the executive.

    The central bank has been using a mix of policies aimed at tightening its monetary policy. This includes raising its benchmark policy rate three times since mid-May to 5.25 percent and introducing new a benchmark interest rate in the country’s overnight interbank money market to boost the reliability of reference rates.

    Biodiesel

    Indonesia has been susceptible to capital outflows as it is one of a few emerging markets in Asia that run current-account deficits. The country’s financial markets are also still very shallow and lack product diversity, while on the other hand, the government runs a budget deficit, which adds to a greater reliance on foreign funds to help stimulate the economy.

    The government has taken various measures within its jurisdiction to reduce the current-account deficit, including a policy that will make the use of biodiesel-blended fuels mandatory for vehicles and heavy machinery from Sept. 1. This program is expected could save billions of dollars in diesel imports.

    Kalla also highlighted the government’s efforts to improve exports and reduce imports. He said the palm oil industry received particularly close scrutiny because it is the country’s greatest source of foreign exchange.

    The European Parliament agreed in June to extend its deadline on phasing out the use of palm oil as biodiesel in the bloc to 2030 from 2021. This means biofuels from Indonesia, the world’s largest palm oil producer, will still enter the European market for the next 12 years, instead of three years as was the case under the previous deadline.

    “We were forced to threaten European countries by saying we would stop buying Airbus. After that, their ambassadors came to clarify, so their policy to stop the use of palm oil is delayed until 2030,” Kalla said.

    Lion Air, Indonesia’s largest low-cost carrier, ordered 234 aircraft worth $23.8 billion from France-based Airbus in 2013 – the biggest order in the aircraft producer’s history.

  • Vans released collection featuring Van Gogh Museum

    Vans released collection featuring Van Gogh Museum

    Skateboarding fashion retailer Vans has partnered with Van Gogh Museum to launch a new range inspired by Vincent van Gogh’s artworks.

    Vans’ shoes will feature custom footbed art bearing van Gogh brushstrokes and the Amsterdam museum’s logo, as well as a tag with historical facts about the works featured.

    Other works by the artist will feature on a bomber jacket, a backpack and a hoodie, as well as various T-shirts and baseball caps.

    The Vans x Van Gogh Museum collection goes on sale today, August 3, at the museum, online and at select retailers.

    Partial profits will be used in the preservation of van Gogh’s legacy and art collection.

  • Millennial parents, the new force in luxury spending

    Millennial parents, the new force in luxury spending

    The development of China in the last decade is most easily visible through big numbers. But stats such as ‘Chinese travelling overseas increased by 1,380% from 2000 to 2017‘ do not help to understand the intricate changes in society that have taken place. One of these enormous (seismic, tectonic, however far you want to go) changes is in the new parenting culture of China’s affluent Millennial generation.

    The more traditional aspects of Chinese parenting culture are clear: a one-child policy, parents who feel the need to pressure their child into intensive study, Einstein-level maths, weekend classes and the like, with Grandparents and extended family all colluding into the alleged Little Emperor culture.

    The new lifestyle, opinions and expectations of China’s Millennials, and their influence as the drivers of luxury consumption, should now be well accepted by anyone who reads about global luxury. But now these Millennials are also parents – China’s new generation of modern parents, living in globalised cities and travelling internationally at will.

    Turn back just 5-6 years ago and it was not uncommon to come across hotels in Shanghai that labelled themselves ‘business hotels’, not interested in the ‘family’ sector. Only a few specialised shopping malls had sections for kids’ play areas and the like. In 2018, practically every single 5-star hotel offers children’s amenities, menus and activities, while countless shopping malls and other businesses now compete for family visitors with global names like Peppa Pig and Dora the Explorer tagging along.

    In luxury, brands are eager to capture the new Chinese family – ‘Baby Dior’ campaigns strongly, China has the most Burberry kids’ stores in the world, and ‘Fendi Kids’ opened in Shanghai’s Plaza 66 in 2017. Millennial parents not only demand but expect special organic food, imported children’s furniture, with ‘baby MBAs’ and ‘Olympic maths’ yet more angles on the drive of furthering their mini-me’s lifestyle.

    How is this new demographic of the affluent, modern Chinese parent evolving, and what must luxury brands know in order to connect with them?

    China is approaching a boom of Millennial mamas – or in their own words, “Spicy Mums (辣妈),” AKA ‘hot mamas’. They are the new generation of post-90 mums that maintain an image of both hot and cool.

    To understand this new demographic of the affluent, modern Chinese parent, luxury brands should be aware of the size of this social shift. Imagine the difference in parenting in the West, between those born in the 1930s or the 1960s. We’re talking about the first generation of parents that are asking new questions about parenthood, rather than simply accepting what was done before.

    Post-90 Spicy Mamas think, shop, and raise kids very differently than previous generations. A 2018 report on Chinese Millennial moms’ shopping behavior from CBN Data and a 2016 Maternal Marketing Whitepaper both share similar insights on this new demographic:

    They feel entitled to self-care and self-love. They see investment in premium brands as a necessity for themselves and their kids.
    They turn to other Millennial moms, rather than their own parents, for parenting advice.
    They are less sensitive about price, more concerned about product safety and quality.
    They love to shop for high-quality kids products via cross-border e-commerce.
    The Competition: Parenting to Win

    As the clearest indication of the thoughts of this demographic, one simple comment from a mother went viral on WeChat last year:

    “A Monthly Salary of 30,000 RMB (US$4,493) is Not Enough for My Child’s Summer Vacation”. Written by a highly-paid executive mom, it told the story of how she could hardly keep up with the extravagant overseas summer programmes that she lined up for her daughter. The mother explained that the total cost of her daughter’s education for the summer is 35,000 yuan (roughly US$5,240 USD), including 20,000 yuan (US$3,000) for a 10-day US study tour and other tutoring classes that cost up to 10,000 yuan (US$1,500) – and that she was compelled to do this as all of her peers were doing the same.

    With the country’s digital boom, new Chinese parenthood is also digitally integrated. Spicy mums form their communities mostly through dedicated apps and WeChat groups.

    Babytree, an online community with over 20 million Millennial parents, is among the most active sites. QinBaobao (“kiss baby” in Chinese), is a popular app for these parents to exchange parenting ideas, and post photos of their babies without the social pressures of mixing life or work contacts in WeChat. In these e-parenting communities, Haitao, meaning cross-border e-commerce, is frequently brought up: How to source safer, better products than the domestic options in China is a primary concern for such parents.

    KOL Parents Hit Key Cultural Pointers

    The demographics’ economic capacity to spoil their kids, combined with a lack of generationally consistent parenting knowledge, have given rise to a wave of parenting KOLs across social media. Among them, “ZhouYueyue” (粥悦悦) makes illustrations about a typical young mum’s experience, striking a chord with many. “NicoMama”, who shares more practical info graphics and healthy cooking tips, is deemed as a ‘mum authority’.

    There is plenty of space for niche content, too. “Nakikorose”, who brands herself as a “Maternity & Child Sleep Consultant”, seems to attract parents in a higher income bracket. Content perceived to be scientifically credible, or myth defying against the long-standing parenting superstitions in Chinese society is popular among post-90 spicy mums.

    Filial piety remains strong among all in China – at least, part of it. Millennial parents bring their own parents with them on holidays, family celebrations always involve gifts and blessings to their elders and they are still nonetheless keen to have willing babysitters! Yet they still consider that the instruction of the older generations may be based on ancient theorem – a mis-match with their otherwise international lifestyle and knowledge.

    The spending power of Spicy Mums is booming. From kids fashion, enrichment classes, to preschools that promises a “holistic” educational approach, there are a few main buying trends among China’s modern parents.

    1. Luxury kids wear – “mini-me”, but also “better-me”

    A quick view on social media can reveal that Spicy Mums love nothing more than dressing in similar outfits to their kids and posing alongside them for a selfie: ‘Aren’t I cute too?!’ Smart brands are wise to this.

    In May 2018, Dior posted pictures of child celebrity Heidi Cui in a Baby Dior dress in Cannes. Heidi first gained public attention from her role in the reality TV show “Where Are We Going, Dad?”

    This image combines youth with popularity and success – three traits which are catnip for Spicy Mums.

    Luxury kids wear is nothing new to the affluent Chinese market. D&G, Gucci, Baby Dior, Burberry, and French luxury line Bonpoint have been the capsule wardrobe for wealthy Chinese children. The practice of using celebrity kids’ street styles to raise brand awareness, however, is quite unique to the Chinese market. China’s kid fashion websites and magazines’s main content are celebrity kid styles, especially street style shot by paparazzi. What Suri Cruise, the Beckhams, and other celebrity kids are wearing in their day-to-day life, become the fashion bible for millennial Spicy Moms.

    The West has given a name to the demand for luxury kid wear – “the mini-me trend”. In these more mature markets, luxury kid wear consumption is led by the parents’ desire to channel their personality through their kids. A cool, well-dressed kid is a manifestation of the parents’ good taste.

    This trend is still in the embryonic phase, with affluent Chinese parents shopping for their kids by looking at leading western celebrities, dressing them in ways that they never could have achieved in their own youth. The trend is fertile branding ground and shows long-term opportunities.

    2. Experiences for both – ‘look what a good parent I am’

    Luxury kids fashion, imported organic food supplement – these are already the new normal for China’s millennial parents. Beyond the luxury purchase, they now seek experience, preferably with their own participation ready to be posted on their social media.

    Baby swimming is one example which is on trend. In the last few years, China’s first-tier cities have witnessed a boom in baby swimming clubs that charge over 10k RMB (1570 US Dollars) for an annual membership. The sport was first spotted on Chinese celebrities’ social media, and then publicised as the choice of all smart parents such as Mark Zuckerburg and actress Ziyi Zhang.

    Loong Swim Club, a market leader, rapidly expanded all over China, emphasizing its “German origin” to assure Chinese parents that it must be worth the fee. Loong has included a German flag in its logo header, and a EU distribution network in its homepage. Like other swim clubs, Loong uses social media to tell parents how baby swimming helps to develop kid’s social skills and increase their confidence level. For many young parents, these promised advantages are worth the hype.

    Recently, Four Seasons Hotel, Pudong, Shanghai and Hyatt On The Bund Shanghai have started to offer premium swimming classes for children in their pools – yet further indication of the changing expectations of their guests.

    All aspects of an affluent lifestyle should involve the child, including dining at 5 star hotels. The Peninsula Hotels in both Shanghai and Beijing are well aware of the family aspect as a draw. Last Christmas, The Peninsula Beijing offered experience such as baking cookies and decorating trees together. Along with the luxury elements such as Champagne for the parents and Christmas drinks for kids, the focus was on the creative, social activities done as a family, learning about a ‘western’ holiday and ripe in plentiful photo opportunites for the parents to share on their WeChats and Weibos.

    The ‘togetherness’ side also has an aspect of “I’m a big kid too” (aren’t we cute together?!):

    Would parents in the West want to buy Disney items for themselves? Perhaps somewhat unlikely. But Millennial Chinese parents are young-at-heart – proven by the ubiquitous ‘gamificiation’ now seen across many luxury brands. These parents want to be ‘part of the fun’ themselves. One recent example was Coach collaborating with Disney (Coach x Disney in trendy terms) in a ‘magic mirror’ on their WeChat accounts. The launch of their ‘A Dark Fairy Tale’ collection contained all of the current methods of interaction – short videos, the ability to interact with the AI ‘mirror’ and offline events related to the game – all targeted at adult buyers.

