Retail News CRM

Tag: asia

  • Missha Hong Kong makes return

    Missha Hong Kong makes return

    Korean cosmetics retailer Missha is returning to Hong Kong.

    Some 20 Missha Hong Kong stores were shuttered around New Year’s Eve this year when the previous local retail partner collapsed.

    Now Missha has a new partner – DKSH (DiethelmKellerSiberHegner) – which will apparently help it build a new network.

    Missha entered Hong Kong in 2004, four years after its launch in Korea. But during the last two years it has faced tough competition from new rival brands, including Etude House and Nature Republic.

    Missha’s parent Able C&C said on Tuesday it had signed a contract with Swiss based DKSH Hong Kong giving it exclusive rights to promote Missha in the territory.

    The first two stores quietly opened on June 30 ahead of the formal announcement – counters in DKSH duty free stores in Causeway Bay and Tsim Sha Tsui.

    The following day a standalone store opened inside Yuen Long Plaza.

    DKSH has reached an agreement with Mannings to sell the products through 200 stores by the end of July and in 300 by the end of next year.

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  • Costa Coffee Manila opens

    Costa Coffee Manila opens

    The first of five Costa Coffee Manila cafes has opened its doors, marking the British-headquartered coffee chain’s Philippines debut.

    Costa, the world’s second largest dedicated coffee chain behind Starbucks, has opened in Eastwood City Mall in Quezon City, metropolitan Manila.

    Four more cafes are planned by the year’s end in Bonifacio Global City, Robinsons Ermita, Tera Towers and Robinsons Antipolo.

    The Eastwood City Mall cafe is spread over two floors and features distressed timber fittings, and a sofa upholstered with the Union Jack to reflect the brand’s heritage.

    For its Philippines entry, Costa has partnered with Robinsons Retail Holdings, which owns the Robinsons Department Store, supermarket, Handyman, True Value, Toys ‘R’ Us, and Daiso retail banners in the Philippines.

    Costa Coffee has over 3000 stores worldwide, including 1800 in the UK and 400 in the Middle East.

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  • DFI to list in Hong Kong

    DFI to list in Hong Kong

    Singapore-based travel and duty free retailer Duty Free International (DFI) is seeking to list on the Hong Kong stock exchange.

    DFI is Malaysia’s largest duty free operator, runs 36 stores, including those under the Zon Duty-free brand throughout the country, including new facilities at the recently opened KLIA2 airport outside Kuala Lumpur.

    The company has concessions selling chocolates, fragrances, liquor and tobacco products, gifts and Malaysian souvenirs.

    It has stores in Bukit Kayu Hitam, Padang Besar, Pengkalan Hulu, Langkawi, Rantau Panjang, Penang International Airport, Tioman Airport, KLIA, Melaka Airport and Johor Bahru.

    The company also owns the 18-hole Black Forest Golf & Country Club.

    Hong Kong stock exchange rules require at least 25 per cent of a company’s capital to be traded publicly, and DFI does not meet this condition currently, meaning it will have to issue more shares or existing controlling shareholders will have to divest some of their stake.

    In a statement, Atlan Holdings said the directors believe it is desirable and beneficial for the company to have dual primary listing status in both Singapore and Hong Kong so that the company can tap readily into two of Asia’s most dynamic equity markets when the opportunity arises.

    “Furthermore, the proposed Hong Kong dual listing will widen the investor base of the company so that the company may benefit from its exposure to a wider range of private and institutional investors, and is expected to increase trading liquidity of the ordinary issued shares in the capital of the company.”

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  • Real Singapore retail sales stagnant

    Real Singapore retail sales stagnant

    Don’t be fooled by mainstream media headlines reporting a rebound in Singapore retail sales.

    The 6.1 per cent increase headline year on year increase is almost entirely driven by a near 50 per cent surge in motor vehicle sales.

    Core retail sales rose a modest 0.9 per cent in May compared with May 2014, and 1.8 per cent over a lacklustre April.

    Singapore retail sales

    Sales of food and beverage services decreased marginally by 0.3 per cent month on month and by a whole three per cent year on year.

    After seasonal adjustment, retail sales of petrol service stations, cars, medical goods and toiletries, food and beverages, mini-marts and convenience stores, wearing apparel and footwear, watches and jewellery, recreational goods and supermarkets all increased by between one per cent and 8.9 per cent month on month.

    Sales of telecommunications devices and computers decreased 10.9 per cent; optical goods and books, furniture and household equipment declined 0.3 to 0.4 per cent.

    Department store sales remained steady.

    Year on year, medical goods and toiletries sales rose the most at 10.3 per cent.

    Department store sales, supermarkets, mini-marts and convenience stores and watches and jewellery posted increases of between 1.3 per cent and 4.9 per cent.

    Singapore retail sales Index

    Recreational goods sales declined 16.2 per cent and 11.9 per cent year on year, optical goods and books, telecommunications apparatus and computers, food and beverages, furniture and household equipment and wearing apparel and footwear all declined between 1.1 per cent and 8.3 per cent.

    After seasonal adjustment, turnover of fast food outlets and other eating places (such as cafes) decreased 3.6 per cent and 0.1 per cent in May over April. Restaurant turnover was stable.

    Compared to May 2014, turnover at restaurants, other eating places and fast food outlets decreased between 0.8 per cent and 5.9 per cent.

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  • Asia slowdown hits Burberry sales

    A decline in the number of shoppers from mainland China travelling to Hong Kong to buy luxury goods has continued to be a drag on Burberry, the British retailer best known for its trenchcoats and cashmere scarves.

    Burberry said on Wednesday that comparable sales in Hong Kong were hit by a “double digit decline” in the three months to June 30, its first quarter, as fewer Chinese mainlanders headed to the city because of political tensions or hostility from locals.

    The British group, like many other retailers, suffered during last year’s lengthy pro-democracy protests in Hong Kong but has seen no pick-up in trading as mainland Chinese take advantage of changing exchange rates to travel to other destinations such as Japan and South Korea for shopping trips.

    Burberry said sales at its stores in mainland China still rose by a “low single-digit percentage” during the first quarter, but the problems in Hong Kong pushed down sales in the Asia-Pacific region overall by a “low single-digit”. In Japan, the retailer reported “exceptional growth” during the quarter, although from a low base.

    Carol Fairweather, Burberry’s chief financial officer, said the group was trying to target local Hong Kong residents through marketing events in an attempt to stabilise sales in the city. But she insisted all stores in Hong Kong remain profitable.

    Chinese shoppers — who account for 30 to 40 per cent of Burberry’s revenues globally — are still spending during trips to other parts of the world, Ms Fairweather said, despite concerns over weakening consumer sentiment in the world’s second-biggest economy following a period of dramatic stock market upheaval.

    “We still saw growth from the Chinese consumer in China and globally,” Ms Fairweather said.

    The problems in Hong Kong weighed down overall sales growth at Burberry during the quarter. Excluding the effects of currency movements, underlying retail revenue rose 8 per cent to £407m. This was in line with analysts’ forecasts but was lower than the 14 per cent growth recorded during Burberry’s last financial year. Comparable sales for the group as a whole rose 6 per cent, again lower than for the year to March 31 but slightly higher than analysts’ forecasts.

    Burberry said foreign exchange movements were in its favour during the first quarter, pushing it to upgrade its latest forecast for full-year profit at its core retail and wholesale business by £10m. This would, however, be offset by a “more adverse geographic mix” because of the challenges in Hong Kong, resulting in no overall change to group profit forecasts.

    Christopher Bailey, Burberry’s chief executive and chief creative officer, said the first-quarter performance was pleasing in light of “challenging” conditions.

    “We are pleased with our performance in this first quarter,” he said. “While mindful that the external environment remains challenging, we will continue to focus on growth opportunities across channels, regions and products, with exciting plans for the year ahead.”

    Burberry’s trading update came ahead of its annual meeting on Thursday.

