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Tag: asia

  • Dover Street Market opens in Singapore

    Dover Street Market opens in Singapore

    Dover Street Market has finally opened its doors in Singapore, the fifth location for the Japanese fashion retailer, conceived by fashion designer Rei Kawakubo, the founder of luxury label Comme des Garçons.

    Located inside an old army barrack, the latest market addition officially opened on Saturday, after it was first announced in December 2016.

    DSM Singapore is housed in a building that forms part of the COMO Dempsey complex.  The complex has been hailed as a “lifestyle destination” in Singapore, stocked with designer shops and restaurants.

    “I want to create a kind of market where various creators from various fields gather together and encounter each other in an ongoing atmosphere of beautiful chaos; the mixing up and coming together of different kindred souls who all share a strong personal vision,” said the Japanese designer, who designed the new store.

    DSM Singapore sells a curated range of luxury streetwear labels. Inside, Balenciaga, The Row, and Thom Browne are in their self-designed individual sections, alongside the mainstay Comme des Garçons — hung within two large glass-meets-steel fittings.

    Elsewhere, the Wire Fence Labyrinth boasts metal mesh walls and hosts women’s fashion from Jacquemus, JW Anderson, Molly Goddard and Vetements, while the store’s men’s apparel is found inside solo steel towers.

    DSM opened its first location in London in 2004. Today, it has locations in Tokyo, New York and Beijing.

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  • SM’s Logistics 2Go mulling e-commerce expansion

    SM’s Logistics 2Go mulling e-commerce expansion

    Logistics 2Go Group, which has just been taken over by Chelsea Logistics Corporation and the SM Group, is studying a possible expansion into e-commerce.

    President Dennis Uy says there is nothing definite yet, especially with the cost being “quite high”.

    He says e-commerce would be the final link to its logistics business chain as 2Go is already fully integrated from warehousing to shipping to courier and door-to-door package-delivery services. It could either venture into the front-end of the e-commerce business in partnership with the SM group or just service companies already engaged in e-commerce.

    However, Uy says it is not easy, and “it is not necessary that we should be there”. But it could happen in the next two years.

    “As the country industrializes, we’ll have more options to shop. We won’t want to go to the mall. We’re very product-specific, and more people will be banked, using debit/credit cards.”

    He says the challenge is to make the expansion profitable.

    “In terms of e-commerce, we plan on partnering with SM because it is really strong in that field. It is already an established brand,” says Uy.

    The SM Group’s non-food retail unit The SM Store launched into e-commerce in 2014.

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  • Profit lift for Sheng Siong Group

    Profit lift for Sheng Siong Group

    Supermarket chain Sheng Siong Group had a 6.1 per cent increase in net profit to S$16.1 million (US$11.8 million) for its second quarter, to the end of June.

    It attributes this to higher gross profit generated by revenue growth and improved gross margin, partially offset by higher running expenses because of increased activity.

    Revenue grew by 6.8 per cent year-on-year of which 5.2 per cent was contributed by new stores, 0.9 per cent by comparable same-store sales and 0.7 per cent by Loyang Point and The Verge stores.

    Growth in same-store sales improved on the first quarter’s “flattish” growth, mainly because of improved consumer sentiment, but was offset by a drop in footfall of stores in areas affected by the slowdown in the oil and gas industry, the Tampines store’s renovation and the Woodlands store, where most residents in nearby blocks affected had moved. Excluding the contraction from the Woodlands store, comparable same-store sales growth would be 1.2 and 1.7 per cent for the first and second quarters respectively.

    Gross margins increased to 26.6 per cent for the second quarter (26.1 per cent in the same quarter last year), mainly because of input cost being lowered by efficiency gains derived from the central distribution centre, a higher level of supplier rebates, and a better sales mix of higher-gross-margin fresh versus non-fresh produce.

    The store at The Verge was closed in the third week of June, and The Woodlands store may be closed in October instead of August, as the HDB is redeveloping the area. Both these stores accounted for 7.6 per cent of the first half’s revenue.

    The group has entered into a lease for a new shop of about 4000 sqft (370 sqm) at Fajar Road, Bukit Panjang, and successfully bid for a new HDB shop of about 12,000 sqft in Woodlands Street. The stores are expected to be open in September and October respectively.

    An extension of the distribution has been started, to add another 50,000 sqft of storage space in the third quarter of next year.

    Renovation of a supermarket to be run by a subsidiary in Kunming is expected to be complete in September.

  • VW sale of Ducati, Renk units lacks board support

    VW sale of Ducati, Renk units lacks board support

    Volkswagen’s planned sale of motorcycle brand Ducati and transmissions maker Renk has currently no majority backing on the carmaker’s supervisory board, with opponents to asset sales feeling invigorated by the group’s strong results.

    Europe’s largest automaker has tasked banks to evaluate options for Ducati and Renk including divesting the two divisions as it aims to streamline operations to help fund a post-dieselgate strategic overhaul.

    Volkswagen has been reviewing its portfolio of assets and brands since announcing in June 2016 a multi-billion-euro shift to electric cars and new mobility services as part of its so-called Strategy 2025.

    Five bidders have been shortlisted to buy Ducati, including Italy’s Benetton family, with offers received valuing the brand at 1.3 billion-1.5 billion euros ($1.76 billion), a source said on Saturday.

    But VW’s labour leaders, occupying half the seats on the 20-member supervisory board which decides on asset sales, resist a sale of Ducati and Renk without compelling financial reasons.

    “The employee representatives on Volkswagen’s supervisory board will neither approve a sale of Ducati, nor one of Renk or MAN Diesel & Turbo,” a spokesman for VW group’s works council told Reuters late on Saturday.

    “Everyone who can read the VW half-year results should know: We don’t need money and our subsidiaries are not up for grabs by bargain hunters.”

    Six-month operating profit at VW group jumped 19 percent to 8.9 billion euros, the carmaker said on Thursday, as cost cuts and R&D improvements at the core namesake brand earned VW a respite from the billions of euros in costs for fines, vehicle refits and compensation related to its dieselgate scandal.

    One source at VW said that given strong union opposition, VW is now reviewing the plan to sell Ducati as it doesn’t want to risk working with labour on implementing a hard-fought turnaround plan for the VW brand, seen as crucial by investors.

    Though Ducati is owned by VW’s luxury brand Audi, the VW group’s supervisory board has to approve a possible sale. Audi declined comment.

    The billionaire Porsche and Piech families, controlling 52 percent of voting shares in VW and holding four supervisory board seats, do not support selling Ducati or Renk, two other sources at VW group said.

    A spokesman for Porsche SE, the family’s holding company, declined comment.

    With 20 percent of voting rights in VW, Lower Saxony, where the carmaker employs more than 100,000 staff at six plants, can veto decisions such as factory closures.

    Holding two board seats, Lower Saxony traditionally teams up with VW’s worker representatives for the sake of protecting jobs and projects. A spokeswoman declined comment when asked whether the state government would back a sale of Ducati or other assets.

    “The management board has not even asked the supervisory board of Volkswagen, where such sales have to be ratified, for its approval,” the works council spokesman said. “Therefore we advise all supposedly interested parties: Save your time to check any books. A sale will not happen.”

    The five bidders shortlisted to buy Ducati will be given access to the company’s books after the summer, the first source said.

    With most of Audi’s executives away for a three-week summer break, a decision on whether management will stick to the planned sale will not be taken until September or October, a source close to Audi said. Audi declined comment.

    VW finance chief Frank Witter, speaking on Thursday’s earnings call, declined any comment on “speculation” surrounding VW’s asset sales plans.

  • Le Pan at Kowloon Bay introduces French fine dining

    Le Pan at Kowloon Bay introduces French fine dining

    A new fine-dining experience has arrived in Hong Kong with the opening of French restaurant Le Pan at Kowloon Bay.

    It is hidden away behind 1920s-style doors in the Goldin Financial Global Centre, a commercial building. Covering 10,000 sqft (930 sqm), the restaurant has a white theme – as well as the tablecloths, there is white marble plus white leather seating. Four private dining areas can booked for private events, and guests can book a seat at the chef’s table where they can watch head chef Edward Voon at work.

    Once you are seated, the attentive staff makes sure you want for nothing. Home-baked bread in a range of styles is offered still warm from the oven, before canapes arrive.

