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Tag: asia

  • Amazon shores up logistics in China as its global delivery business

    Amazon shores up logistics in China as its global delivery business

    Amazon is expanding its logistics services into mainland China and other major shipping hubs to reduce logistics costs as it seeks to expand into the cross-border e-commerce market.

    This would see it take on domestic market leader Alibaba Group in the global cross-border e-commerce market, which is projected to reach US$1 trillion by 2020, according to data supplied by Accenture and AliResearch.

    However, its ambitions may be grander yet. One rumour doing the rounds this month maintains that Amazon has even begun leasing planes – under the radar, so to speak – to further its ambitions that may extend to taking on its current delivery partners like FedEx and the United Parcel Service.

    Seattle-based e-commerce juggernaut Amazon filed an application with the Shanghai Shipping Exchange last year that would allow its Chinese subsidiary, Beijing Century Joyo Courier Service, to serve as a shipping broker to countries in Europe, Japan and the United States.

    A broker takes care of cargo and customs issues on behalf of merchants so make sure goods reach their final destination.

    Amazon submitted a similar application to the US Federal Maritime Commission in November, allowing it to serve as a middleman for ocean freight services to other US-based companies that wish to export to other countries.

    These moves suggest the company is one step closer to becoming a transnational logistics and fulfilment hub, as outlined in a 2013 proposal to senior executives at the company, Bloomberg reported.

    Although Amazon deals with e-commerce, it does not hold its own inventory, similar to Chinese online retailer JD.com. Amazon largely taps merchants who wish to sell their products on its own platform.

    Merchants can choose to list their products and sell to customers directly from the site, or ship their goods to Amazon, which then fulfils orders on their behalf.

    By serving as a middleman in ocean freight, Amazon can tap the growing e-commerce cross-border market in China and the US by consolidating large volumes of cargo from merchants there.

    “The licenses that Amazon have received not only strengthens its own position as a fulfilment channel for its own cross border trade, but also allows it to act as a potential competitor to the likes of DHL, Fedex and UPS in delivery services,” said Michael Yeo, analyst at market research firm IDC.

    Amazon’s strategy in logistics is similar to that of its cloud computing business unit, Amazon Web Services. AWS was launched with the aim of fulfilling Amazon’s cloud computing needs but has since expanded into providing cloud services for other companies.

    “Much like how Amazon Web Services now provides cloud services to others, we can assume that Amazon has larger plans for its logistics services than simply for goods that are purchased directly on Amazon,” said Yeo.

    Amazon’s logistics strategy puts it head-to-head with Alibaba Group, which has also been aggressively expanding its logistics subsidiary Cainiao.

    Cainiao has struck partnerships with domestic and international logistics partners such as Singapore’s SingPost and the United States Postal Service for its cross-border logistics solutions.

    Meanwhile, Alibaba’s Tmall leads the retail e-commerce sector in China, wielding 58.6 per cent market share in the first quarter of 2015, according to data by iResearch.

    In contrast, Amazon China only held 1.1 per cent of the market, despite having its hand in the game since 2004, four years ahead of Alibaba’s Tmall launch.

    Doug Gurr, president of Amazon China, said the company was chasing areas where it has “unique competitive advantages” in satisfying local appetites for imported products.

    “We want to help Chinese customers gain easy access to high quality and authentic international products at fair prices around the world … and help sellers from China to grow their business globally,” he said.

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  • Benoy expands in Philippines

    Benoy expands in Philippines

    Global design company Benoy is expanding its portfolio in The Philippines, confirming five new commissions while completing two schemes.

    A studio of architects, masterplanners, and interior and graphic designers, Benoy has been working in the region for more than a decade.

    “The Philippines is one of the strongest economies in Southeast Asia, and it has been an incredibly dynamic market for Benoy,” says director Stephen Chow. “We have seen opportunities increase as the country grows and competes on an international scale.”

    Benoy’s growing order book is mainly concentrated in the metro Manila area. Working with such developers as Ayala Land and Filinvest, the firm is involved in multiple sectors using the full complement of its services.

    In the City of Taguig, Benoy has been appointed as podium architect and interior designer for West Super Block, the latest edition to the Bonifacio Global City integrated urban plan. The development will comprise a four-storey retail podium, an all-suite residential tower and a Grade A office block that will house The Philippines Stock Exchange.

    Benoy is also doing the masterplan and architecture for a Makati mixed-use development in the heart of Manila’s commercial and financial centre. The scheme includes a commercial podium, 15-storey office tower and 39-storey residential tower – one of the tallest in the district.

    In Balintawak, a gateway from the north into Manila, Benoy is delivering an 11ha mixed-use masterplan. At the intersection of two highways, the Balintawak Masterplan includes retail, residential, commercial offices and a hospital. It will also be a regional transportation hub. Benoy is also architect for the regional mall on the site.

    A mixed-use development in Manila’s Chinatown has also been appointed to Benoy. One Binondo will feature a four-storey podium and include “micro retailing” (a trading form popular in the district), a Grade A office tower, three residential towers with landscaped gardens, a clubhouse, pool and recreational amenities.

    Also, Benoy is working on a visionary redevelopment plan for Alabang Town Centre, a retail destination in southern Manila. As part of this development, the firm will also complete the architecture plus interior and landscape design of a Lifestyle Centre at the heart of the scheme.

