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Tag: China

  • Luk Fook announces interim results

    Luk Fook announces interim results

    The Board of Directors of Luk Fook Limited announced the unaudited consolidated interim results of the company and its subsidiaries for the six months ended 30 September 2016.

    During the Period under review, the Group’s revenue dropped 21.5 percent to HK$5,469,124,000. The continuing weak retail sentiment, together with the relatively high gold price and a relatively high base due to the small scale gold rush in certain months last year, resulted in gold sales falling more than expected.

    Overall gross margin improved by 5.3 p.p. to 28.0% as a result of relatively high gold price and higher gem-set jewellery sales mix. Gross profit therefore decreased by only 3.0 percent to HK$1.5 billion.

    Operating profit decreased by 6.0% to HK$558 million. Profit attributable to equity holders amounted to HK$429 million, a decrease of 7.4 percent. The Group’s overall gross margin significantly improved by 5.3 p.p. to 28.0 percent, as it concentrated on sales mix of gem-set jewellery products driven by a slowdown in demand for gold products and the improved gross margin of gold products as a result of the gold price rise.

    Mr. Wong Wai Sheung, Chairman and Chief Executive of Lukfook Group said, “During the Period under review, the slowdown in economic growth in Mainland China, the changes to the Individual Visit Scheme and the growing popularity of other tourist destinations as a result of currency devaluation, Mainland tourists tended to stay shorter period of time. Consumption expenditure per capita continued to fall with the poor macro-economic conditions and decreased spending power of consumers. ”

    The retail business continued to be the primary revenue source for the Group with its revenue declined year-on-year by 27 percent to HK$4,028,721,000, accounting for 73.7 percent (2015: 79.3 percent) of the Group’s total revenue. With a much improved gross margin, segmental profit in the retail business dropped by 6.7% only to HK$338,921,000 (2015: HK$363,235,000), representing 55.8% (2015: 53.9%) of the total.

    The overall same store sales growth of the Group was down 31.5 percent.

    The Hong Kong market remained to be the key source of revenue for the Group, which the revenue generated decreased by 28.6 percent to HK$3,003,443,000, contributing approximately 54.9 percent (2015: 60.4 percent) of the Group’s total revenue. The Group’s revenue generated from the Macau market decreased by 27.7 percent to HK$665,528,000. Revenue from the Mainland China market decreased by 2.7 percent to HK$1,722,787,000, and accounted for 31.5 percent (2015: 25.4 percent) of the Group’s total revenue.

    During the Period under review, the Group added a net total of 27 Lukfook shops worldwide of which 24 new stores were opened in Mainland China. This raises the global network of Lukfook shops to 1,455. Mr. Wong Wai Sheung, Chairman and Chief Executive of the Group said, “Looking ahead, the Group will maintain its pragmatic and prudent strategies, proactive response to challenges, thereby strengthening our leading position in the jewellery retail market.”

  • Moiselle International losses mount

    Moiselle International losses mount

    Fashion group Moiselle International has strengthened its margins but still posted a loss in the last half year.

    While its loss of about HK$35 million (US$4.5 million) was about 10 per cent more than its loss of about HK$32 million for the same period last year, Moiselle International had a healthier gross profit margin of 79 per cent, up from 76 per cent.

    Revenue declined 18 per cent to $132 million, its unaudited interim results to the end of September show.

    Moiselle says it was hit hard by the harsh operating environment as it derived about 55 per cent of its revenue from Hong Kong and 18 per cent from China. Its retail sales in Hong Kong were affected by the fall in the number of mainland tourists as well as exorbitant rents. In China, the economic slowdown dampened the consumer sentiment.

    The remaining 27 per cent of the revenue was made up by sales in Macau, Singapore and Taiwan.

    To cope with the difficult market, the group rationalised its retail network, introduced stringent cost-control measures, continued cost-effective sales and marketing initiatives such as adopting an online-to-offline business model, introduced exclusive services for high-end customers with a VIP club, and introduced products of a wider price range to broaden its customer base and cater for young Hong Kong customers.

    Meanwhile, the group stepped up its multi-brand strategy by launching fashionable loungewear under a new brand, promoted in the group’s two fashion shows in Hong Kong and Beijing.

