Retail News CRM

Tag: asia

  • Asians to invest more in properties beyond the region

    Asians to invest more in properties beyond the region

    Real estate markets in Asia will likely remain less appealing than those in the US and Europe this year, with Asia plagued by anaemic economic growth and waning rents and capital values amid a supply deluge.

    In a recent interview with The Business Times, CBRE head of global research Nick Axford flagged that there will be greater outbound capital flow from the region this year by Asian real estate investors, who snapped up some US$39.7 billion (S$55.3 billion) of properties outside the region last year, a 26.8 per cent jump from 2014.

    He said: “If you look at parts of Europe and North America, there is strong economic growth, recovering demand, rising rents and not much developments. In many Asian markets like Singapore and Hong Kong, it is almost the opposite – strong pricing, but weakening economic growth and demand.

    “The balance of attractiveness has shifted towards Europe and North America.”

    Asian investors invested US$14.3 billion in real estate within the region last year, a 12.3 per cent rise from 2014, going by CBRE’s preliminary estimates covering office, retail, industrial, hotel and mixed-use projects; the figures exclude residential projects and development sites.

    Rising interest rates will generally fuel upward pressures on capitalisation rates – the ratio of a property’s net operating income to its market value. With the spread between interest rates and property yields near historical highs in many markets in Europe, Dr Axford noted that it is possible that rising interest rates will be “absorbed” in the normalisation of spreads.

    Sovereign wealth funds (SWFs) in the region such as Singapore’s GIC have trained their eyes on Europe and North America as they re-balance their portfolios. CBRE estimates that some US$8.1 billion was invested outside the region by Singapore-based investors, compared to the US$6.6 billion they ploughed into properties within the region.

    Based on preliminary data from real estate data and analytics firm Real Capital Analytics (RCA) as at Jan 12, Singapore-based investors purchased a record US$26.3 billion in overseas real estate in 2015, up 49 per cent from US$17.6 billion in 2014.

    These outbound Singaporean investments were driven by big-ticket purchases by heavyweights such as GIC and Global Logistic Properties (GLP), Temasek Holdings, Mapletree, ARA Asset Management Group and Ascendas Real Estate Investment Trust.

    RCA’s database covers transactions above US$10 million in asset classes such as development sites, office, industrial, retail, apartment, hotel and serviced apartments.

    Dr Axford said that while rental declines are seen across all property segments in Singapore, investors can make opportunistic buys with a time horizon of five to 10 years.

    In Hong Kong, the retail and logistics segments have softened; the office sector is holding up. Last year, Hong Kong Central Business District office rents rose 14 per cent, with prime office rents hovering at levels more than double those in Singapore.

    Dr Axford said: “There is still demand from the Chinese in good-quality office space in central Hong Kong. We are expecting rental growth of 5 to 10 per cent for Hong Kong office this year.”

    He views the recent volatility in the Chinese stock markets as an over-reaction to negative news from China – even though there has been no significant change to its economic outlook over the past six months.

    But with the probability of further weakening of the renminbi against the greenback, there will be sustained interest from Chinese investors wanting to put their capital to work outside China, in European and North American real estate, he added.

    Capital outflow from China was evident last year. CBRE’s estimates indicate that real-estate investments outside Asia by Chinese investors jumped 35.9 per cent to US$13.1 billion, against a 7.5 per cent drop to US$9 billion which they sank into domestic real estate.

    Lees ook:

    Lees ook:

  • Hong Kong stocks extend sell-off as banking giant HSBC tumbles to 7-year low

    Hong Kong stocks extend sell-off as banking giant HSBC tumbles to 7-year low

    Hong Kong stocks closed at their lowest level since mid-2012 on Friday, extending steep declines from the previous day in a holiday shortened week, as index heavyweight HSBC tumbled to a seven-year low after the company decided to scrap a pay freeze plan aimed at cutting costs due to staff protests.

    The Hang Seng Index was down 1.2 per cent or 226.22 points at 18,319.58, the lowest close since June 2012. The index fell 3.9 per cent on Thursday after returning from the three-day Lunar New Year break, posting the worst loss to start a Chinese new year since 1994.

    For the week, it was down 5 per cent.

    So far this year, the Hang Seng Index has plunged more than 16 per cent, already more than doubling the annual loss of 7.2 per cent it rang up in 2015.

    The Hang Seng China Enterprises Index, or the H-shares index, settled 2 per cent lower at 7,505.37.

    Sino-British banking giant HSBC Holdings, one of the most-widely held stocks by Hong Kong retail investors, tumbled 2.7 per cent to HK$48.1, the worst level it has seen since April 2009.

    HSBC’s chief executive Stuart Gulliver wrote Thursday in a memo that the company would drop a pay freeze announced recently to cut costs, following feedback from its employees.

    Gulliver said the company would use the cash from the 2016 bonus pool to fund the pay rises, while also expressing his concerns for the bank’s revenue outlook in 2016 due to uncertainty around the global growth outlook and the interest rate environment.

    Among other market movers, Asian life insurer AIA Insurance fell 2.4 per cent to HK$37.25, and Chinese online major Tencent Holdings dropped 1.9 per cent to HK$133.3.

    Ben Kwong Man-bun, executive director and head of research of KGI Asia, said the Hong Kong market lacked clear direction and was taking its cue from hobbled overseas markets.

    “The global equity market is still under selling pressure. It’s because of the fearful sentiment of investors. They prefer to hold cash rather than assets,” Kwong said.

    The broader weakness in regional markets also added to the selling pressure on Hong Kong stocks. Japan’s Nikkei Average finished below 15,000 for the first time in 16 months, down 4.8 per cent at 14,952.6, as the yen, a traditional safe-haven currency, soared against the US dollar.

    On Thursday, global stocks entered a bear market, as the MSCI All-Country World Index, a gauge of global stock markets, had fallen more than 20 per cent from its most recent high in May 2015. US and European equities both took a hard hit, spurred by heavy selling in the banking sector on worries negative interest rates and low economic growth could hurt banks’ earnings.

    Going forward, analysts said stock markets still face a battery of threats ranging from slow growth, interest rate uncertainty, emerging market turmoil and heightened bad loan risks.

    “The global economy is really weak. Even after they did quantitative easing, it seems the central banks have failed to stop the slowdown,” Kwong said.

    However, Macau casino stocks bucked the weak trend, after Wynn Macau reported its operating revenues dropped by a less-than-expected 37 per cent in the fourth quarter of fiscal 2015. Shares of Wynn Macau jumped 3.6 per cent to HK$7.77, rival Galaxy Entertainment climbed 3.1 per cent to HK$23.25, and Sands China advanced 2 per cent to HK$24.75.

    Offshore oil producer CNOOC also recovered 0.4 per cent to HK$7.48 after crude futures bounced back in international markets.

    Chinese stock markets were still closed for the holiday on Friday and will reopen on Monday.

    However, some analysts expressed concerns A-shares may catch up with the global stock rout and fall sharply when they start trading next week.

    “It’s concerning,” said Li Tao, an analyst for Citic Securities. “The external markets were quite volatile during the Chinese new year break, particularly in the US, where stocks continued falling. The depressed state of the global economy may have a negative impact on the A-shares market.”

    Lees ook:

    Lees ook:

  • Korean Manufacturers Witnessing More and More Idle Production Facilities

    Korean Manufacturers Witnessing More and More Idle Production Facilities

    It has been found that Korean manufacturing companies’ rate of operation reached a record low since the IMF bailout in 1998 due to the sluggish exports and domestic consumption.

    Under the circumstances, the manufacturers’ investment is forecast to decline to cause an increase in unemployment and the slowdown of the national economy as a whole.

    The Statistics Korea announced on February 11 that Korean manufacturers posted an average rate of operation of 74.2% last year, down 1.9 percentage points from a year ago, with their exports showing no signs of recovery amid the global economic recession. The percentage of 2015 was the lowest since 1998.

    According to the Bank of Korea, Korea’s total exports decreased by no less than 10.5% year-on-year to US$548.93 billion last year. Besides, Korea’s exports to the emerging markets including China, which account for 60% of the total exports, showed a decline of 7.9% in 2015.

    Sluggish domestic consumption is another reason for the low operating ratio of the manufacturing firms. According to the Statistics Korea’s report that was released on January 29, Korea’s retail sales index fell 1% from a month ago in November last year and 0.1% in the following month.

    Lees ook:

    Lees ook:

  • Rakuten to shut Singapore website, cuts 30 local staff

    Rakuten to shut Singapore website, cuts 30 local staff

    Japan’s largest online retailer Rakuten is closing its Singapore website after two years, and trimming its staff.

    On Friday, the fifth day of Chinese New Year, about 30 local employees were given the pink slip .

    While the company will continue to keep its regional HQ here, a notice on the website posted on Friday evening said no new purchases can be made from its online portal from next month.

    Earlier that afternoon, around 30 staff at its Market Street office at Raffles Place were told that they would be laid off. They included sales, marketing and customer service staff who were directly involved in running the website.

    They were among the 150 employees who were laid off in Singapore, Malaysia and Indonesia. The company is closing its websites in the other two countries as well.

    Most of the Singapore staff were told to immediately return their staff passes, and their e-mail accounts were deactivated on the spot. They were escorted out of the office and told that they did not need to turn up for work any more, said a source.

    “All were in shock,” the source said. “They were told that Friday was their last day (of work).”

    A handful can continue to work until the end of the month, when the website finally goes offline.

    The Sunday Times understands that the individual severance packages are tied to how long the staff have worked there. The company will make the payouts only next month.

    When contacted yesterday, a Rakuten spokesman in Japan declined to give details of the Singapore retrenchments, but he said that the firm will compensate workers “above and beyond legal requirements” and help them find jobs.

    Rakuten Group, which is listed on the Tokyo Stock Exchange, announced in Japan on Friday a five-year business plan that includes overhauling its business model in South-east Asia by closing down its online retail websites and starting a customer-to-customer trading application.

    Experts were surprised that the retrenchments were carried out over the Chinese New Year celebrations that span 15 days.

    “We usually tell unionised companies to avoid retrenchments during festive seasons. This is good industrial relations practice,” said labour MP Patrick Tay, who chairs the Government Parliamentary Committee for Manpower.

    The firm is not unionised but the affected professionals, managers and executives can turn to the National Trades Union Congress (NTUC) for job placement help, said Mr Tay, who is NTUC’s assistant secretary-general.

    “The timing is a little brutal,” said Singapore Human Resources Institute president Erman Tan, adding that the speed at which retrenched staff were shown the door within hours was “very fast”.

    “This reflects the culture of the e-commerce sector. Things move very fast online and perhaps retrenchments too,” said Mr Tan.

    Association of Small and Medium Enterprises president Kurt Wee said the retrenchments signal the start of a phase of consolidation by companies as they respond to the global slowdown and local economic conditions.

    “When companies consolidate, some staff retrenchments are inevitable,” said Mr Wee.

    Lees ook:

  • HSBC setting up local subsidiary to handle retail and wealth business

    HSBC setting up local subsidiary to handle retail and wealth business

    HSBC’s Singapore branch is spinning off its retail banking and wealth management division into a local subsidiary.

    This locally incorporated unit, which will be operational from May 9, will oversee the running of all operations of the retail banking and wealth management business here.

    All other lines of business of HSBC in Singapore, which include commercial banking, private banking and global banking and markets, will continue to operate under the existing Singapore branch.

    Mr Guy Harvey-Samuel, HSBC’s chief executive officer for Singapore, said the move reflects the success of the bank’s retail business here.

    “More importantly, this move demonstrates HSBC’s strong and long-term commitment to the Singapore market,” he added.

    “Singapore is a top-seven priority country for the HSBC Group globally and we will continue to invest in our business here. We are excited about new opportunities to further expand our presence.”

    The move to locally incorporate the retail banking and wealth management business follows an announcement by the Monetary Authority of Singapore (MAS) in April last year that HSBC is considered one of seven domestic systemically important banks in Singapore.

    Such banks could have a significant impact on the Singapore financial system’s stability and the proper functioning of the broader economy.

    All banks here have to undergo an annual assessment of their systemic importance.

    Banks with a significant retail presence are required to locally incorporate their retail operations.

    In line with this, HSBC’s new subsidiary will be subject to additional MAS regulatory requirements aimed at strengthening the resilience of the banking system and boosting protection of retail customers.

    The subsidiary will hold a full bank licence with qualifying full bank privileges. These privileges include being able to open more branches than other foreign banks.

    Qualifying full banks are also allowed to conduct the full range of banking businesses permitted under the Banking Act, including taking retail deposits.

    Once the new subsidiary is up and running, it will be business as usual, HSBC said.

    Mr Matthew Colebrook, the head of retail banking and wealth management for HSBC in Singapore, added: “Our customers remain central to HSBC and we will ensure that the transfer of customer accounts to the subsidiary is a seamless and largely behind-the-scenes process.

    “More broadly, HSBC aims to be a primary bank for affluent and aspirant Singaporeans and those with international needs.”

    Lees ook:

  • Wing Tai’s Q2 net profit falls 85% to $1.08m

    Wing Tai’s Q2 net profit falls 85% to $1.08m

    Earnings plunged 85 per cent at developer Wing Tai Holdings in the second quarter due to the absence of a one-off gain in the corresponding quarter last year.

    The group had recorded a gain of $21.1 million on the disposal of a property subsidiary in Indonesia in the same period a year ago.

    Net profit this time came in at $1.08 million for the three months to Dec 31 while revenue fell 5 per cent to $120.6 million.