    “We are thrilled to have such a diverse portfolio in the Philippines,” says Chow. “It is very exciting to have the opportunity to help shape the future of the country.”

    Meanwhile, Benoy has completed two projects in Quezon City, the U.P. Town Center and Fairview Terraces, both developed by Ayala Land.

    U.P. Town Center, at the University of The Philippines campus, combines indoor and outdoor retail, dining and commercial uses within a landscaped setting. Forty per cent of the 88,000 sqm site has been designated as open space. As masterplanner and architect, Benoy is overseeing the three-phase project, with the final phase due for completing this year.

    In the city’s north, Fairview Terraces is a 135,000 sqm mixed-use development led by retail. Over five levels, the mall has about 420 retailers and a “boutique” supermarket. The focal point is a landscaped central promenade surrounded by pocket gardens and al fresco dining. Benoy completed the architecture as well as interior and graphic design.

    During construction for both schemes, trees on the site were protected. In the case of Fairview Terraces, a long-standing mango tree sits at the centre of the development.

    Previously, Benoy has overseen an extensive renovation of Ayala Alabang Town Centre.

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  • Thai shopping An e-commerce boom in the making

    Thai shopping An e-commerce boom in the making

    Thailand could be in for an online shopping boom. The country’s telecommunications infrastructure, payment settlement systems and logistics have long been somewhat underdeveloped. For years, the situation has discouraged mall operators and shoppers from jumping into e-commerce.

    Toshiya Matsuo, chief executive of Ookbee Mall (Thailand), center, announces the launch of Ookbee Mall, an online shopping site, in Bangkok in October 2015.

    Toshiya Matsuo, chief executive of Ookbee Mall (Thailand), center, announces the launch of Ookbee Mall, an online shopping site, in Bangkok in October 2015.

    Now that market is finally starting to grow.  Tokyo-based transcosmos, an e-commerce solutions provider, in October collaborated with Ookbee, a Thai e-book store operator, to create the Ookbee Mall website. Toshiya Matsuo, chief executive of Ookbee Mall (Thailand), is excited about the company’s better-than-expected sales. “Japanese cosmetics and fruit that are difficult to get here are selling particularly well,” he said.

    Ookbee Mall sells some 90,000 items and hopes to have 1 million customers by 2018. Matsuo said the company aims to set itself apart with a unique lineup of Japanese items, thereby sidestepping fierce competition in the Thai e-commerce space.

    Slow to take off

    In 2009, Rakuten, Japan’s big e-tail platform, bought TARAD Dot com, one of Thailand’s oldest online marketplace operators. The acquisition encouraged Thai communications conglomerate True Corp. and other parties to also get into online retailing in Thailand.Lazada of Germany landed in the country in 2012, and China’s Alibaba Group Holding came in 2014.

    START TODAY, the Japan-based operator of apparel retail website Zozotown, is a new contestant for Thailand’s Web shoppers. It recently formed a capital tie-up with Thai online clothing specialist WearYouWant Holdings.

    The market, however, has been slow to take off. Blame that on Thailand’s creaky mobile infrastructure and lack of reliable settlement services.

    To get things moving, Lazada at the end of last year established its own distribution centers.

    Watch your e-wallets

    In January, Deutsche Post DHL Group created a division to deal with domestic deliveries of online purchases at its Thai unit. The carrier has also built a distribution center in Bangkok. It plans to double the number of its Thailand delivery depos to more than 40 by 2017. The network offers next-day deliveries in Bangkok and surrounding areas. Elsewhere, it shoots for completing deliveries within three days.

    Another spur to online shopping is faster wireless communications. Political turmoil had halted the bidding process for fourth-generation mobile spectrum, but at the end of last year several auctions were held. A Thai mobile operator began offering 4G service in January.

    As Thailand’s cyberspace catches up with the times, online retailers are pouring money into new services. With 4G, sellers will be able to pitch their products with high-resolution video. DHL cited 4G as a key factor behind its e-commerce business in Thailand.

    According to Euromonitor International, a British market researcher, Thailand’s online retail market is expected to reach $3.21 billion by 2020, a 123% increase over 2015.

    As the market grows, Thais will have to guard their e-wallets from a wealth of online options.

  • Hong Kong stocks fall in worst start to CNY since 1994

    Hong Kong stocks fall in worst start to CNY since 1994

    Hong Kong stocks fell in their worst start to a lunar new year since 1994 as a global equity rout deepened amid concern over the strength of the world economy.
    The Hang Seng Index slumped 3.9 percent at the close in Hong Kong as markets reopened following a three-day trading closure, during which the MSCI All-Country World Index dropped 2.1 percent. The last time the gauge fell so much on the first day of the lunar new year, investors were worried about the health of former Chinese leader Deng Xiaoping. Lenovo Group Ltd. led declines while energy companies dropped after crude slumped 11 percent during the holidays. Jeweler Chow Sang Sang Holdings International Ltd. slid after riots in the Mong Kok district.

    Hong Kong’s benchmark equity gauge tumbled 12 percent this year through Friday amid concern that capital outflows, a slumping property market and China’s economic slowdown will hurt earnings. Tuesday’s violence in the shopping district of Mong Kok threatens to deter mainland visitors and worsen a drop in retail sales, according to UOB Kay Hian (Hong Kong) Ltd.

    “You can’t avoid a drop because everywhere has come down so much during this time and the same concerns are still there – oil price, global recession,” said Steven Leung, an executive director for institutional sales at UOB Kay Hian. “The image of Hong Kong as a metropolitan city has been hurt quite seriously” by the rioting, he said.

    PetroChina Co. tumbled 5.1 percent, while Cnooc Ltd., China’s largest offshore oil company, dropped 5.3 percent. HSBC Holdings Plc slid 5.4 percent to a six-year low. The Hang Seng China Enterprises Index retreated 4.9 percent, its biggest loss since August. Mainland financial markets remain closed for holidays until Monday. Plunges in crude and concerns over the perceived creditworthiness of European banks has fueled uncertainty over the strength of the world economy this week. Oil fell below USD27 a barrel in New York, compared with $31.72 a barrel at the close on Feb. 4. Kyle Bass, the hedge fund manager who successfully bet against mortgages during the subprime crisis, said China’s banking system may see losses of more than four times those suffered by U.S. banks during the last crisis.

    “The general tone of other markets has been quite soft,” said Tony Hann, who helps oversee about $270 million as head of equities at Blackfriars Asset Management in London. “It’s difficult to be optimistic” about Hong Kong, he said. The Hang Seng Index’s price-to-book ratio fell below one last month for the first time since the Asian financial crisis roiled regional markets and popped a domestic property bubble in 1998. All but one stock on the 50-member gauge are down this year.
    Chow Sang Sang dropped 0.9 percent, while Luk Fook Holdings (International) Ltd., a jeweler that gets more than half its revenue in the city, declined 4.7 percent.

    Police fired warning shots in Mong Kok, the city’s most densely populated area, early Tuesday after an effort by officials to clear illegal food stalls morphed into a riot. The clashes were more violent than anything seen during the “Umbrella Movement” of 2014.

    “This time the situation was quite different from Occupy Central: there was no peace and a lot of people were injured,” UOB Kay Hian’s Leung said. “Overall it shouldn’t have a very big impact but, of course, it will weigh on related sectors like retail, tourism.” Still, weaker global growth may reduce the likelihood of future interest-rate increases in the U.S., which raise borrowing costs in Hong Kong due to a currency peg, Leung said.

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  • Singapore stocks end down 1.57 pct

    Singapore stocks end down 1.57 pct

    Singapore shares closed 1.57 percent lower on Wednesday, as investors were catching up with the fall in the U.S. stock market earlier this week amid a global sell-off.

    Trading resumed on Wednesday after the Lunar New Year break. Investors looked to U.S. Federal Reserve Chair Janet Yellen’s congressional testimony later on Wednesday for fresh cues on the policy outlook, which may provide some relief for markets.

    While Yellen is expected to defend the Federal Reserve’s first rate hike in a decade last year and likely insist that further increases remain on track, any signs of a departure from such a stance in the wake of global growth concerns could provide risk assets such as equities with a breather.

    Singapore’s benchmark Straits Times Index fell 41.11 points to 2,582.10 points. Trading volume was 802 million shares worth 1.2 billion Singapore dollars. Decliners outnumbered advancers 288 to 85, while 550 stocks did not move.

    United Engineers Limited fell 1.5 percent to 1.94 Singapore dollars. The engineering and property group said it was looking to dispose its indirectly-owned unit MultiFineline Electronix.

    The buyer is Shenzhen-listed stamping and sheet metal manufacturer, Suzhou Dongshan Precision Manufacturing. United Engineers will expect to realize an attributable net disposal gain of about 115.2 million Singapore dollars, and receive net proceeds of about 505.3 million Singapore dollars.

    Zhongmin Baihui Retail Group dived 25.7 percent to 1.30 Singapore dollars. The Singapore Exchange said it was reviewing trading in the counter, noting that a “small group of individuals” was responsible for more than 90 percent of the buy volume of the Chinese department store operator’s shares in the year to February 4 and that these individuals appear to be connected to one another. The bourse operator last Friday urged investors to exercise caution on trading shares of Zhongmin Baihui.

    Among the top gainers, Jardine Matheson rose 0.6 percent to 54.02 U.S. dollars, whereas UOB became one of the top losers by falling 1.7 percent to 17.56 Singapore dollars. (1 U.S. dollar equals to 1.39 Singapore dollars)

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  • First Shipment of Hemp Food Products for Korean Company Shipped from Naturally Splendid Facility

    First Shipment of Hemp Food Products for Korean Company Shipped from Naturally Splendid Facility

    Naturally Splendid Enterprises Ltd. is pleased to announce that the first shipment of 20 metric tonnes of hulled hemp seeds destined for the Port of Busan in South Korea, was shipped from the Naturally Splendid distribution centre in Burnaby, BC to the Port of Vancouver on schedule this morning.

    Naturally Splendid VP of Operations Bryan Carson states, “Having shipped the first container to Korea Beauty & Health Care in South Korea on schedule, we now look forward to fulfilling the balance of this $924,000 CDN purchase order”.

    Korea Beauty & Health Care Co., Ltd. (KBH) was established in 2003 and has a successful track record bringing a variety of products to the South Korean marketplace in the area of cosmetics, household items, functional foods, and medical equipment. KBH was certified as a food manufacturer and cosmetic manufacturer in 2015 and is also a product developer with its own R&D facility. The Company currently employs 62 people and generated revenue of approximately 12,000,000,000 Won ($14,000,000 CDN) in 2015 via online shopping, offline shopping, traditional retail and TV shopping channels. KBH will be marketing the NATERA(R)brand through online shopping, offline shopping, traditional retail and TV shopping channels.

    Naturally Splendid is a multifaceted biotechnology company that is developing, producing, commercializing, and licensing an entirely new generation of plant-derived, bioactive ingredients, nutrient-dense foods, and related products. Naturally Splendid is building an expanding portfolio of patents (issued and pending) and proprietary intellectual property focused on the commercial uses of industrial hemp and non-psychoactive cannabinoid compounds in a broad spectrum of applications.

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  • Online grocery shopping taking off in Asia?

    Online grocery shopping taking off in Asia?

    Asian consumers are embracing technologies that enable them to buy groceries online and with one click rather than having to walk to bricks and mortar stores to get what they need.

    This was among the findings of HappyFresh’s proprietary survey of shoppers across five countries.

    Among the findings of the survey is that about 75 percent of online grocery shoppers are between 25 and 44 years old, and the majority are women. They place their orders weekly, and fresh produce accounts for 50 percent of every order.

    Not surprisingly, mothers  outnumber all other customers buying groceries online. The top five most ordered items are milk, eggs, onions, bananas and, naturally, baby diapers.  The second biggest group is young professionals and expatriates, whose top buys are tomatoes, spaghetti, coke and chicken breast.

    Interestingly, online purchase of groceries peaks at about 5 p.m. on weekdays and 10 a.m. during the weekends and on Monday.

    Happy Fresh said this means customers enjoy shopping at the end of working hours or like to get their shopping done during the weekend or early on Monday so they don’t need to worry about groceries for the rest of the week.

    “We are seeing an “uberization” of the retail industry in Asia. The outlook has never been more promising. Opportunities abound in this region with its sophisticated food-loving consumers, growing wealth and rapid urbanization. The continued increase in mobile adoption and broadband penetration has helped boost our online grocery sales,” said Markus Bihler, CEO of HappyFresh.

    Founded only in 2012, Happy Fresh is headquartered in Jakarta but operates across the region. Last year, the company completed a $12-million Series A funding led by Vertex Venture (Vertex), the venture arm of Temasek Holdings, and Sinar Mas Digital Ventures (SMDV), the venture arm of Sinar Mas Group of Indonesia.

    Riding on this new wave in the retail landscape, the online grocery platform forecasts a double-digit growth for the grocery markets in Asia and to be worth SGD$19 billion by 2020.

    It sees large supermarkets and hypermarkets as important players in the grocery retail landscape and they will continue to do well and dominate in this region. Many, however, are integrating online delivery service into their business model to make it even easier for tech-savvy, time-crunched consumers.

    Biller said  HappyFresh partners with supermarket retailers – particularly the SMEs (Small and medium-sized enterprises) who do not have the capacity or ability to invest in technology – to go digital and reach out to a new set of customers.

    Its partners include Ranch Market (Indonesia), LOTTE Mart (Indonesia) and Village Grocer, Sam’s Groceria and de Market (Malaysia), Big C, Gourmet Market and Tang Hua Seng (Thailand), Lafé Market and Simple Mart (Taiwan).

    “Currently, two out of five online shoppers want to receive real-time offers via their smartphones while they shop. Thus, we foresee a double-digit growth ahead for the online grocery business,” Bihler said.

    More consumers are also purchasing groceries via digital platforms such as mobile apps.

    HappyFresh sees the increased popularity of online grocery shopping in Asia being fueled by two factors – traffic congestion and long working hours in most Asian Cities.

    Three Southeast Asian cities (Jakarta, Bangkok, and Surabaya) are in the Top 10 cities with the worst traffic congestion globally, according to a traffic congestion survey conducted by Castrol and Tom Tom.

    Asian countries also tend to have the longest working hours; they have the highest proportion of people who spend more than 48 hours a week at work. This number is expected to rise as Asia becomes even more affluent.

    “Customers are also becoming very selective when it comes to quality foods. A Nielsen study shows that today’s shoppers are seeking fresh, natural and minimally processed foods with ingredients that help fight disease and promote good health,” Bihler said.

    “This presents a tremendous opportunity for niche consumer segments, especially in the healthy eating space, and other categories that may be more difficult to find on in-store shelves. As a result, a number of specialty retailers have emerged in the health and wellness space, from national online grocery delivery services with extensive fresh sections to local produce delivery services,” he added.

  • The new globetrotters Hong Kong and Macau work to rekindle their tourism spark

    The new globetrotters Hong Kong and Macau work to rekindle their tourism spark

    A stroll down Queen’s Road Central reveals the changes that the drop-off in mainland Chinese tourists has wrought in this once-exclusive shopping area.

