Retail News CRM

Tag: Korea

  • Dairy Queen signs to expand into South Korea

    Dairy Queen signs to expand into South Korea

    US fast-food restaurant company International Dairy Queen (IDQ) has signed a multi-unit development agreement to expand into Korea.

    It plans to open 50 DQ Grill & Chill locations within the next five years in conjunction with privately held M2G USA Investment, which has a diversified business portfolio including restaurants, hotels, public storage, household appliance manufacturing, shoes and global real estate. M2G USA Investment is also a partner for Taco Bell restaurants in Korea and the US.
    IDQ president/CEO John Gainor says the brand is continuing to expand into new markets internationally. In Korea its outlets will serve a full range of food options, including its signature GrillBurgers, chicken-strip baskets, chicken sandwiches, salads and sandwiches.

    Korea’s DQ Grill & Chill restaurants will also feature the full menu of DQ treats, including the signature Blizzard Treats, MooLatte frozen coffee-flavoured beverages, soft-serve cones, sundaes and cakes.
    The DQ system has more than 6700 locations, more than 2200 of them outside the US. IDQ is a subsidiary of Berkshire Hathaway, led by investor Warren Buffett.

  • Asian Christmas gift-giving trends revealed

    Asian Christmas gift-giving trends revealed

    When it comes to Asian Christmas gift-giving, Koreans are the most generous, according to a Kadence Singapore survey.

    The company spoke to a cross-section of shoppers in Hong Kong, Japan, Korea, Malaysia and Singapore to understand more about their Christmas buying habits.

    Koreans emerged as the most generous, with 88 per cent saying they will give someone a present this year. Of these, 63 per cent are buying a gift for their partner, with 33 per cent buying for a parent.

    kadence-christmas-infographic

    In contrast, Japan is far more conservative, with 75 per cent shopping for Christmas. Of these, 13 per cent are considering buying a present for their parents.

    People in a relationship are far more likely to receive a gift this year, the survey shows. Of the people surveyed, 53 per cent will buy a gift for their partner. This is followed by presents for a parent or another family member (both 25 per cent). However, 21 per cent of the people surveyed do not intend to buy any presents this Christmas.

    A surprising find is that men (80 per cent) are more likely to buy a Christmas gift than women (77 per cent), a trend across all markets. Hong Kong men lead the field at 83 per cent, versus 70 per cent women.

    Men are more focussed on their partner, with 60 per cent buying a gift for their nearest and dearest, while only 46 per cent of women are doing the same. However, women are more willing to share the Christmas spirit, with 24 per cent likely to buy presents for friends and 18 per cent for siblings (for men the figures are 15 and 8 per cent respectively).

    In general, survey respondents have three extended family members in mind when Christmas shopping, beyond parents, siblings and partners. They also have up to five key friends and colleagues they will buy for. Women are likely to buy more presents for their friends and colleagues, with 33 per cent looking to buy five or more presents for colleagues versus about 12 per cent for men.

    When it comes to expenditure, partners are the main consideration. In Singapore, 73 per cent of respondents will spend SG$100 (US$70) or more on their partner. In contrast, 71 per cent will spend less than SG$100 on friends while 69 per cent will spend less than SG$50 on colleagues.

    In Singapore, 48 per cent of men interviewed say they will spend more than SG$200, compared to 28 per cent of women, who are more likely to spread their spending on friends, colleagues and other family members.

  • Memebox raises $60m in extension round

    Memebox raises $60m in extension round

    South Korean cosmetics startup Memebox has raised US$60 million in a Series C extension round led by existing and new investors.

    Investors include Altos Ventures, Cota Capital, Cowboy Ventures, Formation Group, Funders Club, Goodwater Capital, Janet Gurwitch, Mousse Partners and Pear Ventures.

    Memebox says the round is an extension of the $66 million it raised in its initial Series C, bringing aggregate equity funding to $160 million since its incorporation in 2012. The extra investment will allow it to continue streamlining its mobile shopping experience, develop a database of beauty ingredients and products, and build its global footprint.

    As a result of the transaction, Gurwitch, a partner at private-equity firm Castanea Partners and the founder and former CEO of cosmetics company Laura Mercier, joins the Memebox advisory board. She has specialised in beauty companies during her time at Castanea and has served on the boards of Drybar, First Aid Beauty and Urban Decay. She has also served in an advisory role at Dollar Shave Club, acquired by Unilever this year.

    Gurwitch will be advising Memebox on brand strategy, positioning and developing retail partnerships for its four in-house brands – Bonvivant, I’M Meme, Nooni and Pony Effect – in the US market.

    Memebox CEO/founder Hyungseok Dino Ha says the company has been focussed on bringing innovative, high-quality and approachable beauty to consumers worldwide. “We are a global company with offices in six countries with 14 different nationalities.”

    Global streamlining

    There has been a focus on growth in Asia, particularly China, “but with this funding we plan to streamline our global operations at our company headquarters in San Francisco”.

    Memebox evolved from being a subscription box model in 2012 to retailing beauty products then developing its own brands with R&D labs near Seoul. Its four brands have had 60 per cent growth quarter-over-quarter, says the company.

    Memebox invested early in content-driven mobile shopping. It says its mobile app is used for 88 per cent of its global online transactions, with more than 94 per cent of its customers in Asia shopping through the app.

    “What Memebox is doing with mobile and video is unprecedented in the beauty landscape,” says Goodwater Capital managing partner Eric Kim, also a Memebox board member. “Memebox has the heart of a high-end brand, the brain of a deep-data company, and the muscle memory of a social network.”

    Lees ook:

  • C-Store Private-Label Brands Thrive in South Korea

    C-Store Private-Label Brands Thrive in South Korea

    South Korean convenience stores have long been a part of the country’s quick, fast-changing lifestyle, and are going a step further by producing their own private brands, as reported.

    “The private brand business here will continue to grow across all industries, centered on firms with strong distribution channels. South Korea has a relatively low private brand penetration rate compared to other OECD (Organization for Economic Cooperation and Development) countries,” Suh Yong-gu, a professor of marketing at Sookmyung Women’s University, told the new source.

    Private-label brands also benefit from a lower price tag, Suh added. 7-Eleven Korea’s introduction of private coffee brand Seven Café is an example of an affordable product that competes with existing brands. The news source notes that Seven Cafe ranked No. 1 in terms of the number of products sold at the chain’s locations this year between July 1 and November 16, which marks the first time a private brand product outperformed established brands sold at 7-Eleven stores. Seven Café began with just 20 vendors in January 2015 and has expanded to more than 4,000 vendors as of November.

    Convenience stores are also collaborating with consumer goods manufacturers for added value, notes the news source. For example, South Korean c-store chain CU this year worked with dairy company Seoul Milk to release CU Big Yogurt. Since launching in April, more than 1 million bottles have been sold every month, and the product topped the list of yogurt beverages sold at CU locations, according to the company. CU has about 1,000 different private brand goods on display, which account for about 25% of all products sold at CU stores.

    C-store chain GS 25, operated by GS Retail, and instant noodle maker Paldo recently rolled out Omori Kimchi stew ramen, reports the news source, noting that about 9 million units of the Omori Kimchi stew ramen were sold within a year of its release, surpassing sales of Nongshim’s Shin Ramyun.

    In South Korea, c-store chains aren’t shy about experimenting with private brand products, even when they’re not food or beverage related. For example, in October 2015, CU teamed with local toy maker Oxford Block to introduce three limited edition toys. At 26,000 won ($22), the toys were sold out within five days of release.

    “The rise of private brand products suggests a rosy outlook for convenience retail brands. On the downside, it has cast a cloud over manufacturers of products such as beverages which have to allocate more budget for advertisements and promotions next year,” Kim Tae-hyun, an analyst at IBK Securities, told the news source.

    Industry experts look no further than Japan to gauge the future private brands in convenience stores.

    “Over the past 10 years, Japan has seen a power shift from manufacturing companies to convenience retail businesses on the back of the latter’s distribution channels. For example, Seven & I Holdings, the operator of 7-Eleven Japan, gains 50% of its net sales from private brand products,” said Han Kook-hee, an analyst at NH Investment and Securities, in a report. “Most leading Japanese manufacturing firms are keen to produce private brand products for convenience store brands.”

    Lees ook:

  • Croatian Beer Now Available for Purchase in Korea

    Croatian Beer Now Available for Purchase in Korea

    Korean’s can now have a taste of Croatia under the market slogan, “Croatian beer froths up in the Korean market,” as from last week in South Korea, Croatia’s very own Ožujsko beer can be purchased.

    The liquor importer CKB will be pushing out 4 kinds of Ožujsko to the Korean market, of which two will be lagers and two will be the sweet fruit-flavors (Radler lemon and grapefruit). The lager-style Ožujsko has 5% alcohol content and the fruit-flavored types hold only 2%, assures the Korean portal.

    “Ožujsko is the top-selling beer in the European country, with a 40% market share,” said the statement by CKB, the liquor importer of Ožujsko in Korea.

    You can now find the popular Croatian Ožujsko available in all major retail chains in South Korea, and a 330-milliliter bottle will cost 2,300 won (around 14 kuna), while a 550-milliliter can will cost 2,500 won (around 15 kuna) at big malls across the country.

    Lees ook:

  • Lotte, Hyundai, Shinsegae get duty free licenses

    Lotte, Hyundai, Shinsegae get duty free licenses

    Lotte Duty Free, Hyundai Duty Free and Shinsegae DF have snatched licenses for new duty free shops in Seoul, showing that retail specialists will have the upper hand over non-retail firms struggling in the market.

    However, the big three firms still have to brace for harsh competition in the already saturated market, as well as lingering questions about the fairness of the selection process due to possible ties to a corruption scandal engulfing President Park Geun-hye and her confidant Choi Soon-sil.

    The Korea Customs Service (KCS), Saturday, named the three firms as operators for three Seoul-based duty free outlets. Also, it said a fourth license for the city, reserved for small and medium-sized firms (SMEs), was taken by Top City Corp. Busan Duty Free and Alpensia won licenses for outlets in Busan and Gangwon Province, respectively.

    The three conglomerates are retail giants that run department stores in the country. Market watchers say their experience and expertise in attracting luxury brands as well as managing and running their stores worked favorably for them in the KCS evaluation.

    All three conglomerate-run shops will be based in southern Seoul. Hyundai, which earned the highest score in the KCS evaluation, will open an outlet near COEX in Samseong-dong. Lotte will reopen an outlet in its landmark Lotte World Tower in Jamsil. Shinsegae will have one in Central City in Seocho-gu.

    So far, most of the large duty free stores have been located north of the Han River. Top-seller Lotte Duty Free’s main store is located in Sogong-dong, while Shilla Duty Free is in Jangchung-dong and Dongwha Duty Free is in Sajik-dong. The combined earnings of the three outlets last year reached 3.85 trillion won.

    Market observers expect the fresh selection will create an opportunity to draw more tourists to southern Seoul and meet the growing demand for duty free shops in the region. According to the Korea Tourism Organization, the number of foreign tourists in those regions grew an average 19 percent annually from 2012 to 2015.

    With the new selections, however, more competitors are added to the already saturated duty free market in Seoul. Currently, nine duty free outlets are in operation in the city and the four companies will open their new stores next year.

    Data shows that the market is displaying signs of a widening gap between firms. Five duty free outlets that began operation after the government granted licenses last year have posted billions of won in operating losses.

    In the first three quarters this year, a Shinsegae shop in Myeongdong posted an operating loss of 37.2 billion won. Galleria Duty Free 63 on Yeouido and HDC Shilla Duty Free in Yongsan each recorded 30.5 billion won and 16.7 billion won in operating loss.

    SM Duty Free in Jongno-gu, which opened as an SME shop, also suffered a 20.6 billion won operating loss in the same period. Doota Duty Free in Dongdaemun did not disclose its data, but reportedly it posted an operating loss of 27 billion won in five months after opening in May.

    Another factor casting concern is the ongoing controversy that the selection was allegedly affected by Choi Soon-sil. Lotte and SK, which were among the candidates for the fresh selection, donated money to two nonprofit foundations controlled by Choi and the prosecution is suspecting the money worked in favor of the two companies.

    With Lotte winning one of the licenses, the controversy is likely to grow.

    The main opposition Democratic Party of Korea (DPK) said Sunday it is “suspicious of the KCS decision to press on with the selection process even though a special inspection over the scandal is ongoing regarding the matter.”

    The KCS said last December there would be no more selection for duty free operators but suddenly decided to offer more licenses in April.

    “There have been suspicions that SK Group head and President Park met privately over the duty free shops,” said DPK spokeswoman Park Kyung-mee.

  • Luxury goods feature in UK accord for South Korea trade talks

    Luxury goods feature in UK accord for South Korea trade talks

    The pending talks with South Korea follow similar dialogues the UK has opened with Australia, China, the Gulf Cooperation Council, India, New Zealand and Norway

    London: The UK and South Korea are set to to begin regular trade talks, with luxury brands a particularly promising topic, as Britain prepares to expand its commercial reach once it has left the European Union.

    A formal working group of ministers from the two countries will meet as many as four times a year to discuss removing barriers to commerce and prospects for “future, ambitious trade opportunities” after the UK exits the EU, the British government said in an statement on Sunday.

    Prime Minister Theresa May has promised to make the UK a leader in liberalising trade around the world after Brexit. Yet Britain is unable to strike its own free-trade deals — or even being formal negotiations — while still a member of the EU.

    “We want to take advantage of all the opportunities available to us to ensure that Britain becomes a global leader in free trade,” UK International Trade Secretary Liam Fox said in an emailed statement. “The agreement of this latest trade dialogue shows that government is preparing for Brexit, not prevaricating.”

    The pending talks with South Korea follow similar dialogues the UK has opened with Australia, China, the Gulf Cooperation Council, India, New Zealand and Norway in the six months since voters chose in a referendum to leave the EU. Trade and investment between the UK and South Korea is worth about 10.9 billion pounds ($13.6 billion) a year, according to British estimates. The UK is the fifth-largest foreign direct investor in South Korea.

    The UK government said in its statement that South Korea is an especially promising market for luxury brands such as Burberry Group Plc, which has 70 stores in the country, and high-end automakers Jaguar Land Rover and Bentley. Other sectors with strong potential include renewable energy and nuclear decommissioning.

    “What we’re doing is putting in place plans to ensure the UK remains open for business and trade links continue to strengthen,” Fox said. “Important like-minded free trading partners like Korea and others are telling us they’ve heard that message loud and clear. Korea itself is a prime example to the world of how free and open trade can lift countries out of poverty to prosperity.”

  • 2nd anniversary for IKEA Korea and how it grows

    2nd anniversary for IKEA Korea and how it grows

    December 18 will mark the second anniversary of Ikea Korea’s launch.

    According to Ikea’s Swedish head office, its Korean operations have been a success so far. Annual turnover for the 2016 fiscal year to August 2016 was 345 billion won (US$292.3 million), while this year’s sales from January to August, saw a 17 per cent year-on-year increase.

    Although the furniture giant was faced with a few setbacks, namely the controversial recall of its Malm dresser that was blamed in the deaths of at least six children (although none in Korea), Ikea has successfully established itself as a key player in the local market.

    “We’ve made fast progress since the launch of our first outlet here in Gwangmyeong on December 18, 2014,” a spokesman said.

    Ikea’s arrival brought about some positive changes too, particularly for medium to higher-priced furniture businesses.

    The store helped reignite consumer interest in what had been a stagnant Korean furniture market, helping to revitalise the industry, and considering the fact that Ikea targets consumers mainly with budget-friendly items, existing key players selling mid-priced or premium products didn’t have to compete so much with the Swedish giant.

    In fact, local furniture makers Hanssem and Iloom both saw positive growth, with sales for Hanssem, in particular, increasing by roughly 10 per cent as of the third quarter of 2016 to over $1.16 billion, compared to the first three quarters in 2015.

    “The target consumer group for Hanssem, which provides assembled furniture, differs from that of Ikea,” said a Hanssem spokesman, who admitted the company “did benefit a great deal from Ikea’s launch.”

    The Korean retail furniture market was worth $4.24 billion in 2015, a 7 per cent increase from the previous year, and the biggest jump since 2006. The unprecedented growth was viewed as exceptional by industry watchers, who pointed out that the industry appeared to reach its maturity after the 1990s.

    However, Ikea was bad news for furniture merchants at local markets and smaller businesses, who have now lost their biggest competitive advantage – low pricing.

    Over the past five years, the number of furniture companies operating in Korea – the majority of which are smaller enterprises – dropped by almost half, from 21,000 in February 2011 to 13,000 in February 2016.

    Retailers selling kitchen utensils and soft furnishings were also affected by Ikea’s entry, especially for stores in Gwangmyeong, 55 per cent of which said they experienced negative growth since December 2014.

    “There needs to be a way for smaller businesses to coexist alongside bigger players like Ikea and Hanssem,” said an industry official.

    “Given that non-branded furniture businesses make up about 70 per cent of the total Korean industry, small retailers are more than capable of making decent profits. But it seems necessary to implement some kind of official measures in order to help them differentiate themselves and  to better target consumers.”

    Ikea plans to establish five more outlets across the country by 2020, investing 1.2 trillion won ($1 billion).

  • Despite scandal, duty-free licenses to be issued Saturday

    Despite scandal, duty-free licenses to be issued Saturday

    The Korea Customs Service will begin evaluations for the much coveted duty-free licenses today, and the winners will be announced Saturday.

    Despite the political scandal surrounding the process, five bidders have been competitively releasing their plans for investment to gain favor in the selection process.

    Three out of four of the new licenses are allocated for conglomerates, for which five retail giants – Lotte Duty Free, HDC Shilla Duty Free, Shinsegae Duty Free, SK Networks and Hyundai Department Store – submitted bids in early October.

    Lotte Duty Free, which seeks to reopen a store at the Lotte World Tower in Jamsil, said it would invest 2.3 trillion won ($1.97 billion) over five years to establish tourism infrastructure in southern Seoul. The company intends to use the Seokchon River and Olympic Stadium nearby to organize a cherry blossom festival in April and a fall festival in November. The Lotte Duty Free in Jamsil would be the largest duty-free store in Korea.

    SK Networks wants to revive the Walkerhill Duty Free in Gwangjin District, near Seoul’s eastern end. One of the company’s grand plans is to open a resort spa that would add to the area’s scarce tourist sites. It was the only bidder to propose tourism development outside of Seoul in Gapyeong, Gyeonggi, which is popular with domestic tourists with venues such as Namiseom Island and Petit France.

    Shinsegae Duty Free promised to invest 350 billion won to expand the tourism infrastructure around Seocho and Gangnam District, near where it hopes to build its second branch. The company’s strength is in its location, Banpo-dong, in Seoul’s center. Its plans for tourism and cultural development are focused on promoting infrastructure in the area, such as pedestrian passages around landmarks like the Seoul Arts Center in Seocho-dong or the Floating Island, and a premium gourmet festival in Itaewon.

    HDC Shilla Duty Free, run by Hotel Shilla and Hyundai Development Company, has focused on IT and Korean culture, to attract young tourists to a second branch at Samseong-dong in Gangnam, southern Seoul. HDC Shilla’s focus is to collaborate with small and midsize shops in its second branch, particularly in cosmetics, accessories and food.

    Hyundai Duty Free is going for another shot to open in COEX. Its initial plan submitted in October said the company would invest 30 billion won in Gangnam’s tourism in the next five years. Hyundai’s plan focuses on Korean pop culture, including an idol theme park beside COEX. Last month, it said its 50 billion won plan includes support for Gangnam’s cultural development and donations to the needy.

    Meanwhile, 61 independent and opposition party lawmakers released a statement Tuesday requesting that KCS postpone selecting duty-free operators until suspicions about Lotte and SK Group are resolved. The companies are being investigated for promising licenses in return for donations this year to K-Sports Foundation, a nonprofit linked to President Park Geun-hye’s confidante Choi Soon-sil.

    However, the Korea Customs Service said that many companies have been awaiting a decision, which cannot be delayed over political matters. The office said Wednesday it would rather take back licenses afterward from companies found to have conducted illegal practices for the selection.

    It also said it will release detailed evaluations of companies selected as winners. In November 2015, the office was criticized after Lotte and SK lost their licenses without clearly being informed why, raising doubts on the procedure’s fairness.

    Lees ook:

    Lees ook:

  • Korean label Blanc & Eclare opening in NYC

    Korean label Blanc & Eclare opening in NYC

    At only two years old, Korean-based label Blanc & Eclare has decided on New York City for its first North American venture.

    Launched by Korean pop superstar Jessica Jung, the label will open in a brick-façade store along SoHo’s Spring Street Jung left the chart-topping Korean group Girls’ Generation in 2014 after seven years to create her own fashion brand. It started as sunglasses (the inaugural line sold out in four hours), with denim, coats, ready-to-wear and skincare products being added along the way.

    blanc-eclare-opening-in-nyc

    Jung has opened 40 Blanc & Eclare stores around Asia, including China, Macau, Singapore and Thailand.
    Prices for the collection range from US$145 for a turtleneck sweater to US$505 for a double-breasted blazer. Cosmetics start at $16 for lip balm, $22 for a face mask and $60 for a night cream.

    Lees ook:

    Lees ook:

    Lees ook:

  • Huawei to supply network for PyeongChang 2018

    Huawei to supply network for PyeongChang 2018

    Huawei announced it has been selected as an official network equipment supplier for the 2018 Winter Olympic and Paralympic Games in PyeongChang.

    As an official supplier, Huawei will deliver a comprehensive network system covering a games, administration and facility network.

    The vendor facilitate the delivery of services including real-time competition data transmission, broadband certification for audiences and stadium security protection.

    A network equipment supply and sponsorship agreement was signed in Seoul yesterday by the PyeongChang Organizing Committee’s (POCOG) president and CEO Lee Hee-beom and Huawei’s enterprise business group president Yan Lida.

    “We are honored to be selected as the Official Network Equipment Supplier of the PyeongChang 2018 Olympic Winter Games,” Lida said at the ceremony.

    “With a wealth of expertise in network construction for large-scale sports events and stadiums, Huawei will provide full support to POCOG in building a cutting-edge network for the Games.”

  • Apple Korea targets 15pc market share

    Apple Korea targets 15pc market share

    Apple Korea is going head on to Samsung on its home turf, on target to sell 2.9 million iPhones in South Korea this year, giving it a market share of about 15 per cent.

    At the end of last month it had sold 2.6 million iPhones, and is forecasting improved results for the year. Its operating profit has reached more than KRW800 billion (US$684 million) on revenue of KRW3 trillion, according to Yonhap News Agency.

    Sales of iPhones account for more than 75 per cent of Apple’s revenue in Korea, sources say. It launched the iPhone 7 in October with the opportunity to take share from market leader Samsung after its Galaxy Note 7 debacle.

    On top of that, the Cupertino-based tech company is building its first flagship retail store in Seoul, expected to be completed next November, right across the street from Samsung’s headquarters.

    Apple’s market share in Korea peaked at 33 per cent in the fourth quarter of 2014 following the launch of the iPhone 6, according to Counterpoint. Samsung and LG now have a combined market share of more than 80 per cent. LG had a 19 per cent market share in the second quarter of this year.

    South Korea and Japan, where the iPhone had more than a 50 per share for the three-month period ending October 30, are rare growth markets in Asia for Apple. Its iPhone shipments in China plunged 31 per cent to 7.5 million units in the third quarter, with market share falling to 6.2 from 10.3 per cent, according to Strategy Analytics.

    Apple reportedly reduced orders from component suppliers for its iPhone 7 models early this month because of demand being weaker than expected in many markets, including China.

    Lees ook:

  • Lotte promises +$2bn in World Tower support

    Lotte promises +$2bn in World Tower support

    Ahead of this Saturday’s highly anticipated downtown duty free license awards in Seoul, South Korea, Lotte Duty Free has promised to invest Won2.3 trillion ($1.97bn) on tourist-related investments in the upmarket Gangnam quarter of Seoul between 2017 to 2021.

    It has also pledged to include support for small and medium-sized business partners while finding ways to attract more than 17m foreign tourists.

    This unprecedented offering from South Korea’s biggest duty free operator also includes an undertaking to create 34,000 direct and indirect jobs, while creating substantial foreign exchange income.

    UNPRECEDENTED SUPPORT PACKAGE FROM LOTTE

    Lotte has also promised to contribute substantially to social needs, while offering ‘win-win management’ arrangements and solutions for small and medium business partners.

    In a lengthy communication, Lotte Duty Free adds that all of these promises and much more are ‘included’ within the business plan it has already submitted to the Korea Customs Service on October 4.

    As such, it is obviously hoping this will be enough to secure one of the Seoul downtown duty free store licenses which now comprise 10 years in length, rather than five.

    SK GROUP ALSO HOPES FOR A LICENSE ‘REPRIEVE’

    Needless to say, Lotte is not the only company looking to secure a downtown license since there are three on offer in the capital Seoul, with SK Networks also hopeful that it will win a license and be able to restore its duty free offer at the WalkerHill casino and hotel in Seoul.

    Another three licenses are also expected to be offered to retailers operating in smaller South Korean cities, including Busan.

    SK Networks (part of the SK Group) lost its Seoul license last November at the same time as Lotte Duty Free, although Lotte holds other licenses in downtown Seoul and at Incheon Airport.

    Lees ook:

  • The Twee flagship in Kuala Lumpur

    The Twee flagship in Kuala Lumpur

    Korean fashion retailer The Twee will open its first Southeast Asia flagship store at the new KL Gateway Mall in Kuala Lumpur.

    Set to open on January 12, the mall is part of the KL Gateway mixed development by Suez Capital in Bangsar South, Jalan Kerinchi.

    Along the Federal Highway, it offers a net lettable area of about 400,000 sqft (37,161 sqm) across seven levels, with more than 200 retail outlets.

    Covering about 11,000 sqft, The Twee flagship will be the brand’s biggest store in Southeast Asia, says Suez Capital head of asset management Michael Chee Soon Hin.

    Launched in 2009, The Twee has 28 fashion stores as well as kiosks in major department stores across Korea as well as in Shanghai. It targets women between 19 and 25 years old.

    Chee says the mall is already 80 per cent occupied and there are hopes it will achieve full occupancy by April. Secured tenants include Cotton On, Daiso, Doutor Coffee, H&M, Home’s Harmony, Mr DIY, Times Bookstore, Village Grocer, Yamazaki Bakery and Yubiso.

    There will also be free WiFi throughout the common areas of the mall.

    “The concept of the mall is based on a street mall – you will not be bored,” says Chee. Each floor is inspired by elements from different continents, and there will be an outdoor landscaped garden where residents in the residential units above the mall can grow vegetables.

    Suez Capital has invested in an automated car-park system for shoppers. “It will be the biggest automated car park in Southeast Asia with 1230 automated parking bays as well as 900 normal parking bays,” says Chee.

    The projected footfall for KL Gateway Mall is more than 10 million annually, with about 40 per cent from LRT (light-rail transit) commuters. A 100m covered, air-conditioned bridge will link the mall to the KL Gateway-University LRT Station.

    The integrated development includes four residential towers of more than 1180 units, which will be completed next year, while two Grade-A corporate office towers are being delivered in stages.

    Lees ook:

    Lees ook:

    Lees ook:

  • Hyundai buying SK Networks’ fashion sector

    Hyundai buying SK Networks’ fashion sector

    South Korea’s Hyundai Department Store is buying trading company SK Networks’ fashion business for KRW326.1 billion (US$284 million).

    When the purchase is complete, probably by February, SK Networks (SKN) will no longer have interests in the fashion industry.

    The two companies have signed a deal to merge SKN’s 12 fashion brands into Hyundai’s Handsome fashion unit, which has annual sales of KRW750 billion. With SKN’s KRW600 billion added in, the merged group becomes the fourth-largest fashion company in South Korea behind E-Land, Samsung C&T and LF.

    Hyundai says it will retain SKN’s 400 designers, merchandisers, marketers and production staff, guaranteeing their jobs for five years.

    Analysts say the two businesses are a good fit and are unlikely to cannibalise each other’s trade as Handsome is known largely for its local womenswear brands while SKN is a major importer of global labels such as American Eagle, Club Monaco, DKNY and Tommy Hilfiger.

    Its house brands  include Obzee, O’2nd and Rouge & Lounge.

    Lees ook:

    Lees ook:

    Lees ook: