Retail News CRM

Tag: asia

  • Amazon’s flagship India unit beats Flipkart’s in revenue

    Amazon’s flagship India unit beats Flipkart’s in revenue

    Amazon’s flagship unit in India Amazon Seller Services has more than doubled its revenues in the year ended March, leading rival Flipkart’s similar firm in terms of revenues.

    Amazon Seller Services’ turnover for the last fiscal rose 116% to Rs 2,217 crore while Flipkart Internet’s sales increased 153% to Rs 1,952 crore during the same period.

    Both units earn revenues through commissions, advertisements and shipping fees that they charge to sellers.

    While the Amazon unit outpacing Flipkart Internet is a significant development, both companies operate through a complex structure which makes total revenues of their units hard to conclusively interpret.

    Flipkart India, which runs the wholesale arm of the Singapore-registered etailer, posted 34% increase in revenues for FY16 with sales of Rs 12,818 crore, compared with Rs 9,351.7 crore a year ago.

    Amazon India’s wholesale unit has not filed its numbers for the financial year yet.

    Experts feel Flipkart’s retail sales could be at least 15-20% higher than its wholesale revenues after including margins. Flipkart didn’t disclose profit or loss figures. It made a loss of Rs 837 crore in 2014-15.

    Doubling of revenues of both the ecommerce giants indicates the rapid pace of growth in the ecommerce market aided by billions of dollars in overseas funding even as brick and mortar peers struggle.

    Flipkart India’s turnover is now nearly double the country’s organised wholesale market that has players such as Wal-Mart and Metro Cash & Carry. Experts, though, feel the numbers are minuscule compared to other markets.

    “Given the potential of the market, the numbers are still not huge and the pace of growth has come down. Even within the overall organised retail market, their contribution is just a fraction despite spending aggressively to gain market share,” said Harminder Sahni, founder of retail consultancy firm Wazir Advisors.

    “Flipkart will have a tough time going forward in terms of funding as well as competing with Amazon,” he said.

    The financial performance numbers are also reflective of the change of pace in investments by both the etailers. Amazon India has ramped up investment since 2015 as it looks to increase its market share, even as Flipkart has been focused on cutting its cash burn rate.

    Flipkart Marketplace, a Singapore-based subsidiary and investment holding company which owns 99.74% stake in Flipkart Internet, received equity infusion of Rs 1,629 crore in fiscal 2016, significantly down from Rs 5,456 crore in the preceding year.

    In comparison, Amazon Seller Services received capital infusion of Rs 7,463 crore in fiscal 2016, up from Rs 1,888 crore in the previous year.

    The rivalry will only intensify — Amazon has committed $5 billion to the Indian market, and is outspending Flipkart by 3-4 times by investing aggressively in areas like video and grocery delivery. An Amazon India spokesperson said it is now the largest as well as fastest growing online marketplace.

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  • Government employees on official business to get Cebu Pacific discounts

    Government employees on official business to get Cebu Pacific discounts

    Government employees will get discounted fares from budget carrier Cebu Pacific starting January next year, following the signing of a Government Fare Agreement (GFA) on Monday.

    All government employees on official travel will be given discounts, with the processing fees waived.

    Government agencies across the Philippines will be able to tap into the discounted fares via the Philippine Government Electronic Procurement Service (PhilGEPS) of the Department of Budget and Management.

    “This is a huge step into our goal of getting the highest value for the hard earned money of our Filipino taxpayers. The DBM estimates savings for more than P1 billion in aggregate discounts and waived fees under the GFA,” Budget Secretary Benjamin M. Diokno said during the GFA signing in Pasay City.

    Cebu Pacific President and CEO Lance Gokongwei noted the agreement can foster financial and economic growth.

    “We are looking forward to flying more government employees as this will also cultivate financial and economic growth of the different regions and provinces in the Philippines,” he said.

    The airline offers flights to 36 domestic and 30 international destinations across Asia, Australia, the Middle East, and USA.

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  • Huawei, LG U+ achieve 31Gbps peak in 5G tests

    Huawei, LG U+ achieve 31Gbps peak in 5G tests

    Huawei and South Korea’s LG U+ have completed a series of joint 5G tests based on three commercial scenarios – enhanced mobile broadband, ultra-reliable low latency communications (uRLLC) and massive machine-type communications (mMTC).

    The various tests achieved a cell peak rate of 31Gbps on high-frequency bandwidth and Massive MIMO, as well as latency under 0.5ms and mMTC single-cell massive connections.

    During the test procedures the two companies also verified key 5G New Radio technologies, including simultaneous use of short transmission time intervals and filtered orthogonal frequency-division multiplexing (f-OFDM), as well as sparse-code multiple access (SCMA).

    Huawei and LG U+ signed an agreement in July 2015 to jointly develop 5G technologies. The companies had already opened a joint R&D lab in Seoul dedicated to research into LTE-A and 5G.

    “LG U+ is dedicated to creating new better life for our customers through maximized value and improved experience,” LG U+ VP Kang Jung Ho said.

    “We hope to provide the availability of 5G services for Korean users by 2018, and Huawei’s innovation insights and accumulated expertise will help us in achieving this goal.”

    Huawei VP for wireless networks Gan Bin added that the companies plan to strengthen their 5G collaboration in the future.

  • AirAsia now flies to Taipei and Singapore from Cebu

    AirAsia now flies to Taipei and Singapore from Cebu

    Cebu skies are painted red with the twin launch of AirAsia flights to Taipei and Singapore from Mactan-Cebu International Airport (MCIA). AirAsia Flight Z2 7124 to Taipei departed at 6:10 a.m. while flight Z2 7236 to Singapore left Cebu at 4:55 p.m. Both flights last Nov. 25 were given a water salute upon departure.

    Philippines AirAsia’s director for flight operations Captain Monreal Gomer said at the send-off ceremonies held at the airport: “AirAsia’s twin launches today herald brighter, bigger and better opportunities for travel, business and tourism. It also means more job opportunities, more income for families, more food on the table and more economic activities.”

    “As a Filipino low cost carrier and member of the AirAsia Group which is the leading and largest low cost carrier in Asia, we feel strongly about supporting the growth and development of cities outside Metro Manila by connecting Cebu to international destinations like Singapore, Taipei, Korea, Malaysia and onto AirAsia’s over 120 destinations across Asean, Asia, India, Australia, New Zealand, the Middle East and Africa via fly-thru service,” Gomer said.

    AirAsia’s Cebu-Singapore flights operate four times weekly while Cebu-Taipei is scheduled three times weekly. Aside from these new routes, the world’s best low-cost airline is also servicing direct flights to Incheon/Seoul in Korea and Kuala Lumpur.

    All guests on board AirAsia’s maiden flights to Taipei and Singapore received an early Christmas gift wrapped in iconic red paper from AirAsia flight crew as soon as they boarded their flights. Sinulog dancers also welcomed arriving and departing guests with send-off ceremonies led by executives from MCIA, the Department of Tourism, Singapore Tourism Board and AirAsia.

  • Singapore banks lose up to 40 per cent of new product sales to competitors

    Singapore banks lose up to 40 per cent of new product sales to competitors

    The latest survey by management consulting firm Bain & Company found that Singapore retail banks lose up to 40 per cent of new product sales to competitors that are better at digital marketing, sales and service.

    In its seventh annual report on consumer banking behaviours, the consultancy said such “hidden defection” of consumers – purchasing a new banking product from a competing bank or financial technology firm – could get worse.

    “There are a lot of customers who frankly consider themselves prisoners in their own banks. They don’t switch their primary bank because it’s too much hassle to do so. But they’re going to go elsewhere for any new needs,” said Ms Chew Seow-Chien, partner and head of Bain’s Financial Services practice in Southeast Asia.

