Retail News CRM

Tag: asia

  • Chinese digital payments reach nearly $2.9tr in 2016

    Chinese digital payments reach nearly $2.9tr in 2016

    Alipay and WeChat Pay enabled $2.9 trillion in Chinese digital payments in 2016, up twenty-fold increase in the past four years, according to a new UN study.

    The data show that digital payments, using existing platforms and networks, provide access to a wider range of digital financial services, expanding financial inclusion and economic opportunity throughout China and neighboring countries.

    In India, both Ant Financial and Tencent have bought into the Indian mobile payments market, which is enjoying rapid growth under new regulation.

    Ant Financial and Alibaba invested up to $900 million in PayTM, as well as sharing staff and technical expertise. The result: PayTM has grown from 5 million to around 200 million users in just the last few years.

    Indonesia was the fastest-growing m-commerce market in the world in 2016, the report showsexpanding 155% from January 2016 to January 2017.

    Some of this growth may be due to the release in 2015 of BBM Pay’s Instant Mobile Payments. The popular BBM chat app has over 55 million users in Indonesia and continues to develop.

    The new report by the UN-based Better Than Cash Alliance contains key lessons to help other countries include more people in the economy by transitioning from cash to digital payments.

    This shift could increase GDP across developing economies by 6% by 2025, adding US$3.7 trillion and 95 million jobs, according to a McKinsey Global Institute report.

    “Social networks and e-commerce platforms are growing in every economy, whether large or small,” said Ruth Goodwin-Groen, Managing Director at the Better Than Cash Alliance.

    “In China digital payments are thriving from these channels, bringing millions of people into the economy. This matters because we know that when people – especially women – gain access to financial services, they are able to save, build assets, weather financial shocks, and have a better chance to improve their lives.”

  • Peugeot gears up with nuTonomy for self-driving car test

    Peugeot gears up with nuTonomy for self-driving car test

    French carmaker Peugeot is partnering with Boston, Massachusetts-based tech firm nuTonomy to test self-driving cars in Singapore. NuTonomy’s software, sensors and computing platforms will be installed in Peugeot 3008 models as part of plans to develop the technology needed for large fleets of autonomous cars, PSA and nuTonomy said in a statement on Wednesday.

    The latest PSA Group project seeks to work on “level 5” autonomous capable vehicles, which require no driver input, and will allow both companies to study how an “on-demand autonomous vehicle mobility service” performs, they said.

    The combination is the latest between technology and automotive companies after Daimler, which owns Mercedes-Benz, last month unveiled an autonomous cars development partnership with supplier Robert Bosch, while BMW has announced an alliance with chip maker Intel and Israel’s Mobileye.

    Autonomous driving in urban areas requires a more radical approach to vehicle design, particularly for software and sensors, to help a car navigate inner city obstacles, said Anne Laliron, Head of the Business Lab at PSA Group.

    “That is the reason we jump on the opportunity to work with nuTonomy,” Laliron told.

    PSA Group will use the project to learn about what components make sense, and which suppliers are available, Laliron said.

    Following the initial phase of this partnership, the companies will consider expanding their on-road AV testing initiative to other major cities.

    nuTonomy, a software company founded by Massachusetts Institute of Technology (MIT) academics and McKinsey management consultants was the first to begin on the road testing of driverless taxi services in Singapore last year.

    It raised $16 million last May in a funding round led by Highland Capital Partners and has backing from Singapore government authorities and Samsung Ventures, among others.

    Lees ook:

  • Cisco to buy Viptela for $610m

    Cisco to buy Viptela for $610m

    Cisco’s has announced plans to acquire Viptela and combine the San-Jose-based vendor’s SD-WAN technology with its own efforts, moving further toward a software model that produces more reliably recurring revenue.

    SD-WAN is emerging as this year’s big networking, taking the fabric of software defined networking and turning it into an enterprise-focused product.

    SD-WANs promise to redefine the way enterprises build and operate their wide area networks, making it easier to to hook up branch locations, data centers, and company headquarters with flexible infrastructure.

    Cisco will be paying $610 million in cash and assumed equity awards for the acquisition. Viptela’s talent will join the company’s Enterprise Routing team, working with them to enhance Cisco’s SD-WAN technology with their own.  The deal is expected to close in the second half of 2017.

  • More AirAsia flights take off from secondary hub

    More AirAsia flights take off from secondary hub

    AirAsia has unveiled more domestic routes from its secondary hubs in Malaysia as well as several new connections to China and India launching this year.

    The Malaysian LCC commenced a Kuala Lumpur-Bhubaneswar (India) flight on April 26, the first international airline to fly into the east Indian city and capital of Odisha, which Malaysian agents expect to spur FIT demand.

    “Prior to the opening of this route, travellers from Bhubaneswar and surrounding areas would have to take flights from Chennai, Mumbai or Kolkata to travel to Malaysia,” A Aruldas, managing director of Tourland Travel, said. “The new flights are also timely with Malaysia’s relaxation of the visa facility for Indian tourists.”

    Come August 9, AirAsia will begin a thrice-weekly service connecting Langkawi to Shenzhen for the first time and four-times weekly flights between Langkawi and Kuching that same day.

    Other new domestic routes include the inaugural Johor Bahru-Langkawi service launched since April 28, in addition to the upcoming Johor Bahru-Kuala Terengganu flights commencing June 22.

  • Chow Tai Fook to open its first branded boutique in the US

    Chow Tai Fook to open its first branded boutique in the US

    With Hong Kong-listed jeweler Chow Tai Fook recently laying claim to the world’s most expensive cut diamond ever—sold at a Sotheby’s auction on April 4—the increasingly iconic Jewellery Group this week announced the further expansion of its global footprint, with the opening of its second American retail outlet, and the company’s first own-branded boutique in the United States.

    Chow Tai Fook, who last November opened its first stateside store in Macy’s NYC, revealed on Monday that the second store will be opening in the heart of Honolulu, Hawaii, situated at T Galleria by DFS. The LVMH-owned duty-free retailer rebranded its worldwide T Galleria stores back in 2013, with the hope of attracting China’s increasingly sophisticated millennial consumers—and chose its Hawaii location in which to announce the renaming of its non-airport Galleria locations. Four years on, and the duty-free mall will next month be the location for the opening of Chow Tai Fook’s 970-square-foot-store, looking to capture the attention of wealthy travelers visiting the surrounding luxury resorts and beaches.

    With Chinese tourists recently reported as the only group of travelers for whom Donald Trump’s presidency has made it more likely than ever for them to visit the United States, the current political climate encourages luxury outlets to increasingly target Chinese consumers from within America. The Chow Tai Fook Jewellery Group currently boasts an extensive network consisting of over 2,300 retail points globally, with more than 2,000 jewelry and luxury watch outlets in Greater China.

    According to company Managing Director, Kent Wong, Chow Tai Fook will be “looking to capture the vast growth potential of leisure spending in the Hawaii market” and take advantage of the Hawaiian capital of Honolulu as both a popular holiday location, and a frequent luxury honeymoon and wedding destination. Aiming to entice consumers from both home and abroad with the opening of their first ever own-branded boutique in the United States, the agreement signed with the world’s leading luxury travel retailer promises the support of T Galleria’s 50 years of experience in the Hawaiian market.

    The news, however, comes after reports earlier this year of Chow Tai Fook choosing to target younger consumers within China, opening outlets stocking jewelry at about a third of the price of that sold at the company’s flagship Chow Tai Fook-branded stores. With jewelry at these outlets sold at an average price of 2,000 RMB ($291), Chow Tai Fook seem to be turning their attention overseas to the more affluent Chinese traveler. The Chow Tai Fook boutique in Haiwaii will offer a range of luxury products including gem-set jewelry, fixed-price gold products and platinum and karat gold jewelry, alongside exclusive collections such as Oriental Blessings and Jardin Magique. The store will also stock exclusive wedding jewelry.

    After the announcement of the store this Monday, there won’t be long to wait before the Jewellery Group can begin to determine whether its changing marketing strategy will pay off—Chow Tai Fook’s Hawaiian boutique will open this May at T Galleria, Honolulu.