    The luxury retailer is no stranger to revolts over Mr Bailey’s pay. At the 2014 annual meeting, almost 53 per cent of votes cast were against the directors’ remuneration report in protest at Mr Bailey’s £20m package.

    There have also been rumblings of a potential rebellion at this year’s meeting. Mr Bailey, who took up the dual role of chief executive and chief creative officer on May 1, 2014, banked almost £8m in pay and benefits for the year to March 31, 2015.

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  • Glenfiddich debuts Residence Cask at Changi Airport

    Glenfiddich debuts Residence Cask at Changi Airport

    Glenfiddich, ‘the world’s most awarded’ single malt Scotch whisky, is partnering with DFS Group, to launch the Glenfiddich Residence Cask Vintage 1992 at DFS Singapore Changi Airport.

    The Glenfiddich Residence Cask Vintage 1992 edition comprises single cask releases chosen by Malt Master, Brian Kinsman, which are said to be in line with the ‘classic taste’ profile of Glenfiddich.

    A select group of DFS VIPs were invited to ‘immerse themselves’ in a Glenfiddich ‘experience’ including exclusive tasting sessions, hosted by Kinsman, where he shared his insights into the ‘art and romance’ of whisky making.

    Scott Hamilton, APAC Travel Retail Director said: “This event is more than a launch of an exceptional whisky. It is a great example of the close and successful partnership between DFS Singapore Changi Airport and William Grant and Sons.

    “We have the opportunity to showcase our unique range of products to the right audience and for DFS, they keep their privileged customers excited, giving them more reasons to stay loyal to the DFS and Glenfiddich brands. We are thrilled to have this opportunity and I certainly look forward to the next exclusive launch with DFS.”
    Owners of these exclusive bottles can also fill out a leather-bound ledger book, which will be sent back to the distillery and put on display, becoming a part of Glenfiddich’s history.The Glenfiddich Residence Cask Vintage 1992 bottles are individually numbered and presented in hand-crafted leather boxes featuring detailed cask information. Shoppers have the option to personalise the ‘foot label’ upon purchase.

    Matured in American Oak (ex-Bourbon) cask number 8247, this 22-year-old spirit is distilled in 1992 and bottled at cask strength of 58.7%. The release is limited to only 200 bottles and exclusively available to DFS.

    This launch coincides with the opening of the Glenfiddich Residence Changi, a shop-in-shop at DFS Group’s new double-storey Wines and Spirits flagship store at Terminal 3 Changi Airport.

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  • International retailers show great interest in Hong Kong market

    International retailers show great interest in Hong Kong market

    International brands of non-luxury products are keen to enter the Hong Kong market despite the city suffering from a decline in retail sales.

    Foreign retailers catering to Hong Kong’s mass retail market are eager to secure shops in Hong Kong, which they consider as a mature market, said Maureen Fung Sau-yim, a director of Sun Hung Kai Development (China), a unit of Sun Hung Kai Properties.

    According to Fung, the company has signed leasing contracts with 20 new international tenants this year at its APM shopping centre in Kwun Tong.

    “Those brands, such as French shoe brands Bensimon and Palladium, as well as Korean fashion brand Stylenanda, have come to Hong Kong for the first time,” said Fung.

    She said recently agreed rents in APM had risen 16 per cent to 20 per cent compared to leases signed one to three years ago.

    Total retail sales growth declined 1.8 per cent year on year in the first five months of this year, against average growth of 11 per cent per year over the past 10 years, constrained by weaker inbound tourism.

    Spending on jewellery and watches continued to fall, affected by the anti-corruption campaign in mainland China and the shifting pattern of mainland Chinese shoppers away from luxury goods and towards mass market products, according to property consultant JLL.

    But a survey by consultancy Arcadis showed that Hong Kong was still an attractive place for retailers.

    In its first report “Retail Operations Index: Where in the world could your retail portfolio thrive?” on Monday, Arcadis said Hong Kong was the most attractive location for retailers globally, followed by Singapore and Japan.

    Asian countries dominated, taking three of the top five spots, the survey showed. It identified the locations that were the most and least difficult to execute, scale and flex large retail programmes based on an in-depth analysis of the global retail market in 50 countries.

    SHKP plans to spend HK$150 million to upgrade the APM mall, which was established 10 years ago.

    The programme, which is due for completion in 2017, includes an upgrade of technology, common and leisure areas and other facilities.

    This article appeared in the South China Morning Post print edition as HK is top pick for foreign retailers

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  • Swiss Skin Care Product K.Diamond Now Available in China

    Swiss Skin Care Product K.Diamond Now Available in China

    K.Diamond is a revolutionary skin care product that comes from the house of Swiss Lausanne Research and Development Center, which is a world leader in cell technology research. Recently, the Switzerland based lab decided to distribute and sell its products directly through its authorized agent in China. The product has reached China and it can be found in retail stores. The creators of the breakthrough skin care product have maintained that they have reinvented fundamentals of skin care that were used during ancient times.

    Swiss Lausanne Research and Development Center bears a 53 year old legacy of manufacturing skin care products. A lot of their skin care products are used in the five-star hotels of Switzerland. However, the manufacturers have always focused on research and innovation rather than marketing and promotion. In 2010, the research lab came up with a series of micro-plastic applicators that were introduced in the Chinese market. The creators have claimed that K.Diamond is a value-for-money product which is gradually picking up in popularity across Chinese mainland. The developers have claimed that the skin care products that are now being available in China can have miraculous effects.

    One of the senior researchers from Swiss Lausanne Research and Development Center recently met the press here in Beijing and he talked about the future plans and objectives of his lab at great length. He said, “We are more of a research and innovations lab than a skin care products manufacturer. We know consumers in China have always been waiting for a truly beneficial product like K.Diamond and we must say that the huge demand in Chinese market can now be successfully met by our China based general suppliers. All products are shipped directly from our Switzerland based lab and our local supply chain managers and distributors are doing a commendable job in taking the products to the Chinese retail market.” He also indicated that the K.Diamond product distributor network would be expanded in the near future.

     

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  • Heineken joins foreign brewers seeking to slake Myanmar’s thirst

    International brewers are trickling into Myanmar, betting that higher incomes and economic reforms will whip up a thirst for foreign beer in a market that has long been dominated by state-owned firms.

    Heineken NV, the world’s third-largest brewer, on Sunday opened a $60-million brewery joint-venture just outside Yangon, returning to one of Asia’s most promising beer markets after exiting in 1997 amid international condemnation of the human rights abuses of the military government at that time.

    Heineken’s Regal Seven beer is set to rival the Tuborg and Yoma brands by Carlsberg, which in May became the first foreign brewer to set up in Myanmar as it emerges from 49 years of military rule.

    “Myanmar is on faster trajectory of growth and its disposable income will rise for common people in coming years,” said Vijay Dhayal, senior consultant at financial advisors New Crossroads Asia.

    Myanmar’s beer industry is dominated by state-backed Myanmar Brewery, and beer consumption rates are some of the lowest in Asia at just 3.2 litres per person in 2013, according to the latest data from research firm Euromonitor International, well below the 31 litres per person in neighbouring Thailand.

    But with consumer spending expected to rise as economic reforms kick in, foreign brewers hope Burmese will want more beer, especially the branded kind. Euromonitor forecasts the value of the beer market to almost double to $675 million in three years time from an estimated $375 million this year.

    Heinken’s Myanmar brewery is a joint venture with privately owned Alliance Brewery Co Ltd (ABC), majority-owned by local spirits entrepreneur Aung Moe Kyaw.

    Analysts, however, say the dominance of Myanmar Brewery, which has an 80 percent market share, will be tough to crack.

    “This will not be an easy game for foreign firms,” said Alec Maurice, Business Development Officer at consultancy Thura Swiss. “Myanmar consumers are often very loyal to their brands, especially in the beer sector.”

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  • KBank, Aeon connect in Laos

    KBank, Aeon connect in Laos

    Both parties are also ready to jointly develop payment channels and other innovative services in a bid to assist Thai investors in Laos.

    Suwat Techawatanawana, KBank’s first senior vice president, said Aeon Leasing Service (Lao) had been granted kip-denominated loans by the bank’s Laotian unit to be used for its retail and motorcycle-loan businesses.

    Aeon Group is a successful financial conglomerate in Thailand, offering personal-loan and credit-card services. Given the promising trends in Laos, the group’s business expansion into this marketplace is expected to bring fruitful results.

    Aside from financial support, KBank will cooperate with Aeon to develop products and services such as innovative payment channels to facilitate its customers in Laos.

    Shiro Kitano, managing director of Aeon Leasing Service (Lao), said this cooperative effort with KBank would be supportive to the company’s business, making it more flexible in its operations.

    Aeon Group now centralises its business management of the Asean region in Thailand. After branching out into the Laotian market, the conglomerate may contact KBank. The one-stop service will help reduce the number of relevant procedures and time needed.

    The cooperative endeavour between the two companies to develop complete payment channels will not only provide greater convenience to customers in Laos, but also assist in modernising transactions in this market.

    Having its headquarters and first branch in Vientiane, Aeon Leasing Service (Lao) is now expanding its services in other major cities in that country.

    Amid slowing economic conditions, loans extended during the first half of 2015 accounted for 30 per cent of this year’s target of 50 billion Lao kip (Bt208 million).

    The company plans to launch more marketing activities to boost its business during the second half of the year, wherein the overall economy is expected to benefit from the advent of the Asean Economic Community.

    Suwat said KBank had operated its locally incorporated institution in Laos since last December, offering loans and financial-transaction services to both individual and corporate customers there, including Thai businesses that have invested in the country.

    Providing credit, KBank assesses their business potential in Laos, plus their company outlook in Thailand. Such risk assessment is conducted to evaluate the entire group prospect. Therefore, the bank can better underwrite credit and give other supporting services to the businesses.

    Amid Laos’ high economic-growth potential, some Thai operators may wish to cash in on growing business opportunities. KBank says it stands ready to support Thai businesses in advisory services, business matching activities and diverse financial services.

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  • David Morris to open second Hong Kong boutique

    David Morris to open second Hong Kong boutique

    British jewellery brand David Morris will open its second Hong King boutique at The Galleria on 9 Queen’s Road Central at the end of July.

    Jeremy Morris, son of founder David Morris and managing director of the eponymous brand, said: “Hong Kong has two markets; the local Hong Kong residents and the international market. To truly serve the local market it’s important to have a base in the Central District, where they are based.

    “Our designs are extremely sought-after by our locally based clients and our additional expansion in the area will enable us to enhance our service to our burgeoning international clientele.”

    Since Morris assumed the role of marketing director several years ago, he has expanded the brand’s presence to Dubai, Abu Dhabi, Moscow, Baku and Riyadh.

    The boutique joins the brand’s first flagship boutique, which opened at The Peninsula, Kowloon, in 2011.

    The family-run jewellers has served its clientele of royalty, including Princess Royals Margaret and Ann and the Eighth Earl Spencer and international collectors from its London flagship on Bond Street for more than 50 years.

    A further David Morris boutique is scheduled to open in Doha later this year.

  • Ikea India buys site for first store

    Ikea India buys site for first store

    Ikea India has acquired the land for the first of 25 stores planned for the country.

    The Swedish home furnishings company says the 13 acre site is located close to the IT hub Hitec City and is close to public transport, including a metro line under construction.

    Further details were scant, except that the land was acquired from the Telangana government. Ikea India plans 24 more stores in the long term and is currently evaluating sites in Mumbai, Bengaluru and Delhi NCR.

    Each Ikea store will cost about $100 million to establish, including land and construction costs.

    Part of the arrangement allowing Ikea to open single brand stores in India is that it has to source product from within the country. The company already has about 50 suppliers in India employing some 45,000 people. Now it is actively searching for more suppliers to boost the proportion of locally-sourced stock.

    IKEA India CEO Juvencio Maeztu described India as a promising market because it offers the company the opportunity to source, retail, conduct CSR initiatives through Ikea charitable foundation and empower social entrepreneurs through next generation projects.

