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Tag: asia

  • Korean companies in China becoming less optimistic

    Korean companies in China becoming less optimistic

    Korean companies operating in China are less optimistic about business conditions in the fourth quarter of this year, as the Chinese economy is cooling amid a trade spat with the United States, a survey showed Sunday. According to the Korea Institute for Industrial Economics and Trade (KIET), its business survey index (BSI) stood at 103 for the October-December period, down 12 points from the previous quarter.

    A BSI reading above 100 means optimists outnumber pessimists. The BSI for the sales outlook was also still over 100, but came in at 117, down 8 from a quarter ago.

    By sector, electronics, electric and retail were more pessimistic about the fourth quarter, while automaking and textiles remained bullish over business conditions in China.

    Last week, China reported its weakest quarterly growth since the first quarter of 2009, during the global financial crisis.

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  • An Overview of E-commerce in South East Asian Countries

    An Overview of E-commerce in South East Asian Countries

    Electric commerce or e-commerce is the activity of buying and selling online. Typical e-commerce transaction includes purchase of online books, music purchase and purchase and sales of many other items.  Three known major areas of e-commerce include online retailing, electric market and online auction. Technologies such as mobile commerce, internet market, electronic funds transfer, and electronic data interchange (EDI), online transaction process and many others.

    The practice of e-commerce in Southeast Asia started during the dot.com era in the 90’s just like in many parts of the world. The dot.com era refers to the period where companies started using doing for most of their businesses on the internet, usually through a website that uses the popular domain “.com”. During the dot com era southeastern Asia mainly purchased items from American and European companies that would be delivered in their countries. During this era companies with electronic commerce had shown great prospect with their fast growth and promising profits. Companies’ stock prices skyrocketed and Asia was pretty happy because the rise had resulted to a bubbling economy through electronic commerce.

    Asia then began to attract nearly half of the total capital inflow from developing countries appealing them with high interest rates. Countries like Malaysia, Singapore, Thailand and Indonesia experienced an increase in their GDP rates. Around the year 2000, the e-commerce market was mainly involved in a business to business (B2B) transaction due to customers mistrust after going through the 1997’s financial crises and the bubble burst in southeast Asia – bubble burst is often identified only in retrospect once a sudden drop in price has occurred – The burst is usually profitable for buyers and not sellers. In the 90’s a lot came up as hindrances to the upspring of electronic commerce

    – In those days, aside mistrust e-companies had other issues of which Southeast Asian countries were also affected. As a result of its structural shortcomings, a much more diverse range of payment solutions have become common in the region. The average internet penetration around southeastern Asia with the exception of Singapore was 38% while leading countries have an internet penetration of 70-80%, this made cash on delivery offered by 80% of the players in both Vietnam and Philippines, though bank transfer is another very popular payment method across the SEA. With each of the countries having 94%, 86% and 79% of merchants in Indonesia, Vietnam and Thailand respectively offering it.

    – In addition to a lack of uniformity in payment methods, there is also significant market fragmentation the Southeast Asian consumers have so many platforms to choose for their daily need.

    – Culture also was an inhibiting factor –the influence of Traditions in the Asian region overtime had made people have low trust in bank system and electronic payment, for example; credit card owners and other means used in payment other than in cash is small – government in those times pushed for a cashless policy in their society by trying to implement laws to suit online transactions.

    – Fraud and high level of corruption was another setback to the growth of electronic commerce in the region.

    The prospects and thrive; the battle for supremacy

    The gold rush in the online ecommerce of the as left traditional offline retailers in the Asia region like Thailand and Indonesia scramble for an online business move.

    Over the years until this day the massive growth in e-commerce around southeastern Asian has attracted big name investors into the region. In 2016 the release of the Google Temasek SEA Economy spotlight highlighted Southeast Asia as the world’s fastest growing internet region.  With an existing internet user of 260M which was projected to grow to 480m users by 2020. In the research they predicted that southeast Asia’s internet economy will grow to 200B by 2025 and that $40 – 50bn in investment will be required over a decade to achieve that goal, fast tracking to 2017 they observed that the southeast Asia’s internet user base continues to grow rapidly. there will be 330m monthly active internet users by end of 2017 adding over 70m new users since 2015 13% CAGR.  They estimate that Southeast Asia’s internet economy will reach $50b in 2017, meaning it will Grow at a rate of 27% CAGR outpacing their 20% 10year CAGR projection.

    Asia as a continent had an increase in of around 4.5  billion in the GMV ( gross  merchandise value ) of first hand goods and has had a 41% compound annual growth rate ( CAGR ) in the past couple of years- 2015 to 2017- as given by Google –Temasek’s economy southeastern spotlight 2017 report. The Temasek report went further to predict that CAGR will rise from $5.5bn of 2015 to $88bn by 2026. 2017 witnessed events which proved high results are expected from the e-market in southeastern Asia.  The explosive growth in E commerce as lured china’s two e-commerce giants Alibaba and sd.com to the southeast online market. Amazon much awaited  recent entrance into the E-market of a southeastern nation ( Singapore to be specific) to fast track its online market expansion in southeast Asia also proved there was an attractive raw material in the cyber space of the region.

    The record breaking 1billion dollar sales of shares of Lazadas to Alibaba with alibaba also putting its grip on Tokopedia; arguably a future competitor in Indonesia. The resilience of another China based heavy weight company; Tencent. Tencent has also kicked start investments in companies like SEA (previously Garena) predominantly a gaming powerhouse that runs Shopee, Go-jek, Traveloka, Tiki.nn and Pomelo. The US based KKR  in a bid not to be left out of this massive growth phase through emerald media put US$65million into e-commerce arms dealer Acommerce. This trends of acquiring more shares and grabbing more local companies across the Asian borders by these online giants  is expected in coming years as all stated above points to the fact that the riches in online space of these Asian nations is worth risking for.

    Currently, predictions have given that the home based Asian companies will have to pick sides with either of or stand their ground against the foreign forces from both the western and eastern part of the world.  Predictions went further  to specify that  foreign based companies like Alibaba, Amazon and Tencent is  likely to have a bloodbath battle for the monopoly of the regions  electronic commerce  or share the  Asian online customers, some term this head to head of the western state and eastern state as the clash of the online titans.  It is hope that this clash will result to a much needed gold-shed To Help in the growth of the developing region

    Joe Tsai, Alibaba vice chairman, in speaking with Retail News was quoted as saying “is there a land grab right now for these kind of assets? I think in the land grab they [Tencent] are following us. They are seeing that we have positioned ourselves very well, and they are sort of playing a catch up game. So what we want to do is to work with local entrepreneurs. ”

    Experienced, grown and growing

    Marc woo, Google head of ecommerce , travel and financial services was quoted to have said “Asia pacific (APAC) accounted for 40% of global ecommerce sales in the 1st quarter in 2017, but vast majority of those sales went to larger or more mature markets in the region, particularly china, but also japan, Australia, South Korea, and India. That leaves Southeast Asia as the next frontier for ecommerce in the region.  “

    A steady increase in the advantages of electronic commerce in the region resulted to a 50% growth last year and now totals 200 million individuals across southeastern Asian’s top six economies. The southeastern Asian nation Singapore takes a top spot in Asia with an average of 14.04 sessions per person per year visiting amazon.com. It is rumored and expected that by the end of the year the ecommerce companies should erect physical stores in their resident southeastern nations. This will make a great boost in the economy of this regions.  This huge development in ecommerce have led southeast Asian governments to launch a bid to introduce taxes on ecommerce sales as they look to claim their dollar-and-cents take from one of their most promising engine towards  economic and  financial buoyancy.

    This though might increase the cost price of goods and services offered by the online companies but cannot override nor underestimate its advantage as compared to import and shipping processes. Taxing online sales will align practice with those of world leading countries. It puts online retailers on a leveled playing ground with brick-and-mortar counterpart. This growing market has also initiated an online network process between the Chinese and the Asian region as Alibaba is working to set up a digital free-trade zone in Malaysia and has signed a memorandum of understanding with the government of the Asian country and the authorities of china to simplify cross-border trade between the two regions.

    If this deal falls through under the current government of china a long term mutual profit making relationship is expected to last for a very long time between the Asian nations and the Chinese government  giving that  the china parliament are rumored to have kick started plans in keeping their president more longer in office than usual.  The critical factors responsible or observed to needed for the spontaneous growth of ecommerce in the southeastern region of the continent are

    • A growing middle class – knowing that the middle class contains the highest number of mobile phone users and also the highest number of common goods purchasing.
    • Rapidly expanding internet access are positive indicators for fast paced e commerce growth in coming years. Internet access needs to be at its best for the effective running of electric commerce in a state

    The middle class population of the Asian region is expected to reach a 400million in 2020 from its 190 million of 2012, according to Nielsen project.

    Internet access in the region as not only being expanding at a high pace but has also improved strongly over the years like stated in the research of Google Temasek SEA economy spotlight report stated above.

    The electric commerce has also shown to be of disadvantage though not significant as compared to the many fruit yielded by the online market.

    • The desire for local business owners and the nation’s mobile phone user population to switch online results to more cases of fraud because this system isn’t used to them.
    • Competition between locals and foreigners which should encourage an healthy business environment is not observed as the big guns will slowly silently phase out the local brands
    • The preference of foreign products to locally made products by locals isn’t favorable for the country’s economy.
    • Owing to the creation of a good relationship with certain world leading countries, good tides with others could be altered.
    • If not properly monitored, foreign companies might have a full grip of the southeastern nation economy.

    One major benefit that has been observed to have taken the front line in the advantage of electronic commerce in the southeastern Asian region is the quest for each nation to outperform each other. Especially between Thailand, Vietnam and Indonesia, this healthy beef has led to varying developments in these nations as none wants to be left behind in the development and modernization of their country. These alongside the introduction of big time investors, the rise in economy growth, job creation in nations, strengthening diplomatic tides and many other advantages.

    Stakeholders and experts have advised to government of these Asian nations to support the region to grow by fixing reasonable tax levies in other not to discourage foreign and local investors, encourage a competitive market, improve online network and provide adequate education to ease communication with foreign partners. With the huge wealth emanating from the electric commerce sector, if properly managed these nations can get a massive boost in their nations wealth and reputation. The potentials possessed to build a nations revenue by employing electric commerce cannot and should not be undermined.

     

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  • Bvlgari’s cinema themed pop-up at Singapore’s ION Orchard mall

    Bvlgari’s cinema themed pop-up at Singapore’s ION Orchard mall

    High-end Italian jewellery house Bvlgari has opened a pop-up retail place this month in Singapore. Located on level one of the ION Orchard mall, the “Pop (Up) Corn” shop is decked out in saccharine pink and blinking neon lights and takes inspiration from 60s Italian theatre.

    It is also a mini-reproduction of the Italian luxury brand’s Via Condotti boutique in Rome where Hollywood icons such as Audrey Hepburn and Elizabeth Taylor would shop when in town.

    Inside, the pop-up offers limited-edition Bvlgari handbags including Serpenti and Divas Dream bags in calfskin leather, as well as sparkling jewellery pieces and watches.

    The standout piece is the limited-edition matching set of a Bvlgari-Bvlgari necklace and bracelet in rose gold, which is an ION Orchard exclusive. Not to mention a series of cinema-themed objects such as glitzy popcorn boxes, rectangular ticket stubs and dazzling neon lights.

    The Pop (Up) Corn store is open now until December 31.

    The new pop-up serves as a precursor to the official store opening in ION Orchard from Bvlgari in December, joining the store in Marina Bay.

    It’s not the first time Bvlgari has opened a pop-up store in a key capital city.

    In 2017, Bvlgari opened a pop-up store inside France’s Galeries Lafayette department store on boulevard Haussmann in Paris.

    Bvlgari operates flagship stores in most Asian cities including Singapore, Taipei, Shanghai, Beijing, Hong Kong and Macau.

    Founded in 1884 in Rome Sotirios Voulgaris, Bvlgari is now majority-owned by French luxury conglomerate LVMH Group.

    For the first-quarter 2018, LVMH’s watches and jewellery category, which Bvlgari is a part of, witnessed 8% growth in revenue terms and 14% organic growth in the category, totaling 9.5 billion euros. Overall revenues tipped 33 billion euros for the three months ending September 30.

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  • Minor takes The Coffee Club to Vietnam

    Minor takes The Coffee Club to Vietnam

    Vietnam Investment Group (VI Group) has signed a master franchise agreement with Minor International’s subsidiary Minor Food to bring The Coffee Club to Vietnam. Under the joint venture, VI and Minor plan to open 100 The Coffee Club outlets over the next five years.

    “With the flourishing coffee market and favourable macro trend, we are very optimistic about the opportunity to strengthen our presence in the country and grow The Coffee Club brand nationwide,” said Paul Kenny, CEO at Minor Food.

    According to Chaiyapat Paitoon, deputy chief financial officer and strategic planning for Minor International, restaurant businesses show strong potential in Vietnam because people “want a wider variety of cuisines, paving the way for foreign players to come in and offer different choices in addition to traditional, local and street food”.

    “The Coffee Club offers a distinctive restaurant experience with great selections of food and beverages menus, excellent coffee and a welcoming relaxed atmosphere enriching the contemporary lifestyles of the Vietnamese consumers,” said David Do, VI Group MD.

    The joint venture plans to open 20 The Coffee Club restaurants next year.

    Minor is no stranger to Vietnam’s F&B market. It first established its restaurant footprint there  in 2009 launching three casual-dining restaurant brands, including The Pizza Company, Swensen’s and Thai Express. It now has 83 outlets nationwide across those brands, 60 of them under the Pizza Company banner.

    Apart from The Coffee Club, Minor is also looking for opportunities to launch other restaurant brands into Vietnam at a later stage.

    Opening its first store in Brisbane in 1989, The Coffee Club claims to have become Australia’s largest home-grown cafe group with more than 400 outlets throughout Australia, New Zealand, the Maldives, Seychelles, Thailand, Indonesia and the UAE. Thai-headquartered Minor International owns 50 per cent of The Coffee Club.

    Analysis: Fit for Vietnam?

    Entering Vietnam market means The Coffee Club is competing with fast-growing coffee chains like local operators The Coffee House and Highlands, and international chains such as Starbucks and The Coffee Bean and Tea Leaf, the latter of which has struggled to gain critical mass in the market and several months ago closed its flagship in downtown Ho Chi Minh City. Fellow Australian restaurant chain The Hog’s Breath Cafe also gave up last year after about seven years in the market.

    If The Coffee Club’s Vietnam outlets follow the Australian format, they will focus more on lunches, brunches and dinners than coffee as their name might suggest, although it does serve coffee on site and for takeaway.

    The company faces challenges in sourcing ingredients, many of which will come from offshore, and finding real estate at an affordable price. Those two factors combined will create price pressure for the brand, despite the affordability of labour in Vietnam.

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  • Some Insights about Central Group – Thailand

    Some Insights about Central Group – Thailand

    The Central Group, first opened as a small family-run shop by Mr. Chirathivat, in the city of Bangkok during the early 1950s. Expanded later on in 1956 by his son, Smarit Chirathivat, establishing the first Central Department Store in Bangkok.  They were the first to import international cosmetic brands; the first to focus on impeccable customer services; and the first to implement innovative marketing communications.

    One of the smartest tactics of the Central Group is that its work consists of a variety of diverse investments in various corporations, each of which has become the leader in the retail, property development, brand management, hospitality and food and beverage industries. What brings complimentary businesses to the Central Group and strengthen their position in the marketplace, both domestically and internationally.

    Central Group Operational Highlights:

    • 2016 Total Sales – US$ 10.4 billion
    • 2016 Investment – US$ 1.2 billion
    • Store Network – More than 4,400 locations/branches
    • Employees – Over 80,000 employees

    The last two years of 2016 and 2017 were significant for Central Group with the following changes:

    2016:

    1. Central Group and Nguyen Kim Group officially announced the acquisition of Big C Vietnam.
    2. Took over Zalora Thailand and Vietnam.

    2017:

    1. Launched Park Hyatt Bangkok Hotel
    2. Launched Rinascente Rome
    3. Central Group and JD.com form a joint Venture.
    4. Launch of Tops Plaza.

    Central Group is counting on online growth to help drive sales. The company first announced its $500 million joint venture with JD in September, teaming up with China’s second-largest e-commerce operator. Central Group announced a new strategy in March 2018, a strategy called “New Central, New E-conomy” with which Central is aiming to become the first Market Leader in Digi-Lifestyle Platform. The company is aiming to become the first Market Leader in Digi-Lifestyle Platform.

    Along with this strategy, the company also partnered with leading global companies to strengthen its business and has developed people and communities to grow sustainably with Central Group.

    According to the Executive Chairman and CEO of Central Group, Tos Chirathivat, the three strategic Foundations used by Central Group to operate its business for many years are:

    1. Be Retail Leader in Lifestyle and Services.
    2. Expand Businesses beyond Thailand.
    3. Strengthen Businesses by Merger & Acquisition.

    This strategy has served Central Group for years and helped achieve a significant average growth of 11% over the last five years from 2013-2017, while the revenue mix of 2017 beaks down to 72% in Thailand, 15% in Europe and 13% in Vietnam.

    For continued strong growth, Central Group President Yol Phokasub has emphasized a new 5-year strategy for 2018- 2022 to make a New Central, New E-conomy. The group will be the first Digi-Lifestyle Platform leader in Thailand delivering superior customer experiences to inspire lifetime loyalty. The Digi-Lifestyle Platform will be developed as a best in class common e-Commerce platform across businesses, as well as assisting the creation of new businesses through three Building Blocks:

    1. Data: Put all extended data from all business units into a Data lake on the Cloud to create a single view of customer for deep insight into customer behaviour, able to give a superior experience to customers.
      2. Loyalty & Personalized experience: Through The1 New Lifestyle Platform to tighten customer relationships, which are more deeply personalized.
      3. Omni channel Platform: Developing Central Group’s businesses with a true Omni channel Platform to seamlessly connect offline and online shopping, anywhere, any time.

    Central Group has also formed a joint venture with Chinese e-commerce giant JD.Com to establish JD Central. The new Marketplace at JD.co.th is a new shopping channel for Central Group’s customers to facilitate Digi-Lifestyle platform more quickly and comprehensively. The website JD.th.com will be ready to provide service in May, as a platform to bring Thai products and SMEs to the World.

    To develop the Digi-Lifestyle platform, Central Group gives priority to four main components to and achieve the target of the New Central:

    1. Alliance: Central Group has partnered with world-leading companies such as Dusit Thani, JD.com, Hongkong Bank, Ikea and many other leading partners in the near future.
      2. Technology: Central Group aims to become a top Technology Company, led by technology in every aspect to serve customers and stimulate the national economy.
      3. People: Central Group is the largest job creator in Thailand, generating over-220,000 jobs including over 700 disabled people. The company promotes talent and ability to fuel its digital ambitions. Leadership and culture are rebooted with programs like Life Reimagined to support “No Hierarchy”, Coaching and Reverse Coaching, where ambition never sleeps, creating inspiration and good experiences at work, and redesigning workspaces for work-life harmony to thrive.
      4. Community: Central Group gives priority to Creating Shared Value (CSV) under the project CENTRAL Tham that has four main pillars of people, communities, Environment, Peace and culture.

    This year, the company has a sales target of 397,308 MB, representing growth of 14% on 2017, and plans investment of 47,500 MB (27.8% growth from 2017), to expand investment in both Thailand and overseas. The company will develop its new business model to meet every customer demand, with plans to open new shopping malls and hotels.
    Central Group has also achieved success with strategic partnerships with world class partners who have trusted Central Group, such as Dusit Thani with the mixed-use project on Rama IV Road and JD.com.

    The plan of expansion of the Central Group for the next five is mainly concentrated around expansion of the business locally, and globally with a high focus on Europe.

    In recent years, Central opened and acquired new operations in Indonesia, Vietnam and Malaysia. Among the most important activities currently ongoing in Southeast Asia within the business of Central Group is their recent joint venture with JD. Which is not only a major merging for the market but also a notable change as the two giants are focusing on the e-commerce world. JD is China’s leading  e-commerce operator. Central Group is the number one retail brand in Thailand. Its subsidiaries own shopping malls, department stores, hotels, supermarkets and restaurants. The partnership will deliver a new online shopping platform JD.co.th.

    Central Group will open multiple flagship stores on the platform. The partnership with JD is intended to help Central Group compete in Southeast Asia’s booming e-commerce market and also open business opportunities in China.

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  • Samsung works with Dutch on blockchain

    Samsung works with Dutch on blockchain

    Samsung SDS said on Sunday it signed a partnership with two Dutch entities, ABN AMRO and the Port of Rotterdam, to use blockchain technologies for logistics. The IT solutions and logistics arm of Samsung will link its Nexledger blockchain product with ABN AMRO’s Corda platform by February. In doing so, it will verify whether the system is compatible with other blockchain systems.

    ABN AMRO’s system is designed mainly for financial transactions.

    Blockchain technologies, which allow for the validation of data without central management, will be used for the paperless administration of container financing and logistics, the Samsung SDS pilot project integrating container payments, administration and physical transportation.

    At present, the various processes in the handling of containers utilize separate circuits.

    “The project came after Europe took note of Korean marine logistics blockchain services,” said Kim Hyung-tae, vice president and general manager of the smart logistics unit at Samsung SDS. “It will help our global blockchain business expand and improve our competitiveness.”

    Last year, Samsung SDS led a consortium to conduct tests on blockchain-powered storage in marine transport. The consortium included companies and government bodies.

    “The ultimate goal is to reach an open, independent and global platform that operates from the perspective of shippers,” said Daphne de Kluis, ABN AMRO’s CEO of commercial banking. “This will make the logistics chain more transparent and efficient, and millions of euros can be saved in the long term.”

    According to the bank, the hope is to create an entirely new industry standard.

    “The transportation, monitoring and financing of freight and services should be just as easy as ordering a book online,” said Port of Rotterdam in a release.

    The pilot with the Dutch companies starts in January, and the results will be announced in February.

    The cooperative network will become open to other parties, according to ABN Amro and Port of Rotterdam.

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  • Unstaffed shop to open in Tokyo on trial basis

    Unstaffed shop to open in Tokyo on trial basis

    A Japanese railway network operator is testing an unmanned store in a Tokyo railway station. The store will use artificial intelligence in place of cashiers to transact with customers in a trial expected to last about two months. The venture was opened by East Japan Railway, otherwise known as JR East, this week at the Akabane Station in Tokyo’s north.

    It has some 80 cameras mounted in the ceiling and on shelves recording customer behaviour before the AI software detects which items customers select.

    Customers pay using stored value cards issue by railway companies for transit.

    If the concept proves a success, JR East says it will begin rolling the technology out in stations across the city.

    The store is loosely modelled on unmanned stores opened in Mainland China, along with the Amazon Go concept in the US.

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  • Vietnam remains among 50 most valuable national brands

    Vietnam remains among 50 most valuable national brands

    Brand Finance has released its annual report on the world’s 100 leading nation brands, and Vietnam is in 43rd place. Its brand value is estimated at $235 billion, up $32 billion from the previous year. It has risen two places in the list this year.

    The global brand valuation consultancy firm evaluates a country’s national brand on the brands based there and the economy as a whole by weighing up various socio-economic factors.

    A “strong” national brand denotes a highly attractive environment for investment, encouraging inward investment, adding value to exports, and attracting tourists and skilled migrants, it explained.

    Vietnam’s continuing rise in the list is primarily due to “Vietnam Value”, a national program to endorse products and services that meet minimum standards set out by the government, and concentrated efforts to promote economic growth by the government, it said.

    In Southeast Asia, Vietnam is only in sixth place in terms of value, below Indonesia, Singapore, the Philippines, Malaysia, and Thailand.

    The Top 10 in the world did not see much change with the U.S., China and Germany continuing to lead in terms of value.

    The U.S.’ value has shot up by 23 percent to $25.9 trillion this year as a result of falling tax rates and a more business-friendly environment despite the negative public image that President Trump may have cultivated, the report said.

    Founded in 1996, Brand Finance is the world’s leading independent branded business valuation and strategy consultancy. Headquartered in London, the firm is present in over 20 countries.

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  • Li & Fung to have new COO

    Li & Fung to have new COO

    Weizhong Zhu (“Wilson”) has joined Li & Fung as Chief Operating Officer (COO) and will lead operations across all Li & Fung’s 40+ production countries. As Li & Fung pushes ahead on its digital supply chain strategy to build the Supply Chain of the Future, Wilson will focus on strengthening the Company’s production platforms globally, ensuring consistent KPIs and driving operational excellence to improve customer service.

    A 31-year industry veteran, Wilson brings deep expertise in international trade relations and supply chain for retail and consumer products.

    His vast industry experience includes Chief Sourcing and Production Officer at Gymboree, EVP for Private Brand and Global Sourcing at Michaels Stores Inc, VP of Private Brand and Global Sourcing at Office Depot, and VP for Global Sourcing at Hudson’s Bay Company.

    Most recently, Wilson co-founded Cooper Aerobics Wellness Center in China, the first fitness and wellness center of its kind in China, and prior to that, he served as Chairman and CEO of inQbrands, where he led the transition of the US subsidiary of China-based Focus Technology into a full-service brand and product agency.

    “With the ongoing US-China trade war, Wilson’s leadership comes at a critical time as our customers rely on our scale and expertise to deliver alternative sourcing strategies and mitigate any potential risk in their supply chains” said Spencer Fung, CEO of Li & Fung.

    Wilson Zhu received his Master of Arts degree in Language and International Trade from Eastern Michigan University in 1987.

    Passionate about sharing knowledge and ideas, Zhu was a columnist for China’s New Fortune business magazine from 2013 to 2016 and regularly contributes to other media outlets on globalization, retail, management, branding and China-US trade relations.

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  • LG hosts fair to identify promising start-ups

    LG hosts fair to identify promising start-ups

    Technology-related subsidiaries of LG hosted a fair on Monday in which 20 local start-ups presented their cutting-edge developments in areas such as autopilot technologies, artificial intelligence and big data. The small firms are seeking partnerships with and support from the fourth-largest conglomerate in Korea.

    LG picked the start-ups jointly with the Korea International Trade Association (KITA), hoping to revitalize local start-up ecosystem.

    The conglomerate is providing a venue for the fledgling firms to mingle with their larger counterparts and find new business opportunities.

    LG subsidiaries participating in the event include LG Electronics, LG Display, LG Innotek, LG Chem, LG U+ and LG CNS.

    Executives and researchers from those companies as well as KITA CEO Kim Young-ju paid a visit to the start-up fair, which took place at the LG Science Park in Magok, western Seoul, and had a closer look at technologies and services featured.

    Funnel, for instance, has developed a voice-recognition system that automatically collects information from television broadcasts. The resulting database can be used for artificial-intelligence smart speakers and voice-command chat bots.

    Venta VR owns a technology that is able to tape high-resolution 3D videos and calibrate the video images afterwards in a way that enhances the level of immersion and minimizes visual fatigue.

    LG will offer some of the participating start-ups office and research space inside the LG Science Park as well as technology-related consulting and funds.

    Companies under the LG umbrella have been increasing support for start-ups.

    LG Electronics is backing four start-ups that are in the web operating system business, whereas LG CNS and LG Display have been running their own programs.

    LG-led tech fairs aimed at locating and supporting promising local start-ups have been held in the United States, Germany, Israel and Russia.

    With a German start-up discovered during a tech fair in Europe, LG developed a linear compressor technology for refrigerators.

    LG says it will apply the cooperation system it developed overseas to Korean start-ups and smaller companies.

    “Future cooperation with start-ups will propel their global outreach,” said an executive at the LG Science Park.

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  • Lego Mosaic Maker opened first store in Yokohama

    Lego Mosaic Maker opened first store in Yokohama

    Danish toy producer Lego has opened a store in Yokohama Landmark Plaza this week, introducing “Lego Mosaic Maker” to Japan. One of only five in the world, the Lego Mosaic Maker is a machine that can reproduce your face in mosaic feature with Lego blocks.

    Visitors enter a booth and take a photo of their face, creating a kit that can make the mosaic in around 10 minutes and which can be offered as a gift for family or friends.

    Use of the mosaic maker is by advance reservation only for a fee of ¥10,455 (US$93). Other special promotions are available in-store.

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  • Vietnam footwear exports benefit from US-China trade spat

    Vietnam footwear exports benefit from US-China trade spat

    Vietnamese footwear exporters seem to be benefiting from the ongoing trade war between the U.S. and China. According to customs statistics, Vietnam’s footwear exports in the first nine months of this year were worth $11.74 billion, a 10.2 percent year-on-year increase. Its exports to China in the period have risen by 28.5 percent, to Japan by 14.7 percent, and to the U.S. by 13.5 percent.

    Vietnam is the second biggest exporter of footwear to the U.S. behind China, shipping 404 million pairs of shoes last year.

    The upward trend is likely to continue, too, as rising wages in China increase the cost of goods produced there and the country is thus directing more of its manufacturing resources toward higher-priced goods like electronics, according to the global footwear news outlet Footwearnews.

    Foreign companies are moving to other countries like Vietnam to cut cost.

    Adidas CEO Kasper Rorsted said last May that his company is shifting sourcing of footwear from China to Vietnam.

    Vietnam has in fact overtaken China as its top supplier, with Vietnamese factories producing 44 percent of its shoes by volume last year and Chinese manufacturers supplying 19 percent, according to Adidas.

    This would help shield the company from potential tariffs or supply chain disruptions if President Donald Trump’s trade war with China continues to escalate, a fact its competitors also seem to be taking notice of.

    Vietnam may see export orders surging as footwear importers shun China to avoid high U.S. tariffs and choose the Southeast Asian nation instead, local media quoted Diep Thanh Kiet, vice chairman of the Vietnam Leather, Footwear and Handbag Association (Lefaso), as saying.

    “Vietnam’s leather and footwear export can reach $19.5 billion or slightly higher this year depending on the situation,” he said. Vietnam’s footwear exports were worth $14.65 billion last year.

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  • 7-Eleven Outlets In Singapore Are Now Lazada Collection Points

    7-Eleven Outlets In Singapore Are Now Lazada Collection Points

    Lazada and Ninja Van have teamed up with the Singapore 7-Eleven convenience store chain to allow online shoppers to designate any of the nearly 350 stores island-wide as collection points. The collaboration will offer the largest network of collection points around Singapore. The new service debuted at 159 7-Eleven stores this week, with a progressive rollout planned for the rest of the store network by the end of the year.

    Lazada and last-mile logistics provider Ninja Van say the new service eliminates the need for a purchaser to ensure someone is home to receive goods bought online. They can nominate any participating Singapore 7-Eleven store as their delivery point upon checkout.

    “More than 35 per cent of Singaporean households have only one or two residents, with close to 25,000 new dual or single person households forming just between 2016 and last year,” said Crispian Leong, Singapore 7-Eleven head of marketing.

    “Most are working during the day, and many may not find it convenient to receive parcels at their office. With close to 350 participating stores islandwide, we are excited that we can partner with Lazada and Ninja Van to offer this added convenience to consumers’ daily lives and online shopping habits.”

    Ray Chou, country head of Ninja Van Singapore, said the problem will address the high number of failed deliveries its partners encounter, “which is disruptive not only for our customers, but for sellers and delivery companies as well”.

    Users of the service will enjoy free delivery, as opposed to S$1.49 for normal and S$2.99 for express drop-off to their homes.

    Pierre de Bellescize, CEO at Lazada eLogistics Singapore, said partnering with 7-Eleven and Ninja Van will bolster the click-and-collect options the company already offers with SingPost’s PopStations, SPH Buzz Convenience Stores and Parcel Santa Lockers located in Condominiums and others.

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  • Vietcombank files for private issue of 360 million shares

    Vietcombank files for private issue of 360 million shares

    Vietnam’s State Securities Commission has received an application from Vietcombank for a private placement of shares worth over $156.5 million. The commission (SSC) said the country’s third largest bank by assets proposes to make a private issue of 360 million shares, equivalent to 10 percent of its charter capital.

    The lender plans to sell nearly 54 million shares to its strategic partner, Japan’s Mizuho Bank, to ensure it retains its 15 percent stake post dilution.

    It will sell the remaining 306 million shares, or 7.73 percent of its charter capital, to other undisclosed investors.

    The bank has not disclosed the issue price either. Its shares closed at VND58,000 ($2.5) Friday on the HCMC market.

    The State Bank of Vietnam recently gave Vietcombank approval to increase its charter capital by 10 percent to VND39.58 trillion ($1.69 billion).

    The lender has also received approval from its shareholders to make the private placement.

    Vietcombank and other top lenders, including BIDV and Vietinbank, have been struggling to increase their capital to meet international capital adequacy norms.

    The second Basel Accords, or Basel II, prescribe minimum capital adequacy of 8 percent of risk-weighted assets for all financial institutions to cover operational risks.

    In 2016 Vietcombank signed a deal with Singapore sovereign wealth fund GIC Private Limited to sell a 7.73 percent stake. The deal has yet to be consummated, with the bank’s chairman, Nghiem Xuan Thanh, saying they have been unable to agree on a price.

    As a state-owned bank, Vietcombank’s issue of new shares must not be at a price lower than their current market price or a minimum value set by the government.

    However, the price offered by GIC did not meet this requirement.

    If the private issuance of VND3.6 trillion ($156.5 million) is successful, Vietcombank will have the highest chartered capital in the industry of nearly VND40 trillion ($1.74 billion).

  • GM Korea votes to spin off R&D unit

    GM Korea votes to spin off R&D unit

    A GM Korea shareholders’ meeting Friday decided to spin off its R&D and design department, reigniting conflict with its labor union and the state-owned Korea Development Bank (KDB), the automaker’s second-largest stakeholder.  “The plan to establish a dedicated engineering unit, GM Technical Center Korea, was approved during the shareholders meeting,” GM Korea said in a statement.

    However, the decision is guaranteed to be controversial since KDB, which owns 17-percent of GM Korea, intended to vote against the spinning off of R&D and design unit from production but missed the shareholders’ meeting.

    “We received notification of the shareholders’ meeting, but the decision was made in our absence,” an official at the KDB bank said. “We were not able to exercise our veto rights since we weren’t there.”

    GM Korea’s unionized workers occupy the hallway leading to the GM Korea chief executive’s office at the company’s headquarters in Bupyeong District, Incheon, on Friday in an effort to stop a shareholders’ meeting from taking place

    It’s not clear why KDB representatives didn’t attend. KDB said it will be looking into the legality of the meeting.

    On Thursday, KDB released a statement saying it would ask GM Korea’s management to explain fully its decision to spin off the R&D and design center and decide whether to exercise its veto rights.

    The statement was released after a court in Incheon rejected KDB’s request for an injunction to stop the shareholders’ meeting.

    “Although we respect the judgment of the Incheon court, we have deep concerns about GM Korea’s push to spin off [R&D and design] without sufficient explanation or agreement from the interested parties during the shareholders’ meeting,” the bank said in the statement.

    GM Korea’s union claims the spin-off is the first step in a long-term plan to completely halt domestic production.

    KDB has the right to nullify any GM Korea decision to sell more than 20 percent of its total assets, which is supposed to prevent the U.S. automaker from pulling out of Korea or restructuring without the consent of the bank.

    That right, which expired in October 2017, was reinstated after GM and the Korean government reached an agreement in April.

    However, it’s not clear whether that veto right can be applied to spinning off units within GM Korea. There’s even arguments that the newly forming center may not account for 20 percent of the automaker’s total assets.

    The union tried to stop the shareholders’ meeting by occupying a hall leading to GM Korea CEO Kaher Kazem’s office in Bupyeong District, Incheon. The union earlier this week voted in favor of a walkout that will likely take place next week.

    A crisis that led to the shutdown of one of GM Korea’s four plants in Korea in May seemed to have been solved when GM and the Korean government reached an agreement after long negotiations to inject $7.15 billion into the struggling automaker. GM agreed on covering $6.4 billion while KDB put up $750 million. GM agreed to keep the local unit going for at least 10 years.

    But in July, GM Korea announced the spinning off of its R&D center, which will turn Korea into its global strategic development and design center for next generation models.

    Meanwhile, production of compact vehicles will end in 2022 and factories will concentrate on SUVs.

    “The establishment of a dedicated GM Korea Technical Center is an important development in continuing our organization,” said GM Korea CEO Kazem in a letter sent to employees on Monday, adding that the new center would help to “more effectively respond to and secure and execute global engineering projects.”

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