    U.S. luxury handbag maker Coach shut down its four-story shop here last August, and its place was soon taken by Adidas, which is preparing to open its first Hong Kong flagship store by June. The German sports brand has also rented a two-story space in Causeway Bay, a prime shopping district, for 3.5 million Hong Kong dollars a month ($449,000), some 30% less than what analysts say the previous tenant paid.

    Mass-market brands like Adidas are fast filling up the space vacated by luxury brands. Spanish fast-fashion chain H&M Hennes & Mauritz opened a four-story outlet in Causeway Bay in October, and a few streets away, HMV has rented a 40,000-sq.-foot (3,716-sq.-meter) space for a crossover music store/cafe.

    PERVASIVE GLOOM

    Hong Kong and Macau have long been the top destinations for mainland Chinese going abroad. With those visitors keeping a tighter hold on their purse strings, the two markets have had to adapt on a dime.

    The change in tourism trends comes against the wider backdrop of China’s economic slowdown, the weakening of the yuan against the U.S. dollar, and Chinese President Xi Jinping’s anti-corruption campaign. In the last two years, China has also tightened rules on the frequency of visits to the two cities, their use as transit stops and visitors’ use of mainland payment cards. Protests in Hong Kong against cross-border bulk shoppers and the death of a visitor during a tour group stop at a jewelry store have put off some would-be travelers from the mainland, as well.

    Three-quarters of Hong Kong’s visitors come from the mainland, but their arrival numbers last year fell almost 3% from 2014. Macau, similarly dependent on China, saw a 4% drop.

    Chinese tourist traffic to the two cities began to soar in 2003 after Beijing opened up the flow of individual visitors from designated mainland cities to compensate for a decline in arrivals related to that year’s outbreak of severe acute respiratory syndrome. Most mainlanders were previously required to travel with tour groups. A year later, the opening of the Sands Macao casino launched an era of gambling competition in Macau.

    Soon, luxury goods stores, pharmacies and other tourist-oriented shops were crowding out those serving local needs. Real estate services company Jones Lang LaSalle estimates mainland visitors now account for a third of Hong Kong retail sales and that they spent an average of HK$3,900 per visit in 2015.

    HARD REVERSE

    The recent downturn is hitting luxury retailers hard because it comes after years of booming sales that saw them open ever more and bigger stores. Burberry said its Hong Kong sales in the October-December quarter fell 20% from a year earlier. The British fashion brand plans to shrink its largest store in Hong Kong from two floors to one.

    Overall sales of jewelry, watches, clocks and similar gift items in the city fell 20.6% in November, according to government figures, while retail sector employment has fallen by 2,663 positions since peaking in late 2014.

    “Christmas sales were already worse than expected,” said Thomson Cheng, chairman of the Hong Kong Retail Management Association and executive director at retailer Lane Crawford Joyce Group. “It will be worrying if we don’t see much recovery during the Chinese New Year [in February], which is a traditional shopping season.”

    Chow Tai Fook Jewellery Group reported that sales in stores in Hong Kong and Macau that have been open for at least a year fell by a quarter in the October-December period. This compares with a drop of 6% for outlets in the mainland. Managing Director Kent Wong Siu-kei said retail conditions will remain “very challenging” and that as a result, the company will close six regular stores and open three discount outlets in Hong Kong and Macau. “Opening outlets will be our future strategy,” he said.

    One factor behind the fall in spending is that prices in Hong Kong and Macau are no longer competitive, due to the Hong Kong dollar’s peg to the U.S. dollar and the link, in turn, of the Macau pataca to the Hong Kong dollar. According to brokerage CLSA, a popular Louis Vuitton handbag costs about 20% more in Hong Kong than in Japan and South Korea and 40% more than in France or the U.K. And unlike those countries, Hong Kong doesn’t levy any sales tax.

    “Hong Kong is not as attractive as I thought,” said Huang Danqin, who was visiting the city for the first time from her hometown of Ningbo, in China’s eastern Zhejiang Province. “Hotels are expensive. The diversity of shopping is also not very interesting compared with Japan and South Korea. I’d rather shop online for handbags these days for better deals.”

    Growing tension between locals and mainland tourists is another headwind for retailers. Protesters in Hong Kong have complained that visiting shoppers cramp the city’s already crowded streets and transport system.

    “This is a capacity issue because of the limited space we have,” said Qiu Hanqin, a tourism professor at Hong Kong Polytechnic University. A slowdown in mainland tourist arrivals could be a chance for Hong Kong to “take a break” and rethink its tourism policies, she said.

    Just an hour’s ferry ride west, Macau, too, is suffering. Gaming revenues declined for the 20th straight month in January and were down nearly a third for all of 2015, to 230.8 billion patacas ($29.6 billion), according to official data.

    With mainland high rollers staying home or heading elsewhere, many of the so-called junket companies that handled their trips to Macau have closed up shop. The government, which depends on casino taxes for most of its income, announced budget cuts of 5-10% on most spending in September, and officials reported a 24.2% decline in third-quarter real gross domestic product from a year before. Li Gang, China’s top representative in Macau, has signaled Beijing is preparing measures to support the city’s economy once again.

    MORE TO OFFER

    Analysts expect the heavy declines in gambling revenue to continue through the first half of 2016. But some think new openings could help stem the slide.