    “Our focus now is to bring all of it together in Hyderabad as we have bought our first land to build an Ikea store. We will bring a unique shopping experience through our inspiring stores offering affordable home furnishing products,” he said.

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  • CapitaLand sells Bedok Mall

    CapitaLand sells Bedok Mall

    CapitaLand has sold its 18 month old Bedok Mall in Singapore to a trust.

    CapitaLand subsidiaries Brilliance Residential and CMA Singapore Investments have entered into a sale and purchase agreement with HSBC Institutional Trust Services, trustee of CapitaLand Mall Trust (CMT), for the sale of the entire unitholding interest of Brilliance Mall Trust, which owns Bedok Mall. The sale is based on an agreed value of Bedok Mall of S$780.0 million and other net assets of Brilliance Mall Trust of about S$3.1 million. At the last valuation commissioned by CapitaLand, Bedok Mall was valued at S$775 million.

    Opened in December 2013 on New Upper Changi Rd, Bedok Mall has a net lettable area of 222,464 sq ft and is 99.3 per cent leased. Anchor tenants include Fairprice Finest, Uniqlo, Best Denki, Canton Paradise, Popular, McDonald’s and Din Tai Fung.

    It is the first major mall in the heart of Bedok Town Centre, serving Singapore’s largest estate of about 300,000 residents as well as other residents in the east of Singapore. It is part of an integrated retail-residential-transport development, which also includes the 583-unit condominium Bedok Residences developed by CapitaLand that received its Temporary Occupancy Permit in May 2015. The mall’s Basement 2 is directly linked to the Bedok MRT station while the new air-conditioned Bedok bus interchange, which began operations in January, is integrated with the mall on Level 2.

    Lim Ming Yan, president and group CEO of CapitaLand, said the proposed divestment, which remains subject to unitholder approval, as well as the ongoing divestment of a group of serviced residences and rental housing properties to Ascott Residence Trust and CapitaLand’s 30 per cent stake in PWC Building announced last month, are all examples of the company’s “robust capital recycling strategy”.

    “These transactions allow us to realise our investment value and development profit, and enhance our financial flexibility as we redeploy our capital into other ventures that will generate stronger returns for our shareholders.”

    Jason Leow, CEO of CapitaLand Mall Asia, said his company will continue to manage Bedok Mall.

    “We remain confident in the retail growth prospects in Singapore where we are the market leader with the largest network of 20 shopping malls. We are committed to the Singapore retail market and continue to be on the lookout for suitable new opportunities in Singapore and the region as we seek to strengthen our leadership position as Asia’s leading shopping mall developer, owner and manager.”

  • Using WeChat to Grow Your Business in China

    Using WeChat to Grow Your Business in China

    In the world of mobile commerce, all eyes are on China.

    Even as China’s economy and overall retail sales growth drops, business-to-consumer (B2C) online sales are growing by 25 per cent each year. Data gathered from iResearch in a March 2015 report states that China’s gross merchandise volume (GMV) of the mobile shopping market reached 929.71 billion RMB in 2014, increasing by 239.3 per cent from the previous year.

    The growth was significantly larger than that of the overall GMV of the online shopping market. China has the world’s largest digital marketplace, and is predicted to grow three times faster than overall retail. The industry is primed for growth not only in the first-tier cities, but also in the third-tier and lower cities with an estimated half of total online sales coming from the lower tier cities by 2018.

    When considering the mobile commerce industry in China, one name stands out: Tencent’s WeChat has long been impacting the lives of Chinese consumers, and with its move to digital payment systems it now has the ability to revolutionise the mobile commerce industry in China.

    WeChat has a massive scale, with over 468 million monthly active global users and 25 per cent of users checking WeChat over 30 times a day. Last year, users spent US$15.3 billion on mobile data using WeChat.  As the fastest growing social media platform in the world, and the primary source of interaction between brands and Chinese consumers, foreign investors looking to be successful in China should take note. Chinese consumers actively embrace mobile commerce due to its easy to use, cost-effective payment and delivery system.

    There is huge potential for foreign investors to take advantage of WeChat payment systems for their Chinese consumers and to maximise their profits. WeChat allows foreign investors to interact with their consumers in a way that has not reached the same scale in the Western world.

    Fewer than 20 per cent of internet users in the US have used their mobile phones to pay for services and goods while more than half of users in China have done so. Multiple incentives exist for Chinese consumers to make their purchases through WeChat; enabling businesses to use these schemes to generate profit. Loyalty cards, membership schemes and discounts for paying online all compel cost-effective shoppers to make a purchase.

    In addition to this, due to the convenience of paying through WeChat, there is a higher chance of impulse purchases. However, this ease does not simply apply to the consumer. Brands are able to bridge the gap between attracting new consumers and engaging with paying consumers, which has already begun to change the face of shopping and retailing worldwide. Businesses utilising WeChat payment systems are already experiencing huge profits, and Tencent has stated that several official accounts are now making over US$1 million.

    Not only can consumers purchase items, but can also purchase services inside WeChat. Businesses with service accounts can take advantage of WeChat’s online-to-offline (O2O) business model. Both online and offline purchases are available to consumers. Customers can either pay for services or items by scanning the QR codes of products provided by offline retailers, or pay on web pages inside the app.

    All vendors, from big name brands to small and medium-sized enterprises are able to create service accounts in WeChat. Big name companies like McDonalds, Starbucks, Xiaomi, Watsons, and Pacific Coffee have all created service accounts. WeChat allows all vendors the potential for success and the ability for SMEs to create accounts is an important aspect for foreign investors to capitalise on.

    Certain industries, such as food, beverage and retail, tend to generate more profit as they are more primed for mobile commerce. That being said, taxi companies, airlines, newspapers, government organisations, and pharmaceutical companies are all using WeChat payments to their advantage.

    Tencent has now enabled users to pay their utility bills through WeChat, and more and more businesses are finding a way to use WeChat mobile payments to grow their business and attain a competitive advantage.

    It is crucial for foreign businesses entering a new market to take advantage of domestic trends in order to be competitive in that marketplace. Mobile commerce in China is constantly evolving and businesses like WeChat are revolutionising how business is conducted. WeChat allows both big name brands and SMEs to compete in the same market space which has the ability to change the entire industry. Entering the Chinese market has its difficulties, but applications like WeChat make it easier for foreign investors to communicate effectively with their Chinese consumers.

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  • Facebook, Twitter to drive online shopping growth

    Facebook, Twitter to drive online shopping growth

    New data from Juniper Research predicts global eCommerce sales will reach $1.7 trillion this year – up more than 17 per cent on last year.

    And while recent growth has been buoyed by expansion of public Wi-Fi networks and 4G, the next round of growth will be driven by social media companies creating direct sales platforms.

    The new research, Mobile & Online Purchases: Cards, Carrier Billing & Third Party Payment Platforms 2015-2020 concludes that Twitter, Facebook, Pinterest and Instagram have already launched ‘buy’ buttons on their mobile apps.

    “Such players are also likely to enhance their sales prospects through strategic retailer partnerships, with Twitter already enabling users to link their accounts to Amazon,” the report said.

    The research also finds that online retailers are increasingly seeking to reduce time-to-consumer by launching same-day delivery, while ‘bricks and mortar’ stores now widely offered next-day in-store collection – often charging a premium for this option.

    But Juniper cautions that retailers need to deliver a consistency of message, branding and shopping experience across all channels.

    “Integration between in-store and online is critical if retailers want to maximise the extent to which they can identify a unique individual’s omnichannel shopping habits,” the report said.

    Author Dr Windsor Holden said the key is to ensure consumers are allowed to choose their own path to purchase rather than have it effectively mandated by channel limitations.

    The report also concludes that smartphones will account for more than 40 per cent of online transactions by 2020.

    “While carrier billing should provide content providers with a key mechanism for monetising digital content, its use for buying physical goods is likely to be limited by comparatively higher share of revenues demanded by network operators and billing platforms.”

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