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Tag: Korea

  • Starbucks Korea issues CPs to speed up domestic expansion

    Starbucks Korea issues CPs to speed up domestic expansion

    Starbucks Korea recently issued commercial papers worth 30 billion won (US$28.07 million), possibly to further speed up its domestic expansion, according to news reports on Feb. 19.

    Seattle-based Starbucks is the nation’s No. 1 specialty coffee chain with about 1,100 outlets, followed by rival CJ’s A Twosome Place with 910 outlets. Its revenue hit the 1 trillion won mark last year for the first time as a coffee chain brand here.

    The Korean unit, a 50:50 joint venture with local retail giant Shinsegae Group, last year opened 130 new outlets nationwide, spending about 100 billion won. Sources said the firm is seeking to raise funds possibly to open about 150 new stores this year as part of its aggressive expansion plans.

    “We will continue to expand our presence here like we did last year,” a company spokesperson said. “We cannot confirm any details of the CPs now.”

    According to industry watchers, Starbucks Korea is issuing CPs as it has reduced its debt over the past years thanks to strong earnings. In the early years, the firm issued CPs to fund the expansion. Its debt reached more than 60 billion won five years ago but the figure dropped to 4 billion won by the end of last year.

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  • Hana Financial Group To Drive Its Global Loyalty Network With Oracle

    Hana Financial Group To Drive Its Global Loyalty Network With Oracle

    Hana Financial Group (HFG) (Chairman Kim Jung-Tai, www.hanafn.com) announced it signed a memorandum of understanding (MOU) with Oracle in Singapore yesterday under which Oracle will work with HFG in the building and joint marketing of HFG’s Global Loyalty Network (GLN).

    Kim Jung-Tai, chairman of the Hana Financial Group, and Loïc Le Guisquet, president, International, Oracle Corporation, were in attendance at the signing ceremony. Both companies confirmed their mutual cooperation for GLN’s successful launch of services and global expansion, and agreed to collaborate on new technologies such as blockchain, membership, e-money and AI through HFG’s business know-how and Oracle’s technology capabilities. HFG will also modularize the results of the project, including digital asset exchange, and conduct consulting and sales.

    Kim Jung-Tai said, “Through this collaboration, we expect it will be easier for GLN to expand worldwide using Oracle’s leading and innovative cloud technologies that enable digital transformation. Building a global digital asset transfer network is a level of innovation that is rarely seen around the world and when the global integration platform is built, GLN’s customers will be able to enjoy locally offered deals and discounts around the world.”

    GLN is an innovative integrated platform network that enables digital institutions and retailers around the world to connect their digital platforms in one network to freely exchange digital assets and electronic money such as points and mileage. The GLN consortium was established in November 2017 with 36 companies in 11 countries. It is currently under contract with 24 companies and detailed discussions are underway with 15 banks and 20 retailers.

    Meanwhile, on Feb 2, it said that a ‘Coupon Mall Pyeongchang Edition’ in connection with GLN was opened to keep pace with the hosting of the PyeongChang Winter Olympics. This coupon mall is based on the global platform and is being provided in seven languages including English, Korean, Chinese and Japanese. This service will be also expanded globally through GLN’s consortium banks including SuMi TRUST Bank in Japan and Taiwan Taishin Bank, and it is currently offering over 1,000 free coupons. Han JunSeong, vice president of KEB Hana Bank said, “We provide foreign tourists visiting Korea during the PyeongChang Winter Olympics with information on sightseeing, restaurants and various free coupons for major domestic cities such as Pyeongchang, Seoul, Jeju and Busan.”

  • Imported beer sales at convenience stores on rise

    Imported beer sales at convenience stores on rise

    Sales of imported beer at South Korean convenience stores have risen sharply, store operators Sunday, as more consumers opt for variety and a growing number of people drink at home.

    BGF Retail Co., the operator of CU, South Korea’s largest convenience store chain, said sales of foreign beer brands accounted for 60.2 percent of the total in the two months of this year.

    The figure has steadily increased from 58.3 percent in 2015, with numbers surpassing the 60 percent mark for the first time ever.

    Industry insiders said the rise of single-person households also boosted the trend of demand for light alcoholic beverages. This has resulted in rising demand for imported beer sales at discount chains and convenience stores.

    “A total of US$250 million worth of beer were imported last year to set a new record,” said a CU official, noting that discounts on imported beer have also reduced the price gap with domestic beers.

    Local convenience stores have recently offered aggressive price promotions for foreign beers to meet strong demand for various flavors beyond the lager-dominated domestic brands.

     

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  • Lotte Group Chairman jailed for duty free licence bribery

    Lotte Group Chairman jailed for duty free licence bribery

    Lotte Group, parent of the country’s leading travel retailer Lotte Duty Free, is reeling from the shock jailing of its Chairman Shin Dong-bin on 13 February 2018.

    Following a Seoul Court’s guilty verdict and simultaneous sentencing of 2 1/2 years in jail to Lotte Chairman Shin Dong-bin for bribery, Lotte Group voiced concerns over its future business plans.

    In an official statement, Lotte Group said the outcome was “unexpected” and it was “regretful” about the jail term, and insisted that Shin was innocent.

    “As soon as we receive the written judgement, the group will discuss with its attorneys for further process,” the group said.

    “But what worries us is not being able to achieve our promise with customers, such as listing our hotel business, completing the establishment of the holding company, as well as investment and employment expansion plans,” the group added.

    The group said it would activate its emergency management system to reassure employees, customers and shareholders.

    With Shin’s sentence, the business license for Lotte Duty Free branch in World Tower in southern Seoul may be at risk, according to industry watchers.

    The National Tax Service said it has launched a review of the licensing process upon the sentencing.

    In what is now referred to as the “duty free war” in 2015, Lotte had lost its duty free business right in the license screening process in November of that year. Then in 2016, the government announced a plan to dole out an additional duty free license in Seoul, for which Lotte won in December of the same year. The court found the duty free business as one of the management issues for Shin.

    The company will continue to support the ongoing 2018 PyeongChang Winter Olympic Games as an official partner with help of the vice president of Korea Ski Association, it added.

    Shin became the president of the Korean Ski Association in 2014 and has been supporting the Korean ski team since then. He is also a member of the 2018 PyeongChang Organizing Committee’s governing board and has been a member of the International Ski Federation since 2016.

  • Bolloré Logistics Korea to be the First to Achieve CEIV Pharma Certification

    Bolloré Logistics Korea to be the First to Achieve CEIV Pharma Certification

    On January 31st, 2018, Bolloré Logistics Korea became the first transport and logistics company in South Korea to independently achieve the International Air Transport Association (IATA) as Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma).

    The certification is a globally recognized and standardized certification for healthcare airfreight shipments. It is meant to train all the air cargo industry operators on the proper Cold Chain handling of pharmaceutical products requiring temperature control.

    Bolloré Logistics Korea began the certification process according to the IATA CEIV Pharma standard in the third quarter of 2015. The CEIV committee has worked with dedication to bring the internal processes to required expectations.

    “We are proud to be the first CEIV Pharma logistics company independently certified in Korea. The certification reinforces our commitment to provide the highest standards of professionalism in handling the transportation of high-value pharmaceutical products under strict temperature and time-sensitive conditions,” said Thibault JANSSENS, Managing Director of Bolloré Logistics Korea.

    The CEIV certification will allow Bolloré Logistics Korea to have a competitive/strategic advantage in the healthcare logistics market with a stronger, more competitive and enhanced air cargo service.

    This is a new success which shows our commitment to achieve the highest international quality standard in the global pharmaceutical supply chain for its customers, by continually improving our processes and infrastructures to be compliant with IATA CEIV Pharma standards. With Australia, Singapore and now South Korea certified, the aim of Bolloré Logistics is to deploy this action throughout its global network with on-going certifications on other sites in the Asia-Pacific region such as in Hong Kong and Japan.

    With its modern and innovative facilities, the excellence of its quality management system, the expertise of its teams and its multiple certifications, Bolloré Logistics is a major global player in the supply chain of pharmaceutical products.

    The International Air Transport Association (IATA) created Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma) in 2015. It aims to set the industrial standard for air cargo supply chain in pharmaceutical handling excellence. It addresses industry’s need for more safety, security, compliance and efficiency, by the creation of a globally consistent and recognized pharmaceutical product handling certification.

    CEIV Pharma encompasses, or even supersedes, many of the existing pharmaceutical standards and guidelines, such as IATA Temperature Control Regulations (TCR), European Union Good Distribution Practices (EU GDP), World Health Organization Annex 5, United States Pharmacopeia Standards.

  • Samsung to target young market via Samsung Digital Plaza

    Samsung to target young market via Samsung Digital Plaza

    Aiming at a young demographic, the Samsung Digital Plaza has been reimagined for its launch in Yongin City, Korea.

    On the ground floor of a metal-covered three-storey building, the 1255sqm store offers its goods in a context that echoes the home. The electronics giant engaged Seoul architecture practice Betwin Space Design to create the venue’s façade and interior.

    One of the display zones features audio devices by Harman, a company that became a Samsung division early last year. Samsung displays its TVs in a zone designed like a living room complete with sofas.

     

    Aiming at occupiers of single-person flats, the compact premium zone presents special products in a setting that reflects modern living styles in Korea, says Samsung.

    There is also a cafe in the middle of the store.

     

    Photo courtesy: Samsung

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  • Alipay now available in all Starbucks across South Korea

    Alipay now available in all Starbucks across South Korea

    For Chinese tourists traveling South Korea, paying for a grande latte at Starbucks is now as easy as showing your smartphone.

    Ant Financial, which now Alibaba a 33% stake, said Sunday its Alipay e-wallet service is now available at over 1,150 Starbucks branches across South Korea – the first third-party mobile-based payment method enabled nationwide at Starbucks in the country.

    “Starbucks branches are among the most-visited places by Chinese travelers in South Korea. We will continue to introduce Alipay to more local merchants, including restaurants and shops to make Chinese travelers’ journey as convenient as at home,” said Danny Chung, General Manager of Alipay Korea.

    Alipay, the world’s leading third-party payment platform available in 38 countries and regions, was first introduced in South Korea in 2015. Users of the online payment platform can also enjoy an instant tax refund via Alipay at four major airports in South Korea. Earlier this month, Finland became the first country to offer Chinese tourists fully cashless experience by adopting Alipay.

    According to the state-run Korean Tourism Organization, travelers from China make up around one-third of South Korea’s inbound tourists each year.

    The announcement comes on the heels of Alibaba’s launch of an interactive showcase at Gangeung Olympic Park, a staging area for PyeongChang 2018 that hosts the Games’ ice sports.

    Alibaba Group is an Olympic TOP partner through 2028.  As part of the Olympic Partner worldwide sponsorship program, the Hangzhou-based technology giant is the official “Cloud Services” and “E-Commerce Platform Services” partner of the International Olympic Committee, as well as a Founding Partner of the Olympic Channel.

     

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  • Coupang Opened a Hanbok Store that Provides Korean Traditional Costume

    Coupang Opened a Hanbok Store that Provides Korean Traditional Costume

    E-commerce platform Coupang has opened an online store specialising in hanbok, Korean traditional clothing.

    Even babies and pets are catered for with the hanbok range, which also includes hanbok accessories such as hairbands, daenggi (ribbons for braided hair) and ggotshin (women’s shoes with flower patterns).

    As well as its hanbok store, Coupang has specialty stores focusing on its private-label brand Tamsaa, organic/eco-friendly items, men’s grooming, maternity items and travel accessories.

    Ecommerce platform Coupang has opened a store specializing in Korean traditional clothing hanbok. (PRNewsfoto/Coupang)

    As well as Seoul, Coupang has offices in Beijing, Los Angeles, Seattle, Shanghai and Silicon Valley.

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  • Asia boosts Hermes international sales

    Asia boosts Hermes international sales

    Hermes international sales showed strong growth last year, pushed by an upward curve in Asia.

    Sales for the French fashion brand were up 9 per cent at constant exchange rates, with consolidated revenues reaching €5.5 billion (US$6.7 billion). After adjustment for the negative currency effect resulting from the year-end strengthening of the euro, the increase was 7 per cent.

    In the final quarter growth was sustained at 5 per cent at constant exchange rates.

    During the year Hermes continued to improve its distribution network, renovating and extending almost 20 stores. It launched websites in Canada and the US, to be followed by China at the end of this year.

    Asia, excluding Japan, saw sales rise 11 per cent with a positive outlook in Mainland China and South Asia.

    Hermes says the context is improving in Hong Kong and Macau. Regional stores were extended and renovated – the Sogo Fuxing store in Taiwan, Kowloon Elements in Hong Kong and the Kuala Lumpur store.

    Despite a high comparison basis, Japan recorded a sustained increase of 4 per cent thanks to its selective distribution network.

    All sectors recorded growth, with a “remarkable” performance by the ready-to-wear and accessories, perfumes and other sectors.

    Leather goods and saddlery sales grew 10 per cent to meet demand for such bags as Constance, Halzan, Lindy and Verrou. Shoes particularly boosted sales in the ready-to-wear and accessories division, up 9 per cent, silk and textiles had a  6 per cent rise, while the perfumes division posted 10 per cent growth with the launch of Twilly d’Hermes.

    There was a 1 per cent rise in watch sales, while other Hermes business lines ‒ encompassing jewellery, Art of Living and Hermes Table Arts ‒ rose 11 per cent.

    Currency fluctuations had a negative impact of €100 million on revenues.

    The company will publish its annual results next month.

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  • Lotte Shopping swings to loss in 2017 due to THAAD row

    Lotte Shopping swings to loss in 2017 due to THAAD row

    Lotte Shopping Co., the retail affiliate of South Korea’s fifth-largest conglomerate Lotte Group, said Thursday it swung to the red in 2017 from a year earlier amid a diplomatic row between Seoul and Beijing over the deployment of a U.S. anti-missile system here.

    Its losses reached 20.6 billion won (US$18.9 million) on a consolidated basis last year, compared to a net profit of 246.9 billion won posted in 2016, the company said in a regulatory filing. The firm operates Lotte’s key retail units, including its department store and hypermarket chains.

    Operating income stood at 530.3 billion won, down 30.5 percent on-year, and sales dropped 24.6 percent to 18.2 trillion won during the cited period, it said.

    The numbers reflect the performance of Lotte Shopping and its subsidiaries, including Lotte HiMart Co., which specializes in electronics and home appliances.

    The drop in the revenue was largely expected following Beijing’s apparent retaliation over Seoul’s deployment of the U.S. Terminal High Altitude Area Defense (THAAD) system on its soil. Lotte Shopping was one of the most affected companies from the economic retaliation after it signed a land-swap deal with the Seoul government to host the missile shield system.

    Shares of Lotte Shopping soared 4.17 percent to close at 250,000 won on the main bourse Thursday, with the broader KOSPI index gaining 0.46 percent. The earnings results were released after the stock market closed.

     

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  • Korea Ginseng Corp Opens ‘LOUNGE 1899’ to Tap into health and beauty market

    Korea Ginseng Corp Opens ‘LOUNGE 1899’ to Tap into health and beauty market

    Korea Ginseng Corp (KGC) is expanding into the health and beauty market with experimental stores.

    Called “Lounge 1899” as a way to emphasise 119 years of history of its ginseng, the stores target consumers in their 20s and 30s and foreign tourists. They allow consumers to try out premium red ginseng-based products from KGC’s “Cheong Kwan Jang” and “Donginbi” lines.

     

    Customers can have personalised counselling from experts about products suited to their skin conditions, and experience oil-hand massage and red ginseng-hand spa, and a tea service.

    KGC currently runs six “Lounge 1899” stores across Korea with the first one opening in Seoul’s Gangnam district on January 26.

    The company plans to open 60 more stores by the end of this year.

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  • Korean Minigood retail chain to expand in Israel

    Korean Minigood retail chain to expand in Israel

    South Korea’s Minigood chain is heading for Israel, where an individual has signed a five-year exclusive franchise agreement.

    Daniel Pardilov from the Pardilov & Co law firm, which represents the franchise holder, says the plan is to open at least 10 outlets in the first two years, including three this year.

    This news comes on the heels of Japanese “dollar store” chain Daiso planning to enter the Israeli retail market through the Union Group, the franchise holder for Cos and H&M in Israel.

    Minigood stores have an average space of 80sqm, but the plan in Israel is for stores covering 120 to 150sqm.

    One of the conditions in the agreement with the Israeli franchise holder is for the manufacturing of special products for the Israeli market at the company’s plant in South Korea.

    Founded in Seoul by Mike Wu in 2013, Minigood makes and markets bags and clothing, household goods, personal care and cosmetic products, office equipment, digital products and toys. The company’s activity is projected to reach 2000 stores and a sales turnover of more than US$1 billion worldwide by 2020.

    Pardilov says the Israeli franchise holder is a businessperson with a real-estate background. He is also negotiating with larger retail groups in order to form a partnership for running the chain.

    Outside of South Korea, Minigood has branches in Malaysia and Singapore.

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  • Gentle Monster flagship store opened in Guangzhou

    Gentle Monster flagship store opened in Guangzhou

    Korean eyewear brand Gentle Monster has opened its fifth flagship store for China, in Guangzhou.

    It has set up in two adjacent units at the Taikoo Hui mall, which is known for its luxury boutiques.

    Like other Gentle Monster flagships, the store has a themed interior design, this time with cues taken from the realm of old folk tales. It specifically zooms in on the purifying process in which spirits transcend into deities.

    The space is dotted with intricate objects. Some move or make sounds, but all look colourful and exotic. White walls, ceiling and wall-mounted panelling form a neutral backdrop for the creations, while Gentle Monster’s merchandise is showcased on shelving attached to the wall panels.

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  • Watsons in Korea has a new name: Lalavla

    Watsons in Korea has a new name: Lalavla

    Watsons personal and beauty care stores across Korea will go through a makeover under a new name “Lalavla,” its operator GS Retail announced on Tuesday in hopes to take on the dominant player Olive Young in the burgeoning street beauty market through localized appeal.

    GS Retail introduced Watsons, the biggest multi-beauty and personal care store brand in Asia, in a 50:50 joint venture with Hong Kong-based A.S. Watson Group in 2005. Last year it bought the remaining 50 percent stake from the retailer’s holding company Hutchison Whampoa Ltd. for 11.9 billion won ($10.8 million) to make Watsons Korea its fully-owned entity. It has since been working on a rebranding initiative.

    The new name – a combination of lalala and blah blah to mean happy chattering – aims to better appeal to young female customers, said a GS Retail official. The shops will be refurbished with the new logo by the end of March.

    There are currently 188 Watsons stores across Korea. GS Retail plans to bolster the number to catch up with CJ Group’s Olive Young, the country’s first and largest health and beauty retailer with 950 shops. Lotte Group runs 96 LOHBS stores and Shinsegae 10 Boots stores.

    Shares of GS Retail closed Tuesday down 1.31 percent at 37,800 won.

  • Citiesocial to expand in Asia after the funding boost

    Citiesocial to expand in Asia after the funding boost

    Following series-A funding of US$2.75 million, Taiwan online retail platform Citiesocial seeks to expand into other parts of Asia.

    Its funding round was led by the Taiwan fund of Alibaba Group Holding.

    Citiesocial, which sells items such as water bottles and kitchenware from emerging brands, plans to use the funds to bolster services and technology to help rising designers grow their presence in Asia, says founder Eric Wang. This will start in the next few months with strategic partnerships with e-commerce channels in China, Japan and Korea, he says.

    Citiesocial curates branded goods as a point of difference from other platforms that offer mainstream brands. It revenue last year reached $20 million, with monthly sales valued 130 times more than at the beginning of 2014. It has 600,000 customers and a staff of 42, including Wang, who describes his customer demographic as “leaning slightly” toward a more mature, well-educated male consumer.

    “We curate goods globally to sell at least in Taiwan and Hong Kong,” he says. “A third of our revenue comes from goods that no-one else sells in Taiwan and Hong Kong.”

    One of Citiesocial’s top performing brands is British men’s accessories maker Vanacci, while it has just sold more than 1000 travel jackets from Kickstarter graduate Baubax.

    Taiwan’s fragmented e-commerce market allowed Citiesocial to be able to pivot many times in its seven and half years with only $700,000. Elsewhere he would have burned that money within the first six months, says Wang, who worked in the US for 18 years.

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