    “We feel like a lot more happening in Macau will attract tourists,” said Aaron Fischer, regional head of consumer and gaming research at CLSA. He expects year-on-year monthly gaming revenues to turn positive by June and ultimately grow 1% for the year.

    The brokerage has a “buy” rating on the Hong Kong-listed shares of Wynn Macau. The developer is set to open the $4 billion Wynn Palace this year, its second casino resort complex in the city.

    In addition to Wynn Palace, three other casino resorts are scheduled for completion this year. But this time, the mantra of “build it and they will come” may not hold true.

    On a weekend visit in January to the newly opened $3.2 billion Studio City casino resort, operated by Melco Crown Entertainment, dealers beckoned visitors to take a seat at one of the many empty baccarat tables. Spots on ferries to and from Hong Kong, which previously needed to be booked in advance, were available on demand.

    Some analysts think Hong Kong could use new draws, especially once the mainland’s first Disneyland theme park opens in Shanghai in June, potentially dampening interest in Hong Kong’s smaller park. “Policymakers in some other destinations have been more active in trying to grab a larger piece of the Chinese tourism pie,” said Mervyn Tang, associate director of Asia-Pacific sovereign ratings at Fitch Ratings in Hong Kong.

    Instead, Financial Secretary John Tsang Chun-wah has signaled that he will include measures to support the local tourism industry in the city’s annual budget to be unveiled Feb. 24.

    Not everyone is discouraged about Hong Kong’s prospects. Tokyo-based Tokyu Malls Development in December opened a HK$20 million Shibuya 109 department store in the tourist district of Tsim Sha Tsui. The company projects sales volume of HK$100 million this year, as it expects Chinese tourist traffic to remain heavy even after recent declines.

    “There is still ample room for selling Japanese brands [in Hong Kong],” said Hiroyuki Wada, president of Tokyu Malls. “Hong Kong will keep its position as Asia’s shopping capital in the long term.”

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  • Hong Kong International Airport Expands Retail and Catering Options

    Hong Kong International Airport Expands Retail and Catering Options

    Nine retail shops and a café have opened in the recently-inaugurated 105,000-square-metre Midfield Concourse of Hong Kong International Airport (HKIA).

     In addition to the new shops, there are also outposts and a money-exchange kiosk.

    “The Midfield Concourse will be able to serve an additional 10 million annual passengers in order to meet the increasing passenger volume at HKIA,” said Cissy Chan, Executive Director, Commercial, Airport Authority Hong Kong. “We are proud to offer extended retail and catering options throughout the concourse, which will let the passengers have a pleasant and enjoyable last-minute shopping and dining experience.”

    Soon to be opened are eight retail and three catering outlets, including world-renowned travel retailer DFS, which will introduce a new multi-category store concept.

    The catering outlets will offer café and casual-dining options to departing passengers who have limited time before boarding.

     The Midfield Concourse also marks MX’s first entry to HKIA

  • Will escalating China woes derail CRCT’s growth story?

    Will escalating China woes derail CRCT’s growth story?

    It will benefit from increased consumption.

    CapitaLand Retail China Trust is still poised for growth despite China’s slowing economy, according to a report by DBS.

    Although investors are currently fearful of the slowdown in China’s GDP growth, DBS said that RCT should remain well positioned as it should benefit from China’s move towards a consumption-based economy. This trend is illustrated by the 10.7% jump in retail sales for FY15, faster than the overall GDP growth of 6.9%.

    “Going forward, we understand CRCT remains confident of generating positive rental reversions (in the “single-digit range), although lower than the 15-20% achieved over the past few years,” DBS said.

    The lower level of rental reversion is also due to CRCT making a strategic decision to attract certain tenants as part of its constant tenant remixing to sustain the performance of its malls in the long term, DBS noted.

    “CRCT’s earnings have been negatively impacted by the road closures surrounding Minzhongleyuan over the past two years. As these works are scheduled to be completed by end-2016, we believe we are approaching an inflection point for the mall’s earnings,” the report added.

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  • UK retailers fail to capitalise on burgeoning e-commerce in China

    UK retailers fail to capitalise on burgeoning e-commerce in China

    ‘Retailers are falling short in serving both Chinese shoppers and others overseas by not providing the seamless shopping experience they offer here in the UK’

    Although 71% of the UK’s largest online retailers are selling internationally, almost half (45%) are completely ignoring China’s burgeoning e-commerce market, new research has found.

    China’s total e-commerce market is expected to increase by 50% to $6.5 trillion by 2020, with online transactions accounting for nearly half of that growth.

    China’s Centre for International Economic Exchanges predicts the nation’s international online retail will account for 30% to 40% of total world trade by 2025.

    Meanwhile, recent research by Worldpay revealed that 44% of people in China shop on overseas websites.

    But while many UK retailers, such as Selfridges and John Lewis, have taken steps to make the shopping experience in-store more welcoming for high-spending visitors from China, relatively few retailers have made similar improvements online.

    Just 55% offer shipping to China – and among those that do, the shopping experience offered to shoppers varies wildly.

    New research by Global-e, which assessed more than 150 of the UK’s largest online retailers, found that just one in ten (10%) retailers that ship to China offer shoppers a Mandarin language option.

