Retail News CRM

Tag: asia

  • Singapore’s UOB unveils digital advisory service

    Singapore’s UOB unveils digital advisory service

    UOBAM said in a statement that it has launched its own digital advisory service UOBAM Invest that bids to allow companies to manage their discretionary investments through the firm’s portfolio solutions and in some cases achieve results within a matter of minutes.

    According to UOBAM Singapore the new digital service is offered exclusively to UOB’s commercial banking clients, which are mainly medium-sized companies. The launch is the city state’s first digital advisory service for companies to manage their discretionary investments, UOB said.

    It will be offered to the bank’s other corporate clients, as well as to retail investors, and across UOBAM’s network in Asia, in subsequent phases.

    Through the service, clients will be able to submit their financial information, obtain their risk profile, and receive an investment portfolio proposal in minutes.

    The clients can choose to invest in the proposed portfolio or to adjust it.

    Thio Boon Kiat, group chief executive, UOBAM, said: “At UOBAM, we have observed our clients’ increasing preference to receive investment advisory and to manage their investments digitally. Using our proprietary screening methodology and asset allocation framework, we designed UOBAM Invest to meet the needs of these investors and to make our portfolio solutions easily accessible online.”

    Portfolio creation

    The portfolios will be created from a wide range of UOBAM-managed funds and global exchange-traded funds (ETFs) spanning various asset classes, such as equities, high-yield and investment-grade bonds, as well as money market and short-term fixed income.

    UOBAM Invest said that a conservative portfolio will typically comprise ETFs or unit trusts that are invested mainly in government bonds, money market and short-term fixed income. The most aggressive portfolio will largely consist of ETFs or unit trusts that are equities-based, and a small allocation to those that are focused on high-yield bonds.

    Eric Tham, head of UOB group commercial banking, said: “Our clients look to discretionary investments in various fund products to maximise their returns and to strengthen their balance sheets. However, as they focus on their day-to-day business operations, they may not be able to afford the time needed to choose and to track their investment portfolios closely. With UOBAM Invest, it is now more convenient for our clients to manage these investments with UOBAM.”

    Technology partner

    UOBAM’s technology partner on UOBAM Invest is FNZ Group, a global FinTech company specialising in providing multi-channel wealth management services to the financial services and wealth management sectors.

    UOB Asset Management Ltd (UOBAM) is a wholly-owned subsidiary of United Overseas Bank Limited. Established in 1986, UOBAM has been managing collective investment schemes and discretionary funds in Singapore for more than 30 years. As at 30 November 2017, UOBAM and its ubsidiaries manage about S$33.9bn (US$25.2bn) in clients’ assets. UOBAM has an extensive presence in Asia with regional business and investment offices in Malaysia, Thailand, Brunei, Taiwan and Japan.

  • iPhone helps dial up Nov retail sales growth to 2-year high

    iPhone helps dial up Nov retail sales growth to 2-year high

    Retail sales surged in November with their strongest growth in almost two years, reversing course from the slump seen in October possibly due to the launch of the iPhone X and improved consumer sentiment, say economists.

    Total takings grew 5.3 per cent in November compared to the same month a year ago – its best showing since March 2016, according to latest data by the Singapore Department of Statistics.

    This is a reversal of the 0.2 per cent decline recorded in October – revised lower from earlier estimates of a 0.1 per cent dip – and a steeper 0.6 per cent fall in September. It also beat economist forecasts of a modest 1.1 per cent rise, according to a poll by Bloomberg.

    With motor vehicles stripped out, retail sales still grew 4.7 per cent year-on-year.

    Despite the volatility usually seen in retail sales numbers, economists say that November’s data is a sign of a continued pickup in sentiment thanks to a brightening economy.

    Maybank Kim Eng economist Chua Hak Bin said: “You haven’t seen this type of retail numbers for quite some time. It looks as if growth has broadened and consumers are a lot more upbeat… Generally, the feel-good factor has spread out.”

    While it seems that consumer spending has finally turned the corner, one factor that could influence this recovery is a hike in taxes. Credit Suisse economist Michael Wan said: “The one risk is on policy – whether the government will change any tax rates and the magnitude of change.”

    Goods and services tax (GST), which has stood at 7 per cent since 2007, is widely seen as the top contender for a hike, with e-commerce tax another likely candidate. Market watchers expect the issue of tax to be addressed at the upcoming Budget 2018.