    Le Pan’s offering changes on a seasonal basis and it serves a selection of tasting menus running up to five courses. Dishes include Kaluga Queen Hybrid caviar with sea urchin, botan shrimps and crustacean jelly; bouillabaisse with stewed fish tortellini; and crispy-skin Kuhlbarra barramundi with herbs, braised fennel and beurre blanc.

    Each dish is introduced by the servers, even with eating suggestions.

  • Billabong shares dive on omni write-off

    Billabong shares dive on omni write-off

    Shares in Billabong have skidded as the struggling surfwear retailer said it will take an $11.7 million hit after terminating the service provider engaged to integrate its wholesale, retail stores, e-commerce and social media platforms on line.

    Billabong shares finished six cents, or 7.3 per cent, lower at 76 cents on Friday.

    The retailer said despite the impairment it remains committed to rolling out its “omnichannel solution” – part of a strategic turnaround implemented over the past 12 to 18 months.

    The company says it expects to do so close to its original budget estimate and anticipates the first of its new e-commerce websites, Surf Dive ‘n’ Ski, will be launched before the end of 2017.

    In February the retailer downgraded its full-year earnings guidance after its first-half loss widened to $16.1 million.

    The Gold Coast-based retailer said at the time it expected full-year earnings before interest, tax, depreciation and amortisation (EBITDA) of between $52 million and $57 million, down from the previous forecast of $60 million to $65 million.

    The company had flagged that full-year earnings would rely heavily on the second-half, when the Americas business is expected to pick up significantly.

    Billabong will release its full-year results on August 30.

    In June, the surfwear brand appointed ex-Nordstrom executive Jim Howell as its chief financial officer, replacing Peter Myers who has served in the role since January 2013.

    Billabong also recently sold off the Tigerlily brand from its portfolio, as part of trimming the business and paying down debt.

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  • American Eagle Outfitters exits UK

    American Eagle Outfitters exits UK

    After three years trying to crack the UK market, US fashion retailer American Eagle Outfitters is heading home.

    The Daily Telegraph reports online that stores at Bluewater shopping centre in Kent, Westfield Stratford and Westfield Shepherd’s Bush have all ceased trading.

    The first American Eagle Outfitters UK store opened in November 2014 and at the time the brand said it planned as many as 30 stores across the region. But the brand has failed to gain any brand traction with London’s 15- to 25-year-olds.

    Confirming the exit, an American Eagle Outfitters spokesperson said UK customers would still be able to buy its products online.

    Based in Pittsburgh, the company has about 950 stores in the US.

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  • Audi targets 10 billion euros in cost cuts to fund electric-car push

    Audi targets 10 billion euros in cost cuts to fund electric-car push

    Audi aims to cut costs by 10 billion euros by 2022 to help fund a shift to electric cars as it seeks to move on after the emissions scandal, sources close to the carmaker said.

    Audi, Volkswagen’s main profit driver, plans to bring five new all-electric models to market in coming years, starting with the e-tron sport-utility vehicle (SUV) to be assembled from 2018 in Brussels.

    Despite run-up costs for its electric-car programme, the luxury automaker wants to keep its operating profit margin at 8 percent a year at least, two sources close to Audi said. Its profit margin in the first half of this year was 8.9 percent.

    The bulk of the 10 billion cost savings would come from cutting research and development costs, the sources said.

    A spokesman at Audi’s headquarters in Ingolstadt, Germany, declined comment. German business daily Handelsblatt reported the cost-savings target and profitability plans earlier on Sunday.

    Audi also aims to free up funds for investments in zero-emission technology by developing a new production platform with Porsche, allowing both VW premium brands to save money by sharing components and modules.

    Audi is grappling with car recalls, prosecutor investigations and persistent criticism from unions and managers over the diesel emissions scandal and its strategy post-dieselgate.

    Sources told Reuters on Friday that four of the brand’s seven top executives are earmarked for dismissal in the near future. On Sunday, sources said the dismissals were discussed by supervisory board members last Thursday but a formal decision has yet to be taken.

  • Samsung beats Apple in brand health rankings

    Samsung beats Apple in brand health rankings

    Google, YouTube and Facebook have topped a first-ever global brand health ranking by YouGov, an online market research firm based in the UK.

    In a list dominated by online brands, Samsung has come in fourth, messaging service WhatsApp is in fifth position, and Apple’s iPhone is in sixth spot. Other brands in the top 10 ranking include brands such as Amazon, Toyota, Adidas and Colgate.

    The rankings are based on YouGov BrandIndex data from across the world. BrandIndex operates in 32 countries across the globe, including markets in North America, South America, Europe, Africa, Asia and Australia.

    The ranking takes into account consumers’ perceptions of a brand’s quality, value, impression, satisfaction, reputation and whether consumers would recommend the brand to others. The rankings list shows the brands with the highest average Index scores between July 1, 2016 and June 30, 2017.

    “Tech brands dominate this global list and with good reason. By their very nature the likes of Google, YouTube and Facebook are open and accessible in most places on earth to anyone with online access,” YouGov CEO for data products Ted Marzilli said.

    “The presence of Samsung and Apple iPhone demonstrate are a sign that our mobile devices have become the remote controls for our lives. All of the brands in the ranking are mainstream with broad utility at their core – and this is as true of the likes of Toyota and Colgate as it is for WhatsApp and Samsung.”

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  • Huawei consumer revenue grows 36.2% in 1H17

    Huawei consumer revenue grows 36.2% in 1H17

    Huawei has reported a 36.2% increase in revenue from its consumer business for the first six months of the year on the back of strong smartphone sales.

    Sales revenue increased to 105.4 billion yuan, with smartphone shipments up 20.6% year-on-year to 73 million. IDC estimates that Huawei’s share of the global smartphone market grew to 9.8% during the first quarter.

    In Greater China meanwhile, Huawei grew its shipments by 24% year-on-year to claim 22.1% of the global market, while Canalys recently estimated that the company maintained its lead in the market for the second straight quarter in Q2.

    Huawei also reported growth in APAC markets including Thailand, Malaysia, Japan and South Korea for the period.

    Huawei is accelerating its sales strategy in light of its growing brand presence, revealing plans to increase its global retail network to 56,000 stores worldwide by the end of the year, up from 35,000 in May 2016.

    ABI Research director David McQueen said Huawei’s results “document a company that is outperforming the smartphone market, showing solid growth in shipments and healthy development in its revenues.”

    He said Huawei aims to break 10% global market share for the full year, consolidating its position as the world’s third largest smartphone vendor after Samsung and Apple.

    “The company has managed to achieve this continued growth through a focus on providing advanced, innovative products at the high-end, with its P and Mate series of smartphones to the fore with shipments for the two growing 100% year-on-year,” McQueen said.

    “This high-end mix in its portfolio has also helped drive up average selling prices by 28% year-on-year, and the provision of a premium design and experience has worked to strengthen its brand image and awareness in the consumer market. It is this premium brand image that the company needs to foster as a central tenant if it is to continue with this success as it allows it to command higher prices and create much needed profit in a highly competitive marketplace.”

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  • Fall in Chinese tourists drags retail-sector sales in Taiwan

    Fall in Chinese tourists drags retail-sector sales in Taiwan

    Revenue generated by Taiwan‘s retail sector fell in the first half due to a fall in the number of Chinese visitors, who tend to buy expensive home appliances or luxury goods, the Ministry of Economic Affairs said.

    The number of Chinese visitors in the past six months fell about 40 percent from the same period last year, which had an adverse effect on local private consumption and retail sales, Department of Statistics Deputy Director-General Wang Shu-chuan said.

    Although the total number of foreign arrivals only fell 5.7 percent year-on-year, meaning that an increase in travelers from other countries offset the decline, they failed to make up for the reduced consumption generated by Chinese visitors, Wang said.

    Retail sales for the first half fell 0.4 percent year-on-year to about NT$2 trillion (US$65.88 billion), the ministry said.

    The local home appliances business sustained the most visible impact, with sales falling by NT$11.9 billion year-on-year for the six-month period, the ministry said.

    Meanwhile, sales generated by the local wholesale sector rose 5.7 percent from a year earlier to NT$851.9 billion last month on the back of strong demand for machinery, communications chips, memory chips and chemical materials, at a time when the global economy has been on the road to recovery, the ministry said.

    In the first half, sales in the wholesale sector rose 5.1 percent from a year earlier to NT$4.79 trillion, while revenue of the local food/beverage sector grew 2.7 percent to NT$224.9 billion.

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  • Do Local Merchants Stand A Chance In E-Commerce Wars With Amazon?

    Do Local Merchants Stand A Chance In E-Commerce Wars With Amazon?

    Grocery stores around the country – and all independent brick-and-mortar retailers, for that matter – uttered a collective gulp the day Amazon announced it had acquired Whole Foods for a whopping $13.7 billion dollars.
    Amazon, the Goliath of online shopping and the behemoth responsible for shuttering the doors of retail brick-and-mortar establishments, is getting into the grocery game.

    In the same way bookstores and clothing outlets have been asking themselves how they’re going to survive, now the question is, what does this mean for small, independent grocery stores? And more importantly, how are local companies going to be able to compete with the marketing and distribution channels Amazon has in place?
    It’s no secret that commerce is increasingly living in the digital domain, with rising shares of retail revenue taking place online over time. Businesses have had to fight tooth and nail to be competitive, stand above the crowd, and be successful.

    They need to have an online platform, social media visibility, e-commerce and multi-channel experiences in place in order to thrive in today’s market.
    Some try to build their own internal systems, and others rely on third-party software to integrate with their POS system and handle on-demand customer ordering.

    While many people seem to believe that brick-and-mortar retail will soon be a thing of the past, tech giants like Amazon are proving that is far from true.

    Physical locations will still be part of the business landscape – they just might operate with different purposes.

    For Amazon, Whole Foods won’t just be a stand-alone grocer. It will likely be a powerful distribution medium for other parts of their business, such as AmazonFresh

  • Fiorucci names new design directors

    Fiorucci names new design directors

    Fiorucci has hired Annabelle Lacuna and Max Hörmann, who worked together for four years at Kenzo, to head up its design team, as the Italian brand continues to plans to reboot as a successful fashion brand.

    The Italian label, which rose to fame in the 1970s and 1980s for its leopard print designs and tight jeans, said it has also poached a string of top executives from luxury’s LVMH, Burberry and Michael Kors.

    The first is Priya Downes, previously from Burberry, Chanel and Tommy Hilfiger, wo has been named head of merchandising.

    Next, having worked at Pringle of Scotland, Kilgour and Jonathan Saunders, Antonio Guerra has been given role the product development manager.

    Moreover, John Spriggs, is Fiorucci’s director of wholesale – Spriggs was formerly director of sales for accessories at Michael Kors, while the new finance and operations director Frankie Herbert had previously spent six years at LVMH.

    All four will report to co-chief executive officers Stephen and Janie Schaffer – founders of Britain’s Knickerbox retail in the Eighties — who bought Fiorucci in 2015.

    The news comes as Fiorucci plans to open a new flagship store in London’s Soho in October this year, with another store due for New York in 2018.  Asia stores could be on the cards, but nothing has been confirmed.

    The brand was founded by Elio Fiorucci in Milan in 1967. Today, it boasts several major stockists including Barneys New York and Opening Ceremony, 10 Corso Como in Milan and Selfridges in London. It is also operating a pop-up online shop at Fiorucci.com.

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  • Starbucks to buy out Chinese venture in its biggest deal yet

    Starbucks to buy out Chinese venture in its biggest deal yet

    Starbucks is buying the rest of its East China joint venture in a $1.3 billion transaction, marking the biggest deal ever for a company that sees China as a huge growth opportunity.

    The Seattle-based coffee chain will acquire the remaining 50 percent of the business from partners President Chain Store Corp. and Uni-President Enterprises Corp. Starbucks also is divesting its 50 percent stake in a separate joint venture in Taiwan, according to a statement on July 27th.

    The move underscores Starbucks’ bet that China will be one of the company’s top sales drivers in coming years. It’s wagering that the nation’s growing middle class and urbanization will give it a huge population of potential coffee drinkers to tap.

