Tag: asia

  • WeWork to hold big pitch contest

    WeWork to hold big pitch contest

    WeWork in Korea will hold the Creator Awards, a regional pitch competition, in partnership with the Seoul city government next February. It is the first time the global office-sharing company is hosting the competition with a city government. Seoul is expected to help in the event’s promotion.

    On Wednesday, WeWork announced the date and location for the Seoul Creator Awards, saying it will be held Feb. 28 at Dongdaemun Design Plaza, eastern Seoul.

    The award categories are performing arts, non-profit and business venture. Both WeWork and non-WeWork members can apply to participate in the competition, with a Jan. 10 deadline for submissions.

    In the performing arts and nonprofit categories, winners will be awarded up to $72,000. The entrepreneur award will top out at $360,000.

    ”We are all looking forward to be blown away by the innovative ideas and projects of enthusiastic creators at the Seoul Creator Awards that will make a real difference in the world,” said Matthew Shampine, general manager of WeWork in Korea.

    WeWork opened seven new locations in Korea this year and now has 11 buildings in the country. As of this month, it is an office provider to 1,500 companies in Korea. WeWork’s local team is growing rapidly, rising from 30 employees at the beginning of the year to around 160 today.

    “In 2019, we will continue to open new locations, such as WeWork Seomyeon [in Busan] and WeWork Hongdae, accelerating our expansion into new areas across Korea,” Shampine added.

  • Value fashion retailer in India launches 200th store

    Value fashion retailer in India launches 200th store

    V-Mart, the world’s best performing department store chain in 2018 as per data compiled by Bloomberg, launched its 200th store in Mughalsarai, Uttar Pradesh. With this landmark achievement, the company has opened a total of 29 new stores in the current fiscal year so far.

    Earlier this month, the company launched its 198 th and 199 th store, both also in UP, at Kannauj and Naubasta near Kanpur, respectively.

    Marking the significance of this milestone for the company, Lalit Agarwal, CMD of V-Mart said, “We remain focused on strong execution, riding on the back of our proven cluster-based expansion model. The 200th store is a key milestone for V-Mart, more so, because we have added the last 100 stores in
    three years, while we took twelve years for the first 100. This demonstrates accelerated customer demand and V-Mart’s ability to translate that into all-round value creation.”

    With the 200th store launch coming just ahead of Christmas and New Year, V-Mart has planned a grand celebration campaign at select locations, starting with Kannauj and Mughalsarai, to bolster the festive spirit among its customers. At both the locations, the company is organizing a ‘Mela’ in large open fairgrounds, inviting the general public to enjoy an eclectic mix of food, fun and entertainment.

    The event in Kannauj, organized with complete support from the local administration, received tens of thousands of attendees enjoying music, folk performances, choreographed shows, fun rides, and delectable street food.

    Snehal Shah, SVP, Projects and Marketing, said, “V-Mart has always endeavored to createlasting value and moments of happiness for its customers. These celebrations are a small way of saying thanks to our customers who have made this milestone possible.”

  • Samsung to take eight C-Lab start-ups to CES

    Samsung to take eight C-Lab start-ups to CES

    Samsung Electronics will introduce eight in-house artificial intelligence (AI) start-ups at the Consumer Electronics Show (CES) 2019 to take place next month in Los Angeles, the company said Wednesday. All eight start-ups are under Samsung’s C-Lab, an in-house incubating program that allows employees to embark on a one-year project to realize a business idea. Samsung will organize an independent booth to present their products and services at the four-day exhibition scheduled to take off on Jan. 9.

    All eight of the projects use AI as a core part of their business.

    For example, the mobile app SnailSound uses AI technology to remove background noise and provide clear human voices in a tailored way based on the app’s test results of the user’s hearing abilities.

    Another app called Medeo uses AI to select the best shots in a video while it is being shot.

    Prismit is an AI-based news app that shows news articles of the same topic automatically aligned in the form of a timeline.

    The list also includes Girin Monitor Stand, which helps to correct posture while sitting in front of computer screens, and the Alight desk light, which adjusts light in the best way to enhance one’s concentration.

    The Perfume Blender suggests the best perfume recipe based on a user’s preferences and also comes with a device to make the personalized perfume.

    As well as the eight in-house start-ups that are currently working under Samsung’s C-Lab, eight groups that have already graduated from the scheme will take part in CES 2019 to set up booths of their own.

    Among them, three have earned awards from this year’s CES. Since the program’s launch in 2012, C-Lab has produced 36 spin-offs that now conduct business as start-ups outside of Samsung.

  • Ramyeon Korea set to cross the $400 million export mark

    Ramyeon Korea set to cross the $400 million export mark

    Exports of ramyeon are sure to exceed $400 million this year, a state food agency reported Wednesday. Shipments of ramyeon totaled $385 million as of the end of November, up 11.2 percent from the same period last year, according to Korea Agro-Fisheries & Food Trade.

    The figure is already more than the total for 2018. Given the sum so far, the monthly average exports are $35 million, suggesting that exports will $400 million by end of this year. South Korea broke the previous threshold of $300 million just last year.

    Ramyeon remains popular in the United States and in Southeast Asia, while China’s boycott of Korean products due diplomatic disagreements has weakened, according to the agency.

    Related data showed Korea exported $8.56 billion worth of agricultural and fisheries products in the first 11 months of the year, a gain of 2.6 percent from last year.

    By country, exports to Japan were the highest, at $1.94 billion, followed by $1.38 billion to China, $980 million to the United States and $530 million to Vietnam.

    The figures indicate a 0.3 percent fall for Japan but increases of 1.2 percent for China, 0.2 percent for the United States and 1 percent for Vietnam.

    Exports of farm and livestock products rose 2.4 percent to $6.37 billion, and those of fisheries goods were up 3.1 percent to $2.2 billion.

  • Chinese QR payments booming

    Chinese QR payments booming

    Nuwemaru Street in Yeon-dong, Jeju City, was known as Baojian street until it was renamed in April. The street had been called Baojian from 2011 when the Chinese pharmaceutical company of the same name sent 12,000 employees to the southern tourist island as a reward.