    The survey polled more than 137,000 consumers in 21 countries, including Singapore.

    The Singaporean customers polled indicated that they would buy new banking products from a competitor rather than their primary bank up to 40 percent of the time.

    About 30 per cent of them said they would switch their primary bank if it were easy to do so, the research showed.

    Bain noted that fintechs and technology companies are siphoning off customers seeking high-value products and services, such as credit cards, loans, insurance and investments.

    In its research, the consultancy found that deposits made up about 50 per cent of purchases from primary banks in Singapore over the last 12 months, versus just 22 per cent at competing banks.

    Meanwhile, insurance were the most purchased product at competing banks – 31 per cent of purchases – followed closely by credit cards.

    As younger, more plugged-in generations learn how to bank, their purchases of banking products through digital channels, especially online, will rise – making it important for banks to improve their digital offerings, simplify products lines and streamline user experiences.

    “By now, the digital disruption in banking should come as no surprise, and most banks clearly understand the importance of digital migration,” said Ms Chew.

    “The bigger challenge lies in how to organise the transition and instill the necessary changes, both at the frontline and in the back office, to improve how consumers do their banking.”

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  • Singapore’s new tallest building a ‘vertical city’

    Singapore’s new tallest building a ‘vertical city’

    Singapore’s canyon of skyscrapers has a new peak with the opening of the Tanjong Pagar Centre on the fringes of the central business district, sitting atop one of the wealth city state’s busiest train stations.

    The complex, dubbed a “vertical city”, marks the revival for an area of the business core of Singapore, about a kilometre away from the three soaring burnt-glass coloured towers at the Marina Bay Financial Centre (MBFC) complex built on land reclaimed from the sea and adjacent to the Marina Bay Sands hotel and casino.

    With office, retail, residence, hotel, fitness, and even an urban park, the new complex will be home to more than 150,000 square feet of green community space. The Tanjong Pagar site at 290 metres high pips its nearest rivals by just 10 metres, with three other building in Singapore at 280 metres high, One Raffles Place, UOB Plaza One and Republic Plaza.

    But it comes at a time that Singapore’s office and retail vacancy rates are rising and online shopping gathers pace with the arrival of a Singapore-based unit of China’s massive e-commerce firm Alibaba and the expected launch of new services by U.S.-based Amazon.

    “The approach of an integrated development solves the congestion problem so that we minimise travels. It also helps people do more things within the same location,” Cheng Hsing Yah, Managing Director of GuocoLand Singapore told CNBC Asia during a tour of the property.

    The towers promise 32-per cent in energy savings compared to similar code-compliant buildings by using glazing and directional shading which reduces the sun’s glare from Singapore’s year-round tropical climate.

    The project – which includes nearly 30 floors of office space–comes to market at a time when Singapore’s office vacancies has hit its highest levels in more than four years and been on its longest stretch of declines since the financial crisis.

    “The market has been challenging in terms of the leasing, because of the economic situation as well as the supply, but we’re quire fortunate to experience a very strong tick up rate of our office as well as our retail and f-and-b (food and beverage)space,” Cheng said.

    Guoco says office space for Tanjong Pagar Centre is already more than 85-per cent leased and the retail space is more than 90-per cent. Still, there are no signs of inventory slowing down.

    Next year, Marina One, adjacent to MBFC, is expected to open, which will bring nearly 2-million square feet of space to market, and Singapore’s government is reportedly selling prime land in the Marina Bay financial district, making it the first such sale in nine years.

    Follow CNBC International on Twitter and Facebook.

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  • Global SPA brands draw fire for using ‘Sea of Japan’

    Global SPA brands draw fire for using ‘Sea of Japan’

    ZARA, H&M, GAP, Forever 21, MANGO and other SPA brands here have come under fire for using a Google Map that refers to the East Sea as the “Sea of Japan,” and Dokdo as “Liancourt Rocks.”