    3. “Holistic” pre-school

    “赢在起跑线上”, literally translates into “win at the starting line”, and well-summarises the prevalent parenting ethos in China. Even for the affluent, the ‘culture of scarcity’ feeling remains ever-present. With such a high population, the competitiveness and being sure of ‘not losing out’ is right at the pulse of cultural behaviours.

    While the need to ensure one’s children have the best education is recognisable in any demographic worldwide, the desire is distinct in China. While a wealthy family in, for example the UK, may feel confident that their child can go to the ‘right’ kindergarten and school, the urge to ensure that this is the case is the baseline of any affluent Chinese parent. The clothes, the lifestyle and more are desired, while the educational aspect of making sure their child keeps up with their peers is the very raison d’etre.

    And so, premium preschools with a “holistic” educational approach, promising to turn kids into smart, kind and confident individuals can set their own price.

    Willpower Royal British Education is one of many “holistic” preschools that cost well over RMB 200,000 ($30,000) per year in Beijing. The preschool has made a list of advantages to justify the cost: organic food with made-in-England silver cutlery, state-of-the-art facilities, bilingual education, and proper play time. The kindergarten also offers training courses such as horse riding and golf, hobbies that are traditionally associated with privilege.

    ‘International Schools’ are not available for Chinese passport-holders, but, the most affluent segment of Chinese parents may live abroad (or send their child to do so) for the number of years required to gain a foreign passport, before returning to study at an International School in China. Even for Chinese passport-holders, these International Schools have now created ‘bilingual’ schools, still in their name – for example Wellington or Dulwich having a separate school which can accept Chinese passport-holders, at the same RMB 200,000+ annual school fee.

    Such a “holistic” approach that combines study and play is considered a luxury in Chinese education. For millennial parents, the internationalism and social aspects are extremely attractive. They believe the craft courses, sport lessons, and social time with peers from similarly privileged backgrounds will give their kids an edge from early on.

    Little Star Group, which manages high-end kids wear brands such as I Pinco Pallino and YeeHoo in China, offers exactly such programs to Millennial families.

    The brand group has a special club space for its VIP members – Little Star Club. VIP families can join the specially designed activities in Bund 27, a prestigious address in Shanghai. Not only that, the club offers social training: classical music, horse riding, golf, and sailing courses. Every activity is described to enhance kids’ certain characters. Classical music is good for creativity, horse riding for chivalry, golf for calmness, and sailing for ambition.

    As a 28-year-old Spicy Mum told The Luxury Conversation, “If my kid grows up in this environment, his life vision and perspective will all be better.” With a British kindergarten degree, her 6-year-old boy has already secured a spot in a competitive elementary school in Beijing.

    China’s Spicy Mums are big spenders when they are convinced the value is there. Among the growing competition for this sector, the question is only whether they find your offer attractive or not.

    The Luxury Conversation Takeaways:

    Affluent mothers in China live by the word of WeChat groups. All keen to be in a WeChat group with their social peers, there is often one ‘leader’, who makes recommendations based on what celebrities are doing on Facebook and Instagram. As mentioned above, the ‘Spicy Mamas’ are keen to follow the trends set by celebrity parents and kids. Instagram is accessed by VPN in China and is well worth exploring in order to engage with these globally-versed mamas.

    Everything is education. Everything is betterment, upgrading … and basically showing off just how elite your kids (and therefore you) are. Create a reason/purpose for the luxury.

    Elite kids are ‘all access’. Dinner at a three-star Michelin restaurant? It’s a whole family affair with the family’s little Princess or Prince sampling the degustation and comparing it to others they have tried worldwide.

    The upgrading and the luxury should not be arbitrary – the ideal offering is to collaborate with a renowned education, institution, celebrity or other brand. Holding a cooking class in your hotel? Then give the little chefs a Cordon Bleu certificate afterwards. Promoting a healthy life? Then engage with one of China’s Olympic athletes for photo-opportunities. There should always be a famous badge, flag or face to attach to the activity as a mark of elite success achieved.