    Maybank’s Mr Chua said that the timing of a GST hike, if any, matters. For example, there could be an uptick in retail sales as consumers bring forward their spending ahead of higher taxes in the future. A possible e-commerce tax could also affect retail sales. Mr Chua explained: “Some of the international e-commerce transactions are not captured (in terms of tax). There could be some shifts as the playing field is levelled as this (an e-commerce tax) will take away some advantage that the international online players have.”

    As of now, retail sales data mostly captures brick-and-mortar spending. He believes November’s stellar growth was likely driven by smartphone sales with the launch of the latest iPhone X, which would explain the surge in computer & telecommunications equipment sales.

    Computers & telecommunications equipment was by far the best performing segment, going up by 16.6 per cent compared to a year ago. This was followed by supermarket sales at 9.7 per cent and petrol service station sales at 9.6 per cent.

    On a month-on-month basis, the performance of computers & telecommunications equipment was even more stark, jumping 46.5 per cent compared to October. This was followed by motor vehicles at 14.6 per cent. The poorest performing segment was watches & jewellery with a decline of 3.6 per cent.

    After seasonal adjustment, total retail takings went up by 5.1 per cent in November compared to the month before. Excluding car sales, it still grew a respectable 2.9 per cent.

    While retail sales was much stronger than expected, sales of food & beverage services was mixed. Total takings grew 2.1 per cent year-on-year, but dipped 0.1 per cent compared to October. The total retail sales value in November was estimated at S$3.8 billion, higher than the S$3.6 billion seen last year.

    Despite the uncertainty surrounding possible tax hikes, economists remain optimistic on the outlook for retail sales in 2018.

    Mr Chua pointed out that even when GST was increased in the past, the backdrop of a booming economy helped offset its dampening effects.

    He said: “The state of the economy and the job market – those are always the more overwhelming factors. What’s important is that the economy holds up.”

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  • Asia Gold-Price gain keeps buyers at bay; market eyes China holiday boost

    Asia Gold-Price gain keeps buyers at bay; market eyes China holiday boost

    Demand for physical gold remained lacklustre across top Asian centres this week as buyers were put off by a rally in prices, but an approaching Chinese New Year could reignite appeal for the yellow metal.

    Gold prices rose for a third session on Friday to hit their highest since September, with a slump in the U.S. dollar helping drive bullion towards its fifth straight weekly gain.

    High prices are weighing on physical demand for gold, but demand is expected to rise ahead of the Chinese New Year, according to Brian Lan, managing director at dealer GoldSilver Central in Singapore.

    In top consumer China, the range for premiums broadened to about $5-$8 an ounce from $6-$7 last week.

    The Chinese New Year holiday will kick in by the middle of next month.

    There is not too much demand currently and if prices come down to the $1,300 level, demand and premiums will increase, said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

    Premiums of 60-80 cents an ounce were being charged over the benchmark in Singapore this week, while in Hong Kong, premiums ranged between 60 cents and $1.20, against 70 cents previously.

    Demand remained subdued in India, the world’s second largest consumer of the metal, as well, since jewellers and retail buyers were postponing purchases due to a rally in local prices to the highest level in 1-1/2 months.

    Jewellers need to buy gold for the next month’s jewellery exhibition, but they are postponing purchases due to the price rise, said Mukesh Kothari, director at bullion dealer RiddiSiddhi Bullions in Mumbai.

    “They will wait for a week or so for price correction. Then they have to make purchases.”

    Local gold prices jumped to 29,550 rupees per 10 grams, the highest level since Nov. 20, 2017.

    Dealers in India were offering a discount of up to $2 an ounce this week over official domestic prices, unchanged from last week. The domestic price includes a 10 percent import tax.

    Jewellers were keeping a lower inventory as some people are speculating the government will reduce import duty in the budget on Feb. 1, said a Mumbai-based dealer with a private bank.

    India’s gold imports surged 67 percent in 2017 from the previous year to 855 tonnes, provisional data from precious metals consultancy GFMS showed.

    Meanwhile, in Japan, public selling volumes rose, causing sellers to keep offering discounts of 50 cents, unchanged from the previous week. (Reporting by Nithin Prasad in Bengaluru, editing by David Evans)r

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  • Alibaba’s plan to revamp mom-and-pop stores ‘innovative’, but Singapore ‘not ready’

    Alibaba’s plan to revamp mom-and-pop stores ‘innovative’, but Singapore ‘not ready’

    Ahead of its annual online shopping extravaganza, popularly known as Singles Day, last November, Chinese tech titan Alibaba unveiled its Ling Shou Tong retail strategy.

    Ling Shou Tong’s idea is simple: To connect convenience stores, often mom-and-pop stores, to the e-commerce giant’s network of supply chain, logistics and data analytics – and by doing so, revamp how these shops operate.

    As it said on its news portal Alizila: “The programme doesn’t just give a cosmetic update to convenience stores. It’s also an extreme tech makeover, injecting modern analytics to improve, streamline and automate operations that have long relied on elbow grease and intuition.”

    In practical terms, this means when shopowners order goods via the Ling Shou Tong app, analytics of their stores would suggest to them the products that are most in demand. They are also able place their orders online, in a centralised manner, without having to negotiate with multiple distributors.

    Alibaba said a large number of mom-and-pop stores in China are owned by those over 45, who “log long hours and do everything themselves”, and these are characteristics that could apply to small retailers here in Singapore too.

    LING SHOU TONG IN SINGAPORE?

    But could Alibaba bring the Ling Shou Tong concept to Singapore?

    IDC’s lead analyst for Future of Commerce Lawrence Cheok said in an email that this retail strategy provides similar benefits for consumers and small merchants here, such as greater supply chain efficiencies and, hopefully, competitive prices.

    However, he noted that Ling Shou Tong is similar to the tech titan’s other rural commerce initiatives in that it is an effort to more deeply penetrate the local domestic market, given that e-commerce is mostly saturated in the top tier cities. With that in mind, he questioned if bringing this retail concept here is the “lowest lying fruit” for the Singapore market.

    Other analysts also downplayed the possibility of Ling Shou Tong being brought here, with Forrester Research’s senior analyst Xiaofeng Wang saying that Singapore is not ready for the retail concept as consumers or small merchants are not prepared for it.

    Ms Wang pointed out that mobile payment in China is already so dominant, with the majority of consumers and small merchants, even street stall owners, using this method on a daily basis. So upgrading to Ling Shou Tong and using digital means to order and manage inventory “wouldn’t be that far away” for these mom-and-pop shopowners.

    “In Singapore, there’s still a long way to go,” the analyst said in an email. “Majority of consumers and merchants still use cash in hawker centres even after QR code payment is launched.”

    Gartner’s research director Adrian Lee also said that while the concept is “innovative”, he does not see it “playing out well” here.

    Mr Lee said in his email that Ling Shou Tong needs several conditions to be successfully implemented: A near ubiquitous digital payment channel and point-of-sale management to facilitate seamless checkout, a robust and integrated logistics network and fulfillment partners such as Cainiao and sufficient number of store owners who believe in the value of tapping into the company’s massive inventory to gain cost savings when stocking up.

    “For the above reasons, I do not believe that Ling Shou Tong is viable in Singapore.”

    NEW RETAIL METHODS “A MATTER OF TIME”

    That said, IDC’s Cheok is of the opinion that Alibaba’s New Retail strategy, which Ling Shou Tong is a part of, will spread to the rest of Asia. Chairman Jack Ma had said last October that New Retail will “bring about a restructuring of the global supply chain and change the complexion of globalization from the domain of big businesses to small businesses”.

    The imported retail concept would be a variation of the China model “in order to cater to local requirements” and would likely entail partnerships with local players who can provide value, the analyst explained.

    “For instance, Alibaba would require local consumer data and insights to provide the same benefits they are providing to the Chinese merchants. In addition, new supplier relationships would be required to cater to local merchandising preferences,” he said.

    Should this happen, it will “definitely impact the bottom line for competitors caught unawares”, Gartner’s Lee suggested.

    “Amazon will have an advantage in that they’ve launched similar converged retail initiatives and is also sufficiently funded to scale up,” he said. “The capital investment required to carry out Ling Shou Tong will prove an obstacle for local supermarket chains and players like honestbee.”

     

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  • Asia boosts Fast Retailing sales and profit

    Asia boosts Fast Retailing sales and profit

    Uniqlo parent Fast Retailing has reported a record first quarter profit as international sales eclipsed its domestic revenue for the first time.

    While Fast Retailing sales in Japan rose 8 per cent to 257 billion yen (US$2.31 billion) for the first quarter ended November, overseas sales surged 31 per cent to 258.2 billion yen.

    “Southeast Asia & Oceania contributed to the rise in Uniqlo international revenue thanks to strong sales of summer items designed for year-round hot weather and buoyant demand for winter items from overseas travelers,” the company said in a statement.

