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Tag: Indonesia

  • Indonesia Dominates Global Retail Coffee Market

    Indonesia Dominates Global Retail Coffee Market

    Indonesia increases its dominance over the global retail coffee market with an average sales growth of 19.6 percent each year throughout the last five years, followed by India (15.1 percent average growth) and Vietnam (14.9 percent average growth in second and third position, respectively.

    The data gathered by Mintel also revealed that the growth of the global retail coffee market in 2016 had reached 2.7 percent from the previous 2.5 percent in 2015. Meanwhile, Asia continues to dominate the fastest growth in the global coffee market.

    According to the data, the slowest growth in the global coffee market throughout 2011-2016 is recorded by Finland with a -3.7 percent average growth, followed by Australia with a 0 percent growth, Poland with a 0.1 percent growth, Dutch with a 0.5 percent growth, and Belgium with a 0.5 percent growth.

    Mintel’s Global Drinks Analyst Jonny Forsyth, stated that Asia’s coffee market is increasingly growing following the high level of innovations in various processed coffee products in the region. Throughout the same period, the number of newly introduced coffee products in Asia grows by 95 percent.

    In comparison, the number of new tea products introduced in Asia in the same period only grew by 55 percent. Jonny asserted that the numbers showed that the majority of Asian citizens have shifted from the tradition of consuming tea to coffee.

    “In 2016, there was a drastic increase in the number of new coffee products that rivals the previously booming tea product in Asia. It is true tea drinking tradition has been the main obstacle for Asia’s coffee products. But, currently there are many tea-coffee hybrid products that have been introduced in order to solve the problem,” Jonny explained.

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  • Crocs store is closing door

    Crocs store is closing door

    One in four Crocs stores will be closed globally as the maker of the world’s ugliest shoes plots a survival plan.

    The store cull was announced along with another quarterly loss: the shoemaker finished its last three months US$44.4 million in the red, albeit a better performance than the same period a year earlier when it lost $73.9 million.

    Global sales were down 10.2 per cent to $187.4 million but in Asia the company says its retail sales declined by a whopping 16.6 per cent.

    Total Asian revenue was $68.8 million, down 9.8 per cent year-on-year, with wholesale revenues down 5.3 per cent (explained as a result of the sale of the South African business in April 2016). Retail sales in Asia declined 16.6 percent, despite the opening of nine stores since 2015. Online sales declined 7 per cent in Asia, which Crocs says was the result of weak sales in China on Singles’ Day.

    In Europe, revenue was down 14.2 per cent.

    As it restructures to ensure its survival, Crocs CEO Gregg Ribatt will step down on June 1, to be replaced by Andrew Rees who has for the past two years been president. The two roles will now be combined and Ribatt will remain on the company’s board.

    Rees told an analysts’ briefing that customers are responding favorably to new colors and prints added to the core Crocs molded product line.

    “We’ve also confirmed the importance of any newness to our iconic molded footwear through new color and graphic introductions, and through the expanded use of licensed characters,” he said.

    “Our spring/summer 2017 collection rolled out to warm-weather doors in November and early reads are encouraging. Going forward, our innovation and newness will be most heavily concentrated on core clogs and sandal, slips and slides where we see the greatest opportunity for growth.”

    Crocs is also banking on the endorsement of the product by celebrities Drew Barrymore, John Cena, Yoona Lim and Henry Lau who will feature in the brand’s latest Come As You Are marketing campaign launching in April.

    Full year figures

    Crocs’ full-year picture was nowhere near as bad as the last quarter’s. Total sales were $1.04 billion, down only a little from the $1.09 billion of a year earlier. On a constant currency basis, revenues declined 4.7 per cent.

    The company recorded a full-year net loss of $16.5 million, far better than the $83.2 million of 2015. Excluding non-recurring charges, the adjusted loss was $26.9 million.

    Rabat says Crocs has been reshaped into a company that :”functions more efficiently and effectively” and is in “a far better place now than two years ago”.

    “And while the operational work is critical, it is not yet, and I emphasise yet, translating into the financial gains we continue to believe are achievable.”

    Since 2014, Crocs has halved its SKU count, boosted the appeal of core sellers and added new collections.

    Once the store cull is complete in 2018, Crocs will operate about 400 outlets, adding $35 million to its bottom line in 2019. At the end of 2016 it had 558 stores.

    Carrie Teffner, Crocs EVP and CFO, says that given volatile market conditions, the company is not setting mid-term revenue and margin targets.

    “That said, we continue to believe that… longer term, the business can deliver EBIT margins in the 10 per cent range.”

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  • Lotte plans second Hanoi mall

    Lotte plans second Hanoi mall

    South Korean conglomerate Lotte is to build a second Hanoi mall.

    It will be in a 200,000 sqm complex near West Lake in the Vietnamese capital, The Korea Heraldreports.

    Included in the mall will be a department store, supermarket and a cinema, all to be directly run by Lotte affiliates.

    Construction is set to start within the next couple of months for completion in 2020.

    It has been reported that the project, previously known as Ciputra Ha Noi Mall and owned by the Citra West Lake City Development Company, was acquired by Lotte this year.

    Started in 2007 with an estimated investment of US$2 billion, the project has been stalled for various reasons.

    The total investment capital of the new Lotte project is expected to reach nearly $300 million.

    The Lotte Group invested $400 million in the 65-storey Lotte Center Ha Noi mall, currently the second-tallest building in the city.

    The Korean giant plans to expand its retail network in Vietnam through mergers and acquisitions, and plans 60 shopping malls in the country by 2020 – a five-fold increase, reports Nikkei.

    Lotte has 285 shopping centres in Asian countries including China, Indonesia and South Korea, and views Vietnam as one of the fastest-growing retail markets in the region. In October, Lotte Mart launched its e-commerce channel in Vietnam following the introduction of Lotte Shopping TV in 2012.

    As well as providing South Korean products to Vietnamese consumers, Lotte plans to export Vietnamese products like coffee, dried fruit, wooden artifacts and ceramics back to its home market.

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  • Indonesia’s startups continue to attract investors

    Indonesia’s startups continue to attract investors

    After dominating the investment market for the past few years, startups continue to attract investors this year.

    Investors see a startup as a company which fulfills three categories required in businesses, said Morgan Stanley president director Oki Ramadhana.

    “There are three things, which are usually used as benchmarks in potential businesses that will give profit to investors. Those are scalable, profitable and tractable records,” he added.

    Tokopedia and Gojek are two examples of successful startup businesses in Indonesia, said Northstar co-founder and managing partner Patrick Walujo during a seminar at the University of Indonesia (UI) over the weekend.

    “Tokopedia only started with the capital worth 200 million rupiah (US$15,000) from its founder and former boss. But now, the company has gained US$1 billion,” he said.

    However, Patrick stressed that it is not only a matter of big money for startup companies but also sustainability.

    “It’s not only about being rich, but how to make the company grow over time. Therefore, startup owners need to find an investor partner that will help them to step up to the next level,” he added.

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  • Honda hits one-million unit production milestone in Indonesia

    Honda hits one-million unit production milestone in Indonesia

    PT Honda Prospect Motor (HPM) has crossed the one million-unit automobile production milestone in Indonesia, 14 years after it began manufacturing operations in the country.

    HPM began local automobile production in February 2003 with the Honda Stream at its factory located in Karawang, West Java, Indonesia. The Karawang Factory, built on an area of 512,500 square metres, has with a production capacity of 80,000 units. The second factory was inaugurated in January 2014 with a production capacity of 120,000 units, augmenting total production capacity to 200,000 units per year.

    Honda rides demand curve
    Over the years, the Japanese carmaker has seen demand grow for its products. In 2003, the company sold around 22,000 units. Since then, sales have risen considerably and Honda recorded 200,000 unit sales in 2016 with a 19% market share in the country. Currently, HPM produces seven models at its two factories, which include the Mobilio, BR-V, HR-V, Jazz, Brio RS, Brio Satya and CR-V.

    Indonesia is the best-performing global market for Honda. Sales reached an all-time record of 190,229 units, accounting for 44% of the carmaker’s overall 2016 ASEAN sales. The company attributes the sales increase of 14% over 2015 to its existing model line-up including the HR-V, Brio Satya and Mobilio, along with contribution from the newly-introduced BR-V.

    The Karawang Factory currently plays an important role in Honda’s global automobile component export worldwide. Its export destinations include neighbouring ASEAN countries such as Thailand, Malaysia, the Philippines, Vietnam, other Asian countries such as India and Pakistan, as well as Latin American countries, including Mexico, Brazil, and Argentina.

    HPM also delivers component parts to Japan. In 2016, Honda’s component export from Indonesia significantly grew and increased the number of containers exported from 5,600 in 2015 to more than 7,700 containers. In 2017, HPM plans to increase the export quantity to nearly 10,000 containers.

    Honda further strengthened its production operations with the opening of its stamping factory, which produces automobile component parts such as side panels, roof panels and floor panels. The factory began its operation in May 2016. The factory has implemented advanced production technology, including automatic continuous process and robotic system and has the production capacity of up to 2 million pieces component parts per year for both domestic sales and export.

    In September 2016, HPM made an additional 228 billion rupiah investment and started operation of its new factory for crankshafts. Honda employed advanced and environmentally friendly technology and adopted high-precision machines at this new factory to produce maximum of 240,000 crankshafts per year. This crankshaft factory meets regulations enforced by the Indonesian government for Low Cost Green Car (LCGC) models. Currently, HPM has achieved up to 87% local content in its products.

    Seiji Kuraishi, executive vice-president of Honda Motor Co, said, “It is a great achievement to arrive at this milestone in just 14 years and follows in Honda Motor Company’s 100 millionth unit of cumulative automobile production worldwide in September last year. Honda sales in Indonesia were ranked in fourth position for Honda globally, behind only US, China and Japan. Indonesia has always been and always will be an important market for Honda. We will continue to dedicate ourselves to doing business in Indonesia and the expansion of automobile production capacities with new factories is a testament to that commitment.”

    – See more at: https://www.autocarpro.in/news-international/honda-hits-million-unit-production-milestone-indonesia-23812#sthash.kzip7tzI.dpuf

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  • Zalora CEO denies Indonesia exit rumour

    Zalora CEO denies Indonesia exit rumour

    Zalora Group CEO, Parker Gundersen, has denied rumour that says the company is selling its Indonesia operation to local firm Mitra Adiperkasa (MAP Group)

    Last week, there was a  speculation that Zalora was withdrawing from Indonesia following a share acquisition of Zalora Philippines by Ayala Group.

    “The rumour that we are selling off our business in Indonesia is certainly not the case. And we announced a deal that’s actually very exciting – an investment from Ayala Corp into Zalora Philippines – which is in no way a signal of a retreat from the country, but more of a commitment,” Gundersen told this portal.

    But why did the rumour surface in the first place? Had there been actual talks about possible investments from MAP Group?

    Gundersen declined to comment. Right now, he said, discussions with MAP are only related to how Zalora could continue adding more brands from MAP’s large portfolio. The two companies have been working together with MAP as a supplier.

    “We are not retreating from Indonesia nor the Philippines,” stressed Gundersen.

    In 2016, Zalora sold its businesses in Thailand and Vietnam to conglomerate Central Group. When news about stake sale in Zalora Philippines and rumour on Indonesia exit emerged, it led to a speculation that Zalora had continued its retreat from the region. Gundersen denies this narrative, saying that the Philippines share sale was very different to what it had done in Thailand and Vietnam.

    “Our investors looked at the operations in Thailand and Vietnam (like they always do, regularly), and decided that it did not have the best outlook. Whereas in the Philippines is very different because we remain the majority. It just made sense to us to have a local partner in the Philippines,” he explained.

    Will Zalora implement the same partnership strategy in Indonesia, as it has now with Ayala? It is always a possibility that the company would always explore, Gundersen said.

    Indonesia, in particular, is a massive market for e-commerce, with high social media and smartphones usage, coupled with growing income. Gundersen reiterated that Zalora is committed to bring more brands – local, international, and in-house – that are more relevant for its Indonesian customers.

    The company is also on the lookout for ways to improve its services, particularly in payments, a sector which Gundersen called “very interesting” to watch.

    “Definitely the space that we want to watch – anything that can help make it easier for our customers to make a purchase we want to be involved. It’s still early days but definitely we want to monitor close,” Gundersen said, when asked about a possibility to partner with local fintech companies.

    Indonesian e-commerce industry has grown in two-digits annually over the past five years, according to a number of reports. This year, e-commerce transactions in the country are expected to reach $45 billion from an estimated $30 billion in 2016. While the opportunities are abundant, the competition is fierce.

    A few months earlier, local firms Berrybenka and SaleStock were reported to have laid off hundreds of their employees. While smaller firms are gasping for breath, giants like MatahariMall.com and Lazada are steadily marching forward. Last year both companies received major funding from global investors, with MatahariMall snatching $100 million from Mitsui (and at least another $25 million from Matahari Department Store) and Lazada pocketing $1 billion from Alibaba.

    Experts have projected that competition will start to sharpen even further – especially if US giant Amazon decides to enter Indonesia – and will force smaller firms to consolidate.

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  • France launches energy group in Indonesia

    France launches energy group in Indonesia

    France launched the French Renewable Energy Group (FREG) here on Tuesday, as a forum for French companies interested to be a part of the renewable energy sector (EBT) in Indonesia.

    During the launching ceremony, a memorandum of cooperation was also signed between Indonesia Renewable Energy Community (METI) and FREG.

    METI has become FREGs local partner to assist the French companies in identifying and developing renewable energy projects in Indonesia.

    In his speech, Energy and Mineral Resources Minister Ignatius Jonan said Indonesia was committed to have 23 percent of renewable energy in the national energy mix of electricity as soon as possible, or at least by 2025.

    Meanwhile, French Minister of Foreign Affairs and International Development Jean-Marc Ayrault stated that FREG was aimed at gathering French energy companies, which are in Indonesia at present and those interested to enter the country, to cooperate with the Indonesian partners.

    He explained that the mobilization of all stakeholders, both public and private, is needed for achieving 23 percent renewable energy in the energy mix of electricity.

    It requires a regulatory framework and proper finance, and companies should develop innovative solutions which are tailored to the realities in each country, Ayrault added.

    FREG will be an extension of the French Syndicate of Renewable Energy, which is the largest organization in France.

    FREG is expected to improve the relationship between Indonesia and French business companies in renewable energy sector and encourage the participation of French companies in renewable energy projects in Indonesia.

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  • SK Planet and Samsung sign for online partnership

    SK Planet and Samsung sign for online partnership

    Samsung Electronics Southeast Asia and Oceania has signed a memorandum of understanding with global platform innovator SK Planet on an eCommerce partnership in Southeast Asia.

    Signed in Singapore, the deal aims to promote Samsung’s brand presence and provide increased convenience and access to the Korean company’s products in Southeast Asia through online shopping sites 11street Malaysia, 11street Thailand and Elevenia in Indonesia.

    This follows Samsung and SK Planet collaborating in the South Korean domestic market.

    During the past four years, SK Planet has grown in overseas markets by leveraging its expertise from 11street Korea. SK Planet has launched its eCommerce platform into new markets every year, beginning in 2013 with Turkey’s N11.com, where it became market leader in two and a half years, followed by Elevenia in Indonesia, 11street Malaysia and, this month, 11street Thailand.

    “Our official launch was a great success with more than 3000 partners, customers and media joining,” says 11street Thailand CEO Hong Cheol Jeon. ‘This collaboration with Samsung will help to strengthen our partnership in Thailand and enhance our customers’ online shopping experience.”

    Samsung has an official shop-in-shop page on 11street, complemented by delivery and installation by authorised distributors. The page lets consumers search, browse and buy Samsung products easily, as well as access online-only products, pre-sale offerings and promotional discounts.

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  • Indonesia still largest contributor of tourists to Singapore

    Indonesia still largest contributor of tourists to Singapore

    About 2.89 million Indonesians visited Singapore throughout 2016, the biggest contribution of tourists to the city state, about 17.7 percent of the country’s 16.4 million total foreign tourist arrivals, according to a statement released by Singapore Tourism Board (STB).

    The number of tourists from Indonesia grew by 6 percent, which was categorized as a sharp jump from the 10 percent decline in 2015, the statement says.

    STB area director to Indonesia Raymond Lim said on Tuesday in a media gathering in Jakarta that his office would continue trying to attract more Indonesians to visit Singapore.

    “We really hope that we can maintain what we had last year,” he said, adding that about 30 percent of Indonesians who visited Singapore went there for business.

    However, to boost the numbers of tourists from the eastern part of Indonesia, the board will hold roadshows in Palembang in South Sumatra and in Medan in North Sumatra in March and April, he said, adding that it would continue the roadshows in Bali in August and in Sulawesi in September.

    Lim said the board aimed for 16.4 to 16.7 million foreign tourists to visit Singapore in 2017 and expected revenues of between US$25 and $25.8 billion.

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  • How Indonesia Increases Number of Tourists from Scandinavian Countries

    How Indonesia Increases Number of Tourists from Scandinavian Countries

    The Indonesian Embassy in Copenhagen, Denmark, participated in the Danish Travel Show 2017 in Herning city, Denmark, from Feb 24 to 26, 2017.

    A statement from the Indonesian Embassy in Copenhagen received by Antara here on Monday stated that Indonesia’s participation in the Travel Show is part of its efforts to promote the country in non-traditional markets, which is expected to increase the number of tourists from Denmark and other Scandinavian countries to Indonesia.

    Currently, the number of Danish tourists visiting Indonesia is about 30 thousand. Meanwhile, about 120 thousand people from Northern Europe visit Bali, Lombok (West Nusa Tenggara), Java, and Sumatra.

    At the exhibition, the Indonesian Embassy promoted Indonesian dishes that have been widely known in the world, such as fried rice (nasi goreng), fried noodles, rendang (spicy beef made using various spices, including coconut milk), and Indonesian coffee. The embassy also presented several Indonesian chefs to demonstrate the cooking to a number of businessmen and importers, who are engaged in business in Denmark.

    The involvement of businesses in the travel show is expected to improve business-to-businesses deals, increase travel packages sales, and expand the network of cooperation between Indonesian and Danish businessmen.

    Danish Travel Show is the largest annual travel exhibition in Northern Europe participated by about 1 thousand participants from 42 countries and attended by more than 65 thousand visitors from Denmark and other European countries. In 2016, the event was attended by some 4 thousand tourism businessmen, 1,196 exhibitors from 51 countries, 11 airlines, and 80 travel agencies.

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  • Zalora Indonesia future under a cloud

    Zalora Indonesia future under a cloud

    Is Zalora Indonesia for sale? Fresh after selling off a chunk of the Philippines business, Rocket denies further Asian withdrawal.

    Last week, Ayala announced it will buy 43.3 per cent ownership in Zalora manager BF Jade E-Service Philippines for an undisclosed amount, taking its ownership to 49 per cent. The investment marks Ayala’s first foray in eCommerce.

    But what of Zalora Indonesia? Parent, German eCommerce investor Rocket Internet, is also said to be in negotiations with Indonesian retail conglomerate Map Group, according to a report by TechCrunch. Other reports say it is withdrawing entirely from Indonesia. But Zalora PR director Christopher Daguimol denies a retreat from Indonesia.

    “Southeast Asia is a diverse region, and we will always look at adapting our strategy to local country dynamics and opportunities. Our objective is to build the online fashion leader in each of our Southeast Asia markets,” Zalora said at the time it announced its Philippines divestment.

    Zalora sold off its businesses in Thailand and Vietnam last year.

    Map runs nearly 2000 retail outlets in Indonesia, including fashion outlets, and more in partnership with global firms like Marks and Spencer, and Zara. The publicly listed company has more than 22,000 employees.

    Fierce competition has started escalating in Indonesia, marked by layoffs by Berrybenka and SaleStock a few months ago, says Deal Street Asia. Giants like Lazada and MatahariMall.com are meanwhile steadily marching forward with both companies received major funding from global investors last year.

  • Japanese cosmetics brand Do-Best eyes Asian expansion

    Japanese cosmetics brand Do-Best eyes Asian expansion

    Japanese cosmetics brand Do-Best is looking at opportunities in the Philippines and broader Southeast Asian markets, including Indonesia.

    Do-Best CEO Daitaro Sugawara was in the Philippines for a group networking session organised by Security Bank and Japan’s Mitsubishi UFJ Financial Group. He was matched with executives from local retailers including Metro Retail and National Bookstore.

    Do-Best was founded 45 years ago to produce “high-quality, low-priced products” and is already exporting to Singapore, Hong Kong, Thailand and Taiwan.

    Sugawara says the company wants to tap into the fast-growing Asian markets with young consumers seeking low-cost cosmetics and beauty lines. Its products are already popular in Japan’s proliferation of 100 Yen shops and similar stores.

    “That’s why I was interested to have a meeting in the Philippines. My product is like my family, so I want Philippine distributors or retail stores to take care of our products.

    “I want to keep the original price as in Japan,” Sugawara said.

    Tadahiro Miyamoto, GM of BTMU’s Manila branch, says a lot of Japanese companies are now looking at the Philippine domestic market. “You should look at the shopping areas, you see a lot of Japanese products.”

    A large number of participants in the recent business-matching event were from the retail sector, agriculture and real estate.

  • Garuda Indonesia to Cooperate with Malaysian Golf Community

    Garuda Indonesia to Cooperate with Malaysian Golf Community

    National Carrier Garuda Indonesia’s Kuala Lumpur branch will be cooperating with Malaysian golf community to facilitate local golf players who wish to play in Indonesia.

    “We will come up with a package scheme that merges the prices of golf activities and flight tickets, which will then be disseminated by the community,” Garuda Indonesia’s Malaysian General Manager Supriyono said in Kuala Lumpur on Thursday.

    He made the statement immediately after a meeting with Steven Leow, Chief Executive Officer of PT Leo Golf Sukses Wisata Group, which is a Leisure Golf Service company in the Garuda Indonesia Malaysia offices, located in the Intermark Mall.

    “The scheme is aimed to fill morning flight slots from Malaysia to Indonesia. They will be able to immediately head to the golf court and play, as it would still be early in the day. The average length of stay is about three days, and they would board the afternoon return flight. It would be an effective scheme for golf players,” he remarked.

    Garuda also offered to be the community’s sponsor partner, should they wish to organize an event or activity, he stated. “There are approximately 500 members in the community, and there could be 10 to 15 golfers who fly to Indonesia per day. Hence the demand is quite high,” he noted.

    As for their destination cities, Supriyono said that would vary. “But if they go to Jakarta, they even have an office in the Gunung Sahari area,” he added.

    He further explained that Malaysian golfers are keen on trying new places when it comes to golf courts in Indonesia. “Hence, we will also be working with the golf liaison to expand the ‘in’ and ‘out’ of the traffic,” he stated.

    Garuda Indonesia has three flights from Kuala Lumpur to Jakarta, including those at 8:40 am, 12:50 pm, and 7 pm. Meanwhile, Garuda Indonesia also provides three flights from Jakarta to Kuala Lumpur, including 8:35 am, 2 pm, and 4:50 pm.

  • Japanese firm unveils fingerprint payments in Indonesia

    Japanese firm unveils fingerprint payments in Indonesia

    Japanese tech company Liquid has launched a biometric payments service in Indonesia that operates at the point of sale.

    Currently the project is being tested at an enterprise level, with the service offered to the Salim group’s workforce of around 500,000.

    “We are looking forward to developing the next generation payment and business platform in Indonesia, which will contribute to changing people’s lifestyle and have a big business impact in Indonesia,” said Yasuhiro Kuda, CEO of Tokyo-based Liquid.

    Users of the service need to register their fingerprints and deposit money in advance. They can complete payments within three seconds with the system’s fingerprint readers, which have an error rate of one in a trillion, according to Liquid.

    The company will start registering users’ fingerprints this month and start installing fingerprint readers later this year at stores run by Salim, whose businesses range from food and car sales to convenience store operations.

    Liquid is currently providing such fingerprint payment services to tens of thousands users in some cities in Japan.

    The company is aiming to expand the business in Indonesia, counting on the economic growth of the most populous country in Southeast Asia.

  • Online fashion brand Zalora to exit Philippines; Indonesia next

    Online fashion brand Zalora to exit Philippines; Indonesia next

    Southeast Asian fashion ecommerce company, Zalora, has been in the process of shutting shop in a few Asian countries. The company had retreated from Thailand and Vietnam last year, and is pulling out from Philippines and Indonesia.

    Launched in 2012, the Rocket Internet backed online shopping company was functioning in Malaysia, Singapore, Brunei, Hong Kong, Taiwan, Philippines, Vietnam, Thailand, Indonesia, Australia, and New Zealand, managed by Global Fashion Group, which was developed by Rocket Internet to handle all its online fashion businesses across the world.

    In Philippines, 49% of Zalora’s parent company, BF Jade E-Services was bought by one of the oldest real-estate companies, Ayala Group, and the remaining stays with Rocket Internet. BF Jade E-Services owned and operated Zalora in Philippines and the deal is currently subjected to approval from the Philippine Competition Commission.

    e27 also states that the fashion ecommerce company is in talks with retail giant MAP Group for a similar acquisition or investment in Indonesia. MAP group operates more than 1,900 retail outlets in Indonesia and has been experimenting with e-commerce as it launched its MAP e-Mall last year. A merger or acquisition with Zalora could mean that it gets access to the online fashion giant’s ecommerce expertise, as per media speculations.

    Romain Voog, CEO, Global Fashion Group said in a statement, “We are proud of how Zalora Philippines contributed to the development of e-commerce and fashion in the Philippines. This partnership with Ayala will allow us to further strengthen the leadership position of Zalora Philippines, as we invest more into delivering the best online fashion shopping experience for Filipino consumers.”

    In April last year Zalora sold its Thailand and Vietnam businesses to fashion retailer Central Group which also had been wanting to foray into the online ecommerce business. As reported by Forbes, the move was made to streamline its services in light of slowing output and the high cost of customer acquisition in Southeast Asia.

    Jaime Augusto Zobel de Ayala, Chairman and CEO, Ayala Corporation also added, “We see the potential of e-commerce in the country and believe that the Ayala group can benefit and add tremendous value to Zalora. With resources in banking, real estate and telecommunications, the investment presents new opportunities for Ayala to generate synergies throughout the e-commerce value chain.”

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