Tag: Japan

  • Croesus Singapore buys Fukuoka mall

    Croesus Singapore buys Fukuoka mall

    Singapore’s Croesus Retail Trust  has bought Torius Property in Fukuoka Prefecture, Japan, for JPY 7,997 million (S$95.2 million).

    Torius, comprising 36 separate retail buildings, will be Croesus Singapore’s eighth Japanese property and marks its first foray into Kyushu Island. It is the fourth property to be bought by the trust since its IPO in May 2013.

    One of the largest properties in Fukuoka Prefecture with a diverse and unique tenant mix, Torius has a yield of 7.8 per cent.

    The deal will be funded by a rights issue.

    Torius is a large-scale suburban retail mall located in the satellite town of Hisayama-machi of Kasuya-gun, which is approximately 13 km from central Fukuoka City in Fukuoka Prefecture, on Japan’s Kyushu Island. The property occupies a land area of 257,173 sqm and has a net lettable area of 77,032 sqm. Torius Property is situated on leasehold land, with the leasehold interest in respect of the main parcel of land on which Torius Property is sited (comprising a land area of 205,543 sqm) expiring in February 2060.

  • Japan’s Owndays to enter Thailand, Cambodia

    Japan’s Owndays to enter Thailand, Cambodia

    Tokyo-headquartered Owndays will open its first stores in Thailand and Cambodia in October.

    The retailer, which produces and sells fashionable and trendy eyewear, already operates 130 shops in Japan, Singapore, Taiwan and China. It plans to open 100 new stores in Southeast Asia during the next five years.

    The first Thai store will open in Bangkok’s Mega Bangna shopping centre, the first Cambodian store in Aeon Mall, Phnom Penh.

    Owndays believes its pricing structure and speedy turnaround will set it apart from local eyewear retailers.

    Where most optical shops charge customers for frames and lenses separately, and require high optional charges depending on types of lenses, making pricing systems complicated and difficult to understand, Owndays keeps its pricing system simple. It has eliminated additional charges for all single-vision lenses and offers all glasses at set prices indicated on its frames – there’s no additional charges for lenses no matter what customer-required lenses are.

    “This is a very unique and very customer-friendly pricing system in the eyeglass industries of the region,” said a spokesperson.

    Every Owndays shop has a wide range of and large number of stock lenses, enabling staff to provide customers with spectacles in as little as 20 minutes after the payment.

    Owndays launched its business operations in Southeast Asia in July 2013, and now operates 14 shops in Singapore and six shops in Taiwan.

    The company has established its own overseas business model through its independent pricing system and services and is rapidly expanding its business activities.

  • Indonesia to promote diving tourism to Japan tourists

    Indonesia to promote diving tourism to Japan tourists

    Indonesia will promote its world-class diving sites to Japanese tourists during a tourism promotion event entitled “Diving Sales Mission”, to be held in Japan on October 8 and 9, 2015.

    The promotion is to be held following a successful similar event, carried out in Beijing on Sept. 9, I Gde Pitana, the deputy for international marketing development of the tourism ministry, said here on Saturday.

    The government anticipates that revenues from diving tourism could be increased four times from the current amount, according to Pitana.

    The promotion event is part of the tourism ministrys tourism marketing strategies, which include branding, advertising and selling (BAS), that was launched by Tourism Minister Arief Yahya.

    “The sale event is an effort of the tourism ministry to attract 529 thousand Japanese tourists,” he noted.

    In line with presidential regulation No. 69 Year 2015, the Indonesian government now offers visa free entry to Japanese citizens visiting Indonesia.

    “The tourism ministry has set a target of attracting some 10 million foreign tourists in 2015,” he remarked.

    Indonesia has a large potential for diving tourism, with excellent diving spots spreading from Weh Island in the countrys western most province of Aceh to Raja Ampat isles located in the countrys eastern most province of West Papua.

    Between these two tourist destinations, there are other exotic diving sites located in Banda Island (Maluku), Bunaken (North Sulawesi), Wakatobi (Southeast Sulawesi), Lembeh Strait, Alor Isle, TogeBetwan, Gili Air, Komodo Island (East Nusa Tenggara), and Cendrawasih Bay.

    Among the worlds best diving spots to be found in Indonesia are those in Raja Ampat, Komodo Isle, Derawan, Togean, Wakatobi, Gilir Air and Bunaken.

    Deputy Assistant for Asia and the Pacific Market Development of the tourism ministry Vinsensius Jemadu said some 35 percent of the total earnings from the tourism industry comes from maritime tourism.

    Further, an estimated 35 percent of Japanese tourists visiting Indonesia were engaged in maritime-related activities, such as diving.

    At least seven representatives selling tourism packages will join the Diving Sale Mission to Japan.

    According to a Japanese travel agent, Travelco, Bali is one of the top ten tourism destinations for Japanese tourists.

    Indonesia is in the fifth most popular destination for the Japanese, after Seoul (South Korea), Guam, Taipei (Taiwan), and Honolulu (Hawaii).

  • New Disney park in China to bolster sales, Uniqlo chief says

    New Disney park in China to bolster sales, Uniqlo chief says

    Fast Retailing Co. Chairman Tadashi Yanai said Walt Disney Co.’s new park in Shanghai will help his Uniqlo casual clothing brand expand in China, shrugging off concerns over an economic slowdown in the Japanese retailer’s largest overseas market.

    “The opening of the Shanghai Disneyland gives both of us, Uniqlo and Disney, a business opportunity,” Chairman Tadashi Yanai told reporters in Shanghai, where Uniqlo will open a new Disney-inspired concept store. “Our business is getting absolutely no impact” from China’s slowdown, he said.

    Starting Sunday, Uniqlo will devote an entire floor at its six-story China flagship store in central Shanghai to products jointly designed with Disney. A human-sized Mickey Mouse statue greets visitors to the store, where T-shirts and toys depicting characters such as Tinker Bell, Woody of Disney Pixar’s “Toy Story” animated films, and Darth Vader from the Star Wars movies are on display.

    Japan’s richest person, Yanai plans to open 100 stores a year in China as Uniqlo competes with Hennes & Mauritz AB’s H&M and Inditex SA’s Zara to win over consumers in the world’s most populous country. The retailer’s design tie-up comes as Disney prepares to open its $5.5 billion Shanghai theme park next year, its biggest foreign investment and a bet on the country’s booming middle class.

    The Disney collaboration should help Uniqlo boost sales in China “as buzz builds around the opening of Shanghai Disneyland,” said Bloomberg Intelligence retail analyst Thomas Jastrzab. “Expanding store-specific limited edition merchandise offerings should help Uniqlo increase regular foot traffic and improve customer loyalty.”

    Fast Retailing rose 3.3 percent to ¥46,800 ($388.09) at the close of trading in Tokyo on Friday. The shares are up by 6.3 percent so far this year, compared with the 3.3 percent gain in the benchmark Topix index.

    Uniqlo has about 360 stores in mainland China, the most in any country outside Japan, where it has almost 850 shops. The company plans to expand its Greater China network, including mainland China, Hong Kong and Taiwan, to 1,000 outlets.

    China is a key market for Fast Retailing as Yanai attempts to turn Asia’s biggest clothing retailer into the world leader, with a target of ¥5 trillion in sales by 2020 from its forecast of ¥1.65 trillion for the fiscal year ended Aug. 31.

    Yanai said demand for Uniqlo products will increase amid an economic slowdown in China. Everyday clothes with basic designs and advanced materials that Uniqlo sells at affordable prices fit well as China shifts its focus to consumer purchasing from manufacturing, he said.

    “An economic slowdown in China could boost Uniqlo’s sales, particularly as shoppers increasingly look for value-for-money when purchasing clothing essentials such as T-shirts and pants,” Jastrzab said.

    China’s apparel and footwear market is highly fragmented, with market leader Bestseller AS, owner of brands such as Jack & Jones and Vera Moda, holding a 1.7 percent market share by value in 2014, according to Euromonitor International. Uniqlo ranks eighth with 0.6 percent, while Inditex is ninth with 0.5 percent and H&M is out of the top 10 with 0.4 percent.

    “Our concept of manufacturing is fundamentally different and unique,” said Yanai. “We don’t chase trends, but we would rather want to incorporate fashion into our basic clothes.”

  • Seven & I to launch online store

    Seven & I to launch online store

    Japan’s Seven & I Holdings says it will open a giant online store in November, offering products sourced from across its retail store brands.

    By February 2019, Seven & I anticipates a range of 6 million SKUs will be available on the new store, including goods specifically created for the channel in partnership with name brands, including apparel chain Uniqlo.

    It targets ¥1 trillion in annual turnover, or US$8.3 billion when fully operational.

    Seven & I is the global parent of the 7-Eleven convenience store brand, owns the Ito-Yokado chain of hybrid supermarkets and general merchandise stores and the high end department stores Seibu and Sogo.

    The new online store ‘Omni7’ will open on November 11 with a stock of 1.8 million items.

    Shoppers will be able to request delivery to their home or two any Seven & I outlets for convenient collection – such as 7-Elevens.

    Returns will be permitted over the counter at any group store.

  • Apple IPhone 6s, IPhone 6s Plus To Be Available At Retail Stores From Friday

    Apple IPhone 6s, IPhone 6s Plus To Be Available At Retail Stores From Friday

    Apple Inc. said Monday that its latest smartphones, the iPhone 6s and iPhone 6s Plus, will be available at the technology giant’s retail stores at 8 a.m. local time on Friday, September 25.

    The company also noted that more than 50 percent of existing devices have upgraded to iOS 9, its newest mobile operating software that was rolled out last week, marking the fastest iOS adoption ever.

    Apple said its retail stores will have the new iPhones available for walk-in customers, who should arrive at a store early. Both models will also be available on Friday from AT&T Inc. ( T ), Sprint Corp. ( S ), T-Mobile US Inc. ( TMUS ), Verizon Wireless, additional carriers and select Apple authorized resellers.

    Philip Schiller, Apple’s senior vice president of Worldwide Marketing said, “Customer response to the iPhone 6s and iPhone 6s Plus has been incredibly positive, we can’t wait to get our most advanced iPhones ever into customers’ hands starting this Friday. iOS 9 is also off to an amazing start, on pace to be downloaded by more users than any other software release in Apple’s history.”

    In early September, Apple unveiled its iPhone 6s and iPhone 6s Plus smartphones with a faster processor, new 3D Touch capabilities and an improved camera, seeking to woo customers ahead of the holiday season and to assuage investors that its flagship device still has the mojo to sustain growth.

    The phones, which look like their predecessors, are powered by A9 chip, have a new feature called 3D Touch that lets users make commands as well as avail shortcuts and menus by pressing down on the screen.

    Last Monday, Apple said it is on track to beat last year’s record for first weekend sales of iPhone 6 and 6 Plus, when sales breached the 10 million mark within just three days of its sales launch on September 19, 2014.

    The iPhone 6s and iPhone 6s Plus will be available in gold, silver, space gray and the new rose gold metallic finishes for $0 down, with 24 monthly installment payments that start at $27 and $31 respectively, from Apple’s retail stores in the U.S., Apple.com, select carriers and Apple authorized resellers.

    Both the smartphone models will also be available from Friday in Australia, Canada, China, France, Germany, Hong Kong, Japan, New Zealand, Puerto Rico, Singapore, the UK and the U.S. The iPhone will be available by reservation only in China, Hong Kong, Japan and U.S. stores in tax-free states.

    Starting this Saturday, September 26, customers will be able to visit Apple.com to reserve their iPhone for pick-up at their local Apple Store, based on availability. Apple noted that most Apple stores will also have iPhone available for walk-in customers each day.

    Every customer who buys an iPhone 6s or iPhone 6s Plus at an Apple retail store will be offered free Personal Setup to help them customize their iPhone by setting up email and show them new apps from the App Store.

    Apple-designed accessories, such as leather and silicone cases in different colors and Lightning Docks in color-matched metallic finishes, will also be available.

    While unveiling the iPhone 6s and iPhone 6s Plus earlier in September, Apple had said that the devices will come with iOS 9, which would be available as a free software update.

    iOS 9 brings more features to iPhone with a Proactive assistant that is similar to Android’s Google Now service, powerful search and improved Siri features, along with an improved security feature.

    Built-in apps on iOS 9 feature redesigned Notes app, detailed transit information in Maps, and a new News app that displays news from several sources.

    AAPL is trading at $114.33, up $0.88 or 0.78 on a volume of 4.44 million shares.

     

     

  • Ito-Yokado to close 40 stores

    Ito-Yokado to close 40 stores

    Japanese retail giant Seven & I plans to close 40 of its Ito-Yokado branded supermarkets and general merchandise stores by 2020.

    Japan’s Nikkei reports that Seven & I, which is the parent of the 7-Eleven retail brand, expects the closures will boost profits. Forty stores represents about 20 per cent of its Ito-Yokado chain, which is struggling with lacklustre sales, especially of its apparel lines.

    “Seven & I will target money-losing and old locations outside major metropolitan areas for closings. More resources will be poured into Tokyo-area stores instead,” the Nikkei reported.

    The company’s financial year ends in February and by then, the first of the stores to be closed will be identified, with 10 more each year after that.

     

    While Seven & I posted a record profit in the six months to August, its Ito-Yokado arm actually lost money.

    The company says it will continue to open new stores as opportunities arise, but most likely only about one each year.

    The Nikkei reported that the company may also close some poor-performing Sogo and Seibu department stores, but there were no details of that plan.

  • Issey Miyake opens in Hong Kong

    Issey Miyake opens in Hong Kong

    Japanese luxury fashion designer Issey Miyake has opened its first store in Hong Kong.

    The Issey Miyake Hong Kong boutique is located on level 1 of the Ocean Centre at Harbour City on Canton Rd in Tsim Sha Tsui.

    Bao Bao Issey Miyake - Habour city 1

    Womenswear, menswear accessories, shoes – and, of course, the brand’s famous fragrances – are all on sale in the boutique which also offers shoppers a unique outlook across the harbour.

    The brand is known for it minimalist designs and the new Hong Kong boutique captures that philosophy in its design with merchandise displayed in a gallery like setting and simple black and white LED signage at the front.

    BaoBao Issey Miyake - Habour city

     

    Issey Miyake was born in Hiroshima and studied graphic design in Tokyo before working in Paris and New York. He returned to Tokyo in 1970 and founded the Miyake Design Studio to produce high-end women’s fashion.

    Over the years he has developed spin-off brands and expanded into fragrances in 1992.

    His flagship store is in Osaka.

  • Legendary Kyoto Tearoom ‘Nakamura Tokichi’ Launching New Autumn-Winter Delicacies

    Legendary Kyoto Tearoom ‘Nakamura Tokichi’ Launching New Autumn-Winter Delicacies

    Legendary Japanese tearoom Nakamura Tokichi unveils its first season of autumn-winter delicacies on October 1 at their first overseas branch in Hong Kong.

    Since the successful launched in May, this historic Kyoto tearoom brand has become an overnight success story in Hong Kong, beloved for its famously unique green tea treats. The launch of its first new seasonal specialties now promises to flood social media, with inevitable queues by fans keen to be the first to sample the latest delicacies.

    Famed chestnut from Aichi in Nagoya is the annual awaited seasonal ingredient, Nakamura Tokichi bringing in a range of new items that will be serve from October 1 till December.

    The new Chestnut Maruto Parfait (HK$108) sumptuously layered with the unique sweet potato puree and homemade chestnut fresh cream which match perfectly well with the matcha & hojicha flavours tea jelly, ice-cream and two chestnut varieties, which is available at the Tearoom.

    The irresistible Chestnut Financier Cakes (HK$33) made in two flavours – Matcha or Hojicha comes in with a whole Japanese chestnut in the middle of the Cakes. Last but not least to complete the chestnut season with the Nakamura Tokichi’s inimitable Chestnut Matcha Yokan (HK$108), this limited version added in crushed chestnuts which pairs well with green tea.

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    Apart from the seasonal items, the latest addition to the Gift Shop from October 1 will be the all-time-favourite Gateau Chocolate Cake (HK$218) comes with rich matcha flavour and a well mix with white chocolate, when serve it warm with fresh cream or ice-cream it brings out another level of fragrance.

    Nakamura Tokichi opens daily from 11am – 9:15pm and extending the operation hours from Oct till 10pm. HK$10 tea charges per person, and customers are requested to order minimum of 1 drink/ 1 food item at shop.

  • Instagram users top 400 million as Japan and Indonesia growth soars

    Instagram users top 400 million as Japan and Indonesia growth soars

    Instagram has rocketed past the 400-million-user mark, with more than 80 million pictures shared daily at the Facebook-owned service.

    The number of people sharing pictures and videos each month using Instagram soared from 300 million at the start of this year and tops the number of people using Twitter monthly by nearly 100 million.

    “While milestones like this are important, what really excites us is the way that visual communication makes the world feel a little bit smaller to every one of us,” Instagram said in a blog post.

    “Instagrammers continue to capture incredible photos and videos from all corners of the Earth (and even the solar system).”

    More than half of the last 100 million people to join Instagram live in Europe or Asia, with Brazil, Japan, and Indonesia seeing the strongest growth, according to the service.

    The list of high-profile new Instagram users who quickly won legions of followers included David Beckham, Caitlyn Jenner and footballer Toni Kroos.

    Earlier this month, Instagram unveiled plans to expand its offerings to advertisers, opening up possibilities for global marketing efforts on the photo-sharing network.

    The expansion is intended to allow advertisers to launch global campaigns in a variety of formats, including video ads of up to 30 seconds.

    Instagram, which was acquired by Facebook in 2012, has had only limited advertising opportunities up to now.

    In 2013, it began with a small number of “sponsored” posts by well-known brands such as Michael Kors and Adidas.

    The new system could help Instagram generate considerably more revenue.

    Instagram also introduced a service called Marquee, a “premium” advertising product aimed at driving mass awareness in a short time-frame for events like movie premieres and new product launches.

    Industry tracker eMarketer estimates that Instagram’s worldwide ad revenue this year will grow rapidly, hitting $600 million.

    Instagram is seen as a potential growth segment for Facebook, which has nearly 1.5 billion users.

    Last month, Instagram broke its square mold with an update that adds portrait and landscape formats to the image-sharing smartphone application, which also opened up new possibilities for advertisers.

    Meanwhile, Twitter continues to search for a new leader since Dick Costolo announced on June 12 he was stepping down, with co-founder Jack Dorsey holding the job on an interim basis since July 1.

    The unusually long search has some investors and analysts worried over the future of Twitter, which has failed to ignite the kind of growth that many had anticipated when it launched its public offering in 2013.

  • Nojima commences Vietnam rollout

    Nojima commences Vietnam rollout

    Japanese consumer electronics retailer Nojima is about to commence its store rollout program in Vietnam, following its acquisition of an additional  21 per cent of local chain Tran Anh Digital Worldlast June.

    The first of the new stores will carry both retailer’s brands when it opens in October inside the new Aeon shopping centre, currently under completion on the outskirts of the capital city Hanoi.

    Like the Nojima stores in Japan, the Hanoi shop will feature wide aisles and LED lighting, and stock a range of Japanese brand appliances. It will also stock Nojima’s house brand Elsonic.

    Tran Anh is based in Hanoi and has 15 stores in the northern regions of Vietnam. It is on track to open as many as nine more stores this year.

    Research house GfK reports home electronics sales in Vietnam exceeded US$5.5 billion last year, the second year in a row growth in the category has exceeded 20 per cent year on year.

    Nojima had held 10 per cent of the shares in Tran Anh before June and now owns about 31 per cent of the business.

  • Lawson to accept UnionPay

    Lawson to accept UnionPay

    Japanese retailer Lawson has installed 1000 ATMs in a new network to help Chinese tourists access their cash via UnionPay cards.

    And from September 24, customers will be able to pay for purchases using UnionPay credit cards at all Lawson stores in Japan – that’s 12,195 stores, trading under the Lawson, Natural Lawson and Lawson Store 100 banners.

    From September 28, customers can also withdraw Japanese yen by UnionPay credit or debit card on the newly introduced ATM network which will eventually be expanded to more than 2000.

    During the Chinese National Day holidays, a large number of Chinese tourists are expected to visit Japan. During this holiday season, Lawson will launch a coupon campaign for customers who use the UnionPay credit card for settlement. Customers who have purchased over 2000 JPY worth of goods using a UnionPay credit card can get a 200 JPY coupon ticket which can be used for their next purchase.

    The campaign runs through the month of October and the coupons can be used until November 7.

    At Lawson stores in Japan, the average shopping amount per payment is 600 JPY. Spending on credit cards is more than twice as much, at around 1300 JPY. Furthermore, in some pre-launched stores where payment by UnionPay card is already available, the average shopping amount made by UnionPay card jumps to about 3000 to 4000 JPY.

    Foreign visitors going to Lawson stores buy not only rice balls and drinks, but also confectionery and daily goods as souvenirs. This campaign will be able to meet a wide range of needs from foreign visitors to Lawson stores.

  • Japanese food traders target more exports to Thailand

    Japanese food traders target more exports to Thailand

    Last year, Japan’s exports of food and farm products reached 610.7 billion yen.

    Koichi Takano, director of the agriculture, forestry, fisheries and food division at the Japan External Trade Organisation (Jetro), said Thailand was a high-potential market because many Thais liked Japanese foods, while the country is a centre of Asean, which means many visitors come here.

    Thailand is Japan’s six-largest food importer, with imports last year worth 248 billion yen, up by 1.1 per cent from 2013. In the first half of this year, Japanese food imports by Thailand increased considerably, by 4.9 per cent year on year.

    Most Japanese food companies are small and medium-sized enterprises.

    Last week, Jetro Bangkok held a business-matching event between 40 Japanese food enterprises and more than 200 Thai businesses, including modern trade, retail and wholesale, hotels and restaurants. The event aimed to increase trade opportunities for Japanese producers of food and agricultural products in Thailand.

    Sachio Takiyama, director of Jetro Bangkok’s trade promotion department, said the organisation expected that each Japanese firm participating in this event would secure at least one trading contract or one business transaction with a Thai company.

    He said that with the rising popularity of Japanese restaurants here, Thailand would import more raw materials and food products from Japan.

    According to a Jetro survey in August, the number of Japanese restaurants in Thailand had grown by 11.5 per cent year-on-year to 2,364.

    Takiyama said Jetro Bangkok expected the number of Japanese restaurants in Thailand to increase by 10 per cent a year. Thus there is a strong opportunity for more exports of Japanese foods, rice and raw materials, as well as alcoholic beverages, to Thailand in the near future.

    Japanese products with high potential for export to Thai markets are premium-grade meat, alcoholic beverages, fish, and fruits and vegetables.

    Kouda Mayumi, a member of the technical staff of the beef promotion section of the Oita prefectural government, said the prefecture had started to export premium-grade beef to Thailand via Japanese importers last year, with a total volume of about 2 tonnes. She foresees strong demand in the Thai market.

    Shingo Yamashita, senior adviser to Azuma-Cho Fisheries, said demand for fresh fish in Thailand was expected to increase considerably as spending power rose along with the popularity of Japanese restaurants here.

    The company exports about 50 tonnes of buri fish, also known as yellowtail, to Thailand each year.

    Masanobu Miyazaki of JTF Trading, an importer of beef and fish from Japan to Thailand, said demand for Japanese food here had increased strongly over the past few years.

    Vegetables

    Takashi Kato, assistant manager of Bangkok Food System, an exporter of Thai vegetables to Japan and importer of Japanese food to the Thai market, said the company had exported Thai vegetables to Japan for more than 30 years.

    It foresees imports of Japanese foods to Thailand increasing, due not only to demand from Thais themselves but to the rising number of Japanese residents in this country.

    “Now, with higher demand for Japanese foods, we will import Japanese rice, vegetables and fruits to Thai markets to serve restaurants and supermarkets,” he said.

    Haruhiko Sunakawa of Okayama Fruits Company wants to export Muscat grapes to Thailand, along with other fruits such as peaches and strawberries.

    He is now looking for distributors or modern trade outlets to buy such products.

    Kyoko Yoshida, director of Shiyoshida-Syuzou, a producer and trader of shochu, a distilled beverage, said the company has started to introduce the product to the Thai market two years ago. So far, the company has exported it to some Japanese restaurants in Bangkok, and wants to seek |modern-trade partners as distributors.

  • Korea more active than Japan in Southeast Asian tech

    Korea more active than Japan in Southeast Asian tech

    In a region where masses of users are newly armed with smartphones and more spending power, Southeast Asia is a new gold mine for tech enterprises.

    China’s quickly saturating market for all things tech has pushed Asia-bound start-ups to seek new territory, and global companies like Rakuten, eBay and Rocket Internet are vying over Southeast Asia with no clear winner ― meaning plenty of opportunities still abound for new players.

    Those conditions drew Korean-Japanese entrepreneur Tesong Kim, who led e-commerce at Japanese investor Rakuten’s offices in Tokyo and Jakarta, to launch his own discount retail start-up VIP Plaza for fashion goods in Indonesia, Southeast Asia’s biggest market, in 2014, and recently expand to Malaysia.

    And Korea’s start-ups are joining the rush, he says.

    They seem to be making bigger waves there than in Japan. He cannot list any Korean start-ups with a big presence in the country, a closed, conservative market that is a nut nearly impossible for foreign companies to crack. But in expanding to Southeast Asian markets like Singapore, Indonesia and Malaysia, he says they are far more active than their Japanese rivals.

    “Korea is quite aggressive in Southeast Asia, I think more aggressive than Japan in terms of e-commerce start-ups,” he told The Korea Herald in an interview on the sidelines of tech start-up conference Tech in Asia Tokyo 2015 last week.

    “Korea is very crowded. The population is very small, geographically the landscape is very small, and there’s a lot of start-ups. So it’s quite packed, but I think Japanese investors think Korean start-ups can go global more than Japanese start-ups.”

    Indeed, SK Planet’s e-commerce retailer 11st is seen harnessing the region’s demand for Korean fashion and beauty products, while couples messenger Between and crowdsourcing translation app Flitto are also gaining traction in markets like Indonesia, Taiwan and Thailand.

    Meanwhile, Kim says Japanese start-ups are trapped at home, falling hard when they try to copy and paste their successful domestic strategies into new markets.

    But competition in Southeast Asia is heating up fast. Kim believes Korea’s KakaoTalk lost the messenger app war in the region to rivals like BlackBerry, WhatsApp, LINE ― one successful Japanese exception in the region ― and WeChat because it entered too late.

    That’s why it has pivoted to commercial services such as e-commerce when targeting markets like Indonesia, he said.

    Not that e-commerce is any easier, as Kim knows from his experience with Rakuten’s Indonesian e-commerce venture and starting his own online discount retailer. Handling logistics, acquiring products and dealing with fragmented, cash-based payment systems takes immense effort.

    But due to the region’s overall cheaper costs, he believes Korean and Japanese start-ups underestimate the investments they need to gain ground ― a mistake that will get them steamrolled in the market. “They think that with $1 million-$2 million, they can go to Indonesia, try to develop ― with that kind of mindset, they will never succeed,” he says. “All the very aggressive companies are investing into Southeast Asia with a very big amount of money.”

    Even for Korea’s prized e-retailer Coupang, which received a $1 billion boost from Japan’s SoftBank Ventures this year, it might already be too late to test the region’s waters, he said.

    “What they have is a know-how of how to sell things, of impulse buying. They have a system and good talents, but they are not localizing the region,” he said. “If they tackle some new country now, they need to invest in everything ― the products, warehouse, marketing and user acquisition.”

    But the market is already crowded by Lazada, Elivenia and Rakuten, not to mention 11st and Kim’s own start-up VIP Plaza. “I think it’s already too late in terms of social commerce,” he said. “The better strategy is buying out some local players. It’s not only easier, but much cheaper.”

    Still, Japan’s massive opportunities can’t be ignored, he says. Its app market is the biggest in the world, and gaming companies are seizing opportunities. “So in that sense, I think the market is still very big.”

     

  • Lotte chief vows to improve corporate governance

    Lotte chief vows to improve corporate governance

    By Kim Eun-jung

    SEOUL, Sept. 17 (Yonhap) — The chief of South Korean retail giant Lotte Group pledged Thursday to untangle a cobweb of cross-shareholding among its affiliates and speed up the listing process of its hotel unit.

    Testifying before a parliamentary committee, Shin Dong-bin also ruled out the possibility that Lotte, the fifth-largest family-run conglomerate in South Korea, may be embroiled in another family fight over leadership.

    Shin appeared before a parliamentary audit of the antitrust watchdog the Fair Trade Commission, tasked with assuaging public discontent after a bitter fraternal feud over winning control of the nation’s fifth-largest conglomerate.

    After winning the backing of Japanese shareholders last month, the 60-year-old has vowed to improve corporate transparency and list Hotel Lotte, a hotel and duty-free operator.

    During the nationally-televised audit session, Shin apologized for the family feud and vowed to clean up 80 percent of the cross-shareholding structure by the end of October.

    “We formed a task force to improve the governance structure and restore the brand image,” Shin said.

    Lotte has listed only eight companies and the core units are linked through unlisted Japanese units. Shareholders of the small Japanese firms remain largely shrouded in darkness because they are not subject to Korea’s financial disclosure rule.

    As part of reform efforts, Shin bought 35.8 billion won in Lotte Confectionery Co. shares from Lotte Construction on Aug. 28, clearing up about 34 percent of the cross-shareholding links.

    Shin said the task force is working on the initial public offering for Hotel Lotte, with plans to complete it by the first half of next year. Last week, Lotte selected three lead managers for the planned initial public offering.

    Hotel Lotte is 99 percent controlled by Japanese shareholders, including Tokyo-based Lotte Holdings and other unlisted Japanese companies.

    Lotte said earlier the hotel unit is expected to have a market capitalization of around 10 trillion won ($8.5 billion) when it lists, but market watchers estimate it could reach as much as 20 trillion won, considering its large stakes in affiliates and strong earnings.

    When repeatedly asked about the company’s identity, Shin said Lotte is a Korean company that generates most of its sales locally.

    “Lotte is a Korean company because it pays tax according to the Korean law and its employees are Koreans,” Shin said, noting he will maintain the Korean nationality.

    Founder Kyuk-ho was born in the South Korean port city of Ulsan, 414 kilometers south of Seoul, while his sons were born and raised in Japan by a Japanese mother.

    Lotte has tried to allay public discontent over its historic links to Japan as it could deal a harsh blow to the group that heavily relies on the retail, food and travel industries.

    Lotte was first established as a confectionery store in postwar Japan in 1948. It later expanded into Korea when diplomatic ties between Japan and Korea were normalized following Japan’s colonial rule from 1910 to 1945.

    Although lawmakers’ summoning businessmen has been a longstanding ritual as a way to flex their muscles in front of cameras, it is the first time the head of one of the nation’s top 10 family-run conglomerates, called chaebol, showed up before parliament to face acrimonious questions.

    Shin was called in for a 2013 parliamentary audit, but he evaded it, citing overseas trips and instead paid fines. But this time, negative public sentiment and growing government pressure left him no choice but to clarify issues related to the governance structure and other related issues.