Tag: asia

  • Sales up for Tiffany in China, other markets struggle

    Sales up for Tiffany in China, other markets struggle

    Double-digit sales growth for Tiffany in China provided some encouragement for the US jewelry retailer in what was otherwise an unremarkable half.

    And despite the brand’s strength on the mainland, Tiffany’s CEO Alessandro Bogliolo expressed concerns about the second half, referencing the ongoing social disruption in Hong Kong.

    “As with the first quarter, we are encouraged in the second quarter by sales growth attributed to our local customer base globally, which was again led by double-digit growth in Mainland China,” he said, noting sales to tourists were softer.

    “With the tough comparison to last year’s strong performance in the first half behind us, and in spite of the headwinds of weak demand from foreign tourists, currency exchange rate pressures and continuing business disruptions in Hong Kong, we are actively managing what is in our control and positioning our brand to win – accelerating new product introductions and keeping a visible profile.”

    Across Asia-Pacific, total net sales decreased 1 per cent in both the second quarter and the first half, to US$298 million and $622 million, respectively, which included comparable sales declines of 3 per cent in the second quarter and 4 per cent in the first half, balanced by the opening of new stores and increased wholesale sales. The declines were largely due to currency changes.

    Sales performance throughout the first half reflected strong growth by Tiffany in China, softness in Hong Kong and mixed performance in other markets in the region.

    In Japan, total net sales of $155 million were unchanged in the second quarter and decreased 2 percent to $300 million in the first half, and comparable sales decreased 1 percent and 2 percent, respectively. On a constant-exchange-rate basis, sales decreased 1 percent in both quarters, while comparable sales decreased 3 percent and 2 percent, respectively.

    Neil Saunders, MD of GlobalData Retail, said that after taking into account the strong prior-year numbers the Tiffany results reflected a marked deterioration from the type of growth being achieved several quarters ago.

    “Domestic (US) demand slipped modestly, mostly among middle-income shoppers who are cutting back more on expensive, unnecessary purchases. Tiffany has not been able to entice them with its various collections in the way it was doing last year.”

    However, he said GlobalData’s research showed that while marketing efforts are not necessarily driving sales, the company is improving traction with younger shoppers.

    “From our data, brand awareness is still rising among the under 35 cohort; however, conversion among this age band has been static over the past few months, meaning that Tiffany is not doing enough to activate this group.”

    Saunders said the planned launch of a range focused on male customers provides a strong an opportunity for Tiffany, but warned it will take time before it resonates, mostly because the retailer’s overall offer remains very focused on women and men know the brand through shopping for women.

    “We do not think this initiative will be an overnight success. It will likely take a long time to change the perception of men and to get them actively shopping with the brand.”

    He concluded that while Tiffany’s sales were not yet reflecting the efforts being invested in improving the brand, it was important that the company “holds its nerve”.

    “Many of the strategies the company has put in place to refresh the brand are directionally correct and are working. There is a case for greater innovation in ranges, especially more modestly priced collections, as well as some elevated marketing over the holiday period. However, neither of these things will entirely counteract a tougher external environment – it will only take the edge off the difficulties.”

  • Forever 21 may seek bankruptcy protection in court

    Forever 21 may seek bankruptcy protection in court

    Californian fast-fashion retailer Forever 21 is reportedly preparing to file for bankruptcy protection after failing to reach a deal to refinance its heavy debt load.

    Citing people with knowledge of the plans, Bloomberg has reported that the company has been in talks for additional financing and working with a team of advisers to help it restructure its debt, but negotiations with possible lenders have so far stalled.

    There are reports that a major barrier to any deal being reached is the unwillingness of co-founder Do Won Chang to accept less than a controlling interest in the business in return for investment which could place the retailer on a firmer financial footing.

    Now the company is believed to be looking to secure a so-called ‘debtor-in-possession loan’ which would allow it to file for Chapter 11 bankruptcy protection.

    With more than 800 stores in the Americas, Asia and Europe Forever 21 grew from a single store in Los Angeles in 1984 opened by Chang and his daughter Jin Sook. While its international growth trajectory was rapid in the 2000s, in later years it has failed to keep pace with European rivals H&M and Zara and Japan’s Uniqlo, leading it to shutter flagship stores like the giant, three-story space in Hong Kong’s Causeway Bay.

