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Tag: asia

  • Ikea Group China launching eCommerce trial

    Swedish home furnishings retailer Ikea Group China will launch into eCommerce in Shanghai and start selling its products online within the next couple of weeks.

    As it is a pilot program, delivery services will be limited to Shanghai initially. All its ready-to-assemble furniture, appliances and home accessories, except for food and green plants, will be available.

    If the trial is successful, Ikea plans to roll out its eCommerce services across China as part of its multi-channel retailing strategy. It does not have any stores in China’s third- and fourth-tier cities, but in May Ikea established a pickup and order point in Wenzhou, Zhejiang province. The stores in nearby Ningbo will provide goods for that service.

    In its latest financial year, Ikea China had sales revenues of 11.7 billion yuan (US$1.76 billion), jumping 19.4 per cent year-on-year. About 83 million customers visited its stores, up 20 per cent from the previous year. Ikea’s websites also had more than 67 million individual visits, a 25 per cent increase.

    Ikea opened three new stores in China this year, in Chengdu and Suzhou in Jiangsu province, and Foshan in Guangdong province. It says it will keep to its plan of opening three new stores in China every year.

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  • China still strong for Lenovo Group

    China still strong for Lenovo Group

    While sales fell 9.8 per cent in China for technology giant Lenovo Group for its first quarter ending June 30, the country accounted for 28.4 per cent of the company’s worldwide sales.

    Consolidated sales reached US$2.9 billion, and pre-tax profit margins were flat at 4.8 per cent amid softening PC demand.

    Lenovo says its mobile business is moving the portfolio to higher price bands and improving user experiences in China. Data-centre revenues grew 14 per cent year-over-year, a premium for the market, supported by growth from hyperscale and contributions from new partnerships.

    Sales in the Asia Pacific region reached US$1.7 billion, 16.7 per cent of the worldwide figure, while pre-tax profit margins were down 1.2 points to 1 per cent, mainly because of a weaker PC market in Japan and the impact of currency fluctuation.

    PC market share again edged up, by 0.4 points to reach 16.4 per cent. The mobile business outgrew the market in key countries, including India and Indonesia, while the data centre group continues to work on improving profitability.

    Overall revenue for Lenovo was US$10.1 billion, down 6 per cent, with a net income of US$173 million, up 64 per cent.

    During the quarter Lenovo’s core markets saw either slow growth or year-over-year industry declines: PCs were down 4.1 per cent and tablet shipments fell 11.1 per cent, while server industry shipments were flat and smartphone markets grew 0.7 per cent.

    “Going forward, in PCs we will focus on high-growth segments and leverage industry consolidation,” says chairman/CEO Yuanqing Yang. “In smartphones, we will leverage innovative, differentiated products and continue to shift to higher price bands to drive growth and turn around this business.”

    Lenovo’s Data Center Business Group (DCG), which covers servers, storage, software and services sold under both the Lenovo ThinkServer and the System X brands, continues to face stiff challenges in mature markets, it strengthened its lead in the market in China, increasing revenue 14 per cent.

  • Segway China launches flagship store

    Segway China launches flagship store

    ‘Short-distance transport’ brand Segway China has launched a flagship store in Beijing.

    Segway COO Zhao Zhongwei and VP for Asia Pacific sales Huang Chen has issued licences to eight dealers from across greater China.

    segway store

    With a minimalist interior design, the Beijing store’s dominant tone is set by the black-and-white Segway VI. Cambered elements and intelligent lighting systems create different colours and a futuristic atmosphere.

    Covering 629 sqm, the store has five zones – demonstration, test drive, after-sale services, VIP reception and an office. The demonstration zone features Segway and Ninebot‘s latest offerings as well as and futuristic products like the Segway Robot and Puma.

    The Segway flagship is at the Beichen Century Center.

    Segway China launches

    Attending the opening ceremony were Segway Group investor Yu Quan and global sales agents. Speakers included Segway CEO Gao Lufeng and investor representatives Hu Haiquan and Chen Yufan.

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  • Singapore REITs’ performance falls flat in 2Q

    Singapore REITs’ performance falls flat in 2Q

    Overall DPU growth sits at -0.1%.

    While its retail sector remained resilient, other sectors such as hospitality and industrial have continued to impede Singapore real estate investment trust (REITs)’s growth, registering a flat -0.1% improvement in 2Q16.

    Even with the dismal performance, OCBC Investment Research said the REITs’ performance in 2Q is in line with the expectations.

    OCBC noted that the strong performances of OUE Commercial Trust, Lippo Malls Indonesia Retail trust and Mapletree Greater China Commercial Trust have offset the underwhelming performance of their peers in the hospitality and industrial sector.

    The three registered DPU growths of 34.7%, 16.4%, and 9.1%, respectively.

    Overall, the flat REIT DPU growth was amid the decent uptick in net property income at 8.2% and distributable income 5.2%.

    “This can be attributed to the regular issuance of new units as partial/full payment of management fees, coupled with REITs which have recently carried out equity fund raising exercises,” OCBC explained.

    Meanwhile, it explained how hospitality sector have remained the main drag during 2Q, pointing out to the weakness in revenue per available room for Singapore hotels and revenue for available unite in serviced residences.

    “Most industry players highlighted that June was a particularly poor month. We believe this could be attributed largely to the absence of the SEA Games which took place in June last year. Another key factor for the muted performance was due to weaker demand from the corporate sector,” OCBC said.

    For the industrial sector, its poor performance came from small-mid cap REITs.

    Looking forward, OCBC said the operational performance of the REITs would continue to be be pressured by the macroeconomic uncertainties and supply concerns.

    More so, it explained that some REIT managers are making use of the soft environment to carry out asset enhancement initiatives to reposition their assets in the future.

    These projects, the report warned, would result in a fall or loss of income contribution in the near future and will eventually mute DPU growth.

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  • Cheung Kong puts The Center up for sale as Li Ka-shing trims Hong Kong assets

    Cheung Kong puts The Center up for sale as Li Ka-shing trims Hong Kong assets

    Hong Kong’s wealthiest man is putting his tallest building in the city up for sale, garnering bids from several Chinese buyers that point to the increasing trend of mainland companies with deep pockets snapping up local assets.

    Li’s Cheung Kong Property Holdings Co. has put The Center on the market with little fanfare for six months, according to a property agent involved in the deal, who declined to be named. A handful of keen buyers are bidding on the 73-storey tower, valued at HK$35 billion, the agent said.

    At that price, The Center will be Hong Kong’s most expensive real estate transaction.

    Analysts point to China’s state-owned companies with deep pockets as the most likely buyers for the tower in downtown Central, which has 1.2 million square feet of office space, 13,000 square feet of retail space and 402 car parking lots.

    “Only state-owned enterprises can afford such a sum,” said Knight Frank’s head of valuation and consultancy Thomas Lam.

    The building, completed in 1998, is an entire steel structure without a concrete core. Its iconic lobby was featured in the Hollywood movie The Dark Knight.

    Cheung Kong owns 48 storeys in the building after Malaysian developer Guoco Group bought 11 floors in 1997. Nine of the 11 floors were sold to Singapore’s DBS Group Holdings Co. in 1998, while Cheung Kong sold the 60th and 79th floors in 1999, according to The Center’s sales brochure.

    Li has sold more than 20 billion yuan (HK$23 billion) of commercial properties in Shanghai, Beijing and Guangzhou since 2013. The tycoon’s business empire covers container ports, phone networks, power plants, real estate, retail outlets with assets in Asia, Europe and North America.

    Cheung Kong’s officials were unavailable to comment in Hong Kong.

    ICBC Asia, a subsidiary of China’s largest bank, is in discussions to buy the Center for HK$34.8 billion, Hong Kong’s Chinese-language media reported on Tuesday. The Hong Kong unit of the Industrial & Commercial Bank of China denied it’s involved in the talks.

    Cheung Kong is taking advantage of an explosive demand of office real estate by mainland Chinese companies in Hong Kong, analysts said. The decline in the Chinese yuan against the US dollar has also made it more attractive for mainland banks to seek better returns by parking their capital in real estate.

    “Chinese companies are eager to set up headquarters in Hong Kong’s central business district amid rapid business expansion,” Knight Frank’s Lam said. “They will be the key driver of new take up and office acquisition in the coming years.”

    Mainland Chinese companies hogged the limelight last year when two of them acquired two office blocks from Hong Kong-based property companies.

    China Life Insurance Co., the country’s largest insurer, paid HK$5.85 billion in November last year for Wheelock & Co.’s One HarbourGate office tower and retail podium in Hung Hom. On the same day, China Evergrande Group, the country’s second-largest developer, forked out a record HK$12.5 billion for the 26-storey Mass Mutual Tower in Wan Chai from Chinese Estates Holdings.

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  • Pop-Up Stores In Hong Kong: Fad Or The Future?

    Pop-Up Stores In Hong Kong: Fad Or The Future?

    With vacancy at less than 1% in Hong Kong’s prime shopping malls, is it any wonder why brands, particularly those new to the market, are opting to grab a slice of the action by entering the market by doing a pop-up store. So what is a pop-up?

    • žžPop-up retail, also known as pop-up store or flash retailing, is a trend of opening short-term sales spaces.
    • žžA pop-up retail space is a venue that is temporary — the space could be a sample sale one day and host a private cocktail party the next evening.
    • The trend involves “popping-up” one day, then disappearing anywhere from one day to several months later.
    • žžThese shops, while small and temporary, can build up interest by consumer exposure.
    • žžPop-up retail allows a company to create a unique environment that engages their customers, as well as generates a feeling of relevance and interactivity.
    • žžPop-up retail also provides retailers to “prove” themselves in certain locations before the landlord decides whether they will provide them a shop on a long-term basis.

    Many brands are entering Hong Kong using the pop-up store model as a way to showcase their products. Although the stores are on a small scale and in a confined space, when done correctly, they allow customers to get a taste and a feel for the brand.

    Advantages for the landlord

    • Limited risk. It is allows the brand to occupy a small area that would otherwise be an open void space, a vacant shop or a shop that is undergoing some alteration work. This allowsthe landlord to maximise occupancy levels and revenues in what would otherwise be deemed as “dead space”.
    • žžAllows the brand to showcase their products and for the landlord to assess whether the brand is potentially worthy of securing a longer term store within the mall.
    • žžAllows the landlord to assess how the brand operates, how the staff interact with the customers and assess how good their customer service is.
    • žžKeeps the mall interesting and competitive.

    Advantages to the brands

    • žžWith competition for space in Hong Kong being extremely fierce, many brands are left to wait and wait for a prime location to be made available to them. A pop-up store allows them to enter the market more quickly.
    • žžBuild rapport with the landlords.
    • žžShowcase their products and designs to the landlord and use this as a platform to test their merchandise with the discerning Asian customer. In particular, mainland Chinese consumers, whose attention many brands are eager to capture.
    • žžAllows the brand to be uber creative in their design in a small space.
    • žžPop-up stores are usually located in areas with high footfalls which provide maximum exposure and opportunity to the brand.
    • žžRelatively low costs involved.

    Take an example such as Penhaligon’s, a new-tomarket brand that set up a lovely pop-up store in Harbour City and was able to parlay the success of the store to be offered permanent stores in prime locations in Hong Kong and Macau. Goes to show there are advantages to this approach.

    Disadvantages

    • žžLarge amount of investment is often required for what is a small and temporary space.
    • žžLimited time to recoup initial investment, produce impactful marketing and moreover showcase the brand and its DNA.
    • žžSometimes the tenant mix may not be ideal for the brand.
    • žžLocations are often isolated which means the brand has to work harder on the design, customer service and marketing to entice people into the pop-up store.

    Will the pop-up phenomenon remain? From what we can see in terms of market fundamentals and the success many popup concepts are enjoying, the answer is an overwhelming yes. With no let up on demand from brands seeking to expand, space availability being extremely limited and rentals not looking to subside any time soon, pop-up stores will become a more and more enticing option. However it is not all good news, many pop-ups, due to their limited time period and inability for the brand to showcase a sufficient range of products, can sometimes be detrimental to a brand. Take a fashion brand for example. They have hundreds of Stock Keeping Units (SKU’s) in their normal stores but this is often limited to a 10th of that in a pop-up. This could potentially damage the brand’s reputation, perception, sales and ultimately the brand’s ability to expand in Hong Kong. Overall, however, we believe that the positives outweigh the negatives but brands still need to be conscious of what they are doing. They need to have a strategy in place and ultimately know exactly what they are trying to achieve by having a pop-up.

  • Outlet malls booming in China as department stores feel the pinch

    Outlet malls booming in China as department stores feel the pinch

    Designer outlet malls are sprouting up all over mainland China, even as department stores find themselves struggling amid a slump in retail sales.

    At least 17 new outlet malls are scheduled to open in China in the second half of 2016, according to a report by Outlet Sight, which tracks the industry. Some developers are betting on outlet malls because they typically offer off-season or factory excess goods priced at a discount to the in-season products sold by the same brands in department stores.

    “We think designer outlets are more defensive than high-street retail,” said Chris Reilly, Asia-Pacific managing director at TH Real Estate, a property fund that manages nearly US$100 billion of real estate in Asia, Europe and the US. “Their fundamentals are better in terms of supply and demand.”

    China’s department store sector has been battered in recent years by sluggish sales growth and declining profits, with store closures intensifying since 2015. Offline sales at the mainland’s top 50 retailers declined 3.1 per cent year on year in the first half of 2016, according to figures from the National Commercial Information Centre of China.

    However, the discount mall sector appears ripe for strong growth; for a country with China’s population and spending power, there are relatively few factory outlet malls – just 40 at present – compared with as many as 300 in the US, said Zhong Beichen, chief executive of outlet developer Beijing Capital Juda, which has already opened four such outlets, in Beijing, Hainan, Zhejiang and Jiangsu.

    “We aim to open outlets in more than 20 cities by 2020 and become the largest outlet operator in China,” Zhong told the South China Morning Post. “Discount malls can perform well despite economic ups and downs” because they offer customers cheaper price points, he said. “When the economy expands, people shop to dress nice, but outlets will still be the first choice for those seeking affordable luxury in an economic slowdown.”

    Juda was spun off from state-owned property developer Beijing Capital Land Ltd and listed in Hong Kong in 2015.

    The boom is attracting developers and investors to the fray.

    London-based TH Real Estate launched an US$850 million fund in China, with two Italian village-themed outlet malls in Wuqing in Tianjin city and Shanghai.

    “Our target shopper is the Chinese household earning more than US$20,000 a year,” said TH Real Estate’s Reilly. “This demographic group is already the largest in the world, and we expect the number to more than double over 10 years with the rise of the Chinese middle class.”

    With TH Real Estate’s Florentia Village in Shanghai 90 per cent occupied, and its Florentia Village Wuqing full to capacity, Reilly said he is confident the China Outlet Mall Fund can grow to US$2 billion by 2020. Four more Florentia Village malls are slated to open in Chengdu, Wuhan, Chongqing and Qingdao by 2017.

    Factory outlets face stiff competition from online retailers, but have the advantage of providing a complete experience, Juda’s Zhong said.

    “Our strategy is to build outlets in places with beautiful scenery to attract families for the shopping experience,” he said, citing their 110,000 square meter outlet in Beijing’s Fangshan District, which is located near a forest park.

    Themed malls, such as the Florentia Village brands, are also becoming popular. Covering 90,000 square meters and with 3,000 car parking spaces, Florentia Shanghai reconstructs scenes of Florence including an Italian-styled city plaza, paved streets, porches, fountains and luxury brands such as Versace, Ferragamo and Zegna.

    “Shoppers like to visit outlets for the discounts, they want to try on designer brands, but what’s more important, it’s like a day out,” Reilly said.

    -Originally written by Summer Zhen, SCMP

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  • Tata Motors launches two new commercial vehicles in Indonesia

    Tata Motors launches two new commercial vehicles in Indonesia

    Tata Motors today said its Indonesia unit has launched two new generation commercial vehicles in that country. PT Tata Motors Distribusi Indonesia (TMDI), a unit of Tata Motors, has launched the Tata Ultra 1012 light truck and the Tata Xenon XT D-Cab 4×4 pick-up, at the 24th Gaikindo Indonesia International Auto Show (GIIAS) 2016. Developed, keeping the Indonesian customer in mind, both vehicles have gone through rigorous trials of more than 25,000 kms, over different terrains and various operating conditions, Tata Motors said in a statement.

    “Both vehicles have been designed for the modern commercial vehicle customer with superior performance, world-class cabins, high load carrying capacity and flexible body-load configurations,” Ravi Pisharody, Tata Motors Executive Director, Commercial Vehicles, said. Tata Motors is also committed to bring the latest global technologies to the commercial vehicles market in the country, he added. Tata Motors is India’s largest automobile… Tata Motors today said its Indonesia unit has launched two new generation commercial vehicles in that country.

    PT Tata Motors Distribusi Indonesia (TMDI), a unit of Tata Motors, has launched the Tata Ultra 1012 light truck and the Tata Xenon XT D-Cab 4×4 pick-up, at the 24th Gaikindo Indonesia International Auto Show (GIIAS) 2016.

    Developed, keeping the Indonesian customer in mind, both vehicles have gone through rigorous trials of more than 25,000 kms, over different terrains and various operating conditions, Tata Motors said in a statement.

    “Both vehicles have been designed for the modern commercial vehicle customer with superior performance, world-class cabins, high load carrying capacity and flexible body-load configurations,” Ravi Pisharody, Tata Motors Executive Director, Commercial Vehicles, said.

    Tata Motors is also committed to bring the latest global technologies to the commercial vehicles market in the country, he added.

    Tata Motors is India’s largest automobile company, with consolidated revenues of Rs 2,75,561 crore in 2015-16. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, South Africa and Indonesia.

  • BEI launches online investment-based simulation game

    BEI launches online investment-based simulation game

    The Indonesia Stock Exchange (BEI) launched an online investment-based simulation game “Nabung Saham Go” (Saving Stocks Go) as one of the measures to introduce the capital market industry to the public, especially to university students.

    “The game was one of the steps to introduce the capital market to the public. The Nabung Saham Go game can be played by anyone although it is aimed at university students as it is easier for them to play. The game is similar to Pokemon Go,” Development Director of BEI Nicky Hogan stated here on Tuesday.

    Hogan emphasized that the game falls under the education category and offers a fusion of the virtual and real worlds. Players will encounter small adventures bearing different themes and will get a series of interesting information.

    “The application encourages players to become more familiar with the capital market,” he remarked.

    Hogan elaborated that the “Nabung Saham Go” game invites players to collect points gained after answering the questions posed by the gaming application.

    “Players can visit certain places, such as the Financial Services Authority Building and Indonesia Stock Exchange Building to get information on how to gain points in the game. In each of the places visited, the player will have to answer a few questions on the stock market. Each correct answer will be given points,” he explained.

    In addition to “Nabung Saham Go,” Hogan said the users can play an analog game called “Stocklab,” which is associated with investment instruments, such as stocks and mutual funds.

    “The game Stocklab uses media cards and as an outline, the players will be guided on the strategy of investing and are invited to find out how the company made its initial public offering,” he added.

  • Plaza Indonesia’s ‘Fashion On4’ Showcases Favorite Local Brands

    Plaza Indonesia’s ‘Fashion On4’ Showcases Favorite Local Brands

    “We’re currently re-branding the whole level four as a new hang-out place for young people in the city,” Astri Abyanti, senior marketing communications, public relations and digital marketing manager of Plaza Indonesia, said at the opening of Fashion On4 on Tuesday (16/08).

    “We want to support Indonesia’s growing fashion industry, especially local brands that target young people. That’s why we’ve invited these nine brands to showcase their collections at Fashion On4,” Astri said.

    The nine fashion labels, according to Astri, were selected based on a survey of the shopping mall’s young clientele.

    “These are the brands that [our young clients] would like to see at the mall,” she said.

    Among the brands are Ikat Indonesia, No’om, Populo Batik, Rama Dauhan, Ria Miranda and Sky Inc.

    “(Fashion On4) breathes fresh air into Plaza Indonesia,” fashion designer Rama Dauhan said. “It’s also an opportunity for us to show that Indonesian fashion brands’ creations are on par with international ones.”

    For Fashion On4, Rama showcases his newest collection “Sensatia,” whose main strength is in easy-to-wear pieces embellished with patchwork designs.

    “It’s a great opportunity for us to branch out,” Sky Inc’s designer Amot Sjamsuri Muda said.

    For the new pop-up store, Sky Inc, previously known as Isis, presents an extended summer collection, inspired by “ulos,” a traditional fabric from North Sumatra. The fabric is made into casual dresses, crop tops and oversized jackets showcasing the intricate patterns of the traditional textile.

    Ria Miranda is the only Muslim fashion label among the nine new labels at the pop-up store.

    “I’m so excited to be here,” Ria said. “I hope to get a lot of new customers from this new store.”

    For Fashion On4, the Muslim designer presents her 2016 Fall/Winter collection, Forresta, inspired by her recent visit to Japan.

    “It’s a universal collection that can be worn by Muslim and non-Muslim [women] alike,” she said.

    The collection features simple pieces in a combination of bold colors that can easily be mixed and matched.

    Fashion On4 will be open at the mall until December 2016.

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  • Direct India-Indonesia flights necessary to attract more Indian tourists

    Direct India-Indonesia flights necessary to attract more Indian tourists

    The Indonesian Tourism Ministry believes that direct flight from and to India could increase the number of Indian tourist arrivals in Indonesia.

    “The main challenge is direct flights as the existing ones are just transit flights from and to India,” Dody Prianto, assistant deputy director of the Tourism Ministry, noted here.

    Prianto was in Kolkata, India, for a roadshow to promote “Wonderful Indonesia,” the tourism brand of the country, at a hotel in the city, with the objective of attracting more tourists from India.

    He hoped airlines, such as Garuda Indonesia, would be interested in operating direct flights between India and Indonesia.

    To draw more Indian tourists to Indonesia, the ministry is intensifying tourism promotion to introduce other tourist destinations apart from Bali.

    He mentioned Sumatra as one of the interesting places for Indian tourists to visit as it is located near Singapore, and its culinary dishes bear similarities to those in Indonesia.

    The Tourism Ministry has set a target of attracting at least 350 thousand Indian tourists this year.

    “The target is quite high, but we are optimistic that it can be achieved,” Prianto stated.

    During the first semester of this year, a total of 185,911 Indian tourists had visited Indonesia, he said on the sidelines of a sales million event.

  • Surplus predicted in Indonesia`s rice supply

    Surplus predicted in Indonesia`s rice supply

    The agriculture ministry said the country is expected to have a surplus of 11.38 million tons in supply of milled rice by the end of this year.

    Chief spokesman of the ministry Agung Hendriadi said rice supply is estimated to reach 43.69 million tons as against requirement of 32.3 million tons this year.

    “A surplus , therefore, is expected to reach 11.38 million tons, even there would be an excess of 20 million tons in supply on stocks including early year stock and Bulog stocks and harvest 8.8 million tons,” Agung said.

    Similarly excesses are also estimated in the supply of other foodstuff including 2.1 million tons of corn grains, 339,400 tons of sugar, 18.5 million tons of cooking oil, 131,800 tons of red onion, 414,400 tons of chili, 1.59 million tons of chicken meat and 1.44 million tons of eggs.

    Meanwhile, deficit is expected in the supply of beef and soybeans.

    Deficit in beef supply is estimated to reach 220,000 tons with supply totaling 441,8000 tons as against consumption of 662,300 tons, and deficit in soybean is around 1.09 million tons with supply totaling only 1.5 million tons as against consumption of 2.59 million tons.

    Agung, however, said in general supply of the 11 strategic commodities is relatively safe until the end of the year.

    “Deficit would be recorded only in the supply of two commodities until the end of the year,” he said.

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  • Consumer prices fall for 21st straight month in July

    Consumer prices fall for 21st straight month in July

    Consumer prices fell further in July, marking the 21st straight month of decline, according to data released by the Department of Statistics on Tuesday (Aug 23).

    The consumer price index (CPI) fell 0.7 per cent last month, unchanged from the previous month, as a smaller decline in the cost of private road transport offset the impact of lower retail goods prices, the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) said in a joint statement.

    Private road transport costs fell by 4.4 per cent, compared to the 5.7 per cent decrease a month earlier, largely due to a smaller decline in car prices from a year ago.

    Prices of retail goods fell 0.2 per cent, compared to an increase of 0.5 per cent in June. This was mainly because of steeper discounts on clothing and footwear during the Great Singapore Sale, MAS and MTI said.

    Services inflation was 1.6 per cent, unchanged from the previous month. While the cost of education services rose more sharply, this was offset by a slower pace of increase in holiday travel expenses.

    Food prices rose 2.1 per cent in July. Although there was a stronger pickup in the cost of non-cooked food items, it was offset by a smaller increase in the price of restaurant food.

    The cost of electricity, liquefied petroleum gas and gas fell by 12.7 per cent, compared to the 13.7 per cent decline in June. This was due to a smaller decrease in electricity tariffs on a year-ago basis, the agencies said.

    Core Inflation, which excludes the costs of accommodation and private road transport, fell slightly to 1 per cent from 1.1 per cent in June, due to the fall in retail goods prices.

    Ms Selena Ling, Head of Treasury and Strategy at OCBC Bank, said that the main drags on inflation were familiar.

    “Looking ahead, with headline inflation having likely troughed in the second quarter and likely to creep higher in the coming months, we maintain our full-year inflation forecast of -0.4 percent year-on-year,” she said.

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  • VW, suppliers struggle to resolve dispute in marathon talks

    VW, suppliers struggle to resolve dispute in marathon talks

    Volkswagen and two of its auto parts suppliers were pushing to resolve a contract dispute early on Tuesday, spokespeople said, but had no progress to report despite 17 hours of talks as the conflict threatens to cost the carmaker thousands of vehicles in lost output this week.

    Top-level negotiations between VW and the two Prevent DEV group suppliers that began at about 1100 GMT (0700 ET) on Monday and continued through the night failed to yield a breakthrough, spokespeople for VW and the suppliers said. But the two sides are continuing to seek a solution, they said, without elaborating.

    The dispute affected about 28,000 workers at six of VW’s 10 German factories on Monday when the automaker halted production of the top-selling Golf and Passat models, as well as assembly of engines, gearboxes and emissions systems, due to the Wolfsburg-based suppliers’ refusal to deliver products like seat covers and gearbox parts.

    VW’s supplier conflict poses a threat to the company’s profitability as it seeks to recover following its diesel emissions test cheating scandal.

    Analysts at UBS estimate that a one-week production halt at VW’s Wolfsburg headquarters would result in about 100 million euros ($113 million) in lost gross profit, and could have knock-on effects on other suppliers.

    CarTrim, which makes seats, and ES Automobilguss, which produces cast iron parts needed to make gearboxes, are seeking compensation after saying they faced lost revenue running into tens of millions of euros after VW canceled a contract.

    Europe’s largest automaker has been trying to force the two companies to resume deliveries, suggesting they could face fines or even seizure of missing parts.

    Lower Saxony Economy Minister Olaf Lies, a member of VW’s supervisory board, has said the dispute is hitting VW “at the worst possible time”. Whether VW management should face questions for over-reliance on single suppliers needs to be clarified, he added.

    Some industry analysts were also critical of VW.

    “A global player has based its entire production chain on a mid-sized company,” said Ferdinand Dudenhoeffer, head of the Center of Automotive Research at the University of Duisburg-Essen. “That is not only amateurish but also extremely naive.”

    Faced with billions of euros of costs from its emissions scandal, VW has indicated it would seek price cuts from its suppliers.

    While the disruption may keep workers at home, there could be a silver lining for VW in limiting Golf output. The automaker had already canceled Golf production shifts on October 4-7 and December 19-22 due to falling demand.

    VW said the stoppages were part of regular production adjustments.

    “Given the slowdown of VW sales (excluding China), the brand certainly needs to slightly trim production levels,” said London-based Evercore ISI analyst Arndt Ellinghorst.

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  • Sharp innovation gap seen between advanced, emerging Asia

    Sharp innovation gap seen between advanced, emerging Asia

    Pay-TV providers in advanced economies in Asia are focused on improving existing product suites, while investment in emerging economies is being used to create new solutions to boost subscriber growth, according to NAGRA and MTM.

    Across advanced economies in the region, 97% of pay-TV providers offer IP connected set-top boxes, compared to only 42% in emerging markets.

    The latest paper from the Pay-TV Innovation Forum research program shows that there are also noticeable differences in operator provisioning of other features. 4K availability within the region varies, with 50% of providers in advanced economies offering this service, versus only 6% in emerging ones.

    There is also significant variation in the availability of TV Everywhere services, with 53% of emerging providers offering it compared with 80% in the advanced economies.

    These differences underscore that providers are focusing on varying and diverse innovation initiatives over the next five years which will be directly linked to their economic circumstances.

    In emerging markets, service providers are expected to concentrate their efforts on delivering core valued-added propositions, including HD video and a transition to hybrid STBs.

    Operators in advanced markets that already offer these services are expected to focus on developing seamless video experiences across devices, based on IP, cloud and data technologies to make content discovery as easy as possible.

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