Retail News CRM

Tag: asia

  • Lotte Department Stores take in online retailers

    Lotte Department Stores take in online retailers

    Online retailers in Korea are set to open 13 outlets at Lotte Department Store branches in the next three months.

    “Online brands are continuously expanding into offline stores to raise their brand value and to receive real-time feedback from consumers,” says Lotte Department Store.

    Statistics Korea says online sales of apparel and fashion-related items have grown each year by double digits from 6.2 trillion won (US$5.48 billion) to 10.2 trillion won between 2013 and last year.

    As these brands gain traction against traditional fashion houses, they start opening brick-and-mortar outlets as well, first as showrooms then as stores, says the Korea Herald. This helps them to tap into consumers who prefer to see products before they buy.

    A report from Open Survey last year shows that 53 per cent of consumers want to buy their clothes at offline stores.
    Lotte Department Store’s first offline store was for Style Nanda in 2012. Now about 100 online brands have offline outlets at Lotte’s department stores. Opening soon at Lotte are such brands as Imvely, Migun Style and Sappun.

    Some Korean brands, such as Liphop and Style Nanda, have even expanded to offline stores overseas in countries like China and Singapore.

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  • Harvest rain takes the flavor out of Vietnamese coffee crop

    Harvest rain takes the flavor out of Vietnamese coffee crop

    Heavy rain that hit swamped Vietnam’s 2016/2017 coffee harvest has raised the ratio of low-quality beans and defects, traders said on Wednesday, with one major exporter saying quality is at its worst in nine years.

    Unseasonal rain that fell from October-December last year in Vietnam’s Central Highlands coffee belt delayed the 2016/2017 crop harvest, resulting in more black and broken beans. The rainy season normally ends in early October.

    The harvest was completed in January as usual, but a higher ratio of black and broken beans – counted as defects in export standards – has emerged.

    These defects, coupled with India’s ban on Vietnamese coffee imports from March 7, have made it more difficult for the world’s top robusta exporter to find buyers for the low-quality commodity this year.

    “The ratio of defects this year has risen by 50 percent from 2016,” said Le Duc Huy, deputy general director of Simexco, a major export firm based in the Central Highlands province of Dak Lak. “The quality is the worst since 2008.”

    Downpours cut Vietnam’s 2007/2008 coffee output by 15 percent to 1.08 million tons.

    Traders say India often buys Vietnam’s low-quality robusta grade 3, with 25 percent black and broken beans and 3 percent foreign matter, to produce instant coffee. Vietnam’s benchmark coffee for export is robusta grade 2 (5 percent black and broken), which is priced at a premium of $120-$180 a ton compared to the grade 3 beans.

    The harvest usually starts in late October and ends in January. Rain during the blossoming period reduces yields, while the wet weather disrupts the outdoor drying process, necessitating the use of electric dryers that turn the beans black and worsen the taste. The exportable volume is therefore lowered.

    Two traders at foreign firms in Ho Chi Minh City, Vietnam’s largest coffee trading market, estimated that low-quality beans made up 10-20 percent of the country’s output this year, which is projected to ease 8 percent from last year to 26.7 million bags, or 1.6 million tons, the U.S. Department of Agriculture has said.

    Vietnamese trade experts say India’s ban is a tit-for-tat action after Hanoi announced it was going to suspend the import of five Indian commodities from late April to prevent peanut beetle from spreading.

    Officials at the Indian Embassy in Hanoi did not immediately comment on the matter.

    The impact of the ban on Vietnam’s overall coffee exports is minimal, Vietnam Coffee and Cocoa Association Chairman Luong Van Tu said.

    India imported 6,900 tons of Vietnamese coffee from January-February this year, down 17 percent from the same period in 2016, based on Vietnam Customs data.

    Last year it spent $79.4 million to import 46,000 tons of coffee from Vietnam, a tiny fraction of the Southeast Asian nation’s total shipments of 1.78 million tons.

    India has the world’s third fastest growing retail coffee market behind Indonesia and Turkey, global market intelligence agency Mintel said in its latest report earlier this month.

    Robusta with high ratios of black and broken beans has also been sold to Vietnamese firms to produce instant coffee, traders said.

    But the ban has affected Indian roasters who had been sourcing their raw material from Vietnam, traders said.

    “Since the ban has been in place, several shipments have been held up and importers do not know how to solve the situation,” said a Vietnamese dealer at a Ho Chi Minh City-based firm which ships coffee to India.

    The ban has also made it difficult for Indian roasters after back-to-back droughts in the past two years damaged various crops, including coffee.

    “Indian roasters may have to switch to other sources, such as the Ivory Coast and other African nations,” a second trader at a European firm in Ho Chi Minh City said.

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  • Subscribe to Food launches in Singapore

    Subscribe to Food launches in Singapore

    Just launched in Singapore, Subscribe to Food is an e-commerce subscription service that offers food and wine products for consumers.

    Upon launch, the service acquired e-commerce start-ups The Frank Food Company and WineMasons.

    Philip Raff, who is also executive director of Velocity Property Group, out of Australia, led the investment group and acquisition of the two companies.

    “We believe that through e-commerce, modern logistics via our partner Yojee, and a commitment to a subscription model, even city folks can access premium, fresh, small-batch food and wine,” says Raff. “It’s all about cutting out the middleman and paying a decent price that takes into account the effort and expertise that goes into food production.”

    Subscribe to Food first acquired The Frank Food Company, which focusses on supporting regional farmers practising sustainability, fair-trade and organics, mainly in Indonesia. Its co-founders, brothers Liam and Duncan McCance, took up roles as CEO and food/content director respectively.

    WineMasons was set up by Matt Allanson and Josh Sims and has focussed on Australian small-batch wine producers, with a Singapore subscription commerce offering.

    After Subscribe to Food moves its newly acquired businesses to a shared e-commerce and logistics platform, it plans to launch a third brand focussed on premium beef from farmers in Tasmania.

  • Saigon cab firm takes on Uber with unexpected weapon: grapefruit

    Saigon cab firm takes on Uber with unexpected weapon: grapefruit

    With Uber and other app-based car-hailing services becoming increasingly popular in Vietnam, one local taxi firm has decided to improvise in order to give its drivers a competitive edge.

    Vinasun, the country’s second biggest taxi firm, has found a way to boost its drivers’ incomes by turning 800 cabs in Ho Chi Minh City into mobile grapefruit stalls.

    A kilogram of pomelo, a green-skin grapefruit, sells for VND64,000 ($2.81)

    “Drivers receive a bonus for selling large quantities of fruit,” a driver said.

    The taxi operator typically keeps 80 percent of the revenue from its grapefruit business and awards the remaining 20 percent to the drivers, said executive officer Ta Long Hy.

    Vinasun drivers are making on average between $2 and $4 a day from selling grapefruit, he estimated, adding that the best sellers can add up to $17 to their daily incomes.

    Since ride-hailing companies like Uber and Grab appeared on the scene, traditional taxi drivers have seen their incomes rapidly plunging.

    Traditional taxi companies have been lobbying the government for a lower VAT levy to allow them to compete with cab-hailing apps. The government has, however, turned down the request saying there’s no grounding to claim traditional taxi companies have to pay higher taxes and fees than their ride-hailing competitors.

    Uber and Grab cut into at least 10 percent taxi operators’ revenue last year in Ho Chi Minh City, the local association of taxi companies estimated.

    The number of private minicabs, mostly offering transportation services via car-hailing apps, has reached 20,000 in Ho Chi Minh City, twice as many as the number of traditional taxis.

    Last year Vinasun, which has around 6,000 cabs and operates chiefly in Ho Chi Minh City, launched a counteroffensive against the ride-hailing menace: its own app.

    Passengers using Vinasun’s ride-hailing app can easily recognize their minicabs with a ‘Vcar’ logo, Vinasun’s luxury version. They will be offered the option to fix the price at the beginning of a journey rather than rely on the taxi meter, according to Vinasun.

    Vinasun Group, which has been listed on the Ho Chi Minh City Stock Exchange since 2008, made VND4.3 trillion in revenue ($189 million) last year, down 6 percent from 2015.

  • Alipay gains Hong Kong foothold with Standard Chartered tie up

    Alipay gains Hong Kong foothold with Standard Chartered tie up

    Ant Financial Holdings, which operates the Alipay online payments service for the world’s largest e-commerce platforms, has extended its service to Hong Kong through a partnership with Standard Chartered Bank, the two companies said in a statement on Tuesday.

    The bank’s customers will be able to top up their Alipay HK accounts through their online and mobile banking portals, shop and pay online without incurring any transaction fee.

    Alipay has been working with Hong Kong businesses to promote digital payment since 2014, primarily aimed at tourists and visitors from the Chinese mainland, who are already familiar with cashless payments.

    “We are hoping to extend digital payment services to Hong Kong residents soon and the partnership with Standard Chartered is our first step,” said Venetia Lee, general manager of Alipay Hong Kong, Macau and Taiwan.

    Vicky Kong, head of Hong Kong retail banking for Standard Chartered Bank said that the partnership would enhance customer engagement with existing clients, and help reach out to new ones.

    Many foreign banks already have a partnership with Alipay in mainland China, but Standard Chartered is the first bank to offer this particular service to Hong Kong.

    Ant Financial is an affiliate of Alibaba Group Holdings, which operates the Taobao and Tmall online shopping sites. Alibaba is also owner of the South China Morning Post.

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  • Matsuya opens its own online store in China

    Matsuya opens its own online store in China

    Luxury Japanese department store Matsuya has opened its own online store in China.

    The company plans to use the store to lure repeat business from Chinese shoppers who have visited its Ginza flagship while on vacation, once they return home.

    Inbound Chinese travellers account for about 20 per cent of Matsuya’s store sales.

    Prior to opening its own site Matsuya had a presence on online malls, but after partnering with a local Chinese firm, the Japanese retailer is confident it can better tailor its offer and marketing to mainland Chinese.

    Stock will be shipped from Japan rather than from a local warehouse and the site will be backed by an investment in advertising and promotional marketing.

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  • Vietnam, India work to adjust back-to-back bans on commodity imports

    Vietnam, India work to adjust back-to-back bans on commodity imports

    Vietnam has requested the Indian government to abolish a ban on the import of its six commodities, including coffee and pepper, the Vietnamese government said in a Friday statement.

    India may have agreed with the request and will remove restrictions against the Vietnamese goods in question, the Saigon Times quoted a Vietnamese pepper industry official Saturday as saying, a development could not immediately verify independently.

    India imposed the ban against six commodities from Vietnam, which also included cinnamon, bamboo, cassia and dragon fruit, effective from March 7 after Vietnam’s agriculture ministry had ruled to suspend the import of India’s five agricultural commodities for 60 days starting March 1, citing the infection of peanut beetle.

    Vietnam’s Industry and Trade Ministry, in an official letter, told India to uphold international practice -= referring to the ban, the government statement said, adding that it had Thursday asked the Vietnam embassy in India to deliver the letter.

    The letter also urged India to “soon abolish the suspension of the import”, the government statement said.

    India has agreed to remove the suspension against several items, the Saigon Times quoted Nguyen Mai Oanh, deputy chairwoman of the Vietnam Pepper Association, as saying late Friday.

    “India will abolish the suspension order on the import of agro-products from Vietnam”, after Vietnam’s agriculture ministry officials met Thursday with the Indian embassy in Hanoi, she was quoted as saying.

    In return, Vietnam will adjust its decision on the suspension of five commodities from India and resume their import, Oanh said in the report.

    India’s ban has delayed several shipments of Vietnamese coffee and pushed down pepper prices on Vietnam’s domestic markets in recent days, traders and industry officials say. Vietnam is the world’s largest exporter of robusta coffee and black pepper.

    The country’s coffee export volume on March 1-15 fell 10 percent from the same period last year to 81,000 tons, based on Vietnam Customs’ data released Friday.

    Traders in Vietnam said if the situation is prolonged, Indian roasters would have had to buy their raw material from African nations.

    While domestic pepper prices have eased, due in part also to the ongoing harvest, Vietnam has shipped 13,600 tons of the spice in the first half of March to various destinations, up 31 percent from a year ago, based on customs data.

    Last year India, the third-biggest buyer of Vietnamese pepper after the United States and the United Arab Emirates, imported 11,100 tons of the spice, up 37 percent from 2015, the customs data showed.

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  • Apple China investing in research hubs

    Apple China investing in research hubs

    Apple China plans to set up two more research hubs and boost investment there.

    The announcement comes as CEO Tim Cook takes his latest trip to Apple’s single biggest overseas market. He is expected to be present at the opening of a new Apple store at Jinmao Place in Nanjing this Saturday, March 25.

    Apple HK

    Apple says it plans to build research hubs in the eastern cities of Shanghai and Suzhou, on top of centres already slated for Beijing and the southern city of Shenzhen. It has also pledged to spend at least US$507 million on research institutions.

    All four centres will open thisyear with the aim of enabling co-operation with local partners and attracting talent.

    Meanwhile, Cook has addressed an economic forum in Beijing attended by senior government officials and leaders of corporations such as Royal Dutch Shell and Saudi Arabian Oil.

    For the first time, iPhone shipments to China fell last year. This followed years of China driving Apple’s growth, even as smartphone demand elsewhere faltered. Now, local vendors like Huawei Technologies, Oppo and Vivo are eroding its market share.

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  • Vietnam’s coffee prices hit highest since late 2011 on lack of good beans

    Vietnam’s coffee prices hit highest since late 2011 on lack of good beans

    Vietnam’s domestic coffee prices edged up this week to the highest since late 2011 on a shortage of beans qualified for exports as the harvest has been hit by rain, traders said.

    Unseasonal rain from October to December last year in the Central Highlands coffee belt delayed the 2016/2017 crop harvest, resulting in more black and broken beans, with one exporter saying quality was at its worst since 2008. The rainy season normally ends in early October in Vietnam, the world’s top robusta producer and exporter.

    Prices rose to a range of VND46,700-47,300 ($2.05-2.08) per kilogram of robusta on Monday in Dak Lak Province, Vietnam’s largest coffee growing area, from VND46,500-47,100 last Friday when May robusta futures ended nearly unchanged at $2,184 per ton on London’s market. Vietnamese coffee prices closely follow London’s futures.

    At VND47,300 per kg, prices are the highest since the week ending September 16, 2011 when the beans stood at VND47,400. The bitter beans are used mostly for making instant coffee.

    “Nobody is selling, and the raw material is too bad for processing, while there is a lack of export-standard coffee,” said a Vietnamese dealer in Buon Ma Thuot, the capital of Dak Lak. The province produces one third of Vietnam’s total coffee.

    Without using the color sorting machine, the black and broken bean ratio reached 7-8 percent, he said, well above the export standard that requires the defect rate to be at only 5 percent. The dealer declined to be identified by name, but his company has a factory in Dak Lak for processing and exporting robusta beans.

    The shortage of export-standard beans has emerged earlier than expected.

    Last week Do Ha Nam, general director of Intimex, Vietnam’s largest coffee export firm, said that Vietnam could fall short of beans in May or June due to rising shipments and dwindling domestic stocks.

    On the other hand, the price hike shows India’s ban on the import of Vietnamese coffee in place since March 7 has little impact on Vietnam’s market. India often buys Vietnamese robusta grade 3, with 25 percent black and broken beans.

    “India has stopped its import, thus raising the volume of Vietnam’s low-quality coffee,” the Dak Lak-based dealer said, referring to India’s ban, which also targets pepper and four other commodities from Vietnam.

    India’s ban was issued after Vietnam had ruled to suspend the import of India’s five commodities for 60 days starting March 1, citing the infection of peanut beetle.

    Businesses in both countries have opposed the restrictions, saying the import right should be brought back to avoid negative impact on prices, while cargoes infected by insects should undergo fumigation as usual.

    Last Friday the Vietnamese government said it had requested the Indian government to abolish the ban.

    A Vietnam Pepper Association official was quoted by a local newspaper as saying amendments to the restrictions would be made after officials from Vietnam’s agriculture ministry met with the Indian embassy in Hanoi last Thursday to tackle the issue.

    The low-quality coffee beans are estimated to account for 20-30 percent of Vietnam’s output in the 2016/2017 harvest that ended in January, well above the ratio of 1-13 percent observed in previous years, the Dak Lak-based dealer said.

    “Rain during the harvest has caused early flowering, and which could result in multiple stages of harvesting as cherries will ripe at different time,” he said.

  • Uniqlo targets Zara in faster fashion move

    Uniqlo targets Zara in faster fashion move

    From fast fashion to faster fashion: speed is seen as the key by Uniqlo owner Fast Retailing in its bid to outrace apparel powerhouse Zara.

    Uniqlo founder Tadashi Yanai says Fast Retailing plans to shorten the time it takes from design to delivery to about 13 days, roughly the same as Zara, owned by clothes retailer Inditex.

    He says the company’s new design and delivery centre in Tokyo will also help Uniqlo expand direct-to-consumer, custom-clothing sales and improve the efficiency of its same-day delivery in the city.
    “We need to be fast,” he says. “We need to deliver products customers want quickly.”

    Japan’s biggest clothing retailer aims to increase total revenue by nearly 70 per cent to ¥3 trillion (US$26 billion) in the fiscal year ending August 2021. While that may still not be enough to overtake Inditex, which reported sales of $25 billion last year, Yanai says Fast Retailing’s focus on clothes that meet consumers’ daily needs will help propel its growth.

    “Zara sells fashion rather than catering to customers’ needs,” he says. “We will sell products that are rooted in people’s day-to-day lives, and we do so based on what we hear from customers.”

    Overseas markets, notably in Asia, will grow to contribute about two-thirds of Fast Retailing’s revenue in the next four years, up from about half currently. Uniqlo will open 100 stores in China and another 100 in Southeast Asia annually, says Yanai.

    Concentration for speed

    The company’s new complex, in the Ariake district along Tokyo’s waterfront, houses more than 1000 employees, including designers and marketing teams, and also has a warehouse and delivery department. Yanai says that concentrating resources into one location will help speed processes.

    “The ability to provide anybody, anywhere, anytime with the ultimate, high-quality day-to-day clothing will set us apart,” he says. “We want to deliver products that customers want quickly. That’s why it’s Fast Retailing.”

    After revenue growth of more than 20 per cent for three straight years, Uniqlo sales took a hit in the latest fiscal year. The growth rate slowed to 6 per cent after the brand raised prices because of higher raw-material costs.

    Following the slowdown, the company did a U-turn on its pricing strategy, saying it was committed to delivering the lowest price possible. However, it had to roll back its 2021 revenue target to ¥3 trillion from ¥5 trillion.

  • Skin care brand Mamonde opens Lazada online store

    Skin care brand Mamonde opens Lazada online store

    Korean beauty products brand Mamonde has launched an e-commerce site on Lazada to introduce its skincare and makeup products into Singapore.

    Mamonde’s USP is using flower extracts in its products. Camellia, hibiscus, honeysuckle, lotus and magnolia blooms are hand-picked and frozen or heat dried, with the active ingredients then being extracted.

    There are plans to also open a physical store in Singapore eventually, says Amorepacific, which also owns the brands Etude House, Innisfree, Laneige and Sulwhasoo.

    “Launching digitally first in Singapore was a deliberate move that allows us to observe consumer purchasing habits before scaling up operations in the market,” says Amorepacific Asean regional head Robin Na.

    “While the beauty industry in Singapore is mature, we believe that consumers there are still hungry for new brands.”

  • Shopify revenues grow 90 per cent

    Shopify revenues grow 90 per cent

    Shopify, the cloud-based, multi-channel platform designed for small and medium-sized businesses, has reported a 90 per cent increase in revenues for 2016.

    GMV rose 99 per cent to US$15.4 billion, figures which “speak to the enormous opportunity in retail right now and our strategic position within it,” according to CFO Russ Jones.

    Total revenue for the full year reached $389.3 million, compared with $205.2 million in 2015. Within this, subscription solutions revenue grew 68 per cent to $188.6 million and merchant solutions revenue grew 115 per cent to $200.7 million.

    But it still recorded a net loss of $35.4 million, almost double the $18.8 million of 2015.

    Merchants can use Shopify software to design, set up, and manage their stores across multiple sales channels, including web, mobile, social media, marketplaces and physical retail locations. Shopify powers 377,500 merchants in some 175 countries. Its clients include Tesla, Nestle, GE, Red Bull and Kylie Cosmetics.

    “Our work at Shopify is to help entrepreneurs thrive in a space that’s changing all the time, and we did our job especially well this past holiday season,” stated Tobi Lütke, founder and CEO of Shopify. “That eight of our 10 top sellers over the Black Friday Cyber Monday weekend were merchants that had upgraded from lower-priced plans reminds us that today’s startups become tomorrow’s superstars, at a velocity that appears to be increasing all the time. As the engine powering the growth of these merchants, Shopify has an opportunity that stretches years into the future.”

    For the full year 2017, Shopify currently expects revenues in the range of $580 million to $600 million and an operating loss in the range of $73 million to $77 million.

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  • Apple India opens franchise stores

    Apple India opens franchise stores

    Apple has set up more than 100 small franchise stores in India in the pilot phase of an initiative aiming at six-fold expansion over the next 12 months.

    The US electronics company’s move is a bid to take on Samsung and Chinese rivals, reports The Economic Times.

    Branded as Apple Authorised Resellers, the stores are no larger than 46 sqm and are distinct from the company-owned outlets Apple plans for India.

    It is a format through which the company plans to widen its presence in high-rental, high-street locations in large cities, neighbourhoods and tier-two and -three markets, say senior trade partners.

    Such stores have been set up in Bengaluru, Chandigarh, Mumbai, the National Capital Region (NCR) and Pune. In the NCR, the stores can be found in Gurgaon’s Galleria Market, Malviya Nagar, South Extension and Vasant Vihar.

  • Mall directory website GoToMalls.com launches in Indonesia

    Mall directory website GoToMalls.com launches in Indonesia

    While e-commerce has been growing at a substantial pace in Indonesia, its effect of turning away shoppers from offline retailers is yet to be felt.

    Malls still dominate the daily life of Indonesians, who prefer the experience of going to physical stores.

    Demonstrating the strong grip that malls and offline stores have on the local market, Singapore-based company DominoPos Pte Ltd launched on Tuesday a real-time proximity marketing and digital media platform named GoToMalls.com.

    Offering a comprehensive geo-located, profile-based smart directory of malls and stores in Indonesia, the website aims to enhance the online and offline business in shopping complexes by reviving offline transactions, bringing “the community’s spirit back to the malls through digital media support.”

    “What we are doing with GoToMalls.com is actually assisting all the offline retail brands to publish their own call-to-action campaigns, promote their products or services on a digital platform and fully utilize their target audience,” GoToMalls.com CEO Bruno Zysman said.

    The website provides its users with a comprehensive reference about shopping malls, stores and promotions. It lists up to 375 malls and shopping complexes, along with 19,000 stores.

    To ease their entry into the Indonesian market, the site has partnered with telecommunications operator PT Indosat, also known as Indosat Ooredoo, and ride-hailing app provider Grab.

    Aside from Indonesia, GoToMalls was deployed in DominoPos’ home country of Singapore in February. It also plans to expand into other countries.

  • 5GAA, EATA ink MOU on C-V2X

    5GAA, EATA ink MOU on C-V2X

    5G Automotive Association (5GAA) and the European Automotive and Telecom Alliance have signed partnership MOU, which will see cooperation around jointly promoting the Cellular-V2X industry in term of use cases, standardization, spectrum, and pre-deployment projects with cellular based communication technologies.

    5GAA and EATA commit to prioritize use cases that are identified from two organizations to figure out the technical requirement to be addressed from short to long term. In order to better support connected and automated driving standard, standardization prioritization for the standard bodies such as ETSI, 3GPP, SAE, etc. is necessary as well.

    The agreement between MNO and OEM is deemed important to help work out a business model and unify an industry timeline.

    5GAA is a multi-industry association to develop, test and promote communications solutions, initiate their standardization and accelerate their commercial availability and global market penetration to address societal need.

    Meanwhile, the main goal of the EATA alliance is to promote the wider deployment of connected and automated driving in Europe.

    The first concrete step is the advancement of a “Pre-Deployment Project” aimed at testing use-case categories such as C-ITS services, automated driving, road safety and traffic efficiency. The tests will identify and address both technological and regulatory issues.

    Among other important elements, the project will tackle interoperability issues as well as infrastructure investment to address connectivity needs, and the improving of safety and security.

    “This MOU with the 5GAA not only brings the different industry partners closer together, but also reinforces the European Commission’s strategy on cooperative, connected and automated mobility that was launched at the end of 2016,” said Erik Jonnaert, chairman of the EATA Steering Committee.

    “Car connectivity and automation will require a mix of communications technologies, but it is clear that 5G technology can become a key enabler of Europe’s digital highways,” said Jonnaert.

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