    The decline in turnover was due mainly to progressive sales of units recognised from The Tembusu, additional units sold at Le Nouvel Ardmore in Singapore, The Lakeview in China as well as contribution from Phase 2 of Jesselton Hills in Penang.

    The group’s share of profits from associated and joint venture companies fell by 25 per cent to $15.8 million, largely due to the lower contributions from Wing Tai Properties in Hong Kong.

    Distribution expenses fell 20 per cent to $22.2 million from $27.7 million due to lower rental and depreciation from its Singapore retail outlets. Administrative and other expenses rose 12 per cent to $23.8 million from $21.3 million a year ago due to the closure of Singapore retail outlets.

    Earnings per share tumbled to 0.40 cent from four cents, while net asset value per share rose to $4.09 as of Dec 31 from $4.07 as at June 30.

    No dividend was declared.

    The firm said the effect of the cooling measures will continue to weigh on market sentiment here this year while economic conditions in Malaysia will likely keep sales soft.

    In China, residential sales are expected to improve with the relaxation of home purchase restrictions in certain cities.

    Wing Tai shares closed 0.3 per cent or 0.5 cent up to $1.525 yesterday.

    Lees ook:

  • HKIA celebrated the new Year of the Monkey

    HKIA celebrated the new Year of the Monkey

    Hong Kong International Airport (HKIA) is celebrating the Year of the Monkey with a series of promotional activities and offerings, including cash coupons for shoppers of up to HK$5,000 ($642).

    From today through to February 15, travellers spending over HK$2,000, HK$5,000, HK$10,000 and HK$50,000 by electronic payment can redeem HKIA cash coupons of HK$100, HK$300, HK$700 and HK$5,000 respectively.

    Airport Authority of Hong Kong adds that during this period ‘designated retailers’ will also offer free red packet redemption on a first-come-first-served basis.

    Commenting on the promotion, Airport Authority stated: “To spread the festive joy, HKIA’s mascot will dress in the Year-of-the-Monkey costume at Terminal 1 of HKIA and will send warm blessings to travellers by giving out specially-designed Fai Chuns [traditional decorations-Ed] for free.

    “The joyous atmosphere can also be experienced on Level 6 of the Departures East Hall, where travellers will find a grand display box with a special selection of Chinese New Year products and an interactive-game booth.

    “Passengers with boarding passes and any purchase receipt from HKIA can participate in the game. Among the top of [more than] 12,000 prizes are suitcases, massagers and necklaces, while others include HKIA cash coupons and HKIA red packets.”

    Chinese New Year traditions that will also be celebrated include lion dances and various musical performances over the two-week period.

    In addition, HKIA is also offering a free local delivery service for all travellers spending over HK$1,000 in a single transaction at HKIA. Free delivery also applies to Mainland China, Macao and Taiwan for travellers spending more than HK$2,500 on clothing, bags and accessories in a single transaction.

    Lees ook:

  • HSBC to locally incorporate its Singapore retail operations in May

    HSBC to locally incorporate its Singapore retail operations in May

    In order to follow new MAS regulations.

    HSBC will transfer its local retail banking and wealth management business, which is currently under the HSBC Singapore Branch, to a locally incorporated subsidiary, HSBC Bank (Singapore) Limited.

    The transfer of HSBC’s retail banking and wealth management business is expected to take effect on 9 May 2016, subject to the receipt of regulatory and court approvals.

    The move comes after Monetary Authority of Singapore tagged HSBC as one of seven domestic systemically important banks (D-SIBS). Under a new regulatory framework announced in April 2015, all D-SIBS should locally incorporate their retail operations to allow the MAS to set targeted and appropriate policy measures specifically for the systemically important banks.

    The other D-SIBS are DBS, OCBC, UOB, Citibank, Malayan Banking and Standard Chartered.

    Lees ook:

    Lees ook:

  • Fall in JLR sales in China dents Tata Motors’ Profits

    Fall in JLR sales in China dents Tata Motors’ Profits

    Tata Motors – the owner of Jaguar Land Rover – said today that net profit for the last quarter fell by 2%, hit by lower JLR sales in China. This was better than many analysts had expected.

    JLR’s retail sales in China fell by 10% percent in China in the period. Local production of Range Rover Evoque and Discovery Sport SUVs in China and the ending of an annual tax rebate there also lowered margins, JLR said.

    But strong JLR sales in Europe and North America offset the slowdown in China. The firm posted a near 50% increase in US and European sales, with sales up by 47% in the UK. Other overseas markets were up 6% overall. In volume terms it was the firm’s best ever quarter.

    Total revenues were £5.8 billion, 2% down on the same period of in 2014. JLR reported Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) of £834 million, representing an EBITDA margin of 14.4% for the quarter (up from 12.2% in the previous quarter, which pleased analysts), although this was still down from a near 20% in earlier quarters.

    Profit Before Tax came in at most £500m, including a £30 million favourable exceptional item relating to the initial insurance payments for thousands of cars damaged in the 2015 Tianjin Port explosion.

    This compares to a profit before tax figure of £685 million for the same period of 2014. Yet the £500m figure was still a good result as it was up significantly from the (exceptional) pre-tax loss that the firm reported in the previous quarter.

    The challenges that JLR faced in China in 2015 have been the subject of recent Birmingham Post blogs, see here for example.

    Despite opening a new plant operating in China in late 2014, the firm saw a sharp decline in sales there in 2015 as the economy cooled and the impact of the stock market crash was felt on premium car sales. China accounted for about a quarter of JLR’s retail sales in 2014 and a much higher proportion of its profits given the high prices the firm had been able to command there.

    Despite the Chinese slowdown, JLR still has impressive growth potential according to many analysts. Its new products – including the Discovery Sport, XE and XF, are expected to drive strong growth and profits. And the Chinese premium market is already showing signs of picking up.

    New models will help. For example, Jaguar will launch its F-Pace ‘crossover’ (or SUV) model shortly, which could really boost Jaguar sales in the US and China. The SUV/crossover market is set to expand rapidly in coming years around the world. Even in China, while car sales rose slowly at the back end of 2015, SUV sales jumped. The F-Pace may be just the first of a range of Jaguar crossovers.

    JLR wants to release some 50 new or updated products over the next five years and recently signed a deal to build a new plant in Slovakia. JLR does not publicly discuss long-term sales goals, but it’s thought to want to achieve at least 1m in sales by 2020 — which would be about half the current annual volumes of BMW. JLR is on course to top 500,000 sales this fiscal year.

    What’s important here is that the firm now has strengths across different markets and with its impressive product line up, can – probably for the first time in its history – ride out shocks in different parts of the world. There’s no room for complacency, of course; indeed the Chinese slowdown in part stimulated the launch last year of an ambition cost reduction programme at the firm, as part of a programme called ‘Leap 4.5.’

    Overall, after a difficult period in mid-2015 owing to the sharp slowdown in the Chinese premium auto market, Jaguar Land Rover (JLR) has returned to form on latest figures.

  • Worst post-Lunar New Year sell-off in 22 years

    Worst post-Lunar New Year sell-off in 22 years

    The Hong Kong stock market saw the worst post-Lunar New Year session in 22 years on Thursday, a day after U.S. Federal Reserve chair Janet Yellen confirmed fears of a global slowdown in her testimony to Congress.

    Yellen raised the likelihood that U.S. interest rate hikes will be put on hold and possibly even cut over concerns about external risks to the U.S. economy and convulsions across stock markets worldwide.

    “Foreign economic developments, in particular, pose risks to U.S. economic growth,” said Yellen, referring to the debilitating effects of China’s economic slowdown, most remarkably, in dragging commodities prices down.

    On the back of those comments, the Hong Kong bourse reopened after a three-day break to a sharp sell-off, with the benchmark Hang Seng Index shedding 3.8% to close at its lowest level since June 2012 at 18,545.80. The Hang Seng China Enterprise Index of Hong Kong-listed mainland companies fell 4.9% to end at 7,657.92.

    The city’s blue chips fell almost across the board, with technology company Lenovo Group, which recently posted disappointing top-line growth, leading the decline with a 6.7% drop to 6.35 Hong Kong dollars.

    Financials and oil stocks bore the brunt of the selldown. China Life Insurance slumped 6.6% to HK$16.44. Other insurers such as Ping An Insurance Group and AIA Group lost 5.6% at HK$39.15 and 3.7% at HK$37.95, respectively.

    HSBC fell 5.44% to HK$49.50. Its Chinese counterparts Agricultural Bank of China, China Construction Bank, Bank of China, and Industrial and Commercial Bank of China all dropped about 4% over worries about a mounting credit crisis on the mainland.

    China’s largest oil refiner China Petroleum & Chemical (Sinopec) skidded 6.4% to HK$4.10, while other mainland energy giants, PetroChina, CNOOC and China Shenhua Energy slipped more than 5%.

    Of all the property stocks, China Vanke took the deepest plunge to close 8.92% lower at HK$1.58, while China Overseas Land & Investment was down 4.3% to HK$21.10.

    Consumer stocks such as Belle International, Hengan International and Tingyi Holding all lost around 6%. A fierce riot in Mongkok, one of the most popular shopping districts in Hong Kong, during the holidays has hurt sentiment toward the city’s already-battered retail sector.

    Mainland internet and telecom heavyweights such as Tencent Holdings and China Mobile were not able to escape the selling pressure, falling 5.4% to HK$136.10 and 3.1% to HK$82, respectively.

    Bad news from China also contributed to the sell-off. Before the holiday, the People’s Bank of China reported that the country’s foreign exchange reserve had fallen to $3.23 trillion in January, the lowest level since 2012, depleted by the central bank’s defense of both its currency and stock market.

    On Wednesday, Yellen’s comments were scrutinized for clues about future interest rate direction. She said that “monetary policy is not on a pre-set course,” suggesting that a rate cut could be considered if necessary. Overnight, the Dow Jones Industrial Average and the S&P 500 indexes ended slightly down, posting their fourth consecutive day of losses, while the Nasdaq ended three days of decline.

    Investors looking for safe havens in the risk-off environment pushed the spot gold price up to $1,207.6, the highest level since May 22.

    While mainland China and Taiwan markets remained shut for the Chinese New Year holiday until next week, most bourses across Asia faltered.

    South Korea, which also reopened after a long Lunar New Year break, saw its benchmark Kospi Index lose 2.9%. Singapore’s Straits Times Index and Thailand’s SET index dropped 1.7% and 1.84%, respectively. India’s Sensex Index closed 3.3% lower to its weakest level since May 2014.

    The Indonesian and Philippine markets were the only ones bucking the trend, rising 0.9% and 0.3%, respectively.

  • Regent Asia eyes double-digit growth in busy 2016

    Regent Asia eyes double-digit growth in busy 2016

    Regent Asia Group Ltd is anticipating a strong increase in duty free revenue over the next few years and expects to double sales by 2018. With the company’s number of luxury duty free brand boutique outlets due to grow quickly over the next 12 months, Regent Asia is targeting a double-digit increase in duty free revenue this year following a Q4 2015 upturn.

    Last year’s duty free revenue growth follows a flat year in 2014 due to the first quarter impact on the Philippines tourist industry of super Typhoon Haiyan Yolanda that struck the central Visayas region on 8 November, 2013.

    After reaching an estimated US$45m in 2015, duty free sales are expected to rise this year as new airport and downtown arrival duty free stores begin trading.Regent reported total travel retail revenue of about US$60m in 2014 by its subsidiary Landmark companies, of which two thirds was generated by duty free sales and one third from duty paid travel retail operations.

    “I predict we will double our duty free sales by the end of 2018,” Regent Asia Group Ltd Managing Director, Jose Maria ‘Chim’ Esteban told TRBusiness.

    “Currently we are 60% perfume and cosmetics and 40% fashion but probably fashion growth will be stronger as we will have more brands with our luxury downtown store opening; the T3 landside downtown store will include aspirational fashion brands.”

    Manila-NAIA-T1-departure-2-Regent-Asia

    Regent Asia departure stores at Manila Airport’s T1.

    The duty free market in the Philippines appears to be on the cusp of a very productive period, with new projects initiating all over the Southeast Asian country. These include airside and landside duty free shops and boutiques at Manila’s Ninoy Aquino International Airport and the planned opening of the capital’s first luxury downtown duty free store in early 2017.

    Manila-Airport-T2-departure-2015

    “Currently we are 60% perfume and cosmetics and 40% fashion but probably fashion growth will be stronger as we will have more brands with our luxury downtown store opening; the T3 landside downtown store will include aspirational fashion brands,” says Chim Esteban.

    New facilities scheduled to open in Manila Airport this year include a parade of luxury boutiques in Terminal 3 and the first phase of Duty Free Philippines’ new T3 landside downtown duty free arrival store.

    Close to the airport, work continues on upgrading facilities at Duty Free Philippines’ Fiesta Mall downtown duty free arrival shop, as reported in the January issue of TRBusiness. Elsewhere outside the capital a number of new duty free and tax paid travel retail outlets are preparing to open in some of the Philippines’ smaller provincial international airports.

  • The power of Western brands in China

    The power of Western brands in China

    Jimmy Choo increased their annual global revenue in 2015 by 7 per cent to £318m thanks in part to its eight new stores in China.  This demonstrates the continuing popularity with western brands in the country. Retail sales in China for December 2015 were up 10.1per cent year on year despite the worries about the overall economy as the nation continues to be a hotbed for retailers.

    To sell successfully online it is critical that retailers offer a localised online service for the country, as 32 per cent of Chinese consumers’ state they shop online to access a wider range of brands, highlighted particularly amongst those who live away from the major cities.  This is key given the vast size of China.

    And we know they love to buy from abroad. A recent payments report stated that thirty-five per cent of online shoppers in China are now buying cross-border.  This is driven by consumers wanting the guarantee of high quality goods that is ensured from buying direct from foreign brands. This quality assurance is the reason that 51 per cent of consumers in China use eCommerce. For businesses, developing a direct eCommerce strategy reinforces this brand integrity, while offering a localised  website for the Chinese economy allows for convenience, easy access and simple payment acceptance.

    Andy Muldoon CEO of PowaWeb, a leading eCommerce provider to global retailers’ comments: “It’s great to see how resilient the Jimmy Choo brand has been in the Chinese market, yet by adopting a direct online retail approach, they can also significantly increase their potential consumer-base. With the high-street store having a relatively limited reach due to the size of the country, retailers must take full advantage of the penetration rate of online shopping which stands at roughly 55.7 per cent.”

    Online purchasing in China is not limited to low-cost goods, on average 17 per cent of consumers spent RMB1515 on their most recent purchase, with another 17 per cent having spent at least RMB2000 on a single product. With total eCommerce sales about to reach $1 trillion in China by 2019, it is of vital importance that retailers establish their strategy and avoid falling behind competitors in this fast growing market.

    Andy Muldoon continues: “With such large amounts being spent online in China, retailers need to offer a direct to consumer eCommerce solution that compliments the brick-and-mortar stores to create a dedicated omni-channel environment for their consumers. To not offer this is damaging to retailers  particular as the rising middle-class are often the biggest spenders on high-quality products, are located away from the major cities.”

    Lees ook:

    Lees ook:

    Lees ook:

  • $100m deal for RedMart?

    $100m deal for RedMart?

    A $100 million investment aimed at funding pan-Asian expansion is on the cards for Singapore’s online grocer RedMart.

    Discussions involving the Series C investment are said to be at an advanced stage, reportsTechCrunch, citing two sources. While closure is expected in this first quarter, the grocery company has not issued any public comment on the development.

    Launched in late 2011 by Vikram Lupani, Rajesh Lingappa and Roger Egan, the venture introduced online and on-demand shopping in Singapore. So far, the company has raised $55.1 million from 19 investors. These include, according to Crunchbase, gaming company Garena, SoftBank Ventures Korea, Visionnaire Ventures and Facebook co-founder Eduardo Saverin.

    In August, RedMart raised a $26.7 million bridging round from its investors.

    Potential targets for RedMart’s expansion include Hong Kong and Jakarta, reports DealStreetAsia. However, the firm wants to establish its market leadership in Singapore, where Egan estimates the grocery market to be worth $16 billion a year. The company’s strategy is to maintain its own logistics system and warehouses so as to have greater control of the customer service cycle and enable rapid expansion later into other verticals.

    RedMart’s Asian competitors, HonestBee and HappyFresh, have raised significant equity financing and have adopted a model relying on third-party logistics and delivery services while expanding across South-east Asia and establishing a presence in Hong Kong and Taiwan, says DealStreetAsia.

    Lees ook:

  • Thailand gains DHL eCommerce

    Thailand gains DHL eCommerce

    Thailand has been identified as a key market in Southeast Asia for the launch of the DHL eCommerce domestic delivery service.

    The end-to-end service for Thai eCommerce merchants offers next-day delivery to key urban centres with an easy-to-use portal for preparing shipments and full tracking visibility for consumers. It has been introduced as Thailand’s eCommerce market gathers strength.

    DHL eCommerce, a division of global logistics company Deutsche Post DHL Group, says it aims to enable a better eCommerce experience for both consumers and merchants through efficient logistics and a seamless online shopping experience.

    Major additions will be made to DHL’s delivery infrastructure in the country, including a 3000 sqm central distribution centre in Bangkok and a network of more than 20 depots throughout the nation to ensure full coverage.

    DHL plans to more than double the number of depots in Thailand by next year, and expand its fleet, primarily using two-wheel vehicles to deal with the traffic in major cities.

    DHL eCommerce’s fleet of vehicles will provide next-day delivery to all urban areas, and a two- to three-day delivery to other locations. All merchants have access to cash on delivery (COD) with daily remittance and access to a multilingual call centre.

    Launching in Thailand is seen by the company as a showcase for Strategy 2020, the corporate strategy of Deutsche Post DHL Group, which has renamed its mail division as “Post – eCommerce – Parcel”. DHL has been in Thailand since 1973 with its other business units – DHL Express, DHL Global Forwarding and DHL Supply Chain.

    “The Thai eCommerce market is expected to more than triple in size to EUR 3.6 billion ($3.94 billion) between now and 2020, and with this investment we are well positioned to support the growth of eCommerce businesses in Thailand,” says DHL eCommerce CEO Thomas Kipp.

    “We see major strategic opportunities for eCommerce growth in Thailand, particularly with the ASEAN Economic Community, which is expected to increase the movement of goods within the region.

    “Despite eCommerce already being a billion-dollar sector with extremely rapid adoption, Thailand’s share of the market is still relatively low compared to other high-growth economies,” says DHL eCommerce Asia Pacific CEO Malcolm Monteiro. “Only 1.7 per cent of total sales in Thailand are from eCommerce, compared to more than 10 per cent in China.

    “Thailand is ranked as one of our top-priority markets in South-east Asia: its expected annual market growth of more than 20 per cent (from 2014 to 2020) is likely to be largely driven by significant numbers of SMEs beginning to extend their business models into online marketplaces.”

    DHL eCommerce Thailand MD Kiattichai Pitpreecha says businesses need logistics services that keep up with extremely rapid changes in consumer expectations.

    “This makes the need for a tailored eCommerce delivery service greater than ever before so merchants, especially SMEs, can focus on their core business and grow faster.”

    Monteiro says the company’s success in India and China have proven that customer service bolstered by robust and scalable end-to-end delivery networks are essential for winning eCommerce market share.

  • GrabJobs Launches Singapore’s First Job Review App for Part-Timers

    GrabJobs Launches Singapore’s First Job Review App for Part-Timers

    Singapore’s tight labour market has resulted in Retail, F&B establishments and event organizers facing issues of inconsistent service levels.  To cater to the demand for reliable and capable part-timers, Emmanuel Crouy, Mark Melo and Ke Liang co-founded review app GrabJobs which was launched last month. A first in Singapore, GrabJobs’ objective is to offer a rating and review system for each part-timer that completes a job with a designated employer.

    “One of the major pain points of the F&B industry in Singapore is finding reliable staff,’ says Emmanuel Crouy, co-founder of GrabJobs who has investments in several F&B establishments and understands the predicament that the industry faces with regards to hiring part-timers. With this new app, every employer who engages a part-timer will review their performance once their assignment is completed.

    Job seekers can view available jobs in real time and filter them by type of industry, schedule, salary and location. Upon receiving applications for a job posted on the app, employers are able to filter out non-performing part-timers based on reviews and ratings, along with other filters such as years of experience and visa status.

    To incentivize part-timers to perform better, GrabJobs offers cash bonuses when part-timers complete five jobs that are rated positively. This is a unique feature of GrabJobs, which similar apps in the market currently do not offer.

    The system works for both employers and job seekers – not only does it enable employers to hire reliable staff quickly, but it also enables part-timers to make more money than they normally would when they perform well.

    Another key feature of the app is the automatic reposting of jobs when a staff cancels. “Another pain point for employers is staff not showing up for work” says Emmanuel Crouy. GrabJobs tackles this issue with regular notifications sent to hired Part-Timers reminding them of their upcoming job. In the event that they cancel it, the job is automatically reposted on behalf of the employer, allowing them to find an immediate replacement.

    There are currently over 6,000 restaurants in Singapore and this number is set to keep growing. Mark Melo, co-founder of GrabJobs says, “One of the major issues we see in the F&B and Events industries is staff retention and there isn’t an effective solution for the industry to resolve staffing issues. If a restaurant needed to resolve a staffing issue immediately, they would be limited to using a job board, which can get costly, or rely only on their own personal networks. In addition Job boards only work effectively if restaurants have lead-time in knowing they need extra manpower. It is this gap in the market that sparked the idea to create GrabJobs. “

    With the app now launched in Singapore, Emmanuel, Mark and Ke see big potential for it to grow regionally in countries such as Australia, Thailand, Malaysia, Indonesia and Hong Kong that have a vast and dynamic FB and Events scene.

    Singapore based companies and job seekers can now download the app for Android on the Google Play Store. The Apple iOS version is currently in development and launching in March.

    Statistics after 6 weeks of launch:

    Number of downloads: 2500+

    Part-Timers:

    • 1500 registered Part-Timers
    • Average age: 25 years old
    • 54% male / 46% female
    • 92 % Locals

    Employers:

    • 120 registered Employers
    • Famous brands: Starbucks, Salad Stop, Muddy Murphy’s Group, Brotzeit, Drinks & Co, Mex Out
    • Average response time from Part-Timers after a job is posted: 5 minutes