    For the ‘right’ investment in their child’s experience, there is no limit for affluent Chinese parents. No price is too great if it will deliver the truly elite, WeChat post-worthy moment for their child.

  • JD.Com Launches First Cashier-Free Store Overseas In Indonesia

    JD.Com Launches First Cashier-Free Store Overseas In Indonesia

    E-commerce giant JD has introduced its unmanned store technology in a foreign market for the first time.

    Jakarta’s new JD.ID X-Mart, a 270sqm AI-powered experience store located in Pik Avenue shopping mall, is the first of its kind in Indonesia and the largest to use JD’s unmanned store technology to date. Customers are encouraged to pick up whatever they want and walk straight out of the store without needing to wait for lines or payments.

    The technology premiered in Beijing last year and has since become increasingly sophisticated with the application of facial recognition and other advanced computer vision technologies.

    JD now operates more than 20 unmanned stores across China.

  • Asian stocks ‘unstable’, yuan struggles

    Asian stocks ‘unstable’, yuan struggles

    Asian markets were mixed today with early gains pared by continuing concerns about the brewing China-US trade war, while the yuan struggled to maintain momentum after the Chinese central bank moved to support the unit.

    Traders started the day on an upbeat note, tracking their New York and European counterparts following recent painful losses.

    The gains came as data on Friday showed that while the US economy saw a slowdown in jobs creation in July, the pace of hiring remained strong over the past three months.

    The report also showed wage growth remained tepid, helping ease worries about an overheating economy.

    The result provided some much-needed cheer to markets, which brushed off a warning from Beijing that it would impose new tariffs on US$60 billion (RM244.7 billion) worth of US goods if Washington pushes ahead with levies on US$200 billion of Chinese imports.

    However, while reports said unofficial talks have been held between Beijing and Washington, trade tensions continue to rise, with a top White House adviser calling China a bad bet and saying its economy – the world’s second biggest – was struggling.

    By the end of trade today Tokyo was 0.1% lower, reversing a morning rally, while Shanghai tumbled 1.3%. Seoul dipped 0.1%.

    Hong Kong closed up 0.5% but well off the gains of more than 1% seen soon after the open.

    Sydney added 0.6%, Singapore gained 0.8% and Taipei was 0.1% higher. Manila and Bangkok were flat while Jakarta jumped more than 1% despite an earthquake that rattled the island of Lombok and killed dozens of people.

    “Caution about further escalation in US-China trade frictions is still strong,” Yoshihiro Ito, chief strategist at Okasan Online Securities, said in a commentary.

    The yuan’s early gains petered out, having made small gains Friday after the People’s Bank of China (PBoC) unveiled measures making it harder to bet against the currency, which has suffered steep losses in the past two months.

    The unit, which is wallowing around lows not seen for more than a year, bounced back soon after the announcement. It extended the gains this morning before going into reverse.

    The bank’s measure was similar to a move when the currency went into freefall following a devaluation three years ago that rattled global markets.

    However, analysts were lukewarm on the move. Some said it indicated Chinese leaders were growing increasingly worried about the unit’s depreciation.

    “The yuan kept falling when China did this last time in 2015, so I don’t think the PBoC’s move will significantly change the market tone,” Hao Hong, chief strategist at Bocom International Holdings said.

    “No matter what happened over the weekend, the weakness in Chinese stocks may continue. The trade war is nowhere near its end and China’s economy is slowing down, so why would the trend reverse?”

    In other forex trading, the pound was fighting to recover from Friday’s sell-off after Bank of England boss Mark Carney warned that the chance of leaving the EU without a proper deal was “uncomfortably high” and “highly undesirable”.

    While he said such a situation was still unlikely compared with other outcomes, the comments come as leaders on both sides are struggling to reach a compromise with just months to go before Britain is due to formally exit.

    The remarks sent sterling tumbling, with an interest rate rise last week unable to provide any support.

