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Tag: Korea

  • Koreans consume more foreign beef over expensive local hanwoo

    Koreans consume more foreign beef over expensive local hanwoo

    South Koreans consumed more American and other foreign beef than expensive local beef last year, a move that has lowered the country’s self-sufficiency rate for beef to below 40 percent over 13 years, a state-run think tank said Thursday.

    Last year, South Koreans consumed 362,000 tons of foreign beef, accounting for 62.3 percent of the total beef consumption in the country, according to the Korea Rural Economic Institute.

    South Korea halted imports of U.S. beef in 2003 following the outbreak of a mad cow disease. Seoul lifted the ban in late 2008, which led to mass demonstrations among people in fear of their safety.Australian beef came to 178,000 tons, making up 49 percent of total beef imports. American and New Zealand beef stood at 42 percent and 6 percent, respectively.

    Still, the market share of American beef in South Korea has gradually been on the rise in recent years.

    In comparison, South Koreans consumed 219,000 tons of domestic beef, known as hanwoo last year, accounting for 37.7 percent of the total beef consumption in the country, according to the institute.

    It marked the first time that South Korea’s self-sufficiency rate for beef fell below 40 percent since 2003 when it stood at 36.3 percent.

    The decline came as South Korean consumers shunned expensive local beef.

    The wholesale prices of local beef once hit nearly 20,000 won ($17) per kilogram last year.

    Retail prices of the best quality local beef for bulgogi, a grilled marinated beef dish, came to 4,578 won per 100 grams last year, compared to 2,464 won for American beef for bulgogi, according to the institute.

    The prices of local beef have been on the rise since late 2015 as the number of cattle is continuing to fall.

    Domestic farms cut the number of cattle as the prices of local beef went down and the government helped some farms shut down to stem the decline of local beef following a free trade deal with the United States.

    South Korea’s anti-graft law — which took effect in September — is also adding to the woes of the local beef industry.

    Local beef was one of the favorite gifts during major holidays, but was overtaken by health products, according to major retailers.

    The law imposes tight limits on free meals and gifts that can be accepted by government officials, journalists and private school teachers to try to curb the deep-rooted tradition of excessive hospitality. The maximum value of a gift that a person subject to the law can receive has been set at 50,000 won.

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  • South Korea’s Samsung consider building US appliance factory

    South Korea’s Samsung consider building US appliance factory

    South Korea’s Samsung Electronics said Friday it’s considering building a factory to make household appliances in the United States as various industries brace for potential protectionist trade policies under the administration of President Donald Trump.

    A spokeswoman for Samsung said the plans were “purely in the evaluation stage” and no decisions have been made. She didn’t want to be named, citing office rules.

    Samsung also said in an emailed statement on Friday that it continues to assess “new investment needs in the United States. The news drew the attention of Trump, who tweeted “Thank you, @Samsung! We would love to have you!”

    Most Samsung televisions, refrigerators and other household appliances sold in the United States are made in Mexico.

    The spokeswoman refused to say whether Samsung was worried about the possibility of the United States moving to impose tariffs on products imported from Mexico.

    A spokesman from LG Electronics, another South Korean technology company, said it is also considering building a manufacturing plant in the United States and will decide on the matter within the first half of the year. He also didn’t want to be named, saying that the matter was sensitive.

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  • Korean duty free shops rely on online Chinese celebs

    Korean duty free shops rely on online Chinese celebs

    Duty free shops in Korea have begun to invite internet celebrities from China, better known as “Wang Hong” there, to attract Chinese tourists during the upcoming holiday season.

    The shops are seeking to break through Beijing’s economic retaliation against Seoul’s decision to deploy a U.S. Terminal High Altitude Area Defense (THAAD) battery here.

    Last Wednesday, HDC Shilla invited four Chinese internet celebrities to HDC I’Park Mall and Shilla I’PARK Duty Free in Yongsan, central Seoul.

    The online stars, who have millions of followers on social media such as Weibo, broadcast their shopping for two hours to China through their smartphones.

    At toy store Toys & Hobby in I’Park Mall, the four introduced “kidult culture” in Korea, which has yet to be seen in China. They introduced Korea’s fashion and beauty brands as well at The Handsome and 3 Concept Eyes outlets in Shilla I’PARK Duty Free.

    “The promotional video broadcast by the four celebrities will likely get more than 5 million views within a week,” an HDC Shilla official said.

    The Shilla Duty Free also invited 15 Chinese internet celebrities to Korea to offer them a trip for five days and four nights from this Monday to Friday. The affiliate of Hotel Shilla plans to give them various experiences beyond shopping.

    Image result for shilla duty free korea

    Traveling from Seoul to Jeju, the 15 will visit hidden local restaurants and a tangerine farm on the island. They will also enjoy make-up sessions, a tea ceremony and pop arts, according to The Shilla Duty Free.

    An official said, “We expect more Chinese tourists, who are interested in beauty, food and experiences, to come to Korea.”

    The duty free shops want the celebrities to attract more Chinese tourists to Korea during the Lunar New Year festival from Jan. 27 to Feb. 2, which is regarded as one of the most lucrative times of the year in the industry.

    Last year, Lotte Duty Free and The Shilla Duty Free posted 10 per cent more in sales during the festival.

    However, duty free shops this year are facing a gloomy outlook due to Beijing’s order to regulate group tours to Korea.

    According to the Korea Duty Free Association, the number of foreign shoppers last November declined 17.8 per cent from a year earlier. The total sales of duty free shops also fell 8 per cent year-on-year, as sales to foreigners decreased 9.6 per cent.

    Observers said the recent invitations of Chinese celebrities are targeting non-group tourists, who visit Korea individually without travel agencies and who can replace the group tours.

    “The non-group tourists are not regulated by the Chinese authorities,” another HDC Shilla official said. “So, we want those tourists to visit Korea more, after watching promotional videos filmed by Chinese celebrities.”

    The Shilla Duty Free also said the itinerary of celebrities was arranged to help non-group tourists who are considering visiting Korea.

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  • Cosmetics sales surge as Korean duty free market rockets

    Cosmetics sales surge as Korean duty free market rockets

    The Korean duty free market surged by 33.5% year-on-year in 2016 to KW12.2 trillion (US$10.5 billion), according to new figures from Korea Customs Service.

    The results reflect a strong bounce-back from the MERS-ravaged 2015, allied to booming Chinese visitor numbers last year.

    Chinese arrivals for 2016 rose +34.8% to 8,067,722, according to Korea Tourism Organization figures published today, a 46.8% share of total visitors. Japanese arrivals also rose sharply, up +25% to 2,297,893, a 13.3% share of total arrivals. Korean departures rose +15.9% in the year to 22,383,190

    Duty free sales to foreigners (dominated by the Chinese followed by Japanese) rose +44.1% to KW8.8 trillion (US$7.5 billion)

    Cosmetics, driven by booming sales of skincare (particularly Korean brands), accounted for 51.2% of turnover. Here are the leading categories:

    Korea_Table_600

    Lotte Duty Free stretched its lead as the dominant force, racking up a +26% increase in sales to KW5.973 trillion (US$5.1 billion), a stunning performance given that the retailer had to close down its Lotte World Tower Duty Free store in late June.

    Lotte’s nearest rival, The Shilla Duty Free, posted a +31.5% increase year-on-year to KW3.405 trillion (US$2.9 billion). Its Seoul flagship generated revenues of KW1.739 trillion (US$1.49 billion) while its Incheon International Airport stores posted sales of KW0.697 trillion (US$596.7 million)

    Fast-rising Shinsegae Duty Free posted sales of KW0.9608 trillion (US$822.4 million). Its new store in Myeong-dong, Seoul, which only opened on 1 May, generated sales of KW0.349 trillion (US$298.7 million). Its downtown Busan store (relocated in March to Centum City) posted revenues of KW0.336 trillion (US$287.8 million). Dongwha Duty Free in Seoul posted sales of KW0.3547 trillion (US$306 million)

    Of the recent sector newcomers HDC Shilla generated sales of KW0.3971 trillion (US$340 million); Galleria 63 Duty Free reached KW0.224 trillion (US$191.7 million), Doota Duty Dree KW0.111 trillion (US$95 million) and SM (Hana Tour) KW0.056 trillion (US$47.9 million).

  • South Korea’s Race To 100% Internet Access

    South Korea’s Race To 100% Internet Access

    The proliferation of smartphones in the hands of the entire population — but mostly the elderly and children — are the main cause of these rising internet implementation rates. It’s been reported that senior citizens are one of the larger user groups surfing the web. Dubbed “silver surfers,” those above the age of 60 are mainly using the internet as a means of communication in instant messaging apps.

    From map navigation to shopping, banking, cloud usage and more, nearly every connected area imaginable is rising in South Korean user activity. Data shows three-fourths of respondents were utilizing maps, and over half were playing online games three to four times per week. Of particular interest is the popularity of instant messaging, as survey results show 88.3 percent are using some form of a messenger app.

    Now, although internet connectivity is normally seen as a good thing, there’s always a not-so-shiny side. It was found that 99 percent of respondents go online at least once per week, where they spend an average of 14.3 hours. Teenagers have shown signs of internet addiction, and parents are now enrolling their children in rehab centers for treatment. Given our world’s continual increase in connected devices and services, receiving help for this particular type of addiction may be a very tough road ahead for us all.

    As more people get online to communicate with one another, we just may see internet addiction rehab centers popping up all over.

  • South Korea Dec department store sales rebound from Nov, reverse two declining years

    South Korea Dec department store sales rebound from Nov, reverse two declining years

    Sales at South Korea’s department stores in December rebounded from November on year-end gift purchases, trade ministry data showed on Monday, while sales for the whole year ended on a positive note, reversing two years of decline.

    Combined sales last month at department stores run by Hyundai Department Store, Lotte Shopping and Shinsegae Co rose 3.3 percent on-year, the Ministry of Trade, Industry and Energy said, bouncing from a 2.8 percent decline in November.

    Nearly all product categories saw rises in sales, which were led by offshore brand items and food products.

    Retail data has shown consumption has not fallen markedly since an influence-peddling scandal involving President Park Geun-hye engulfed the country late last year, although consumer sentiment is at its worst in nearly eight years.

    The central bank governor, Lee Ju-yeol, said earlier this month private consumption is likely to head down in 2017 due to uncertainties at home and abroad, hampering overall growth.

    Discount store sales, meanwhile, slipped 1.9 percent in December over a year earlier, the same trade ministry data showed, although not as bad as November’s 6.1 percent decline.

    In 2016, department store sales rose 3.3 percent, breaking two years of falls and rebounding from a 1.2 percent fall in 2015. Demand for luxury goods and large household appliances such as televisions and refrigerators bolstered sales, the ministry said.

    Discount store sales fell 1.4 percent in 2016, declining for a fifth straight year, the data said, as more consumers bought food items online from a widening variety of vendors.

    In 2015, discount store sales dropped 2.1 percent.

  • Teenie Weenie deal is a big one

    Teenie Weenie deal is a big one

    The deal with V-Grass represents the biggest cross-border merger and acquisition agreement in Korea’s fashion industry.

    E-Land Group said proceeds from the sale will help the company reduce its debt level to 240 percent by the first quarter from the current level, which is above 300 percent.

    The final price is lower than the previously reported range of 1 trillion won. “After we adjusted our position on the operation of E-Land’s women’s wear unit in China, we finally agreed on the deal,” said a source at E-Land familiar with the deal.

    The company said that since Teenie Weenie’s book value stands at 120 billion won, it would obtain a profit worth 750 billion won through the sale.

    However, it will still own 10 percent of the fashion brand’s shares for three years to “maintain a stable partnership” with the Chinese company. “The reason why E-Land keeps a 10 percent stake is that both companies need to cooperate on production and business and generate synergy after the deal,” E-Land said in a statement.

    The board of directors at V-Grass passed the takeover agenda on Tuesday, and the shareholders are expected to cast a vote on Feb. 10.

    Following the decision, the Chinese retailer is expected to pay the price for sale on Feb. 20.

    The Nanjing-based company captured Chinese consumers’ shifting purchase behaviors in favor of more premium brands. But since the sale price is higher than its market capitalization, the company will pay with debt.

    On E-Land’s end, the sale is its latest effort to restore financial liquidity. The group had sold three properties in Mapo District, western Seoul, and Gangnam District, southern Seoul, last year, a move that brought in 250 billion won.

    The company will push forward to secure cash through sales of other properties. By the first quarter, it will sell 200 billion won worth of real estate and then 500 billion won later this year.

    The fashion group also plans to take E-Land Retail public in a capital-raising effort by the first half of this year, a move that E-Land believes will reduce its debt level to 200 percent.

    E-Land has been accumulating more debt as some of its brands like New Balance have lost traction among young consumers.

    Other analysts believe the group is excessively focused on physical expansion, increasing the number of brick-and-mortar stores even though more are turning to online and mobile shopping.

    Faced with headwinds, E-Land Group companies saw their credit ratings downgraded in December by the Korea Investors Service.

    There are 1,300 Teenie Weenie stores in China. Last year, the brand earned 421.8 billion won in sales while generating 112 billion won in operating profit and 86.3 billion won in net profit.

    V-Grass was established in 1997 and specializes in high-end women’s fashion.

     

  • Scuba Diving Equipment Market in South Korea to Grow

    Scuba Diving Equipment Market in South Korea to Grow

    The scuba diving equipment market in South Korea to grow at a CAGR of 5.97% during the period 2016-2020.

    The report covers the present scenario and the growth prospects of the scuba diving equipment market in South Korea for 2016-2020. To calculate the market size, the report has taken into consideration the revenue generated from the retail sales of scuba diving equipment to individual consumers, as well as rental and sports clubs in South Korea. However, the break-up of these end-users has not been provided in the report.

    A trend which is helping to boost market growth is product improvements in diving equipment and apparel. The growing number of value-added and innovative scuba diving equipment launches is an important trend, which is expected to have a positive impact on the market’s growth during the forecast period. Vendors are focusing on the introduction of innovative product offerings in terms of design, color, shape, and weight, to cater to the varying needs of consumers. The transition from beginners to seasoned recreational divers necessitates the use of diving equipment that is required for diving deeper, staying underwater for longer durations, and also requires carrying more equipment.

    According to the report, a key growth driver is the rising interest in shark diving. Shark diving is garnering huge popularity among both local divers as well as tourists in South Korea in recent times, which is one of the major factors driving the growth of the scuba diving equipment market in the country. Shark diving in South Korea is now being promoted as an eco-tourism initiative by the government, and is expected to increase the interest for scuba diving among diving enthusiasts, particularly among tourists.

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  • Safilo Group signs exclusive distribution agreement with Seeone in South Korea

    Safilo Group signs exclusive distribution agreement with Seeone in South Korea

    Italian eyewear specialist Safilo Group has signed an exclusive distribution agreement in South Korea with Seeone, a respected local commercial eyewear operator.

    The new partnership is effective from 1 February. However, Safilo’s Korean duty free business will continue to be managed through the group’s global travel retail organisation and its local agents.

    Safilo said the distribution deal is in line with the company’s plans to change its local affiliate business model in Korea where it aims to further develop its brand portfolio.

    Seeone stated it would ensure a “seamless transition and smooth continuation of customer service to all optical retailers for all Safilo brands, including supply of products and after sales service”.

    Safilo Group CEO Luisa Delgado said: “We welcome Seeone to Safilo’s worldwide partner network, where our over 50 exclusive partners across the world contribute their unique commercial capabilities and local market leadership to Safilo’s growth strategy, serving the local retailers on our behalf.

    “Seeone brings an excellent track record of service and understanding of the Korean customers trade dynamics. We share a mutual belief in growing optical brands through quality distribution and operations, and relevant product design.

    “South Korea has for Safilo a strategic global importance, as a domestic market, design trend setter for Asia and worldwide, and as an important Asian tourist destination. We are therefore committed to building an effective business in Korea for the longer term,” Delgado concluded.

    Seeone CEO Sungjoo Ko commented: “This partnership is important for us. Safilo’s brand portfolio covers all market segments, with high quality eyewear. Their products are innovative and they have a history of leading craftsmanship and product design. With them, we see important growth opportunities that will strengthen our business in Korea.

    “Safilo is the world’s second global eyewear leader. We will represent them with rigour and quality in Korea’s independent optical channel.”

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  • Taiwan, South Korea feel pinch as Chinese Lunar New Year tourism slows

    Taiwan, South Korea feel pinch as Chinese Lunar New Year tourism slows

    The weeklong Lunar New Year holiday season has started in China, and surrounding countries and regions are expecting the usual surge in spending by Chinese tourists. This year, however, things may be different.

    According to China’s biggest online travel agency, Shanghai-based Ctrip, the number of Chinese visiting foreign countries during the holiday period this year is expected to level off, at around 6 million, as a weaker yuan has made shopping overseas less advantageous.

    The depreciation of the yuan has slowed the growth in the number of Chinese tourists going abroad. A survey found that prices of tours to Asian destinations from China during the Lunar New Year holiday season rose more than 10% after the yuan fell 6.6% against the U.S. dollar.

    In addition, the popularity of countries and regions whose relations with China have been strained has sharply dropped among Chinese tourists. The hardest hit may be Taiwan and South Korea.

    Taiwan has seen a decline in Chinese tourists since President Tsai Ing-wen, whose party advocates independence for the island, took office last May. Relations between Taipei and Beijing have cooled significantly under Tsai, compared with the eight-year reign of her predecessor, Ma Ying-jeou.

    The number of Chinese tourists visiting Taiwan during all of 2016 fell to 3.51 million from 4.18 million a year earlier, according to the Taiwanese Tourism Bureau.

    “We haven’t been seeing Chinese tourists lining up for visas for Taiwan since mid-2016,” a Taiwanese Tourism Bureau official said. The situation has been improving recently thanks to the approaching Chinese New Year holiday, but “incoming Chinese tourists will still drop substantially from a year ago, for sure,” the official said.

    The decline in tourists participating in group tours has been the most noticeable, compared with visits by self-guided Chinese tourists, according to the bureau.

    Self-guided Chinese travelers tend to go to different places and eat differently, compared with group tourists. Group tourists visit popular spots such as Sun Moon Lake or Alishan, shop more in souvenir stores, and eat group meals, while self-guided tourists like to visit exotic towns such as Jiufen, Shifen and Pingxi. Independent travelers also spend more time in the southern Taiwanese town of Kenting, enjoying beaches and water activities.

    South Korea

    South Korea expects 140,000 Chinese tourists will come to the country during the Lunar New Year holidays, an increase of 4% from a year earlier, according to the Korea Tourism Organization.

    The country used to be one of Chinese tourists’ most popular destinations. During all of last year, 8.1 million Chinese visited South Korea, up 34.8% from 2015. They accounted for 46.8% of foreign visitors to the country. But growth has slowed, reflecting China’s souring relationship with South Korea over the U.S. military’s introduction of the Terminal High Altitude Area Defense missile defense system on the Korean peninsula. Word in the local tourism industry has it that Chinese government officials have instructed travel agencies to reduce the number of visa applications for South Korea.

    The slowing growth in Chinese visitors is worrisome for duty-free shop operators in South Korea. In an attempt to attract Chinese tourists, industry leader Lotte Duty Free has begun giving gifts to all shoppers from greater China at its head store in Seoul if they make purchases worth $1,000 or more.

    At Gimhae International Airport in Busan, the Busan Tourism Organization set up a photo zone where tourists can take a photo with a model dressed in Korean royal apparel. The agency will also host welcoming events at the Busan International Passenger Terminal for Chinese tourists arriving on cruise ships. Interpreters and volunteers will be dispatched to the terminal to help them.

    In a distinct contrast, Malaysia, which has maintained good relations with Beijing, is enjoying a substantial surge in Chinese tourists.

    Thanks to a number of promotions by the Malaysian government, tourist arrivals from China have increased considerably. Between March and December last year, the number reached 2.2 million, compared with 1.2 million during the same period in 2015. That number is expected to increase further as the country looks to draw in more holidaymakers during China’s “golden week” break.

    Alibaba Group has launched Alitrip Malaysia Tourism Pavillion, an e-marketplace offering travel products and services.

    Following in the footsteps of budget carrier AirAsia, Malaysia Airlines has extended its reach further into China’s second- and third-tier cities. The national flag carrier will start nine new routes in 2017, connecting Malaysian cities to destinations including Haikou, Nanjing, Fuzhou, Wuhan, Chengdu and Chongqing. AirAsia is one of the biggest foreign airlines operating in China, offering over 300 weekly flights.

    Retailers in Hong Kong are also feeling the effect of the weaker yuan. Mainland visitors may be back for the Chinese New Year, but their waning spending power is seen as bad news. “Many of them are looking for bargains rather than luxury goods, and shopping for themselves rather than friends and relatives,” said Thomson Cheng Wai-hung, chairman of the Hong Kong Retail Management Association.

    Businesses have mixed views on Chinese New Year sales. Retailers are worried about a falling Chinese yuan that discourages spending. The Hong Kong dollar’s peg to the stronger U.S. dollar will make shopping more expensive for mainlanders. “This is negative for us,” said Cheng. Tourism sector lawmaker Yiu Si-wing expects hotel bookings to be satisfactory, as a recent correction in room rates will partly offset the currency impact for mainland tourists.

    In December, Chinese tourist numbers in Hong Kong reversed months of declines to grow 6.1% from a year earlier, led by a 9% spike in mainland arrivals during the four-day Christmas holiday. But recent official statistics show that their average spending per trip was 7,100 Hong Kong dollars ($915) in the first half of last year, down from HK$9,000 in 2014.

    “Hong Kong’s tourism industry has entered a period of adjustment,” Gregory So Kam-leung, the territory’s secretary for commerce and economic development, said on Jan. 23. He said the territory would roll out 16 food trucks selling local snacks and international cuisine, in addition to an annual night parade at an estimated cost of HK$33 million, to woo visitors during the week of the Chinese festival.

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  • Profits fall again at South Korea’s LG Electronics

    Profits fall again at South Korea’s LG Electronics

    South Korea’s LG Electronics on Wednesday reported its second successive year of slumping net profits due partly to weak smartphone sales.

    Full-year net profit for 2016 was 126.3 billion won (Dh398 million, $109.3 million), the Seoul-based firm said, down by almost half on 2015 — when they had fallen by 50 per cent.

    The company produces a range of products, from mobile phones to televisions and home appliances including air conditioners, washers and refrigerators.

    It said in a statement it fell into losses in the fourth quarter, taking hits in its mobile telecommunications and vehicle components businesses.

    LG Electronics made a net loss of 258.8 billion won ($224 million) in the October-December period.

    Its home appliances and home entertainment units both turned in strong performances, but in mobile communications “profitability was hampered by weak sales of the G5 smartphone and higher marketing investments”.

    LG has struggled for years to increase its smartphone sales after a late entry into the market dominated by Samsung and Apple.

    It has since found itself hemmed in by emerging Chinese rivals such as Huawei or Xiaomi.

    Its vehicle components unit saw revenues jump by nearly two-thirds in the fourth quarter, but “R&D investments negatively affected profitability”, it said.

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  • Luxottica and DFS host worldwide exclusive launch of Prada Cinéma sunglasses

    Luxottica and DFS host worldwide exclusive launch of Prada Cinéma sunglasses

    Luxottica Global Channels, part of Luxottica Group, and DFS Group have joined forces in a worldwide exclusive launch of the new Prada Cinéma sunglasses collection. The limited edition range has been available exclusively at selected DFS airport and T Galleria by DFS stores since November 2016 (until February 2017), with support from a dynamic 360-degree omni-channel marketing campaign.

    Luxottica Global Channels and DFS Group have joined forces in a worldwide exclusive launch of the new Prada Cinéma sunglasses collection. The limited edition range has been available exclusively at selected DFS airport and T Galleria by DFS stores since November 2016, with support from a dynamic 360-degree omni-channel marketing campaign.

    The campaign utilises both online, including social media, and offline platforms to engage with customers before, during and after they shop, with further digital amplification provided on DFS’ website and email newsletter. The online reach is designed to drive traffic in-store, where shoppers are presented with a number of high-profile activations from Prada, including at DFS stores at Hong Kong International Airport and T Galleria in downtown Hong Kong. The launch is said to represent a pioneering step for the sunglasses category in travel retail.

    Shopper engagement is further enhanced through Prada-branded boxes of chocolate from Marchesi, a famous Milanese confectionery shop, which are offered as a gift-with-purchase.

    “Digital communication in travel retail is a hot topic, and offers undeniable and incremental opportunities to build brands and enhance retail performance,” comments Francis Gros, Head of Global Channels, Luxottica. “The ‘Prada Cinéma’ campaign showcases how a special new product can be strategically amplified to connect with travelling consumers, beyond the physical stores, on targeted platforms. DFS continues to deliver innovative ways to engage with customers and has been very supportive of the Sunglasses VISION 2020. We seek to make travel retail the expert channel for sunglasses, growing the category to be worth over 4% of total travel retail sales.

    The launch of the new Prada Cinéma sunglasses collection is said to represent a pioneering step for the sunglasses category in travel retail.

    Jason Blejwas, Director Merchandising Sunglasses, Fashion Watches and Jewellery, DFS Group, adds: “We are thrilled to extend our long-standing partnership with Luxottica to bring the ‘Prada Cinéma’ collection first to DFS stores, and to celebrate this exciting moment with our customers both in-store and online. We’re confident that both the product and experience will make for a memorable moment for travellers visiting DFS.”

    Hear more from Luxottica at the 26th Airport Commercial & Retail Conference & Exhibition, hosted by Aéroport Nice Côte d’Azur and taking place on 3-5 April 2017 at the Hyatt Regency Nice Palais de la Méditerranée. Francis Gros, Head of Global Channels, Luxottica, is participating in the First Working Session “Is there a big problem in the airport retail space? Are conversion rates and yields performing far below expectations?” His presentation is entitled “In order to maximise yield, airports should scientifically identify which categories are the clear stand-out, star performers and position them accordingly. What is the evidence that they actually do this?”

     

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  • South Korea duty free sales grow +33% to $10.5bn

    South Korea duty free sales grow +33% to $10.5bn

    According to the Korean Customs Service (KCS) which recently shared some Korean duty free sales figures with the local media, the total DF market in South Korea grew by +33.5% in 2016, registering sales of KRW12,275.7bn (US$10.56bn)

    The No. 1 duty free retailer in South Korea, Lotte Duty free, registered sales of KRW5,972.8bn (US$5.13bn)in 2016, whilst second-placed Shilla Duty Free saw sales rise to KRW3,405.3bn (US$2.93bn).

    Shinsegae Duty Free posted sales of KRW960.8bn (US$826m).

    By product category, sales of cosmetics – the highest-grossing product category – rose to KRW6,273.3bn (US$5.4bn); sales of handbags reached KRW1,735.6bn ($1.5bn); watches KRW935.9bn (US$804.5m) and tobacco KRW593.5bn ($510.2m).

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  • CT Corp moving to open cinemas

    CT Corp moving to open cinemas

    Indonesia’s retail/media conglomerate CT Corp is partnering with cinema companies to open movie theatres in its retail complexes.

    CT retail arm Trans Retail has announced a partnership with Graha Layar Prima, which runs the Korean-owned CGV cinema chain (formerly known as Blitz Megaplex), to develop cinemas at CT’s Transmart Carrefour stores across Indonesia. Launched last year, the Transmart centres feature restaurants, apparel stores and supermarkets. There are presently 13 outlets, with a US$3 billion plan to expand the number to 100 by 2019.

    CT founder/chairman Chairul Tanjung says that over the next three years a minimum of 500 cinema screens will be opened in Transmart centres.

    GLP will open CGV cinemas in four Transmart centres in Java and Sumatra in May, with plans to add four more by the end of the year. Each cinema will have five screens and include 4D entertainment systems, sofa-type seating for couples and VIP spaces that serve drinks and snacks.

    GLP says its cinemas attracted more than 10 million visitors last year, a 150 per cent increase from 2012. It aims expand its network of cinemas to 40 from the current 27.

    Meanwhile, Singaporean sovereign wealth fund GIC is to acquire an undisclosed stake in cinema company Nusantara Sejahtera Raya (NSR) for 3.5 trillion rupiah (US$262.9 million).

    Trans Retail has just signed a deal to install NSR’s Cinema XXI movie theatres in at least four Transmart stores this year.

    Meanwhile, mall management company Lippo Group is expanding its own cinema business, with plans to have 2000 screens across 85 cities by 2024.

  • Pie Face expansion plan in Japan and Korea

    Pie Face expansion plan in Japan and Korea

    As it turns around and heads toward profitability again, Australian fast-food chain Pie Face has plans to expand into Japan and South Korea.

    Its receiver flags the hot-pie business will be sold soon, but it has left behind a trail of destruction: secured debt is AU$4 million (US$3 million) and unsecured debt is estimated to be nearly AU$5 million, with employees alone owed more than AU$1 million.

    Also, listed Retail Food Group has made an application to the Queensland Supreme Court to wind up Pie Face Australia over an unpaid debt. But many creditors are unlikely to receive payment out of the receivership, says Pie Face trading entities joint receiver Liam Bailey, a partner at insolvency firm O’Brien Palmer.

    “I can’t speak to what the liquidator may be able to recover and pay them as a dividend, but it’s unlikely a surplus will be generated on the sale of the business, allowing funds to flow to unsecured creditors.”

    The Pie Face company runs a commercial kitchen and wholesaling business, Pie Face Holdings, which owns the intellectual property as well as Pie Face Franchising, which oversees its franchised business in Australia.

    US market

    Bailey became involved after Pie Face went into receivership for the second time in two years late last year. Founded in 2003 by couple Wayne Homschek and Betty Fong, after spreading through Australia the company moved into the US market and planned to open stores in the Middle East, Japan, Korea and the Philippines.

    Investors including retail entrepreneur Brett Blundy, Fat Prophets founder Angus Geddes and Rothschild Australia chairman Trevor Rowe had poured more than $35 million into Pie Face since 2009 with hopes of a sharemarket listing, reports The Age.

    In 2014, Pie Face collapsed owing tens of millions of dollars, sparking store closures, job losses, lawsuits and board changes. Pie Face then struck a deal with financier TCA Global, which took over loans to major lender Macquarie bank.

    Under a deed-of-company arrangement, unsecured creditors such as food suppliers agreed to receive between 14¢ and 19¢ in the dollar over several years, and Pie Face changed its focus to wholesale and direct retail sales.

    When this turnaround bid came unstuck, TCA Global appointed O’Brien Palmer in late October. The business was then restructured for sale. A new CEO and CFO were appointed, 11 unprofitable stores were closed and three franchised stores were opened. Nearly 100 staff members lost their jobs.

    Pie Face now has 30 franchised stores, about 10 people in its head office and 60 to 70 kitchen workers – and plans to expand overseas, particularly in Japan and South Korea.

    Bailey says seven or eight companies are now conducting due diligence, with binding offers due in at the start of next month.

    “We were very much taken aback by the level of interest in the business notwithstanding the bad press it has received over the years,” he says. “There’s a lot of recognition of the growth potential, if properly managed.”