Tag: etail

  • Shopee to shut its Poland operations today

    Shopee to shut its Poland operations today

    Southeast Asia’s largest e-commerce firm Shopee will close its Polish operations from the end of Friday, Shopee Polska announced on its website on Thursday.

    “The fact itself is perhaps not a big surprise, since Shopee has already withdrawn from some of its markets, and a few months ago it cut some of its jobs in Poland, so the expectations were rather that they will leave the Polish market as well”, said Wood&Co analyst Lukasz Wachelko.

    Shopee has been operating in Poland since the autumn of 2021.

  • Amazon CEO says job cuts to exceed 18,000 roles

    Amazon CEO says job cuts to exceed 18,000 roles

    Amazon.com’s layoffs will now stretch to more than 18,000 roles as part of a workforce reduction it previously disclosed, Chief Executive Andy Jassy said in a public staff note on Wednesday.

    The layoff decisions, which Amazon will communicate starting January 18, will largely impact the company’s e-commerce and human-resources organizations, he said.

    The cuts amount to 6 per cent of Amazon’s roughly 300,000-person corporate workforce and represent a swift turn for a retailer that recently doubled its base pay ceiling to compete more aggressively for talent.

    Jassy said in the note that annual planning “has been more difficult given the uncertain economy and that we’ve hired rapidly over the last several years.”

    Amazon has more than 1.5 million workers including warehouse staff, making it America’s second-largest private employer after Walmart it has braced for likely slower growth as soaring inflation encouraged businesses and consumers to cut back spending and its share price has halved in the past year.

    It began letting staff go in November from its devices division, with a source telling Reuters at the time it was targeting 10,000 job cuts.

    In number, its layoffs now surpass the 11,000 job cuts at Facebook-parent Meta Platforms Inc as well as reductions at other tech-industry peers.

  • Amazon taxes 10 million products in Vietnam

    Amazon taxes 10 million products in Vietnam

    Vietnamese vendors have sold nearly 10 million products on Amazon this year, totaling an export value over 45% more than 2021, according to a report by the American e-commerce giant.

    During the pandemic, there were “thousands” of Vietnamese vendors on Amazon, and their top-selling products were in the categories of kitchen ware, home appliances, garment and textile and healthcare.

    Several Vietnamese brands such as AnEco (maker of compostable garbage bags), Lafooco (cashew exporter), Sunhouse (home appliances manufacturer) and HMG (3D card manufacturer) have been hailed by Amazon for succeeding in their e-commerce initiatives and creating jobs for locals.

    Nguyen Le Thang Long, deputy director of An Phat, which makes AnEco products, said that sales through Amazon have surged nearly five times from 2021.

    Phung Minh Thuy, founder of HMG, said that her company receives hundreds of orders through Amazon each day.

    Vietnam ranks fifth among the top 10 markets globally in terms of e-commerce and retail sales growth at 19%, behind the Philippines, India, Indonesia and Brazil, according to market research firm eMarketer.

    Vietnam’s e-commerce exports revenue is set to rise 20% annually between 2021 and 2026, according to consultancy firm AlphaBeta.

    With a strong national policy to support exports, abundant production capacity, and rapid development of e-commerce, Vietnam is at a golden stage for online exports to take off, said Gijae Seong, managing director of Amazon Global Selling Vietnam.

  • Vietnamese firm sues Amazon for $280M

    Vietnamese firm sues Amazon for $280M

    Vietnamese company Gilimex Inc. is suing e-commerce giant Amazon for $280 million for allegedly cutting back on orders, leaving it with an excess inventory.

    Gilimex, a manufacturer of textile and other products based in Ho Chi Minh City, said in a filling in a New York state court on Monday that it has been partnering with Amazon from 2014 to 2022 and has invested tens of millions of dollars in manufacturing facilities to build the steel-and-cloth storage pods used to organize inventory in Amazon warehouses.

    Gilimex said the partnership was built on “trust,” with Gilimex relying on the accuracy of Amazon forecasts to make adequate investments to meet demand, including procuring materials and arranging factory capacity and manpower to meet the American company’s needs.

    But beginning in April, Amazon “immediately changed and reduced the projected demand” for the remainder of 2022 and 2023 to a small fraction of previous forecasts, according to the lawsuit.

    “Thus, while Amazon enjoyed unprecedented increases in revenue during the pandemic due in large part to the explosion of online ordering by consumers from the safety and comfort of their homes,” said the legal complaint, “Gilimex management and laborers literally risked their lives on a daily basis to make such record growth a reality.”

    The Vietnamese company said it employs 7,000 employees in multiple factories to produce more than 1 million warehouse storage units annually, adding that production for Amazon increased 20-fold during the eight-year relationship.

    Gilimex was established in 1982. Its main products include fabric storage organization, home textiles, laundry baskets, duffel bags, backpacks, and outdoor textile products.

    Around 85% of Gilimex’s export revenue has come from Amazon, which ordered $146.6 million worth of products from the company last year, according to Mirae Asset Vietnam Research.

    Gilimex earned a record revenue of VND4 trillion ($170.03 million) last year, up nearly 16% from 2020.

  • E-commerce giant Carousell lays off 110 staff

    E-commerce giant Carousell lays off 110 staff

    Carousell, a Singaporean consumer-to-consumer (C2C) service platform operating across Southeast Asia, is letting go of about 110 employees, or 10% of its total headcount, to reduce costs amid a challenging market condition for the tech industry. 

    The announcement came from the company’s blog on Thursday, posted by co-founder and CEO of Carousell Siu Rui Quek, saying, “I take responsibility for the decisions that have led us here. Parting with teammates, whom we are grateful to for joining us on this mission, is a very difficult decision.” 

    Carousell did not specify which business units or regional offices would be affected by the layoffs. The Singapore-headquartered company operates in Malaysia, Indonesia, the Philippines, Cambodia, Taiwan, Hong Kong, Macau, Australia, New Zealand, and Canada. 

    In the statement, the company’s leaders had discussed finding ways, including moving to an inexpensive rental office and slashing co-founders and executives’ salaries voluntarily to save budgets without cutting staff. But that was “far from enough,” it said.  

    Quek also explained in the blog post that he “was too optimistic” about the recovery from the COVID pandemic and even doubled down on recruitment and investment for its business. “The reality is that we were quick to grow our expenses and hire, but the returns took longer than expected,” Quek wrote. “It is important to act swiftly, course correct, and right-size our investment levels to better align with this new reality.” 

    The affected workers will receive at least three months’ salary and be able to extend their medical benefits and insurance coverage through June next year. According to the statement, the company will also pay out all remaining time off balances and offer career counseling and job search support, letting those laid-off workers keep their office laptop and LinkedIn Learning membership until June 2023. 

    Founded in 2012, Carousell, backed by Sequoia Capital India, Naver, 500 Global and Rakuten Capital, has raised a total of $372.6 million since its inception.

  • Global giants eye Vietnam e-commerce logistics market

    Global giants eye Vietnam e-commerce logistics market

    The world’s largest container shipping line Maersk and U.S. express delivery company FedEx are seeking to enter Vietnam’s e-commerce logistics market. Ditlev Blicher, regional managing director for Asia-Pacific, A.P. Moller – Maersk (Maersk), was in the country this week, three months after the Danish company spent US$3.6 billion on acquiring Hong Kong firm LF Logistics.

    He said with LF Logistics’ expertise in omnichannel orders, Maersk would have a better position in the global e-commerce market, including Vietnam. He said that his company plans to offer business-to-business (B2B) and business-to-consumer (B2C) delivery services.

    Hoan Dang, head of omnichannel order fulfillment at Maersk Vietnam and Cambodia, said with the acquisition of LF Logistics, his company could join hands with e-commerce platforms to handle goods orders in the Vietnamese market.

    FedEx is integrating its services with e-commerce platforms to enable online retailers to use them without leaving them. Hardy Diec, managing director of FedEx Express Indochina, said e-commerce would continue to flourish in Vietnam.

    Earlier this month, his company opened a new $2-million operations center in Hanoi’s Bac Tu Liem District. Vietnam will be one of the top 10 countries for FedEx in terms of trade volume growth over the next five years.

    Vietnam will achieve the highest growth in the digital economy in Southeast Asia between 2022 and 2025, a report by Google, Temasek, and Bain & Company have forecast. Its digital gross merchandise volume will likely reach $23 billion in 2022 and $32 billion by 2025.

    According to global firm Allied Market Research, Vietnam’s express delivery market is expected to be worth $4.88 billion by 2030 after growing at 24.1% annually, with the growth of e-commerce being one of the main drivers.

    Logistics firms are expanding their services and lowering prices.

    This month Lazada Logistics announced it would start offering omnichannel deliveries for online shops.

  • JD.com to slash top exec salaries amid China’s ‘common prosperity’ push

    JD.com to slash top exec salaries amid China’s ‘common prosperity’ push

    China’s JD.com said on Tuesday it would cut the salaries of more than 2,000 senior managers by 10% to 20% next year to help pay for improved benefits for other staff amid the government’s “common prosperity” drive to reduce income inequality.

    Liu also plans to personally donate 100 million yuan to a fund that help children of JD employees should anything happen to their parents, said the letter circulated online and later confirmed by JD.com as authentic.

    “The employee benefits plan is currently being improved, with a focus on front-line staff,” a JD representative told Reuters. The company has 540,000 employees.

    Alibaba Group 9988.HK and Tencent Holdings 0700.HK last year pledged to spend billions to support the effort, while state-owned investment banks have implemented pay cuts and delayed bonus payments this year.

    JD has been hit by a slowing economy and flagging consumer spending this year, though it last week posted an 11.4% rise in third-quarter revenue and said it was seeing signs of a demand recovery as China adjusted it zero-COVID policy.

  • Alibaba quarterly revenue misses expectations as spending slows

    Alibaba quarterly revenue misses expectations as spending slows

    Chinese e-commerce giant Alibaba Group Holding Ltd 9988.HK posted a smaller-than-expected rise in quarterly revenue on Thursday as COVID-19 curbs and a worsening economic outlook stifled consumer spending.

    Retail spending in China has sagged this year with consumers frustrated by the government’s strict zero-COVID policies that have led to frequent snap lockdowns and hurt economic activity.

    Alibaba has also had to contend with stiff competition from the likes of Pinduoduo PDD.O and ByteDance’s Douyin – the Chinese version of Tiktok – which have expanded their e-commerce offerings and taken more market share.

    The company has also yet to fully recover from a regulatory crackdown on the tech sector that has curtailed growth opportunities.

    Revenue grew 3% to 207.18 billion yuan ($28.96 billion) in the three months ended Sept. 30, compared with a Refinitiv consensus estimate of 208.62 billion yuan drawn from 25 analysts.

    Alibaba, which runs China’s largest online marketplaces Tmall and Taobao and owns a wide range of businesses from logistics to cloud services, reported net loss attributable to shareholders of 20.56 billion yuan in the quarter.

    Excluding one-off items, Alibaba earned 12.92 yuan per American Depository Share.

  • Double Day e-commerce sales likely to be muted this quarter

    Double Day e-commerce sales likely to be muted this quarter

    Double Day sales this quarter will not match those of past years since inflation remains a worry for consumers, businesses have said.

    Sales on days such as November 11 and December 12 are the year’s highest as many firms and e-commerce companies run massive promotion programs.

    According to data from French online display advertisements provider Criteo, online retail sales on November 11, December 12 and Black Friday last year were 128%, 143% and 92% higher than on normal days.

    However, on October 10 sales in Vietnam increased by only 48% compared with 125% last year.

    Sales on November 11 and December 12 would not rise by as big rates as before, Mark Gubbels, Criteo’s commercial head for Southeast Asia, said, noting that consumers would be more cautious in spending.

    Retail sales increased only 17.1% year-on-year in October compared with more than 36% the previous month.

    Inflation accelerated after the end of the third quarter, surging by 4.3% year-on-year in October.

    Nguyen Chanh Chung, owner of cosmetics brand Lagivado, said demand would not be as strong this year as in the past, while e-commerce platforms would not offer as big promotions in the last quarter as they normally do.

    To attract customers, Shopee and Lazada are organizing live online music shows, while the former is also offering vouchers and discounts.

    Nguyen Manh Tan, marketing director of Haravan Technology Corporation, said consumers currently like omnichannel (combining online and offline sales), the direct-to-consumer model, conversational commerce, and livestreams on social networks.

    “E-commerce businesses should apply these four business models to approach and attract customers, increase revenues and cut costs and build their brand reputation.”

    There are around 100 e-commerce platforms in Vietnam with hundreds of thousands of vendors.

    In 2020 Shopee had 210,000 vendors and Tiki had 8,800, according to tax authorities.

    The e-Conomy Southeast Asia 2021 report by Google, Temasek and Bain & Co. forecast Vietnam to surpass Thailand by 2025 to become the second biggest Internet economy in Southeast Asia at US$57 billion after Indonesia ($146 billion).

  • Vietnam digital economy growth expected to be highest in Southeast Asia

    Vietnam digital economy growth expected to be highest in Southeast Asia

    Vietnam will achieve the highest growth in the digital economy in Southeast Asia between 2022 and 2025, a report by Google, Temasek and Bain & Company has forecast.

    It will grow at 31% followed by the Philippines with 20% and Indonesia with 19%, according to e-Conomy SEA 2022.

    Vietnam’s digital gross merchandise volume is likely to reach US$23 billion this year, third highest in the region behind Indonesia’s $77 billion and Thailand’s $33 billion.

    But with the rapid growth projected, it is expected to double by 2025 to $49 billion.

    The main contributors to Vietnam’s digital economy this year are e-commerce ($14 billion) online media ($4.3 billion) and transport and food ($3 billion).

    Vietnam’s high-quality workforce in the technology sector and the increasing penetration of digital services in urban and rural areas promise a strong foundation for the digital growth of the country, Stephanie Davis, vice president of Google Southeast Asia, said.

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    Vietnam is likely to attract the most investors in the 2025-30 period, according to a survey of venture capital investors in the third quarter by Bain & Company, with 83% of them expecting an increase in deal activity compared to now.

    In a report earlier Meta said eight out of 10 of Vietnamese are digital consumers.

    Vietnam is also among the top countries in future technology adoption such as fintech and metaverse.

    Virtual reality adoption in Vietnam is 29%, the highest in Southeast Asia, it said.

  • Indonesia’s e-commerce platform Blibli plans $528 million IPO

    Indonesia’s e-commerce platform Blibli plans $528 million IPO

    Indonesia’s e-commerce firm Blibli is looking to raise US$528 million during its IPO debut next month, the company said in its prospectus.

    The company said it plans to sell 17.7 billion shares through the listing at a price range between $0.027 and $0.03, which is expected to bring the company’s value to as much as $3.5 billion.

    The company said the fund raised will be used to pay its debt to banks before allocating the remains to working capital.

    Operated by PT Global Digital Niaga, the e-commerce company will be Indonesia’s third unicorn going public on the local stock market after GoTo Group and Bukapak, which raised $1 billion and $1.5 billion respectively.

    Blibli was founded in 2010 and is backed by the regional conglomerate Djarum Group.

  • Vietnam collects $231 mln in taxes from online platforms

    Vietnam collects $231 mln in taxes from online platforms

    The Finance Ministry said online platforms including Facebook and Google have paid VND5.59 trillion (US$231.6 million) in taxes from 2018 to August this year.

    In a report sent to the National Assembly, the ministry said the tax was paid by cross-border and e-commerce platforms, with Facebook and Google contributing the most, at VND2.099 trillion and VND2.115 trillion, respectively.

    They were followed by Microsoft with VND714 billion.

    Last year’s collection of VND1.591 trillion was 39% more than in 2020.

    From the beginning of 2018 until the end of this August, tax authorities collected VND1.082 trillion in taxes from organizations and individuals earning income from doing business online, including VND261 billion collected last year and almost VND521 billion in the first eight months of this year.

    The ministry launched an electronic portal and a mobile application (eTax Mobile) in March for foreign suppliers to declare, register and pay taxes.

    So far, there have been nearly 70,000 transactions made through the portal and app, with more than VND308 billion of tax collected.

    Of this, $22.2 million was paid by 30 major foreign suppliers including Microsoft, Facebook, Netflix, Samsung, TikTok and eBay.

    In order to manage and avoid tax revenue losses in the digital platform business, the finance ministry is working to complete relevant legislation.

    At the end of August, the ministry submitted amendments to Decree 126 issued in 2020, stipulating that e-commerce platforms have to provide information, declare and paying taxes on behalf of sellers.

    The ministry also proposed amending a number of special regulations to ensure a consistent legal basis for the management of e-commerce platforms.

  • Tech workers left hanging as Shopee rescinds job offers

    Tech workers left hanging as Shopee rescinds job offers

    Southeast Asia’s largest e-commerce firm Shopee has rescinded dozens of job offers in the past two weeks, sources said, a move that began shortly after parent company Sea Ltd reported widening losses and sharply slower revenue growth.

    Four people interviewed by Reuters who have participated in a WeChat group of some 60 people that was set up to discuss Shopee’s withdrawal of offers said their offers were pulled just days before they were due to begin work.

    One 27-year-old engineer who asked that only his first name Wang be used said his call came a week after arriving in Singapore, having quit a job in Shanghai with TikTok owner Bytedance.

    “I thought it was a scam call … until I realised it was a widespread rescinding of offers by Shopee,” said Wang, who had by then paid an advance to rent a house.

    Singapore-based Sea said it had recently cancelled some offers at Shopee but declined to say how many.

    “Due to adjustments to hiring plans on some tech teams, a number of roles at Shopee are no longer available. We are working closely to support those affected,” a company representative said.

    The move follows other recent job cuts at Sea. Staff at Booyah!, a gaming livestream app, which is part of Sea’s gaming unit Garena, were told they would be let go and the app would no longer be updated, separate sources have told Reuters, adding that projects at Sea’s development unit were also shut down.

    Earlier this year, media reports also said Shopee had shed headcount in Southeast Asia, Mexico and Latin America. Shopee declined to comment on those reports.

    Pessimistic Tone

    As recently as March, Sea said it would continue to invest in Shopee, which competes with Alibaba Group Holding’s Southeast Asian arm Lazada, and that growth for the unit remained at the top of its mind.

    But last month, Sea withdrew its e-commerce forecast for the year. Founder and CEO Forrest Li noted an increasingly uncertain market environment and stressed the need to prioritise profitability and efficiency. Sea reported a net loss of $931 million in the second quarter, more than double the loss it made in the same period a year earlier.

    “Their tone has never been more pessimistic,” said Ke Yan, lead analyst at Singapore-based DZT Research, who added that Sea’s strategy of using Garena’s cash flow to compensate for Shopee’s cash burn was unsustainable.

    Sea’s handling of the layoffs was “ugly and embarrassing” and likely to hurt its reputation, he said.

    Sea saw its market value soar to more than $200 billion last October as its Garena unit surged in popularity during the pandemic but its shares have tumbled since then and are now worth just $27 billion.

    Singapore’s Ministry of Manpower said relevant authorities were aware of complaints about Shopee and it was in touch with the company to find out more, but it also said in such situations the parties should work out an amicable solution in good faith.

    The four people interviewed by Reuters said that as compensation Shopee has offered a month’s salary and in cases where people have flown from abroad, it will reimburse the cost of flight tickets and temporary accommodation.

    While the potential for legal action has been discussed in the WeChat Group, those left hanging by Shopee are most concerned with finding new work.

    “The cost of taking legal action is too high. I just want to move on and find a new job,” said one of the four people interviewed by Reuters who declined to be identified.

    For his part, Wang wants to continue his job search in Singapore.

    “The cost of returning to China is too huge, it is very hard to find a new job given the economic situation there,” he said.

  • China’s JD beats quarterly revenue estimates

    China’s JD beats quarterly revenue estimates

    JD.com, beat Wall Street estimates for quarterly revenue on Tuesday (Aug 23) as lockdowns in China to control the spread of the coronavirus boosted online shopping and the company’s “618” shopping event.

    US-listed shares of the Beijing-based company rose nearly 7 per cent in premarket trading.

    The company reported second-quarter revenue of 267.6 billion yuan (US$39.07 billion), topping analysts’ average estimate of 262.31 billion yuan, according to IBES data from Refinitiv.

    Sales in its product segment, which includes online retail sales, rose 2.9 per cent in the quarter, while those from services such as logistics and marketing jumped 21.9 per cent.

    JD.com said net income attributable to ordinary shareholders rose to 4.38 billion yuan, or 1.37 yuan per American Depository Share (ADS) for the three months ended June 30, from 794 million yuan, or 0.25 yuan per ADS, a year earlier.

    Peer Alibaba, beat expectations earlier this month even as it reported flat quarterly revenue growth for the first time in its history.

  • Alibaba to apply for primary listing in Hong Kong

    Alibaba to apply for primary listing in Hong Kong

    Alibaba will apply for a primary listing in Hong Kong and keep its US listing, the first big company to take advantage of a rule change allowing high-tech Chinese firms with dual-class shares to seek dual primary listings in Hong Kong.

    Shares in Alibaba rose 4 percent in Hong Kong upon market opening in response to the news.

    Already present on the Hong Kong bourse with a secondary listing since 2019, Alibaba said it expects the primary listing to be completed by the end of 2022. Chief Executive Daniel Zhang said the dual listing would foster a “wider and more diversified investor base.”

    Seeking a dual primary listing will also allow Alibaba to apply for the Stock Connect scheme that will permit Chinese mainland investors to buy the company’s shares more easily.

    The move comes after the Hong Kong Stock Exchange in January changed its rules to allow innovative Chinese companies with weighted voting rights or variable interest entities (VIE) to carry out dual primary listings in the city.

    Under a VIE structure, a Chinese company sets up an offshore entity for overseas listing purposes that allows foreign investors to buy into the stock.

    “Hong Kong is also the launchpad for Alibaba’s globalization strategy, and we are fully confident in China’s economy and future,” Alibaba CEO Zhang said in a statement.

    Alibaba listed on the New York Stock Exchange in September 2014, marking what was at the time the largest IPO in history.

    In order to switch to a dual primary listing, the HKEX said companies had to have a good track record of at least two full financial years listed overseas, and a capitalization of at least HK$40 billion (US$5.10 billion) or a market value of at least HK$10 billion plus revenue of at least HK$1 billion for the most recent financial year.