    It no longer has a store in Hong Kong, but sells online there. In Asia, its network covers the Philippines, South Korea, Japan, Malaysia, Singapore, Indonesia, and India.

    Like a raft of other troubled US retailers entering Chapter 11 protection, Forever 21 would have the ability to close unprofitable stores, reduce its payroll and recapitalize the business.

  • Fitbit debuts fitness and health Premium subscription service

    Fitbit debuts fitness and health Premium subscription service

    Alongside the Versa 2 smartwatch, Fitbit announced a subscription-based fitness and health service that it calls Fitbit Premium. The service uses unique data from each subscriber to deliver a personalized experience “with actionable guidance and coaching.”

    The premium service is meant to help users achieve their health and fitness goals and costs $9.99 per month. At launch, Fitbit Premium includes nine guided health and fitness programs, which will help subscribers get more sleep, wake up energized, increase their activity, manage nutrition and create lasting healthy habits.

    Among the programs that subscribers will be able to use, Fitbit mentions actionable coaching, daily tips and tricks, structured workout plans, relaxation tools, recipe suggestions, and educational content.

    But that’s not all, as Fitbit promises to launch additional activity, sleep, and nutrition programs by the end of the year. Also, to help those with a condition such as diabetes or weight loss, Fitbit says it will launch a personal, one-to-one coaching service in 2020, with a limited pilot targeted to roll out later this year.

    Fitbit Premium will start rolling out in September at $9.99 per month or $79.99 per year. However, promotional pricing and product bundle offers might be available before and after the premium services releases.

  • Motorola might drop Qualcomm’s chipsets for the Moto G8 Play

    Motorola might drop Qualcomm’s chipsets for the Moto G8 Play

    We don’t expect Motorola to announce a new lineup of mid-range smartphones until next year, but that doesn’t mean the US company is not already working on the Moto G8 series. Even though we’re still far from an official announcement, the first details about Motorola’s plans regarding some of its upcoming phones have already emerged.

    The folks over at XDA Developers report at least one of Motorola’s upcoming smartphones, the Moto G8 Play will no longer come equipped with a Qualcomm processor. Instead, Motorola plans to include either the MediaTek Helio P60 or the MediaTek Helio P70.

    On the bright side, the Moto G8 Play is rumored to pack a much larger 4,000 mAh battery, a 1,000 mAh increase over the current Moto G7 Play model. Also, the smartphone will include either 3 or 4GB RAM and 32 or 64GB of internal memory. Pretty much every part of the phone (memory, battery) seems to have been improved over the current model, although we’re not so sure about the processor.

    Furthermore, depending on the market, the Moto G8 Play will support NFC (Near Field Communication), dual SIM, both, or neither of those. For the time being, Motorola plans to launch the Moto G8 Play in Latin America, Asia Pacific countries, and Europe, so there’s no telling whether or not it will bring it to the US.

  • The success of the iPhone keeps Apple from moving production out of China

    The success of the iPhone keeps Apple from moving production out of China

    With U.S. President Donald Trump willing to tax U.S. companies and consumers into a recession, Google apparently is ready to move the production of its Pixel handsets and smart speakers out of China and into Vietnam and Thailand respectively. Apple has yet to announce a move away from China although reports earlier this year indicated that it was looking to shift 30% of its manufacturing out of the country. And yes, Vietnam is one of the regions that many believe will end up home to some of Apple’s manufacturing facilities-eventually. But this won’t happen overnight; finding a trusted supply chain and trained workers take time.

    Apple does have an incentive to move its production out of China; starting on December 15th, the iPhone will be included in a group of products from China that will be taxed at 15% when imported into the states. Originally, the tariff was supposed to start on September 1st, but President Trump didn’t want the Christmas holiday season marred by slower growth due to the tariffs. However, the Apple Watch and the AirPods face a 15% tax starting on September 1st.

    Apple could decide to eat all or some of the tax or pass all or some of it on to consumers in the form of higher prices. Considering that 13.8% fewer iPhones were sold to consumers globally during the second quarter (year-over-year), Apple might decide to absorb the additional costs for now.

