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  • Karl Lagerfeld dies at 85

    Karl Lagerfeld dies at 85

    Karl Lagerfeld, arguably the world’s most iconic designer and undoubtedly the most prolific, has died in Paris. He was 85. In a seven-decade career as fashion’s ultimate free agent, Lagerfeld created collections simultaneously for the celebrated houses of Chanel and Fendi, in addition to his signature label, at a pace without rival in the luxury industry.

    Virginie Viard, director of Chanel’s design studio and Lagerfeld’s closest collaborator for more than 30 years, will take the creative reins at the storied brand’s fashion business. A succession plan has yet to be announced at Fendi.

    For Lagerfeld, to design was to breathe, “so if I can’t breathe, I’m in trouble,” he often quipped to journalists who were astonished by his inexhaustible work ethic and his insistence that he would never retire.

    In fact, his creative output seemed only to become more bountiful in his golden years, a period during which his extravagant runway productions at the Grand Palais in Paris achieved a staggering level of theatrical opulence. At a cost of millions of dollars per season, the events surpassed the mundane boundaries of a fashion show to become something more like large-scale performance art — media spectacles where Lagerfeld, as both gifted designer and visual provocateur, could best demonstrate his ability to interweave the superficialities of fashion with matters of great depth, while also parading seemingly endless ways to keep Chanel’s classic tweeds looking modern and fresh.

    His Autumn/Winter 2017 collection featured a 115-foot-tall mechanical rocket ship that simulated blast off. For Fall 2014, he built a Chanel shopping centre, its superstore-like aisles bursting with more than 500 different products that included a Chanel-logo chainsaw, doormats, candy, and ketchup. For Fall 2010, he imported enough snow and ice from Sweden to create a 265-ton indoor iceberg. Backdrops of a man-made beach with rippling waves (Spring 2019), a scale rendering of the Eiffel Tower (Fall 2017 Couture), a French brasserie with uniformed bartenders (Fall 2015) and an enormous model of a passenger ship (Cruise 2019) suggested no idea was too fantastical, nor expense too decadent.

    His incredible longevity and success as a designer, and, following his logic, the fortunes of the companies for which he worked, owed at least partly to Lagerfeld’s intentional detachment from the business side of fashion. He claimed never to discuss sales figures or budgets with management. “I am a hired gun, even in my own business,” he said in a BBC interview, noting that his contracts with Chanel and Fendi allowed him to do whatever he wanted on the side. “I work my own marionette in a way, my own puppet,” he told The New York Times. “It’s something I control.” That extraordinarily rare freedom from the restraints of financial responsibility enabled him to continually make clothes that inspired consumers to dream.

    “We created a product nobody needs, but people want,” he said. “If you need an ugly old car, it can wait, but if you want a new fashion item, it cannot wait.”

    As designers half his age complained of burnout from fashion’s maddening pace, Lagerfeld made himself even busier by dabbling in a constant stream of publishing, photography, film and design projects, including a rule-breaking “fast fashion” collaboration with the mass retailer H&M in 2004 that predated the industry obsession with disruption by more than a decade. Ignoring the traditional expectations of a luxury player, he also designed hotel rooms, video games, motorcycle helmets, a BMW, and a cosmetics range inspired by his also-famous cat, Choupette, and directed an ad campaign for Magnum ice cream bars that featured a life size sculpture of model Baptiste Giabiconi rendered in chocolate. More than most of his sober-minded peers at fashion’s pinnacle, he relished his iconic status both within the industry and in popular culture. Despite all this extra-curricular output, though, he was driven by one thing in fashion, he said, which was to make his designs better than they were the season before.

    As most profiles of Lagerfeld have noted, another thing that drove him was a desire to know everything. He filled his numerous homes, in Paris, Biarritz, and Saint-Tropez among others, with stacks of history books and biographies, iPods loaded with various types of music, and museum-worthy collections of artwork and furniture that he would, unceremoniously, dispose of every few years, once a new period or style captured his attention. With his vast memory and a rapid-fire way of working and speaking, he could summon details and themes on command, exploit them ruthlessly in a collection, and then immediately move on to the next thing. He once said he had a “Google mind.”

    “Whatever it is, good or bad, it influences fashion,” Lagerfeld said. “You can see that in fashion quicker than in any other thing going on. Fashion is something that reflects our lives and times with the shortest release, because, cars, design and architecture take years to realise.”

    Lagerfeld was, in many ways, a self-drawn caricature of what a powerful designer should look and sound like, a stylistic god who was worldly and intellectual, commanding and capricious. His bitchy quips (“sweatpants are a sign of defeat,” “trendy is the last stage before tacky,” “I think tattoos are horrible — it’s like living in a Pucci dress full-time,” and many, many nasty digs at celebrities he considered fat or unattractive) became as much a part of the Lagerfeld mystique as were his signature white powdered ponytail and dark sunglasses, or his habit of drinking only Coca-Cola (later, Diet Coke or Coke Zero). But his penchant for flamboyance, combined with occasionally reckless comments in recent years, also resulted in backlash for Chanel. His critiques of Angela Merkel drew particular outrage, as when he evoked the Holocaust on a French talk show in 2017 while protesting Germany’s open-door policy toward Muslim refugees fleeing the Syrian civil war. In any event, there had never been any serious repercussions for the designer nor attempts to unseat him, likely as a result of his outsize stature in the industry and his long history of accomplishments.

    He was best known for his work, since 1983, as artistic director at Chanel, which became one of the most profitable and admired luxury brands in the world under his tenure. While the company remains privately held by brothers Alain and Gérard Wertheimer, Chanel took the unusual step of releasing its annual results for the first time last year, stating its sales of $9.6 billion were larger than those of Gucci and approaching those of Louis Vuitton. Chanel’s sales for 2017 were up 11 percent, driving operating profit of $2.69 billion. Chanel said it had decided to reveal its financial strength in response to speculation that the company could be a takeover target, and to demonstrate it was determined to remain independent.

    When Lagerfeld was first approached by the Wertheimer family, which had created the Chanel fragrance business and its blockbuster No. 5 scent in the 1920s, and took control the fashion house after World War II, it had been more than a decade since the death of its founder, Gabrielle “Coco” Chanel. Chanel’s hallmark tweed bouclé jackets and dresses, once viewed as liberating, by then seemed old-fashioned and bourgeois, and the company was in need of new direction. Lagerfeld was already well-known for the soft and poetic party dresses he had been making at Chloé in the 1970s, which was during the dynamic growth of European ready-to-wear movement for easy-to-wear and less precious clothes. At the same time, Lagerfeld, since he first arrived in Paris, had harboured a burning desire to work in high fashion as a couturier, and Chanel’s established atelier offered that chance.

    “People tend to forget that once upon a time, Chanel was old hat,” Lagerfeld said. “It was only Parisian doctors’ wives who still wore it.” But it was Lagerfeld’s belief that the image could be changed with a sense of humour and a lack of nostalgia, in order to make customers forget everything that had come before.

    “Because fashion is about today,” Lagerfeld said in a 2007 New Yorker profile. “You can take an idea from the past, but, if you do it the way it was, no one wants it.”

    Lagerfeld described his first collections for Chanel as reflecting a modern and “chic-sexy” approach, with longer and thinner proportions, unlike Coco’s boxy-proportioned precedent. For his spring 1984 ready-to-wear show, he re-imagined classic suits and dresses with matching hats — all in denim, and for fall that year he added a hockey uniform worn with pearls and a skiing outfit in gaudy, glittering silver and red. His transformation of the brand would combine elements of the alluring (softly tailored pantsuits and charming white camellias affixed to tweed suits) with the shocking (oversize logos, micro-miniskirts, sequinned running shoes, heels moulded to look like pistols). The phenomenal transformation of Chanel became an industry model for how to turn an aging fashion house into a status symbol as its sales continued to soar. Lagerfeld’s role was so secure there he was contractually considered its “designer for life.”

    “Why should I stop working?” he mused to anyone who dared broach the subject of retirement. “If I do, I’ll die and it’ll be all finished.”

    Karl Lagerfeld was born Karl-Otto Lagerfeldt in Germany, and raised in the countryside near Hamburg, on Sept. 10, 1933, according to most recent biographies and some of his relatives, although Lagerfeld had for many years claimed he had been born in 1938 or 1935. In her 2006 book, “The Beautiful Fall,” which chronicled the heady decadence of fashion in the 1970s, the writer Alicia Drake argued that Lagerfeld had inflated many details of his childhood as part of a self-invention as a German aristocrat upon his arrival in the Paris demimonde. Lagerfeld sued the writer for invasion of privacy, but his case was thrown out of court.

    Lagerfeld, who changed the spelling of his name for commercial reasons, himself frequently joked about the discrepancy of his age, saying his mother, Elisabeth, a trim, stylish violinist who was highly critical of her son in his childhood, had chosen the date because it was easier to write. (As recently as 2013, Lagerfeld told Paris Match that he was born in 1935.) Further confusing matters, his father, Christian Ludwig Otto Lagerfeldt, was the wealthy managing director of a company that distributed condensed milk from the United States, and had moved the family to the countryside to shelter them from the hardships of the war years under Hitler, leaving little reliable evidence from the early years of Karl, an older sister, Martha Christiane, and a half-sister, Thea, from Lagerfeldt’s previous marriage.

    In the end, Lagerfeld described his childhood as a misery. He was a gifted scholar and loved to sketch, thinking he would pursue a career in illustration, but he had few friends and his mother often complained about his looks, telling him he should not smoke because his hands were unattractive, and that his nose was so large he should order curtains for his nostrils. Nevertheless, his parents supported his artistic ambition and sent him to Paris, where Lagerfeld found immediate success in fashion. In 1954, he won a design contest, called the International Woolmark Prize, based on the sketch of a coat he submitted that was produced for the competition by the designer Pierre Balmain. Of particular note, a young Yves Saint Laurent also won that year in the dress category, foreshadowing what would become a lifelong rivalry between the two designers.

    In their younger years, Lagerfeld and Saint Laurent were close friends. Whereas Saint Laurent was the tortured, fragile artiste who ascended to the coveted role of couturier at Christian Dior following Dior’s sudden death in 1957, Lagerfeld was a pragmatic mercenary. After working for three years for Balmain, who had hired him as an assistant, Lagerfeld designed collections for Patou, Chloé, Krizia, Charles Jourdan, Mario Valentino, and, beginning in 1965, Fendi, the Italian fur company where he contributed designs for an astounding 50 years. Fendi’s sales were estimated by analysts at $1.3 billion in 2017, while the company, acquired by LVMH in 2001, has experienced a major street style moment over the last year with its logo-driven FF Reloaded collection. (In January, Silvia Venturini Fendi, creative director of accessories and menswear, paid tribute to Lagerfeld’s contributions to the house with a fall men’s collection inspired by him, including styles he designed.)

    By the 1980s, Lagerfeld was widely known to the public, even as he was just beginning to design under his own name (Saint Laurent had started a signature company that popularised the French concept of ready-to-wear in the 1960s). Lagerfeld’s own label, called at different times Lagerfeld Gallery or Karl Lagerfeld Paris, has existed on and off as a licensing venture through various partnerships, including a high-profile venture with Tommy Hilfiger in 2004 and most recently with G-III Apparel Group in the United States since 2016, though it has always been perceived as a side project for the designer.

    Still, Lagerfeld was the more disciplined of the two when it came to image and self-control; he was cast as an aristocratic German designer in one of Andy Warhol’s more obscure films, the 1973 “L’Amour,” playing up his persona as the ringleader in the absurdist circus of fashion. His personal iconography included tightly fitted blazers over starched white shirts with startlingly tall collars, and skinny jeans – a complete look he perfected in the 1990s, only after undertaking a dramatic diet. He said he lost 92 pounds in order to fit into the prevailing silhouette of the day, a modern rock-and-roll style orchestrated by Hedi Slimane, who was then at Dior Homme. Lagerfeld became so recognisable for this look that he started using his own likeness as a logo on T-shirts, handbags and furry key chains for Fendi.

    While his competition with Saint Laurent intensified throughout their lives, until Saint Laurent’s death in 2008, Lagerfeld’s ultimate success with Chanel gave him immense confidence and enabled him to pursue opportunities that no other designer would dare touch. His 2004 collection for the Swedish retailer H&M was especially risky, given the fate of other luxury brands like Halston that had lost their credibility after making a mass play. Lagerfeld described the one-off collaboration, which included slim blazers and T-shirts emblazoned with a cartoon logo of his face, as “mass elitism, which has long been my dream… It’s the future of modernity.”

    The collection was an enormous hit, selling out in many markets, unleashing all manner of unorthodox designer crossovers to follow, and further fuelling Lagerfeld’s fame. He was also the subject of at least three documentaries, “Lagerfeld Confidential” (2007), “Un Roi seul” (2007), and “Karl Lagerfeld se dessine” (2013), and several books, including a compilation of his quotations, “The World According to Karl,” from Flammarion (2013), and “The Karl Lagerfeld Diet,” a weight-loss book he published with his physician, Jean-Claude Houdret (2002). For many years, Lagerfeld ran his own publishing imprint, 7L, photographed his own advertising campaigns, and directed short films that imagined the life of Coco Chanel and highlighted connections from Chanel’s history to his own work.

    At Chanel, Lagerfeld was given the artistic license and financial resources to acquire the best talent, including his longtime collaborators Virginie Viard, the creative studio director and tipped as a likely internal candidate to succeed him as Chanel’s designer, and Eric Pfrunder, Chanel’s director of image. At Lagerfeld’s urging, the company also embarked on a campaign to acquire many specialised French craft ateliers, like Lesage for embroidery, Lemarié for feathers and artificial flowers, Maison Michel for millinery, and Causse for glove making. Those resources were celebrated with lavish Métiers d’Art fashion shows held in far-flung destinations, including in Edinburgh, Shanghai, Hamburg, and most recently at the Metropolitan Museum of Art in New York City in December, while Chanel’s cruise collections have been staged from Dubai to Havana, Cuba, reflecting Lagerfeld’s approach to making Chanel’s interlocking “CC” mark recognisable around the world.

    “Logos are the Esperanto of marketing, luxury, and business today,” he said.

    Lagerfeld often said that his only love in life was his work. But he showed his softer side near the end of his life by casting his godson, Hudson Kroenig, the older son of the model Brad Kroenig, in his runway shows. He also gleefully promoted his lavishly spoiled cat, a gift from Kroenig, in interviews and on social media. He once said he wished he could marry Choupette, in what was presumably a humorous jab at his own cartoon-like image.

    “There is no secret to life,” Lagerfeld said. “The only secret is work. Get your act together, and also, perhaps, have a decent life. Don’t drink. Don’t smoke. Don’t take drugs. All that helps.”

  • No more loss for Hong Kong’s Cathay

    No more loss for Hong Kong’s Cathay

    Hong Kong flag carrier Cathay Pacific said on Wednesday it is expected to have swung back to profit in 2018, ending two successive losses as it embarks on a massive overhaul. The recovery also came in a year that saw it suffer an embarrassing data breach that dented its reputation and could could prove costly. The airline said it expects to record a consolidated profit of around US$293 million (RM 1.2 billion) for 2018, compared with US$160 million (RM651 million) losses the year before, according to a preliminary profit alert.

    The company’s share price jumped more than seven percent after the announcement as investors took comfort in the turnaround after two grim years for Asia’s largest carrier.

    “In 2018, the passenger business benefited from capacity growth, a focus on customer service and improved revenue management,“ the company said in a statement, adding its cargo sector was also “strong”.

    Cathay has been overhauling its business after posting its first losses in eight years in 2016, firing more than 600 workers and paring overseas offices and crew stations as it faced stiff competition from budget rivals on the mainland.

    It also added international routes and better services on board its flights in a bid to compete with well-heeled Middle Eastern long-distance carriers.

    The profit alert suggests those moves have paid off.

    The airline narrowed its losses to US$33.5 million for the first half of 2018 – a tenth of what their losses were for the same period in 2017. But the second half of the year appears to have brought Cathay squarely back into the black.

    Dickie Wong, an analyst with Kingston Securities, said Cathay is expected to further benefit from the end this year of costly fuel-hedging contracts.

    “I would say the unfavorable impact to Cathay would continue to reduce,“ he said.

    Wong said the introduction of premium economy had attracted new customers while ticket discounts helped it compete against budget carriers. But he said the company still had “much room to improve in their luxury classes” if it wants to take on Middle Eastern rivals.

    Cathay will announce its full-year result next month.

    But the year was not without trouble.

    In October it sparked outrage when it admitted to a massive breach five months after hackers made off with the data of 9.4 million customers, including some passport numbers and credit card details.

    The airline faces potentially steep payouts in Europe, which boasts strong protection laws and financial penalties for companies that do not swiftly own up to data breaches.

    British-based law firm SPG Law has already launched a group action against the carrier over the breach to help customers seek compensation.

    This year Cathay’s website mistakenly offered first and business class flights for a fraction of their value in two high-profile and costly blunders.

  • Zara campaign featuring model with freckles sparks debate in China

    Zara campaign featuring model with freckles sparks debate in China

    Spanish fashion retailer Zara appears to have inadvertently sparked off a social media furore over the appearance of freckled Chinese model Jing Wen in one of its recent ads. In China, spots on the face are generally considered blemishes and are associated with disease and old age. Freckles are somewhat rare. In a country where racial homogeneity is a touchstone for beauty, outliers – the bushy eyebrowed, the wavy haired – are unlikely to be considered attractive. In the fashion industry, however, it’s these outliers who tend to have the unique, striking looks that brands prefer for their ambassadors.

    Despite hating her freckles as a child, Guangzhou model Jing Wen eventually learned to accept and capitalise on her point of difference. As a model for such brands as Calvin Klein and H&M, her face has even been called “iconic” by China’s media. Even so, her recent work with Zara has produced an outcry among local netizens who claim the use of the model intentionally “uglifies” the Chinese people.

    A BBC report on the freckled Chinese model quoted some disgruntled users of the Weibo microblog as voicing their anger over the images. “Such pictures featuring an Asian model with freckles and an expressionless pie-shaped face mislead Westerners’ impressions about Asian women,” said one user, “and can lead to racism against Asian women.”

    A spokesperson for Zara interviewed by Pear Video website commented that the advertisements were targeted at their global market, and not specifically at China.

    “The aesthetics of the Spanish people are different,” they said, adding “our models are all photographed purely, the pictures aren’t changed, and they’re not modified.”

    Zara’s response has provoked considerable debate within China on the issue, with some claiming the model has been bullied only by her fellow Chinese, and that more should be done to help China’s people embrace beauty in diversity. Others have called into question the false patriotism of those too eager to mount an attack on foreign brands.

  • Under Armour Thailand predicts sales growth

    Under Armour Thailand predicts sales growth

    Under Armour Thailand is targeting a 20-per-cent sales increase in the kingdom, according to the brand’s exclusive Asian distributor Triple Pte Ltd. The company is focusing on footwear sales to follow up on its gains in the apparel sector in a sporting goods market expected to see 5–7 per cent growth this year. It will also offer a wider range of branded products, including sleepwear.

    “Under Armour is a relatively new brand in Thailand, and it has huge potential to spread its wings here,” said company CEO Michael Binger during a visit to Thailand last week. “We want to grow our footwear business at a faster pace than in the past and expect footwear sales to increase to 35 per cent of total sales by 2020, up from 25 per cent last year.”

    As part of this year’s expansion plans, Triple Pte is planning exploratory Under Armour Thailand outlets in the country’s north, with a shop-in-shop scheduled for the Mall Nakhon Ratchasima as well as a potential new shop in popular tourist destination Chiang Mai. It will also launch another branch in suburban Bangkok.

    “We see huge potential in the sporting goods business in Thailand,” said Binger, “and we feel confident in our capability to propel Under Armour to success here because we are an alternative brand for people looking for innovative performance shoes.”

    Thailand is Under Armour’s second fastest-growing market in Southeast Asia after Singapore.

  • PepsiCo franchise rights to be acquired in South, West India

    PepsiCo franchise rights to be acquired in South, West India

    PepsiCo India’s bottling partner Varun Beverages Monday said its board has approved plans to acquire franchise rights of the beverages and snacks major in South and West regions. The board has approved the company’s intent to enter into a binding agreement with PepsiCo India Holdings to acquire franchise rights in the two regions for a national bottling, sales and distribution footprint in seven states and five UTs, Varun Beverages Ltd (VBL) said in a regulatory filing.

    According to a report, upon completion of these acquisitions, VBL will be a franchise of PepsiCo beverages business across 27 states and seven Union Territories (UTs), it added.

    “The proposed acquisitions are in line with the company’s strategy to expand into contiguous territories and will help to acquire greater scale, operational productivity and efficiency leading to higher revenues and profitable growth,” it said.

    VBL, however, did not disclose financial details of the proposed acquisitions.

    The company further said its board will meet on February 26 to consider raising of capital through Qualified Institutions Placement (QIP).

    Last year in January, VBL had entered into a pact with PepsiCo to sell and distribute the latter’s entire Tropicana range of juices along with Gatorade and Quaker Value-Added Dairy in North and East India.

    VBL already held manufacturing, sales and distribution rights for Tropicana Slice and Tropicana Frutz in the two regions.

    PepsiCo had then stated that North and East regions together accounted for 80 percent of the juice market in India and VBL’s contiguous reach would help it more than double the distribution reach in these states.

  • Petronas Gas Q4 profit weighed down by Kimanis Power

    Petronas Gas Q4 profit weighed down by Kimanis Power

    Petronas Gas Bhd’s net profit fourth quarter ended Dec 31, 2018 fell 34.7% to RM317.90 million from RM486.70 million a year ago, largely attributed to share of losses from a joint venture company, Kimanis Power Sdn Bhd. The losses were due to de-recognition of deferred tax assets amounting to RM124.3 million (being 60% share of the group) in relation to certain tax benefits which now have a seven-year utilisation limit under the new Finance Act 2018.

    Its revenue grew 4.9% to RM1.39 billion compared with RM1.32 billion in the previous year’s corresponding quarter mainly contributed by the second liquiefied natural gas (LNG) regasification terminal in Pengerang, Johor which commenced commercial operations in November 2017, coupled with higher revenue from utilities and gas transportation segment.

    The group has approved a fourth interim dividend of 22 sen per share amounting to RM435.3 million in respect of the financial year ended Dec 31, 2018.

    For the full-year period, Petronas Gas’ net profit grew 0.98% to RM1.81 billion from RM1.79 billion a year ago, while revenue of RM5.5 billion was the highest in history, an increase of 12.3% compared to RM4.90 billion last year.

    The Energy Commission has approved the tariffs for the gas transportation and regasification services for 2019. While the tariffs are expected to affect the group’s transportation and regasification business segment revenues in 2019, both segments are anticipated to continue contributing positively to its earnings.

    The group’s gas processing segment is expected to deliver improved earnings pursuant to the higher fixed remuneration charge under the second term of the 20-year Gas Processing Agreement effective from 2019 until 2023.

  • Samsung to invest more in education programs

    Samsung to invest more in education programs

    Samsung Electronics will expand investments to develop youth education programs, it said Monday. The company’s three division heads sent an in-house broadcast to employees that day to share a newly set mission: “Enabling people,” which means to help people discover and develop their innate potential. A particular target will be put on developing programs for teens. The theme that will lay out the direction for this corporate social responsibility campaign is “Education for future generations.”

    Samsung has conducted corporate social responsibility (CSR) activities in the past, but this is the first time the company has publicly announced its mission. It comes a month after Samsung de facto leader and Vice Chairman Lee Jae-yong pledged to fully commit in taking on social responsibility as Korea’s leading conglomerate in a meeting with President Moon Jae-in at the Blue House.

    The No. 1 local company by market cap, Samsung Electronics already has a vast lineup of ongoing CSR programs, including educational ones. The designation and public announcement of the new mission, however, signals that the company will be expanding investment in the sector.

    Although there are no concrete plans at the moment, a spokesman explained there will be an increase in programs for teens. Now that there is a fixed mission, the programs will also be organized in a more “structured” way instead of the company and affiliates independently devising programs on their own.

    “We should realize a new model for future education that is based on our know-how in technology and innovation,” said Samsung President Kim Hyun-suk, who leads the consumer electronics division.

    In Monday’s message, there was a repeated emphasis on Samsung’s increased role in society. President Koh Dong-jin, who heads the mobile device business, for example, stressed that no company can communicate with customers if they do not consider social values.

    The word social responsibility has become increasingly common at Samsung recently, including in statements for the launch of a research center for fine dust and an official apology to former workers in November who got sick working at chip factories. The drive is particularly evident since Vice Chairman Lee returned to the company’s helm after his release from prison last year, which some industry watchers say is a move to improve the conglomerate’s public image.

  • Hyundai may promote its Nexo with bottled water

    Hyundai may promote its Nexo with bottled water

    Hyundai Motor is considering releasing a range of bottled water inspired by its hydrogen fuel-cell vehicle Nexo, the company confirmed Monday. The automaker is hoping to use the Nexo-branded water to market its Nexo sport-utility vehicle (SUV) as pure and eco-friendly, like water. The unusual approach of using water to promote the car’s eco-friendly aspect is thought to be an industry first.

    Hyundai will be partnering with local convenience store chain CU. The date of the water’s debut has yet to be fixed, according to a press officer from Hyundai, rejecting claims by some media outlets that the launch could be as early as next month. The company also said mass production of the bottled water has not yet begun.

    When asked whether the water will be produced using any of the technology that goes into making a fuel-cell vehicle – water is a byproduct of a hydrogen fuel-cell vehicle – the press officer said, “the product will be like general drinking water used for marketing rather than a medium to show our car technologies.”

    The marketing scheme comes as Hyundai Motor Group is increasing its focus on hydrogen energy as its future growth engine.

    Just last month, Hyundai Motor Group Executive Vice Chairman Chung Eui-sun was appointed co-chair of the Hydrogen Council, a group of business leaders that promote hydrogen energy. On appointment, he highlighted the potential of a hydrogen energy-based economy where hydrogen energy would meet 18 percent of the total global energy demand and create millions of jobs by 2050.

    Hydrogen fuel-cell cars are powered by electricity generated through a chemical reaction between hydrogen and oxygen. It is often labeled as the ultimate eco-friendly car because its only byproduct is water, which is environmentally friendly. However, there are still some technological hurdles to make it the most common car on the roads, including high prices.

  • Vietnam aviation faces safety rating challenge

    Vietnam aviation faces safety rating challenge

    Vietnam might find it difficult to maintain its aviation safety rating due to a lack of qualified personnel, experts caution. The U.S. Federal Aviation Administration (FAA) Friday gave Vietnam a Category 1 safety rating, allowing local airlines to operate direct flights to the U.S. “Acquiring this rating is hard, keeping it is going to be even harder,” Dinh Viet Thang, head of the Civil Aviation Authority of Vietnam (CAAV) said.

    He said that the CAAV currently has only 30 aviation safety officers, meeting only 30 percent of the demand. They hire the rest from other airlines.

    The U.S. Federal Aviation Administration (FAA) has required that the CAAV has enough aviation safety officers on its own in upcoming years so that it doesn’t need to hire people from outside, and CAAV plans to meet this goal by 2025.

    However, training these officers is costly, with an individual bill costing over VND5 billion ($216,000).

    One of the biggest hiring difficulties is that aviation safety officers are attracted by the higher salaries offered by airlines compared to state-owned companies, Thang said.

    An aviation safety officer at CAAV earns only VND10 million ($432) a month, while local airlines pay them about VND300 million ($12,960).

    “The government gives us VND20-30 billion ($864,000-1.29 million) each year to hire aviation safety officers and VND10 billion ($432,000) to train new ones, but we really need more investment from the government to develop this team,” he noted.

    Another challenge is meeting FAA safety requirements as they conduct unannounced safety examinations. If Vietnam doesn’t meet these requirements, FAA will downgrade the rating to Category 2, meaning no direct flight to the U.S. is allowed.

    This has happened before in Thailand, Indonesia, Philippines and most recently India, he said.

    Local airlines, including state-owned Vietnam Airlines, budget airline Vietjet and new private airline Bamboo Airways, have previously expressed interest in operating direct flights to the U.S.

    Vietnam’s aviation industry has been growing rapidly in recent years. There were 12.5 million air passengers last year, up 14.4 percent from 2017.

    The number of flights in the country grew by 16 percent on average between 2010 and 2017, according to official data.

  • New Celine store design was made for Asia

    New Celine store design was made for Asia

    The new Celine store design unveiled in New York City is destined for China and Japan in the early stages of a global rollout. The white and grey dominated, minimalist design illustrated here in official photographs released by the luxury fashion brand, was conceived by the label’s creative director Hedi Slimane. The first store, which has opened at 650 Madison Avenue, takes up 5000sqft, making it Celine’s largest store yet anywhere in the world.

    According to company sources, the new look will be implemented next in Los Angeles, Paris and Milan before being launched in Shanghai, Beijing and Tokyo.

    Slimane uses natural materials as a contrast to stark white walls and polished railings.

    He used natural stones like basaltina on the floors and ginger and cream-streaked black granite on walls and some shelving together with a combination of marbles and grey travertine.

    Contrasting yet complementing the stone, reclaimed oak, polished stainless steel, brass, gold, and concrete are used and in the case of the Madison Avenue store, a large rock creates a focal point in the store.

    Celine says future stores will feature commissioned artworks relevant to the locations. Commissioned artists include Jose Davila, Oscar Tuazon, Elaine Cameron Weir and James Balmforth.

    The stores will also feature furniture designed by Slimane, such as wooden benches, tanned leather chairs and brass side table.

    The timeline for the rollout of the new Celine store design has not yet been released.

  • Hanoi, HCMC among 20 most expensive cities in Southeast Asia

    Hanoi, HCMC among 20 most expensive cities in Southeast Asia

    A new index puts Hanoi 13th and HCMC 15th on the list of 20 most expensive Southeast Asian cities. The new Cost of Living Index for the region has been compiled by Numbeo.com, the world’s largest database of user contributed data about cities and countries worldwide. According to Numbeo, a person spends on average $447.25 a month in Hanoi exclusive of rent. For a four-person family, this figure would be $1,601. Hanoi’s cost of living ranks 316th among 440 cities in the world.

    Meanwhile, in HCMC, the average monthly expense for a single person excluding rent is $434.94, and $1,562 for a family of four. HCMC ranks 320th out of 440 cities in the world, and is 61.50 percent less expensive than New York.

    This year, Singapore, Southeast Asia’s biggest business hub, remains the most expensive city in the region. The city-state is immediately followed by Bangkok of Thailand. Yangon in Myanmar is in third place, a surprise as the city did not even make the top 30 in mid-2018.

    Many Southeast Asian capitals are featured in the list, with Phnom Penh of Cambodia ranked fifth, Jakarta of Indonesia, 11th, and Manila of the Philippines, 14th.

    Numbeo says that its survey has taken into account several factors including house rents, cost of eating out, and purchasing power needed to live a comfortable life to come with a cost of living index for 20 major cities in Southeast Asia.

  • Looking at Omnichannel presence in India: IKEA

    Looking at Omnichannel presence in India: IKEA

    Swedish home furnishings major IKEA Thursday said it plans to have an Omnichannel presence in India going forward, reiterating its long-term commitment to the country. Last year, the company opened its first store in Hyderabad, spread over 13 acres of land and has a built up area of 4 lakh sq.ft. “We are long term committed to India. We are planning to have omni-channel presence here. We will have three formats — big stores, online and smaller stores here,” Peter Betzel, CEO, IKEA India said.

    According to a report, the presence in three formats is to bring the customers closer, he added. The Hyderabad store is the first of 25 such outlets planned to be set up in India by 2025.

    The company will be opening big stores in India, starting with a store in Mumbai this year, followed by one in Bengaluru in spring-2021 and then in Delhi-NCR, Betzel said.

    However, he did not provide any timeline for the opening of the store in Delhi.

    IKEA will have its online presence in Mumbai and will also expand smaller stores category there, he added.

    When asked how the company plans to fund the expansion, Betzel said: “It will be through our own money.”

    In 2013, IKEA received nod from the government to invest Rs 10,500 crore in single-brand retail out of which it had invested Rs 4,500 crore in its different ongoing projects in India.

    IKEA has been present in India for 30 years, sourcing many different products for IKEA stores worldwide.

  • Nestle India plans up to 3-dozen product launches in 2019, eyes higher exports

    Nestle India plans up to 3-dozen product launches in 2019, eyes higher exports

    FMCG major Nestle India has lined up nearly two-three dozen products that it plans to launch in calender year 2019 across categories in the country to drive its aggressive growth plans, Chairman and Managing Director Suresh Narayanan said.

    According to a report, the company, whose 6 percent revenues come from exports, is now looking to tap more overseas markets by targeting countries with higher Indian diaspora such as SAARC and South East Asia.

    “In 2018, our core brands have performed well…We look forward for greater acceleration as we go forward….We have two-three dozen projects (products) in pipeline for launch in 2019. These products are across categories,” Narayanan said.

    Reiterating the company’s focus on the Indian market, he said, “As an organisation the one clarion call that we are working to is that we are in the business of growth to thrive and not to survive…It is not a survival mode that we look at the opportunity in India or the opportunity for growth..but a thriving mode.”

    While the domestic market has been driving its growth, Narayanan said Nestle India would now look at expanding its export basket.

    The company is looking at tapping overseas market with higher Indian diaspora such as SAARC and South East Asia to expand its exports, he added.

    Commenting on fake news on nutrition, Narayanan said it was affecting choices and lives of people.

    Therefore, Nestle India in partnership with Google, using a chatbot mechanism, will launch a personalised information dissemination website called ‘Ask Nestle’, he added.

    “Ask Nestle seeks to be a reliable and anchor platform for nutrition and lifestyle information for customers. India is the only market where this website is being launched,” he was further said.

    When asked if the company will in future also link Ask Nestle with its own e-commerce website for selling its products, he said it is a possibility.

    “…Going forward it could morph into something bigger in terms of linking up with our own e-commerce intentions, if at all it happens. But today it is only for information sharing, dissemination and helping,” he said.

    When asked if there has been any impact on sales of Maggi noodles after Supreme Court revived government’s case in the National Consumer Disputes Redressal Commission (NCDRC) against Nestle India seeking damages of Rs 640 crore for alleged unfair trade practices, false labelling and misleading advertisements, Narayanan said “No”.

    When asked if the company is looking for manufacturing capacity expansion, he said: “…This is a question that is coming up with active consultation. That exercise is on but I can not share more at this stage”.

    Typically, our approach is to augment (capacity) at our existing factories, but it does not rule out a new manufacturing facility, Narayanan said.

    Nestle India, at present, has eight factories across the country.

    The company also did not rule out evaluating inorganic growth in the country and said it may consider it if any opportunity arises.

  • Palm oil prices to remain steady in 2019: MPOC

    Palm oil prices to remain steady in 2019: MPOC

    Malaysian palm oil prices are set to hold steady in 2019 at an average of RM2,303 a tonne, according to estimates by the Malaysian Palm Oil Council (MPOC), while global output of the tropical oil is expected to rise by 3 million tonnes. “Global palm oil production is projected to be 72 million tonnes, with Malaysia and Indonesia as leading producers,“ the MPOC said in an online conference presentation.

    Rising production could cap recent price gains for palm oil, which has been recovering after touching a 3-year low last November at RM1,940 a tonne.

    Benchmark palm oil was trading at RM2,281 a tonne. The tropical oil averaged RM2,308 last year, according to Refinitiv Eikon data.

    MPOC, Malaysia’s key marketing agency for palm oil, also estimated that Malaysian output would rise to 20.2 million tonnes in 2019 and pegged Indonesian production at 42.8 million tonnes.

    Malaysia produced 19.5 million tonnes of palm oil last year, while Indonesia’s 2018 output stood at 42 million tonnes, based on estimates by the Indonesia Palm Oil Association.

    Malaysian palm oil output is expected to rise as newly replanted areas start to mature, but the increase will be marginal due to ageing trees and a possible El Nino in 2019 that will curb production, the MPOC said in its presentation.

    “Indonesian production is forecast to reach a record high of 42.8 million tonnes in 2019 due to improving weather conditions as well as newly maturing areas,“ it added.

    Palm oil exports in 2019 are also expected to increase in 2019, in line with an expected rise in demand from key importer India due to its declining domestic oilseed production.

    “India is expected to increase its (vegetable oil) imports by 500,000 tonnes, reaching 15.15 million tonnes, out of which palm oil will account about 10 million tonnes,“ said the MPOC presentation.

    Industry regulator the Malaysian Palm Oil Board forecast Malaysia’s a slight rise in production to 20.3 million tonnes this year due to favourable weather conditions and an expansion in oil palm matured area, according to an online presentation.

    It estimated Malaysia’s 2019 exports at 17.2 million tonnes, up from 16.5 million tonnes last year, due to “expected stronger palm oil demand from major markets.”

  • AirAsia opening restaurant based on its in-flight menu

    AirAsia opening restaurant based on its in-flight menu

    Low-cost carrier AirAsia may launch restaurants serving its Santan “gourmet” in-flight menu on the ground. The proposal was revealed by AirAsia Group CEO Tony Fernandes while promoting his recent autobiography in an interview with US talk show host Larry King. “I think our food is fantastic,” said Fernandes in response to a question from the audience. “We believe in it so much we’re going to start a fast-food restaurant out of it.”

    But Fernandes gave no more details away about the plan, such as where the restaurants might be located or whether he favoured airport locations or city centres.

    News that AirAsia may launch restaurants on the ground may come as a surprise to travellers, but Fernandes has previously spun off new business concepts from the airline’s business model including a short-lived budget hotel chain where occupants paid extra for features such as air conditioning, towels and amenities, and a bus service connecting Kuala Lumpur Airport with downtown.

    AirAsia also made news recently for its new chatbot Ava (AirAsia Virtual Allstar) which, along with a new look for the firm’s website and mobile app, are designed to deliver a more seamless and user-friendly experience to customers.

    Fernandes has also indicated the airline will place increased focus on the Indonesian and Philippines markets in the near future.