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Tag: #growth

  • Thailand Struggles with Lowest Economic Growth Amid Southeast Asian Titans: Rising Energy Prices Blamed

    Thailand Struggles with Lowest Economic Growth Amid Southeast Asian Titans: Rising Energy Prices Blamed

    Thailand’s economy, one of the six largest in Southeast Asia, experienced sluggish growth in the second quarter, trailing behind its regional counterparts. The meager 1.9% growth rate, as compared to the first quarter’s 2.8% expansion, was largely influenced by surging energy prices that counterbalanced the benefits of increased investment and government stimulus.

    The National Economic and Social Development Council revealed these figures, highlighting Thailand’s struggle to keep pace with the rest of the ASEAN economies. Regional frontrunners included Vietnam with an impressive 8.39% growth, followed by Singapore (5.9%), Malaysia (5.8%), and Indonesia (5.29%). The Philippines also outperformed Thailand, reporting a growth of 2.3%.

    Government Initiatives and External Factors Impact Growth

    Despite the Thai government’s attempts to bolster the economy with 400 billion baht in emergency loans, facilitating cash handouts and energy-transition projects, economic growth remained stagnant. The country’s prime minister, Anutin Charnvirakul, has been grappling with this economic slowdown amidst a complex interplay of domestic and international factors.

    Being heavily dependent on the Middle East for its oil and gas needs, Thailand’s economy has been significantly impacted by disruptions in supply chains stemming from the Iran war. This external pressure has been further compounded by weakened domestic demand and a dip in tourism, two of Thailand’s main GDP contributors. Increased energy costs have put a strain on household spending and business activities, resulting in subdued economic activity throughout the second quarter.

    Future Projections and Comparative Analysis

    Predictions from the National Economic and Social Development Council indicate a slight improvement in the economy, with an expected growth range of 2% to 2.5% in 2026. The Bank of Thailand shares a similar sentiment, stating that the economy hit its lowest point in the second quarter and is likely to rebound in the third, thanks to easing Middle East tensions and the implementation of government stimulus measures.

    In comparison, other Southeast Asian economies have set more ambitious targets. Vietnam is eyeing a 10% GDP growth this year, while Singapore has revised its forecast to 4.5%-5.5%, surged by a strong second-quarter performance.

    Questions & Answers

    What factors contributed to Thailand’s slow economic growth in the second quarter?
    Higher energy prices, disruptions in oil and gas supply from the Middle East, and decreased domestic demand and tourism have contributed to Thailand’s slow growth.

    What measures has the Thai government taken to boost the economy?
    The government has initiated an emergency borrowing of 400 billion baht to fund cash handouts and energy-transition projects.

    What are the growth projections for Thailand’s economy in 2026?
    The National Economic and Social Development Council predicts that the economy will grow between 2% to 2.5% in 2026.

  • China’s Telecom and Pay-TV Revenue Set for Steady Growth, Fueled by 5G and IoT Innovations: 2030 Forecast

    China’s Telecom and Pay-TV Revenue Set for Steady Growth, Fueled by 5G and IoT Innovations: 2030 Forecast

    Revenues generated from telecommunications and pay-TV services in China are set to witness a moderate compound annual growth rate (CAGR) of 1.3% from 2025 to 2030. This growth can be primarily attributed to innovative developments in mobile data and fixed broadband sectors.

    Telecommunications Revenue Forecast

    While the revenues from mobile voice services are expected to experience a downward trend during this period, mobile data service revenues are projected to rise. The declining trend in mobile voice services can be linked to mobile operators packaging voice minutes along with their 5G data plans, a shift in consumer preferences towards Over the Top (OTT) and internet-based communication applications, and a decrease in average revenue per user (ARPU) for voice services.

    On the other hand, the revenues from mobile data services are projected to increase at a CAGR of 4.2%, driven by a constant rise in 5G subscriptions and an ensuing boost in mobile data ARPUs. This growth in mobile data revenue is also expected to benefit from an increase in mobile internet usage and the widespread use of digital and video streaming services facilitated by premium mobile data offerings from mobile network operators (MNOs).

    Subscriptions to machine-to-machine (M2M) and Internet of Things (IoT) services are anticipated to consistently grow between 2025 and 2030, driven by advancements in 5G network infrastructure, smart city projects, industrial automation, and the focus of telecom companies and the government on new M2M/IoT applications.

    Fixed Communication and Pay-TV Services

    In the fixed communication services sector, revenues from fixed voice services are likely to decrease due to a drop in circuit-switched subscriptions and lower fixed voice ARPU. Conversely, the revenues from fixed broadband services are anticipated to increase, fueled by a growing number of users adopting higher-ARPU fiber broadband services and enhancements in gigabit networks nationwide.

    While the growth in cable TV and IPTV segments is projected to be minimal, the total revenue from pay-TV services in China is expected to experience a slight decline due to falling ARPU levels as consumers increasingly turn towards OTT and on-demand streaming platforms.

    Questions & Answers

    What are the factors driving the growth of telecommunications revenues in China?
    The growth of telecommunications revenues in China is largely propelled by advancements in mobile data and fixed broadband sectors, alongside a steady rise in 5G subscriptions and mobile data ARPUs.

    How is the fixed communication services sector expected to perform between 2025 and 2030?
    While revenues from fixed voice services are forecasted to decrease, revenues from fixed broadband services are predicted to grow, driven by an increasing number of users adopting higher-ARPU fiber broadband services and nationwide gigabit network enhancements.

    What is the projected trend for the pay-TV services in China?
    The total revenue from pay-TV services in China is expected to experience a slight decline due to falling ARPU levels as consumers increasingly shift towards OTT and on-demand streaming platforms.

  • AI Revolution Fuels Unprecedented Growth in Data Center Infrastructure Market

    AI Revolution Fuels Unprecedented Growth in Data Center Infrastructure Market

    As the race to deploy artificial intelligence (AI) intensifies, businesses are investing not just in servers but also in electrical distribution, thermal management, liquid cooling, racks, and containment systems. These components form the pivotal infrastructure of AI-ready data centers, designed to handle power-intensive computing environments.

    This trend is reflected in the recent surge in the global data center physical infrastructure (DCPI) market, which hit a revenue of $12 billion during the first quarter of 2026, marking a 28% year-on-year growth. This follows five consecutive quarters of over 20% market growth, highlighting the continued investment in power and cooling infrastructures to meet the high demand for AI.

    AI Infrastructure: A New Race Begins

    The infrastructure required for AI differs significantly from previous cloud expansions. It demands significantly greater investments in power distribution, thermal management, cooling technologies, and facility engineering. Infrastructure spending per data hall is also increasing due to the need for higher rack densities, larger GPU clusters, and more electricity.

    Major tech companies including Microsoft, Google, Amazon Web Services (AWS), Oracle, and Meta have announced substantial investments in AI infrastructure in the past two years. These initiatives include AI-optimized data centers, extended cloud regions, and dedicated GPU infrastructure to meet the growing enterprise demand for AI applications.

    NVIDIA has popularized the concept of “AI factories”; large-scale computing environments optimized for AI training and inference, where components like computing, networking, storage, power, and cooling are integrated. This concept reflects the industry-wide shift towards facilities specifically constructed for AI workloads.

    AI model training and inference require densely packed GPU clusters operating at high utilization, placing unprecedented demands on electrical systems and cooling infrastructure. In light of this, operators are rethinking traditional data center architecture.

    Power Infrastructure Moves to the Center Stage

    Thermal management grew nearly 50% year over year in the first quarter of 2026. With AI deployments driving higher rack power densities, there is an increasing demand for advanced cooling technologies such as direct liquid cooling (DLC) to maintain performance and operational efficiency.

    As rack densities increase, conventional air cooling is becoming less practical for many high-performance AI deployments. Hence, hyperscale cloud providers are increasingly deploying liquid-cooling technologies for AI infrastructure.

    Access to power is becoming increasingly critical to where new AI facilities are constructed. Grid constraints, permitting timelines, and utility capacity are now key considerations for developers. This trend is driving greater investment in electrical infrastructure, including modular power systems, intelligent energy management platforms, and grid-resilient backup solutions.

    Reflecting evolving market requirements, heat rejection has emerged as a newly tracked segment within the DCPI market, contributing approximately $1 billion to its market measurement. This shift in data center design is leading operators to integrate thermal management into the overall facility architecture to improve efficiency, reliability, and long-term scalability.

    Questions & Answers

    What is driving the increased investment in AI infrastructure?

    Increased use of AI applications is driving the need for more robust and efficient data centers to support these power-intensive operations. This is leading to significant investments in components such as power distribution, thermal management, cooling technologies, and facility engineering.

    How are major tech companies responding to the demand for advanced AI infrastructure?

    Major tech companies, including Microsoft, Google, Amazon Web Services, Oracle, and Meta, have announced significant investments in AI-optimized data centers, extended cloud regions, and dedicated GPU infrastructure.

    How is the design of data centers evolving to meet the demands of AI?

    Operators are rethinking traditional data center architecture to accommodate densely packed GPU clusters that operate at high utilization. They are also increasingly integrating thermal management into the overall facility architecture, reflecting the growing importance of energy-efficient infrastructure.

  • Samsonite Secures 85% Stake in Celebrity-Founded Béis: Spearheading Digital Growth with $178.5M Deal

    Samsonite Secures 85% Stake in Celebrity-Founded Béis: Spearheading Digital Growth with $178.5M Deal

    Global luggage leader, Samsonite Group, recently announced a deal to acquire the travel brand, Béis. This California-based company, established by the Canadian actor Shay Mitchell, will sell 85 percent of its stake to Samsonite for a whopping US$178.5 million. The agreement is slated to culminate in the fourth quarter of 2026, pending the necessary approvals.

    Social Media Alignment and Future Prospects

    Samsonite, listed on the Hong Kong Exchange, shares that Béis’ combined user following, which numbers more than two million across TikTok and Instagram, matches their aim of boosting digital fluency. Samsonite’s CEO, Kyle Gendreau, extends a warm welcome to Béis, expressing his enthusiasm about the valuable addition to their family of inventive and influential brands.

    Gendreau foresees a wealth of opportunities to expedite Béis’ long-term expansion while retaining the brand’s entrepreneurial spirit, inventiveness, and robust identity that have been instrumental in its success since inception.

    From Dream to Reality

    Béis was conceived by Shay Mitchell, best known for her role in the long-standing drama series ‘Pretty Little Liars’, with the vision of offering affordable and functional luggage. Mitchell, who currently holds the position of chief creative officer at Béis, considers this development as the realization of a dream.

    Mitchell takes pride in her small but capable team’s achievement over the past eight years, expressing that joining forces with Samsonite Group allows them to dream bigger. She views Samsonite as the ideal partner, where their strengths complement each other, offering Béis avenues for growth that would have been impossible single-handedly.

    In 2025, Béis reportedly raked in about $210 million in revenue. With this acquisition, Samsonite intends to proliferate its footprint into fresh international markets. Béis’ existing leadership team will continue in their roles, with Mitchell holding onto a 15 percent stake. Beach House Group, Béis’ majority shareholder, will sell its stake as part of the deal.

    Questions & Answers

    What is the stake that Samsonite Group is acquiring in Béis?
    Samsonite Group is acquiring an 85 percent stake in Béis.

    Who is the founder of Béis and what role does she currently hold in the company?
    Béis was founded by Canadian actor Shay Mitchell, who serves as the company’s chief creative officer.

    What is Samsonite’s plan for Béis following the acquisition?
    Samsonite plans to extend Béis’ reach into new international markets while preserving the brand’s identity and creativity.

  • Cambodia’s Trade Flourishes: $44B Turnover in 7 Months Marks 21.3% YoY Growth

    Cambodia’s Trade Flourishes: $44B Turnover in 7 Months Marks 21.3% YoY Growth

    Cambodia’s trade activity demonstrated remarkable growth in the first seven months of 2026, with a 21.3% increase in year-on-year total trade, reaching $44.07 billion. This surge came alongside a widening trade gap of $2.44 billion, a rise from the previous year’s deficit of $1.99 billion.

    This surge is attributed to an uptick in both exports and imports, which rose by 21.3% and 21.4% respectively. According to recent data from Cambodia’s General Department of Customs and Excise (GDCE), exports amounted to $20.81 billion, while imports were slightly higher, totaling $23.26 billion.

    Cambodia’s Trade Relations

    The data further revealed that China remained Cambodia’s most valuable trading partner. Trade activities between the two nations escalated by 23.9%, amassing $13.63 billion. Exports to China saw a 24.2% increase, translating to $1.1 billion, which indicates a robust demand for Cambodian goods. On the other hand, imports from China also saw a boost, rising by 23.8% to reach $12.52 billion.

    Apart from China, Cambodia also enjoyed a profitable trade surplus with the United States. Bilateral trade with the U.S. soared by 32.2%, amounting to $9.42 billion. This surge was primarily driven by a 30.6% increase in Cambodian exports to the U.S., particularly in sectors such as garments, footwear, and other manufactured products, which totaled $9.05 billion. Simultaneously, imports from the U.S. more than doubled, showcasing an 87% rise and hinting towards an expansion of bilateral trade relations.

    Trade activity with Vietnam also saw an enhancement, growing by 8.2% to reach $5.35 billion. Exports to Vietnam rose by 12.4%, yielding $2.73 billion, while imports amounted to $2.62 billion, showing a 4.2% increase.

    Questions & Answers

    What is the total value of Cambodia’s trade in the first seven months of 2026?
    The total value of Cambodia’s trade in the first seven months of 2026 is $44.07 billion, marking a 21.3% increase from the previous year.

    Who are Cambodia’s main trading partners?
    Cambodia’s main trading partners are China, the United States, and Vietnam.

    What factors contributed to the surge in bilateral trade between Cambodia and the U.S.?
    The surge in bilateral trade between Cambodia and the U.S. is largely attributed to a significant increase in Cambodian exports, particularly in garments, footwear, and other manufactured products.

  • Hong Kong Retail Market Records 14th Month of Sturdy Growth, Despite Slight Cool-Off

    Hong Kong Retail Market Records 14th Month of Sturdy Growth, Despite Slight Cool-Off

    In June, Hong Kong saw an impressive rise in retail sales, with a 4.6% increase compared to the same month in the previous year. This resulted in a total of HK$31.5 billion (US$4.02 billion) in sales, signifying a consistent growth pattern for the 14th consecutive month according to government statistics released on Tuesday.

    Continued Growth Despite Global Economic Conditions

    The positive trend in Hong Kong’s retail market continued in June, with growth observed across various retail categories. For instance, retail sales in May saw a substantial rise of 7.9% on a year-on-year basis. When assessing the volume of sales, a 2.3% increase was recorded in June, compared to a 4.8% increase in May.

    For the initial half of the year 2026, the cumulative retail sales value showed an increase of 9.6% from the same period in the previous year. In terms of volume, there was a 7.2% rise in retail sales.

    A government official attributed this growth trend to factors like the ongoing economic expansion, rising local incomes, and a steady influx of inbound tourists. However, the spokesperson also acknowledged that global conditions pose a potential risk to local consumption patterns, which will be closely monitored by the government.

    Visitor Influx and Varied Category Performance

    In terms of inbound tourism, there was a 6.9% year-on-year increase in visitor arrivals in June, totaling 3.72 million visitors, as per data provided by the Hong Kong Tourism Board. Remarkably, visitor arrivals from mainland China surged by 10.5% to 2.88 million.

    The sales of lucrative items such as jewelry, watches, clocks, and other valuable gifts saw a substantial jump of 20.1% in June, following a revised growth rate of 26% in May. However, not all retail categories shared this upward trend. Sales of motor vehicles and parts experienced a decrease of 4.3% in June, following a modest growth of 1.8% in the previous month.

    However, sales of clothing, footwear, and related products saw a slight increase of 0.5% in June, following a revised May gain of 2.6%.

    Questions & Answers

    What was the percentage increase in retail sales in Hong Kong in June?
    The retail sales in Hong Kong saw a 4.6% increase in June compared to the same period the previous year.

    What factors contributed to the growth in the retail sector according to government officials?
    Government officials attributed the growth in the retail sector to ongoing economic expansion, rising local incomes, and a steady influx of inbound tourists.

    How did visitor arrivals from mainland China influence the retail sector in June?
    Visitor arrivals from mainland China surged by 10.5% to 2.88 million in June, indicating a potential positive impact on the retail sector due to increased consumer spending.

  • Hermès Witnesses Stellar Growth in Asia, Japan Leads Charge with 11% Sales Increase

    Hermès Witnesses Stellar Growth in Asia, Japan Leads Charge with 11% Sales Increase

    Luxury goods retailer Hermès has reported a notable surge in sales for the first half of this fiscal year, with the Asian market, particularly Japan, demonstrating substantial performance.

    During the six-month period ending in June, the company garnered a revenue of €8.2 billion (US$9.39 billion), marking a growth of 6 per cent at constant exchange rates and 2 per cent at current exchange rates. The second quarter of the year witnessed a 7 per cent increase in sales at constant exchange rates, hitting €4.1 billion.

    Geographical Growth

    Although all regions exhibited growth, the Middle East was an exception, suffering the repercussions of ongoing turmoil. In Asia, Japan emerged as the region with the highest growth, witnessing an 11 per cent surge in sales in constant currency. This impressive performance was primarily backed by significant customer inflow and consistent customer loyalty. Following the expansion and renovation of Osaka’s Hilton Plaza East store in May, Hermès introduced its new store in Nagoya in June.

    Other Asian markets, including Greater China and South Korea, experienced a 2 per cent growth. In January, the company opened a store in Hanoi, subsequently launching the new Sanlitun store in Beijing and reopening the Hong Kong Elements and Taipei Sogo Fuxing stores in April.

    Sales in the Americas rose by 15 per cent, France saw a 2 per cent improvement, and Europe excluding France reported a 9 per cent growth. In contrast, the Middle East experienced a 4 per cent decline in sales. Despite the unstable geopolitical climate, Hermès noted that the market demonstrated resilience, with the second quarter showing signs of gradual recovery.

    Sales by Category

    In terms of product categories, both leather goods and textiles segments posted sales growth of 10 per cent. The ready-to-wear and accessories sector observed a modest 2 per cent increase, while perfume and beauty suffered a 4 per cent decline. Watch sales remained steady.

    From a financial perspective, the recurring operating income rose slightly to €3.4 billion, whereas the consolidated net profit remained steady at €2.2 billion.

    Looking ahead, Hermès confirmed its medium-term revenue growth outlook at constant exchange rates, despite the prevalent economic, geopolitical and monetary uncertainties.

    Questions & Answers

    What were Hermès’ first-half fiscal year sales results?
    For the first half of the fiscal year, Hermès reported strong sales growth, particularly in Asian markets, with revenue totalling €8.2 billion (US$9.39 billion).

    How did Hermès perform in different geographical markets?
    The company witnessed growth in all regions except the Middle East. The Americas reported a 15 per cent increase in sales, France a 2 per cent rise, and Europe excluding France a 9 per cent growth. Asian markets, particularly Japan, demonstrated significant performance.

    How did different product categories at Hermès perform?
    Leather goods and textiles witnessed a sales growth of 10 per cent, ready-to-wear and accessories experienced a slight 2 per cent increase, while perfume and beauty saw a 4 per cent decline. Watch sales remained stable.

  • Authentic Brands Group Boosts Nautica and Spyder Growth in China with New Operating Partner, Shanghai Hui Zhong

    Authentic Brands Group Boosts Nautica and Spyder Growth in China with New Operating Partner, Shanghai Hui Zhong

    Authentic Brands Group has announced Shanghai Hui Zhong as its primary operational partner for the Nautica and Spyder brands in mainland China, Hong Kong, and Macau. The new appointment aims to bolster the brands’ growth trajectory in these regions.

    Strengthening Local Operations

    Shanghai Hui Zhong will be responsible for managing local operations, encompassing supply chain management, wholesale distribution, and the operation and expansion of the brands’ physical retail stores. Leveraging its understanding of the local market and its robust distribution channels, the company will support the expansion of Nautica and Spyder in the region.

    The partnership, according to Authentic, is a strategic blend of its global brand development platform with Hui Zhong’s local capabilities. This is expected to reinforce Nautica’s and Spyder’s presence in the Chinese market.

    Authentic stated, “This partnership demonstrates our continued dedication to collaborating with top-tier partners to extend the reach and influence of our global brands in the Chinese market. Through global brand management and localized operations, Authentic and Huizhong will cooperate to unveil new growth avenues for Nautica and Spyder in China.”

    Transition from Tristate Holdings

    Since 2018, Tristate Holdings had maintained the management of Nautica and Spyder in China through licensing agreements with Authentic Brands Group. This agreement was extended through December 2032 for Nautica following amendments to the licensing agreements in 2021.

    According to the 2025 annual report, Nautica’s revenue saw a 12% decrease year over year, and Spyder’s experienced a 24% drop due to weakened consumer spending affecting China’s retail market. This led to the company optimizing its store network, ending 2025 with 70 directly managed Nautica stores, 44 partner stores, and 42 Spyder stores spread across China.

    Tristate recently disclosed in a Hong Kong Stock Exchange filing that Authentic had issued notices to terminate the Nautica and Spyder license agreements, which are still under legal proceedings. Authentic did not comment on the status of its licensing arrangements with Tristate in its announcement of the Shanghai Hui Zhong partnership.

    Earlier in the year, Authentic had also chosen NewRee Sports as Reebok’s main operating partner for mainland China, Hong Kong, and Macau, marking a shift in the brand’s operating structure in the region.

    Questions & Answers

    Who has been chosen as the new operating partner for Nautica and Spyder in mainland China, Hong Kong, and Macau?
    Shanghai Hui Zhong has been selected as the new operating partner for these brands in the specified regions.

    What led to the decline in Nautica’s and Spyder’s revenues in 2025?
    The brands’ revenues were impacted by weakened consumer spending in China’s retail market.

    Who was previously managing Nautica and Spyder in China?
    Prior to the new appointment, Tristate Holdings held the management responsibilities for these brands under a licensing agreement with Authentic Brands Group.

  • Surge in Electric Vehicle Sales: Vietnam Outpaces Southeast Asia with 71% Growth

    Surge in Electric Vehicle Sales: Vietnam Outpaces Southeast Asia with 71% Growth

    During the first half of this year, Vietnam emerged as the leader in Southeast Asia for battery electric vehicle (BEV) sales, with 115,986 units sold. This impressive figure marked a 71% increase compared to the previous year. Furthermore, BEVs accounted for 35.3% of all new vehicles sold, thereby claiming the highest share in the region’s four largest automotive markets – Vietnam, Indonesia, Malaysia, and Thailand.

    Leading BEV Players

    VinFast, Vietnam’s top automotive brand across all vehicle categories, was responsible for the vast majority of the BEVs sold during this period. A small number of sales were attributed to Ford’s Mustang, while some electric vehicle manufacturers did not disclose their specific sales figures.

    BEVs, vehicles powered solely by electricity, stand out from hybrids, which utilize both electricity and gasoline. In Vietnam, BEVs are bolstered by an exemption from registration fees and a favorable 3% special consumption tax, both in effect until the end of 2030.

    Regional BEV Market Overview

    Thailand followed closely behind Vietnam in BEV sales, with a total of 104,418 vehicles sold. Nonetheless, it exhibited the quickest growth rate among the region’s four largest markets, posting a 91% increase.

    In Indonesia, which continues to hold the title of Southeast Asia’s biggest auto market, BEVs made up 16% of new vehicle sales in the first half of the year. Chinese auto manufacturers BYD, Aion, and MG collectively boasted the largest share of Indonesia’s BEV market. According to local auto news outlet DetikOto, the top ten best-selling BEV models in the country all originated from Chinese automakers such as BYD, Jaecoo, and Geely.

    Meanwhile, VinFast sold 1,934 vehicles in Indonesia, with their mini SUV VF 3 model accounting for 1,355 of these sales.

    Despite reporting the lowest BEV sales among the four major markets, Malaysia achieved an 85% growth rate, the second-fastest in the region following Thailand.

    Questions & Answers

    Which country led Southeast Asia in BEV sales in the first half of the year?
    Vietnam led Southeast Asia in battery electric vehicle (BEV) sales during the first half of this year.

    What contributed to the substantial growth of BEVs in Vietnam?
    The growth of BEVs in Vietnam can be attributed to the country’s policy incentives, including an exemption from registration fees and a 3% special consumption tax.

    Which country showed the fastest growth rate in BEV sales among the four largest markets in Southeast Asia?
    Thailand posted the fastest growth rate among the region’s four largest automotive markets.

  • Kering Bounces Back with Revenue Growth in Q2 Amidst Operational Changes

    Kering Bounces Back with Revenue Growth in Q2 Amidst Operational Changes

    The luxury group Kering has reported an upturn in its performance for Q2, indicating a return to revenue growth. CEO Luca de Meo has attributed this encouraging development to the early signs of progress across Kering’s portfolio, following recent operational and commercial modifications.

    Kering’s revenue for the second quarter reached $4.16 billion, a 1% year-on-year increase, bolstered by an improved retail performance. Comparable sales from directly operated stores witnessed a 2% surge, while wholesale and other avenues of revenue saw a 3% increase. De Meo expressed his satisfaction with Kering’s improved Q2 performance, pointing out the sequential acceleration of growth within the organization, including its Gucci brand, thanks to concerted actions carried out in recent months.

    However, for the first half of the year, revenue stood at $8.22 billion, marking a 3% dip compared to the previous year. On a more positive note, recurring operating income hit the $1.04 billion mark, and the recurring operating margin saw an improvement, reaching 12.8%.

    Kering attributes these results to its ongoing efforts to optimize its store operations. Following the closure of 75 net stores in 2025, the company closed an additional 84 net stores in the first half of 2026, in line with its objective of shuttering 100 stores this year.

    Despite this positive trajectory, Kering noted the persistent geopolitical instability as a factor impacting trade in the Middle East, causing a slight reduction in the group’s second-quarter revenue growth by around one percentage point.

    Sharing the company’s future plans, de Meo revealed that Kering would remain committed to execution, technology investments, and brand development. He emphasized the positive effects of the decisive steps taken by the company to enhance the uniqueness of its brands, streamline its organization, and boost effectiveness throughout the group.

    Questions & Answers

    What was Kering’s revenue for Q2?
    Kering reported a Q2 revenue of $4.16 billion, marking a 1% year-on-year increase.

    What steps is Kering taking to improve its performance?
    Kering is focusing on enhancing the distinctiveness of its brands, streamlining its organization, and boosting effectiveness throughout the group. It has also been closing down stores and investing in technology and brand development.

    What challenges is Kering facing in its operations?
    Geopolitical instability, specifically in the Middle East, has been identified as a significant challenge. This has had a slight impact on Kering’s Q2 revenue growth.

  • Vietnam’s Economic Surge: Standard Chartered Uplifts 2026 GDP Growth Forecast to 9.5%

    Vietnam’s Economic Surge: Standard Chartered Uplifts 2026 GDP Growth Forecast to 9.5%

    Standard Chartered has increased its projection for Vietnam’s economic growth in 2026 to 9.5%, a considerable increase from its previous estimate of 7.2%. This revision comes on the heels of Vietnam’s robust economic performance in the first half of the year, with key growth sectors showing continuing momentum. Moreover, the bank expects this positive trend to extend into 2027, anticipating a GDP growth of 11%. This revision signifies one of the most substantial forecast upgrades the bank has made for Vietnam in recent times.

    Forecast Adjustments and Economic Stability

    In tandem with this increased growth projection, Standard Chartered has decreased its inflation forecast for 2026 and 2027 to 4.4% and 3.3% respectively. This reduction comes as the bank predicts a further easing of price pressures. Consequently, the State Bank of Vietnam is expected to keep its policy rates unchanged, maintaining a balance between supporting economic growth and ensuring macroeconomic stability.

    According to Tim Leelahaphan, Senior Economist for Vietnam and Thailand at Standard Chartered, Vietnam has shown significant resilience and adaptability during the first half of 2026. Growth has exceeded expectations, largely due to the robust recovery of the manufacturing-processing industry, services, and investment sectors, as well as the beneficial impact of pro-growth policy measures.

    Outlook for the Future

    Despite existing global economic uncertainties and inflationary risks, Vietnam is stepping into the second half of the year with a solid foundation. Continuous domestic demand, persistent investment in infrastructure, enhanced production capacity, and ongoing economic restructuring are expected to cultivate a balanced and sustainable growth model. These factors are predicted to support the nation’s long-term development goals.

    With its revised 9.5% growth projection for 2026, Standard Chartered stands as one of the most optimistic international institutions regarding Vietnam’s economic future. Other international financial institutions have also echoed this upbeat outlook. This growing confidence in the resilience and prospects of the Vietnamese economy emphasizes the positive direction the country is headed in, despite varying forecasts. The principal factors supporting this economic expansion include recovering domestic demand, sustained investment inflows, pro-growth policies, and accelerated infrastructure development. However, external uncertainties still necessitate careful monitoring to ensure sustainable growth.

    Questions & Answers

    What is Standard Chartered’s revised economic growth projection for Vietnam in 2026?
    The bank has revised its growth projection to 9.5%, up from its previous forecast of 7.2%.

    What factors have contributed to Vietnam’s positive economic performance in the first half of 2026?
    The robust recovery of the manufacturing-processing industry, services, and investment sectors, along with the positive impact of pro-growth policy measures, have contributed to this positive performance.

    What are the main drivers expected to support the Vietnamese economy’s expansion in the coming years?
    Factors such as recovering domestic demand, sustained investment inflows, pro-growth policies, and accelerated infrastructure development are expected to remain the principal drivers supporting the country’s economic expansion.

  • Unlocking Retail Growth: How Payment Data Transforms Customer Engagement Strategy

    Unlocking Retail Growth: How Payment Data Transforms Customer Engagement Strategy

    In the evolving retail environment, merchants are faced with an abundance of platforms and technologies to engage with customers. This, according to Mastercard’s SVP of consumer acquisition and engagement, Johann Suchon, has given rise to a new challenge: discerning where to allocate resources for tangible growth.

    The Changing Retail Ecosystem

    With an increasingly fragmented and competitive retail landscape, brands have numerous opportunities to connect with customers through both digital and physical channels. Navigating the optimal combination of platforms, technologies, and marketing tools, however, has become a complex task. The modern retail ecosystem is far more intricate than in the past, and retailers now face the challenge of identifying the most effective tools, along with those that best facilitate the management of their offers.

    Suchon asserts that retailers must begin influencing customer purchasing decisions early in the buying journey. Payments are evolving beyond a simple transactional function, morphing into a strategic engagement channel. Through payment data, brands can significantly influence customer behavior – a capacity that far exceeds what could be achieved by leveraging solely their first-party data.

    The Transformation of Loyalty Programs

    According to Suchon, loyalty programs are currently undergoing one of their most significant transformations. The key competitive edge lies not just in acquiring customers, but also in reaching the appropriate consumers with meaningful offers. Traditional loyalty programs, which typically offer uniform benefits to members, are becoming less effective as customers increasingly demand personalized experiences.

    By enriching their data with payment information, retailers can target offers much more accurately. Retailers who have previously invested in loyalty programs are in a strong position to transition, as their first-party data can be used to tailor communications and offers more effectively than brands without loyalty programs.

    The use of payment data also presents a broader view of customer behavior, allowing retailers to gain insights into spending patterns across various industries, thus identifying opportunities that may have otherwise been missed.

    Emerging retail trends also suggest a significant shift in cross-border spending in Asia-Pacific, with approximately 70% of transactions originating from local consumers. For retailers targeting inbound tourism, this offers a substantial opportunity to connect travelers with relevant offers before and during their visit.

    Questions & Answers

    What is the current challenge for retailers in term of customer engagement?
    The current challenge for retailers is discerning where to allocate resources for tangible growth amidst an abundance of platforms and technologies.

    How can payment data be utilized in the retail sector?
    Payment data can significantly influence customer behavior and offers a broader view of customer behavior, allowing retailers to gain insights into spending patterns across various industries, thus identifying opportunities that may have otherwise been missed.

    What is the future trend in loyalty programs in the retail sector?
    Loyalty programs are currently undergoing significant transformations, with a shift towards personalized experiences. By enriching their data with payment information, retailers can target offers much more accurately. This trend is likely to continue and evolve in the future.

  • Vietnam’s Economy Skyrockets: UOB Predicts Record-Breaking 8.5% Growth Amidst AI Boom

    Vietnam’s Economy Skyrockets: UOB Predicts Record-Breaking 8.5% Growth Amidst AI Boom

    United Overseas Bank (UOB), a leading financial institution based in Singapore, has increased its prediction concerning Vietnam’s GDP growth for the current year. Previously, the bank estimated a 7% increase; however, based on the country’s stronger-than-anticipated economic performance in the first six months, moderating energy costs, and the influence of artificial intelligence, UOB has revised its forecast to an 8.5% growth rate.

    Encouraging Economic Performance

    This revised prediction follows the announcement that Vietnam’s economy expanded by 8.18% in the first half of the year. This growth rate, which surpassed UOB’s initial projections, is the highest in Southeast Asia. The robust economic performance is attributed to widespread growth across various sectors, including industrial, construction, services, and agriculture.

    Manufacturing emerged as a key driver of this growth, bolstered by a global surge in demand for artificial intelligence, as stated by UOB. The bank also noted an impressive 61% upswing in foreign direct investment (FDI) during the first six months, reaching a total of US$34.7 billion. This significant increase strengthens the prediction that 2026 could set a record for Vietnam in terms of attracting FDI.

    Demonstrating Economic Resilience

    Despite the impacts of political tensions in the Middle East, Vietnam’s economy has displayed remarkable resilience which is expected to provide a solid foundation for economic growth in the second half of the year. UOB’s GDP growth prediction is currently one of the most optimistic among international organizations.

    In fact, the Asian Development Bank recently released a report forecasting Vietnam as the fastest-growing economy in Southeast Asia this year with a projected growth rate of 7.2%. Vietnam itself is aiming for a minimum growth rate of 10% this year and has outlined a plan that necessitates an 11.9% growth rate in the second half of the year.

    UOB will continue to observe global economic developments, particularly the impending U.S. tariffs expected to be implemented in late July. These tariffs could potentially add more strain on global trade and impact Vietnam’s economic growth trajectory.

    Despite general weakness among Asian currencies in June, the Vietnamese dong demonstrated notable resilience. UOB maintains its outlook that the dong will remain relatively stable, potentially strengthening against the dollar to 26,500 in the third quarter and 26,400 in the fourth.

    Questions & Answers

    What factors led UOB to increase its GDP growth prediction for Vietnam?
    This decision was influenced by Vietnam’s stronger-than-expected economic performance in the first half of the year, moderating energy prices, and the impact of artificial intelligence.

    Which sector was identified as a primary driver of Vietnam’s economic growth?
    Manufacturing has emerged as a key contributor to Vietnam’s economic growth, supported by surging global demand for artificial intelligence.

    What is the projected stability of the Vietnamese dong in the near future?
    UOB maintains that the Vietnamese dong will remain relatively stable, potentially strengthening against the dollar to 26,500 in the third quarter and 26,400 in the fourth.

  • Saxo Bolsters APAC Growth Strategy with New Institutional Business Head

    Saxo Bolsters APAC Growth Strategy with New Institutional Business Head

    Saxo, a leading digital broker, has named Gift Muthita Anankaphannan as their new Regional Head of Institutional Business for Asia-Pacific, in a move to strengthen their foothold in a prime market. Anankaphannan will be based in Singapore, and her role will involve leading the institutional business throughout the Asia-Pacific region while partnering with clients to enhance the offerings of Saxo.

    Anankaphannan’s Wealth of Experience

    Anankaphannan has an impressive career history, having previously served as a Senior Relationship Manager at Saxo. She brings over 16 years of experience spanning both the technology and institutional financial services sectors.

    Before her tenure at Saxo, she spent over a decade at Google, holding senior positions in sales, product strategy, and go-to-market execution, with her work encompassing AI-powered solutions. Anankaphannan kick-started her career in financial services at Bloomberg, where she specialized in equities and equity derivatives. Here, she provided data-driven insights to traders, analysts, and portfolio managers.

    Mahesh Sethuraman, the CEO of Saxo Singapore, praised Anankaphannan’s extensive experience with institutional partners and her deep understanding of Saxo’s FinTech DNA. He cited her excellent ability to foster long-term client relationships and lead high-performance teams.

    Saxo’s Institutional Business Growth

    Institutional clients make up a significant portion of Saxo’s international business, contributing to nearly one-third of the group’s overall income. Over the past year, the number of global institutional end-clients witnessed a 23 percent growth.

    Saxo recently collaborated with Singapore’s Trust Bank to roll out TrustInvest, a unique in-app investment tool that enables users to directly trade US stocks and exchange-traded funds (ETFs) via the Trust Bank app, with investments starting from a minimum of $10.

    Anankaphannan’s main role will be to steer the next stage of Saxo’s institutional growth in the Asia-Pacific. She stated that the region remains a crucial growth market for Saxo, and the company is dedicated to further scaling their institutional offering in the region.

    Questions & Answers

    What is Gift Muthita Anankaphannan’s new role in Saxo?
    She is the new Regional Head of Institutional Business for Asia-Pacific at Saxo.

    What is Anankaphannan’s professional background?
    She has over 16 years of experience in the technology and institutional financial services sectors, having previously worked at companies like Google and Bloomberg.

    What efforts is Saxo making to grow their institutional business?
    Saxo is focusing on enhancing their offerings and has recently launched an in-app investment tool called TrustInvest in collaboration with Trust Bank.

  • Vietnam’s Textile Exports Soar to $22.2B in H1: Embracing Sustainability and Tech for Future Growth

    Vietnam’s Textile Exports Soar to $22.2B in H1: Embracing Sustainability and Tech for Future Growth

    Vietnam’s textile and garment industry saw a slight increase in exports for the first half of the year, reaching an estimated $22.2 billion, marking a 1.7% rise compared to the same period in the previous year. This information was released by the Vietnam Textile and Apparel Association (VITAS), which also noted that certain areas of the industry, including fibre, fabric, accessory, and nonwoven material exports, experienced a more substantial growth, with rates between 5.6% and 10.6%. However, the garment sector experienced a slight downturn, with exports decreasing by 0.4% due to weakened consumer demand in key markets.

    Export Markets and Trade Surplus

    In the first five months of the year, the U.S. continued to be the largest export market for Vietnam, with shipments amounting to $6.81 billion. This was a 1.3% increase, and represented approximately 45% of total exports. The E.U. market showed the strongest growth, with an increase of 8.8%, equating to $1.94 billion, whereas exports to Japan and the Republic of Korea dropped by 6.2% and 8.9% respectively. The industry was able to maintain a trade surplus of nearly $10 billion in the first half of the year.

    Challenges remain for the industry, despite the overall positive performance. VITAS outlined these obstacles, which include weak demand in key markets, high price competition, a heavy reliance on imported raw materials, increasing costs related to environmental, social and governance (ESG) standards and product traceability, and a growing uncertainty surrounding global trade policies.

    Future Focus and Strategy

    VITAS Chairman Vu Duc Giang spoke about the industry’s limited scope for expansion through solely increasing production volume. He expressed that the future growth of the industry hinges on enhancing productivity and creating higher-value products. This will be achieved by developing domestic sources of raw materials, diversifying export markets, and speeding up the digital and green transformations.

    To facilitate this shift, VITAS has given the green light for the establishment of four specialised committees during the 2025–2030 term. These committees will focus on fashion and domestic market development, international business and supply chains, sustainable development, and technology, innovation, and digital transformation. The committees are expected to commence their pilot operations in the third quarter of 2026.

    As the industry’s exports reached $22.2 billion in the first half of the year, the goal is to sustain an average monthly export revenue exceeding $4 billion in the remaining months. This will help to achieve the full-year target of roughly $48 billion. The industry’s key priorities in this endeavor include adapting to new purchasing strategies of global brands, expanding domestic supplies of raw materials, diversifying markets and products, preparing for potential legal and trade risks, and increasing investment in technology, automation, and digital transformation.

    Questions & Answers

    What growth did Vietnam’s textile and garment exports experience in the first half of the year?
    They experienced a slight increase of 1.7%, reaching an estimated $22.2 billion.

    What are the major challenges faced by Vietnam’s textile and garment industry?
    Major challenges include weakened demand in key markets, high price competition, reliance on imported raw materials, rising costs related to ESG standards and product traceability, and growing uncertainty regarding global trade policies.

    What strategies does the industry plan to implement for future growth?
    Strategies include enhancing productivity, creating high-value products, developing domestic raw material sources, diversifying export markets, and accelerating the digital and green transformations.