    Critics say ZARA Retail Korea is using an online map which shows Japanese place names in the Korean language. The map has been provided for customers to search for locations of ZARA stores.

    The company declined to clarify its own opinion to the media, saying the Korean branch should follow the global policies of ZARA headquarter in Spain.

    The company’s response angered Korean customers, who have already been irritated by the chief of ZARA Korea making statements ridiculing the candlelit rally participants.

    However, The Korea Times found out that other Korean branches of SPA are using the same map as ZARA, which may enrage Korean customers even more.

    On the map, Sea of Japan is shown as East Sea in parentheses, only if a user zooms in on the map. Moreover, Dokdo is shown as Liancourt Rocks, even if the user zooms in.

    At the bottom of the map three firms are credited ― Google, SK Telecom and Zenrin. They are headquartered in the U.S., Korea and Japan, respectively. Zenrin is a Japan-based map publisher.

    An SK Telecom official said that “It seems Google received detailed data of streets and buildings from our T map and received overall geographical data from Zenrin.”

    Google currently offers online maps following cultural and historical emotions of each country. After a series of disputes, the map’s Korean version (maps.google.co.kr) shows Dokdo and East Sea as they are in Korea.

    Most global firms are using different versions in each country as well. However, global SPA brands have used the Zenrin-based global version.

    UNIQLO alone could avoid the controversies as it is using Naver Map on its official website of its Korean branch, even though the brand is headquartered in Japan.

    Meanwhile, ZARA Korea seems to face a larger boycott of its products because of the map matter.

    The company chief Lee Bong-jin has come under criticism after he said during a public lecture, “When you took to the streets (to protest), 49 million people who didn’t join the rally were doing something for themselves. Your future will be shaped based upon what you do now,” referring to the mass anti-Park rally in Seoul. His statements have gone viral as one of the lecture attendants posted his words on social media.

    “My intention was, that in this chaotic situation, we should be more dedicated to what we are supposed to do ― studying for students and working for workers,” Lee apologized. However, Korean customers likened his apology to the warning about the 1919 Independence Movement made by a infamous pro-Japanese collaborator Lee Wan-yong.

    Customers have begun an online boycott against ZARA and some of them sent emails of complaints to its headquarters Inditex Group, in Spain.

  • McDonald’s near deal to sell China stores

    McDonald’s near deal to sell China stores

    A consortium led by private-equity firm Carlyle Group and Chinese conglomerate Citic Group Corp has neared a deal to buy McDonald’s stores in China and Hong Kong for up to $3 billion, a source with direct knowledge of the matter said.

    The deal is likely to be signed before Christmas, the source said.

    Reuters had reported in October that U.S. buyout firms Carlyle and Bain Capital LLC had been the front runners among the bidders for the fast-food giant’s China assets.

    McDonald’s in March said it was reorganizing operations in Asia, bringing in partners as it switches to a less capital-intensive franchise model.

    The company hired Morgan Stanley to run the sale of about 2,400 restaurants in China and Hong Kong.

    Financial Times reported earlier on Wednesday that Bain Capital had dropped out of the race, and that a group led by Citic Group and Carlyle were the front runners to the deal.

    Carlyle declined to comment, while McDonald’s was not immediately available for a comment.

  • New technologies to enable greater supply chain efficiencies in Singapore

    New technologies to enable greater supply chain efficiencies in Singapore

     

    Singapore is set to enjoy greater supply chain efficiencies in near future, thanks to the Urban Logistics technology roadmap for 2020 that was unveiled by the Infocomm Media Development Authority (IMDA) on 28 November 2016.

    The roadmap includes the testing and implementation of new technologies in 12 additional retail malls in Singapore next year.

    The Urban Logistics programme is dedicated to analysing challenges in the logistics sector, identify technologies that can significantly improve Singapore’s supply chain processes, and improve efficiencies.

    2020’s gameplan will address different stages of the urban logistics process, outlining requirements that ensure the Urban Logistics solutions, systems and processes are interoperable, and remain open for interested industry players to adopt and/or adapt.

    This will also help optimise resources, as well as improve turnaround times and process efficiencies.

    Dynamic scheduling

    IMDA’s technology roadmap also includes steps that enable dynamic scheduling to accommodate early or late arrivals as well as complex algorithms to manage increasingly larger volumes of deliveries.

    A unique In-Mall Distribution model of delivery management establishes an in-mall operator to receive goods at the mall unloading bay. This model is designed to improve current delivery/acceptance processes and reduce congestion of delivery vehicles leading to the unloading bay.

    Moreover, this model also enables Singapore’s malls to have extended hours of delivery/acceptance operations, and foster greater automation, professionalism and security of such services.

    “Since the implementation of the In-Mall Distribution solution at Tampines Mall and Bedok Mall in June and September respectively, we have noticed an easing of road congestion around our malls as the queuing time for delivery trucks reduces,” said Teresa Teow, head of Retail Management, Singapore, CapitaLand Mall Asia. “This has resulted in greater efficiency for the different parties along the delivery chain and a better experience for all visitors who drive to our malls, including shoppers.”

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  • Spar to open 300 stores in Thailand

    Spar to open 300 stores in Thailand

    Spar International and Bangchak Retail Company (BCR) have announced a new partnership to open 300 Spar stores in Thailand by 2020.

    The US$78.9m investment was announced on 28 November, with BCR to open seven new stores in 2016, and 50-80 new stores each year from 2017.

    “The launch of Spar in Thailand in partnership with BCR represents a significant and important step forward in Spar’s ongoing expansion into Asian markets,” Tobias Wasmuht, managing director of Spar International said at the official announcement of the new partnership. “It brings together our internationally tried and tested retail expertise particularly in convenience and supermarket formats with the extensive knowledge of the Thai market. The partnership is a true example of the Spar ethos in which through working together all shall benefit.”

    BCR managing director Viboon Wongsakul said the Thai company was exciting about the new offering for customers in Thailand.

    “We plan to bring local retailing to the next level and will dedicate the resources necessary to have a significant presence in the market in the shortest possible time-frame,” he said.

    The partnership will see both Spar and BCR focus on sourcing produce locally, with Spar International working on developing its own brand of products.

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  • On-Yasai hotpot chain launches in Vietnam

    On-Yasai hotpot chain launches in Vietnam

    Japanese restaurant group Colowide is introducing its shabu-shabu hot-pot chain to Vietnam via a franchise network.

    Its first On-Yasai hot pot location opens at Vincom Mega Mall in Hanoi this month, being run by affiliate Colowide Vietnam.

    The 260 sqm outlet seats 128 diners, and the monthly sales target is about US$80,000.

    Colowide already runs Gyu-Kaku yakiniku (grilled meat) restaurants and Japanese-style pubs in Vietnam. Through franchising, it hopes to open 30 On-Yasai locations in Vietnam over the next five years.

    Colowide is also set to acquire Japanese hamburger chain Freshness, and plans to take control of Gyu-Kaku’s North American network this month.

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  • Yogibo bean bags to launch in Korea

    Yogibo bean bags to launch in Korea

    Yogibo bean bags, which started in a Nashua, USA, basement in 2009, is about to launch in Korea.

    The brand has proven a hit in Japan, where 20 of its 50 global stores are located, and now the company has opened a pop-up store in Seoul after appointing a local partner. Yogibo has some 26 stores in the US and others in Jordan and Canada.

    Eyal Levy, founder and CEO of Yogibo, described the response to the pop-up, which opened on November 1, as “incredible”.

    “We are so excited to get into this market and to partner with the founders of Yogibo Korea,” he said.

    Yogibo Korea co-founder David Park is a close friend of Levy. “I knew David prior to this opportunity, and I couldn’t be happier to do this with him. It’s always fun and awesome to create partnerships with people that you know, like, and trust,” said Park.

    The first permanent South Korean store will open at the beginning of 2017. Yogibo is confident South Korea will be a perfect fit due to its overwhelming success in Japan.

    Yogibo stores are known for their bright colors, fun decor, and friendly staff. The stores feature multiple seating areas featuring the company’s line of bean bag chairs and pillows, as well as a variety of the company’s large bean bag furniture, home decor product, and accessories. Each store uses Yogibo’s flagship product, the Yogibo Max, which is a portable, versatile piece of furniture that can be used as a chair, recliner, bed or couch.

    “The word ‘Yogibo’ has meaning in Korean, something we didn’t know when we started the company. It means ‘Look here.’ We think it’ll be a great fit,” said Levy.

    Yogibo opened its first concept store in the Natick Mall in Natick, Massachusetts, in 2010.

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  • Decathlon China building biggest flagship yet

    Decathlon China building biggest flagship yet

    French sports goods retailer Decathlon will open its first two-story flagship in Luoyang as it expands its Greater China footprint.

    When complete, it will be the sports retailer’s second store in the city, located in the province of Henan – and its largest store yet in China.

    The new Decathlon China store will be located at the intersection of Huashan Road and Hangong Road in Xigong district. It boasts 13,000 sqm of retail floor space and include a playground for children.

    Decathlon, which opened its first two stores in Singapore this year as part of a new Asia-wide focus, is a full-line sports supplies retailer which also designs, manufactures and wholesales products. It has more than 1300 stores in 32 countries and plans to have 220 stores trading in 100 Chinese cities by the end of this year.

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  • Grab launches e-money service GrabPay Credits

    Grab launches e-money service GrabPay Credits

    Ride-hailing app operator Grab has expanded into the e-money business in Southeast Asia.

    Singapore-based Grab this week unveiled a cashless mobile payment service called GrabPay Credits, which lets consumers store cash credits on its smartphone app.

    Singapore and Indonesia will be the initial test markets before the concept is rolled out in Malaysia, Thailand, Vietnam and the Philippines where Grabn operates its ride hailing app.

    Users will be able to top up their accounts at convenience stores or using ATMs by partner banks.

    “Working with local banks, payment providers and merchants, Grab is building one of the region’s largest cashless payment solutions for people with limited access to the banking system,” said Tan Hooi Ling, co-founder of the startup.

    GrabPay considers the move into finance as a natural extension of its ride-hailing service, making it easier and safer for customers to pay for rides and eliminating cash.

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  • L’Occitane International profit jumps

    L’Occitane International profit jumps

    French skincare brand L’Occitane International’s interim net profit has jumped 33.9 per cent for its latest six months.

    Earnings for the period to September 30 climbed to €25.99 million (US$27.5 million) from €19.41 million year-on-year, while net sales edged up by 1.3 per cent to €551.7 million.

    Emerging economies Brazil, China and Russia were singled out as the top performing markets for the Provence-based company.

    “We are seeing accelerating store traffic in China and a tremendous growth in our sales on the Tmall market platform,” says L’Occitane Asia-Pacific president Andre Hoffmann.

    The mainland has become the company’s second-largest market after the US in terms of the number of outlets. Eight locations were launched in China in the first nine months of the year – the largest number across the brand’s nine major markets.

    Total sales from the mainland gained 5.4 per cent to €50.8 million from a year ago, accounting for 9.2 per cent of L’Occitane’s net revenue.

    More shops were opened in Japan and South Korea, but in Hong Kong sales plunged by as much as 11.2 per cent.

    Same-store sales overall fell 2.5 per cent, which the company blames on global economic political uncertainties. However, more positive signs included a strong performance on Tmall, as well as in the Black Friday sale, says CFO Thomas Levilion.

    L’Occitane eCommerce business grew by 6.8 per cent during the first half, making up 10 per cent of global retail sales.