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Tag: exit

  • Beijing Liyuan Shakes Up Beauty Industry: Eyes Exit from Shiseido China Venture

    Beijing Liyuan Shakes Up Beauty Industry: Eyes Exit from Shiseido China Venture

    Beijing Liyuan is said to be planning a sale of its 35% stake in its longstanding cosmetics joint venture with Japanese beauty firm Shiseido. This decision would conclude a partnership that has spanned more than thirty years.

    According to information available on the China Beijing Equity Exchange, Beijing Liyuan is looking for a minimum of RMB199.5 million (US$29.3 million) for its stake in Shiseido Liyuan Cosmetics.

    Details of the Proposed Sale

    Shiseido China Investment, which owns the remaining 65% of the joint venture, has confirmed the planned sale. However, they haven’t specified if they plan on acquiring the stake.

    Shiseido Liyuan Cosmetics was established in 1991 with a focus on developing products specifically for Chinese customers.

    Their leading brand, Aupres, was exclusively designed for the Chinese market. Over the years, this brand became a significant part of Shiseido’s local strategy as the company expanded its operations throughout the country.

    The proposed sale is still in progress and remains subject to completion. Both Beijing Liyuan and Shiseido have refrained from disclosing any additional details about the transaction.

    Questions & Answers

    What is the proposed sale price for Beijing Liyuan’s 35% stake in Shiseido Liyuan Cosmetics?
    Beijing Liyuan is seeking at least RMB199.5 million (US$29.3 million) for its stake in Shiseido Liyuan Cosmetics.

    Who owns the majority stake in Shiseido Liyuan Cosmetics?
    Shiseido China Investment owns the majority stake, holding 65% of the joint venture.

    What is the significance of the Aupres brand in Shiseido’s strategy?
    The Aupres brand, which was exclusively created for the Chinese market, became a cornerstone of Shiseido’s local business strategy as the company expanded its presence across China.

  • Saks Globals Bankruptcy Exit: Promising Future or Audacious Overreach?

    Saks Globals Bankruptcy Exit: Promising Future or Audacious Overreach?

    Saks Global, a renowned luxury retailer, is inching closer to emerging from bankruptcy after a period of financial instability. The company’s reinvigoration has been fueled by securing new funds and successfully mending tenuous relationships with various brands. Despite these encouraging developments, industry analysts have expressed reservations regarding the retailer’s projected trajectory and its ability to fulfill its optimistic business promises.

    Securing New Funding and Making Progress

    Recently, Saks Global’s revised strategic plan received approval from a Texas court. Consequently, creditors can now cast their votes regarding the proposed strategy. The approval followed the retailer’s procurement of US$500 million in funds from its capital partners and its successful negotiation of a restructuring agreement with bondholders. Saks Global CEO, Geoffroy van Raemdonck, praised the remarkable progress made by his team in the past three and a half months.

    Van Raemdonck further highlighted the secured capital and the company’s growing momentum as important foundations for the company’s future. He expressed confidence in the company’s ability to invest in its customer experience, capabilities, and merchandise assortment, which will drive profitable growth for Saks Global and sustained revenue growth for its partners in the years ahead.

    Since its Chapter 11 bankruptcy filing in January, Saks Global has marked significant milestones, including a 6% increase in customer spend per store visit, an 11% increase in online conversion, and improved full-price selling across its luxury retail banners.

    High Expectations and Challenges

    Looking forward, Saks Global anticipates substantial growth. It expects to generate almost two times its current revenue by 2030, reaching a total gross merchandise value of US$9 billion. It also hopes to achieve double-digit adjusted EBITDA by that time. Such high expectations indicate that Saks Global’s revenue is projected to grow by about 5.5% from fiscal 2029 to 2030, amounting to nearly US$7.2 billion.

    While the retailer is currently projected to report a net loss of US$135 million for the fiscal year 2026, it hopes to swing back into profitability by fiscal year 2029 with a projected net income of US$99 million.

    To achieve these ambitious goals, Saks Global must also mend its vendor relationships, which have been strained largely due to non-payment for shipped merchandise. However, the company reported steady progress on this front, stating that close to 720 brands have resumed shipping and that it has released US$1.6 billion in retail receipts.

    Questions & Answers

    What is the strategic plan for Saks Global’s post-bankruptcy phase?
    Saks Global has secured new funding and is focused on strengthening its relationships with vendors. The company expects to generate US$9 billion in total gross merchandise value by 2030, close to double the expected revenue in 2026.

    What are the challenges faced by Saks Global in achieving its goals?
    To achieve its ambitious targets, Saks Global must first mend its strained vendor relationships caused by non-payment for shipped merchandise. Additionally, the company needs to manage a large debt load.

    How is Saks Global addressing its vendor relationship issues?
    Saks Global has reported steady progress in mending vendor relationships. It has stated that nearly 720 brands have resumed shipping and that it has released US$1.6 billion in retail receipts.

  • Heineken CEO Dolf van den Brink Announces Exit, Readies Company for Next Chapter of Growth

    Heineken CEO Dolf van den Brink Announces Exit, Readies Company for Next Chapter of Growth

    Heineken’s chief executive officer, Dolf van den Brink, has announced that he will be relinquishing his position on May 31, putting an end to his near six-year tenure as the leader of the renowned Dutch brewer.

    Career Overview of an Esteemed Leader

    Van den Brink boasts of a remarkable history with Heineken, spanning more than 28 years. During his time with the company, he climbed the corporate ladder to spearhead the organization through a global expansion phase and a crucial strategic reorientation. His forthcoming departure aligns with Heineken’s ongoing implementation of its EverGreen Strategy 2030, which concentrates on sustainability, premiumisation, and digital transformation across principal markets. Van den Brink has committed to continue providing guidance in an advisory capacity for eight months to ensure a seamless transition of leadership.

    In a statement on his LinkedIn account, van den Brink expressed his gratitude, saying, “Having the opportunity to lead Heineken has been the most significant honour of my professional life, and this decision was undoubtedly one of the most difficult I’ve had to make. Over the last six years, we have instigated a substantial transformation of the business and successfully delivered EverGreen 2025, all the while navigating a challenging external landscape. Having recently introduced the bold EverGreen 2030 strategy, I believe it’s the right time for a leadership shift to further actualize this vision.”

    Commendation and Succession Planning

    Peter Wennink, the chair of Heineken’s Supervisory Board, lauded van den Brink’s leadership and announced that the board is now initiating a global search for his replacement. Wennink stated, “The next phase will be centered around bringing this strategy to life through disciplined execution of our strategic growth ambitions. With this in mind, the Supervisory Board agrees it is the appropriate time to commence the succession process to secure robust leadership for the future.”

    However, Heineken has not yet disclosed a timeline for the appointment of its new CEO.

    In October, Heineken revealed a refreshed five-year plan that aims to drive growth with fewer resources by focusing on core brands and markets. Under this strategy, Heineken anticipates a mid-single-digit annual organic net revenue growth through 2030.

    Questions & Answers

    What is Dolf van den Brink’s tenure period with Heineken?
    Van den Brink has been with Heineken for more than 28 years, serving as CEO for nearly six years.

    What is the EverGreen Strategy 2030?
    The EverGreen Strategy 2030 is Heineken’s plan focusing on sustainability, premiumisation, and digital transformation across key markets.

    What does Heineken’s updated five-year plan entail?
    Heineken’s updated five-year plan targets growth with fewer resources by concentrating on key brands and markets, expecting a mid-single-digit annual organic net revenue growth through 2030.

  • Tim Hortons Philippines Squashes Exit Rumors Amid Store Closures And Menu Changes

    Tim Hortons Philippines Squashes Exit Rumors Amid Store Closures And Menu Changes

    TH Coffee Services Philippines Corporation, the Philippine operator of the Canadian coffee chain Tim Hortons, has quashed rumors that it plans to exit the Philippines market. These speculations came about after several customers observed store closures and a reduced product line at multiple locations.

    Store Closures Stir Speculation

    Discussions about certain Tim Hortons outlets shutting down recently gained traction on social media. Notably, customers reported that the Uptown Mall branch in BGC had closed down. Similarly, others indicated that the outlets in SM Bacoor and SM Fairview had also ceased operations.

    Changes in Product Offerings

    Apart from the store closures, the company also sparked speculation when it discontinued its usual range of doughnuts, muffins, eclairs, and crullers last year. These items were traditionally imported from its Canadian factory. In a shift towards local sourcing, the coffee chain now offers breakfast sandwiches and pastries made locally, in addition to its coffee selection.

    Despite these changes, Tim Hortons continues to be a popular choice among local coffee enthusiasts. One customer said, “Tim Hortons is one of my go-to coffee places in Manila. But I’ve noticed in the past few weeks that their stores are slowly decreasing. It’s a shame if they disappear completely.”

    Tim Hortons Philippines Affirms Market Presence

    In light of these developments, Tim Hortons Philippines was quick to address the rumors. Enrique Yap Jr., CEO of TH Coffee Services, made it clear that the company had no intention of leaving the Philippines market. “We’ve heard the buzz regarding Tim Hortons closing in the Philippines, but rest assured, we’re not going anywhere. Our dedication to quality and service is stronger than ever,” he affirmed.

    Tim Hortons first entered the Philippine market in 2016.

    Questions & Answers

    What prompted the speculation about Tim Hortons exiting the Philippines market?
    The speculation started due to some observed store closures and a change in the product offerings of Tim Hortons in the Philippines.

    Has Tim Hortons Philippines confirmed its plans to exit the market?
    No, the company has categorically denied any plans to exit the Philippines market.

    What changes has Tim Hortons Philippines implemented in its product offerings?
    The company has discontinued its traditional range of imported baked goods and replaced them with locally sourced breakfast sandwiches and pastries.

  • Bata’s First Indian Ceo, Sandeep Kataria, Steps Down; Panos Mytaros Steps Up As Global Successor

    Bata’s First Indian Ceo, Sandeep Kataria, Steps Down; Panos Mytaros Steps Up As Global Successor

    Sandeep Kataria, the Chief Executive Officer of Bata, has announced that he will be resigning from his role in September to seek fresh prospects. The departure will coincide with the appointment of Panos Mytaros as the corporation’s new Global CEO.

    Transition of Leadership

    Kataria, who started his tenure with the Switzerland-based footwear company in 2020, was the first Indian to spearhead the brand, which has been in business for 130 years. During his time with Bata, Kataria played a crucial role in modernizing its global operations. His tenure witnessed a significant transformation of the brand, including a revamped identity, streamlined operations, and a shift towards digital and design-led innovation.

    In a highly competitive and digital-dominated retail landscape, Kataria was credited for enhancing Bata’s market positioning across Asia, Africa, and Europe. The company expressed deep appreciation for his contributions, emphasizing his tireless dedication to the people and his passion for the Bata brand.

    Looking back at his time with the company, Kataria portrayed Bata as “a community, a legacy, and a force for good,” expressing that leading the team was one of the most significant privileges of his life. It is expected that Kataria will remain with the company for several months to facilitate a smooth leadership transition.

    Appointment of New Global CEO

    The new Global CEO, Panos Mytaros, is an industry veteran with over 30 years of experience in the footwear and leather industry. Prior to his appointment at Bata, he held the position of CEO at the Danish shoe company, Ecco.

    Graham Allan, the chairman of Bata, praised Mytaros for his deep industry knowledge and passion for footwear craftsmanship. “His track record in brand building and developing compelling footwear collections, as well as in leading complex international organizations, made him the ideal candidate to guide Bata through our next phase of growth,” Allan added.

    About Bata

    Bata, established in 1894 in the present-day Czech Republic, continues to be a family-owned business. The company sells approximately 150 million pairs of shoes annually under roughly 20 brands, including Bata, North Star, and Power.

    In India, Bata operates over 1960 stores, selling roughly 50 million pairs annually. This makes it the country’s leading footwear company in terms of both revenue and volume.

    Questions & Answers

    Who is replacing Sandeep Kataria as the CEO of Bata?
    Panos Mytaros, previously the CEO of the Danish shoe company Ecco, will replace Sandeep Kataria as the CEO of Bata.

    What significant changes did Sandeep Kataria bring about in Bata during his tenure?
    During his tenure, Kataria led a significant transformation of the brand, including a revamped identity, streamlined operations, and a shift towards digital and design-led innovation. He also helped enhance Bata’s market positioning across Asia, Africa, and Europe.

    What is Bata’s standing in the Indian market?
    With more than 1960 stores and approximately 50 million pairs of shoes sold annually, Bata is the largest footwear company in India by both revenue and volume.

  • Gojek to exit Vietnam

    Gojek to exit Vietnam

    Indonesian ride-hailing and delivery company Gojek has announced it will stop operating in Vietnam starting Sept. 16 after 6 years in the market.
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    It said the decision, made by its parent company GoTo after assessing its market presence in Vietnam, aims to strengthen business operations and aligns with the company’s long-term growth strategy.

    “We will provide the necessary support to all affected parties and comply with current regulations and laws throughout this transition.”

    Gojek was founded in 2010 with a focus on delivery and ride-hailing services, and its app was launched in January 2015 in Indonesia.

    Since then it has grown to become that country’s leading on-demand service platform.

    It entered Vietnam in 2018 as GoViet, which merged with the Gojek brand in 2020.

    It offers two-wheel (GoRide) and car (GoCar) rides, food delivery (GoFood) and parcel delivery (GoSend), and operates in HCMC and Hanoi and Binh Duong and Dong Nai provinces.

    According to market research company Mordor Intelligence, Vietnam’s ride-hailing market is expected to be worth US$880 million in 2024 and grow to $2.16 billion by 2029.

    Another market research company, Q&Me, found that 42% of users in Vietnam favor Grab for motorbike rides followed by Be with 32% and Xanh SM with 19%. Only 7% said they frequently use Gojek.

    With the Vietnamese operations accounting for less than 1% of GoTo’s gross transactions in the second quarter of this year, the exit from the market is expected to have little impact on its financial situation.

    Gojek previously pulled out of Thailand in 2021 and is focusing on its home market and Singapore.

    In Indonesia, Gojek’s gross transaction value increased by 18% year-on-year in the second quarter of this year while its number of completed orders rose 24% to reach record levels. It also saw a 3 percentage point increase in market share in Singapore.

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  • Indian motorcycle maker Royal Enfields bids goodbye to Vietnam

    Indian motorcycle maker Royal Enfields bids goodbye to Vietnam

    Indian motorbike maker Royal Enfield is pulling out of Vietnam after a disappointing four-year run.

    Al Naboodah International, the official distributor of the brand, said the decision was made since business results did not meet expectations.

    It said since Royal Enfield vehicles are imported from India they do not get import tax waivers like other brands such as Honda, Ducati and Kawasaki, which are shipped from Thailand.

    Another reason for the poor sales was that the retro and classic designs of Royal Enfield motorcycles were not popular in Vietnam, it said.

    It did not disclose sales figures.

    But it assured that warranty and maintenance services would continue uninterrupted.

    Al Naboodah International also represents also two other brands, Triumph and Harley Davidson, in Vietnam.

    Royal Enfield was originally the U.K.’s Enfield Cycle Company Limited established in 1901.

    In 1955, it and its Indian partner, Madras Motors, founded Enfield of India with a factory in Chennai that produced the first batch of 800 Royal Enfield Bullet 350 cc engines for the Indian government.

    When Royal Enfield ceased operations in the U.K. in 1967, Enfield of India continued to operate and was acquired by tractor and commercial vehicle manufacturer Eicher Group Limited (India) in 1994.

    The company later changed the name to Royal Enfield Motors Limited.

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  • Standard Chartered to Exit Thai Retail Banking Next Year

    Standard Chartered to Exit Thai Retail Banking Next Year

    Standard Chartered Plc plans to transfer its Thai retail-banking business to Thailand’s Tisco Financial Group Pcl next year, exiting an operation that the U.K. lender said lacked the scale to generate adequate returns.

    The net asset value is about 5.5 billion baht ($153 million), according to a stock exchange filing by Tisco on Thursday, which didn’t disclose a price for the deal. Tisco shares climbed to a record.

    Standard Chartered will continue to operate corporate, institutional and commercial banking businesses in Thailand, but the small size of the retail operation made it “increasingly difficult to achieve the returns that we aspire to,” the lender’s Thai head, Plakorn Wanglee, said in a press release.

    “It’s very tough to survive in Thailand’s retail-banking business for small players with very fierce competition,” Isara Ordeedolchest, an analyst at SCB Securities in Bangkok, said by phone. “The outlook for banks should improve significantly in 2017 as a consumption recovery and higher government spending will spur economic growth.”

    The Asia-focused Standard Chartered is targeting a turnaround after last year posting its first annual pretax loss since 1989. In a sign that the Thai operations were not a bright spot, the bank in February recorded a $126 million goodwill impairment on its business in the country.

    One unit of Tisco Financial, Tisco Bank Pcl, will take over operations including personal lending, mortgages and deposits, while another, All-Ways Co., will take over the credit-card business, the exchange filing said. The deal is subject to approvals.

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  • Ford’s exit from Indonesia upsets its dealers

    Ford’s exit from Indonesia upsets its dealers

    Ford’s dealers in Indonesia are now seeking to recoup their losses after the automaker said earlier this year it would close all operations in the country.

    Ford has been struggling to gain market share and to make some reasonable profits in Indonesia since its entrance in the market in 2002. Recent years have been especially challenging, as the country’s new car market started to be affected by the overall economic slowdown. At the beginning of the year, the Detroit-based automaker said it decided to exit from all segments of business, including closing dealerships and stopping sales and imports of Ford and Lincoln vehicles. The company made a similar decision for Japan as well.

    Reuters reports that dealers are now looking to get around 75 million dollars in compensation, looking to take their demands to court if they are not reaching an agreement with the automaker. They are claiming they made considerable investment in their businesses to support an expansion plan that Ford announced in 2011, but which never came. When it announced the shutdown back in January, Ford said it would start talks with its dealers to implement its exit plan later in the year.

    The automaker has a staff of 35 and sells its cars through 44 franchised dealerships in Indonesia, while last year it delivered around 6,000 vehicles, taking a 0.6 percent share of the total new car market. General Motors also decided to close its production operations at a local plant in Indonesia in 2015, ceasing output of locally manufactured GM-branded autos, forced by the intense competition from the Japanese brands, such as Toyota and Honda.

  • Tesco food chief exits

    Tesco food chief exits

    Tesco’s in-store restaurant and cafe concepts may be doomed after the man heading the division exited the company this week.

    Analysts are interpreting the departure of Michael Holmes, who headed the Tesco food division, as an admission the concepts had failed.

    Giraffe restaurants and Harris + Hoole cafe chains were opened in a number of larger Tesco supermarkets in the UK as part of former CEO Philip Clarke’s strategy to draw customers back to its stores. Holmes also oversaw Euphorium bakeries and Decks, an in-store restaurant created by Tesco.

    The grocer paid £50 million to buy Giraffe and took a strategic stake in Harris + Hoole. Harris + Hoole reportedly lost £13 million in the year to February 2014 and Giraffe is understood to have also been booking losses.

    Critics of the former Tesco CEO have long said the company should be focusing its investment on cutting prices and improving product quality, focusing on the core grocery business instead of such initiatives like in-store cafes and restaurants.

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