    In China, Uniqlo is closing in on its target of 1000 stores by 2021 by venturing into second- and third-tier cities, surpassing 600 at the end of last year. India is the next major market on its radar.

    As for the home market, Fast Retailing CFO Takeshi Okazaki said while the economy was improving, “we cannot be optimistic that demand is returning to the apparel sector”.

    “We aim to make Japan one country in a global business,” he said during an earnings briefing.

    Operating profit for the quarter rose 28.6 per cent to US$1 billion in the quarter.

  • Lululemon leader in experiential marketing

    Lululemon leader in experiential marketing

    Healthy diet, meditation and breathing, gift wrapping, those are the free classes that Canadian Yoga clothing brand Lululemon offers for the public every month.

    The Cheongdam Flagship Store, which opened in May 2017, runs a whole floor as a studio for experience programs.

    For Lululemon it is important to promote healthy lifestyle rather than simple product marketing, and will be much helpful to secure customers by offering brand experience.

    Lululemon is considered to be a leader in experiential marketing. Founded in Canada in 1998, the brand has a business philosophy of “enabling everyone to enjoy a happy life through products and experiences that change their lives.”

    Lululemon Experience ‘Community Class’ does not mean that all classes are directly related to yoga clothing sales.

    There are Yoga-related classes such as Ashtanga and Broga (men’s yoga) for the brand experience, but there are many other lessons such as flower arrangement, gift wrapping, healthy diet, weaving, boxing.

    Ice yoga, which started with the Grand Hyatt Seoul Hotel l in December 2017 and set to be running until March 2018, is very popular for instance.

    Lululemon Korea officials said “Lululemom stores around the world run yoga classes after heir business time. However, Korea is the first to separately have a yoga studio for the classes such as Cheongdam Flagship Store and Stafield Hanam in Asia.

    It is important to secure Korean consumers who are sensitive to trends. In addition, 30% of the class participants voluntarily purchase clothes.

    Lululemon receives their review from not only customers, but also exercise experts who participate as lecturers and community class participants to reflect on product development.

    In January 2018, ‘Asian Exclusive Line’ event reflecting Asian people’s body shape was  held at Cheongdam Flagship Store. “The opinions of demanding Korean consumers play an important role in establishing an Asian business strategy,” a company official said.

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  • Indian jeweller Malabar Gold & Diamonds to break a record

    Indian jeweller Malabar Gold & Diamonds to break a record

    Indian jewellery chain Malabar Gold & Diamonds today added 11 showrooms across six countries to its network.

    Taking its retail store count to 208, the showrooms include AMK Hub in Singapore, Ampang Mall in Malaysia and Warangal in Telangana, India. Other showrooms are in malls across the UAE. The brand has 90 showrooms in India, and last year opened 27 showrooms internationally.

    As well as another 50 showrooms in different formats internationally, the Malabar Group plans to add more manufacturing units this year, says chairman MP Ahammed. “This will fuel our vision to become the top jewellery retailer in the world.”

    The company will expand into new countries such as Brunei, Bangladesh, Sri Lanka and the US, says Malabar Gold international MD Shamlal Ahammed.

    The expansion will generate more employment and enhance such initiatives as the government’s Made In India, says Malabar Gold & Diamonds India MD O Asher. The group has earmarked 5 per cent of its annual profit for CSR activities in five key areas: housing, health, environment, women’s empowerment and education.

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  • Hyundai Motor and Aurora Partner to Develop Level 4 Autonomous Vehicles by 2021

    Hyundai Motor and Aurora Partner to Develop Level 4 Autonomous Vehicles by 2021

    Last week, Hyundai Motor Company and Aurora, a leader in autonomous vehicle technology, announced a strategic partnership to bring self-driving Hyundai vehicles to market by 2021. This partnership will incorporate Aurora’s self-driving technology into Hyundai vehicles starting with models custom-developed and launched in test programs and pilot cities. Over the longer term, Hyundai and Aurora will work to commercialize self-driving vehicles worldwide.

    To start, the partnership will focus on the ongoing development of hardware and software for automated and autonomous driving and the back-end data services required for Level 4 automation. Level 4 autonomous vehicles defined by SAE can operate without human input or oversight under select conditions. The goal of the partnership is to deploy autonomous driving quickly, broadly and safely.

    “We know the future of transportation is autonomous, and autonomous driving technology needs to be proven in the real-world to accelerate deployment in a safe and scalable manner,” said Dr. Woong Chul Yang, Vice Chairman of Hyundai Motor. “Combining our advanced vehicle technology that embeds the latest safety features with Aurora’s leading suite of Level 4 autonomous technology will advance this revolution in mobility with Hyundai in a leadership position.”

    Hyundai and Aurora share the common vision of improving safety and mobility on the world’s roads, and together bring the skills and experience required to successfully introduce this technology at scale. For nearly 50 years, Hyundai has been a leader in vehicle design, safety and manufacturing, catapulting the company to become one of the world’s largest vehicle manufacturers together with its Kia Motors Corporation affiliate.

    For the last two decades, Aurora’s founders have spearheaded the self-driving revolution, building teams and pioneering modern machine learning techniques now on the cusp of transforming transportation. Together, Hyundai and Aurora will move quickly to bring self-driving technology to market around the world.

    “Aurora is excited to partner with Hyundai Motor to make the social benefits of self-driving available globally,” said Dr. Chris Urmson, CEO of Aurora. “This partnership combines Hyundai’s strengths in vehicle design, safety and manufacturing with Aurora’s expertise in self-driving technologies to make a positive difference in the world.”

    Hyundai Motor’s partnership with Aurora is part of the company’s ongoing efforts towards realizing fully autonomous driving. Hyundai first began testing autonomous vehicles on public roads of the USA in 2015, having been granted a license by the state of Nevada. Last year at the 2017 CES, Hyundai advanced its trials in urban environments, demonstrating self-driving technologies to the public with its autonomous IONIQ models.

    Hyundai’s latest new-generation fuel-cell vehicle, which will make its official global debut at CES 2018 next week, will become the first model to be utilized in the test processes starting this year. The fuel-cell powertrain will offer an ideal platform to implement autonomous driving technologies, which requires a massive amount of power to support the large amount of data communication as well as the operation of hardware such as sensors. Hydrogen-powered fuel cell vehicle will be able to provide a stable electric power supply without concerns about driving range.

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  • Richemont asia pacific rocket sales

    Richemont asia pacific rocket sales

    Asia Pacific has continued double-digit growth for heritage brand owner Richemont for its third quarter to the end of December.

    Total sales in the quarter increased by 7 per cent at constant exchange rates and by 1 per cent at actual rates over the same period a year earlier.

    Retail sales were mainly driven by the group’s jewellery maisons and specialist watchmakers, especially in Asia Pacific, where growth was led by Mainland China, Korea, Hong Kong and Macau.

    A rise in sales in Japan was supported by strong growth from the watchmakers and a favourable currency environment, says Richemont. Sales there reached €294 million (US$354 million), up 5 per cent at constant exchange rates but down 6 per cent at actual rates.

    Asia Pacific quarterly sales were €1.18 billion, up 11 per cent at constant exchange rates and 5 per cent at actual rates.

    Underpinned by solid performances in both jewellery and watches, overall retail sales maintained strong momentum, recording 13 per cent growth. Jewellery shone with an 11 per cent increase.

    Other businesses posted stable sales, with growth notably from Montblanc, Chloe and Lancel. Excluding the impact of the sale of Shanghai Tang, the other businesses would have had moderate growth.

    Sales over the nine months to the end of December grew by 10 per cent at constant exchange rates and by 7 per cent at actual exchange rates.

    Richemont’s portfolio of international “maisons” covers three segments: jewellery (Cartier, Van Cleef & Arpels and Giampiero Bodino), specialist watchmakers (A Lange & Sohne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren watch and jewellery JV), and other businesses (including Alfred Dunhill, Azzedine Alaia, Chloe, Lancel, Montblanc and Peter Millar).

    Richemont also holds a 49 per cent equity-accounted interest in the Yoox Net-a-Porter Group.

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  • Is Amazon threatening luxury?

    Is Amazon threatening luxury?

    Amazon has been struggling to recruit luxury brands to sell their good on its platform, but there is one way that it could make its marketplace more of a destination for shoppers looking for certain tiers of luxury products.

    Amazon could launch vertically integrated, mass-customized brands of its own that use technology to smooth the customer shopping process, similar to Indochino.

    While Amazon is not likely to get catalog coverage from many of the ultra-luxury brands, it does have the ability to make a number of mid-level luxury brands less relevant to large segments of Amazon customers, replacing those brands through the merchandising of its own private-label luxury brands at prices that encourage even the slightly price-sensitive luxury products customer to consider a cheaper alternative, available directly from Amazon.

    There will always be customers who want nothing other than the $10,000 handbag with that special brand name, or the $3,000 suit from Armani or Gucci. Yet for millions of Amazon Prime customers, the prospects of “affordable luxury” becomes available through something like an Indochino model.

    Brands like Brooks Brothers, Hugo Boss, Zac Posen, Tom Ford and Burberry that may today be aspirational for millions of Amazon customers could be replaced with Amazon’s own mid-level luxury brands, made at comparable quality with perfect custom fitting and a much lower price. Such a model has the potential to wipe out much of the apparel advantage Stitchfix has created for itself over past few years.

    Indochino is a direct-to-consumer manufacturer of custom suits for shirts for men. While production is based out of China, it offers U.S. customers the opportunity to get sized either through a measurement process online using videos, or in a limited number of storefronts based in major metropolitan locations throughout the United States. For under $400, Indochino is able to manufacture a custom-fitted garment and shrip it to the U.S. or Canadian customer within 3 weeks.

    Comparable pricing for a U.S.-tailored suit including luxury brands would range from $1,500-$3,000. While a luxury U.S. brand in the U.S. is likely to require 2-3 weeks for custom tailoring of an off-the-rack suit, the custom-made Indochino suit sells for a fraction and promises a better fit because it was made using the customer’s body measurements.

    Let’s say Amazon bought Indochino, or built its own comparable model, and expanded it into women’s clothing too.

    Then Amazon uses some variant of technology from its new acquisition Body Labs to develop a system for measuring customers’ dimensions. With such technology onsite at a range of retail studios across the country, Amazon now would have the dimensions of millions of Prime customers, and would be able to offer them its own custom-fit luxury-quality brands.

    Using pin-point merchandising, Amazon could target these brands to specific customers that have searched for comparable luxury brands on Amazon already. Amazon’s scale and ability to accept low margins would quickly turn the mid-luxury brand customer towards Amazon, and away from so many of the luxury brands that have declined to distribute their products on Amazon.

    With any decent scale, Amazon would have competitive manufacturing costs, the ability to up-sell and cross-sell all sorts of other items (apparel and non-apparel), all the while being comfortable with much lower margins than a typical luxury brand. With an already generous returns policy, Amazon could offer customers the opportunity to buy lower-priced custom-made items, returning whatever items the customer did not like. I do not know of any other apparel brand that could compete effectively with such a model.

    The prospect that Amazon could win part of the customer’s wallet that today goes to luxury brand purchases externally should be on the radar of mid-tier luxury brands, and a ray of hope that more consumers will be able to afford a luxury look at lower prices.

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  • Sa Sa International looking good, thanks to tourists

    Sa Sa International looking good, thanks to tourists

    Stronger store traffic drove overall sales for cosmetics retailer Sa Sa International for its third quarter to the end of December.

    This was in line with expectations, says the company.

    Total transactions increased by 5 per cent year on year to 5.1 million, while the number of transactions with local and mainland tourists grew 6.6 and 4.1 per cent respectively. The average transaction value also rose, by 4.2 and 2.8 per cent (to reach $367) respectively.

    The group’s total turnover grew by 6.5 per cent to HK$2.2 billion (US$281 million), led by Hong Kong and Macau where the growth was 8.1 per cent to reach $1.8 billion, while same-store sales increased by 3.7 per cent.

    Overall retail sales and same-store sales had 9.5 and 5.6 per cent growth respectively during December.

    Turnover in Mainland China, Singapore and Malaysia grew 13, 3.6 and 3.9 per cent respectively, while the turnover for Taiwan and e-commerce dropped by 5.5 and 21.9 per cent.

    Total turnover for the nine months to the end of December was $5.9 billion, up 3.4 per cent. For Hong Kong and Macau the figure was $4.8 billion, up 4.5 per cent.

    Same-store sales were flat for the nine months, while the average sales per transaction rose 3.3 per cent for to $343. There were 14 million transactions, up 1 per cent.

    At the end of December the company had 290 stores, no change from a year previously. However, the number of stores increased in Hong Kong and Macau (from 115 to 119), while there was a drop in Singapore (from 21 to 19) and in Taiwan (from 25 to 21). China and Malaysia had no change with 56 and 73 stores respectively.

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  • Toyota, Mazda to build $1.6 billion plant in Alabama

    Toyota, Mazda to build $1.6 billion plant in Alabama

    Alabama will be the site of a new $1.6 billion Toyota Motor Corp and Mazda Motor Corp auto plant, a victory for President Donald Trump who had prodded manufacturers to build new U.S. facilities and threatened tariffs on foreign production, sources said on Tuesday.

    The plant, which will employ up to 4,000 people and produce about 300,000 vehicles a year, will be located in Huntsville, Alabama, and is a boon for the state, where Toyota has a large engine plant and an existing network of automotive suppliers.

    A formal announcement by company and state officials is expected on Wednesday in Montgomery, sources briefed on the matter said.

    The new plant –in a state Trump won by 28 points in 2016 — could be a political boost to the Republican president, who has urged automakers to build plants in the United States and add jobs. The companies said they expect the plant to open in 2021.

    Trump tweeted in March he wanted “new plants to be built here for cars sold here.” The White House did not immediately comment on Tuesday.

    The announcement also comes at a time of declining U.S. auto industry sales, so it could exacerbate overcapacity and add pressure to cut prices. U.S. new vehicle sales fell 2 percent in 2017, after hitting an all-time record high in 2016, and are expected to fall further in 2018.

    Details of an anticipated tax and incentive package for the investment were not yet known. It has been reported the companies sought at least $1 billion in incentives.

    A Toyota spokesman declined to comment, except to say an announcement was expected soon. A Mazda spokeswoman also declined to comment.

    In recent months, the companies had narrowed their choices down to sites in Alabama and North Carolina.

    Local media last month said the leading site under consideration was in northern Alabama’s Limestone County, near Toyota’s large engine plant in Huntsville. In September Toyota announced a $106 million technology upgrade for the Huntsville plant.

    A Chamber of Commerce of Huntsville website for the “Huntsville Mega Site” touts the fact it has been “certified as development-ready.” The commerce chamber, local and state officials declined to comment on Tuesday on plans for the plant.

    A year ago, President-elect Trump criticized Toyota and threatened hefty tariffs against the Japanese automaker if it built its Corolla sedan for the U.S. market in Mexico.

    “Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax,” Trump posted on Twitter in early 2017.

    Toyota and Mazda announced plans for a new plant in August. Toyota said it would shift production of Corollas from Canada to the new venture rather than in Guanajuato, and would build Tacoma pickups in Mexico instead. Mazda plans to build new crossover SUVs at the plant.

    Trump praised the joint venture announcement, saying in August on Twitter: “Toyota & Mazda to build a new $1.6B plant here in the U.S.A. and create 4K new American jobs. A great investment in American manufacturing!”

    In October, Toyota said it would scale back investment in a planned plant in Mexico by 30 percent to $700 million and cut planned annual capacity in half to 100,000 vehicles as it shuffles its production plans to meet market demands.

    Toyota has 10 U.S. plants in eight states in an arc running from West Virginia through Kentucky, Indiana, Alabama, Mississippi and Texas.Toyota and Mazda announced a capital alliance in August and are exploring joint development of technologies for the basic structure of competitive electric vehicles.

    Over the last 30 years Toyota, along with German and Asian automakers, has built a second auto industry in the United States, rivaling the operations of the Detroit Three automakers in size and employment, but with newer, and fewer unionized, plants.

    States covet auto assembly plants because they typically pay above-average wages and spin off jobs at suppliers and service companies. Southern U.S. states have the advantage of good transportation infrastructure, business-friendly regulators and generally anti-union politicians.

    The Alabama Department of Commerce shows 150 of the large automotive suppliers operate in the state, providing the logistical strength that Kristin Dziczek, a researcher at the Center for Automotive Research in Michigan, said helped land the plant.

    Dziczek said that Alabama in 2017 was tied for fifth among U.S. states in auto production, at 9 percent with Tennessee. It was behind Michigan at 19 percent; Indiana at 12 percent, Kentucky at 11 percent; and Ohio at 10 percent.

    “The impact of an auto assembly plant extends beyond its immediate economic impact, and that’s why states offer robust incentives,” said Dennis Cuneo, a site-selection consultant and former Toyota executive. “It creates a halo effect that in turn helps attract other projects.”

    Alabama spent an estimated $250 million to woo Daimler AG’s Mercedes-Benz to put an auto plant in Tuscaloosa two decades ago.

  • Jollibee Foods to try Guam after a decade withdrawal

    Jollibee Foods to try Guam after a decade withdrawal

    Filipino fast-food giant Jollibee Foods plans to re-enter Guam this year after pulling out more than a decade ago as the islands went through an economic downturn.

    Jollibee Foods assistant VP/head of international franchising Maxi Peralata Jr says it will open a restaurant in a strategic location in the fourth quarter, near Marine Corps Drive and Route 16/Army Drive in Dededo.

    The outlet will be built within the Micronesia Mall compound, but this has not been confirmed by the mall’s management.

    Peralta says a franchisee has been appointed. He has not disclosed the franchisee’s identity but says their partner has business interests in Guam and the Philippines.

    Jollibee had two franchised restaurants on Guam and two on Saipan, but its Marianas presence ended with the economic downturn. Jollibee also had trouble competing with Guam players offering larger portions.

    Internationally, Jollibee has 139 stores – 72 in Vietnam, 32 in the US, 19 in the Middle East, 13 in Brunei, two in SIngapore and one in Hong Kong.

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  • The Macallan targets Indian travellers at Dubai Airport

    The Macallan targets Indian travellers at Dubai Airport

    A recent Diwali-themed activation held by Edrington Europe, Middle East & Africa Travel Retail in partnership with Dubai Duty Free has resulted in a +107% sales uplift in store for The Macallan.

    The activation is the first phase of Edrington’s strategy to drive single-malt recruitment and premiumisation among Indian travellers – traditionally known as blended whisky drinkers. The Macallan is the first single-malt to actively target Indian passengers at Dubai Duty Free during Diwali, said the company.

    Traditionally known as blended whisky drinkers, Indian travellers represent a huge opportunity for the single-malt market

    The ‘Celebrate Diwali With The Macallan’ campaign placed the single malt on promotional pedestals in the centre of Dubai Duty Free’s Concourse B East and West stores, each with a sales consultant on hand to advise.

    Diwali-2-2-e1515768193699-39e9736e149ea751a9901577d393518a25a9baf9

    The campaign’s visual identity centred on the peacock – a symbolic animal in Hindu mythology also used to represent ‘Natural Colour’ – one of The Macallan’s Six Pillars. Premium gift bags featuring the campaign imagery and slogan were offered to customers making a purchase.

    The concept was tested and adapted through research in key Indian cities – Delhi, Mumbai and Bangalore – and in Dubai. India is the number one destination country from Dubai in terms of passenger volume, with over 1 million travellers in August 2017, and Mumbai the number three destination city.

    “India is a market packed with potential; its rapid economic growth and burgeoning middle classes present a major opportunity for us to not only foster single malt consumption in a traditionally strong blended whisky market, but also to drive premiumisation by leveraging the power of The Macallan brand,” said Edrington Middle East & Africa Travel Retail Commercial Manager Florence Chevallier.

    “This Diwali activation was the first stage in our long-term strategy to ‘win India’ through an insight-driven approach, executed at key airports in close partnership with our retail partners.”

    Dubai Duty Free Senior Vice President-Purchasing Saba Tahir commented: “To have a brand with the prestige of The Macallan spearheading the single malt category’s growth amongst the key Indian demographic is extremely exciting. The premium appeal of this activation, combined with the strong gifting elements clearly resonated with shoppers and delivered exceptional initial sales results.”

  • Say Chiizu stretchy cheese toast opening outlets across Singapore

    Say Chiizu stretchy cheese toast opening outlets across Singapore

    Thailand’s Say Chiizu cheese toast is stretching all the way to Singapore, with takeaway kiosks being set up at four malls next week.

    Its cheese is made on the company’s own farm in Thailand which has cows and machinery imported from Japan, hence its main product being called Hokkaido cheese toast. Its special formula combines three types of cheese to produce its special taste and super-stretchable texture.

    Its Hokkaido milk toast comes in five flavours: charcoal, chocolate, strawberry, matcha and original.

    As well as its toast, Say Chiizu offers snacks such as Pizza Cheese Fries, BBQ Pull Chicken/Pork Cheese Fries, Cheese Fries and Classic Fries.

    Its drinks line-up includes yuzu, matcha, strawberry and peach cheese teas.

    Say Chiizu’s first outlet opens at VivoCity on Monday, followed by 313 @ Somerset on Tuesday, White Sands Shopping Centre on Wednesday and The Clementi Mall on Thursday.

    The brand is aiming to open 10 outlets in SIngapore by the end of the year, including a sit-down cafe at Bugis next month.

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