    Hong Kong sales fell 18 per cent year-on-year to about $72.3 million. The group continued to negotiate for lower rents for shop spaces, opened shops at prime locations with reasonable rents and closed down underperforming outlets.

    Online initiatives

    Sales in China fell by 31 per cent to about $23.4 million. The group closed some shops and relocated others. It also stepped up its initiatives in eCommerce, such as opening an online store under the Moiselle brand at Tmall this month.

    To reinforce its online marketing efforts, the group worked with key opinion leaders on social media such as WeChat and Weibo.

    China’s measures to advocate frugality spilled over into Macau’s retail market. The group continued to run five shops at the Venetian Macao Resort Hotel and opened a store at the Parisian Macao Hotel. It had two concept stores and four other outlets in the city which generated a combined revenue of about $17.97 million, or about 14 per cent of the group’s revenue.

    Taiwan’s 20 retail stores generated about $13.7 million, about 10 per cent of the group’s total revenue. It opened three more outlets and counters during the half-year.

    Operations in Singapore

    In Singapore, sales fell 22 per cent to about $4.14 million. The group has retained seven stores there.

    At the end of September, the group had 84 stores and counters in China (first- and
    second-tier cities), Hong Kong, Macau, Singapore and Taiwan, down from 90 at the end of March.

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  • Good time for Samsonite

    Good time for Samsonite

    Buoyed by its Tumi acquisition, Samsonite sales soared in the last quarter in every market, even in its weakest link, Asia.

    The world’s largest luggage maker and retailer achieved a net sales boost of 22.8 per cent in the three months to September 30. Its strongest performance was the US where net sales increased by 22.7 per cent to US$765.3 million.

    In Asia, sales rose 13.4 per cent – although excluding figures for Tumi, acquired on August 1 and contributing to two months of sales, only by 3.7 per cent.

    North America sales rose 39.1 per cent, or by 9.8 per cent excluding Tumi, and in Europe by 16.5 per cent, or 9.4 per cent excluding Tumi. And in Latin America it was ahead by 26.2 per cent including and excluding Tumi.

    CEO Ramesh Tainwala said there is no doubt that the global trading environment continued to be challenging, yet despite the headwinds, all of Samsonite’s regions delivered positive constant currency net sales growth during the third quarter of 2016.

    “It is especially encouraging to see organic sales growth picking up in both the US and China, our two largest markets, while Europe and Latin America have maintained their growth momentum.”

    Gross profit increased by 26.5 per cent year-on-year to $419.8 million and gross profit margin increased to 54.9 per cent, from 53.2 per cent.

    On the negative side, operating profit decreased by 16.4 per cent year-on-year to US$71.7 million for the quarter, largely due to acquisition costs. Excluding those, operating profit increased by 23.7 per cent.

    Asia performance

    After a relatively lacklustre first half, both China and India saw net sales growth improve to 8.1 per cent year-on-year in the third quarter of 2016. Net sales in Hong Kong (including Macau) increased by 73.6 per cent, driven primarily by the addition of the Tumi brand. Excluding Tumi, net sales in Hong Kong (including Macau) decreased by 11.5 per cent. The decline was driven primarily by fewer Chinese shoppers visiting from the mainland.

    Japan and Australia continued to record strong year-on-year net sales growth of 29.7 per cent and 13 per cent, respectively. Excluding Tumi, net sales in Japan increased by 7.4 per cent. Also, the group continued to penetrate the emerging markets within the region with notable net sales growth in Thailand and Indonesia of 7.6 per cent and 3.1 per cent, respectively, year-on-year. Net sales in South Korea were up slightly year-on-year on a constant currency basis due to weak consumer sentiment.

    Growth by brand

    Globally, excluding Tumi, sales were driven by the Samsonite (up 10.2 per cent) and Kamiliant (up 576.1 per cent). Other brands including Hartmann (up 58.8 per cent), Lipault (up 342.8 per cent) and Gregory (up 20.4 per cent) also experienced solid net sales growth. The increase was partially offset by an 11.3 per cent decrease in net sales of the American Tourister brand.

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  • Celebrate 2017 with ZALORA’s exclusive Chinese New Year Collection

    Celebrate 2017 with ZALORA’s exclusive Chinese New Year Collection

    Ahead of the annual Spring Festival celebration, ZALORA, Asia’s online fashion destination, launches its third Chinese New Year collection with a bigger range of modern festive wear for the fashion forward women. With over 200 styles, there are plenty of options available to suit different preferences and styles. Be fashion-ready for the upcoming holiday celebration with an early festive shopping at ZALORA.com.

    ZALORA exclusive 2017 Chinese New Year collection exudes femininity with a focus on soft and contemporary aesthetic that is driven by a sense of romantic nostalgia, a departure from previous year’s bold and vibrant collection. Entitled Modern Romantics, the exclusive collection is filled with light and delicate pieces adorned with details like layers, ruffles and flare sleeves on soft shapes and modern silhouettes. Sheer chiffon in powder pastel shades and delicate feminine fabrics like soft laces are key fabrications of the collection.

    Featuring a mix of jumpsuits and rompers in spring floral prints, off-shoulder dresses, and versatile separates including asymmetrical skirts, shorts with scallop hem detail and all-time favourite peplum tops, ZALORA customers will have plenty of options to choose from for their festive wardrobe. In addition to the auspicious red, the colour palette of this year’s Chinese New Year collection is a combination of classic neutrals, shades of blue as well as one of the season’s hottest colours, dusty pink.

    Rayne Reed, Head of Private Labels of ZALORA Group commented: “ZALORA prides itself in dressing

    the modern women for any occasion including festivities like Chinese New Year. We believe our collection gives our customers the chance to celebrate cultural heritage in a modern way. We want to empower women to express their individual style as each piece is beautiful and versatile. ZALORA’s Chinese New Year collection represents the latest trends, and up-to-date styling while remaining true to the spirit of the festive season.

    When designing the collection, we were inspired by the mood of Chinese watercolour paintings, the style of traditional paper cutting, and romantic florals. We included on-trend details such as light layers, romantic ruffles and lace into modern silhouettes. The iconic Qipao shape is reinterpreted through updated cuts and feminine fabrics – metallic lace as an example – to bring a sparkling freshness to the collection. Exclusive prints, metallic lace and auspicious colours play a major part in setting the mood of the season, including jewel tone reds, glimmering gold, powder pastels.

    Our style savvy customers can find contemporary festive fashion conveniently at ZALORA with just a few clicks and with our speedy delivery, they can start wearing their new outfits in no time!”

    The ZALORA 2017 Chinese New Year collection is available on sale from today exclusively in six markets: Singapore, Hong Kong, Taiwan, Malaysia, Indonesia and the Philippines. Prices range from S$29 to S$79. Customers celebrating Chinese New Year can shop their festive outfits anytime, anywhere exclusively at www.zalora.sg/chinese-new-year/ and on the ZALORA mobile app.

  • Shanghai Disney Resort to take wings

    Shanghai Disney Resort to take wings

    Shanghai Disney Resort will open two retail stores at the city’s Hongqiao International Airport next year.

    Both stores will be at the domestic departures of the airport’s T2 terminal to allow travellers to take home merchandise collections more conveniently, says the resort.

    It already has a 3000 sqm World of Disney Store at Disneytown that includes specialty shops and a Spoonful of Sugar confectionery. There are more than 7000 merchandise items including Disney apparel, toys, stationery, lifestyle products, collectibles and gifts. Resort director of merchandise David Koo says retail products will be updated or expanded, based on ongoing Chinese consumer research and insights.

    The most popular products at the resort include a Mickey and Minnie foldable-fleece collection that can be worn or folded into a back cushion. Another bestseller is the Storybook Chocolate Set.

    Koo says the resort will offer special products soon for the coming Chinese New Year, on January 28.

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  • Hard Liquor Helps E-Commerce Titans Take China’s Consumer Pulse

    Hard Liquor Helps E-Commerce Titans Take China’s Consumer Pulse

    Predicting the changing tastes of China’s consumers is becoming easier thanks to the country’s e-commerce giants, who monitor sales that can exceed US$17 billion in a single day.

    The country’s second-biggest web-based retail platform, JD.com Inc, already has dozens of new indexes tracking sales of products from liquor to appliances. Larger rival Alibaba Group Holding Ltd plans to publish its own spending gauges in coming months.

    Their data is vital to large global companies like Starbucks Corp and Wal-Mart Stores Inc that are looking for insights into what’s hot among China’s billion-plus consumers. Online shopping indexes reflect millions of transactions daily, whereas traditional consumer surveys can only test a tiny sample.

    “The ability to analyse and understand trends in online consumption has never been more important or more valuable,” said James Huang, big-data analytics director for the finance unit of Beijing-based JD.

  • Despite recent setbacks, LeEco has big retail ambitions in China

    Despite recent setbacks, LeEco has big retail ambitions in China

    LeEco may have had some high-profile setbacks in recent weeks, with news coming from the company that it had overextended itself financially in some areas, but the Chinese electronics maker and service provider is still doing ambitious things in retail, starting with a new flagship store it opened at its Beijing headquarters earlier this year.

    We toured the store, and spoke to LeEco VP of retail Steve Zhao about some of the inspiration for the retail space and its intended purpose. A significant portion of Chinese electronics shoppers do their buying online, so the focus is on building a store that provides experiences and examples of how LeEco devices and services might work for a consumer in their daily lives, rather than on stocking shelves with as much inventory as possible.

    From flooring and furniture materials to layout and staff, the LeEco store feels like an Apple Store, which isn’t surprising given its aims and intent. But this is also only the first iteration of what’s to come; Zhao told me that their first major retail location in a shopping centre will dwarf the current flagship in size and scope, with a launch planned for sometime later in 2017.

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  • AirAsia starts flying Philippines-Taiwan

    AirAsia starts flying Philippines-Taiwan

    The low-cost carrier’s Philippine subsidiary started flying direct from Manila to Taipei on 21 November, and then on 25 November it commenced flights between Cebu and Taipei.

    “We are aiming to go further across Asia by strengthening AirAsia’s presence in Taiwan. Today heralds… brighter and much closer ties between two countries to improve trade and tourism,” said Philippines AirAsia’s CEO, Dexter Comendador. He added that the new services would cater to “travellers, overseas Filipino workers and Taiwanese tourists”.

    The new Manila-Taipei route will operate daily with late night flights, while the Cebu-Taipei service will run three times a week (Wednesdays, Fridays and Sundays) with early morning departures from the Philippines.

    The AirAsia Group also operates direct flight to Taipei from Kuala Lumpur and Kota Kinabalu.

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  • Global Blue collaborates on Chinese VAT refund scheme

    Global Blue collaborates on Chinese VAT refund scheme

    Tax-free specialist Global Blue has partnered with the Bank of China to launch a VAT refund service to overseas tourists in Shanghai.

    Travellers in Shanghai are now able to save 9% on their purchases as China has introduced its first tax-free shopping scheme for foreign visitors. The scheme will be among the first of its kind in mainland China, allowing eligible travellers to reclaim the VAT imposed by the Chinese government, when making purchases within the country.

    For travellers, eligibility for VAT refunds will be based on a set of simple criteria. These include possession of a non-Chinese passport (or specified ID from Hong Kong, Macau and Taiwan), receipt of purchase showing spend of over RMB500 ($72) in one store on the same day, and proof that the traveller has remained in mainland China for no more than 183 consecutive days.

    If these eligibility criteria are met, merchants simply have to provide a VAT invoice, then issue the shopper with a Tax Refund Application form provided by the Chinese Government, which includes the description of purchased goods and the traveller’s details.

    Global Blue will work with Bank of China to encourage local retailers to sign up to the scheme. It will also provide licensed retailers with ongoing training to sales staff and consult on the processes surrounding the issuing and completion of VAT refunds.

    Already almost 200 stores in Shanghai have already signed up to the tax-free shopping scheme, including major department stores [e.g. Takashimaya, Pacific, Parkson and Bailian (Group) Department Stores], luxury brands (e.g. Chanel, Hermes, Tiffany and Louis Vuitton), high street names (e.g. Zara, Bershka and Marks & Spencer) and local retailers (e.g. Silk King, Lao Feng Xiang Jewellery and Chow Tai Fook Jewellery).

    Global Blue CEO Jacques Stern commented: “We are excited about launching this partnership with Bank of China, a true market leader in the international banking space. The VAT refund service represents a great opportunity for merchants in Shanghai to attract high-spending international travellers and encourage higher spend in-store. For visitors to the city, this scheme will bring obvious benefits, allowing them to shop and spend with leading Chinese merchants for less.”

    Bank of China vice president Mr. Wang added: “This is a very exciting period for Shanghai’s retail sector and we are confident the introduction of these services will be a powerful tool in helping businesses connect with valuable international shoppers. Global Blue’s experience of promoting and supporting Tax Free services around the world make it a valuable partner and we look forward to a long and happy working relationship.”

    In addition to merchant support, Global Blue will manage marketing activities inside and outside of China to increase traveller awareness of the VAT refund scheme. Promotional channels will include Global Blue’s website, app and a wide range of traveller focused collateral including SHOP Maps and point-of-sale materials. The partnership will also see Global Blue collaborating closely with local governments’ tourism departments.

    In addition to VAT refund services in Shanghai, Global Blue has also named Bank of China as a banking refund partner for returning Chinese shoppers across the country. Bank of China will operate refund counters from 10 branches throughout China, making it easier for Chinese consumers to claim overseas refunds back home.

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  • Sa Sa International sees fall in profits amid drop in tourism

    Sa Sa International sees fall in profits amid drop in tourism

    In the period ending September 30th 2016, Sa Sa International’s turnover reached HK$3.63 bn (€442.2 mn), a 4% drop from HK$3.78 bn (€460.5 mn) compared to last year’s results.

    Sa Sa totalled profits of HK$96 mn (€11.7mn), indicating a 37.3% drop from last year’s HK$153 mn (€18.6 mn) during the same period.

    Purchasing patterns

    Despite a continued reduction in tourist footfall, the total number of transactions by local and mainland Chinese consumers increased by 0.2% and 4.4% respectively.

    However, the average sales value per transaction saw a slump, decreasing by 6.3% for purchases made by local consumers and 6.6% for tourists. This was reflected in the leading cosmetics company’s retail sales in Hong Kong and Macau, which fell by 3.6% from HK$3 bn (€365.5 mn) to HK$2.9 bn (€353.3 mn).

    The Hong Kong market has witnessed changing consumer attitudes towards product selection. As the Hong Kong dollar strengthened and the Chinese Yuan deteriorated, these have also been cited as having a detrimental impact on Sa Sa’s interim results.

    To reflect the evolving marketplace, Sa Sa focused on adapting to consumer demands by speeding up product launches, combatting lengthy product cycles with shorter alternatives, reducing price points of on-trend lines and creating innovative marketing displays.

    The shopping experience

    Sa Sa is currently concentrating on increasing sales by bringing these efficient product cycles to market through facilitated CRM processes, online marketing and online-to-offline (O2O development.)

    The O2O landscape has been developing rapidly throughout APAC in recent years. As a result, Sa Sa hopes to maximise this opportunity to improve the shopping experience for its customers through creating online operations for digital marketing that connect with its physical stores.

    “We…remain resolute in our belief that we can further strengthen our competitiveness in the coming years and convert difficult challenges into golden opportunities, such as those offered by O2O, by changing consumer behaviour and by the growing affluence of the less developed regions of Mainland China” said Dr Simon Kwok, BBS, JP, Chairman and CEO of the Group.

    This year, the cosmetics brand launched a new mobile app to reflect the market’s preference for mobile over desktop usage. Sa Sa collaborated with online retailer Kaola to complement this release and existing partnerships with T-Mall, JD.com and suning.com.

    It used these channels to promote its range of Korean products, which it produced to reflect the popularity of the K-beauty and K-pop influences trending through APAC and the wider markets. As a result, Sa Sa saw its sales increase by 51.5% in Hong Kong and Macau, with its own brands and exclusively distributed products dropping by 2.5% from 41.3% to 38.8%.

    Consumer support

    On 21st November, two days before the interim report was released, Sa Sa International announced it had been presented the award at the “World’s Excellent Brands Awards 2016-2017” by China Media Network (CMN).

    The prestigious accolades are given to those brands that demonstrate an awareness, recognition, leadership and representativeness of tourism-related global brands by an evaluation committee and selection of tourists.

    Following public voting and evaluation, Sa Sa received the “World’s Excellent Brands Awards” and has previously been awarded the “Most Popular Hong Kong and Macau Brand” by CMN.

  • Bluebell Group invests in designer startup

    Bluebell Group invests in designer startup

    Bluebell Group has invested in a new luggage design house Ookonn, which takes inspiration from a hat box, selling direct to consumers online.

    Ookon is the brainchild of Anson Shum, who conceived a style and design based on an old-fashioned, round hat box.

    At the time, Shum was working in a marketing and communications role with Bluebell Group.

    “When I resigned last year, I told the company of my plan to start my own label,” Shum said in an interview.

    ookonn-lugguage

    “They were so nice to me, and asked if there was any way we could work together. I showed them my business plan, and they offered to coach and mentor me.

    “Eventually nearing the end of my employment period, I did a formal presentation in front of all the shareholders. And the week after, I was told that Bluebell wanted to invest in Ookonn. It was a surreal moment. I think they decided to invest because of the product, the business model, and obviously the fact I have built a good relationship with them.”

    Shum and his business partners sell the Ookonn bags online, where they cost upwards of HK$2280 for basic models.

    “Online business is more relevant to my target audience. Ookonn is a lifestyle brand targeting millennials. While we get customers from different age groups, the feeling and foundation of the brand is for a younger audience in their early 20s to early 30s. While online is important, it is only one part of the business model, since we are launching in Hong Kong and China. But for other markets, perhaps we can collaborate with several bricks-and-mortar multi label stores,” said Shum.

    He describes his case designs as “a bit more playful” than most common luggage ranges.

    ookonn-lugguage-1

    “I’ve been working in fashion and luxury for 12 years, and have had plenty of opportunities to travel. But while I can find a lot of beautiful options for clothes and accessories, there are not that many for luggage. Most luggage brands in the market are business oriented. So I wanted to see if I could create a luxury brand that would generate excitement.”

    The bags come with a variety of options for handles, covers and belts and can be customised with the buyer’s chosen monogram.

    The bags come from Transport Safety Authority locks, wheels which turn a full 360 degrees and a light polycarbonate shell.

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  • Cafe de Coral grows revenue, profit, outlets

    Cafe de Coral grows revenue, profit, outlets

    Total revenue for the half-year to the end of September rose by 4.3 per cent to HK$3.89 billion (US$501.5 million) for restaurant and catering group Cafe de Coral Holdings.

    Net profit, at HK$232 million, was up 11.8 per cent, while profit attributable to shareholders rose similarly to HK$3.89 billion, according to its interim results.

    With stronger momentum in the fast-casual and casual-dining sector, the group says its quick-service restaurant (QSR) and institutional catering business continued to achieve encouraging results and steer further expansion.
    “Mainland China business persistently improves its profit margin with a lower break-even point, which has laid a solid platform for expansion,” says the group. “The positive results demonstrate not only the capable stewardship of our new management team, but also the successful completion of the group’s succession plan.”

    “Encouraging” revenue and same-store sales growth resulted in a robust and stable performance for the group’s (QSR) and institutional catering business.

    In China, revenue stabilised for its fast-food business, thanks to updated menus.

    Overall, the group’s QSR and institutional catering business in Hong Kong reported solid revenue gains, up 7.7 per cent. Same-store sales under the Cafe de Coral fast-food and Super Super Congee & Noodles grew 5 and 4 per cent respectively. As of September 30 the group had 288 QSR and institutional catering outlets, including 160 Cafe de Corals, 47 Super Super Congee & Noodles shops and 79 Asia Pacific Catering outlets.

    Strategic tenancies

    To speed up its expansion of the Cafe de Coral network, the group took advantage of the softer leasing market to take up tenancies at strategic and prime locations. Four outlets were added, with 11 more set to open. Seven more Super Super Congee & Noodles shops were added, with eight openings scheduled.

    Asia Pacific Catering renewed all major contracts while Luncheon Star continues to be the leading provider for schools.

    For its fast-casual and casual-dining sectors, the group saw 14.4 per cent revenue growth. Its catering-inspired Shanghai Lao Lao brand has evolved into a popular chain with eight outlets, says the group. Two of the outlets opened during the six months, with four more scheduled.

    Encouraged, the group says it will aim to scale up Mixian Sense to provide another lucrative revenue stream.

    Meanwhile, it is rejuvenating its Western-style brands, The Spaghetti House and Oliver’s Super Sandwiches. Decors and menus are being revamped.

    Launched last year, its Japanese and Korean-style franchise restaurants are still in the investment stage.

    Non-performing outlets in eastern and southern China have been closed, plus the management team has been localised as well as menus being revamped.

    Same-store sales from the fast-food business grew by 1.2 per cent with “remarkable profit improvement” on the mainland even after excluding the effect of new VAT rules and despite the segment revenue falling by 16.3 per cent. This was mainly a result of the strategic closure of non-performing stores.

    “While the imminent outlook is less than promising, the group remains confident its businesses will continue to fare reasonably well. Fortunately, our core QSR and institutional-catering segments, in particular, are relatively resilient to downturns.”

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  • More shoppers spend less in Black Friday

    More shoppers spend less in Black Friday

    More shoppers spent less on Black Friday in the US – and more was spent online than ever before.

    Those are the key take-outs from the three day long shopping extravaganza, which is being followed up by Cyber Monday giving Americans a second chance at scoring shopping bargains.

    But perhaps the biggest trend this year was how Black Friday was adopted internationally – even as far away from America as Vietnam, shopping centres were packed with bargain hunters, lured by billboards promising as much as 50 per cent off stock.

    According to data from the National Retail Federation, more than 154 million US consumers shopped last Friday, spending an average $289 – $11 less than last year. Gifts accounted for $214 of that spend.

    “It was a strong weekend for retailers, but an even better weekend for consumers, who took advantage of some really incredible deals,” said NRF president and CEO Matthew Shay.

    Most of the shopping occurred Friday, perhaps reflecting the limited stock of some retail deals.  The NRF said of the consumers who went to physical stores, 75 per cent shopped on Friday, 40 per cent on Saturday and 17 per cent on Sunday.

    And the data showed a continuing migration from offline to online. Last year, 103 million people shopped online and 102 million in stores. This year more than 108 million shopped online and 99 million in stores.

    Adobe released data based on anonymous tracking of 22.6 billion visits to retail websites, showing more than $5 billion was spent online over the holiday weekend – and a record $3.34 billion on Friday. Mobile devices accounted for $1.2 billion of the weekend sales.

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  • Jumbo Seafood grows profit 17.9pc

    Jumbo Seafood grows profit 17.9pc

    Restaurant group Jumbo Seafood has reported a full-year net profit of S$15.7 million (US$11 million) – up 17.9 per cent from the previous year.

    Overall group revenue grew 11.4 per cent to S$136.8 million, attributed mainly to revenue contributions from its new seafood outlets in Shanghai as well as an overall increase in revenue from its other restaurants.

    Jumbo Seafood executive chairperson/CEO Ang Kiam Meng says the group managed to increase yields despite the ongoing challenges of the industry.

    “We look forward to further improving our financial performance by streamlining our operations to raise productivity and efficiency while lowering operating costs.”

    In October, Jumbo opened its fifth Ng Ah Sio Bak Kut Teh (pork ribs soup) outlet in Singapore.

    Jumbo is a multi-concept dining and F&B group with a network spanning Singapore, China and Japan. It also provides catering services, and in Singapore sells packaged sauces and spice mixes.

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  • Yum China seeking delivery deal

    Yum China seeking delivery deal

    Fast-food giant Yum China Holdings is looking at buying food-delivery services firm Daojia.com.

    Discussions are at an early stage, but a deal could be worth up to US$200 million, as reported.

    Established in 2010, Daojia.com focusses on online food orders and delivery services targeting the middle class urbanites in 10 Chinese cities. With a 3000-strong logistics team, it works with more than 6000 restaurants.

    Food-delivery apps are becoming more popular in China with services being offered by Baidu Inc’s Waimai, Alibaba Group Holding’s Meituan and Tencent Holdings’ Ele.me.

    China’s second-largest eCommerce fim JD.com and Macquarie Capital were investors in a $50 million round of fundraising by Daojia two years ago.

    Yum China was spun off from US-based fast Yum Brands Inc 12 months ago. The company’s brands include KFC and Pizza Hut.

    CEO Micky Pant says that while only 10 per cent of the company’s sales are delivered, deliveries are growing at double digits and will be an important driver of growth.

    Yum China secured a $460 million investment from Primavera Capital and Alibaba affiliate Ant Financial before its spin-off. Yum China already is the biggest user of Ant’s Alipay mobile payments service. The restaurant company is also investing in its mobile ordering system and loyalty programs.

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