    Despite the sharp drop of visitors since 2017 – when tensions between the two countries peaked with the deployment of a U.S. missile defense system – it still looks very much like Chinese territory today, with many store signs in Chinese.

    Upon closer examination of the shopfronts, Chinese QR codes are also evident.

    The QR codes for Chinese mobile payment services have gained popularity on the Korean tourist island over the last couple of years. Even a restaurant selling seollongtang – Korean beef-broth soup – in the middle of the street has a QR code for Chinese mobile payments.

    “Half the Chinese visitors use Alipay or WeChat pay,” said a store clerk of one of the cosmetic stores on the street.

    Currently 1,000 stores on Jeju accept Chinese QR mobile payments. The Jeju government said it was promoting the use of Chinese mobile payments in hopes of attracting more Chinese tourists.

    On Dec. 10, it signed a memorandum of understanding with the China’s Tencent, which operates WeChat, to attract more Chinese visitors to the island.

    One part of the agreement calls for tourism promotions on the WeChat platform, including discount events, while a blog will be run to introduce the island to potential visitors from China.

    The Jeju government and the tech company also agreed to share information on the consumption patterns of Chinese tourists who made payments through WeChat pay.

    Seven top officials from Tencent attended the signing ceremony, including company vice president Zhang Ying. During the ceremony, Zhang said that the only thing he carried with him when coming to Korea was his smartphone, demonstrating that he didn’t need cash or a credit card as long as he had WeChat Pay.

    “Once WeChat Pay is available at traditional markets in Jeju, it will be a great help in promoting traditional Korean culture and goods to Chinese tourists,” said Yoon Chang-ho, head of tourism and marketing at the Jeju government.

    According to convenience store CU, in the first half of 2018 87.2 percent of Chinese tourists used mobile payments when making electronic purchases at CU outlets in Korea. Only 12.8 percent used credit cards. In 2016, 65 percent used credit cards.

    Many institutions are accepting Chinese QR code mobile payments.

    Starting in September, Hanyang University will accept tuition fees via WeChat Pay. The program is being developed with Shinhan Bank. Roughly 900 or so convenience stores and restaurants at train stations in Korea have started accepting WeChat payments.

    One of the reasons Korean businesses are willing to accept mobile phone payment systems is because people tend to spend more when using them. When they buy something by simply waving their phone, they feel as though they are spending less.

    To make a payment, a customer places the store’s QR code – similar to a bar code – in front of their phone camera for 10 to 20 seconds.

    Chinese QR code mobile payment systems are not only used in Asian countries, such as Korea, Vietnam and Thailand. They are also being used in other places visited by Chinese tourists, such as the United States and Europe. These payment systems are even accepted at Amsterdam Airport Schiphol in the Netherlands.

    Roughly 78 percent of Chinese are said to use these payment systems, while only 21 percent use either credit cards or cash.

    While visiting a small restaurant in China late last year, President Moon Jae-in was surprised at the convenience of QR-code payments.

    One reason the QR-code payment system has rapidly grown in China is the country’s lack of a telecommunication infrastructure needed for credit-card processing. The QR code system doesn’t require a credit card terminal, which makes it cost effective and convenient.

    Although WeChat Pay joined the game late compared to Alibaba, it currently has 40 percent of the Chinese mobile-payment market, while Alipay has 54 percent. WeChat may overtake Alipay because of the popularity of its mobile messenger.

    Not all commercial districts in Korea accept the Chinese mobile payment systems. One such place is Myeong-dong, which attracts huge numbers of Chinese tourists. The street vendors in Myeong-dong only accept cash.

    Some critics question the growth of the Chinese payment systems. One concern is that since the networks are Chinese, it may be hard to track down the payment records, and that could lead to tax evasion.

    A person who has been installing Chinese mobile payment systems for years said this is not true as the payments made in Korean stores are deposited in local accounts, and the Korean stores have to report the payments to the Korean financial authorities.

    Loopholes do exist. If a Chinese company decides to open a branch and use a payment terminal from China, it would bypass the local institutions, making it difficult for Korean authorities to keep track of the payments.

    Because of such problems, the Vietnamese government in June banned the use of Alipay and WeChat Pay. It found that some money spent domestically by tourists did not go through local financial institutions.

    In 2016, the tax evasion question became an issue in Thailand as well. The Thai government at the time found that Chinese businesses were evading taxes through mobile payment systems. Several travel agencies were penalized.

    Some cases have been reported in Korea. In 2016, a plastic surgeon in Nonhyeon-dong, Gangnam, only accepted cash or credit cards from his Chinese patients, and the credit cards were processed using a Chinese terminal. More than 70 percent of the revenue was from Chinese patients. The hospital was found to have evaded more than 10 billion won ($8.9 million) in taxes.

    Overseas customers also present a problem. According to Korea Custom Service, more foreigners are buying goods directly from Korean online shopping malls. In 2013, 67,000 purchases were made in this way, but that figure has surged to more than 7 million.

    Chinese customers were the top purchasers and were especially big on Korean cosmetics. Last year about 2 trillion won worth of Korean cosmetics were purchased directly online by foreign buyers. That’s 10 times the 203.5 billion won worth of cosmetics purchased directly online in 2014.

    With the growing popularity of direct purchases, many online shopping malls have started accepting mobile payment systems. Since 2015, Alipay has been supporting Korean SME exporters in terms of payments and logistics.

    This could result in Korean exporters evading taxes.

    “There is major tax evasion going on with the significant increase of foreigners buying Korean goods directly online thanks to the Korean Wave,” said Lee Hye-hoon, then ruling Saenuri Party lawmaker, during the National Assembly’s audit on the Korean National Tax Service in October 2016. “We need to take action.”

  • Vietnam’s four major transport projects on track for completion next year

    Vietnam’s four major transport projects on track for completion next year

    Vietnam is set to complete four infrastructure projects next year, some of them after long delays lasting several years.

    Hanoi’s first metro line 

    The 13-kilometer Cat Linh – Ha Dong metro line is expected to open commercial operations before the Tet Lunar New Year holiday starting February 2, 2019.

    All 13 trains on the route are being trial run every day now, running from Cat Linh Station in downtown Dong Da District to the Yen Nghia Station in the south-west Ha Dong District.The 13-kilometer Cat Linh – Ha Dong metro line is expected to open commercial operations before the Tet Lunar New Year holiday starting February 2, 2019.

    Each train has four coaches, with a total capacity of 1,000 passengers. The stainless steel coaches are approximately 19 meters long. The trains now run at 30-35 kilometers an hour, even though they are designed to reach speeds of 65 kilometers an hour. A complete trip takes about 30 minutes.

    Work on the project is 96 percent complete, officials say, adding that the terminals and depots are “83 percent equipped.”

    Construction of the Cat Linh-Ha Dong elevated railway started in October 2011 and was originally scheduled for completion in 2013. But several hurdles, including loan disbursement issues with China that were only resolved last December, have been stalling the project for years.

    The original cost estimate of $552.86 million has also ballooned to more than $868 million, including $670 million in loans from China.

    Bac Giang – Lang Son expressway

    The expressway connecting Bac Giang Province north-east of Hanoi to the northern Lang Son Province bordering China is expected to be completed next December.

    The four-lane expressway runs 64 kilometers. A 110-kilometer stretch of the existing National Route 1A connecting the two provinces will also be upgraded to be part of the expressway.

    The total project cost has been estimated at VND12.19 trillion ($523.67 million).

    Most of the expressway has been completed. Next year, operators will finish laying asphalt and installing road signs and lights.

    Work on the expressway started in October 2015 and was scheduled for completion last year. However, the  Ministry of Transport had to select a new investor for the project after the original one was found wanting.

    The Bac Giang – Lang Son expressway is part of the Hanoi – Lang Son expressway, connecting the capital with the Huu Nghi International Border Gate in Lang Son Province.

    Cu Mong Tunnels 

    The Cu Mong Pass, lies mostly in Binh Dinh and partly in Phu Yen, is one of the most dangerous passes in Vietnam. The new tunnels are expected to reduce the number of dangerous traffic accidents that the pass has become infamous for. They would also reduce travel time between the two provinces.The Cu Mong tunnels, connecting the southern provinces of Binh Dinh and Phu Yen, are expected to open on January 21, allowing all vehicles to go through free of charge during the February 2-10 Tet holiday.

    The two tunnels are 2.6 kilometers long and 30 meters apart and have a 4-kilometer lead-in road. The tunnels allow a maximum speed of 80 kilometers an hour. For an unspecified first period, only one tunnel will be operated. For now, the second one will be reserved for use in emergencies.

    The tunnels have a total capital of almost VND4 trillion ($171.82 million). Construction started in September 2015.

    Vam Cong Bridge in the Mekong Delta Region

    This is the second bridge over the Hau River after the Can Tho Bridge, which is 48 kilometers away. It is part of the route connecting Can Tho with An Giang Province, built to boost the socio-economic development of the Mekong Delta region.The bridge, which connects the southern province of Dong Thap with Can Tho City, is expected to be operational by next July.

    The bridge was supposed to be completed by November 2017, but authorities found out that a horizonal beam had a crack four centimeters wide and two meters long.

    The Ministry of Transport ordered repairs, and so far 26 out of 38 steps for this process has been completed.

    The bridge’s budget of $270 million was sourced through official development assistance from South Korea and Vietnam’s counterpart funds.

  • Malaysia reviewing palm oil export duties

    Malaysia reviewing palm oil export duties

    Malaysia, the world’s second-largest palm oil producer, is reviewing the duty structure for its exports of the edible oil, according to its minister in charge of agriculture produced for export, to boost demand and reduce burgeoning stockpiles.

    “We are currently reviewing our present export duty structure to ensure a level playing field in the market,” said Primary Industries Minister Teresa Kok in an emailed response today to questions submitted earlier by Reuters.

    Palm oil producers in Southeast Asia have been grappling with slow exports as demand has waned on weaker currencies and higher import taxes. The demand slump has caused inventories in Malaysia to build to their highest in nearly 18 years while stockpiles in Indonesia, the world’s biggest palm producer, have also climbed.

    Palm oil prices fell to their lowest in three years earlier this month amid the demand slump, and were down 0.9% at RM2,108 a tonne today morning.

    Despite Malaysia cutting its export tax on crude palm oil to zero since September, industry participants say Indonesian palm is still more competitive as the country’s producers have sharply discounted their prices, causing Malaysia to actually increase imports from Indonesia. Production costs in Indonesia are also typically less than in Malaysia.

    Earlier this month, Indonesia also eased its rules on palm oil levies and derivative products to boost its exports.

    To counter the Indonesian import, Kok said the government is “currently encouraging our companies to use domestically produced palm oil to reduce the stockpile.”

    “By reducing imports, we could see a significant reduction in palm oil stocks in Malaysia and this would boost prices.”

    Prices next year are expected to be supported by demand from traditional markets as they replenish stocks, said Kok, adding that the implementation of a higher biodiesel mandate in 2019 will also help palm prices.

    Malaysia will raise the minimum bio-content in biodiesel to 10% for the transport sector and 7% for the industrial sector.

    Kok also said she expected production “in the region of 20 million tonnes” in 2019. The government last month forecast output of 20.5 million tonnes for 2019 and 19.8 million tonnes for this year.

  • Korea’s car take top safety awards

    Korea’s car take top safety awards

    Vehicles from Hyundai Motor and Kia Motors were awarded three top safety prizes in the Ministry of Land, Infrastructure and Transport’s 2018 Korean New Car Assessment Program (Kncap) on Wednesday in a ceremony held at the InterContinental Seoul Coex in southern Seoul.

    Hyundai Motor’s hydrogen-powered sport-utility vehicle (SUV) Nexo, mid-sized sedan Genesis G70 and Kia Motors’ large-sized sedan, the K9, were awarded top Kncap prizes in their size segments.

    Vehicles were tested in three key areas – collision, pedestrian and accident prevention safety. The program assessed 11 vehicles this year, including four imported models.

    Hyundai’s eco-friendly vehicle, the Nexo, received perfect scores in front and side collision safety, pedestrian leg protection and advanced driver assistance system to not only win the top safety prize in its segment but also to win two other special awards: the top safety eco-friendly vehicle award and the top children’s safety award.

    Hyundai Motor said that the automaker conducted a variety of tests on the hydrogen-powered Nexo to ensure the safety of its high-pressure hydrogen tank such as shooting it with a bullet along with other fire-safety tests.

    Kia Motors’ flagship large-sized sedan, the K9, also scored top marks to receive a special award in top accident prevention on top of its top award for segment size.

    Meanwhile, the Genesis G70, awarded the top prize in the mid-sized sedan segment, ensures pedestrian safety with an active hood system that automatically lifts the hood of the vehicle if it collides with a pedestrian.

  • Tracking the dynamics of India’s gym wear market

    Tracking the dynamics of India’s gym wear market

    Whether or not one shows dedication in maintaining their gym routine is debatable, but it is an undeniable fact that gyms are doing well when it comes to their membership registers being filled. India’s waking up to being healthy and this means tons of gym memberships. This also means that when one takes a gym membership, the very next thing they do is head off to stores that deal in gym wear. Or they just log on and buy gym clothes and accessories. The demand for gym and active wear is growing in India because of a desire to stay fit and healthy. IMAGES Business of Fashion takes a look at the market dynamics…

    Setting the context for the story, Pallavi Burman, Head – Marketing, HRX shares, “The Indian active wear industry is currently estimated at a whopping Rs. 8500 crore. It is expected to continue growing at CAGR 12 percent and touch expected sales of approximately 6X at Rs. 54,000 crores by 2020.”

    Burman attributes the reason for this to growing health and wellness trend in India along with an increase in the number of sporting clubs, increased interest in sporting activities like football, basketball, tennis, badminton and cricket, the Indian active wear industry is fast proliferating. She says, “More disposable income and general inclination towards fitness is rising and resulting in the growth of this industry.”

    Another major reason for an increase in demand for gym wear is having Bollywood celebrities being spotted in gym gear, especially the likes of Hrithik Roshan, Malaika Arora and Kareen Kapoor Khan. It isn’t uncommon to see Page 3 pictures of these celebrities in their gym wear. The glamour magazines often have pictures and articles of how celebrities are taking gym wear to the streets and this eventually does give a fillip to the demand for workout clothes in the country.

    Market Overview

    Perhaps the above well explains the emergence of active wear in the country. Where dedicated gym wear is opted for only by a handful few, those opting for working it out in the gym clubbing their active wear or sportswear as gym wear. No wonder then that brands in India too offer gym clothes under the category of ‘active wear’.

    Pallavi Burman decodes the difference between the often clubbed together categories of active wear, athleisure wear, sports / performance wear. “By definition, athleisure and active wear clothing are those which can be worn from studio to street. Sportswear or performance wear, however, is clothing which help athletes or sports persons enhance their performance specially items like shoes, technologies like compression, socks in some sports etc.”

    Nivida Kohli, Design Manager, Numero Uno shares her views, saying, “As of today each distinct category is reinventing itself. This is a phase where the consumer market is changing since there is a generic shift towards more flexible lifestyles. Once this change settles in, I believe there will be clearer newer distinct definitions for sportswear and athleisure.”

    However, a lot many online players have an exclusive category for gym wear and some have gone a step further to have their portals dedicated to offering nothing else but gym clothing.

    The emphasis is more on offering men’s gym wear than having something specialized for women and unfortunately in India, gym wear still consists of mostly leggings and sports brassieres, although bigger brands have started innovating for women as well now.

    Taking note of this gap, brand Mojostar in association with Bollywood actor Jacqueline Fernandes, recently launched their exclusive portal www.justf.in that is dedicated to women’s active / gym wear.

    Just F was launched after Jaqueline and CEO Mojostar, Abhishek Verma, realized the gap in the market for women’s gym / active wear.

    “Sportswear needn’t be super masculine, so we are introducing fusion elements, florals, and may even add lace to some designs,” says Jacqueline Fernandes in a media interview. She has actively participated in the designing of the brand and has ensured that little things are not given a miss like pockets in fitness wear, the positioning of the straps and hooks and the materials used for leggings.

    According to Abhishek Verma, the focus for the brand for now would be functionality and support. The brand is also going quite aggressive with their collection of sports bras.

    The research by the brand indicated that most of the international brands that are present in this category design their range keeping in mind the target audience of western countries, which don’t fit the average Indian woman. Another reason for launching Just F was to give Indian women appropriate exercise clothing at reasonable costs, especially since most international brands come with a hefty price tag.

    Growing Demand

    Pallavi Burman says that with Indians becoming more health conscious and image sensitive, their pursuit for fitness has increased. “The average age bracket for Indian fitness enthusiasts is 20-35 years, which makes for the majority population of young Indian students and professionals. This target set loves to experiment with their wardrobe. Office wardrobe has drastically changed – we don’t see dress pants and brogues and oxfords anymore. Jeans and trainers have smoothly replaced these items. Everything in today’s clothing spells comfort and chic,” she says as way of explanation of why there a fillip in the performance wear category in Indian retail has been noticed.

    She explicates that to be able to tap into this big chunk of the Indian population with available disposable income and the affinity for fitness, brands and minimalistic wardrobe brands have to focus hugely on active wear and the athleisure segment.

    Gym Wear Essentials in India

    According to Pallavi Burman, a pair of leggings and shorts for women and men respectively –usually a loose tee and a pair of decent walking shoes – constitute for basic gym wear in India.
    “But this isn’t enough if the exercise routine includes more than walking. While almost 50 percent of Indians still prefer traditional ways of staying active like walking and running, the other 50 percent are inclined to swimming, cycling and other sports and training means. For targeting this kind of segmentation one needs to delve deeper into sub categories.”

    What makes gym wear more intricate for women is the inclusion of a high-performance sports bra. Without a well-designed sports bra, the gym wear ensemble for women remains incomplete. Quite a few Indian brands that have taken note of this and the range available online as well as offline is exhaustive. It is interesting to see brands like Triumph launching exclusive brassieres for gym wear considering they are a premium lingerie wear brand. The option they have is bounce control certified by world renowned Research Group in Breast Health, the University of Portsmouth. Elaborating on the same, Jennifer Kapasi, Commercial Director, India & Sri Lanka, Triumph International shares, “Triaction by Triumph is a stylish, high-performance sportswear collection that gives modern women the freedom to train how and when they like. Boasting the best bounce control levels on the market, three versatile fits and superior comfort, Triaction supports women throughout the day—on the go from the gym or studio in complete style.”

    Innovative Fabric Play

    Anything that stretches and helps absorb sweat yet keeps the fabric dry is the most preferred fabric when it comes to performance wear. Reiterating the same, Pallavi Burman says, “The fabric we use is always stretchable “wicking” blend made up of polyester and lycra. We also use a breathable mesh fabric as design and utility elements and several other performance enhancing features like anti-microbial layering, UV protection, rapid dry etc.”

    When you go through the collection, what catches your attention is interesting mélanges for both men and women. She says, “Color blocking and coordinated sets are finding a big audience in this space now.”

    Adding in a safety feature to go along with their sportswear, Numero Uno uses reflective N1 ACTIVE prints that act as safety alerts along with digital and high-density prints for a futuristic fashion flare. Kohli further adds, “For our sportswear/active wear, we are using fabrics that have technically advanced finishes with features like Anti-Static, quick dry, moisture wicking, Windproof, water repellent, Anti-microbial, odour control, easy care etc.”

    Triumph has developed two series of specialized brassieres that use innovative fabrics for the woman on the go. Their Dynamic Lite series with 3D Powertech material is made from the innovative fabric Dynamic Lite, which offers flexibility that keeps its shape over time. It fuses three innovative fabrics in one, is a two-way stretch fabric, has a strong lightweight mesh and soft moisture management lining which are insightfully laminated together, allowing the bras to stay very light and adjustable to all body shapes. These features make the bra light and comfortable to wear with its functional unpadded fabric combination. This innovation received an honorable mention at the 2016 Red Dot Deign Awards.

    Elaborating on the second innovation, Jennifer Kapasi says, “Our Magic Motion series is made from the most comfortable fabrics. Powered by LYCRA sport technology, these bras have stay dry properties, bacteria-reducing fabric with moisture management mesh. Extremely elastic fabric using LYCRA, guarantees unique freedom of movement.”

    The next generation LYCRA® SPORT technology combines the proven stretch performance of LYCRA® fibre with demanding testing standards that measure fabric performance descriptors on a simplified 1-10 scale. The three indexes measure Power, Comfort and Energy (PCE™). Triumph has gone ahead to combine these indexes to create performance levels tailored to fit each garment’s end use.

    The range at Just F is made using polyester-spandex or polyester-cotton blend which well suits the Indian climate.

    Promoting Gym Wear

    Since gym wear is a part of the performance wear / active wear category, brands don’t actively engaging in marketing and promotion initiatives targeting gym goers. However, on the other hand, some brands like HRX go the extra mile to reach to their target audience right at the place they are at – i.e. the gym!

    Pallavi Burman reveals, “Ours is the first homegrown, successful fitness brand in the country. We have multiple partnerships for various verticals all-leading to and adding up to fitness. We have our active wear and athleisure collection exclusively available on Myntra, we have the signature HRX Work out available at all Cult gyms, we have HRX Athlete meal packs selling at Eat.fit and we have our Mi HRX fitness bands available with Xiaomi. Across the three partners we have active communication all around the year on Digital, TV, OOH and Cinemas. Needless to say Hrithik is the face of HRX and this is the biggest draw for building customer engagement.”

    On whether there is a genuine demand for gym / active wear in the country, especially by women, Jennifer Kapasi says, “Women who regularly work out and those who lead an active lifestyle desire sport specific garments designed to help optimize performance. They pay a lot of attention to the fabric when buying a sports bra. In general, they will tend to look for hi-tech fabrics with ‘moisture-wicking’ and ‘stay-dry’ features. One of the most important qualities women look for is a high percentage of Elastane which not only makes the bra comfortable to wear but also retains its shape after multiple uses.”

    To launch their Autumn/Winter ‘18 Triaction – a collection by Triumph – took a digital approach through the launch of an online campaign ‘Team Triaction’, featuring four inspiring women, undertaking a fitness challenges to test both mind and body.

    “Team Triaction is led by actress and fitness enthusiast Mandira Bedi. She is joined by celebrity fitness instructor and owner of a Pilates studio Namrata Purohit; popular yogi and influencer Yogasini (aka Radhika Bose); and lifestyle and beauty influencer Juhi Godambe. The campaign also included a weekly contest with four rounds for Instagram and Facebook fans,” states Jennifer Kapasi.

    Getting Future Ready

    While there are a lot of dedicated online portals for gym wear, it remains to be seen how these enterprises survive over a period of time with their niche offering. With fitness being seen as a goal on everybody’s to-do list, especially with the new year approaching, all the gyms will experience a full house and so the sale of gym wear eventually is going to go up, but it is completely upon these brands to maintain the tempo for after all.

  • Vietnam labor costs highest among ASEAN comparators

    Vietnam labor costs highest among ASEAN comparators

    Vietnam’s labor cost is the highest among comparator countries in Southeast Asia, a World Bank report says.

    In a report on enhancing enterprise competitiveness and enhancing small and medium-sized enterprise (SME) linkages, it says Vietnam’s labor costs are higher than in comparable Southeast Asian peers.

    It defines labor costs for each firm as the cost of all payments to all workers divided by the number of workers.

    It says wage costs about $2,739 per worker for the median Vietnamese firm, about twice as high as in Laos, Myanmar and Malaysia, and about 30 to 45 percent higher than in Cambodia, Thailand and the Philippines.

    While Vietnam’s labor costs are higher than in the rest of the region, they seem in line with productivity levels and thus do not seem to be a major obstacle to competitiveness, the report says.

    The average manufacturing firm in Vietnam produces about $10,500 worth of value-added per worker per year, higher than in most countries in Southeast Asia. It is around $10,000 in Malaysia, and $5,000 in Cambodia.

    Vietnam’s relatively high value appears to be partly driven by high and growing use of capital, the report says.

    The report also breaks down labor productivity in the country by region. The north-central and central coastal regions of Vietnam have the highest productivity — of almost $16,000 value addition per worker — while the southeast comes in second at $14,000.

    The Red River Delta region has a productivity of only $7,000, and it is even lower in the Mekong River Delta at around $6,000.

    It also said that foreign-owned firms are generally more productive than domestic firms, which can be explained by their easier access to technology and finance through their parent companies.

    The World Bank report also says that capital productivity is low in Vietnam. The ratio of sales to value capital in Vietnam is around 160 percent, lower than in any of its peers in Southeast Asia. The bank’s data confirms that capital might not be used very efficiently in Vietnam.

  • AirAsia Malaysia sells Merah Aviation Asset for RM3.22b

    AirAsia Malaysia sells Merah Aviation Asset for RM3.22b

    AirAsia Group Bhd is disposing of its entire stake in Merah Aviation Asset Holding Ltd to AS Air Lease Holdings 5T DAC for US$768 million (RM3.22 billion). AS Air Lease is indirectly owned by Castlelake LP, a US-based global private investment firm and leader in aircraft ownership and servicing.

    AirAsia told Bura Malaysia that its indirect wholly-owned subsidiary Asia Aviation Capital Ltd (AACL) had entered into agreements to sell Merah Aviation, which will comprise 25 existing aircraft to be leased to AirAsia.

    Castlelake will also purchase from AACL a total of four new aircraft to be delivered in 2019 for a purchase consideration to be determined at a later date. The aircraft will be leased back to AirAsia and/or its affiliates.

    Merah Aviation is principally engaged in the owning, leasing and/or financing of aircraft.

    AirAsia said the transaction is subject to its shareholders’ approval and other relevant customary closing conditions, and is expected to be completed in the second quarter of 2019.

    Bulk of the proceeds will be used for the repayment of existing debt.

    AirAsia noted the proposed disposal is in line with the group’s strategy to focus on its core airline operations with an estimated net gain of about RM174.9 million.

    It will also allow the group to reduce its financial leverage as the gross gearing ratio is expected to fall from 0.53 times to 0.24 times.

    Castlelake specialises in providing creative, flexible capital solutions for its airline partners. Since its inception in 2005, Castlelake has invested in and managed more than 500 aircraft on behalf of its funds

    With the closing of this transaction, Castlelake’s current fleet will comprise more than 250 aircraft.

  • Vietnamese prefer fresh food by far to processed items

    Vietnamese prefer fresh food by far to processed items

    Vietnamese citizens spend three times more on fresh food than fast-consumer moving goods (FMCG), a new survey says. A family in urban Vietnam spends about VND1.1 million ($47.12) on fresh food a month, according to the recent survey by market research firm Kantar Worldpanel Vietnam.

    The survey polled over 2,000 households in Hanoi, the central city of Da Nang, Ho Chi Minh City and southern Can Tho City, and over 1,000 households in various rural areas across Vietnam.

    Fruits top the spending category in fresh food, accounting for 19 percent of the total, while vegetables come second at 11 percent. The rest goes to meat, seafood and rice.

    The traditional market remains the favorite shopping outlet for Vietnamese people, accounting for 85 percent of total spending on fresh food.

    Vietnamese people spend VND930,000 ($39.81) per week on fresh food at traditional markets, mostly on meat and seafood.

    Although locals spend only VND220,000 ($9.42) per week on fresh food at supermarkets, the figure shows a 28 percent growth over last year. Most of the supermarket spending is on fruits and processed food.

    Fresh food and FMCG make up the majority of Vietnamese people’s spending at 26.8 percent last year in the cities and 25.9 percent in rural areas.

    With rising incomes, Vietnamese people, especially in the cities, have been spending more on education and health, the report finds.

    The share of spending on education by urban families increased from 10.8 percent in 2012 to 12.9 percent last year, while spending on health grew from 3.5 percent to 3.9 percent in the same period.

    The report also finds that Vietnamese consumers accord top spending priority to food safety, health and environmental issues/disease.

    The majority of survey respondents, 96 percent, are confident that their spending capability will be stable or increase in upcoming months, and 86 percent expect the Vietnamese economy to be stable or grow stronger in the near future.

  • LOTS to cheer for the Cash & Carry business in India

    LOTS to cheer for the Cash & Carry business in India

    LOTS Wholesale Solutions recently unveiled its second Cash & Carry wholesale distribution centre in India at Akshardham in East Delhi. The launch of LOTS’ second store follows closely on the heels of its first store three months ago. Inaugurated by Amitabh Kant, CEO, NITI Aayog, this is second of the fifteen distribution centres that the firm is aiming to open in India over the next three years.

    The newly launched store will cater to over 45,000 registered business customers, which include hotels, restaurants, and caterers (HoReCa), kirana stores, corporates, MSMEs and institutions such as government agencies, educational institutes, and hospitals.

    Spread over an area of more than 53,000 sq. ft., the newly opened store has all the facilities including automatic system orders forre-stocking, predicting the demand as per customer’s behaviour, and designated goods receiving and dispatching, live bakery, among many more. Other notable features are transparent pricing, round-the-year promotions, consistent product availability, customized last mile delivery and credit facilities, all of which are tailored to satisfy the needs of its registered members.

    “We had promised to open two wholesale distribution centres in India in 2018. Today, that promise has been fulfilled. From our first store, we have exceeded the expectations we had set for ourselves. We have been getting very good response and we are getting 600-1500 walk-in customers daily. We decided to open our second store in Akshardham in view of the unfulfilled potential of the area in terms of wholesale buying options. The facility is all set to cater to the requirements of our members in east Delhi and nearby catchment areas. Through this store, the business customers of LOTS Wholesale Solutions will have a wide range of more than 5,000 food and no-food products to select from. Besides, they will also benefit from customized delivery solutions, competitive pricing and personalized service through our business development associates,” Tanit Chearavanont, Managing Director, LOTS Wholesale Solutions, said commenting on the launch of the new store. With its expanding footprint in Delhi-NCR, LOTS Wholesale Solutions will generate 5,000 direct and indirect jobs over the next five years.

    The launch ceremony was presided over by the chief guest Amitabh Kant, CEO, NITI Aayog. Also present at the launch ceremony was Chutintorn Gongsakdi, Thailand’s Ambassador to India and LOTS’ global and Indian leadership team. “I congratulate LOTS Wholesale Solutions on opening its second store in Delhi-NCR. The Retail sector in India is poised for higher growth as we are growing at 8.2 percent. We have jumped 65 spot and moved up substantially in the ease of doing business. India is the only country to have repealed 1,300 regulatory laws as part of our efforts towards creating a better business environment. Indian FDI has grown 62 percent whereas globally the numbers have shrunk by 16 percent.

    This is a unique story for Indian retail and the government is pushing for greater financial inclusion and working closely with other stakeholders. Such enabling regulatory norms and liberalised FDI policy should make it easier for global companies like LOTS to invest in India and on mutually benefiting terms. We will act as a facilitator and assure them of all the support they need to excel and deliver on the demands and expectations of their customers,” said Kant.

    In recent years, India has emerged as one of the top destinations for FDI. The inflow of FDI into India has gone up significantly with receipts flowing in from across the world, which has given India access to the latest technology, best practices, and global innovations. The arrival of multinational companies like CP Wholesale Solutions in India, which has chosen a 100 percent FDI route to establish its operations in India, further vindicates the popularity of Brand India in the world. With India’s retail sector projected to grow to USD 1.3 trillion by 2020, the country is the land of opportunities for potential investors and companies looking to start operations here.

    There has been an overall growth of the Indian economy, which has increased the purchasing power of the people in rural areas opening development opportunities for the companies to expand their presence. This offers a huge potential for Cash & Carry players to target B2B customers – like kirana stores and catering to the rural audience. Also, the implementation of GST has created a favourable environment for companies like LOTS that aim to establish and expand operations across India. It rubs off positively on supply chain efficiency, uniform assortment of goods and in supporting the end consumers. Cash & Carry, also known as wholesale trade, is fast emerging in India, where Lots Wholesale competes with players such as Walmart, Metro Cash and Carry and Reliance Cash and Carry, a unit of Reliance Industries Ltd. According to Ambassador Chutintorn Gongsakdi, after the arrival of LOTS in India, business interest in the country has picked up substantially and many more companies from

    Thailand have begun making enquiries about starting operations in India. “As the Thai Ambassador to India, I have set an ongoing goal for India and Thailand to strengthen our economic relations. One target I had was to have at least two new businesses to come and start business in India during my term in office,” said the Ambassador. He remarked in a lighter vein that his task in India has already been accomplished within one and half years of taking up office. “With the registration ofCP Group’s LOTS Wholesale Solutions Pvt. Ltd. and SCG International Pvt. Ltd., I have already succeeded in meeting my target. I can go home but I have reset my target to bring in two new Thai companies per year.”

    Expressing his satisfaction and pleasure at India’s participation in Thailand’s eastern economic corridor, he observed: “Speaking on this occasion, I already know that two new businesses are in the process of registering their business in India. So things are very vibrant. I have witnessed all the hard work done by Tanit and his team with respect to LOTS’ first store. I would like to sincerely congratulate the LOTS team on the opening of the second store. To witness a Thai MNC such as CPGroup, known for great corporate governance and values, grow their business in India gives us great satisfaction and pride. India is a dynamic country with a great future and it is a moment of pride for the Royal Thailand government and myself that Thai companies are keen to play a contributory role in India’s economy.”

    Pointing out that the opening of the LOTS’ second store reflects the ongoing rise of Thai businesses in India and is proof of T ai investment successfully flowing into India, Ambassador Chutintorn Gongsakdi said: “LOTS and CP Group’s success will, in turn, have a halo effect on other companies in the CP Group and other Thai businesses wanting to enter India. As ambassador, I am pleased to see the full potential of Indo-Thai economic relations being developed through the engagement of CP Group and other Th ai MNCs and SMEs and also vice versa from the Indian side.We have now around 28 Thai companies in India and the 28 will soon be thirty and more. The trend is good and The Royal Thai embassy has been receiving many expressions of interest in doing business with Thailand from the Indian side as well. I will use my office as a business matching venue to put this act together. Thanks to the eff orts of Amitabh Kant, Niti Ayog, and others in team India, the government in India has been very successful in reforming the economy and making it friendly to investors. Th is is the right time for Th ai businesses to secure their place in India’s future. And this message is not only for Th ais but other ASEAN and other nationalities as well. It’s not too late to be in India and startnow but in another five years it will almost be too late. Thailand is ranked 26 in the ease of doing business and we also off er a very friendly setting for foreign investors wishing to set up operations in our country.”

    The Indian government, on its part, is actively favouring open-door policies in investment and trade. The government is pushing for financial inclusion and working closely with ministries like Commerce, DIPP and Food Processing to bring relief to farmers by doubling their income through better yield. “It is our vision to make India an ideal place for large format business groups to set up shop and contribute to the growing demands of our growing nation. I am impressed that LOTS with its values of “local love” and principles of 3Cs – country,community and company – is not just about profit making but also about focusing on contributing to the society in equal measure. My compliments to LOTS Wholesale Solutions for opening two wholesale stores within a span of three months,” Kant said.

    In India, LOTS is committed to invest over Rs 1,000 crore in the first five years and its plan of opening 15 wholesale distribution centres across northern India has already started taking shape. Within a span of one year of signing the Memorandum of Understanding (MoU) with the Ministry of Food Processing Industries, the company – CP Wholesale India Private Limited – was incorporated, LOTS brand was launched and two stores have started operations already. It plans to open a third one in Noida by the end of this financial year. Because of the real estate challenges in the country, the company has decided to open 25,000-50,000 sq. ft. stores inside the cities instead of outskirts. “If we build centres out of the city, it is very difficult for the people to travel. Th at is the reason why we continue to focus on building stores where the catchment is,” said Tanit.

    The company, which invests on average Rs. 60-70 crore in one centre, is also looking at opening stores in Lucknow, Kanpur, Varanasi, Jalandhar, and Kolkata. For the next 2-3 years, the company will continue to add more stores in north India as a part of its expansion plans and intends to have a national footprint in 10 years time. Besides, the company also plans to adopt the omni-channel system for integrating online sales channel with its brick and mortar stores and is also exploring the idea of having dark stores/fulfilment centre in India.

    “With regulatory changes like GST, demonetization, RERA and the Make in India policy bringing about a higher organization on the Indian retail scene, there is no time like the present for retailers from across the world to venture into the country and invest. Our parent company Siam Makro has defi nitive expansion plans in the ASEAN region and owing to a positive regulatory environment, India is the first on our list. We see a lot of potential and the right type of investing and retailing environment in the country, which is why we were ready to take the lead here,” said Sameer Singh, Director – Operations, Business Development and Expansion, LOTS Wholesale Solutions.

    He added that LOTS follows a cluster approach. The brand sets up stores basis the supplier/ customer base so that it can provide them with a hassle-free experience and build a robust supply chain and make the delivery process faster. “Our parent company Siam Makro has evolved into several separate store formats and we are bringing all these formats and this knowledge to India, ready to explore both large or small sizes and even multilevel sizes. We can look at different sizes, which could help us at different levels. It gives us that excitement to be part of the catchment itself, otherwise we might be stuck on a certain format,” explains Singh.

    This catchment-specific approach is extended to the daily needs and grocery sections of the product range of LOTS as well. All efforts are made to source fresh produce from local farming community, which helps farmers earn better while reducing wastage during transportation and storage.

    According to Singh, LOTS offers solutions to member companies, which help them undertake a path of sustainable growth. Our product selection is based on detailed research that is specific to the region as well as the community. A critical element is to provide support to the home-grown brands – an essential component of our region-specific business strategy. Therefore, apart from engaging with international brands, we are working very closely with Indian brands and local farmers.”

    Taking pride in working with the local community and giving back to society, LOTS has joined hands with farmers in Bhatinda to help them adopt progressive farming methodology. In addition to that, the company is committed to sourcing fresh produce from the local farming communities, share know-how and packaging and storage so that farmers can reduce wastage during transportation and storage and increase their income. The company hopes that its efforts will help to develop the agricultural sector in India.

    At the same time, LOTS is focused on customers’ needs and satisfaction. The company brings specially curated assortments, categorised into food and beverages, kitchenware, household appliances, home decor, furniture, bedding, textiles, stationery and office supplies, electronic products and others; making LOTS Wholesale Solutions a complete one-stop shop. Th e company also offers a varied set of benefits to its members, including a wide range of product selection at its stores, based on detailed research specifically catered to the catchment area and market demand. Th e company, which currently has a customer base of around one lakh members,will also offer its support to home-grown brands and local suppliers and is looking to turn profitable in the next five years.

    “We place our customers at the core of our business and aim to provide a hassle-free shopping experience, making LOTS Wholesale Solutions a one stop shop for all their business needs. We aim at sourcing our products from not only top international brands but also Indian brands as well. Additionally, we believe in supporting the local community so that they flourish without support,” emphasised Tanit Chearavanont.

  • Higher Fed interest rate could weaken Vietnamese currency

    Higher Fed interest rate could weaken Vietnamese currency

    The U.S. recent interest hike might result in a high demand for U.S. dollars in Vietnam, weakening the local currency further, experts say. The U.S. Federal Reserve Wednesday raised its interest rates for the fourth time this year to 2.25-2.5 percent. The Fed has projected two more hikes next year.

    Every time the Fed raises its interest rate, the interest rate for the greenback will increase at international banks, economist Nguyen Tri Hieu said.

    He said that with the interest rate on dollar accounts at Vietnamese banks at zero percent currently, investors might look to deposit their money in international banks for at least 2 percent.

    “This could result in a bleeding of dollars which could lead to a lower supply of the greenback in Vietnam.”

    Hieu added that the smaller supply of dollars will increase its exchange rate against the dong.

    The Fed interest rate increase will pressure the USD-VND exchange rate, as the dollar strengthens further over the dong.

    Local banks will push their interest rates up to prevent their customers from exchanging local currency to the U.S. dollar, he said.

    According to Ngo Dang Khoa, HSBC country head of global markets, another risk is that the U.S. dollar is forecast to be stronger next year, making a weaker dong a high possibility.

    Economist Hieu said that a strong dollar will also increase its exchange rate against the Chinese yuan, which will create even greater pressure on the dong.

    If the dong value remains unchanged, it will become stronger against the yuan, and Chinese exports to Vietnam could increase, resulting in a higher trade deficit than Vietnam has already has with the country, he said.

    However, other observers have said that as the fourth hike has been predicted, the Vietnamese market has prepared itself for the new interest rate and short-term impacts could be mitigated.

    Khoa with HSBC also said that there won’t be major responses from the Vietnam market following this hike, especially the forex market, as investors have already expected the interest rate to be raised.

    The local finance market won’t have to bear major impacts because of the raise, as the State Bank of Vietnam has recently taken measures to control the exchange rate and interest rate to stabilize the market, he said.

    The dong has fallen by some 1.57 percent, against the greenback since the beginning of the year. The dong hit 23,419 to the dollar on Friday.

    Prime Minister Nguyen Xuan Phuc had said in August that the devaluation of the dong needs to be kept within a 2-percent band this year compared with the end of last year.

  • JR East’s Atre to open first shopping mall outside Japan in Taiwan

    JR East’s Atre to open first shopping mall outside Japan in Taiwan

    The East Japan Railway is launching its first overseas shopping mall in Taiwan next month. The mall is opening under JR East’s station complex management subsidiary Atre, following an extended consideration of alternative international locations that included Thailand, Malaysia and the US. Taiwan was was chosen for its affinity with Japanese brands, which will occupy around 60 per cent of the mall’s 51 stores.

    The mall will open in Taipei Nan Shan Plaza’s Breeze Center on January 10.

    “We have no specific targets or plans at this point on how many shopping malls we want to develop outside Japan,” a spokesman for East Japan Railway said.

    The firm has 29 malls to date within Japan.