Tag: asia

  • Esprit remains confident despite first-half loss

    Esprit remains confident despite first-half loss

    A strategic plan is starting to yield results for Esprit, which is buoyant in its outlook despite a first-half loss weighted on by weakened demand in China.

    Net loss for the Hong Kong-listed fashion retailer amounted to HKD238m (£22m) for the six months to 31 December, compared to a profit of HKD47m (£4.3m) in the same period the year before.

    Esprit introduced a vertically integrated business model in its previous financial year, the same supply chain process used by high street giant Zara. Esprit said this, coupled with cost efficient product development, is enabling it to develop improved products in terms of design, quality and value-for money.

    “The performance during the first six months of this financial year gives us confidence that the implementation of our vertical and omnichannel model is an effective basis to turnaround our business,” said CEO Jose Manuel Martinez.

    “We remain confident that we are heading in the right direction and are laying the necessary foundation to restore competitiveness and long term growth for Esprit.”

  • Hero Supermarket Indonesian retailer unloads convenience stores

    Hero Supermarket Indonesian retailer unloads convenience stores

    Indonesian retailer Hero Supermarket on Wednesday said it will sell its poorly performing Starmart convenience store business to local food conglomerate Wings Group.

    Hero is selling about 80 Starmart outlets to Fajar Mitra Indah, a unit of Wings Group and the franchisee of Japan’s FamilyMart convenience stores in the country. The move follows the closure of 50 Starmart stores in 2015. In a press release, Hero said it will pull out entirely from the convenience store business. The sale will have no material impact on the company’s finances, it added. The value of the transaction was not disclosed.

    A Startmart outlet in Jakarta

    Fajar Mitra plans to convert 50 of the Starmart stores to FamilyMarts by the end of the year, which will help raise the number of FamilyMart stores to around 80, according to a person familiar with the matter.

    Starmart has been struggling to compete against the top two local brands, Alfamart and Indomaret, which run about 10,000 outlets each and are expanding aggressively. Hero’s move comes after Supra Boga Lestari, a high-end supermarket operator, recently announced the sale of its Ministop convenience store business.

    Hero’s core supermarket business, which targets middle-class shoppers, has also faced intense competition from hypermarkets, which purchase large amounts of merchandise and sell at low prices. Combined with slowing consumer spending and rising labor costs, the company’s earnings have eroded quickly. Hero’s net profit in 2014 plunged more than 90% from the previous year, and it slipped into a loss for the nine months ended September 2015.

    In addition to Starmart, Hero has also closed some of its Guardian drugstores. Searching for new sources of revenue, the company became the franchisee of Swedish furniture retailer Ikea, opening its first store in Indonesia in 2014. But its prospects have been clouded by a recently published Supreme Court ruling that allowed a local furniture company to use the Ikea trademark.

    Hero is owned by the retail arm of Hong Kong-based conglomerate Jardine Matheson Holdings. Jardine, which also controls Indonesia’s largest automaker, Astra International, has been increasing its investment in other countries in the region, such as Thailand and Vietnam.

  • Rakuten and Gmarket announce trading partnership

    Rakuten and Gmarket announce trading partnership

    When Japanese e-commerce platform Rakuten shut offices in Singapore, Malaysia and Indonesia two weeks ago, the company stressed a renewed corporate focus on cross-border trading in East Asia.

    In a concrete result of the mandate, Rakuten announced today a partnership with South Korea’s largest e-commerce shopping mall Gmarket to boost cross-border trading amongst merchants in both countries.

    “Rakuten is delighted to announce this collaboration between the leading internet shopping mall retailers of both Japan and Korea, as another step on the path toward more active and profitable cross-border trading for merchants, small and large, of both countries,” said Masato Takahashi, Managing Executive Officer at Rakuten.

    As part of the deal, Gmarket will launch mini-stores on Rakuten Ichiba (its Japanese platform) to offer Korean fashion and beauty products in the country. At initial launch, the deal will include 200 items of women’s fashion and 100 Korean SME beauty products.

    Henry Chun, Head of Gmarket, explained his perspective as to why the deal would be beneficial for his company.

    “The deal will pave the way for Korean small fashion and cosmetic brands who have been struggling to introduce their unique, high-quality products to consumers worldwide, to increase their exports to Japan,” he said.

    In Korea, Rakuten will launch a flagship e-commerce store on Gmarket and offer products on the Korean company’s curated commerce service G9.

    The next few months will be focussed on increasing the product line on both platforms.

    During its fiscal year 2015 review, Rakuten revealed its Vision 2020 plan. The strategy was an inwards move which resulted in the Southeast Asia shutdowns. The desire to promote cross-border agreements in East Asia was part of the Vision 2020 plan.

    This is not the first deal of this nature in recent months for Rakuten. In December, the Japanese company inked a similar deal with Chinese e-commerce giant JD.com. In that instance, Rakuten opened a store on the JD.com network.

    Gmarket is owned by eBay, the American online auction company bought it for a whopping US$1.2 billion in 2009.

  • Hong Kong Government Allocates About $64 Million In Fashion Industry For Upcoming Budget

    Hong Kong Government Allocates About $64 Million In Fashion Industry For Upcoming Budget

    The Hong Kong government just settled its 2016-17 budget — which includes an allocation for the fashion industry of 500 million Hong Kong dollars (or about $64.35 million at current exchange rates).

    Financial secretary John C. Tsang told us that the funds will go towards developing the fashion industry, specifically promoting local designers and brands internationally and in Hong Kong. He added that the city’s government will establish an incubation program for fashion designers, “drawing on the experience of other fashion capitals like London, New York and Seoul.”

    Additionally, the Hong Kong government will set up a resource center to provide technical training and support for young designers, according to Tsang.

    “The uncertain pace of U.S. interest rate [normalization], heightened financial market volatility, modest and patchy growth in advanced economies, weak growth in emerging markets, a slowdown in inbound tourism and subdued exports will all impact on growth prospects,” the Hong Kong government said in a release, WWD reported.

    The Hong Kong Trade Development Council will also team up with the local government to sponsor programs that will bring emerging Hong Kong-based brands to fashion weeks in Paris and New York. From Sept. 7-10, the HKTDC plans to host a new event called Centrestage — giving Asian brands a platform for runway shows. 

    In related news, Lane Crawford recently tapped nine artists to create a series of visual installations for the luxury retail company’s stores in Hong Kong and China in celebration of the Chinese New Year — which began earlier this month.

    Participating artists include Andrea Minini, Angel Chen, Desmond Leung, Hui Hoi Kiu, Huijun Guan, Mosaic Art Projects (which is led by visual artists Karen Pow and Chao Harn Kae), Jan Zhou and Yeli Gu.

  • StanChart still profitable in Singapore

    StanChart still profitable in Singapore

    Singapore remained one of the few bright spots for Standard Chartered last year amid huge losses elsewhere.

    Profit before tax in Singapore was US$567 million (S$796 million) in the 12 months to Dec 31, down 33.4 per cent year-on-year but still the second best country performance.

    Hong Kong’s profit contribution was top, at US$1.49 billion, but still down 17.9 per cent compared with a year ago. In China, profit pared 45.3 per cent year-on-year to US$88 million, according to the group’s results released overnight.

    Elsewhere, signs that StanChart was struggling amid global headwinds were more apparent.

    In India, it suffered a loss before tax of US$981 million, a huge reversal from 2014’s profit of US$561 million. Its losses in Britain widened from 2014’s US$154 million to US$1.41 billion last year.

    The banking group reported a total loss before tax of US$1.52 billion, down from a US$4.24 billion profit in 2014.

    Group chief executive Bill Winters warned of a choppy outlook, noting in the annual report: “The economic and geopolitical backdrop for the group clearly deteriorated over 2015 and has not improved into 2016.”

    But StanChart’s business in Singapore, where it employs about 7,000 people, presents a rosier picture.

    “The bank in Singapore remained profitable in 2015. We saw a double-digit year-on-year growth in retail deposits and bancassurance, achieved a substantial increase in wealth management market penetration and grew our priority banking client base,” Singapore chief executive Judy Hsu said in a statement yesterday.

    She added: “We also maintained positive business momentum in financial markets, driven by a significant increase in foreign currency volume and revenues, and improved on the quality and interest margins of transaction banking’s cash income business.

    “Singapore is a core market for the bank and plays a significant role as a hub for our global business and as a gateway to Asean… and we will continue to invest in the growth of our Singapore franchise across retail, private banking, commercial and institutional clients.”

    Ms Hsu’s comments came amid concerns about how global banks are faring in Singapore. In November, StanChart moved to cut 15,000 jobs globally, including an unspecified number of positions here.

    Uncertainty yet looms at the bank, which is undergoing “accountability reviews” targeting around 150 current and former employees globally. The reviews have led to some layoffs and the move to claw back past year bonuses.

    A Singapore spokesman declined to comment on whether any staff here was affected by the reviews, adding: “The accountability reviews are still ongoing and more actions, including the reduction or cancellation of prior year incentive awards, are likely.”

  • Bleak New Year for Chow Tai Fook

    Bleak New Year for Chow Tai Fook

    Chinese New Year sales for the Chow Tai Fook Jewellery Group took a dive in Mainland China, Hong Kong and Macau.

    Unaudited figures for the period, from January 25 to February 14, show the value of retail sales dropped 30 per cent in China and 23 per cent in Hong Kong and Macau – a 29 per cent dip for the group – compared with the previous Chinese New Year.

    Same-store sales dropped 31 per cent in China, 22 per cent in Hong Kong/Macau, and 28 per cent for the group. Same-store sales figures were also broken down into product – gem-set jewellery dropped 30 per cent in China, 3 per cent in Hong Kong/Macau, and 20 per cent for the group, while gold products fell 33 per cent in China, 25 per cent in Hong Kong/Macau, and 31 per cent for the group.

    Chow Tai Fook says the plunge in China was mainly because of more outbound travel from the mainland during the celebration, and a weakening of consumer sentiment for luxury goods because of the economic slowdown and volatility in the stock market.

    It attributes the decrease in Hong Kong and Macau to the drop in mainland tourists to Hong Kong as well as continuing weak retail sentiment in both regions.

    “Management anticipates the retail business environment will continue to be challenging for the fourth quarter and the sales performance will be worse than that of the third quarter,” the company said a statement.

  • Metro Philippines plans 100 stores

    Metro Philippines plans 100 stores

    Listed retailer Metro Retail Stores Group, based in Cebu, has launched an expansion program aimed at taking its network in The Philippines to 100 stores within five years.

    Nearly three years after supertyphoon Yolanda devastated the coastal community in the Leyte region, the biggest retailer in the Visayas plans to open a store in Tacloban City.

    Metro representatives met with Mayor Alfred Romualdez last month to tell him of the company’s decision to invest in Tacloban, reports the Cebu Daily News.

    Metro plans a two-storey building for a 2ha. property in Real Street, owned by a church. The Metro Gaisano in Tacloban will create job opportunities and also help the city government in terms of taxes. Construction is scheduled to start next month, with the store expected to open within a year.

    Metro, the country’s fourth-largest retailer, earlier said it planned to open 50 to 70 new stores in the next five years. Most of these would be in the Visayas.

    There are two other Gaisano-owned shopping malls in Tacloban — the Gaisano Capital and Gaisano Central.

    The retail arm of Vicsal Development, Metro debuted on The Philippines stock market in November.

  • China quick to adopt digital wallets

    China quick to adopt digital wallets

    Nearly half of consumers in China who took part in a new survey shop with digital wallets.

    Overall, the study shows that digital wallets are the fastest-growing payment technology in the region, with one in five of those surveyed using the technology.

    MasterCard’s latest mobile shopping survey shows that digital wallets are used by 19.5 per cent of respondents in Asia Pacific, a two-fold increase from two years ago (9.7 per cent).

    Emerging markets are leading the way with 45 per cent of smartphone users surveyed in China using digital wallets, 36.7 per cent in India and 23.3 per cent in Singapore. The results are based on interviews with 8500 people aged between 18 and 64 years across 14 markets in October and December.
    While mobile banking apps (31.8 per cent) are still the most widely used, among new mobile technologies such as in-app shopping and mobile NFC payments, digital wallets have had the fastest uptake over the past two years.
    Also, 48.5 per cent of respondents overall have used their smartphone for shopping in the three months before the survey. India tops the region at 76.4 per cent – up 29.3 per cent from two years ago – followed by China (76.1 per cent), South Korea (62 per cent) and Thailand (61.1 per cent). After India, growth has been most marked in Vietnam (up 17.7 per cent from two years ago) and Singapore (up 17.1 per cent).
    “New forms of mobile payment technology, such as MasterCard’s digital wallet MasterPass, are making transactions easier and safer, online, in-app and in-store,” says MasterCard’s Asia Pacific group head for digital payments, Raj Dhamodharan. “As more and more merchant apps provide shopping and services, consumers need a digital wallet that provides the best balance between security and convenience.”

    For example, consumers in Singapore are using their MasterPass wallet to pay bills and book taxis.
    Across Asia Pacific, 53.9 per cent of respondents cite convenience as the key driver for shopping on their smartphone. Other motivating factors include the ability to shop on the go (42.9 per cent) and the growing availability of apps that make it easy to shop online (41.4 per cent).
    Clothing and accessories (35 per cent), personal care and beauty products (20.9 per cent) and movie tickets (20.4 per cent) are the top mobile purchases. In China, 64.6 per cent of respondents use their smartphones to buy clothing and accessories, followed by 42.5 per cent in India and 42.1 per cent in Korea.

    Nearly half of consumers in China who took part in a new survey shop with digital wallets.

    Overall, the study shows that digital wallets are the fastest-growing payment technology in the region, with one in five of those surveyed using the technology.

    MasterCard’s latest mobile shopping survey shows that digital wallets are used by 19.5 per cent of respondents in Asia Pacific, a two-fold increase from two years ago (9.7 per cent).

    Emerging markets are leading the way with 45 per cent of smartphone users surveyed in China using digital wallets, 36.7 per cent in India and 23.3 per cent in Singapore. The results are based on interviews with 8500 people aged between 18 and 64 years across 14 markets in October and December.
    While mobile banking apps (31.8 per cent) are still the most widely used, among new mobile technologies such as in-app shopping and mobile NFC payments, digital wallets have had the fastest uptake over the past two years.
    Also, 48.5 per cent of respondents overall have used their smartphone for shopping in the three months before the survey. India tops the region at 76.4 per cent – up 29.3 per cent from two years ago – followed by China (76.1 per cent), South Korea (62 per cent) and Thailand (61.1 per cent). After India, growth has been most marked in Vietnam (up 17.7 per cent from two years ago) and Singapore (up 17.1 per cent).
    “New forms of mobile payment technology, such as MasterCard’s digital wallet MasterPass, are making transactions easier and safer, online, in-app and in-store,” says MasterCard’s Asia Pacific group head for digital payments, Raj Dhamodharan. “As more and more merchant apps provide shopping and services, consumers need a digital wallet that provides the best balance between security and convenience.”

    For example, consumers in Singapore are using their MasterPass wallet to pay bills and book taxis.
    Across Asia Pacific, 53.9 per cent of respondents cite convenience as the key driver for shopping on their smartphone. Other motivating factors include the ability to shop on the go (42.9 per cent) and the growing availability of apps that make it easy to shop online (41.4 per cent).
    Clothing and accessories (35 per cent), personal care and beauty products (20.9 per cent) and movie tickets (20.4 per cent) are the top mobile purchases. In China, 64.6 per cent of respondents use their smartphones to buy clothing and accessories, followed by 42.5 per cent in India and 42.1 per cent in Korea.

  • HSBC, Standard Chartered Caught Between ‘Brexit’ and China

    HSBC, Standard Chartered Caught Between ‘Brexit’ and China

    Two big U.K. banks’ shares tanked over the past couple of days, and unlike the British pound, they’re not weakening because of the so-called “Brexit” referendum — although that certainly doesn’t help.

    Instead, their fall may have a lot to do with the market and economic turmoil that has been taking place in China.

    The London-listed shares of emerging markets-focused bank Standard Chartered (SCBFF) fell by 10% at one point on Tuesday morning after it reported its first annual loss in more than 25 years.

    The bank reported a loss before tax of $1.5 billion last year, in sharp contrast to 2014’s profit of $4.2 billion.

    On Monday, HSBC’s (HSBC) shares fell in an otherwise rising market after the bank, which is the biggest in Europe and one of the biggest in the world by assets, reported a loss of $858 million before tax in the fourth quarter of last year, vs. a profit of $1.7 billion in the fourth quarter of 2014.

    HSBC, which is doing a lot of business in Asia and was even thinking of moving its headquarters there before deciding earlier this year to remain in London, eked out a 1% increase in pretax profit for full 2015 to $18.87 billion, but its adjusted loan impairment charges were up 17% at $3.7 billion over the period.

    The weak results of the two banks chime with rising investor worries about the exposure of U.K. banks to Asia, and particularly China, at a time when European banks have been making investors nervous again.

    Richard Barnes, senior director at Standard and Poor’s credit rating agency, received many questions about the risk of European banks’ exposure to Asia last week during an analyst call, and said the region was important particularly for HSBC and Standard Chartered.

    However, “we’ve seen European banks generally retrenching from a number of regions in the world including Asia … banks are trying to reduce exposure,” Barnes said, adding that, in China, “banks look again at their exposure to state-owned enterprises and are focusing on the ones that are likely to be supported by the government in a downturn.”

    HSBC has been deeply involved in the liberalization and deepening of China’s capital markets, having successfully negotiated a majority stake in a new, nationally licensed securities joint-venture in the mainland. HSBC Group Chairman Douglas Flint acknowledged in a statement on Monday that “China’s slower economic growth will undoubtedly contribute to a bumpier financial environment,” but he added that the country “is still expected to be the largest contributor to global growth as its economy transitions to higher added value manufacturing and services and becomes more consumer-driven.”

    He said this transition is driving the bank’s focus on the Pearl River Delta as a priority growth opportunity, as the area is a concentration of high-tech, research-focused and digital businesses.

    HSBC’s exposure to mainland China is around $143 billion, according to its annual report; of these, $135 billion are loans to other banks or non-bank financial institutions, sovereign and corporate loans, while $8 billion are loans to retail clients.

    China is perhaps even more important for Standard Chartered and has helped reduce the bank’s loss over the past year. Its Greater China business showed a pre-tax profit of $1.37 billion last year, compared to a loss of $1.33 billion in its European operations. In terms of exposure to China, Standard Chartered listed $77.67 billion in loans to customers in the country.

    The two banks would normally be sheltered from fears over their exposure to China by their presence in one of the strongest financial centers in the world, London. But with uncertainty in the U.K. rising because of the referendum on EU membership, expect a few particularly volatile months ahead for HSBC and Standard Chartered.

  • Walmart India ramps up investment

    Walmart India ramps up investment

    US-retail giant Walmart is investing between $240m and $300m to bolster its presence in India by expanding its number of stores from 21 to 70 by 2020.

    “We have a cash-and-carry model, and the growth has been good for us,” Walmart India VP and head of corporate affairs Rajneesh Kumar told Retail Update.

    “Each store takes two to three years to set up. These will create nearly 2000 direct and indirect jobs.”

    Walmart India inside

    Meanwhile, Walmart’s technology centre in Bengaluru is also expanding its role and headcount, ramping up from 750 employees to 1200 by next month, says the Business Standard.

    “Most of the growth at Walmart Labs here is driven by supply chain and analytics,” says Walmart Global Technology Services VP and MD Jayakumar K. “The focus is to set up two centres of excellence, from ground up.”

    Walmart is working to merge its retail stores and online presence to become an omni-channel player, and has merged its computer systems technology team and its eCommerce technology team in Silicon Valley to create Walmart Technology.

    Jayakumar says that as the announcement is new, the immediate impact on the India centre is yet to unfold.

    “However, the combined structure in some sense already exists here. The Bengaluru centre is the only one in the world for Walmart where both these teams work together. We not only work in the same building, but have also collaborated on projects.”

    Walmart has made huge changes to its technology roadmap for its eCommerce over the past few years. Two years ago, the company changed from using off-the-shelf applications to using more software developed in-house.

    In India, it has created the Pangaea platform, which has been partially rolled out locally and this year will be introduced in other countries.

    Jayakumar says this approach allows the company to be quicker and more agile when launching products.

    As well as its focus on technology, Walmart is also tapping into the start-up ecosystem, acquiring 15 start-ups since 2011.

  • Thailand’s First Tanning Salon Opens in Bangkok

    Thailand’s First Tanning Salon Opens in Bangkok

    “A tanning salon in Thailand? Isn’t that like trying to sell ice to the Eskimos?”

    That was the response from a friend when I mentioned I was going to visit a tanning salon in Bangkok that claims to be the first of its kind in the country.

    It’s a fair question, and one that CEO Jeff Amato has heard several variations of in the run-up to the opening of his new venture, BKKSUN.

    “Of course people have asked me ‘why are you opening in the sunniest place on Earth?’” the American laughed as he sat in his office in the newly opened salon in Sukhumvit, minutes away from Thonglor BTS.

    “But we have a lovely high season that lasts just two to three months and the rest of the year it’s too hot and uncomfortable to be outside if you’re in the city,” he added, explaining that ironically it’s during these months that Bangkokians can be deprived of sunshine, and therefore a tan, as they take shelter in air-conditioned offices and malls away from the sweltering humidity of the city.

    Hopping in one of the tan booths or sunbeds at BKKSUN for just a few minutes could give them that much-needed hit of Vitamin D to pick up their spirits and release feel-good endorphins, he said.

    “You need sunshine in your life,” smiled the Missouri native, who fled the cold winters of the Midwest for the blazing heat of Thailand eleven years ago.

    Regardless of whether a tan salon can be a hit in Bangkok, it’s a welcome change from the pervasive skin-whitening craze here, from whitening creams, masks and soaps sold at every pharmacy and beauty counter, to racist adverts, competitions and even school vocab charts, all with the message that dark skin is ugly, while “white is winning”.

    However there is an emerging trend of more Thai celebs and role models celebrating and promoting darker skin, like Nonthawan “Maeya” Thongleng, a southern beauty with tan skin who beat out paler-skinned competitors in 2014 to be crowned Miss Thailand World.

    Top actress Janie Tienphosuwan and influential beauty blogger Pearypie naturally have fair skin, but both are known for working on their tans and sending the message to young Thai girls that tan skin can be beautiful too.

    And with the recent launch of TAN Magazine which aims to promote healthy, sun-kissed skin, perhaps the tide is turning.

    “Tanning is trending,” Amato said. “Thai celebrities have really embraced tanning and I give them a lot of credit for starting this trend.”

    “The whole world loves Thai tan skin and I think promoting tanning is a great message for people.”

    The salon is in its soft opening phase, having launched around six weeks ago, and already has around 15-20 customers coming through its doors every day for spray tans and tanning booth sessions.

    lthough the majority of their clients are, unsurprisingly, foreigners, Amato and the salon’s director of operations, Amy Oanchali, say around 30 percent are Asian, with Thais making up most of that figure.

    “Whitening is not for everyone,” Amato said. “When we did our research we knew there was not just a demand for tanning here, but a pent-up demand.

    “Tanning is huge in Hong Kong, Shanghai and Tokyo, so we saw Bangkok as the last bastion.

    “I think it’s cool that we’re the first to bring tanning salons to Thailand.”

    The salon’s minimalist look, overseen by Thai designer Nong, of gleaming white surfaces and tasteful black and white artwork dotting its three floors (a fourth will soon open), and its expensive tanning equipment imported from the States, are obviously geared towards more well-heeled clients, although prices are pretty decent — a stand-alone sunbed or booth session is THB799, and that price drops if you opt for a package. New customers get a promo price of THB299.

    The salon recommends new customers complete a short questionnaire which determines their skin type. Staff can then recommend tan session times, so customers can gradually and safely build up an even tan, they say.

    However Coconuts is obliged to remind readers of the risks associated with UV radiation and indoor skin tanning, which has been linked to some skin cancers.

    Amato and Oanchali are confident that they can grow their customer numbers and are even eyeing a second location in Silom.

    But first they want to focus on their flagship store in Thonglor and their customers there.

    “We’ve already got some regular customers who are so interesting and nice, we’ve been delighted,” Amato said.

    “We just want them have a killer experience.”

  • Hong Kong start-up PopUp Angels offers retailers Popup Stores

    Hong Kong start-up PopUp Angels offers retailers Popup Stores

    Hong Kong start-up PopUp Angels is offering a short-term alternative to retailers and landlords with pop-up store rentals as shop vacancies across the city continue to rise.

    Launched in November in Hong Kong, the PopUp Angels portal lets retailers, or food and beverage companies, test ideas and reach new markets without committing to a long contract.

    While demand from potential tenants is high, the city’s landlords are slowly coming round to the idea as their traditional model comes under threat from slumping retails sales.

    “Given that the retail market in Hong Kong has been doing so well in the past few years, it takes a while for the landlords to realise the golden age has passed and it’s time to find different ways to maximise the use of their vacant spaces,” said Kit Chan, director of PopUp Angels.

    Real Estate Agency Sheraton Valuers predicted the vacancy rate for ground floor stores in Causeway Bay to reach one in 10 in the wake of the recently ended Lunar New Year holiday.

    Retail sales recorded a year-on-year decrease of 3.7 per cent in 2015, hitting the lowest level since 2002, pushing many retailers to close stores.

    The start-up is aimed at companies testing a new idea or online retailers wanting to open a bricks and mortar store for a short period to boost their brands’ presence.

    PopUp Angels offer spaces to rent for any period from one day to up to a year, Chan said.

    Rental prices range from HK$3,000 (US$386) a day for a 375-sq-ft space in Central to HK$25,000 a week for two-storey location in the Western district.

    The start-up is also able to put potential tenants in touch with contractors and help guide them through any licensing issues.

    PopUp Angels was launched last September in Singapore, where the majority of vacant properties it lists are in shopping malls, according to Adrian Chan, who heads the operation in the Lion City.

    Melanie B, owner of Yoga BamBam, leases out the 375-sq-ft first floor space above her studio in Central through PopUp Angels to help with costs and to bring in some creativity.

    The former art gallery below PMQ – a design cluster on the grounds of the city’s former Police Married Quarters – was renovated with the goal of leasing the space as a pop-up by including internet access for card payment, a sturdy floor and lighting suitable for displaying art.

    “I don’t like stagnation, so the idea of a pop-up is that it changes every weekend, or every week,” she said.

    “So to have designer lingerie one week and then a hair product the next seems like a fun way to do it.”

  • Virtual reality in retail stores

    Virtual reality in retail stores

    Virtual Reality, as a concept, has been around for over 50 years.

    In the beginning, it was literally the stuff of science fiction.  Then in the early 90’s it actually became reality, when physical prototypes were developed, using the modern technology of the era.  The results were underwhelming – imagine pixelated graphics and heavy, nausea inducing headsets. The concept lay dormant for 20 years before anyone thought to revisit its feasibility.

    That person was Palmer Luckey, the young inventor and founder of Oculus VR. What he discovered is that without anyone realising it, technology had quietly caught up with the requirements of VR. There were now low-latency head orientation sensors and small, high-refresh rate OLED displays which didn’t exist just five years ago.

    Using these off the shelf parts, he constructed a rudimentary hardware proof-of-concept which delivered an immersive experience far beyond what had been seen before.

    From this initial prototype, Oculus was founded, bringing on board many high profile experts in the field of computer graphics, alongside millions of dollars in funding. Their inaugural consumer VR product is about to be released to the public, and many smart people consider this to be a watershed moment.

    Will this be the event that introduces practical VR to the masses?

    Oculus (now owned by Facebook) is leading the way, but Apple, Google, Microsoft and Sony are all working on their own implementations of VR. There’s a full-on VR technology arms race happening, with the usual suspects involved.  They recognise the huge potential of the medium, and the unique ways it can complement their existing product offerings.

    VR 2.0

    This new generation of VR technology is in its infancy, and as with any nascent platform, pundits try to predict the types of experiences it will enable. Stereotypically, new mediums are often projected (interpreted) through the lens of the incumbent platforms which precede it.

    The first automobile was considered a “horseless carriage”. The first motion picture content was essentially just televised theatre. Simply re-imagining the experience of an old medium through a new one may be the path of least of resistance, but it ignores the unique elements of the new.

    So the theory goes, in order to fulfill its true potential, a new medium needs to abandon previous biases and embrace the characteristics and constraints which are unique to it.

    But does this calculus apply to VR? Perhaps not. Unlike all previous mediums, it is has no baked-in constraints. It is not simply a proxy for storytelling or communication. Its ambition is to replicate the reality we natively experience. It is, by design, the last medium.

    The obvious question becomes, what are the scenarios for which diving into an alternate reality becomes preferable to the “real” reality someone is experiencing. As mature as the underlying technology becomes, VR, for the foreseeable future, will forever be chasing the tail of “real life”.

    So what is the individual incentive to temporarily replace what we already (if we’re so lucky) get for free? Understanding the motivations that drive these virtual experiences can uncover the opportunities and jobs to be done of the medium.

    Applications

    In the context of VR, the virtual “reality” is simply “content”. As with all previous mediums, the success of this one will be intrinsically tied to the abundance and quality of content created for it. In this respect, authors and the tools they use to create with will be just as important as the technology that audiences use to consume with.

    These creation tools are also nascent, and consist of both hardware and software solutions.  Let’s explore a potential use-case for this technology within the realm of current domains.

    Virtual reality in retail: eCommerce and virtual stores

    A common current trend in the eCommerce space is the realisation that an online presence alone is not enough to deliver the ideal consumer experience. Even Amazon, the largest pure-play online commerce company has recently opened a “bricks and mortar” physical presence near its headquarters in Seattle.

    What is the impetus for taking this step “backwards” into the 20th century? Well, these companies have discovered that even with an (essentially) limitless online catalogue, the experience of browsing their catalogues online doesn’t compare to the act of literally walking down the aisles of a physical store. It is no substitute for the physical discovery process we take for granted.

    This applies not only to the type of merchandise that Amazon became famous for, like books, but especially so for more visual products like clothing and fashion. There is no substitute for the tactile experience of wandering through a curated store.

    But providing a physical presence requires sacrificing one of the key advantages of online commerce; having an effectively infinite reach, with the ability to target any consumer, wherever they are, independent of their physical location. Reaching global penetration at this physical scale is beyond the reach of all but the largest retailers.

    Imagine consumers using VR to browse a virtual physical store, representing the catalogue (or a subset of) the online inventory. Even brands that have an existing physical retail footprint would benefit from the ability to amplify this bricks-and-mortar experience across markets they don’t have the scale or reach to address.

    Sizing has been an eternal struggle for online clothing retailers and consumers alike. How to know if the shirt you’re purchasing online will actually fit properly when it arrives?  Sizing charts are not standardised, and even if they were, there is no single reference body type to target a perfect fit.

    So how do you try before you buy? A virtual fitting room could come very close to replicating the experience of trying on clothes in a real physical fitting room. Imagine associating detailed physical dimensions of your body with your online shopping persona.

    Using this information, alongside similarly detailed sizing information for the individual clothing items could let you try on pieces of clothing in a virtual mirror. As you raise your arms or tilt your hips, you could see the fabric as it contours and hangs off your virtual body.

    Future opportunities

    This is just one creative application of VR hardware and virtual environments. The potential is almost limitless, and there isn’t a field or industry that won’t be touched in some way by this technology.

    While the incumbent hardware/software companies have all planted their stakes in the ground, there will be massive opportunities for all players in the ecosystem, especially content creators who understand how to create experiences on this new canvas.

    Once again, this illustrates the competitive advantage which exists for companies who can master the intersection of design and technology. Organisations who successfully combine these two disciplines will be in a unique position to benefit from the enormous future demand for virtual experiences.

    written by Marc Lamothe, Technical Director at Start Hong Kong

  • Clothing retailer Esprit reports first-half loss

    Clothing retailer Esprit reports first-half loss

    Esprit has been in the midst of an ambitious revamp over the past year that has included store closures, price adjustments, new return policies, and technology and distribution improvements.

    “Looking ahead into 2H FY15/16, we remain confident that we are heading in the right direction and are laying the necessary foundation to restore competitiveness and long term growth for Esprit,” the company said in its earnings report.

    Turnover at Esprit’s largest market, Germany, grew 1.5 percent year on year in local currency terms. Retail turnover grew 8.6 percent, while wholesale turnover declined 9.6 percent.

    Gross profit margin remained unchanged at 50.5 percent.

    “The weakness in the Euro, if persists, will put some pressure on the group’s gross profit margin,” the company said.

    Esprit, which earns the bulk of its revenues in Europe, said the operating environment appeared challenging amid volatile financial markets and economic uncertainty that might dampen consumer sentiment.

    Shares in Esprit closed up 2.9 percent on Tuesday, outpacing a 0.3 percent fall in the overall market.

  • SingPost GD Express sale to boost eCommerce

    SingPost GD Express sale to boost eCommerce

    Singapore Post (SingPost) has sold off part of its stake in GD Express (GDEX) for S$78.4 million (US$55.88 million) and will use the proceeds to drive global growth for its eCommerce logistics.

    This is a net gain of S$64 million – about five times return on the initial investment.

    Yamato Asia, a wholly owned subsidiary of Japanese transportation and forwarding group Yamato Holdings, has bought the 137,418,000 shares.

    Proceeds from the SingPost GD Express sale will be reinvested into its eCommerce services and networks in the US, Europe, China and the rest of Asia Pacific, in line with the group’s strategy to continue strengthening its integrated end-to-end eCommerce logistics, including front-end web management, warehousing and fulfilment, last-mile delivery and international freight-forwarding.
    SingPost deputy group CEO Mervyn Lim says the group is gearing up “on an accelerated path” to becoming a global leader in end-to-end eCommerce logistics.

    “This deal gave us a good return on our investment and also boosted our available resources to drive SingPost’s eCommerce logistics growth as it pivots into the US with the recent investments inTradeGlobal and Jagged Peak.”
    With interlinked systems with GDEX, the group will continue to reap business synergies with the added uplift Yamato brings to GDEX.

    “Collaborations and partnerships are vital to SingPost as we connect the dots in building a global eCommerce logistics ecosystem,” says Lim. “We continue to work with strategic partners in Malaysia and the rest of Southeast Asia while leveraging the Quantium Solutions commercial network, as well as those of our associated companies, to reinforce the ecosystem we are building.”

    SingPost now holds a 11.2 per cent strategic stake in GDEX and retains its board seat.