    The deal mirrors the company’s strategy in Japan, where Starbucks entered the country with a joint venture, spent time learning the local market and then brought the business back in house, said Jennifer Bartashus, an analyst at Bloomberg Intelligence. In 2014, Starbucks agreed to buy out its Japanese joint venture with Sazaby League and other partners for about $913.5 million.

    “With the level of expectations they have for China, it isn’t really a surprise that they want to exert as much control over the stores as possible,” Bartashus said.

    Starbucks shares gained as much as 1.9 percent at $59.03 in New York on July 27th. The stock had climbed 4.4 percent this year through the close of trading on July 26th.

    Expansion Plan

    Starbucks plans to operate 5,000 cafes in mainland China by 2021, a goal it reaffirmed on July 27th. The company currently has 2,800 locations there.

    The deal gives Starbucks 100 percent ownership of about 1,300 cafes in Shanghai and the Jiangsu and Zhejiang provinces. In the Taiwanese transaction, its partners will acquire Starbucks operations in the territory for about $175 million. The Starbucks business there, which was founded in 1997, has about 410 cafes.

    “Unifying the Starbucks business under a full company-operated structure in China reinforces our commitment to the market and is a firm demonstration of our confidence in the current local leadership team,” Chief Executive Officer Kevin Johnson said in the statement.

    The status of Taiwan is a sensitive political issue in China. The Chinese government considers Taiwan a renegade province. The decision to sell the business there was about allowing its partners to “maximize the opportunities” for the brand in Taiwan, according to a spokeswoman for Starbucks.

    Dunkin’ Forays

    Dunkin’ Donuts Inc., a major Starbucks rival in the U.S., has a much smaller presence in China. The chain failed in two previous attempts to crack the Chinese market, but is now working with two franchisees there and has 34 stores, including 16 in Beijing. Dunkin plans to grow to 1,400 location in the world’s most populous country over the next 20 years.

    Chinese consumers still drink a relatively small amount of coffee, but the category is growing fast and could eventually surpass tea, according to Dunkin’ CEO Nigel Travis.

    China is the fastest-growing market outside the U.S. for Starbucks. With full control of the local operations, Starbucks can enhance the coffee and in-store experience, said its China CEO, Belinda Wong. It also plans to rely more on technology in the country. Starbucks’ mobile-ordering app has been key to locking in customers in the U.S.

    The deal is another sign that Starbucks views China as key to its future and can’t let execution slip there, said Jack Russo, an analyst at Edward Jones.

    “Asia is incredibly important for them — there’s no mistaking that,” he said.

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  • Boots to open the largest flagship store in Myeongdong

    Boots to open the largest flagship store in Myeongdong

    E-Mart opened its booth flagship store in Shinhan Financial Center building in Myeongdong on July 28. Boots is the UK’s no.1 drugstore brand, with more than 13,300 stores in 11 countries around the world.

    The booth store is the largest of domestic H & B stores with a size of 1284 square meters (about 388 pyeong). The store consists of four floors ranging from floors 1 to 4 on the ground. Currently, only three floors are partially open.

    The first to third floors are operated as H & B sales spaces. The 4th floor plans to create a K-pop studio and a cafe. Considering the characteristics of Myeong-dong commercial area, many foreign tourists will be able to buy products related to Korean entertainers and it will be opened at the end of next month.

    The first floor is composed of color cosmetics brands such as Mac, Shuuemura, and Benefit. On the second floor are hair and body care products such as Aveda and Renefurterer, and on the third floor are skin and health care brands such as Biotherm, Darphin and Dermalogica.

    Each floor sells its own brand of boots (PL) products for each Kategori such as No. 7 and Soap & Glory. This large boots store was located on where is only 50 meter away from the Olive Young Myeongdong store, which is the largest store.

    In Myeong-dong, where there is much demand for tourists, it is anticipated that Korean version of H & B Olive Young and Boots, with high recognition by foreigners will fight a fierce battle. Especially, it is easy to compare merchandising and price while shops are located side by side.

    Olive Young is the number one player in the market with annual sales of KRW 1.127 trillion as of last year. There are more than 800 stores nationwide. Boots opened Starfield Hanam in May, and it also introduced a small store at express terminal.

    The number of stores nationwide is three including Myungdong-dong, which opened this time.

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