    Lees ook:

  • Axiata taps Thaicom satellite to connect remote areas of Indonesia

    Axiata taps Thaicom satellite to connect remote areas of Indonesia

    The deal allows Axiata Business Services to purchase the remaining capacity on the IPSTAR-1 broadband satellite so that its operating company, PT XL Axiata Tbk (XL), can deliver more than one gigabit per second of High Throughput Satellite (HTS) capacity for broadband services in Indonesia.

    Axiata Business Services will use up to seven Ku-band shaped and spot beams on IPSTAR-1 located at 119.5 degree east to provide services including broadband access directly to residential and enterprise premises.

    “We are leveraging Thaicom’s capabilities in Asia to grow our enterprise business quickly and flexibly while providing reliable broadband services to all potential customers, regardless of location,” said Axiata group chief business operations officer Asri Hassan Sabri.

    “Where terrestrial-based connectivity is limited or unavailable, HTS connectivity serves as an enabler to unlock the digital ecosystem for new market opportunities,” he said. “As the world’s first-ever HTS, launched in 2005, Thaicom’s IPSTAR helps us connect users in remote and underserved areas of Indonesia cost-effectively. We are confident that the partnership will enable us to continue to grow our business faster without infrastructure limitations.”

    XL chief executive Dian Siswarini noted that many areas and islands in Indonesia are still without Internet access.

    “We believe the availability of HTS will help us to cover these unserved areas with considerable economic potential. On top of that, it will enable us to support the local community’s economic growth and the Indonesian government’s vision to accelerate the national development of digital economy across Indonesia.”

    Thaicom chief commercial officer Patompob Suwansiri thanked Axiata for its “trust” in inking the deal.

    “We are committed to working with leading mobile-network operators throughout Asia-Pacific to facilitate the growth of wireless broadband and other digital services in remote and underserved areas.”

  • Indonesia records inflation of 0.09% in April

    Indonesia records inflation of 0.09% in April

    After seeing deflation a month earlier owing to the harvest season, the country recorded monthly inflation of 0.09 percent in April on account of increases in the prices of most commodities.

    Inflation in April brought annual inflation to 4.17 percent year-on-year (yoy), the Central Statistics Agency (BPS) announced on Tuesday.

    “I think inflation at 0.09 percent in April remained in line with what the government is trying to manage because there will be bigger challenges in May and June,” said BPS head Suhariyanto in a press conference.

    The agency warned prices of food commodities could increase in May due to rising demand during Ramadhan.

    In June, Suhariyanto said, prices would rise as an effect of the second hike of electricity rates for 900 volt-ampere (VA) capacity in May.

    “The electricity rate increase will occur in May, but the impact will only be seen in June because most customers of 900 VA are post-paid type rather than prepaid,” he said.

    The price increases in April occurred in administered prices, particularly electricity and fuel, as well as in a number of food commodities such as garlic, chicken, tomato and dogfruit.

    Meanwhile, price decreases in April were seen in major food commodities such as red and green chili, rice, sugar, beef and chicken eggs. (bbn)

    Lees ook:

    Lees ook:

    Lees ook:

  • Cebu Pacific issues travel advisory related to Asean summit

    Cebu Pacific issues travel advisory related to Asean summit

    In light of the 30th Asean Summit and Related Meetings which will be held in Manila from April 26 to 29, 2017, Cebu Pacific and Cebgo reminded all passengers flying out on these dates to plan their routes going to the Ninoy Aquino International Airport (NAIA). The carrier issued the advisory as several roads in Pasay City, especially those leading to NAIA Terminals 3 and 4, will be closed.

    Aside from this, the period from April 29 to May 1, 2017 is also Labor Day weekend. Malacañang, by virtue of Memorandum Circular 18 issued on April 21, suspended classes at all levels and work in the government and private sector on April 28, Friday, in line with the Philippines’ hosting of the Asean Summit. Passengers traveling to and from Manila from April 28-30, 2017 who wish to change their flight schedules may rebook their flights for free within 30 days. Guests flying out this weekend are advised to be at the airport early to process pre-departure requirements and avoid long lines at the check-in, security and immigration counters. Cebu Pacific’s domestic check-in counters are open three hours before the scheduled time of departure and four hours for international flights.

    All check-in counters will close 45 minutes before the scheduled time of flights, except those exiting the Middle East (one hour) and Shanghai (50 minutes). For international flights, web check-in is available from seven days up to four hours before scheduled flight departure. Those taking domestic flights can do web check-in up to one hour before their scheduled departure.

    Self Check-in Kiosks. Passengers at NAIA Terminals 3 and 4 and selected domestic airports can use these kiosks to check-in their flights eight hours up to one hour before the scheduled flight departure. Domestic web or mobile check-in guests with check-in luggage can drop these off at the bag drop counter at least 45 minutes before the flight, except those exiting the Middle East (one hour) and Shanghai (50 minutes).

    International web or mobile check-in guests still need to show up at check-in or bag drop counter at least one hour before the flight to present valid travel documents. For more information on the Asean 2017 calendar of events, traffic advisories and rerouting, visit https://www.asean2017.ph, or at the official Facebook page “Asean 2017” of the Asean 2017 Chairmanship in the Philippines.

  • Hong Kong Investor Expresses Investment Commitment to Jokowi

    Hong Kong Investor Expresses Investment Commitment to Jokowi

    During a meeting with President Joko Widodo or Jokowi at Conrad Hotel in Hong Kong, CK Hutchison Holdings Limited owner Li Ka-Shing expressed investment commitment in Indonesia.

    “CK Hutchison Holdings Limited is one of the largest companies listed in the Hong Kong Stock Exchange,” Foreign Minister Retno Marsudi said in a press release on Monday, May 1, 2017.

    CK Hutchison Holdings Limited is one of the largest container terminal operators in the world with a total investment of US$10 billion. Retno explained that the company views Indonesia as a country with a huge potential. Therefore, Li Ka-Shing expressed his commitment to increasing the company’s investment in Indonesia.

    “A commitment to increasing investment in Indonesia has been made,” Retno added.

    During the meeting, President Jokowi also elaborated a number Indonesian government plans to improve the economic growth.

    “Indonesia’s economic reform was one of the topics raised by President Jokowi,” Retno said. “President Jokowi also explained Indonesia’s infrastructure development plans.”

    In addition to Retno, attending the meeting were Trade Minister Enggartiasto Lukita, Cabinet Secretary Pramono Anung, and Investment Coordinating Board head Thomas Lembong.

    Lees ook:

  • Healthy living tops Indian consumers’ list of goals and aspirations

    Healthy living tops Indian consumers’ list of goals and aspirations

    It seems the pursuit of a healthier lifestyle is a nationwide obsession in India as healthy living tops the list of consumers goals and aspirations. New research from global market intelligence agency Mintel reveals that nearly half (48%) of consumers in India aim to live a healthier lifestyle, followed by better time management (30%), improving relationships with family and friends (25%), and travelling (24%).

    Further down on the agenda, just 8% of consumers say they wish to get married in the next three years, rising to less than three in 10 (27%) of those who are still single. Meanwhile, just 5% of consumers say they’d like to have a child, making this the lowest priority on the list of consumer’s goals and aspirations.

    Close to three in four (72%) Indian consumers report increased happiness as their motivation for leading a healthy lifestyle, while over half say that they aim to live healthily in order to look better (56%) and to feel better (53%). Additionally, two in five (41%) say they aim to lead a healthy lifestyle in order to live longer, while just 10% wish to do so to manage their health conditions. Currently, over half (52%) of Indian adults say they eat a healthy diet as part of their healthy living habits.

    Ranjana Sundaresan, Senior Research Analyst at Mintel, said: “Many Indians believe leading a healthy lifestyle will have a knock-off effect on their personal happiness. There has been quite a bit of publicity regarding the rise in lifestyle diseases among Indians, and, thus, growing awareness of the importance of being healthy.”

    While healthy living tops the list of consumers’ aspirations, it seems few are taking steps towards living a healthier life. Just one in three (34%) say they are always trying new things to improve their health, while one in four (26%) say they research health concerns and 10% say they research or think about health a lot but rarely make changes. This opens up quite a bit of opportunity for companies to offer consumers convenient solutions that could encourage making that change.

    Research from Mintel indicates that the food industry has already taken steps to appeal to consumers changing demands. According to Mintel Global New Products Database (GNPD), “natural” was the second largest claim carried on food launches in India last year, behind “suitable for” claims, accounting for 28% of all food product launches in 2016, up from 22% in 2012.

    As a result between 2012 and 2016, India had the highest number of food product launches carrying a natural claim in Asia and was the fifth largest market for these launches globally, accounting for 6% of the world’s food launches labelled as ‘natural’.

    Indeed, while India is leading the charge with Asia’s natural food production, Mintel research reveals that one in five (19%) Indian consumers say they would like to see a wider variety of natural snacks. Furthermore, as many as half (47%) of those who snack think it is important for snacks to be healthy.

    And it seems that consumers in India are willing to pay more for healthier snack options as two in five (39%) Indians who snack are willing to pay extra for fruit or vegetable snacks, while one in four (25%) would pay more for snacks with added nutrition.

    “It is known worldwide that healthy and natural foods tend to be more expensive, and many think twice before making a purchase. However, powered by higher disposable income and increasing health consciousness, India’s growing middle-class urban population is now more willing to pay the additional cost for healthier options.” Ranjana concludes. Ranjana concludes.

    Lees ook:

    Lees ook:

  • South Korean Amore Pacific’s profit suffers from extended domestic slump

    South Korean Amore Pacific’s profit suffers from extended domestic slump

    Amore Pacific‘s first-quarter net profit shrank 15 percent from a year earlier, due largely to a protracted slump in the domestic market amid a rapid drop in Chinese tourists.

    Its net income came to 223.5 billion won (US$197.1 million) in the January-March period, compared with 262.9 billion won the previous year. The operating profit for January-March also slipped 6.2 percent on-year to 316.8 billion won, but sales gained 5.7 percent to 1.56 trillion won in the cited period from a year earlier.

    The company cited a drawn-out slump in its domestic sales, along with a decrease in inbound tourist inflow from China, which followed the ban on trip sales to South Korea by its authorities from mid-March as the main factors that weigh on the profit amid a slow economy. An increase in sales in other foreign markets, however, helped cushion a fall in sales stemming from Chinese consumers.

    South Korea has seen its tally on Chinese tourists plunge by nearly 40 percent since March 15, when travel agencies in China stopped selling tours to Korea on the behest of its government. Such a move by Beijing is seen as part of a string of apparent retaliatory measures against Seoul for the decision to station a U.S. anti-missile system, known as THAAD, on its soil.

    Its operating income from domestic sales, which include the revenue from duty-free stores, dropped 13 percent on-year to 234 billion won as of end-March. Market analysts predicted earlier that AmorePacific may suffer a blow from its mainstay duty-free sales as a result of China’s trip ban. Chinese tourists accounted for half of the foreigners who came into the country last year.

    In contrast, its overseas business posted an operating income of 88 billion won in the first quarter, up 11 percent from a year earlier, with the sales advancing 17 percent to 447 billion won over the cited period. AmorePacific will strive to improve the profitability by realigning the brand portfolio and sales channels in different markets, citing its European unit that logged a 7-percent on-year growth after it bolstered its fragrance lineup, drawing a contrast to the U.S. business which suffered a 16-percent decline in sales.

    The combined operating income of AmorePacific Group, which includes its smaller brands like Innisfree, Etude and other household products, reached 378.5 billion won in the first quarter, down 9.7 percent from a year ago. The sales on a consolidated basis also dropped 5.5 percent on-year to 1.75 trillion won.

  • Ikea gets approval to enter the Philippines

    Ikea gets approval to enter the Philippines

    The Philippine Board of Investments (BOI) has approved Ikea’s entry into the Philippines, following a bid from Ikano Ltd, the operator and franchise-rights owner of the Swedish furniture giant in Asia.

    The ready-to-assemble furniture and appliance maker first mentioned it had plans to enter the Philippines as early as 2013, but has so far failed to do so.

    According to BOI documents, Ikea has prequalified under the Retail Trade Liberalization Act of 2000 last November to open stores in the Asian market, as reported by Business Mirror.

    All foreign retailers must have a net worth of either $200 million or $50 million, depending on its classification as a foreign retailer under the Act, before retail trade can commence.

    The firm must also have five operating retail stores in other global locations or own at least one store worth $25 million, and a five-year track record in retailing, which Ikea does.

    Ikea is also said to be registering with the Securities and Exchange Commission for its capitalisation requirement.

    No further information on store locations or manufacturing has been revealed.

    Speaking at a media roundtable held on the occasion of the 70th year of Sweden-Philippine Diplomatic Relations in March, the Swedish ambassador to the Philippines, Harald Fries confirmed in March that Ikea will be setting up in the Philippines soon, bringing employment to the region.

    “There would be great opportunities for Filipinos to find work and there would be investment in putting up stores,” Fries said.

    “I won’t be surprised that once they have set their camp here, they’ll be looking for local manufacturing. I think that would be wonderful and interesting for the Philippines,” Fries added.

    Launching in 1943, Ikea — Ingvar Kamprad Elmtaryd was founded by 17-year-old Swede Ingvar Kamprad.

    Ikano owns and operates home furnishing stores in South East Asia and under the franchise rights from the Swedish firm IKEA Systems BV. The company was incorporated in 1980 and is based in Singapore.

    The BOI is an attached agency of Department of Trade and Industry (DTI). It is the lead government agency responsible for the promotion of investments in the Philippines.

    Lees ook:

    Lees ook:

  • 25 cellcos test 5G in Q1, says GSA

    25 cellcos test 5G in Q1, says GSA

    The GSA (Global mobile Suppliers Association) has said that in the first quarter alone at least 25 operators from 15 countries have demonstrated 5G technologies, or announced 5G tests, or trials.

    And 18 operators are currently committed to the implementation of services based on pre-standards 5G technology by or before 2019, says the GSA quarterly “Evolution from LTE to 5G” report.

    Although the GSA does not name all the specific pre-5G operators within the report, it does mention Etisalat, Telia Sonera, TIM and Verizon as four examples.

    A further 26 operators are trialling, deploying or planning LTE-Advanced Pro networks exhibiting multiple Rel-13 features such as those related to carrier aggregation, modulation scheme, MIMO, latency and MCPTT (mission-critical push-to-talk).

    An important milestone was reached in March 2017 when the 3GPP agreed on an intermediate target for early completion of Non-Standalone (NSA) 5G NR mode for enhanced mobile broadband. NSA mode anchors connections in 3G, using 5G NR carriers to augment data rates and reduce latency where needed. It was agreed to work towards finalization of the NSA standard by March 2018.

    At the same time, the group said it was still committed to completing the standard for Standalone (SA) 5G NR mode by September 2018. In February 2017, a large group of operators and vendors had lent their public support to this new approach, expressing the view that it will enable standards-based field trials to begin in 2019.

    Lees ook:

    Lees ook:

  • Lotte refashions outlet to target families and kids

    Lotte refashions outlet to target families and kids

    The renovated branch of Lotte Premium Outlets in this suburban city about 30 miles south of Seoul looks more like an amusement park than a shopping mall for bargain hunting.

    At its Incheon outlet location, Lotte has opened a three-story complex catering to families with children. There are cafes with ball pits and slides, job experience zones where kids can pretend to be doctors and firefighters, and a large Toys ”R” Us store that anchors it all. The Incheon branch is not just for shopping but also for outdoor activities for families.

    Since opening the location in 2013, Lotte found that 75 percent of visitors were in their 30s and 40s. That’s 6 percentage points higher than the share of people who visit other outlet branches outside Seoul. The company figured that more shops and facilities for family visitors, especially kids, be better for customers.

    Another factor was the growing popularity of children’s products in Korea. Between 2012 and 2016, the industry’s revenue expanded from 27 trillion won (US$24 billion) to 39 trillion won. A good portion of the outlet’s new building is dedicated to play. On the third floor, a job experience zone lets kids experience diverse occupations, from veterinarian to firefighter and even urban planner. There is a fee – 22,000 won for kids between 5 and 13 and an extra 4,000 won for an accompanying adult – but there is no limit on time.

    In another play space, called Doctor Balance, children can test their physical strength, including muscle endurance and responsiveness, on playground sets that resemble gym equipment. Next to the job experience zone is a Toys “R” Us. Lotte is the Korean operator of the U.S.-based toy store, but so far, it’s only installed stores in its supermarket chain Lotte Mart.

    The location in the Incheon outlet is the first time Lotte is running a Toys “R” Us outside the mart. An outlet spokesman said the toy store will have about 6,000 products. The building’s second floor has more shopping areas, but even they’re dedicated to kids. Outdoor brands Nepa and Blackyak, for instance, are selling swimsuits and backpacks for children. Out of 47 brands in the new space, 32 are specifically kids’ brands.

    There’s something for the parents, too. Various fast fashion brands, including Uniqlo and Topten, have set up shop, and automaker BMW has opened one of its Motorrad cafes where car aficionados can enjoy coffee while browsing BMW-themed apparel.

    Lotte Premium Outlets’ Incheon location holds the title of biggest outlet in Asia with a floor space of 53,000 square meters (570,000 square feet). An average 15,000 people visit daily, and it has generated 1.2 trillion won in revenue since opening. The company expects the new Fashion & Kids Mall building to boost the number of visitors by 20 percent.

    Lees ook:

  • The KAfe, Coffee Inn died young, but milk-tea chains thriving

    The KAfe, Coffee Inn died young, but milk-tea chains thriving

    The KAfe, Coffee Inn and Saigon Café recently shut down, following the closure of big foreign chains Gloria Jean’s and NYDC in recent months.

    Discouraged by the departure of such chains, many investors have postponed their plans to open new shops.

    Meanwhile, more and more milk tea chains have been established, especially in the north and in Hanoi. This has been a surprise to analysts, as the north is a conservative market where people prefer coffee to sweet drinks like milk tea.

    It is estimated that 170 milk tea brands have appeared in the market so far this year, both privately branded and franchised ones.

    Unlike the ‘milk tea waves’ in previous years, this year witnesses the mushrooming of  milk tea shops in non-Hanoi provinces, especially in Bac Ninh, Hai Phong, Quang Ninh and Phu Tho.

    In Bac Ninh alone, 30 milk tea brands turned up in the market in March and April with hundreds of shops, both small kiosks to larger shops (15-20 tables).

    Ding Tea is the best known brand with 100 sale points, followed by Toco Toco with 50 shops. Other brands have been present in the market for a long time, such as Chatime, ChaGo and ChaChaGo.

    Other milk tea chains, franchised ones, such as Bobapop, Citea Fund and Blackball, have been expanding rapidly in the capital city. GongCha and TraTien Huong originated from HCMC, and have also landed in Hanoi.

    Amy Truong, the owner of Toco Toco, said milk tea is suitable to different groups of consumers, from youth to office workers.

    Two brands, which have just appeared, have been developing at a fast pace – Goky and Mr.Good Tea. Goky has more than 100 shops after five months of operation, while it plans to open six more shops in May.

    Meanwhile, Mr. Good Tea has more than 20 sale points after half a year of making its debut, not only in Hanoi, but in many other northern provinces.

    Analysts said there were two reasons that had made milk tea become the favorite investment field.

    First, investors don’t have to spend too much money on shop decoration, setup, staff and formula. Second, milk tea is said to bring big profits. Sources said VND2,000 worth of tea powder is used in a glass of milk tea priced at VND20,000.

    “It seems that it is now easiest to sell milk tea,” the CEO of a beverage chain said. However, he warned that those who want to jump into the market will have to compete with dozens of existing brands.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook: