Retail News CRM

Tag: asia

  • E-Land’s owners step down from management

    E-Land’s owners step down from management

    Owner family members of fashion conglomerate E-Land Group stepped down from management on Thursday, handing over the helm to younger executives internally promoted to leadership roles. The move comes in an effort to rejuvenate its governance structure to strengthen the role of the board of directors of each affiliate and enhance their autonomy when it comes to making business decisions.

    Founder Park Sung-su, 65, will step down from the day-to-day management of the group while remaining chairman. He will focus on nurturing next-generation leaders and developing new businesses instead of being directly involved in the management of subsidiaries.

    “In the past, our chairman made a lot of important decisions across the group, but since late 2016, we’ve been making preparations to give more autonomy to affiliates and develop their capacity to make business decisions on their own,” said an E-Land spokesman.

    Park’s younger sister Park Sung-kyung, 62, also stepped down from her position as vice chairwoman of the group. Having worked at E-Land for more than 12 years, Park has led the group when it comes to external affairs in the last few years. She also managed E-Land’s global operations, including in China.

    Stepping aside from management, Park Sung-kyung will chair the board of directors of the E-Land Welfare Foundation, which pursues charity activities inside the group.

    To fill the void, two vice chairmen were appointed. Former E-Land Retail CEO Choi Jong-rang has been promoted to vice chairman of the retail subsidiary, which operates NewCore department stores as well as popular shoe brand Shoopen. Kim Il-kyu has also been newly appointed as vice chairman of E-Land World, which manages the group’s key clothing brands.

    E-Land also promoted a handful of top executives in their 30s and 40s to head up their respective business divisions.

    Choi Wan-sik was promoted to CEO of E-Land World’s fashion division. Choi previously gained recognition for his performance as the director of Spao.

    At E-Land Park, which manages the group’s resorts and restaurant chains, 35-year-old Kim Wan-sik took over the reins as the subsidiary’s head of restaurants, which includes buffet franchises Ashley and Pizza Mall.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • Philippines stock jumps ahead of inflation data, Singapore slides

    Philippines stock jumps ahead of inflation data, Singapore slides

    Most Southeast Asian shares climbed on Thursday, with Philippine markets leading gains ahead of the release of inflation figures, while Singaporean stocks bucked the trend to fall sharply. Philippine stocks gained 1.04 percent, as industrial shares SM Investments Corp and JG Summit Holdings Inc propelled the index. A report shows that the country’s inflation is expected to cool to a six-month low in December, making it likely the Philippine central bank will leave policy rates unchanged this year.

    “The investors were mainly concerned about inflation during 2018,” said Rachelle Cruz an analyst at AP Securities in Manila.

    “So now we’re seeing some buying in the index stocks as there’s better expectation on earnings growth now, since that concern seems to be fading,” Cruz said.

    Local investors appeared to be buying more because some Philippine companies have reached “very attractive valuations,” she added.

    A surge in consumer goods stocks powered a 0.4 percent advance in Indonesian shares.

    Shares in Malaysia and Thailand also rose, by 0.56 percent and 0.71 percent respectively.

    In Kuala Lumpur tourist resort chain Genting Malaysia Berhad added 2.7 percent and palm oil producer Sime Darby Plantation Berhad rose 3.3 percent, while in Bangkok energy stocks provided the biggest boost to the benchmark.

    Meanwhile, Singaporean shares edged 0.81 percent lower, with Thai Beverage PCL dropping 3.3 percent and industrial conglomerate Jardine Strategic Holdings Ltd losing 1.4 percent.

    Vietnamese stocks also shed just above 0.8 percent, with most major sectors in the red. Real-estate stocks like Vinhomes JSC and Vingroup JSC, which powered a rally on Wednesday, fell around 2 percent apiece.

    Lees ook:

    Lees ook:

  • Seoul launches zero-fee digital payment system

    Seoul launches zero-fee digital payment system

    The city of Seoul has moved to ease the transaction-fee burden on small and medium-sized businesses (SMBs) by launching the “Zero Pay” zero-fee digital payment system. The system has been set up in partnership with banks and fintech firms in response to shop owners paying excessive proportions of their monthly sales into credit-card transaction fees.

    Twenty banks and digital payment firms – with the notable exclusion of KakaoPay, South Korea’s most popular mobile payment service – are participating in the zero-fee digital payment system, which is digital-wallet activated via QR codes through which money is transferred directly between bank accounts.

    Businesses with annual sales less than KRW800 million (US$708,820) will not be charged transaction fees, while those with higher takings will be charged fees well below the credit card industry standard of 2.2 per cent.

    “If consumers and citizens use Zero Pay whenever possible, it will be a great help for self-employed businessmen,” said Seoul city mayor Park Won-soon.

    Around 16,750 stores have signed on to the Zero Pay program so far.

    Lees ook:

  • Malaysian economy likely to bottom out in Q2, says AmBank Research

    Malaysian economy likely to bottom out in Q2, says AmBank Research

    AmBank Research, which anticipates further pressure on Malaysia’s economic growth in the first quarter of the year (Q1 2019), believes that gross domestic product (GDP) growth should register slight improvement in the second quarter and pick up thereafter. This is partly attributable to the low base effects as well as support coming from domestic activities and foreign direct investments, and complemented by exports as the electronics cycle slows down, added with softer commodity prices, it said in a note today.

    The research house said it foresees growth prospects remaining weak, anti-cipating Q4 2018 GDP growth to ease to around 4% to bring the full-year growth to 4.6%.

    “With our base case GDP outlook for 2019 at 4.5% with the upside at 4.8%, we foresee further weakening pressure on growth in Q1 2019,” it added.

    Malaysia’s third quarter GDP growth moderated to 4.4%, bringing about a nine-month expansion of 4.7%. Bank Negara Malaysia is due to announce Q4 GDP figures on Feb 14.

    AmBank Research highlighted that the strong foreign approved investments amounting to RM48.8 billion as of Q3 2018, which is an all-time high, is expected to support growth in 2019.

    The growth drivers are seen coming from petroleum refineries with RM17.2 billion investment being approved, followed by electrical and electronics (RM10.2 billion), basic metal products (RM5.7 billion), chemical and chemical products (RM4.6 billion) and rubber products (RM3.5 billion).

    Additionally, it said, agriculture, mining, and plantation and commodities saw a notable increase in approved investments with 54 projects as of Q3 2018, compared with 48 projects in 2017.

    Furthermore, investments in the services sector will continue to boost growth largely coming from local players with RM60.4 billion approved investments compared with RM96 billion in 2017, while foreign investments remained muted at RM9.5 billion as of Q3 2018 from RM28.5 billion in 2017.

    Commenting on the slump in the Nikkei Malaysia Manufacturing Pur-chasing Managers’ Index (PMI), AmResearch said it indicates downside risks with overall demand to be weak, thus causing companies to become less willing to hold stocks.

    The headline PMI fell to a six-month low of 46.8 in December 2018 from 48.2 in the previous month. The demarcation between expansion and contraction is 50.

    The data points to the sharpest deterioration in the health of the goods-producing sector since May. It also extended the current period of decline to two months. The drag largely came from severe reductions in production and new businesses.

    Lees ook:

  • Indian shop fit industry poised for sustainable growth in 2019

    Indian shop fit industry poised for sustainable growth in 2019

    The Indian retail sector is growing faster than ever before and is one of the fastest growing in the world. According to a Deloitte Report, the Indian retail industry is expected to grow to US $1.1 trillion by 2020, registering a CAGR of 8.79 percent between 2000 and 2020. This growth can be attributed to the growing young population of the country, rise in disposable income, change in lifestyle and most importantly, digitization and connectivity.

    Though brands are investing heavily in online retail, traditional retail continues to be their core focus and hence, demand for shop fit designers and manufacturers only continues to grow.

    Changing retail landscape and role of retail shop fitting

    2018 was a redefining period for Indian retail industry. From huge investments by international players to M&A, downsizing of physical stores from traditional players to investing in physical stores by ecommerce players, the retail industry witnessed significant changes.

    As the debate around relevance and profitability of brick-and-mortar stores continues, retailers continue to invest in physical stores and thrive to provide the best shopping experience for customers. The traditional, one-size-fits-all store formats are slowly decreasing and brands are now continuously working towards exploring creative concepts to rejuvenate the look and feel of the store to stay relevant and attract their respective consumer targets.

    Every brand has a different approach in designing retail outlets and so are their shop fit requirements. For example, a sportswear brand store will have a spacious interiors, relaxed furniture for seating, minimum product placement on shelves to create clutter free picking up of products and eye-catching digital display of celebrated sports personalities on the walls to influence customer’s shopping. Whereas, a clothing brand store for infants and children has shop fittings and fixtures of lower height making it easy for kids to select what they want and have popular animated characters all over the store. This is where the expertise of shop fitters come into the picture. Shop fitters play a very important role in building successful retail brands by planning, designing and manufacturing shop fit and fixtures that reflect a brand’s ethos. They closely work with the brands to execute their designs and ideas for Visual Merchandising.

    Growth opportunities for shop fit industry

    A study by JLL suggests that the country is expected to see the highest mall supply in the next three years (2018 – 2020) touching 19.4 million square feet. Due to the radical shifts in the consumption pattern of new-age consumers, brands see tremendous untapped potential in small towns and cities (Tier II and III) they will expand their footprints in these geographies and continue to invest in physical stores.

    Brands continue to focus on integrating online and off-line shopping and the concept of ‘Experiential shopping centers’ will gain importance. Physical stores will double as fulfillment centers to help process online orders. Like in other markets, the concept of BOPIS, i.e. “Buy Online, Pickup In-Store”, which gives customer the flexibility to shop (order) online and visit the nearest store to try the product and collect it may become popular among people. As customer shopping experience, engagement and purpose of the physical store becomes more crucial, brands will regularly invest in store design, interiors, shop fits and new concepts in order to differentiate themselves from competitors. A good fit-out raises a brand’s profile, efficacy and creates a positive perception about the brand. Hence, there is a growth opportunity for shop fitting industry.

    Adding to this, the trend of solo entrepreneurs entering the market and small scale traditional retailers who wish to revamp their business rely on professional shop fitters for retail store design, floor planning, shop fits, etc. which will also give a boost to the shop fit industry.

    Conclusion:

    As organized retail industry continues to grow in the country, it possesses a great opportunity for the shop fit industry. Decisions by brands to downsize the store formats may hurt the shop fit industry’s business and profitability, but there will definitely be significant growth as more brands are now looking to establish their offline presence and also increase their physical presence across markets. In addition to this, with the new rules regarding single brand retail ownership, many new foreign brands will look to enter the Indian market.

    Being an allied industry of the retail sector, the shop fit industry grows hand-in-hand with the retail industry. As brands continue to invest in visual merchandising and store design, they rely on experienced and quality focused shop-fit manufacturers to partner with them. The role of shop fitters cannot be understated in helping the retail brands build their identity, differentiate them from competitors and attract footfall in the store by their innovative designs and store concepts. Shop fitting is an important investment for retail brands and when done right can translate to improved business and performance. Overall, the outlook for the shop fit industry is positive.

    Lees ook:

  • Vietnam tops Southeast Asia in IPOs

    Vietnam tops Southeast Asia in IPOs

    Vietnam surpassed Singapore and Thailand to top Southeast Asia in initial public offerings (IPOs) last year, raising $2.6 billion. This figure was 3.7 times that of 2017, according to consultancy Ernst & Young. Two of three largest IPOs in Southeast Asia last year were launched by Vietnamese companies: $1.34 billion from Vinhomes, a real estate developer of Vietnam’s biggest private firm Vingroup; $923 million from Techcombank, the country’s largest private sector lender.

    However, an opposite trend was seen in Southeast Asia as a whole, with the money raised from IPOs dropping 34 percent over 2017 to $7.1 billion.

    The number of IPO deals in the region also decreased by 7 percent to 115, with 56 of them raising less than $10 million.

    Ernst & Young economist Max Loh said that the reason for this drop was U.S-China trade tensions, which affected the capital market in the region, as Southeast Asian countries have close trade relationships with China.

    Experts feel Vietnam has the potential to attract more foreign investments in the future. A report by law firm Baker McKenzie and consultancy Oxford Economics said that Vietnam will top the region in the amount of money raised via IPOs by 2021.

    The rise of Vietnam and other developing countries in Southeast Asia could intensify competition for new listings among the region’s exchanges, said Tham Tuck Seng, PwC Singapore’s capital markets leader.

    This will increase the pressure on Singapore to differentiate itself even more in order to stand out, CNBC quoted Tham as saying.

    Lees ook:

    Lees ook:

  • Korean gaming firm could go up for sale at $7 billion

    Korean gaming firm could go up for sale at $7 billion

    The founder of Korea’s top gaming company Nexon has put the company up for sale, according to a local media outlet, in what could be the biggest such deal in Korean history. According to a report, Kim Jung-ju, chairman of NXC, the de facto holding company of Nexon, will sell a 98.64 percent stake in NXC worth around 8 trillion won ($7.1 billion). NXC owns a 47.98 percent stake in Nexon, worth about 6 trillion won.

    The shares include Kim’s holdings, at 67.49 percent, and those held by his wife, at 29.43 percent, as well as 1.72 percent held by Wise Kids, a software company Kim owns.

    Deutsche Bank and Morgan Stanley have been selected to oversee the sale, according to the report.

    A spokesperson for NXC responded to the report, saying that the company is in the process of confirming the news.

    “We are checking whether the report is true,” the spokesperson said, “It takes some time because of [the rules concerning] electronic disclosure. The official announcement will be unable to come out today.”

    As for the rationale behind the decision to sell, some media reports citing anonymous sources at Nexon point to Kim’s reluctance to deal with the government’s hefty regulations on the gaming industry.

    NXC, however, said that the reports are groundless, adding that “Chairman Kim hasn’t complained about government regulations.”

    While it is immediately hard to verify Kim’s motivations, financial reasons are unlikely to be the cause. Nexon, which trades on the Tokyo Stock Exchange, has shown strong earnings performance. Sales rose 18.7 percent in 2017 on year to 234.9 billion yen ($2.2 billion). Entering 2018, the company maintained steady growth with the third quarter seeing a 15 percent jump in revenue compared to the same month last year.

    Local media reports suspect that the potential buyer could be China’s Tencent Holdings or U.S. video game publisher Electronic Arts, given the massive size of the sale. Tencent already stands as the sole local publishing partner in China for Dungeon Fighter Online, a multiplayer video game developed by Nexon subsidiary Neople. The Chinese internet giant holds a sizable stake in Korea’s major game and entertainment units, including Netmarble and Kakao.

    Another focus of the deal is how NXC will process the sale of non-gaming affiliates.

    Non-gaming holdings owned by both NXC and Nexon span a wide range of industries.

    A Nexon affiliate took over Stokke, a Norwegian company famous for baby strollers, in 2013. NXC acquired a 65 percent stake in Korean cryptocurrency exchange Korbit for 91.3 billion won more recently in 2017 and Bitstamp, a Europe-based cryptocurrency exchange, last year.

    The founder could either split them from the sale or bundle them together.

    Built in 1994, Nexon made its name known with The Kingdom of the Winds, a 2-D fantasy massively multiplayer online role-playing game (Mmorpg). The game was recognized as the longest-running commercial graphical Mmorpg by the “Guinness World Records” in 2011.

    Lees ook:

    Lees ook:

  • Omotesando Koffee Coffee Shop Opens in London

    Omotesando Koffee Coffee Shop Opens in London

    Popular Japanese coffee shop Omotesando Koffee has opened in the central London district of Fitzrovia on Rathbone Square. Serving coffee in a manner inspired by Japanese tea ceremony, the cafe features a cubic bar design where each customer is served by a single barista in ritualistic fashion. The approach has inspired a cult following in the brand’s home territory, and has been followed by a sister brand in Tokyo that offers gourmet bean selections in cloth bags.

    While Omotesando’s original location has closed due to poor building maintenance, it reopened in Hong Kong in 2016, followed by launches in Tokyo and Singapore. The London location aims to provide a unique coffee experience in an otherwise generally homogeneous market.

    Lees ook:

  • Outlook for local banking sector remains challenging: Kenanga Research

    Outlook for local banking sector remains challenging: Kenanga Research

    The banking sector’s outlook is challenging due to external concerns while clarity and direction on the domestic front remain murky, according to Kenanga Research, which maintained a neutral stance for the sector as no fundamental change is expected, and the sector lacks concrete catalysts. “We view the industry with caution as uncertainties and headwinds still prevail. The industry remains unexciting, dragged by moderate loan growth and soft capital markets. Prevailing negative sentiment both globally and domestically will continue to drive volatility and uncertainty in the industry. Caution will still prevail due to the soft economy outlook globally,“ the research house said in a note today.

    It said banks with healthy asset quality (hence low impairment allowances) will still be the favour due to their defensive quality.

    “As such, selective asset growth will still be the focus for the banks. Despite stable economic outlook in the domestic environment coupled with low unemployment, we opine that cautiousness and selective assets growth will still prevail in the industry,“ Kenanga Research explained.

    It said loan growth moving forward will still be moderate as uncertainties prevail with fee-based income expected to be soft as a result of the volatile capital market. However, with the stable outlook, this will support a moderate and stable credit charge for the industry.

    “We expect impairment allowances (credit costs) to be stable and consistent (as it had been generally in 2018) which will lend support to the banks’ bottom line. We do not discount another potential up-cycle of impairment allowances, especially those highly exposed to the energy sector (CIMB, Maybank and RHB Bank) as energy prices have been under pressure due to the perceived economic slowdown both domestically and globally.”

    Kenanga Research expects mild compression for net interest margin (NIM) as most of the banks’ loan-to-deposit ratio and loan-to-fund ratio are over 90% and 80%, respectively, as compression will be mitigated by soft credit demand. The deferment of NSFR (net stable funding ratio) into 2020 plus the absence of high credit demand will support the outlook for a stable to mild compression in NIM.

    “However, looking at the slowing momentum in household demand, we do not discount the likelihood of competitive lending rates in the short term as banks strive to achieve their loan growth target. This competition will ultimately lead to further downside pressure on NIM.”

    The research house has revised downwards the 2018/2019 earnings estimates by 80bps/30bps to +6.7%/+5.6% respectively.

    “For 2019, earnings are slower at +5.6% year-on-year (yoy) as we based from these assumptions of credit charge at 0.33%; and slight compression on NIM by 3bps and a higher pace from fee-based income (+6.6% yoy due to a lower base).”

    It also toned its outlook on loan growth for FY18 at +4.7% (from +4.9% previously) on account of revision of prevailing headwinds.

    Kenanga Research reiterated its outperform call for BIMB Holdings Bhd, as its financing portfolio (70% of total financing) is skewed towards household (75% first-time buyers for residential property) with focus on growing its personal financing will minimise NIM compression.

    Another preferred pick is Malaysia Building Society Bhd (MBSB), which is expected to achieve 3-4% growth driven by corporate loans/financing as another RM950 million is expected to be disbursed in Q4 18.

    Lees ook:

    Lees ook:

  • Cathay Pacific to honor premium Vietnam-US tickets sold by mistake

    Cathay Pacific to honor premium Vietnam-US tickets sold by mistake

    Cathay Pacific Airways mistakenly sold Vietnam-U.S. first class and business class tickets at economy prices, but will honor them. The Hong Kong flag carrier made this announcement in a Twitter post Wednesday after customers reported Tuesday that they were able to purchase first class and business class tickets at unusually cheap prices from Vietnam to North American destinations such as San Francisco and New York in the U.S. and Vancouver, Canada.

    Cathay, Asia’s largest international airline, offered return business and first seats from Vietnam’s central city of Da Nang to New York at the price of $650 and $845 respectively, while typically these tickets cost $16,000 and $31,000.

    Hanoi-based pastor Jacob Bloemberg was one of the lucky customers who were able to purchase the tickets, which only lasted “for minutes.”

    “My wife and I travel from Hanoi to the U.S. every year, but we are very excited this time as we enjoy business class seats at the price of an economy seat,” he said.

    The number of tickets sold during the computer error is believed to be several thousand. Cathay Pacific blamed the mistake on an individual entering the wrong fares into the company’s system. Although Cathay has not revealed the cost of this error, it is calculated that the airline should have collected at least $685,800 from 11 customers that it spoke to.

    However, Cathay said it hoped the move would make this year special for its customers.

    “Yes – we made a mistake, but we look forward to welcoming you on board with your ticket issued. Hope this will make your 2019 ‘special’ too!,” the airline said on its Twitter account.

    It added #promisemadepromisekept, and #lessonlearnt at the end of the post.

    Last summer, a similar situation happened with Hong Kong Airlines when business class tickets were sold for $587, much lower than the usual price of $3,800. The airline honored its mistakes and covered all bookings.

    Bloemberg said that Cathay’s move was “honorable.”

    “If there are similar errors in the future, I’d like to find out right away.”

    Lees ook:

  • Starbucks South Korea offers incentives using own cups

    Starbucks South Korea offers incentives using own cups

    Starbucks South Korea says the number of customers bringing their own cups to the store leapt 24 per cent in just one month. The boost is the result of its ‘Eco Bonus Star Program’ aimed at reducing waste and improving consumer awareness of sustainability issues. Through the Eco Bonus Star Program, customers of Starbucks South Korea can collect additional ‘stars’ – or bonus points – by bringing their own cups to cafes. The stars can be used for discounts and other benefits.

    Customers can choose to receive an immediate discount of 300 won (US27 cents) if they don’t want to collect stars.

    Starbucks said that, compared to 970,000 customers who brought their own cups in October, more than 1.21 million customers brought their own cups in December, the first full month of the program.

    Two-thirds of customers chose to save up stars, rather than receive the discount.

    “More than 1.81 million additional stars were given to customers just 50 days after the Eco Bonus Star program was implemented,” said Starbucks.

    “Gold members for My Starbucks can get a free drink for 12 stars, which also likely encouraged more customers to bring their own cups.”

    More than 8 million customers have brought their own cups this year, twice as many as last year.

    Lees ook:

    Lees ook:

  • Malaysia’s November export growth expected to slow to 3%

    Malaysia’s November export growth expected to slow to 3%

    RAM Ratings expects Malaysia’s export growth to decelerate to 3% in November 2018, as front-loading activities that had temporarily propped up exports by 17.7% in October subside. The rush to front-load orders in October was driven by greater concerns over the planned increase in US tariffs – from 10% to 25% – on US$200 billion (RM827 billion) of Chinese imports, the ratings agency said in a note today.

    RAM is of the view that the export stimuli will remain limited over the next few months – a scenario further supported by a contraction in China’s manufacturing export orders in the last several months.

    In line with the weaker external demand, RAM expects that import growth would ease to 1.8% in November.

    Overall, the trade surplus is projected to come in at RM11.1 billion in November.

    To date, Malaysia has yet to ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) that came into force on Dec 30 with seven members.

    That said, RAM’s head of research Kristina Fong opined that Malaysia’s absence is unlikely to have significant implications for its trade performance in the near term, given that it already has free trade agreements (FTA) with five of the seven signatories.

    “The two remaining countries, Canada and Mexico, constitute a small share of overall exports at just 0.4% and 1%, respectively, thus limiting potential adverse trade diversion away from Malaysia,” she explained.

    Furthermore, she said this trade diversion risk is also mitigated by the fact that the tariff reductions on major goods imported from Malaysia that also overlap with key imports from other CPTPP members, is mostly less than one percentage point.

    While the direct impact of Malaysia’s absence from the deal could be muted in the short run, RAM said it could potentially cause the country to lose out over the long term as regional members in the multilateral FTA could be favoured as foreign direct investment destinations.

    “Standardised rules of origin and lower regulatory barriers brought about by the CPTPP could entice firms to more readily build up supply chains between member countries. This dynamic could in turn foster the development of new industries and global value chains and build new capacities within this alliance,” it added.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • Kakao T signs MOU with premium taxi service

    Kakao T signs MOU with premium taxi service

    Kakao Mobility is partnering with premium taxi provider Tago Solutions to improve customer service quality and drivers’ income levels. The move comes as tensions continue to boil over with much of the taxi industry fiercely protesting the company’s carpooling business. On Thursday, Kakao’s mobility subsidiary announced that it signed an MOU with Tago Solutions, a company co-established by some 50 taxi companies and 5,000 taxi drivers last September with the goal of offering distinguished and premium taxi services like pet-friendly options.

    Tago hit headlines last month for requesting the Seoul Metropolitan Government’s approval to offer Korea’s first women-only taxi services. The service, dubbed Waygo Lady, will only allow female drivers and customers.

    Kakao is expected to give customers the option to choose Tago’s services via the Kakao T taxi-hailing app.

    “We hope to create an environment where drivers are friendly and do not refuse customers,” Kakao added in a statement. One of Tago’s stated missions is to accept all customers regardless of destination. Though refusing customers is illegal in Korea, some drivers still do it if the requested destination is unprofitable.

    Kakao is also hoping to improve drivers’ working environment with Tago. The premium services, which are expected to come at a premium price, will improve drivers’ income levels while the services for women will provide new opportunities for female taxi drivers – a minority in Korea.

    The move comes as many other taxi drivers and unions are boycotting Kakao for its plan to launch a carpooling service that potentially threatens the taxi industry. A Kakao spokesman said the company and Tago are on good terms and have been working on the partnership for months.

    Ahead of launching the premium services, Kakao said it will focus on developing technology that will allow for the seamless matching of users to taxis, while Tago will focus on training and educating drivers to provide high quality services.

     

    Lees ook:

  • Vietnamese Airbnb startup raises $3 mln from venture capitalists

    Vietnamese Airbnb startup raises $3 mln from venture capitalists

    Vietnamese homestay platform Luxstay has raised $3 million from CyberAgent Ventures and other foreign investors in its bridge round. Representatives of Luxstay, the Vietnamese homestay booking start-up, said the total capital raised could rise to $5 million as negotiations are still ongoing with interested investment funds. CyberAgent Ventures (CAV), a Japan based investment firm specializing in incubation and investment in early-stage companies, played a leading role in directing the structure and execution of this funding round, the third for the firm after the seed and pre- Series A rounds.

    This is also the second time the firm has injected capital in Luxstay, after its initial investment in the company’s pre-Series A round in early 2018.

    Dzung Nguyen, CyberAgent managing director for Vietnam and Thailand, believes that the “sharing economy” is a development trend in many business areas, and it will impact both tourism and real estate markets.

    “We believe the Luxstay model capitalises on this trend, and will create a major impact on the market in the coming time,” he said.

    According to Luxstay, there may be millions of townhouses, condominiums and holiday villas that are willing to participate in the short-term accommodation market.

    Therefore, the company has targeted having several hundred thousand properties participating in its home-sharing platform over the next 5 years.

    The founder of the application, Nguyen Van Dung, said that with the current development speed and market potential, Luxstay will focus on accumulating resources to speed up technological development towards building an effective ecosystem to lead this new industry.

    The startup plans to find new investors for its next Series A round in mid-2019 with a potential scale of $10 million.

    Launched in 2016, Luxstay now has a network of nearly 10,000 properties across the country. This is a short-term rental booking platform for apartments, villas and other homestay accommodations positioned in the mid and high-end segments of Vietnam’s real estate market.

    A pioneer in building a platform allowing Vietnamese homeowners to participate in the rental market, the company has created new accommodation facilities for increasing numbers of youth and professionals who travel for work or leisure.

    Luxstay had also received much attention from foreign funds in its previous venture rounds. According to Crunchbase, an online database on investment activity, Luxstay raised $500,000 in its seed round in June 2017 from Vietnam-based ESP Capital and Japanese Genesia Ventures.

    Another $2.5 million was raised in May 2018 in its pre-Series A round from CyberAgent Ventures (Japan), Genesia Ventures (Japan), ESP Capital (Vietnam) and Nextrans (South Korea).

    In September 2018, the startup became a Vietnamese strategic partner of Rakuten Travel, the tourism branch of Japanese e-commerce giant Rakuten. Y1 Venture and other firms were also involved in the bridge round.

  • Retailers to lose US$130 billion from card-not-present fraud: Juniper

    Retailers to lose US$130 billion from card-not-present fraud: Juniper

    Increasingly complex card-not-present fraud will cost retailers US$130 billion globally in digital sales over the next five years. A Juniper Research study predicts that retailers’ slow pace in keeping up with new fraud prevention requirements will allow cybercriminal practices to become more widespread as more and more consumers shop online. It observes that established point-of-sale vendors will need to move towards mobile POS technology in order to expand their reach into fresh markets and reduce their exposure to card-not-present fraud.

    “A layered fraud detection and prevention (FDP) solution naturally helps directly preventing fraud, but it also offers major gains in terms of recovering potentially lost revenue through false positives,” said the report’s author Steffen Sorrell. “This is something about which retailers remain undereducated, and has allowed fraudsters to capitalise on relatively low FDP spend”.

    An implication of the Juniper research is that a low understanding of FDP investment return is causing the low uptake of the technology. the report anticipates digital payment players will be spending $9.6 billion annually on FDP solutions by 2023.

    Lees ook: