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Tag: ecommerce

  • Xiaomi Mi Mix now available via Lazada in Singapore

    Xiaomi Mi Mix now available via Lazada in Singapore

    Xiaomi Mi Mix now available via Lazada in Singapore

    Xiaomi fans in Singapore are in for a treat as the Mi Mix concept phone is now available for purchase via Lazada. Although the phone’s availability is officially limited to China, some enterprising stores like Lazada have come to the rescue of prospective smartphone buyers in the island state.

    The only caveat with the Lazada deal is that you will get just one month local-seller warranty at a premium price.

    The regular 4GB/128GB variant of Mi Mix retails at ¥3,499, which is the equivalent of S$720. In contrast, the Mi smartphone starts at S$1,278 in retail outlets across Singapore.

    On the other hand, the premium 6GB/256GB model is priced around ¥3,999 (S$820) in China and the same retails at a whopping S$1,639 in the island state.

    The all-screen and all-ceramic phone from Xiaomi definitely carries the premium looks of any eye-catchy phone in the market.

    It must be noted that the Xiaomi Singapore is not currently stocking the Mi Mix, despite featuring its official store on Lazada. So, your only option is to buy the phone through third-party importers and sellers via Lazada, which is too risky as it comes without the official hardware warranty.

     

  • Rakuten opens flagship store on South Korea’s e-marketplace 11STREET

    Rakuten opens flagship store on South Korea’s e-marketplace 11STREET

    Japan’s e-commerce giant Rakuten Inc. has opened an online flagship store on 11STREET, one of South Korea’s leading online marketplaces.

    It said store aims to provide South Korean consumers with popular Japanese merchandise and
    will feature a variety of fashion goods, beauty, and sports products.

    “11STREET is a vibrant and innovative online marketplace and we’re excited to be partnering with them on this new cross-border initiative,” said Ryoji Yasutome, Vice Senior Manager Cross Border Trading at Rakuten.

    The South Korean e-marketplace has a global network of 260,000 sellers, small merchants, brand names, department stores and supermarket chains serving 23 million registered members in the home market and abroad.

    Shoppers reportedly spend $6 billion annually on its sites.

    “Korean consumer demand for high quality Japanese and international goods continues to grow at a double figure rate,” said Joon Young Park, Senior VP at 11STREET. “Through our partnership with Rakuten, we are able to offer our customers a more exciting cross-border shopping experience with a larger selection of popular products from Japan.”

    Moving forward, Rakuten will introduce products to 11STREET customers from categories such as health, living, kitchen, and hobby items and will continue to expand the product line-up over the coming months.

    The two companies said they will also jointly provide support services to participating merchants such as translation, listings, merchandising advice, shipping and customer support.

  • Honor Malaysia launches first concept store

    Honor Malaysia launches first concept store

    In collaboration with mobile phone retailer TF Mobile Enterprise, technology brand Honor Malaysia has opened its first concept store at Plaza Low Yat in Kuala Lumpur.

    Honor Malaysia instore

    A spokesman says the move aims to strengthen the company’s interactions with consumers by complementing its eCommerce presence with retail stores.

    Honor Malaysia 1

    Featuring its line-up of Honor devices, the store has a launch promotion until November 21 during which buyers will receive gifts. They can also enter a draw to win Honor products.

    Honor Malaysia is a subsidiary of Huawei Technologies (Malaysia).

    honor-malaysia-open

  • 7-Eleven offers 24×7 e-commerce service

    7-Eleven offers 24×7 e-commerce service

    Convenience store chain operator 7-Eleven Malaysia is jumping on the bandwagon in e-commerce by offering parcel locker services in some of its outlets to facilitate delivery for online shopping.

    The service is expected to start this month, says 7-Eleven Malaysia chief executive officer Gary Brown at the Asia Pacific Retail Congress in Kuala Lumpur recently.

    The move by 7-Eleven will be seen as a nascent but integral part of an expanding online retail eco-system that is beginning to grow in popularity in Malaysia.

    “An online shopper can choose to get his purchases delivered to a 7-Eleven store most convenient to him. Once it arrives, he will receive a text with a PIN code. Because we are a 24-hour convenience chain, we will be able to offer online shoppers the convenience to pick up their purchases 365 days, 24×7,” he says.

    Brown says the move is to make shopping as convenient as possible and is part of the chain’s evolution in the larger retail space that is not confined to bricks and mortar. It has been around since the 1980s but it was only of late that the convenience chain began went beyond retail to offer payment services.

    7-Eleven Malaysia Holdings Bhd was listed on Bursa Malaysia in 2014. The convenience store chain is controlled by Tan Sri Vincent Tan Chee Yioun, with an indirect stake of 53.59% via HQZ Credit Sdn Bhd. HQZ Credit is the ultimate holding company of Berjaya Retail Bhd – the major shareholder of 7-Eleven.

    Brown says he is seeing a lot of changes in Malaysia’s retail landscape and 7-Eleven, as part of that landscape needs to improve customer’s experience by making it convenient.

    Brown says the company plans to open 200 new stores annually for the next 10 years.

    It opened 500 new stores in the past 2½ years and at the same time, refurbished another 500. The cost of 200 new stores and refurbishing another 200 involves an investment of between RM80mil and RM90mil a year, he says.

    Brown says out of 2,050 7-Eleven outlets, close to 100 stores are located in malls and other managed facilities.

    In Publika, Solaris Dutamas, there are four 7-Eleven outlets, six in Times Square, Jalan Imbi and three in Sg Wang mall. Two out of the six in Times Square operate 24×7.

    “In a high traffic area, for example, in a mall, we need to have more density. In a mall, they operate 12 hours. But when they are outside a mall, but in a managed area, they operate 24×7,” he says.

    Brown says the company is interested to enter more malls. Having a store in a mall makes sense because consumers do not want to walk too far.

    “7-Eleven leverages on what we call impulse satisfaction, or instant gratification,” he says.

    It also offers mobile top-up services and payment of utility bills 24×7 and recently introduced sitting arrangement for that cup of coffee.

    “It is not convenient carrying a cup of hot coffee around,” he says.

    The convenience store operator reported a group revenue for the financial year ended Dec 31, 2015 of RM2.01bil, an increase of 6%, or RM113.2mil, over 2014’s revenue of RM1.89bil.

    The company reported a gross profit of RM59.9mil for 2015 financial year, which translates into a 3% gross profit margin over revenue, which is normal as margins tend to be rather thin for the retail sector. It reported operating income of RM109.7mil, an increase of 2.2% compared to 2014.

    Better merchandise mix

    Its growth in revenue was driven by new stores, an improved merchandise mix and consumer promotion activities, and was achieved despite an ongoing retail market negativity, which explains the need for the company to go into a store expansion mode as well as to offer new services at its 24-hour outlets.

    The company’s store expansion drive of about 200 new stores a year will help grow revenue. Its store count increased by 199 stores or 11.4 % from 1,745 stores to 1,944 stores in 2015.

    On the often quoted view that there is an oversupply of retail space in the Klang Valley and cities like Penang and Johor Baru, Brown disagrees.

    “There is a lot of mall space in the Klang Valley but I would not say there is an oversupply. Malaysians like malls, so they have a role to play, despite the growth in online retail,” he says.

    He says the more pertinent question is what will happen to malls which are not well located and which are not well managed.

    Those that are will continue to grow, thrive and attract tenants. A mall will survive on tenant mix, which drives customer traffic.

    “There may be some fallout if a mall does not have a good tenant mix,” he says.

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  • How Asia-Pacific is driving global online retail

    How Asia-Pacific is driving global online retail

    The world’s largest and most populous continent, Asia is made up of 48 countries and spans 44,579,000 square kilometres. With a widely diverse population of 5.096 billion people, the continent’s rich historical background offers a wealth of opportunities to explore, from the untouched steppes of Central Asia to the bustling economic centres of China and Japan. Iconic sights such as the Taj Mahal and the Temples of Angkor Wat may draw tourists from around the world, but strong economic growth and up-and-coming markets are providing new footholds for businesses and investors alike.

    The key e-commerce markets in the Asia region are China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Thailand and Vietnam. Together, these countries represent 86 percent of all e-commerce turnover in the Asia Pacific region, a figure which rises to 90 percent when Oceanic countries such as Australia and New Zealand are excluded.

    E-commerce in Asia is flourishing – with $770 billion in transactions annually, the Asia-Pacific region leads the world. An expanding middle class, growing Internet penetration and improving infrastructure means the region will continue to drive global online retail over the next five years.

    Access to financial services is a key stimulus for e-commerce. A lack of banking infrastructure in many countries in the region is exacerbated by barriers caused by geographical and physical access to banking services. Increased Internet penetration will aid in removing these barriers, but with some areas having an account penetration of as low as 2 percent, many countries will continue to rely on cash as the main method of payment for some time to come.

    While, on average, 51 percent of the region’s population has access to an account with a financial institution, the extremely low income level of a significant proportion of the population results in a high overall percentage of unbanked people. In spite of its growing middle class, China’s traditional rural economy and vast territory results in the country accounting for more than 12 percent of the world’s unbanked population.

    The expanding middle class is making a significant contribution to the growth of e-commerce across the Asia region. This group is expected to reach 1.7 billion by the year 2020, with China, India and Indonesia experiencing the greatest growth. With the increase in the number of options that e-commerce brings, consumers are also showing marked personal preferences. This, in turn, is leading to increased competition, with traditional retailers moving to having an online presence (either individually, or by using an online marketplace), and local businesses experiencing pressure from regional and global brands which want a share of the growing sector’s profits. Again, China is a leading force in both the regional and global economy.

    Technology, naturally, is a major factor in changing economic patterns, with internet penetration playing a significant role. Notably, in spite of having the highest B2C e-commerce sales of any region in 2014, Asia has the lowest penetration of all regions globally (although Japan, Singapore and South Korea fall into the global top ten). As infrastructure becomes more ubiquitous, e-commerce will continue to experience high growth as a result; countries with a low penetration rate, such as India, with only 18 percent, are expected to drive future growth.

    The young are traditionally the first to embrace new methods of doing anything, and it is no different in Asia. Millennials are the most active group online, and use social media as their preferred form of communication – Facebook has more than 270 million active daily users in Asia alone. This familiarity with the online environment results in a willingness to embrace cashless payment methods, and this group exhibits different patterns of consumer behaviour to other demographics.

    The use of online payments varies throughout the region according to how developed the local market is. The more mature the market, the more likely it is that consumers in the country will use cards in order to pay for online purchases: for instance, in Japan and South Korea, 63 percent and 83 percent of online purchases respectively are paid by card. In contrast, emerging markets such as India and Malaysia continue to prefer cash based payment methods.

    In China, E-wallets are the most popular form of payment online, being used for 48 percent of transactions. Whereas, in Indonesia, e-wallets and other forms of payment are the least preferred methods, making up 5 percent and 3 percent of transactions respectively. There, bank transfer is used in 39 percent of e-commerce transactions, with card-based purchases accounting for 29 percent.

    The trend, though, we are seeing overall is that cash based payments are increasingly being displaced by electronic payment methods throughout the region.

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  • DHL eCommerce will invest €70 million to expand its air hubs in Delhi and Mumbai

    DHL eCommerce will invest €70 million to expand its air hubs in Delhi and Mumbai

    DHL eCommerce will invest €70 million (US$75.1 million) to expand its air hubs in Delhi and Mumbai, supporting the growing e-commerce industry in India.

    According to DHL, the 5,761m2 Delhi hub and 4,274m2 Mumbai hub will be equipped with automation to handle a daily volume of more than 500 tonnes. The upgrade will allow Blue Dart Express, a subsidiary of DHL, to process more shipments faster and deliver them to Indian consumers by air.

    “The e-commerce industry is an extremely exciting one that offers tremendous opportunities for businesses and consumers alike,” said Juergen Gerdes, CEO of post, e-commerce and parcel at Deutsche Post DHL Group [third from right in photo]. “The global B2C cross border e-commerce market will multiply in size to US$1 trillion in 2020. The growth is driven by increasing consumption from expanding middle classes, greater mobile and internet penetration and improving logistics and infrastructure as consumers increasingly shop online and expect shorter delivery times. With our added focus on innovation such as the StreetScooter and In-Car Delivery, we are gearing up to ensure we stay ahead of the game and be able to anticipate and meet the needs of the overall industry, e-tailers and end customers.”

    Charles Brewer, CEO of DHL eCommerce, said that the completion of the upgrades will mark another milestone in the expansion of the DHL eCommerce logistics network.

    “India is a really important market for us and is one of the fastest-growing, with B2C e-commerce expected to grow from €9.6 billion (US$10.3 billion) in 2016 to between €30-40 billion (US$32.2-42.9 billion) in 2020,” said Brewer. “This investment in India, as well as recent investments in the Americas and elsewhere in Asia Pacific this year, showcases our commitment to the e-commerce industry by delivering high quality, reliable logistics solutions to meet the rising demands of e-commerce consumers.”

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  • Chinese shoppers lead way in digital commerce

    Chinese shoppers lead way in digital commerce

    While digital commerce is strong in the world’s two largest economies, Chinese shoppers use smartphones and tablets more than shoppers in the US.

    This is shown in a new study from IAB (Interactive Advertising Bureau) and IAB China, Understanding Digital Commerce in the US and China. Conducted by consulting firm Hypothesis Group, the research shows that both China and the US have achieved near-full adoption of digital commerce, with 89 per cent of Chinese digital users aged from 18 years upward and 84 per cent of US digital users in the same age bracket saying they had bought a product or service digitally over the previous 12 months.

    When it comes to mobile commerce, China leads the way in several areas:

    • 67 per cent of Chinese digital users had made a mobile purchase over the previous 12 months vs 34 per cent of US digital users.
    • 24 per cent of Chinese mobile shoppers purchase via mobile every day vs 15 per cent of US mobile shoppers.
    • 89 per cent of Chinese mobile shoppers are interested in making a mobile purchase over the next month vs 78 per cent of U.S. mobile shoppers.
    • 59 per cent of all monthly purchases in China are digital compared to 42 per cent in the US. Of those purchases, 48 per cent are made via mobile in China, while mobile commerce accounts for 26 per cent in the US.

    Plentiful cross-channel opportunities are available in both markets, says the report, with a similar percentage of Chinese and US digital shoppers using both digital and offline channels when deciding on a purchase (31 per cent in China vs 29 per cent in the US).

    Digital research

    Chinese shoppers are more likely to research and compare prices digitally while within a physical store, with 38 per cent saying they do so all the time or most of the time, while 23 per cent of US shoppers do the same. They are also more likely to use more than one digital device over the course of the purchase process (67 per cent China vs 43 per cent US).

    Americans tend to favour multi-product retailers when buying digitally, with 72 per cent of US digital shoppers buying from one of these outlets compared to 61 per cent of Chinese shoppers. Meanwhile, Chinese digital shoppers are more likely to buy from sites or apps that highlight discounts (63 per cent China vs 37 per cent US) or that let them compare prices from different sites or apps (51 per cent China vs 29 per cent US).

    Chinese shoppers are also more likely to make a purchase via a messaging app (29 per cent China vs 16 per cent US), while US shoppers are more likely to buy via auction sites (33 per cent US vs 25 per cent China).

    When it comes to making a purchase, American shoppers are much more likely to use a credit or debit card (63 per cent US vs 34 per cent China on computer; 37 per cent US vs 6 per cent China on mobile). In China, payment is much more likely to be through a digital payment service like PayPal or WePay (47 per cent China vs 15 per cent US on computer; 36 per cent China vs 17 per cent US on mobile) or a mobile wallet service like Apple Pay (21 per cent China vs 2 per cent  US).

    Security concerns

    While these numbers indicate strong adoption of digital shopping, obstacles still remain, says the report. The main concern is security, with only 13 per cent of Chinese digital shoppers and 30 per cent of US digital shoppers feeling completely safe shopping digitally. While American shoppers are mainly concerned about information safety and privacy, Chinese shoppers fear digital fraud and scams.

    The top benefits of digital shopping are listed as including convenience, ease of use, price and selection.

    “This study confirms that mobile is a crucial and growing part of the eCommerce experience,” says IAB senior VP/GM mobile and video, Anna Bager. “While China has always been a mobile-first culture, as its initial adoption of the internet was driven by mobile devices, we are now seeing tremendous year-over-year upticks in terms of mobile growth in the US. We expect to see that trend extend to US mobile commerce going forward.”

    IAB China head Chen Yong, who is also secretary-general of the Interactive Internet Advertising Committee of China (IIACC), says it is vital to note how much commerce happens on small screens.

    “Marketers who want to reach Chinese shoppers need to follow their lead by investing in mobile advertising so they can bring their messages to the right people at the right time and right location.”

    The IAB comprises more than 650 media and technology companies responsible for selling, delivering and optimising digital advertising or marketing campaigns.

  • Matahari Department Store Launches MatahariStore.com

    Matahari Department Store Launches MatahariStore.com

    The launch of MatahariStore.com has provided more opportunities for the company and for the development of online and retail industries in Indonesia as research from Google and Temasek shows that e-commerce will contribute to nearly 60 percent of Indonesia’s overall online market, leaving behind online ticketing and ride-hailing booking services.

    “Through the retail stores, mobile applications and now with the newly-launched online platform, we believe that we can become an omni-channel retail player,” Christian said.

    MatahariMall.com will run all MatahariStore.com transactions and will provide content, a secure payment system and delivery of products.

    MatahariStore.com will also implement an online to offline strategy — which allows customers to shop online and pick up their goods at the retailer’s nearest delivery hub — with features that allow customers to pay, receive and return products at any of Mataharimall.com’s 649 delivery hubs across Indonesia.

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  • Oppo Joins Hands with Tokopedia

    Oppo Joins Hands with Tokopedia

    OPPO has officially established a partnership with e-commerce company Tokopedia to market its best products, such as its best-selling product OPPO F1s.

    “Our cooperation with Tokopedia is an added value to our customers throughout Indonesia,” OPPO Indonesia CEO Ivan Lau.

    Ivan said that OPPO’s customers who cannot be reached by OPPO’s physical stores will be able to get OPPO products through Tokopedia. In addition, he said, OPPO’s excellent sales volume in Tokopedia had also been factored in. “It was one of the reasons behind the strategic cooperation with Tokopedia.”

    Tokopedia CEO William Tanuwijaya said that Tokopedia users, known as Toppers, will be able to enjoy the ease of payment for OPPO products, ranging from cash payments via convenience stores and post offices to interest-free credit card installments.

    Tokopedia boasts two million pageviews per month, making it as one of the best distribution channels for many brands, including OPPO.

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  • #Double11 2016 Singles Day Record Proves China’s E-Commerce Might

    #Double11 2016 Singles Day Record Proves China’s E-Commerce Might

    Chinese e-commerce giant Alibaba Group has tallied more than US$1 billion in the first five minutes and US$5 billion in transactions in the first hour of its annual Singles Day sales blitz. That means China’s 2016 Singles Day shopping fest—aka Shuangshiyi or Double Eleven, since it takes place each November 11—retains its title as the world’s biggest online shopping event.

    The final sales tally for the 24 hour global shopping spree: US$17.8 billion in GMV (gross merchandise volume) sales, or in China’s yuan or renminbi currency, RMB 120.7 billion. The vast majority (82%) of that shopping frenzy took place on mobile phones and devices, with $14.6 billion (RMB 98.97 billion) on mobile.

    Last year, Alibaba’s digital shopping platforms racked up a total US$14.3 billion in sales, bypassing the $9.3 billion in #Double11 Singles Day sales in 2014 — meaning the 24-hour shopping spree has almost doubled in two years.

    It’s also a proof point for Ant Financial Services Group, Alibaba’s fintech arm that operates its Alipay mobile payments platform. “The excitement around online shopping continues to build year after year, and it’s emblematic of the way that e-commerce is changing, giving consumers incredible access to products around the world,” said Ant Financial SVP Douglas Feagin to the South China Morning Post.

    Ant Financial this year says it processed 1.05 billion transactions, an increase of 48 per cent from last year. At the peak of the madcap shopping within the first hour, as many as 120,000 transactions per second were processed, Feagin said. Ant brought innovation and speed to the online sales crush. Just as importantly, it helped finance merchants and consumers alike.

    As SCMP reports, “Before the start of the so-called Singles’ Day shopping gala on November 11, Ant Financial’s MYbank unit granted over 50 billion yuan of loans to 1.33 million merchants to help them put their products online.Ant Financial’s Ant Credit Pay was also on hand to grant more than 100 million customers credit to finance their online shopping, Feagin said.”

    At the half-way mark, it was clear that 2016’s event would surpass last year’s record, according to Alizila’s coverage:

    At the 12 hour, 29 minute mark of the sale, total GMV had exceeded RMB 82.4 billion ($12 billion), with mobile accounting for 83.55 percent of the total.  Alibaba Group President Michael Evans had this to say: “With roughly 11 hours to go, we’re in a good place.” More than 14,000 international brands are participating in the sale, he said, and sales from international brands have so far accounted for about 30 percent of total GMV.

    Alibaba #Double11 Singles Day sale

    Virtual reality also played a role this year, with Tmall’s Buy+ billed as the world’s first virtual reality shopping experience. For the price of a 15 cent cardboard VR headset, shoppers could slip their smartphone into the headset and browse products from handbags to shoes to lingerie, and even have virtual models showcase the apparel and accessories on a catwalk.

    Shoppers could browse eight digital stores using VR to assess the goods before buying them. Participating retailers include Macy’s, Target, Costco, P&G, Chemist Warehouse, Freedom Foods, Tokyo Otaku Mode and Matsumoto, part of the over 11,000 international brands that join in the fair.

    The global online shopping event also introduced interactive games and partnerships with over one million brick-and-mortar shops, including a Pokemon Go-like mobile application to catch the Tmall cat mascot in offline locations of Tmall merchants in shopping malls to spur foot traffic to the merchants. In return, consumers can earn special prizes such as free subscriptions to Alibaba’s Youku TV.

    It also teased this year’s 11.11 with teasers including an eight-hour live-streamed “see now buy now” fashion show from Shanghai, where consumers can order anything they see on the catwalk in real time from brands including Victoria’s Secret.

    The goal of this technology is to “improve [the] consumer retail experience, I would say you’re looking at the future of retail. The future of retail is in China, not anywhere else,” Alibaba Group’s co-founder and vice chairman Joseph Tsai told a media briefing on Thursday in Shenzhen, China.

    Leading the 11.11 international sales brigade this year were merchants from the US, Japan, South Korea, Australia and Germany. Most countries have already exceeded the volume of sales recorded for the entire sale last year.

    It’s another astonishing Singles Day,  an annual promotion inviting consumers who are not in relationships to cheer up with some retail therapy — an anti-Valentine’s Day “treat yourself” event invented by Alibaba’s Tmall head, Daniel Zhang, in 2009 to rival America’s Black Friday and Cyber Monday shopping events, and now surpasses both of them combined.

    While 11.11 started with discounts, it has morphed into an event featuring global brands such as Apple and luxury brands such as Burberry and Maserati, which both operate branded Tmall stores.

    As Teng Bingsheng, Associate Professor of Strategy at the Cheung Kong Graduate School of Business (CKGSB) in Beijing, stated in a pre-event press release, “To some extent, people remember that Alibaba initiated the 11.11 shopping festival. However, other brands are quickly gaining their fair share as well. But as long as the whole pie – and Alibaba’s own business – both get bigger, it’s still good news.”

    CKGSB Associate Professor of Accounting Zhang Weining added, “Double Eleven used to last for 24 hours, but this year it will stretch for 24 days. I think Alibaba foresaw that the sales growth rate would slow down this year, in part because more and more e-commerce platforms are running these campaigns and consumers are increasingly attracted to promotions offered prior to the day itself. This new strategy will also ease the pressure on delivery logistics, since sales will be more spread out.”

    Jack Ma Kobe Bryant Alibaba Singles Day 11.11Chairman Jack Ma—who welcomed David and Victoria Beckham and Kobe Bryant (while Katy Perry dropped out for a family emergency) as ambassadors for this year’s event at its countdown gala—said Alibaba’s cloud computing system is “[by] far the most advanced that human beings can realize.”

    Last year, the company processed 140,000 transactions per second via its cloud arm Aliyun during the shopping peak, while payment arm Alipay processed an additional 86,000 transactions per second at peak sale time.

     

    The company reportedly plans to list in 2017 in either Shanghai or Hong Kong, making it China’s largest IPO since 2010 when the state-owned Agriculture Bank of China offered $22.1 billion worth of shares.

    Brand partners were also vocal about what propelled Single’s Day sales this year: mobile (as Gap attested), personalization (such as Oreo) and virtual reality:

    For its part, Walmart kicked off its Black Friday sales event today, along with Target, in a bid to attract shoppers in the mood for deals. Both retailers’ official in-store Black Friday sales begin at 6 p.m. on Thanksgiving, reprising last year’s schedule despite murmurings that consumer interest in deal blitzing on Turkey-day may be waning.

    While Office Depot and Mall of America announced they’ll be closed on Thanksgiving, Macy’s, Kohl’s and Toys R Us are joining Walmart and Target. Walmart will be “dramatically increasing” inventory to offer nearly 50 percent more Black Friday merchandise this year online than last year.

    Walmart US CMO Steve Bratspies said that “We really pride ourselves on not being the retailer who advertises a great price but then only has a few available for the customers.”

    Walmart deals include a Samsung 50-inch 4K television for $398 and movies that cost $1.99. Target is touting deals like an iPad Air 2 for $274 and 30 percent off apparel and the giant teddy bear for $10 that hijacked social media last year is back with 20 percent more bears!

    Both big-boxers will start with offers over the next two weeks seeding the way for customer engagement as holiday spirit.

    Target returns to its “10 days of deals” program, touting a single big promotion daily starting the weekend before Thanksgiving, while Walmart is offering limited-time Black Friday discounts and holding further price cuts for into December.

    Still, some rang a cautionary note about Alibaba’s sales reporting, as the BBC reported: “Some have questioned the accuracy of the numbers, amid claims of inflated sales data at online retailers across China. Merchants passing off counterfeit goods as genuine is also an industry problem. Alibaba reported 85% of purchases had been made on mobile phones during Singles Day.”

  • PayMaya Philippines, JCB team up to widen JCB cards acceptance in the Philippines

    PayMaya Philippines, JCB team up to widen JCB cards acceptance in the Philippines

    PayMaya, the Philippines’ pioneering financial services provider, and JCB International Co., Ltd. (JCBI), the international operations subsidiary of JCB Co., Ltd., have forged a new partnership for JCB Merchant Acquiring and Card Issuing business in the Philippines. The partnership deals with the acceptance of JCB cards at online merchants that use PayMaya Checkout as the payment gateway. PayMaya and JCBI also plan to issue co-branded cards in the future.

    PayMaya Business is focused on delivering solutions that power businesses of all types and sizes to accept all kinds of payments. The services PayMaya Business provides are PayMaya Checkout, a system that enables online shops to accept card payments, PayMaya Swipe, a mobile point-of-sale device that can simply be attached to any mobile device so merchants can accept card payments, and PayMaya Touch, a payment solution which allows businesses to accept swipe, dip, and contactless card payments.

    The partnership will benefit all JCB cardmembers in the Philippines and overseas. JCB is a pioneer in the Japanese payment card industry with over 70M cardmembers and 95M in total worldwide. JCB cardmembers will be able to use their JCB cards at online merchants that use PayMaya Checkout as their payment gateway.

    In 2017, JCB cardmembers will also be able to transact in big retail outlets in the Philippines but also in micro- and small-medium enterprises including local boutiques, food carts, and community stores which offer a unique shopping experience through PayMaya Swipe and Touch. These outlets prefer more affordable and easier payment acceptance solution like PayMaya Swipe, Checkout, and Touch.

    Kimihisa Imada, Deputy President of JCBI, said, “The Philippines is one of the most important markets for JCB’s global business expansion and we are pleased to welcome our new partner to the JCB network. I am certain that this partnership with PayMaya will bring more benefits and convenience to all JCB card members, especially in the e-commerce space. We are also looking forward to exploring further business opportunities such as ‘PayMaya-JCB Card’ issuance soon.”

    “At PayMaya, we strive to shape the future of commerce and drive local business growth through digital payment innovations. We are strengthening this commitment by collaborating with strategic partners such as JCBI, which help us enable merchants to accept payments from more consumers here and abroad. We are thrilled to see the progression of our alliance with JCBI as we continue our mission in redefining the payment landscape in the Philippines,” said Orlando Vea, President and CEO of Voyager Innovations and PayMaya Philippines.

    The JCB “Uniquely Yours” Experience

    JCB is a major global payment brand and a leading payment card issuer and acquirer in Japan. JCB launched its card business in Japan in 1961 and began expanding worldwide in 1981. Its acceptance network includes about 31 million merchants and over a million cash advance locations in 190 countries and territories. JCB cards are now issued in 21 countries and territories, with more than 95 million card members. As part of its international growth strategy, JCB has formed alliances with hundreds of leading banks and financial institutions globally to increase merchant coverage and cardmember base. As a comprehensive payment solution provider, JCB commits to provide responsive and high-quality service and products to all customers worldwide.

    The unique benefits of PayMaya Business

    PayMaya handles the requirements of merchants in enabling their online and card payment acceptance–no need to talk to banks, expert programmers, or payment aggregators separately.

    For online payment, PayMaya Checkout API is easy to integrate in websites or apps. The process involves three simple steps: integration to sandbox environment, testing, and production.

    PayMaya provides simple pricing and fast settlements. Merchants are not required to settle monthly fees or present bank statements. They will only pay for the transactions they make. The package comes with access to a dashboard of transaction reports for sales performance tracking.

    The Philippine Airline’s mobile website and its recently launched online boutique, and the online gadget store Kimstore are powered by PayMaya Checkout.

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  • US$1 billion in first five minutes of 11.11

    US$1 billion in first five minutes of 11.11

    Alibaba Group says more than US$7 billion (RMB 47.5 billion) of gross merchandise volume (GMV) was settled through Alipay on Alibaba’s China and international retail marketplaces within the first two hours of the 2016 11.11 Global Shopping Festival.

    And more than $1 billion was transacted in the first five minutes – from 12 midnight.

    “Chinese consumers purchased more in the first hour of 11.11 this year than the entire 24 hours in 2013, reflecting the incredible evolution of our global shopping festival,” said Daniel Zhang, Alibaba Group CEO. “This unprecedented level of engagement demonstrates both the consumption power of Chinese consumers and their embrace of online shopping as a lifestyle.”

    In the hours leading up to the official midnight start of November 11, millions of viewers watched the Alibaba Group 11.11 Global Shopping Festival Countdown Gala live online and on mobile devices via Youku Tudou, and the Tmall and Taobao apps. The gala was televised live across China through Zhejiang Satellite TV, as well as in Hong Kong and Macau for the first time.

    “This year, we innovated new ways for consumers watching the live broadcast of our countdown gala. Viewers were able to influence the production of the show in real-time through their mobile phones,” said Chris Tung, chief marketing officer, Alibaba Group. “Consumers in front of their televisions were shaking, tapping, scanning, chatting, browsing and buying with their mobile devices, creating a seamless and truly immersive entertainment experience.”

    VR drives surge

    International think tank Fung Global Retail & Technology predicts sales of $20 billion during the full 24 hours, up an extraordinary 40 per cent over last year’s total of $14.3 billion, thanks in part to the introduction of Buy+, the world’s first-ever end-to-end virtual reality (VR) shopping experience.

    “Buy+ will enable global retailers (even those without a physical presence in China) to offer an engaging, virtual in-store experience to Chinese consumers,” writes Fung Global Retail & Technology MD Deborah Weinswig in Singles’ Day Online Shopping Festival Could Also Benefit Retailers’ Physical Stores, a new report.

    The platform features eight virtual stores: Macy’s, Target, Costco, P&G, Chemist Warehouse, Freedom Foods, Tokyo Otaku Mode and Matsumoto Kiyoshi. Using cardboard VR headsets distributed in October, consumers can virtually walk around Macy’s Herald Square flagship in New York City to find products and, with just a nod of the head, confirm payment to purchase an item they see.

    “One of Alibaba’s strategies for Singles’ Day is to merge gamification with online shopping. The company will leverage its media and entertainment assets to drive increased online consumption,” says Weinswig.

    These include a televised countdown gala event and fashion show that was held last evening. In addition, the company is promoting products on TV screens, allowing viewers to scan QR codes for a real-time purchase.

    The concept has expanded beyond Alibaba, with chief rival JD.com, Gome and Suning also creating promotions. International retailers will target Chinese shoppers, and Chinese retailers target international shoppers. In 2015, Newegg, OTTE New York and Nasty Gal, all launched Singles’ Day promotions.

    “A year ago, Alibaba promised that Singles’ Day will be a true omni-channel event, and this year the company seems dedicated to continue delivering on the promise, armed with more technological innovations that bridge the gap between the virtual and physical worlds,” Weinswig writes.

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  • Indonesian government taking steps to tackle growth of e-commerce industry

    Indonesian government taking steps to tackle growth of e-commerce industry

    The volume of e-commerce transactions in Indonesia is still relatively small but the government is taking anticipatory steps in the face of e-commerce industry growth as it is developing as a global trade model.

    Indonesias e-commerce transactions still account for about one to two percent of retailer transactions or much lower than the global average of eight percent. However, it is predicted that e-commerce transactions in Indonesia will increase drastically from US$12 billion in 2014 to about US$24.6 billion this year.

    Therefore, the government sees that the e-commerce industry is one of the business sectors that has good prospects in the future, and for this it is issuing an e-commerce development roadmap through an economic policy package.

    The roadmap is appearing in the 14th economic policy package announced by the government on Thursday, November 10, 2016.

    “The policy package is aimed at encouraging people all over Indonesia to expand their economic activities efficiently and to connect them to the rest of the world. With this roadmap, they will be able to enhance their business in a better way,” Coordinating Minister for Economic Affairs Darmin Nasution said while announcing the package at the Presidential Office along with Communication and Information Minister Rudiantara and Cabinet Secretary Pramono Anung.

    Therefore, the next economic policy package is expected to sufficiently address the issue.

    “E-commerce should not be treated as a general form of trading. The tariff should be lower as it is a fledgling industry, an early adopter,” Industry Minister Airlangga Hartarto underlined while speaking on the sidelines of the launch of a book on “Developing Populist Economy and Winning ASEAN Economic Community” recently.

    Indonesian businesses hope that the tax tariff for e-commerce business will be lower than that of the non-e-commerce industry.

    The Indonesian Employers Association (Apindo) hailed the issuance of the package. Businesses badly need the governments support, particularly on the fiscal system with regard to the issuance of the economic policy package on e-commerce, Fredy Ongko Saputro, chairman of Apindo for East Nusa Tenggara, said.

    “The tax tariff should be lower than non-e-commerce because this is a new industry. We hope the tax traffic is set at a modest rate,” the Apindo chairman for East Nusa Tanggara, said.

    The regulation to be issued would determine the success of e-commerce in Indonesia as it has the potential to guarantee the survival of fledgling businesses using e-commerce, economic observer Agustinus Prasetyantoko said, elaborating the point.

    Agustinus is also of the opinion that tax exemption would help boost e-commerce in the country.

    “In certain cases, tax could even be abolished during the start-up phase,” he underscored.

    Singapore could be used as the reference country to study ways to develop and expedite the expansion of e-commerce. It provides tax facilities and a low tax for start-ups in addition to assistance in the form of access to cheap capital.

    The e-commerce market has begun to grow in Indonesia. In 2014, transactions were valued at $12 billion. E-commerce spending in Indonesia was only 1 to 2 percent of the total retail sales as against 16 percent in South Korea, 12 percent in the United States and the world average of 8 percent.

    However, it is worth noting that the performance in 2014 represented a significant increase from $8 billion in 2013. In 2016, the value of transactions is predicted to rise to $24.6 billion.

    Therefore, it is being predicted that Indonesia would be among the top ranked countries in e-commerce in the future after China and India in Asia, which is why the government drew up a roadmap.

    Chief Economic Minister Darmin Nasution expressed the hope that the roadmap for the development of e-commerce industry will encourage younger generations to come up with new and innovative products and services.

    The roadmap is also expected to induce certainty in business besides facilitating the e-commerce industry. Therefore, with strategic direction and guidance, the electronic-based national trade system can be put in place during the 2016-2019 period, he noted.

    The roadmap is also expected to accord priority to and protect the national interests, particularly the interest of small and medium entrepreneurs and startups, he commented.

    “It will also help the human resources and e-commerce agents to improve their knowhow. Also, it will provide terms of reference to the government and all stakeholders for determining or adjusting sector-based policies as part of the effort to develop the e-commerce industry,” he explained.

    Darmin pointed out that the policy package deals with at least eight issues, including funding, taxation, consumer protection, human resource development and education besides cyber security.

    Meanwhile, Communication and Information Minister Rudiantara underlined that digital economy has a huge potential in Indonesia.

    “The Indonesian digital economy is so huge that all transaction services using digital technology will continue to develop,” he observed.

    He reminded that the package also covers several provisions to address seven key issues, including human resources and education, access to capital, tax incentives, consumer protection, cyber security, logistics and communication infrastructure.

  • Alibaba’s Singles Day sales reach $17.8b

    Alibaba’s Singles Day sales reach $17.8b

    Alibaba Group Holding Ltd.’s Singles’ Day shopping festival (now known as the 11.11 Global Shopping Festival) broke sales record this year with a reported 120.7 billion yuan ($17.79 billion) in gross merchandise volume in just 24 hours.

    The figure represents a 32% jump over last year’s 91.2 billion yuan ($14.3 billion) in transactions over Alibaba’s e-commerce platforms – B2C site Tmall.com and C2C site Taobao Marketplace.

    Alizila, the news portal of the Chinese e-commerce giant, also reported that the festival saw a number of other new records set, including 98.97 billion yuan ($14.6 billion) in GMV generated on mobile devices and 657 million delivery orders, compared with $9.8 billion and 467 million, respectively, in 2015.

    “There were also 1.04 billion payment transactions processed compared with 710 million last year,” the report noted.

    Daniel Zhang, chief executive officer of Alibaba Group, was quoted as saying that this year’s 11.11 shopping festival is a preview of the future of retail.

    “11.11 showcased how online and offline retail will be reinvented to offer brand new shopping experiences to our hundreds of millions of mobile, digitally savvy active users,” he said.

    The shopping marathon started on November 11 at midnight China Standard Time (CST).

    An IMAX-sized data screen at the media center at the Shenzhen Universiade Sports Center in Shenzhen, China continuously flashed updates all throughout the day, complemented by live blogging reports from Alizila.

    The first report at 12:017 showed that total GMV blew up to 10 billion yuan ($14.6 billion) just six minutes and 58 seconds after the sale began. Total GMV exceeded $100 million in just 40 seconds.

    During the first hour of the sale, order volume also reached a record-breaking peak of 175,000 orders in one second, while 120,000 payments were settled per second at the peak.

  • Forget Black Friday, Singles’ Day is the real retail event to focus on

    Forget Black Friday, Singles’ Day is the real retail event to focus on

    I recently got back from Engine’s Asia offices, where everyone was buzzing with excitement about this shopathon concept.

    This 24-hour shopping day is the Chinese equivalent of Cyber Monday. It started in 2009 by ecommerce giant Alibaba and has evolved into the biggest online shopping day of the year – raking in $14bn in 2015 with mobile purchases accounting for 75% of total sales.

    In the UK, the start of November means that the retail frenzy of Black Friday and Cyber Monday are fast approaching. But as reports this year suggest that Black Friday is no longer the money pit it used to be, it’s time for UK brands to think globally.

    While Black Friday sales are expected to disappoint with just 21% of UK shoppers saying they will be taking advantage of the slashed prices, Singles Day is set to break records with this year’s sales predicted to increase by 50%, with total sales reaching $21bn. That’s almost $1bn per hour.

    With success on these levels, it’s clear that Singles’ Day presents a huge opportunity for UK retailers. Brands like Topshop are already capitalizing on this phenomenon, reporting a sales surge of over 900% on the day in 2015 compared to 2014.

    With over 600 million internet users and 1.3 billion mobile phones nationwide – China’s 468 million digital shoppers equate to 40% of the total global e-commerce spend and a report by OC&C Strategy Consultants shows that in China, over 70% of people are more willing to spend on clothing than before – with a lot of this expected to come through ecommerce.

    Having skipped the PC era, Chinese consumers are savvier, more switched on and demand digital innovations at a level unprecedented in other markets.

    Different apps, such as WeChat, mean that platforms Western marketers might be used to, such as Twitter and Facebook, no longer apply.

    What does this mean for brands looking to tap into the lucrative Chinese market? Investing in ecommerce localisation is key. Adapting and tailoring your digital assets is a base requirement for those looking to appeal to a foreign audience.

    Brands seeking to enter the Chinese market will have to replicate the success of Singles’ Day retailers by understanding and responding to China’s changing demographics namely, its increasing disposable income, emerging middle class and increasingly affluent young population.

    For the event, Alibaba has sponsored a nationally televised gala, which leads to a midnight kick-off. By identifying the right celebrities (David Beckham headlined this year) and a format that fits with Chinese shopping mentality, Alibaba has successfully transformed the shopping event into a media spectacle with an expected viewership of around 200 million (doubling last years’ viewer figures), 10 million of whom will be from outside mainland China.

    This shift underlines a trend identified in a recent report from Cassandra, Engine’s leading provider of youth insights and emerging trends, which illustrates the changing shopping habits of millennials. They increasingly see it as more of an event and communal experience than previous generations ever did.

    This concept from the innovation hothouse of Asia will make brands and retailers eyes water. Agile players will surely be lining up to test and learn from Singles’ Day because discounting during the peak buying season, counter-intuitive though it may seem, is here to stay.

    -Debbie Klein