Bossini International has warned the group is expected to record a loss attributable to owners of between HK$23 million and $28 million (US$2.93 million to $3.6 million) for the six months to December – roughly double the loss of the same period last year. Chairman Bess Tsin said in a stock exchange filing that the loss was largely due to “unseasonal warm winter weather and weak consumer sentiment in several core markets” where the group operates.
The company said the estimate was based on a preliminary assessment of the company’s accounts for the period and details would be confirmed in late February, when the company announces its annual results.
CIMB Thai Bank PCL’s unaudited con-solidated net profit for the year ended Dec 31, 2018 (FY18) fell 98.2% year on year to 6.9 million baht (RM883,732), dragged down mainly by higher income tax expenses. Profit before tax decreased 44.5% to 271.2 million baht year on year, mainly due to a 9.6% increase in operating expenses and lower net fee and service income and other income of 7.0% and 2.6% respectively. This was offset by a 5.3% growth in net interest income and a 2.6% decline in provisions.
President and CEO Kittiphun Anutarasoti said CIMB Thai group’s consolidated operating income, on a year-on-year basis, increased 2.9% from 2017 to 13.54 billion baht from higher net interest income of 5.3% on the back of loan expansion and higher interest income on investments.
Net interest margin over earning assets stood at 3.71% in 2018, compared with 3.89% in 2017 as a result of lower yield on earning asset.
As at Dec 31, 2018, CIMB Thai’s total gross loans stood at 227.8 billion baht, making an increase of 6.9% from Dec 31, 2017.
Deposits stood at 234.3 billion baht, an increase of 6.5% from at the end of December 2017. CIMB Thai said the modified loan-to-deposit ratio was higher at 97.2% against 96.8% as at Dec 31, 2017.
The gross non-performing loan (NPL) stood at 9.9 billion baht, with a lower gross NPL ratio of 4.3% compared with 4.8% as at Dec 31, 2017. The lower NPL ratio was due to more efficient risk management policies, improved asset quality management and loan collection processes as well as the sale of some NPLs in 2018.
Thailand franchise consultancy Gnosis Co expects a healthy market for franchises in the country. Gnosis MD Sethaphong Phadungpisuth said more than 50 chains from both local and international brands are exploring the market this year following measures to ease regulations on the part of the Business Development Department.
“The Thailand franchise market will become more active this year. We expect the overall number of new franchise brands both from abroad and the domestic market that will open their franchise in Thailand this year to increase by 10 per cent to about 630 brands”, he said.
According to Gnosis, some brands have chosen Thailand as a springboard to other Asean countries, in particular Myanmar and Laos.
Among those diverse brands set to start operations in Thailand this year include Taco Bell, The Edge Learning Centre, and Singaporean hygiene and disinfection products firm Sureclean. Additionally the number of Taiwanese milk tea chains continues to increase in the territory.
Franchise business in Thailand is estimated to be valued at THB250-300 billion (US$7.84 billion).
Vietnam’s five most valuable brands were worth a combined $8.1 billion in 2018, up $2.3 billion or 39 percent against 2017, Brand Finance estimated. The most valuable brand was military-owned mobile network Viettel at $2.8 billion last year, up 9 percent from $2.57 billion 2017, said the UK brand valuation company. The 47th most valuable telecom brand in the world has operations in Laos, Cambodia, Haiti, Mozambique and Peru.
In second place was Vinamilk, the country’s largest dairy company by far, which was worth $1.9 billion, up 39 percent. State-owned Vietnam Posts and Telecommunications Group (VNPT) was in third place after increasing its brand value by 84 percent to $1.34 billion.
In fourth and fifth places were Vinhomes, the real estate subsidiary of Vietnam’s largest private conglomerate Vingroup, and Sabeco, Vietnam’s biggest brewer, at $1.18 billion and $950 million respectively.
Samir Dixit, CEO, Asia-Pacific of Brand Finance, said: “Branding is the most critical asset of every business. It is difficult to predict the performance and behavior of customers, but the only thing that remains a constant is the brand.”
Brand Finance’s valuation criteria uses several metrics. The value accorded to each brand is a summary of its financial strength. Each brand also gets a brand rating, which indicates its strength, risk and future potential relative to its competitors.
Courts Asia is to close one of its Indonesian megastores. “The group decided to close the Courts Bumi Serpong Damai (BSD) City Megastore in Tangerang as it is historically not profitable and the group does not want to incur the high rental costs over the remaining lease term,” the retailer said in a statement. Courts Retail Indonesia will also buy the property it currently leases which houses the Kota Harapan Indah (KHI) megastore.
Both properties were leased from Garwita Sentra Utama. Courts will forfeit a security deposit of Rp14.38 billion (S$1.379 million) and pay a penalty for early termination of the BSD site of Rp 38.7 billion ($3.6 million). The Singapore company will pay Rp97.56 billion (S$9.36 million) to purchase the other site.
The KHI store has a total gross floor area of 21,800sqm, with about 24 years remaining on the lease.
Courts said in its statement that the property reorganisation was part of an ongoing review of its store network.
Having taken ownership of the KHI building, the company can consider options including downsizing its megastore and repurposing the remaining space for other commercial uses.
Property prices in the country are likely to continue their downtrend for at least the first half of the year (1H19), despite improving consumer sentiment and proactive government policies announced in the Budget 2019, online property company PropertyGuru said. It said in a statement that this is validated by the company’s Market Index, which shows that asking prices of homes in Malaysia continue to show a 2.3% drop year-on-year.
The Market Index is an analysis of over 250,000 property listings aggregated and indexed. PropertyGuru said its online portal, which has over 1.3 million Malaysians searching for properties, has seen a surge of interest in the following property hotspots identified in the various states of Kuala Lumpur, Selangor, Penang and Johor.
While there has been a dip in asking prices, it said the demand for properties in Kuala Lumpur is still strong with the most popular and highly searched areas being Bangsar, Mont Kiara and Cheras.
It said the property types that are most searched in these three areas are condominiums, followed by apartments and townhouses, noting the reason for high-rises being the most preferred property type in Kuala Lumpur may be due to the more affordable entry price points.
In terms of the price bracket, PropertyGuru said many are searching below the RM300,000 bracket which is not feasible for the locations that are preferred, since many of these locations are priced above the affordability range.
The company said demand for properties in Selangor continues to be high despite declining prices, with properties in Petaling Jaya, Shah Alam, and Subang Jaya topping the list in this order.
It said properties that are most searched for in these areas are condominiums, followed by apartments and two-storey terrace houses, with many looking at transit-oriented development properties.
Taiwanese bubble-tea brand Chun Yang Tea is launching its first store in Canada. With operations across Taiwan as well as in Mainland China, Hong Kong, Macau and Malaysia, the brand is now planning two new store locations in Toronto and one in Vancouver. While the Canadian market has been judged as saturated for bubble-tea retailers, Chun Yang claims its product is authentic and traditional, offering beverages made without any artificial milk powder to achieve a more natural taste.
So far no information has been released as to exact launch dates, although the brand’s website claims the stores are “coming soon”.
Fast Retailing Group has reported a decline in revenues for Uniqlo Japan against broader successes internationally in its first quarter. A sharp profit decline on sluggish sales of seasonal ranges during a warm winter in Japan has given rise to disappointing results in the Uniqlo brand’s home territory. Uniqlo Japan posted revenues of ¥246.1 billion (US$2.27 billion), a decrease of 4.3 per cent year on year, with first-quarter profit before taxes of ¥111 billion ($1.03 billion), down 5.7 per cent; and profit attributable to owners of the parent firm of ¥73.4 billion ($678.4 million), down 6.4 per cent. Online sales expanded favourably in the market, however, showing an increase of 30.9 per cent.
Uniqlo International saw an operating profit far exceeding that of Uniqlo Japan, with revenues at ¥291.3 billion (2.69 billion) up 12.8 per cent. Uniqlo Greater China and Uniqlo South Korea both reported higher sales and profits despite the dampening effect of the warm winter. Uniqlo Southeast Asia & Oceania continued to report significant revenue and profit gains.
The report said Fast Retailing’s consolidated business estimates for the financial year ending August 31 remain unchanged from the initial forecasts released last October, predicting an 8 per cent expansion in revenue and 14.3 per cent increase in operating profits.
Hong Kong-listed cosmetics retailer L’Occitane International is to buy privately owned beauty and skincare brand Elemis for about US$900 million. “This is L’Occitane’s largest acquisition since listing and a major step forward in building a group of premium beauty brands,” said CEO Reinold Geiger in a statement.
The move is part of a strategy to boost L’Occitane’s sales in the UK and the US. In a statement, the company said the the deal will allow Elemis to expand into new markets and boost L’Occitane’s business in markets in which it is not so strong as yet.
L’Occitane has agreed to buy the Elemis brand from Steiner Leisure, which owns the US business, and Nemo UK, which owns the European business.
The deal, to be funded by cash and bank loans, will be closed in the first quarter of this year.
L’Occitane, which listed in Hong Kong in 2010, currently has 3285 outlets in 90 countries, including 1555 stores it owns and operates directly. Last financial year it achieved a profit of €141 million on sales of €1.3 billion.
Starbucks has opened its largest Southeast Asian location in Bali. The 20,000sqft Starbucks Dewata Coffee Sanctuary builds on 16 years of innovation in design, customer experience and community impact for the brand in Indonesia, where there are 370 Starbucks outlets nationwide. Customers can enjoy Starbucks handcrafted core and Reserve beverages within the store’s locally-inspired design that celebrates Indonesian tradition.
The store pays tribute to the role that Indonesia, the fourth largest Arabica coffee-growing region in the world, plays in the Starbucks business. Sumatran coffee has been a staple offering at Starbucks since 1971.
“We began sourcing Indonesian coffees more than four decades ago and have always been struck by the sense of community and care for the coffee journey at every step,” said Starbucks Coffee Company CEO Kevin Johnson.
View the gallery of the new outlet below (8 images) :
Bali Dewata 4
Bali Dewata 3
Bali Dewata Store 2
Bali Dewata Store 4
Bali Dewata Store 8
Bali Dewata Store 9
Bali Dewata 1
Bali Dewata 2
“The Starbucks Dewata Coffee Sanctuary amplifies our passion for the coffee journey, our ongoing commitment to Indonesia’s rich coffee culture, and our tireless pursuit of fostering moments of connection between our partners and customers. The Coffee Sanctuary marks the 10th Starbucks Reserve Bar store in Indonesia, one of 185 stores around the world, with the majority in Asia. This is Starbucks at its best, and we are proud to open the doors of this unique experience in one of Southeast Asia’s most dynamic markets.
Visitors enter the store through an arabica coffee farm, try their hand at coffee bean de-pulping and washing during harvest season, dry and rake green coffee beans, visit budding seedlings in the nursery, take in the store’s locally-inspired design featuring traditional Balinese craft and Indonesian art, and enjoy the more than 100 Dewata-exclusive handcrafted beverages, food and merchandise, including the Lavender Latte.
The Starbucks Dewata Coffee Sanctuary store’s expansive interior is inspired by traditional Balinese houses with free-flowing, connected rooms designed to promote discovery from one space to the next.
“Bali has an envied reputation as one of Asia’s top travel destinations and Indonesia is one of coffee’s most extraordinary coffee origin regions,” said Starbucks Indonesia director Anthony Cottan said.
“So we’re excited to invite customers here to ignite their senses and explore the seed-to-cup coffee journey at this unique Coffee Sanctuary. We’re very pleased to further strengthen the longstanding partnership between Starbucks and [licensee] PT Sari Coffee Indonesia with this truly one-of-a-kind Starbucks store, inspired by and filled with the finest examples of Indonesian art, design and craftsmanship.”
To support the future of coffee, Starbucks Indonesia has committed to donating 100,000 coffee seedlings to farmers annually.
A “plethora of paints and fabrics that radiate warmth” are at the core of the redesigned Shanghai Tang Pacific Place boutique. Design house Stefano Tordiglione Design (ST) oversaw the executive design and project management of the revamped 154sqm space, which opened last November. The project took six months to complete. Shanghai Tang is a privately owned, modern luxury brand which fuses current fashion design concepts with Chinese-inspired elements steeped in history. It is renowned for its use of bold colours, often contrasting, in fashion and homewares.
Taking the lead in fine tuning the selection of materials, fabrics and colours, the design team created what creative designer Carlotta Turini describes as “a multi-sensory shopping experience to mirror the richness and beauty of Chinese culture”.
Shanghai Tang Pacific Place 2
Shanghai Tang Pacific Place 1
Shanghai Tang store
Among the features are the changing rooms and home section, with the use of famed Jim Thomson wallpapers, giving the design an ‘Asiatic flavour’, with alternative wall coverings and racks fine tuned to create a sense of comfort within the shopping centre.
The womenswear area has curved walls and a soothing beige fabric contrasted with bright paint, while the menswear area is elegant, warm and cozy, designed with dark brown wood and clean lines.
These areas are united through a relaxed central seating area featuring art deco furniture.
“To promote fluid movement through the space, the walls have niches features to provide attractions to the eye throughout the corridor as customers move between retail sections,” says Turini.
The team had to interpret the original design drawings, developing a unique concept that is now demonstrated throughout the store.
Efficient project management was vital to the success and on-time completion of the Shanghai Tang Pacific Place redesign.
In the week leading up to Christmas 2018, Nike Inc. said it has recruited a new leader for its Converse brand, naming G. Scott Uzzell as its president and chief executive officer, to helm the heritage sneaker company in the New Year. Uzzell replaces Davide Grasso who has decided to retire at the end of this calendar year. He will report directly to Michael Spillane, President, Categories and Product, Nike Inc.
Effective January 22, 2019, Uzzell’s new appointment comes at a time when the brand is setting “the stage to move into new spaces by reconnecting to its heritage in sport,” according to a press release in December from Nike Inc.
“Scott’s unique blend of experience driving both strategic business growth and strong brand development is well-suited to help unlock the full potential of the Converse Brand and lead its next phase of growth globally,” said Michael Spillane, President, Categories and Product, Nike Inc.
Uzzell comes to Converse from The Coca-Cola Company, where he most recently served as President, Venturing & Emerging Brands Group (VEB).
As head of Coca-Cola’s VEB Group, the consumer goods executive led a portfolio of high-growth brands for The Coca-Cola Company, including Honest Tea, ZICO Coconut Water, Fairlife Milk and Suja Juice.
Uzzell began his career within sales and marketing for companies such as Procter & Gamble, Coca-Cola and Nabisco, before returning to Coca-Cola in 2000 in the Strategy & Planning division. Since then, he has held a number of leadership positions across its business including McDonald’s U.S. Division, Global New Business Development, Global Marketing, ZICO and VEB.
In addition, he is a member on the boards of State Bank and Trust Company; Fairlife and Suja Juice Company, as well as being a member of the Florida A&M University Foundation Board and is part of the Executive Leadership Council (ELC).
Founded in 1908, Boston-based Converse is today owned by Nike. Converse shoes are sold globally in over 160 countries.
LOTS Wholesale Solutions, a part of the US$ 50 billion Charoen Pokphand Group and a wholly owned subsidiary of Siam Makro Public Company Limited from Thailand, has unveiled its third wholesale distribution centre in India at Ithum, Sector 62, Noida. In 2018, the company inaugurated their stores at Netaji Subhash Place and Akshardham. The three stores, opened within a span of seven months, will cater to a total of 1,40,000 registered customers in Delhi NCR.
LOTS Wholesale Solutions store in Noida is the first step towards the company’s commitment of investing Rs 250 crore in the state of Uttar Pradesh. The expansion plan will witness the opening of more stores in the state in the coming years.
The new store in Noida is spread over an area of 50,000 sq.ft. and will provide its customers with more than 5,500 assorted products in food and non-food categories. It will cater to over 40,000 business customers with a diverse clientele including kiranas, hotels, restaurants and caterers (HoReCa), corporates, MSMEs and institutions such as government agencies, educational institutes and hospitals from the catchment area.
In addition to the announcement of its third store, LOTS Wholesale Solutions also launched its own brands Basic Plus and PlusMo with an aim to provide best quality products at economical prices. The first two product categories introduced under these brands are bakery items and home-cleaning.
Talking about the launch of the third store in India, Tanit Chearavanont, Managing Director, LOTS Wholesale Solutions said, ‘Following our values of victory, we have outperformed ourselves and unveiled the third store within a span of seven months. As promised, we delivered our two stores in 2018. Uttar Pradesh was an obvious choice for expansion after Delhi NCR, owing to the proximity to the enormous market opportunity in the state. It fits well within our cluster strategy for the business in India. Aided by government support, we aim to establish an environment of mutual growth for farmers, traders and our business in the state. We will work directly with them to establish a strong supply chain and demand for their products.’
Featuring specially curated assortments for its members, delivery services, e-commerce, credit facility etc, LOTS Wholesale Solutions is a one-stop shop for all its customer needs.
Tesco Asia like-for-like sales continue to decline while the UK-headquartered company repositions its offer – masking a stronger underlying performance for the business. “We have made good progress in our discussions with suppliers towards a new commercial approach,” explained Tesco CEO Dave Lewis in a quarterly update. “We also accelerated planned changes to our operating model in Thailand, helping to reduce costs and underpinning our profit recovery.”
Lewis said that despite minor changes to the government-issued welfare cards scheme during the third quarter, Tesco Thailand sales fell by about 1 per cent for the 19-weeks including the key Christmas trading period.
Restructured Thailand store operations have led to reduced costs, underpinning profit recovery at the expense of sales.
Referring to Tesco’s global operations, Lewis added: “We have more to do everywhere but remain bang on track to deliver our plans for the year and as we enter our centenary we are in a strong position.”
The December quarter represented the 12th consecutive quarter of like-for-like sales growth for Tesco globally, with sales up 2.6 per cent.
JD.com, China’s largest retailer, has joined forces with Paramount Pictures and global play and entertainment company Hasbro to celebrate the Chinese release of the new TRANSFORMERS movie BUMBLEBEE. On the run in the year 1987, BUMBLEBEE finds refuge in a junkyard in a small Californian beach town. Charlie (Hailee Steinfeld), on the cusp of turning 18 and trying to find her place in the world, discovers BUMBLEBEE, battle-scarred and broken. When Charlie revives him, she quickly learns this is no ordinary, yellow VW bug.
JD first partnered with Hasbro and the TRANSFORMERS franchise in 2017, releasing a MISSION RED mini short that showed Optimus Prime and Red Knight – a special JD exclusive TRANSFORMERS character – fighting to protect the energon fuel source. This year’s celebration will be accompanied by a series of three mini shorts featuring Panasonic and Chinese menswear brand HLA in which Red Knight protects energon.
JD and Hasbro are also bringing Red Knight to life by creating an action figure of this TRANSFORMERS bot. Released on Dec 29, 2018, the exclusive action figure is only available on JD.
JD also launched a “Super BUMBLEBEE Day” sales promotion to coincide with the Jan 4 premiere of the film in China. During the promotion, JD’s more than 300 million customers were able to purchase BUMBLEBEE movie-themed merchandise from Hasbro, Panasonic, HLA, and more. JD has outfitted multiple delivery vans and delivery boxes across China with BUMBLEBEE-themed designs.