    Across all retailers, just under a fifth (17%) offer non-English language options, with retailers that offer international language options offering 5.7 languages on average.

    And while more than a third (36%) of retailers offer prices in other currencies, just 26% of UK retailers that ship to China present prices in Chinese Yuan, and only 22% accept Chinese local payment methods, such as AliPay, UnionPay and TenPay.

    Of retailers that do accept Chinese payment methods, 42% offer a single option, barring some prospective customers from making a purchase.

    Furthermore, almost all (98%) retailers that ship to China do not provide full duties calculations and prepayment, which means that shoppers may be stung by unexpected charges or taxes.

    Not only does this put the retailer’s reputation at risk, but these companies will also be unlikely to generate brand loyalty in China.

    “Shoppers expect more from the online retail experience but very few retailers can claim to offer ‘global shopping’,” said Nir Debbi, co-founder and CMO at Global-e. “Our research shows that retailers are falling short in serving both Chinese shoppers and others overseas by not providing the seamless shopping experience they offer here in the UK.

    “To boost conversions abroad and harness untapped opportunities, retailers need to remove the frictions in the customer experience by providing effective shipping and returns, localised pricing, local currencies, and payment methods with guaranteed landed cost.”

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  • Thai conglomerate buys Big C for $3.4bn

    Thai conglomerate buys Big C for $3.4bn

    BANGKOK — Marking its first full-fledged step into the retail market, Thai conglomerate Thai Charoen Corporation (TCC) Group, owned by alcohol tycoon Charoen Sirivadhanabhakdi, has agreed to buy a majority stake in supermarket operator Big C Supercenter for 3.1 billion euros ($3.4 billion), excluding debts, from France’s Casino Group.

    Big C operates roughly 700 supermarkets, including 125 hypermarkets, throughout Thailand and is the second largest supermarket operator after Tesco Lotus, owned by the U.K.’s Tesco.

    According to a Casino Group release, Big C shares are valued at 252.88 baht ($7.1) per share, a 28% premium to the share price on Jan. 14 when Casino Group initially announced the disposal of its 58.56% stake, currently held through two local subsidiaries. The deal is to be closed by the end of March.

    TCC Group is the parent company of Thai Beverage, the flagship alcohol and beverages company known for its Chang beers.

    Billionaire Charoen has been expanding his reach within the Association of Southeast Asian Nations, including the 2013 takeover of Singapore beverage company Fraser and Neave, but until now his retail operations have been relatively small. In January, the group completed its acquisition of German cash-and-carry chain Metro’s Vietnamese unit.

    The Big C acquisition in Thailand, where consumers have a higher purchasing power than neighboring countries, will likely boost the conglomerate’s retail operations. Big C is expected to become a channel for the promotion of products of other companies within the group, such as Thai Beverage, F&N and Berli Jucker.

    The 28% premium may seem a somewhat high, but analysts say that this was one of the few chances left for Charoen to make a move into the Thai retail sector.

    After Carrefour’s Thai business was acquired by Big C in 2011 and Siam Makro, another cash-and-carry chain under a Dutch trading company was purchased by Charoen Pokphand Group in 2013, Big C and Tesco were the only foreign-owned retailers whose stake holdings could be put up for sale.

    “All the big family conglomerates are eager to acquire these foreign holdings,” Anuwat Srikajornratkul, analyst with Asia Plus Securities, said. “The retail market is already saturated and the best way to expand is to acquire an existing brand instead of building new brands,” he explained.

    Agribusiness conglomerate Charoen Pokphand Group, which runs Thailand’s Seven Eleven stores, is reportedly seeking to acquire Tesco Lotus.

    Casino Group, meanwhile, is expecting to reduce its debt by 3.3 billion euros through the sale. As part of its restructuring plan, it is also considering the disposal of its stake in Big C’s Vietnamese unit. Analysts speculate that TCC Group will likely compete for that acquisition too.

    Following the announcement, Big C shares shot up by 10% to 251 baht, a one-year-high during Monday’s trading hours. Berli Jucker shares soared nearly 20% also closing in to a one-year-high. Thai Beverage had no trading Monday as it is listed on the Singapore bourse, which was closed for the Lunar New Year holiday.

    According to Thai regulations, TCC Group will have to conduct a tender offer for all the remaining Big C shares after the deal is closed.

    Local media had reported that Thailand’s largest retailer Central Group was also interested in purchasing the Big C stake. Central initially founded Big C in Thailand and opened its first store in 1994. However, in the wake of the Asia Financial Crisis, it sold most of its stake to Casino Group in 1999.

    Central is also reportedly interested in bidding for Big C Vietnam.

    Central owners the Chirathiwat family currently hold a minority stake in Big C Thailand. Analysts say that the family could sell off all its remaining stake through TCC’s tender offer.

  • Apple Inc Set to Infiltrate India with Famed Retail Outlets

    Apple Inc Set to Infiltrate India with Famed Retail Outlets

    Imagine being in the hustle and bustle of everyday Mumbai traffic, and spotting an Apple Store across the street. This is about to get real, as Apple Inc. is on course to open its first single-brand retail outlet in India. Sources told Bloomberg that applications for retail business are already under process, with no approval date finalized as of yet. In his recent town hall meeting, CEO Tim Cook personally confirmed that the tech giant is going to open Apple Stores in India.

    Such a deal is believed to exempt Apple from local regulations, according to which, single-brand stores need to assemble products comprising 30% of locally-manufactured components. Currently, the company sells its iPhones, iPads, and other devices in the country via third-party distributors. The company’s push into India has been part of Mr. Cook’s turnaround strategy, as he aims to target the 1.3 billion Indian citizens and exploit the inherent growth potential in the country.

    This target market may be even more lucrative than China, as India’s population is relatively younger and has relatively low smartphone penetration. The country possesses a vast 4G connectivity network, unlike other emerging markets; this presents a lucrative opportunity for Apple, as it would be able to promote its latest gadgets in the region. Last year, India surpassed the US as the second-largest smartphone market, in terms of global unique active users.

    Apple reported a 38% year-over-year (YoY) sales increase in India in its latest quarterly earnings; the company sold over 800,000 units in the region during the quarter ended December 31, 2015. Sales in other emerging markets had shown stagnant growth for the same period, while China experienced a comparatively lower growth rate than India at 14%. Sales volume for the iPhone alone experienced 76% growth in India, compared to 45% in the Middle East, South Korea, and Africa, 18% in China, and 20% in Europe. Moreover, the India’s population has a median age of 27 years, as opposed to China, where the median age is 37 years.

    Such high-growth numbers indicate that now may be the perfect time for Apple to open its famed single-brand retail stores in India. Apple Stores are known for their distinctive setup, excellent customer experience, and strong brand association, which is known to deliver superior products. Such a setup is likely to attract the country’s youth, who helped raise India’s smartphone sales by 23% to 220 million in 2015.

    A major roadblock to Apple’s business, however, comes in the shape of local smartphone makers and other cheaper brands, as the country has a relatively lower income-scale than most of Apple’s other markets. But the tech giant has so far successfully weaved past this issue by enforcing aggressive price cuts on some of its older devices, such as the iPhone 5s. Even the iPhone 6s/6s Plus models were sold under various discount packages, and this pricing flexibility helped increase product availability across all third-party distributors.

    With the company reporting stagnant growth in global smartphone sales in its earnings release, due to increasing consumer product upgrade lifecycles, India may just be the bailout it seeks. The company aims to turn around faltering handset sales with the new iPhone 7. Establishing stores in major population centers such as Delhi and Mumbai can help it attain greater traction when the smartphone launches.

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  • Emperor Akihito’s visit to Manila

    Emperor Akihito’s visit to Manila

    At the State Dinner in his honor hosted by President Aquino at Malacañang, Japan’s Emperor Akihito offered a toast to President Aquino for the “good health and happiness of the Filipino people” and said that Japan must never forget the loss of Filipino lives in World War II.

    The 82-year-old Emperor’s last trip to the Philippines was 52 years ago, when he was still Japan’s Crown Prince. This time he came with his wife, Empress Michiko, for a five-day visit which included side trips to the International Rice Research Institute at Los Baños, and to Baguio and Tagaytay. On each of his trips to the Philippines, the Emperor has included a visit to the Tomb of the Unknown Soldier at the Libingan ng mga Bayani at Fort Bonifacio. “Japan will never forget the loss of Filipino lives during World War II,” he told his audience at the State Dinner. “And I continue to enhance mutual understanding and friendly ties with the Philippines.”

    Referring to his earlier visit a half century ago, the Emperor said: “To this day the memory of the warm smiles we received from His Excellency, President Macapagal, and the First Lady, as they stood by our plane when we arrived at Manila Airport and the warm welcome we received from the people of the Philippines remain deep in our hearts.”

    The Emperor recalled that the Philippines’ National Hero, Jose Rizal, who spent a month and a half in Japan, and later wrote that he envisioned that the two nations would eventually engage in a full-fledged relationship.

    At a private meeting in Malacañang, President Aquino and the Emperor discussed the Emperor’s earlier visit to the Philippines in 1962, when he was still the Crown Prince. They also talked about Japan’s vast automobile sales to the Philippines, and the establishment of Japan’s retail store, Uniqlo, here in Manila.

    President Aquino and Foreign Secretary Albert del Rosario also spoke of the significant increase in the number of visitors from Japan to the Philippines, and from the Philippines to Japan.

    Today, Japan is the Philippines’ largest trading partner and its top donor of foreign aid.

    This was the first visit by an Emperor of Japan to the Philippines.

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  • Lotte launches Paul & Shark in Korea

    Lotte launches Paul & Shark in Korea

    Italian lifestyle brand, Paul & Shark, has opened its first boutique in South Korea, at Incheon International Airport (ICN) in partnership with Lotte Duty Free – with a further two on the way.

    Commenting on the mid- December opening: Catherine Bonelli, Global Travel Retail Director at the brand, says: “This store makes a wonderful first step into the South Korean travel retail market for Paul & Shark.”

    “In the first quarter of 2016 another two openings are planned in Seoul, which will truly cement Paul & Shark’s presence in Korean travel retail. I would like to thank Lotte Duty Free for their support with the opening of this new store, which looks amazing.”

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