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Tag: asia

  • Indonesian retail sales growth slower as expected

    Indonesian retail sales growth slower as expected

    Indonesian retail sales growth in November slowed to 1.3 percent year-on-year, well below October’s rate of 3.6 percent.

    However, the figures, released by Bank Indonesia, reflect the continuing uptick in Indonesian retail sales which has now lasted five consecutive months.

    “Retail sales continued to grow positively in November,” wrote the central bank in a statement, “although it slowed compared to sales in the previous month”.

    Indonesia retail sales growth is expected to slow in the coming months, however, with declines recorded in several metropolitan areas surveyed – a harbinger of growth expected for December.

    Sales declined in the cities are projected to flow on from the estimated contractions of 9.4 percent and 4.8 percent over the previous period.

    The bank’s survey revealed respondents believe retail sales will decline over the next quarter.

  • South Korean convenience stores wind back 24-hour service

    South Korean convenience stores wind back 24-hour service

    South Korean convenience-store owners are canceling 24-service as minimum wage rise has eroded profits.

    Last year, president Moon Jae-in launched a campaign to raise the hourly minimum wage by 29 percent over two years. With night-shift employees earning time-and-a-half pay, franchisees have been struggling to pay part-time staff during the small hours.

    Not all stores traded around the clock when Shinsegae group launched the Emart convenience-store chan in 2014. Three Korean c-store giants, GS Retail, BGF Retail and Lotte Group, now allow its franchisees to close stores at night if the outlets lose money overnight for three months.

    In a market with the highest rate of c-stores per capita, South Korean convenience-store owners are shifting their focus to automated, unmanned stores. Emart is trialing a cashier-free store in Seoul with more than 30 cameras installed. Payments are made with credit card information stored in advance. Meanwhile, Lotte operates 17 unmanned outlets where products are scanned and identified by its shapes.

    Last year, many 7-Eleven and Familymart stores in Japan had to overturn its 24-hour operations as they were suffering from the labor shortage.

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  • AirAsia expands Penang hub

    AirAsia expands Penang hub

    Travellers flying out of Malaysia’s northern hub Penang can now book AirAsia newest flights to Chengdu, the capital city of Sichuan Province, China.

    AirAsia will launch a Penang- Chengdu service 8 March with three weekly direct flights.

    AirAsia Malaysia CEO Riad Asmat said: “Penang is one of our largest secondary hubs in Peninsular Malaysia, to which we flew more than 2.4 million guests to the island last year. This is our first route from Penang to Mainland China, and we are confident this additional route will continue to boost visitor arrivals into Penang, and vice versa.”

    Members all-in fares from Penang to Chengdu start from MYR99*, available for booking on airasia.com and the AirAsia mobile app until 19 January 2020, for travel between 8 to 28 March 2020.

    Return flights with three-day, two-night hotel stays starting from as low as MYR332** per person are also up for grabs through SNAP on airasia.com.

    Best known as home to the adorable giant pandas, Chengdu is a thriving city with many natural, cultural and historical sights. Some of the must-visit attractions include the Chengdu Research Base of Giant Panda Breeding, Jinli Ancient Street and the Leshan Giant Buddha and Wenshu Monastery.

    Named by UNESCO as a “City of Gastronomy”, many popular Chinese dishes such as Mapo Tofu and Kung Pao Chicken originate from the region. Travellers can also choose to unwind by enjoying aromatic tea at any of the local teahouses.

    Chengdu is also a gateway to the western territories of China, including Tibet, which its capital Lhasa is home to the historical centre of Tibetan Buddhism and famous Potala Palace; as well as the Unesco World Heritage Site Jiuzhaigou, one of the most scenic places in China.

    Besides Chengdu, AirAsia currently flies to 12 destinations from its Penang hub, namely Bangkok, Ho Chi Minh City, Surabaya, Jakarta, Medan, Singapore, Kuala Lumpur, Johor Bahru, Langkawi, Melaka, Kota Kinabalu and Kuching.

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  • No respite likely for Hong Kong-based retailers

    No respite likely for Hong Kong-based retailers

    Hong Kong-based retailers will continue to face tough times as domestic and international issues impact the economy according to a leading analyst.

    Anne Ling, an equity analyst at the investment bank and financial-services company Jefferies Group,  says every 10 percent decline in retail sales impacts the earnings-before-tax (EBIT) of Hong Kong retail companies by between 7 percent and 55 percent. Retail sales in October and November fell by about 24 percent and during the first 11 months of last year were down by 10.34 percent.

    “For international brands like Prada, Samsonite and L’Occitane, we estimate the impact at the sales level is not that material [because] Hong Kong [represents] less than 2 percent to 5 percent of sales. However, at the EBIT level (circa 3 percent to 7 percent) Hong Kong has a higher contribution.”

    Ling warns Hong Kong-based retailers are vulnerable to a risk of the further market slowdown from a higher unemployment rate and weaker consumer confidence in the city.

    “In such times, the immediate lever to hand for brands and retailers is to increase cash flow by reducing inventory and staff and/or rental costs. However, over the medium term, we would expect most players to reset or readjust their Hong Kong store networks to avoid over-reliance on tourist spending.

    “We see a need for the Hong Kong and international brands and retailers listed in Hong Kong, which have heavily de-rated in recent years, to review their business strategies and seek out new business drivers, [so] that they remain relevant to investors.”

    Ling says she expects Sino-US tensions to continue while the mainland Chinese government focuses on stabilizing economic growth this year.

    Given that backdrop, Jeffries would favor recommending investment in Hong Kong-based retailers and manufacturers of low-ticket items like staple goods, food retailers and the fast-food segment, as they are more resilient.

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  • Fast Retailing cuts earnings forecast on Hong Kong

    Fast Retailing cuts earnings forecast on Hong Kong

    Fast Retailing, the parent of the Japanese fast-fashion retailer Uniqlo, has reduced forecasts for its full-year operating profit by 11 percent.

    The Japanese company says its business has been adversely affected by protests in Hong Kong and a trade war between Japan and South Korea that resulted in a boycott of Japanese products in a territory that contains the most Uniqlo outlets in a single territory after China.

    “Korea is a very important segment for us, and it’s not clear how long this situation will continue,” said Fast Retailing CFO Takeshi Okazaki.

    Fast Retailing has reported consistently increasing earnings since 2016 – until now. In the current financial year’s first quarter, sales dropped by 3.6 percent, while its international operating profit fell 28 percent.

  • Vietjet Announces Five New Routes to Japan and Commences Two New International Routes from Can Tho

    Vietjet Announces Five New Routes to Japan and Commences Two New International Routes from Can Tho

    Vietjet has unveiled a total of seven new routes, further expanding its international flight network. This includes the announcement of five new routes linking Hanoi, Da Nang and Ho Chi Minh City to multiple destinations in Japan, and the commencement of two new routes connecting Can Tho with Seoul and Taipei.

    The announcement of the launch of five new routes between Vietnam and Japan took place at Furama Resort’s International Convention Palace in Central Vietnam on 13 January 2020, where Vietjet took part as a member of the Keidanren (Federation of Economic Organisations in Japan). The announcement ceremony during the Japan – Vietnam Bilateral Tourism Promotion Conference, which welcomed more than 1,000 delegates from Japan, including officials from Japan’s National Assembly, the Japanese government and leaders from major Japanese corporations. Vietnam’s Deputy Prime Minister, Vuong Dinh Hue, and the Secretary-General of the Liberal Democratic Party of Japan cum President of the Japanese-Vietnamese Parliamentary Alliance, Nikai Toshihiro, were among those that attended the ceremony.

    The five new routes, Hanoi – Nagoya, Ho Chi Minh City – Nagoya, Da Nang – Nagoya, Hanoi – Fukuoka and Hanoi – Kagoshima, are expected to commence operations in 2020. With a total of ten direct routes now connecting Hanoi, Ho Chi Minh City and Da Nang to Tokyo, Osaka, Nagoya, Fukuoka and Kagoshima, the new flights will continue to facilitate positive bilateral relations between Vietnam and Japan culturally and economically while contributing to Vietnam’s goal of attracting one million Japanese tourists in 2020.

    Vietjet has also inaugurated its first two international services connecting Can Tho, the hub city of the Mekong Delta region, with Taipei and Seoul. Attending the launch ceremony on the morning of 12 January 2020 at Can Tho International Airport were President of the Vietnam Fatherland Front Central Committee Tran Thanh Man, Chairman of People’s Committee of Can Tho City Le Quang Manh, Vietjet Managing Director Luu Duc Khanh, Vietjet Vice President Do Xuan Quang and other leaders from related Ministries, Departments and Authorities. During the event, Vietjet also donated to the Fund for the less fortunate of Can Tho City to usher in the Tet season for the less privileged.

    The Can Tho – Taipei route operates four return flights per week starting from 10 January 2020. The flight departs from Can Tho at 12.40 pm and arrives in Taipei at 5.10 pm. The return flight takes off from Taipei at 6.10 pm and lands in Can Tho at 8.55 pm. All in local times.

    The Can Tho – Seoul (Incheon) route will operate three return flights per week starting from 16 January 2020. The flight departs from Can Tho at 4.50 pm and arrives in Seoul (Incheon) at 11.55 pm. The return flight takes off from Seoul (Incheon) at 2.30 am and lands in Can Tho at 6.20 am. All in local times.

    Vietjet currently operates the greatest number of routes and flights to Can Tho International Airport, with seven domestic routes and two international routes. Since the first flight that commenced in 2014, Vietjet has contributed significantly to the transformation of Can Tho’s tourism industry with an average growth rate of 30 percent of the total number of tourists in the city each year.

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  • The improved popularity of Cricket and the billions it makes in India

    The improved popularity of Cricket and the billions it makes in India

    Cricket is one of the most popular sports in countries like the United Kingdom, India, and Australia. However, most of the market share of this sport is taken by India considering how the country has such a large population. In fact, the largest event in the sport, Indian Premier League (IPL) is sometimes responsible for revenues averaging $3 billion within a year.

    In fact, 2004 was the best performing year for the IPL where it managed to generate around $4.1 billion revenue just from advertising, player auctions and viewership fees. The only time that it managed to match the same numbers was in 2017, signaling that the sport is starting to become more and more popular over the last few years after decreasing significantly in the decade.

    How the IPL generates income

    The Indian Premier League, much like any other sports industry in the world relies on advertising, viewership tickets and the auctions conducted on the players. Not to mention dozens of sponsors vying for a spot on the sportsmen’s uniforms and etc.

    Whatever the sports industry gets their hands on, they manage to generate some income out of it, but there are some that are better at it.

    When it comes to world coverage, there is no sport that beats football, but in terms of the volume of viewers, Cricket is starting to climb the ranking thanks to the millions of viewers from India alone.

    You see, by pairing up the prices of the United Kingdom and Australia with the viewership of India, Cricket is able to generate billions of dollars by simply recording the games and airing them on specific channels where they get additionally profitable advertising deals.

    A darker side of Cricket

    Finally, we have one of the most popular and pretty much ancient ways of generating profit from sports. Betting.

    Cricket, much like any other sport in the world has a large betting industry. Every viewer has the opportunity to place a bet on their favorite player as well as a team to predict the outcome of a match. If they were correct, they get a significantly large sum of money back.

    However, considering how Cricket is a sport where almost everything can go wrong within seconds of starting the game, the chance to win is much lower. However, in order to compensate for these issues, especially during the Indian Premier League 2020, most betting companies increase the prize pool to make it more enticing.

    It would be false to say that nobody wins when betting on Cricket, but it’s much harder and complicated when comparing it to betting on football or basketball.

    2019 proceedings to predict 2020

    The IPL conducted in 2019 received the valuation of around $6.8 billion, giving the sport the highest value it has ever seen in the past.

    In terms of ad revenue, the 2019 IPL season managed to bring in slightly more than it’s 2018 predecessor, but that doesn’t mean that 2020 will see an increase on that number as well.

    You see, when industries grow extremely fast over the years, every year becomes harder and harder to match. Imagine a company that had the goal of achieving $20 million in revenue in 2015. Let’s say they managed to do it and increased their goals for 2016 of around $22 million. They reached it as well but with much more hard work and dedication. Say this continues up until 2018 where the company barely managed to reach its goal of $30 million in revenue. So much so that they had to fire some employees along the way just to reach it.

    The $35 million goals for 2019 would become even harder, and thus have the possibility of making the company fail. Constant growth is not maintainable and hyping it up will bring a lot more damage than it will fix.

    Therefore, there are many experts saying that overcoming the expectations of IPL 2020 revenue is going to be nearly impossible.

    Because of this, it is expected that in the year 2020 there will be a lot fewer sponsors vouching for teams and individual players, fewer people watching the events and even players participating in it due to slightly lowered salaries and payouts.

    Overall, the expectations on IPL 2020 performance are very pessimistic, however, should they prove to overcome this pessimism, it’s almost guaranteed to kickstart a new level of confidence in the sport for coming seasons in 2021 and 2022. So IPL 2020 is more of an investment for the sport than the organizers can realize.

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  • Cartier flagship opens on Tmall Luxury Pavilion

    Cartier flagship opens on Tmall Luxury Pavilion

    Cartier flagship has opened on Alibaba’s premium Tmall Luxury Pavilion, becoming the first Richemont-owned business to launch a standalone boutique on the site.

    “The Tmall Flagship boutique marks a milestone within the Maison’s longstanding presence in China, reflecting the inheritance of the pioneering spirit embedded in the Maison’s DNA,” said Cyrille Vigneron, president and CEO at Cartier International.

    He said the Cartier flagship’s launch will provide significant opportunities for the brand to embrace China’s fast-moving retail environment in order to further strengthen its commitment to Chinese clients, given the increasingly complex e-commerce landscape of the market.

    Besides a wide collection of jewelry, timepieces, and accessories, the Cartier flagship on Tmall features the global debut of two exclusive collections: the Juste un Clou small model bracelet with diamonds and the Guirlande chain wallet bag.

    The brand offers special services including red box engravings and door-to-door Cartier Bellboy delivery services for the first 288 clients.

    To celebrate the launch, Cartier Tmall has created a hashtag #Let’s Cartier on Weibo and unveiled its grand opening ceremony this February with Tmall Super Brand Day.

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  • Superdry issues profit warning as it ‘fails to resonate with consumers’

    Superdry issues profit warning as it ‘fails to resonate with consumers’

    Superdry has released woeful Christmas results with a sales slump that has forced the retailer to revise its underlying pre-tax profit projection from £41.9 million to be between nil and £10 million for the current year.

    Superdry has claimed the decline in revenue across all channels is down to its focus on a full-price stance, subdued consumer demand and shortages of some of its better-selling products as well as timing issues. During a period of transformation, some hiccups are to be expected, however, problems such as timing issues and failures in inventory management indicate that CEO Julian Dunkerton has not yet been able to significantly impact the product proposition and in turn, the sales performance.

    Investors were spooked by the disappointing results with the share price down 16 percent on Friday morning in London trading.

    There remains an overarching emphasis on returning to full price sales alongside revitalizing the product range but  Superdry must focus on speeding up the implementation of its ‘new design philosophy’ which it announced will not have full impact until Autumn/Winter 2020.  While the product offer is being addressed, given the speed of degradation of the ‘old philosophy’ stock, the retailer must place greater urgency on its design transformation strategy otherwise it risks losing further market share to more nimble competitors.

    One example of those is JD Sports which has gone from strength to strength through constant evolution, implementing an effective merchandising strategy that resonates with its target audience while also partnering up with prominent influencers, helping to keep the brand relevant.

    Superdry must now ensure it uses the expertise of its new creative head, ex-Nike executive Phil Dickenson, to help rapidly restore its style credentials so that it can justify its full-price proposition and breathe some trend-focus into its brand to regain its long lost “cool-factor”.

  • RELX China flagship set to open in Shanghai

    RELX China flagship set to open in Shanghai

    E-cigarette company RELX Technology has opened its first RELX China flagship and says it aims to have 10,000 stores globally within three years.

    Located in Shanghai’s CBD, the RELX China flagship occupies a 140sqm area, creating a space to educate existing adult smokers and vapers on RELX vapor products.

    “Consumers nowadays prefer immersive shopping experiences, and we want to make this flagship a place where we can not only better communicate with them about our product and values but also better understand their needs,” said Wang Tao, head of RELX’s new retail business.

    According to Wang, RELX will launch stores in various cities, such as Beijing’s 798 art hub and Shenzhen’s Hai Gang Cheng, to provide what he describes as “avant-garde experiences” to consumers.

    The RELX flagship features four zones including a brand experience area, a consumer education area, an interactive zone, and a device-engraving service. The store uses a facial-recognition technology called Project Sunflower to identify minors attempting to enter the store. Customers also have to undergo another layer of verification to ensure their ID matches before making a purchase.

    RELX says it plans to invest RMB 500 million in establishing 10,000 stores globally over the next three years.

    “RELX is investing heavily in breakthrough technologies to enhance franchisees’ profit margins and increase consumer loyalty during the course of its brick-and-mortar expansion,” said Jiang Long, co-founder and head of sales at RELX. “As always, our focus will remain on preventing minors from using e-cigarette products and leading the path of innovation for the entire industry by developing advanced retail technology.

    Launching its first retail store last January, RELX China operates more than 1400 outlets across 300 cities.

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  • JewelleryNet relaunches with new features

    JewelleryNet relaunches with new features

    B2B online community JewelleryNet has launched a series of new features on its platform for sourcing, market intelligence, industry updates and trade fair information.

    The new JewelleryNet’s faster speed and mobile-responsive interfaces are expected to allow for faster, targeted searches; more productive visits; greater user convenience and efficiencies as well as a better user experience altogether.

    The online resource brings together professional buyers and sellers, based on Informa Markets’ Jewellery Group. It has more than 147,000 registered users from 190 countries and regions.

    “As we enter a new decade, a reinvigorated JewelleryNet is ready to help the international gem and jewelry industry address current business realities and explore more avenues of growth,” said Informa Markets’ director of jewelry fairs Celine Lau.

    JewelleryNet hosts the online showrooms of more than 4000 suppliers from around the world, featuring more than 10,000 products across nine categories. The platform’s showroom services and business solutions are available to non-trade-fair exhibitors through a supplier membership plan.

    JewelleryNet also provides market intelligence and industry updates produced by trade publication JNA. Aside from regular news stories on the latest developments in the international gem and jewelry industry, the site carries content from the bimonthly, bilingual (English & Simplified Chinese) magazine and its various titles along with their digital versions.

    The platform likewise supports more than 10 major international jewelry trade fairs and provides details of other trade shows and events all over the world. More projects, initiatives, and events in Informa Markets’ Jewellery Group portfolio will eventually have a presence on the platform.

    JewelleryNet now also offers its members and visitors more opportunities for business development. Suppliers on the platform receive marketing exposure through online showrooms backed by strategic, sustained promotions online, onsite and on social media, among others.

    Another key component of the new JewelleryNet is its online-to-offline solutions to facilitate business dealings on the platform and at trade fairs. Interactive features allow buyers and suppliers to connect and communicate directly.

    The platform has also introduced business matching services for more efficient and effective sourcing. Buyers can submit quotation requests for specific items seeking suppliers; the program likewise assists buyers in planning their sourcing activities at trade fairs by allowing them to examine suppliers’ backgrounds, preview their goods, preschedule onsite meetings efficiently and then conduct business at the show.

    “JewelleryNet’s expanded business solutions reaffirm Informa Markets’ unwavering commitment to the growth and continued development of the international jewelry industry,” said Lau. “Its new interactive functions and business matching program complement our trade fairs and events by enabling buyers and sellers to conduct preliminary discussions and due diligence prior to negotiating business deals at our shows. These align with our corporate philosophy to create platforms for international markets to trade, innovate and grow.”

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  • Starbucks Vietnam opens new concept outlet at Ecopark

    Starbucks Vietnam opens new concept outlet at Ecopark

    Starbucks Vietnam has opened a concept store at a new urban development called Ecopark in Hung Yen, near Hanoi, its 63rd store in the country.

    Located at the heart of Summer Park, Starbucks Ecopark features a mixture of rural and modern aesthetics, creating “a space that seeks a sense of harmony with its natural surroundings and the buildings bold structure,” the company said in a statement

    “Starbucks Ecopark is our first store opening for 2020, when we set our seventh anniversary of Starbucks Vietnam,” said Patricia Marques, GM of Starbucks Vietnam. “I believe it will be a great gathering place for family and friends.”

    Designed by local company Vietnambuilding and built by Ecotech, the new Starbucks cafe’s exterior features wooden louvers across the entire ceiling. Inside, further linear forms can be found in a low island serving counter which gives unobstructed views to an angled bar behind.

    Nguyen Duc Hiep, chief architect at Vietnambuilding, said the designers incorporated the exterior brick into space and used natural materials such as wood finishes to amplify the atmospheric mood.

    “Respecting the present landscape and green trees is our first thought when visiting the site,” he said.

    “It is also a challenge for us when we want to propose an impressive construction without interfering with the landscape or removing any tree in the garden.”

    Starbucks did not explain why it defines the new outlet as a concept store. however, it does appear to take the third-place concept into a more natural, landscaped garden environment not possible in a mall or high-street location.

  • Hong Kong’s CitySuper evaluating sale options

    Hong Kong’s CitySuper evaluating sale options

    Hong Kong-based firm The Fenix Group may sell its majority shareholding in high-end supermarket operator Hong Kong’s CitySuper Group.

    According to Bloomberg, if potential buyers show interest in the stake, it may be worth between US$300 and $400 million.

    Any potential purchaser at this time will inherit a business in the midst of Hong Kong’s first depression in a decade, and with significant financial stimulus policies expected of the current administration. That said, the supermarket sector has been relatively unscathed by the decline in retail sales since protests began back in June.

    Fenix provided the original funding for the group and may yet decide to retain ownership of the business.

    Hong Kong’s CitySuper Group operates in Hong Kong, Shanghai and Taiwan across three brands, the most well-known its own name.

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  • Bank Rakyat Indonesia Earmarks Funds For E-commerce

    Bank Rakyat Indonesia Earmarks Funds For E-commerce

    Indonesia’s first digital bank, Bank Rakyat Indonesia announced on Monday that it has earmarked $1 million for Indonesia Mall, an early-stage assisted e-commerce program that aims to help small enterprises open new revenue channels by participating in the online retail market.

    To serve the growing numbers of micro and small-medium enterprises (MSMEs) populated by the region’s e-commerce boom, Bank Bank Rakyat Indonesia (BRI) rolled out Indonesia Mall in October 2018 with the goal to bring MSMEs online and give them easy access to a larger local and overseas markets.

    Indonesia Mall, an in-house program of the bank, helps small companies post their listings on Bank BRI’s Indonesia Mall e-stores, plus help them package and photograph products. It also provides logistics, shipping, and inventory, and even facilitates overseas exports.  So far, Indonesia Mall has signed up more than 10,000 MSMEs and those that have joined the program have reportedly seen revenues rise by 40 percent on average, the bank said in a statement on Monday.

    Many MSMEs in Indonesia continue to have limited access to the formal financial sector, with large swaths of the population still remaining unbanked.  By not having bank accounts, these enterprises would have difficulties collecting payments online.

    MSMEs employ 116.7 million people – more than 97% of the total national workforce, according to data from Indonesia’s Central Statistics Agency. However, less than 15 percent of MSMEs have proper access to financing.

    Indonesian e-commerce is growing at an average of 16.3 percent annually and is now worth 238 trillion Rupiah (US$16.6 billion), according to Global Data. This growth is expected to spike further by 2023, with the industry value predicted to reach 436 trillion Indonesian Rupiah (US$30.3 billion), reflecting growth of nearly 85 percent.

    Bank BRI-assisted MSME partners range from individual craft artisans to small snack-makers, tailors, and more. Their products can be directly purchased via major e-commerce platforms such as Tokopedia, Shopee, Bukalapak, Blanja.com, Blibli.com, Qoo10 in Singapore, and others.

    Indonesia Mall aims to offer MSMEs infrastructure, ecosystem, and capacity for business and resources developed with the goal of helping its partners sell within Indonesia, as well as overseas.

    To this end, Bank BRI cross-sells products on Indonesia Mall with its credit cards, debit cards, and other programs. Besides selecting and curating a top product list, Indonesia Mall also runs marketing campaigns on most major e-commerce platforms so as to keep its sellers’ products visible on an ongoing basis.

    Bank BRI is the largest microfinance institution and is one of Indonesia’s leading commercial banks and the country’s largest lender by assets.

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