    While Apple does produce a small number of iPhones in India, this was originally done to escape an Indian import tax that might have made it hard for consumers in the country to buy an iPhone; while it is the second-largest smartphone market in the world, India is a developing country after all. But what is frightening to consumers worried about higher iPhone prices is that the tech giant is becoming more reliant on its manufacturing facilities in China. According to Reuters, Apple has added far more factories inside the country than out of it. It’s main contract manufacturer Foxconn has expanded from 19 Chinese factories in 2015 to 29 this year. And Pegatron, another company paid by Apple to assemble its products, has gone from 8 plants in the country to 12 over the same time period.

    And supply chain data calculated by Reuters shows that Apple is pretty much still committed to China. 44.9% of Apple’s suppliers were in China back in 2015, a figure that has actually risen to 47.6% this year.

    “The vast majority of our products are kind of made everywhere. There is a significant level of content in the United States, and a lot from Japan to Korea to China and the European Union also contributes a fair amount. … I think that will carry the day in the future as well.”-Tim Cook, CEO, Apple

    If you’re wondering why Google can easily shift Pixel production from China to Vietnam and Apple can’t, it is a matter of scale. Even after doubling the number of Pixel handsets to be assembled this year, Google is building only 8 to 10 million phones in 2019 which is a drop in the bucket compared to the number of iPhones that Apple churns out in the course of a year. So Apple needs a larger supply chain with companies that it can trust to deliver in the quantity and quality it needs for the iPhone. But the company might have no choice but to keep iPhone production in China. According to Dave Evans, CEO of San Francisco supply chain firm Fictiv, there are only a few places outside of China that can produce 600,000 phones a day. In other words, the success of the iPhone is what is keeping Apple in China despite the tariffs.

  • HSBC Offers Fee Cuts, Rebates to Support Hong Kong SMEs

    HSBC Offers Fee Cuts, Rebates to Support Hong Kong SMEs

    HSBC has announced a range of measures intended to help struggling businesses cope with challenges from the China-U.S. trade war and the anti-government protests in Hong Kong.

    As the Hong Kong economy is facing its worst crisis in a decade, HSBC has become the first bank to take action to help its small and medium enterprise customers by offering fee cuts and rebates.

    The bank and its subsidiary Hang Seng Bank are offering an interest rebate of up to HK$20,000 ($2,550) to SMEs that take out loans under SME Financing Guarantee Scheme and the SME Loan Guarantee Scheme for repayments made between March and August.

    At the same time, the bank is extending until June 30, 2022 its subsidy of up to HK$50,000 that is given to SMEs to pay for the fee for the government to back the loan. From September 2 until the end of the year, merchants will also enjoy lower fees for B2B transfers using HSBC’s PayMe platform as the bank has revised its fee to 0.75 percent, down from 1.5 percent.

    Protests Affecting Business

    Months of anti-government protests across Hong Kong have disrupted business and traffic, and caused a drop in tourist numbers to the special administrative territory and paralyzed shopping areas.

    According to HSBC, SMEs account for over 98 percent of local enterprises and around 45 percent of total employment. We have spent time listening to our customers and have heard their voices at this difficult time, Terence Chiu, the bank’s head of commercial banking for Hong Kong, was quoted by “SCMP” as saying.

    Countries including Singapore and the U.S. have issued advisories to defer non-essential travel to Hong Kong.

  • Saudi Arabia – The Global Investment Powerhouse for AI and Automation

    Saudi Arabia – The Global Investment Powerhouse for AI and Automation

    The Kingdom of Saudi Arabia’s Vision 2030 plan explicitly spells out the nation’s ambitious attempt to radically overhaul its economy. With carefully curated programs and clear-cut themes that are designed to deliver impact against strategic objectives, Saudi Arabia is intensely working towards becoming an international trade hub connecting three continents: Africa, Asia and Europe. KSA seems to be shifting from its major dependency on oil revenue to a more diversified economy by maximising its investment capabilities including emerging technologies from around the world through the Public Investment Fund. According to a global study conducted by PWC in 2017, AI could contribute to US$135 billion (12.4%) to Saudi Arabia’s GDP by the year 2030 that is the second-highest share in the region after the UAE.

    As a part of its Vision 2030 plan, Saudi Arabia has earmarked billions of dollars in robotics and artificial intelligence, making it a pillar of the nation’s economic development strategy. According to a report by McKinsey & Company, routine-task intensive sectors such as manufacturing, transportation and logistics have a technical automation potential greater than 50%. Similarly, 41% of existing work activities in Saudi are theoretically automatable today.

    In line with Saudi Arabia’s Vision 2030 plan, the Riyadh edition of World AI & RPA Show organized by ALAGAT in collaboration with international business events and consulting firm Trescon, is taking place on 16 and 17 September 2019 at the Riyadh Marriott Hotel. The show will demonstrate AI, ML, Robotics, Cyber Security, Analytics, and Automation solutions from top AI & RPA influencers and leaders to give impetus to the ambitious reform program. World AI & RPA Show is also supported by Arab Robotics & AI Association.

    Saudi Arabia’s Vision 2030 initiatives in AI and Automation

    • Improving visa application procedures with the aim of full automation
    • Streamline import/export processes through automation, with a 54% reduction in import dwell times at ports
    • The US$ 500 billion mega-intelligent city project ‘NEOM’ will allow for a new way of life built around the best technologies of the future such as AI, big data, and IoT

    With an estimated impact of US$ 320 billion by AI in the Middle East, the opening day will see focused discussions on AI and ML, Robotics, and Intelligent and Cognitive Automation with an active participation from experts, Saudi Arabia’s top government authorities, and decision-makers from global enterprises. Experts attending the show include, Dr Esam Alwagait, CEO of National Digitization Unit, Government of Saudi Arabia; Abdulmajeed Alomrani, Innovation Director, Small & Medium Enterprises General Authority (Monsha’at), Saudi Arabia; Hisham Hammami, Chief Information Officer for the Ministry of Hajj and Umra; Atif Zaidi, Chief Information Officer of NEOM, Saudi Arabia; Sabri Skhiri, Chief Visionary Officer of Digazu, Belgium; Gary West, Managing Director of Future Mobility for General Motors Middle East, UAE and Dr Satyam Priyadarshy, Chief Data Scientist, Halliburton, United States among other top speakers.

    When asked about the upcoming event, VP – Head of Digitalization and Automation of Bank Aljazira, Faisal Alrashoudi had said, “I believe in the future of AI changing the world. The question is, who is changing AI? It is really important to bring diverse groups of students and future leaders into the development of AI.

    As the RPA market embraces an explosive growth globally, the show will also focus on discussing ground level applications, use-cases and challenges from international subject matter experts and business leaders who are currently assessing RPA in their businesses. “World AI & RPA Show unequivocally aligns with Saudi Arabia’s Vision 2030 plan to empower its economy with advanced technologies. Our mission is to provide momentum to the Vision roadmap by attracting startups, investors and AI experts from all over the world”, said CEO and Founder of Trescon, Mohammed Saleem.

  • Yum China buys Chinese retail chain Huang Ji Huang

    Yum China buys Chinese retail chain Huang Ji Huang

    Yum China Holdings has entered into a definitive agreement to acquire a controlling interest in Huang Ji Huang group, a leading Chinese-style casual-dining franchise business.

    Subject to the satisfaction of closing conditions and regulatory approvals, the transaction is expected to close early next year.

    Founded in 2004 and headquartered in Beijing, Huang Ji Huang has more than 640 restaurants in China and internationally. The group operates primarily under a franchise model and its brand portfolio consists of simmer pot brand “Huang Ji Huang” as well as “San Fen Bao”, a newly launched Chinese fast food concept.

    Yum China is the largest restaurant company in China, with more than 8700 restaurants as of June 30. With the addition of Huang Ji Huang, Yum China aims to gain a stronger foothold and enhanced knowhow in the Chinese dining space, which represents a significant share of the dining market in China.

  • Costs hidden from potential franchisees business

    Costs hidden from potential franchisees business

    Would-be food franchisees are not being given the full picture before they buy into a business, with several franchisors withholding important details including the contact information of former franchisees.

    The ACCC has also found food franchisors were consistently failing to disclose key unavoidable ongoing costs, such as wages, rent or inventory, and were not detailing which essential goods must be bought from a specific supplier.

    The competition watchdog said it was deeply concerned with the findings in its disclosure practices report released on Tuesday, flagging potential court action against some franchisors it believes are in breach of consumer law.

    “Operators of a franchise business can face restrictions imposed by the franchisor, and this is often not realised early enough,” the ACCC said in its report.

    “Disclosure is intended to make this clearer … this information assists a prospective franchisee with their due diligence so they can thoroughly consider if franchising is suited to them, and if a particular franchise is a suitable investment.”

    The food franchising sector has been hammered by bad press in Australia in recent years following allegations of unfair business practices, including by well-known companies such as Retail Food Group, Domino’s Pizza, and Craveable Brands.

    Tuesday’s report follows compliance checks on 12 different franchisors from the food services sector, focused on disclosure of information considered important to someone thinking about buying a franchise

    Among the findings were that eight out of the 12 franchisors made it difficult to contact former franchisees.

    “Our message to someone thinking about buying a franchise is to walk away if you can’t easily contact former franchisees,” ACCC deputy chair Mick Keogh said.

    “You won’t get a realistic picture of the business without talking to them,” Keogh said.

    Seven of the 12 franchisors did not adequately disclose what essential goods were subject to supply restrictions, while most did not share rebate benefits directly with franchisees, and could set maximum retail prices.

    The report showed too many people do not get independent advice before buying a franchise.

    The ACCC said it would now engage directly with the 12 traders in relation to compliance.

    The watchdog receives about 400 reports about franchising each year, with inadequate disclosure by franchisors consistently one of the top two Franchising Code issues reported.

    From July to December 2018, the most common franchising reports were about the food services sector, which includes cafes and restaurants, and takeaway food industries.

  • AirAsia to consider flying to Albania

    AirAsia to consider flying to Albania

    AirAsia Group Bhd chief executive officer Tan Sri Tony Fernandes said the airline will consider flying to Albania.

    The Southeastern Europe nation could be one of its routes in Europe, a market which the airline had hinted about re-entering.

    “Why not? AirAsia is always looking for different places and I never thought about Albania. We are going to have a look.

    “The Albanian Minister (Tourism and Environment Minister Blendi Klosi) is very positive (about bringing us to the country). So let’s see,” he told Bernama on the sidelines of the World Tourism Conference 2019 here, today.

    Fernandes, who was one of the speakers at the conference, shared his experience about transforming AirAsia from a small loss-making company into a global giant in the aviation industry.

    Klosi, who was also a speaker at the conference, expressed his welcome to AirAsia, which he said would help to promote the country’s tourism as well as those of other Balkan neighbours.

    During the conference, both of them jokingly agreed to have AirAsia fly to Albania if the country was willing to provide a free airport and promotional assistance.

    Previously, AirAsia X Bhd chairman Tan Sri Rafidah Aziz said that the airline was looking at expanding its market and had not discounted the possibility of re-entering the European market.

    Earlier this month, Fernandes said Thai AirAsia X would be flying to Europe by the end of this year or early next year.

    He said the long-haul low-cost airline was applying for approval from the relevant authorities.

  • Ethan Allen opens in Taiwan, Cambodia

    Ethan Allen opens in Taiwan, Cambodia

    US interior-design house Ethan Allen has opened new outlets in Taipei and Cambodia as it seeks to expand its international footprint as well as its domestic network.

    Ethan Allen Interiors is an interior-design company which manufactures and retails quality home furnishings through a network of 300 stores worldwide and online.

    Besides the Taiwan and Cambodian outlets, Ethen Allen has recently opened a store in Azerbaijan and four more in the US.

    During the 2020 fiscal year the company says it will open multiple new US outlets and expand further abroad, without revealing the specific markets.

    “The repositioning of our retail network is done with two primary goals: to expand our reach to more customers, giving them the opportunity to collaborate with our interior designers; and to highlight our quality, craftsmanship and incredible diversity of style, the pillars that define Ethan Allen,” said chairman and CEO Farooq Kathwari.

    In addition to its vertically integrated furniture-manufacturing and logistics operation – Ethan Allen currently makes 75 per cent of its products in its North American workshops – the company has a team of more than 1500 interior-design professionals.

    In line with its “classic design, modern perspective” ethos, the company has refreshed 70 per cent of its product line over the past three years.

  • Gome Retail to target smaller cities as part of restructuring

    Gome Retail to target smaller cities as part of restructuring

    Gome Retail Holdings will speed up its penetration into lower-tier Mainland China markets during the year ahead, with about 1000 stores slated for opening.

    The move is part of a broader strategy dubbed ‘Home.Living’ in which the retailer is rolling out innovation and transformation throughout the business.

    For the first half of this year, Gome Retail reported a loss attributable to shareholders of RMB380 million (US$53.1 million), a reduction of the RMB457 million loss during the  corresponding period last year as its restructuring began to show results.

    Group sales for the first half were RMB34.333 million, relatively stable compared with RMB34.706 billion for the corresponding period last year.

    Chairman Zhang Da Zhong says that in the months ahead, the company will further expand into third- to sixth-tier Chinese cities to meet the constantly growing demand of these markets.

    Moving into these markets efficiently is possible due to Gome’s advantages in brand, supply chain and logistics, he said.

    During the first six months of this year, the group’s total gross merchandise volume (GMV) increased by about 1.8 per cent compared with the same time last year, with GMV of its county-level stores (both self-operated stores and New Retail stores) growing by 339 per cent. Sales through its Me Shops grew by about 123 per cent, while sales from smart products grew by 62 per cent. Sales by its new businesses, such as home solutions and the integration of kitchen cabinets with electrical appliances, grew by 108 per cent, and service GMV grew by 32 per cent.

    This year, Gome has entered “a critical stage of its strategic transformation” said Zhang Da Zhong.

    “Leveraging on the advantages of internet technology, Gome has set up a user-base interaction and operation platform under the integration of the three terminals – the Gome app, physical stores and Me Shop.”

    As well as the company’s foray into smaller cities, the company will begin opening a second wave of new Ixina stores, its self-operating integrated kitchen cabinets and electrical-appliances business collaboration with European cabinet brand Ixina. Stores will open in cities including Wuxi and Nanjing, after Beijing and Shanghai, to further boost the brand’s awareness and reputation. Cozy Home, the home-hardware integration solutions chain, will also be developing at full speed, he said.

  • Apple sold 13.8% fewer iPhones during the second quarter

    Apple sold 13.8% fewer iPhones during the second quarter

    The global smartphone market continued to languish during the second quarter according to the latest report from Gartner. 367.9 million units were sold to end-users during the three month period from April through June, down 1.7% from the 374.3 million units rung up during the same period last year. The analytical firm’s senior research director Anshul Gupta notes that high-end models have experienced a harsher slow down in demand than low and mid-range handsets. To generate upgrades, Gupta says that manufacturers are trying things like bezel-less displays, multi-camera setups in back and front and larger capacity batteries.

    Samsung remains King of the smartphone world after selling 75.11 million handsets during the quarter. The company’s market share rose year-over-year from 19.3% to 20.4%. Huawei’s sell-through of 58.06 million phones gave it a 15.8% slice of the global smartphone pie. The company had hoped to be on top of this list by the fourth quarter, but its placement on the U.S. Entity List makes that a long shot. Huawei is not allowed to access its U.S. supply chain, although U.S. suppliers have a second 90-day window to help the company service its existing customers and update certain smartphone models. Despite the ban, Huawei sold 16.5% more units during the period, compared to the same quarter last year.

    Gartner’s data shows Apple selling 38.52 million iPhones during the quarter, down 13.9% from the 44.72 million units it sold during last year’s second quarter. The company no longer reveals this data during its quarterly earnings report but does release a breakdown of revenue. For the calendar second quarter (Apple’s fiscal third-quarter), iPhone revenue declined 12% and represented less than 50% of the company’s total revenue for the first time since 2012. According to Gartner, the iPhone accounted for 10.5% of smartphone sales during the three-month period.

    If Apple continues to struggle with iPhone sales, it will soon be surpassed by Xiaomi. The latter sold 33.19 million phones globally from April through June, representing 9% of the market. Oppo finished fifth after selling 28.11 million phones in the quarter, giving it 7.6% of the smartphone market.

    “Strong demand for Samsung’s new Galaxy A series smartphones and the revamp of its entire entry-level and mid-range smartphone range helped this positive performance. Demand for Samsung’s flagship Galaxy S10 started to weaken during the quarter, however, indicating that achieving growth in 2019 as a whole will be a challenge…too few incremental benefits are preventing existing iPhone users from replacing their smartphones”-Anshul Gupta, senior research director, Gartner

    The struggling smartphone industry is a worldwide phenomenon. Gartner points out that of the top five smartphone markets in the world, only China and Brazil showed growth on an annual basis. China remains the top market in the world for connected handsets with sales of 101 million units during the quarter, a small gain of 0.5% Sales in the country benefitted from lower prices as vendors looked to get rid of their inventories of 4G LTE phones with more 5G models made available. The 10.8 million smartphones sold in Brazil from April through June was 1.8% more than the number rung up in the country during the same time period last year. In India, the world’s second largest smartphone market, 35.7 million phones were sold during the quarter. That was a 2.3% decline on an annual basis as fewer consumers in the country decided to upgrade from a feature phone to a smartphone.

    Gartner says that smartphone sales will remain weak for the rest of the year and that a total of 1.5 billion handsets will be sold to end-users during 2019.

  • Slow Charging Could Be The Long-Term Solution To Sustainable EV Charging Infrastructure

    Slow Charging Could Be The Long-Term Solution To Sustainable EV Charging Infrastructure

    Automakers around the world are pushing hard for new networks that can charge electric cars fast. In Europe, some power companies and grid operators are testing whether it might be smarter and cheaper to move into the slow lane.

    A 15-month study of electric car charging behaviour in Germany has concluded that consumers can be persuaded to accept slow, overnight recharging that could help avoid brownouts from surges in electricity demand or costly upgrades to power grids.

    The prospect of millions of EVs hitting the roads as governments gradually ban new diesel and gasoline cars is seen as a major challenge for power companies, especially in Germany which is switching from nuclear and coal to less predictable sources of energy such as wind and solar.

    The small study in the wealthy Stuttgart suburb of Ostfildern-Ruit though has helped alleviate the concerns of some grid operators that too many electric vehicles (EVs) charging at peak times could cause network crashes.

    The engineers at Netze BW, the local grid operator behind the trial, found that all the households involved came around to leaving their electric cars plugged in overnight and only half ever charged simultaneously.

    “Since the experience with the project we have become a lot more relaxed. We can imagine that, in future, half of the inhabitants of such a street own electric vehicles,” said Netze BW engineer Selma Lossau, project manager for the study.

    Still, with limited EV battery ranges for now, slow, overnight charging doesn’t get around the problem of how to persuade drivers to ditch petrol cars altogether.

    Without a network of fast-charging stations offering quick refuelling, drivers may be wary of using EVs for long trips – which is why some automakers want lots of fast-charging stations to encourage the widespread adoption of electric cars. Slower, or delayed, charging has already gained traction in Norway, Europe’s leading EV market, where nearly 50% of new car sales are zero-emission vehicles.

    A study by energy regulator NVE showed that Norway faces a bill of 11 billion crowns ($1.2 billion) over the next 20 years for low- and high-voltage grids, substations and high-voltage transformers – unless it can persuade car owners to charge outside peak afternoon hours.

    The investment cost to the country of 5.3 million people could drop to just over 4 billion crowns if cars are charged in the evening, and may fall close to zero if batteries are only plugged in at night, NVE said.

    NVE is now working a tariff proposal which will penalise peak-hours charging. Tibber, a Norwegian power company, already offers cheaper electricity for EV charging if you let it decide when your car is charged while firms such as ZAPTEC offer ways to adjust charging to the available grid capacity.

    Some of the 10 households participating in the Stuttgart trial said they initially wanted to keep topping up their cars for fear of running out of juice, but soon adapted to leaving the power company to handle it as it saw fit overnight.

    “At the start, I did not want to take any risks and charged frequently in order to feel secure. Over time, I changed my outlook,” said Norbert Simianer, a retired head teacher who drove a Renault Zoe during the trial. “I grew used to the car and became more at ease in handling the loading process.”

    Simianer and his neighbours were given electric cars and 22 kilowatt (kW) wall-boxes for their garages, alongside two charging points in the street, all free of charge.

    In return, they gave up their normal cars and allowed Netze BW, which is a subsidiary of German utility EnBW (EBKG.DE), to monitor and carry out a deferred and down-scaled charging process during a seven-and-a-half-hour period overnight.

    Netze BW tried various options, either slotting cars in at the maximum 22 kW charging flow one after another, or lengthening the charging time for individual cars by adjusting the power flow, or combining both methods, Lossau said.

    The participants, who used apps to check the status of their car batteries, grew accustomed to the lack of instant charging capability because their vehicles could always handle their everyday commutes of up to 50 km (31 miles).

    EnBW said nine of the 10 households in the trial on Ostfildern-Ruit’s Belchenstrasse had opted to keep the wall-boxes and most were exploring leasing electric car.

    Lossau said monitoring 10 households did not in itself provide the “empirical mass to draw conclusions for the load profile of all of Germany”.

    She also said there would need to be better two-way communication between EVs, the grid and consumers for the system to function efficiently on a large scale.

    “There will have to be more exchange of information between e-cars and the grid to update the loading status in real-time, because otherwise, there can be the wrong impression about the speed of loading,” she said.

    Utility companies developing so-called vehicle-to-grid (V2G) services, however, are struggling to persuade some automakers to use technology that allows two-way flows of information, and power, between batteries and grids.

    Carmakers such as Volkswagen , Daimler and Ford, for example, are prioritising one-directional fast-charging instead to overcome consumer resistance to EVs.

    Japan’s Nissan (7201.T) has been leading the way among carmakers exploring V2G though Germany’s BMW has now decided to develop it too, saying cooperation between cars and grids will be key to making e-mobility ready for mass markets.

    “It is about making sure there is enough supply for the electric cars and that the lights do not go out elsewhere,” a BMW spokesman said. “The cars don’t just load when it’s best for the market, but they can also supply power back to the grid to help even out demand spikes.”

    “There has to be more progress on the data exchanges, however. It is not yet the standard,” he said.

    Nevertheless, the Ostfildern-Ruit trial has raised hopes that power grids might be able to cope with an influx of electric cars, especially if the consumers play ball.

    Even if drivers resist overnight charging, suppliers of software and equipment to power grids, such as Germany’s Siemens, are also looking at safer and more efficient ways to manage how and when power is used to charge cars.The German city of Hamburg, for example, started a three-year pilot project this month with Siemens to pre-emptively identify overloads on transformers and along cables, and manage EV charging points accordingly.

    “Loading processes offer so much flexibility that the overload on the networks can be reduced by deferring loading times or reducing the load that is supplied,” said Thomas Werner, expert at Siemens Digital Grid.

    “This happens through the digitisation of hardware and software and with communication technology,” he said.

    Using software to help protect ageing power networks from predictable surges could also avoid costly hardware upgrades to parts of the 1.7 million km of distribution grids in Germany.

    With few than 100,000 electric-only cars in Germany at the moment, there is little threat of blackouts from over-demand. But the Transport Ministry in Berlin envisages up to 10 million electric cars on the roads by 2030.

    The number of charging points across the country also only stands at 21,000. That’s up 50% over the last year but still barely a fraction of future needs.

    Next up for Netze BW is a trickier test.

    Managing the power for 10 households with electric cars in a suburban street of 22 homes is one thing, now the power company is launching a study of car charging behaviour in an apartment block with 80 flats, where quarrels over access are likely.

    It is also looking at a study in rural areas, where the longer cables required present challenges in maintaining stable voltages for charging.

    But that’s still only part of the story. Lossau said power companies would have to work more closely with carmakers to fill knowledge gaps and exchange information.

    “It can only work if we get more data from each other.”

  • A Happy Pancake opens second outlet at K11 Musea

    A Happy Pancake opens second outlet at K11 Musea

    Japanese cafe “A Happy Pancake” is opening its second Hong Kong Store at K11 Musea.

    Having already launched 26 stores in Japan since setting up its Omotesando shop in 2015, the brand’s new location features a sleek design and decor that aims to bring diners a peaceful, relaxing atmosphere. The store has an open kitchen to show customers the entire hygienic cooking process, letting them observe the pancakes carefully baked one by one before being sent to their tables.

    The walls of the store were designed by 14-year-old called Lara, who has already worked extensively in the fashion industry.

    The brand is launching a new menu item, “Rich Uji Matcha Mousse Pancake”, to commemorate the store opening.