  • The great differentiator in retail industry

    The great differentiator in retail industry

    The retail industry is competitive, it’s relentless and the success of brands and retailers depends on how firmly they deal with their competition. One way to stay ahead of the curve is the incorporation of technology in a brand’s operating model.

    Technology is changing the shape of the global retail industry as also the way many retailers and businesses operate. In retail, technology gives brands the platform to better satisfy their customers by helping them concentrate on consumer needs.

    According to a Walker study, customer experience will overtake price and product as the key brand differentiator by 2020 and 86 percent of consumers will pay more for a better experience. The challenge in serving the modern customer for most retailers, therefore, lies in bringing about the right balance between technology and humans.

    Retailers with the foresight to understand the potential of technology without getting lost in its complexities, and merging it with human interaction, have always been able to grow faster and bigger. Simply put, technology is beginning to play an increasingly important role in the management of complex retail operations all over the world. To stay ahead of the game, retailers are taking the help of different technologies to lead the way in changing two aspects: their points-of-sale and their points-of-supply.

    As retail markets continue to grow and become complex, it is becoming increasingly tough for businesses to keep a track on new developments and then to figure out how these developments can be combined into their operating models in order to come up with a winning proposition – both for themselves as well as their consumer. This is one of the many reasons that retailers need technology.

    Other important factors for retail brands to transform their IT capabilities include:
    – Increasing the company’s ability to respond to the evolving marketplace through enhanced speed and flexibility
    – Collecting and analysing customer data while enhancing differentiation
    – Working effectively; retailers need one system working across stores (or even across national borders) to make sure the most effective use of stock and improve business processes

    Technology in Retail

    High tech innovations help retailers stay competitive in key categories including consumer convenience, price, size and speed. High tech tools help in manufacturing products in bulk, ensuring fulfillment of consumer demands with greater speed and ease both at the warehouses/ stores and on the sales floor.

    Technology also balances inventory assortments, manages ordering and tracks pricing. Customer tracking tools increase customer satisfaction and promote loyalty by enhancing shoppers’ in-store experience.

    For example, in-store sensors and beacon technology can record behavioral and demographic data to a business’s cloud computing system, offering insight into the customers’ psyche. This data can then guide product, layout and display strategies. The data gathered systems can analyse customer browsing and buying patterns, which then be used to personalise in-store experiences for consumers. IoT beacons can also help customers quickly find items in a store and notify them of offers and discounts via their smartphones.

    On the executive level too, technology plays a positive role in strategy and decision making, saving time and adding convenience and profits to the business.

    Personalisation & CRM Through POS Systems: Thanks to modern technology, cloud-based POS systems aid business owners in the automation of daily tasks. These include payment and checkout like interactive signage, employee attendance, self-service applications like customer check-in. POS systems also help in the overall optimisation of processes like tracking inputs from different access points, implementation of a reservation system (in case of a restaurant) and developing a customer loyalty program.

    These smart register terminals provide reports, calculate discounts, offer coupons, capture and match tally of customer profile information with ease to avoid chaos at the billing counter. They use a signature capture technology for credit card transactions which retains receipts electronically.

    Use of POS technology has served towards making the payment process easier and contactless. RFID and NFC technology provide customers with the bonus of making a purchase using their smartphones and smartwatches.

    It is important for retail businesses to streamline these processes to develop a system which is informative and error-free.

    Inventory Management: According to stores.org, “Retailers will continue to explore ways to use IoT in the coming year for everything from keeping better tabs on their inventory to managing losses from theft and connecting with shoppers.

    With the help of technology, managers can track inventory in an organised manner through its purchase cycle and offer real-time information and updates about the product to consumers. Technology is also already helping in informing managers of the status of the store stock – whether it needs replenishing or not.

    Features like ‘Electronic Data Interchange (EDI)’ help in maintaining direct computer-to-computer transactions from the store to the vendors’ databases and ordering systems. The wireless hand-held inventory units keep a check on the entire database at the headquarters by downloading and help in downloading the data regularly.

    The Universal Product Code (UPC), is used for product identification system using bar code and unique numbering for organising the goods category wise. Automatic replenishment manages restocking of what’s been sold. Customer Relationship Management (CRM) software allows retailers to track customers.

    Price Auditing: Despite being a time consuming and costly process, price auditing is another important aspect for retailers which ensures that the consumers are not being charged extra or less. Auditing has been streamlined to a large extent by the introduction of technology as products can now be scanned at the time of purchase. Th is creates more accurate pricing, saves store employees a lot of time and creates better trust between the store and the customers.

    Impact of Technology on the Retail Industry

    The dawn of e-commerce had dealt a huge blow to the traditional retail – that is until retailers discovered the advantages of Omnichannel retail. With the advent of new technology, retailers are now raising the industry from the simple concept of buying and selling and taking Omnichannel to another level altogether.

    “Retailers will continue to adopt emerging technologies in 2018 to close the gap between the digital and physical worlds, and to learn more about consumers. Mobile will become an increasingly important part of the retail equation as stores also evolve. And throughout the industry, retailers will attain more data about their shoppers and use artificial intelligence to enhance their marketing and merchandising. Personalisation in retail will play a important role in 2018.

    Retailers will use data and AI platforms to better engage customers with personalized shopping experience both online and in the store. More retailers will use AI-based capabilities and technologies to better match shoppers with products. They will be able to access personal shopping history, demographics, page views and clicks then use AI to offer better recommendations and individually tailor their marketing,” says Sunil Nair, Sr. Vice President IT & Business Solutions, SPAR India (Max Hypermarkets).

    Indians as customers are more digitally aware now than ever before, and this number will increase over the next few years. More Indians getting into the digital space would mean more opportunities and challenges for us retailers in terms of getting through to the right audience in a manner that converts them into loyal customers. Upcoming technologies are going to make way for the Indian Retail Industry to make a digital breakthrough and provide exactly what the digitally-aware customers would want,” he adds.

    “India is one of the biggest consumer market in terms of mobile devices. Coupled with an efficient distribution and logistics setup, the retail industry is set for exponential growth. The real time analytics could bring in efficiencies in inventory management, product placements, supply chain, deliveries, and even product development for the right consumer market. The two hot technologies that are becoming very popular are ‘Robotics & Drone Deliveries’ in retail are yet to get a serious consideration in Indian market,” says Chetan Chaturvedi, CIO, Head – IT, Reliance Market Retail Ltd.

    “With the availability of new technologies each consumer today can be viewed as a unique individual with clearly identifiable preferences. Therefore, Indian retail needs to move from one-size-fits-all approach to a highly-customized, consumer-centric
    approach. The way retail is currently structured, this requires a both a big paradigm and structural shift,” adds Abhishek Lal, Sr. Director E-commerce – Emerging Markets, adidas Emerging Markets.

    “AI has become one of the biggest technological developments in recent years. With its ability to help turn large and diverse data sets into enriched information that can help improve speed, cost and flexibility across the value chain. In fashion, AI helps brands and retailers with predictive forecasting, capacity planning and merchandising. Consumers enjoy the benefi ts of better product availability,” says Manoj Patel, Dep. CIO, House of Anita Dongre Ltd.

    How IOT is Shaping the Industry

    “Retailers will make greater use of beacons, sensors and the Internet of Things devices to drive the in-store experience in 2018. IoT will be the tool that can finally bridge the gap between the digital and physical worlds as it finally offers the ability to obtain and use data in stores. Retailers will be able to use these devices to gather more information about consumers in the store and convert that into data that can also be used online and through mobile. They will pilot more IoT programs to enhance store entry, customer interaction, improve merchandising and offer more rapid checkout. We are in the process of implementing IOT for inventory management, improving in-store experience through personalised marketing and energy management,” explains Nair.

    “IoT adaptation varies from company to company. For beauty and cosmetics retail, it would help in recognizing customer sentiments through camera sensors, analysing in-store traffic and converting them as shoppers in real time. IOT can help out in building virtual assist to ‘try on’ makeup look before actually buying the final products. We are working on that,” says Tarun Bali, Head IT, Quest Retail Pvt. Ltd., The Bodyshop.

    “IoT is key for this consumer facing industry and it would create a huge impact in our customer offerings. There is use of sensors which capture Image/ Video/ Product information which are critical elements for retailers. Organizations need to store IoT data and use in for better operating decisions,” Piyush Chowhan, Chief Information Officer, Arvind Fashions Ltd.

  • Saigon Jewelry plans its privatisation

    Saigon Jewelry plans its privatisation

    Vietnamese jeweller Saigon Jewelry Company (SJC) is set to be privatised next year.

    The company, which has some 200 retail stores across the country, is one of a group of government-owned enterprises set for spin-off, however specific details have yet to be released.

    Established in 1988, SJC posted revenue of US$981.3 million and after-tax profit of US$3.4 million last year.

    The state-owned company also operates in other business sectors, including real estate, financial investment and services.

    SJC is one of the largest jewelry trading companies in Vietnam along with companies like Phu Nhuan Jewellery (PNJ), Bao Tin Minh Chau and Phu Quy Jewelry, all competing in the US$600 million Vietnam jewellery market.

  • Riccardo Tisci revealed Burberry’s new identity

    Riccardo Tisci revealed Burberry’s new identity

    Burberry has a new graphic identity. The British megabrand’s chief creative officer Riccardo Tisci took to his personal Instagram Stories to unveil a new logo — stark capital letters saying “Burberry London England,” replacing the previously softer, rounder font — and monogram — the founder Thomas Burberry’s initials “TB” interlocked across a honeyed background — on Thursday.

    It marks the first time the brand has changed its logo in almost 20 years (the previous logo, which saw Burberry drop the “S” from its name, was designed by Fabien Baron in 1999).

    Developed in collaboration with the renowned British art director and graphic designer Peter Saville — best known for his New Order and Joy Division record sleeves, and more recently, his work for Calvin Klein under Raf Simons — the brand’s new logo was inspired by Tisci’s visit to the house’s archive, “especially a logo from 1908 and a Thomas Burberry monogram,” according to an email correspondence between the two creatives, which Tisci shared on social media.

    The logo and monogram print will appear across all Burberry channels and in a new advertising campaign.

    The new visual identity comes five months after Tisci took the creative helm at Burberry, replacing Christopher Bailey. Chief executive Marco Gobbetti, who joined the company in July 2017, is nine months into his 5-year plan to reposition Burberry as a genuine luxury player and re-energise a brand whose sales growth has significantly lagged rivals LVMH and Kering. Core to the strategy is a renewed focus on leather goods, which currently account for less than 40 percent of revenue, and will presumably leverage the new monogram.

    After the 2008 financial crisis, fashion that so conspicuously screamed commercialism and consumption fell out of favour. Even Louis Vuitton changed tack, reserving its signature stamp for only limited-edition goods. After all, decreasing availability means increasing exclusivity — and for luxury brands, this means increasing demand.

    But now, luxury brands are returning to logos. As part of his maximalist revolution, Gucci creative director Alessandro Michele resurrected the brand’s interlocking G motif from its ’90s heyday, reinterpreting it for a younger, modern audience by adorning it with flowers or pairing it with playful motifs. Dior’s Maria Grazia Chiuri reintroduced the house’s logo print on handbags for her first ready-to-wear show. Fendi, too, has been reviving its black and brown double ‘F’ logo print across its clothing and accessories.

    Tisci previously revealed on social media the news that Burberry and Vivienne Westwood would be collaborating on a limited-edition collection, launching in December 2018.

    Tisci will show his first full collection for Burberry in September 2018.