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Tag: lifestyle

  • Manolo Blahnik opens its first flagship store in Taiwan

    Manolo Blahnik opens its first flagship store in Taiwan

    In May 2018, Manolo Blahnik opened its doors to the public at the triple tower complex Marina Sands Bay in Singapore, strengthening its presence in Asia with Bluebell Group. In January 2019, Manolo Blahnik continues its expansion into Asia with the opening of its first flagship store in Taiwan. The brand is known for its original and creative flair as well as timeless classic styles, which loyal customers from film stars to leading editors, to women who just trust his perfectionism, come back to again and again.

    The newly opened Manolo Blahnik store, a 65 square metre space with a privileged location within the Nanshan Plaza shopping centre, showcases the world-renowned shoes on the first floor of the new upscale retail destination.

    Nick Leith-Smith, the brand’s long-serving architect, said: “Taipei flagship celebrates a material play on Taiwan’s deep cultural and historical connection to bamboo – with a rotating bamboo forest as a central motif. At first, orderly, and geometric, yet with the dynamic movement introducing a curious playfulness to entice and enchant.”

    The new store is another step forward for the company in its expansion across  important markets; and another milestone achieved in the history of the family-owned business that has prevailed in the luxury shoe industry for nearly fifty years.

    The creative soul of the brand is still Mr. Blahnik who, with a career spanning over 40 years, has become one of the world’s most influential footwear designers. His shoes have spellbound an international set of adoring and loyal devotees across the globe.

    He was born in the Canary Islands to a Spanish mother and a Czech father, he studied languages and art in Geneva before moving to Paris in 1965 where he decided to become a set designer.

    On a visit to New York in 1970, he showed his theatre designs to Diana Vreeland, then editor-in-chief of American Vogue, who honed in on his shoes and encouraged him to concentrate on them. Blahnik learnt the art of making shoes by visiting factories, where he talked to machine operators, pattern cutters and technicians. By 1970, he was in London making shoes.

    A year later, Ossie Clark, then the most famous designer in London, used his shoes and from there his career blossomed.

    Manolo Blahnik was established in 1970 with the opening of the first boutique
    in Chelsea, London. It is still a privately owned and family run business with Mr. Blahnik as Creative Director and his sister Evangelina Blahnik led by the enthusiasm of  Kristina Blahnik.

    Kristina, CEO of the company since 2009,  is in charge of brand expansion and optimization of the business worldwide, and in Asia, their transformation is the the result of a long-term partnership with Bluebell Group, which stated in Japan, Malaysia, and Singapore, and Taiwan.

    Kristina, the walking embodiment of the woman her uncle, Manolo designs for, before the latest opening said: “I am thrilled at our new venture with the Bluebell group, they have already demonstrated to be an excellent partner in launching beautiful spaces in prestigious locations”.

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  • Zen Group Thailand prepares to go public

    Zen Group Thailand prepares to go public

    Thailand’s Zen Group is planning to list an IPO to fund expansion of its restaurant chains. With designs to become the leader in Thailand’s food service industry, the company plans to sell 75 million shares in the firm. The proceeds are expected to fund new restaurants in both domestic and international markets, as well as improving existing venues and increasing efficiency.

    While the Japanese-themed chain Zen is the group’s best-known chain, it also operates a string of Thai-branded restaurants including Tummour and Khiang, along with Japanese brands Aka, Musha, On the Table, Vietnamese chain IWO Pho and a Singaporean-style Granny’s Chicken Rice.

    “This year, we plan to add 36 of our owned branches and 87 franchise branches, and in 2020, we plan to expand by a further 50 of our owned branches and 175 franchise branches”, said CEO Boonyong Tansakul.

    The group expects its total revenue to reach THB10 billion (US$315.55 million) by 2022.

    “In the past two years, the group has invested in the management system within the organisation, including increasing personnel and investing in information systems to support business expansion both domestically and internationally”, said Tansakul.

    “This has led to increased administrative expenses, but the result is that at present the group stands ready to expand business and can use the support base that it had prepared beforehand to fully support growth”.

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  • Facebook strikes deal with SK to pay data fees

    Facebook strikes deal with SK to pay data fees

    Facebook reportedly finally agreed to pay data traffic fees to SK Broadband after two years of negotiations. According to local media reports Sunday, the social media giant and internet provider agreed to a two-year network usage deal to set up a cache server for temporary data storage and provide fast Facebook access to SK Broadband users. While the two companies did not confirm the exact sum, Facebook will reportedly pay more than what it previously proposed during negotiations.

    SK Broadband is not the first internet provider that Facebook will be paying in the country. In 2015, it signed a contract with KT to open a cache server. The two companies are currently working on renewing the contract after it expired last July.

    The new deal with SK Broadband comes after Facebook faced negative press for inconveniencing users while trying to avoid paying network fees to SK Broadband and LG U+.

    In late 2016 and early 2017, the social media giant re-routed non-KT users to its server in Hong Kong when they tried to connect to the platform, slowing down access considerably. The Korea Communications Commission charged the company 396 million won ($353,900) in fines and ordered it to change its practices.

    Following the agreement with SK Broadband, the social media giant is expected to open up a cache server with the internet provider.

    The company is also reported to be working with LG U+ on a similar deal.

    The recent deal highlights the question of whether other foreign IT giants will follow suit and pay data traffic fees to Korea’s network providers.

    Many Korean businesses have complained that current laws and practices hurt domestic firms. Naver and Kakao, for example, pay around 70 billion won and 30 billion won every year to Korea’s three network providers to compensate for their high traffic volume, while Google and Netflix – which are thought to be responsible for half of Korea’s data traffic together with Facebook – pay none.

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  • Indonesia’s Danamon Bank Plans Merger With BNP

    Indonesia’s Danamon Bank Plans Merger With BNP

    Bank Danamon, Indonesia’s fifth-largest private lender, announced a plan on Tuesday to merge with local lender Bank Nusantara Parahyangan. “The proposed merger is subject to approval by the relevant regulatory authorities, both banks’ shareholders, and to meeting the legal formalities for such a transaction,” Bank Danamon said in a statement on Tuesday.

    This is part of a larger plan by Japan’s Bank Mitsubishi UFG (MUFG) to acquire a 73.8 percent stake in Bank Danamon.

    Bank Danamon and Bank Nusantara Parahyangan (BNP) are now able to merge after MUFG acquired 40 percent of Danamon in August last year.

    Aside from owning Bank Danamon, MUFG also holds a majority stake in BNP through its subsidiary, Acom, one of Japan’s largest loan companies.

    Bank Danamon and BNP are required to merge as Indonesia applies a single-presence policy, which ensures that one single entity does not hold a majority stake in more than one company.

    MUFG’s plan for acquiring a majority stake in Danamon has been laid out in three stages.

    In the first stage, which was completed in December 2017, MUFG acquired a 19.9 percent stake in Danamon from Singapore’s wealth fund firm Temasek for $1.17 billion.

    The Japanese lender subsequently raised its stake in Danamon to 40 percent last August with the acquisition of a further 20.1 percent. In the final stage, the Japanese lender will seek approval to acquire the remaining shares, which in total, will give it a 73.8 percent stake.

    The acquisition is the part of MUGF’s ambitious plan to expand its presence in the region.

    The deal marks the largest acquisition of an Indonesian company by a foreign entity after American multinational cigarette and tobacco manufacturer Philip Morris International bought a 60 percent stake in HM Sampoerna for $3 billion.

  • Greater China helps ease Tod’s Group European challenge

    Greater China helps ease Tod’s Group European challenge

    Luxury fashion retailer Tod’s says Greater China sales rose 3.2 per cent last year, to reach €218.7 million. Releasing annual sales results, the Italian-based company said Greater China sales growth accelerated during the fourth quarter, especially on the mainland which now accounts for 60 per cent of its Asian turnover. Hong Kong and Macau also performed well, although the company did not disclose detailed figures for the two territories.

    Tod’s consolidated global sales reach €958.2 million at constant exchange rates, which was essentially the same as for 2017. Tod’s and Roger Vivier were affected by currency fluctuations.

    Retail sales reached €622.3 million, with wholesale revenue comprising the rest. However same-store sales fell by 3 per cent, due to declines across Europe which erased the China growth. In Italy, consumers were spooked by political and economic uncertainties and greater Europe by lower sales to tourists.

    “Last year’s sales results were substantially in line with our expectations, despite the growing international economic and political uncertainties,” said chairman and CEO Diego Della Valle.

    By label, Hogan sales rose 1.8 per cent, Tod’s and Roger Vivier held steady and Fay slipped 3.4 per cent.

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  • International Food Business: Current scenario and future in India

    International Food Business: Current scenario and future in India

    The misconception about Gourmet Food in India is amazing. There are many who equate gourmet with imported food, which is far from the reality. To encapsulate what the concept of gourmet is all about, let me say that it is less about the food than about the person who is the subject of the word. The term and its associated connotations are used positively to describe people with a refined taste and passion towards food.

    Add the word gourmet to any food or drink and, voila, it feels fancier, more upscale and generally more desirable. Gourmet food connotes food and drink that takes extra care to make or acquire. Gourmet food has a certain flair around it as it is usually found or made only in certain locations. The ingredients used are usually exotic, hard to find in regular grocery stores, and they are usually unique in flavor and/ or texture. Gourmet ingredients usually blend herbs and spices in an interesting manner to add flavour to the food. For example, lemon olive oil spray, black truffle balsamic glaze, and white wine vinegar are a unique take on the otherwise simple ingredients.

    Being an advocate of international food business for over 20 years now, I have seen the F&B sector in India go through various highs and lows over the years. But the one thing that I can say with absolute certainty is that the gourmet food category in the country has a tremendous scope and potential to grow in multiple areas, many of which still remain a virgin territory for food companies wanting to explore the business of international foods. We have been working diligently to bring new and exciting global gourmet food brands from all around the world to India. We have built our reputation through a commitment to offer unique products at competitive prices and we strive to never compromise on the quality of products or services that we offer. It is a passion for many of us who function in the realm of international food business and we aim to bring diversity to our Indian consumer base.

    Two-Way Trade is the Key to Future

    We firmly believe in two-way trade and in the current globalized world, it is a grave mistake to keep our consumers deprived of food options and opportunities available elsewhere in the world – from gourmet cheese to epicurean chocolates to the varieties of rice or spices or fresh fruits or exotic vegetables. The list is never ending and we must continue to explore to make it even more expansive. Unfortunately, our trade figures have been none too encouraging on this count. In the calendar year (CY) 2016, India exported consumer foods worth US$ 11 billion and imported consumer foods valued at US$ 4.25 billion. While our exports grew by 0.50 percent over the previous year, imports showed a decline of about five percent.

    The low takeoff of international food in India is surprising considering that there are quite a few success narratives around it: Italian pasta, Vietnamese basa, mayonnaise, Californian almonds, Canadian canola oil, Chileans walnuts and Washington apples, to name a few. When we look at Italian pasta, considered to be one of the most gourmet ingredients in Italian cuisine, the product is widely available in the country – from hand made to artisanal to commercially made – and it has penetrated the deepest corners of the Indian market with extensive marketing, transforming the kitchens of the aspirational Indians.

    A commodity like Californian almonds, which has about 80 percent of almond market share in India, touched a whopping US$ 693 million sales figure in India for 2016.

    For imported foods to expand their consumer base in India, it must be kept in mind that Indian consumers are rational shoppers who want value for money.

    Obviously, there is no one-size fits-all concept for a country as big as India but to have a deeper market penetration it is important to learn from the market leaders and try to do things the right way. Many of us confuse India with China, which is just not the case as the Indian market has its own set of business dynamics and consumption patterns here continue to evolve and offer valuable lessons in business.

    Teething Issues and Role of Associations like FIFI

    While on the one hand, we are facing teething issues like those associated with demonetization or Goods and Service Tax (GST), on the other hand, we also have government agencies like the Food Safety and Standards Authority of India that is willing to think out of the box and listen to the version of the trade side. We, at the Forum of Indian Food Importers (FIFI), have given numerous representations to Government of India and are pleased to note that several of our suggestions have been entertained as we always had a logical and scientific presentation to make. We still have some pending areas of concerns but are pretty confident that the regulator and trade will be able to come together on a common ground in the interest of the greater good of the food industry and consumers. Food safety is of utmost priority for us and, as industry representatives, we want global suppliers to understand the fact that Indian consumers have become very demanding and want only quality products. We are clearly out of the era when international companies looked at India as a not very important market for their food products. For many global food companies, India is now a critical country for doing international trade.

    Government’s Initiatives

    The Food and Beverage sector is governed by several Government of India agencies like Ministry of Health’s Food Safety and Standards Authority of India (FSSAI), Ministry of Food Processing and Industries (MoFPI), Ministry of Consumer Welfare, Food and Public Distribution, Ministry of Agriculture, Ministry of Commerce and Industries, and Ministry of Finance.

    With Government of India’s “Make in India” campaign, MoFPI aims to boost growth in the food processing sector by leveraging reforms such as 100 per cent foreign direct investment (FDI) in marketing of food products and by offering various incentives at the central and state government level along with a strong focus on supply chain infrastructure.

    – Government of India has relaxed foreign direct investment (FDI) norms for the sector, allowing up to 100 percent FDI in food product e-commerce through the automatic route.

    – FSSAI plans to invest around Rs 482 crore (US$ 72.3 million) to strengthen the food testing infrastructure in India, by upgrading 59 existing food testing laboratories and setting up 62 new mobile testing labs across the country. Additionally, FSSAI has been aggressively introducing numerous notifications pertaining to imported Food and Beverage category.

    – The Indian Council for Fertilizer and Nutrient Research (ICFNR) will adopt international best practices for research in the fertiliser sector, which will enable farmers to get good quality fertilizers at affordable rates and thereby achieve food security for the common man.

    International Chains Entering Indian Market

    With India opening the doors to numerous international restaurant chains, the youth is able to break the tradition and try several new international cuisines. This exposure is generating employment, changing the F&B scenario in India, bringing in international business practices, world-class technology, standard operating procedures and opening the way for trade. These chains buy imported ingredients or products to get a marketing edge or when such ingredients are not available domestically. They are able to lead the way for upscale manufacturing in the country and create more avenues for employment. It is important for us as an industry to understand that our strategy should be to grow hand-in-hand with these international chains and to open more ways for doing business with all stakeholders. Some of these chains, which already have a sizable market presence in India, are Chilli’s, Barista, Café Coffee Day, Au Bon Pain, McDonald’s, Subway, KFC, Starbucks, Tacobell, among others.

    Market Size Growing Despite all Odds:

    Despite numerous challenges such as high base tariffs and the fallout from the implementation of new regulations like demonetization and GST, the Indian market for imported and international foods is showing a noticeable growth trend. India is emerging as a favorite market destination for many national and international players in the food business. The Indian foodservice sector is valued at US$ 48 billion and is anticipated to grow to US$ 77 billion at a Compound Annual Growth Rate (CAGR) of 10 percent by 2021. The Indian food and grocery market is the world’s sixth largest, with retail contributing 70 percent of the sales. The Indian food processing industry accounts for 32 per cent of the country’s total food market, is one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. The Indian gourmet food market is currently valued at USD 1.3 billion and is growing at a CAGR of 20 percent. India’s organic food market is expected to increase three times its current size by 2020.

    The online food ordering business in India is in a nascent stage but has a huge potential and a promising future. The online food delivery industry grew at 150 percent year-on-year with an estimated Gross Merchandise Value (GMV) of US$ 300 million in 2016.

    Emergence of Social Media

    We should not underestimate the role of the new generation bloggers and social media enthusiasts who are instrumental in shaping the trends and are helping brands and products to get visibility and gain popularity with the consumers. They are emerging as an alternative to the traditional media and are a less expensive media tool. However, they also act as watchdogs of quality and standards for the foodservice industry. Social media is helping to generate exciting stories around the foodservice industry but at the same time, we need more honest voices that understand the food business and its nuances better.

    Traditional Marketing Avenues Still Hold True

    While new marketing tools are becoming popular, the traditional methods should not be considered obsolete as they continue to have deeper penetration and visibility. Participation at trade shows and conferences, print and electronic media activities continue to rule the game and offer a range of visibility without comparable alternatives.

    Way Forward for the Imported F&B Industry

    The Indian consumers represent a community of diverse sentiments. A majority of them favour an experimental palate, which creates a plethora of opportunities for the international F&B sector in country. While maintaining a balance between aspiration and tradition agrees perfectly with the Indian palate, culinary trends originating in the West are promptly picked up by Indian social media and are translated on the ground with an instant recognition. The earlier practice of trends coming to India after three to five years of introduction in the Western world is now a thing of the past. This willingness to accept international trends without any inhibition has played a pivotal role in the marketing of international brands in India and has opened up the entire market for international foods. As a result, recent years have seen the launch of numerous new categories like gluten-free breads, organic chocolates and many others products in country. However, as mentioned earlier, it is important for us to ensure quality delivery to our consumers and adhere to the food safety regulations. We need a more organized voice in trade to echo the this message and to take the India story to many more global markets.

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  • Crocs India opens 109th store

    Crocs India opens 109th store

    Crocs, the iconic casual footwear brand, announced the launch of its 109th store in India at Ballygunge, Kolkata. Crocs inaugurated the 580 sq.ft. store situated in one of the poshest high-street vicinity of Kolkata. With this new store, Crocs promises to strengthen the reach of the iconic brand in the ‘City of Joy’; where now has seven stores. The other stores of Crocs in Kolkata are located at City Centre New Town, Camac Street, Forum Courtyard, City Centre Salt Lake, Axis Mall, Rajarghat-New Town, and Acropolis in Kolkata.

    The new store showcases the recently launched Spring Summer’19 collection along with an array of styles which include sandals, loafers, sneakers, flip-flops, and clogs suitable for all age groups.

    Speaking on the launch, Deepak Chhabra, CEO & MD, Crocs India, said, “Kolkata is crucial market for us with huge potential and high fashion sensibilities. We are pleased to announce the launch of our 7th store in the city and will continue to strengthen our presence in the state of West Bengal. In addition to aggressively growing our EBOs, we will be strengthening our presence in tier-2 cities via MBOs and Kiosks. Further, e-commerce will remain an integral part of our distribution strategy and help us reach out to consumers where our brick and mortar presence is limited.”

    With unparalleled brand awareness and break-through product innovations, Crocs is progressing towards becoming India’s top non-athletic casual footwear brand. India is currently the 6th biggest market for Crocs globally with a double-digit growth year on year.

    Over the past 16 years, Crocs has sold more than 350 million pairs of shoes worldwide. Crocs as a brand will continue to focus on clogs and sandals, along with new product innovations and extensions of the current product line.

    Last year, Crocs launched its newest innovation ‘LiteRide™’ which is available in Flips, Slides, clogs, shoes and sandals. The LiteRide™ Collection merges sporty, on-trend styles and silhouettes with the legendary Crocs comfort that consumers expect. LiteRide™ has redefined comfort, taken the brand’s style quotient a notch higher and it has been a stellar success across genders and age groups.

    The associations with Christopher Kane and Balenciaga in the last couple of years has also further elevated the fashion appeal of the brand.

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  • Gourmet Investments brings Ministry Of Crab to India

    Gourmet Investments brings Ministry Of Crab to India

    Gourmet Investments Pvt. Ltd brings Mumbai’s most awaited launch of the year with the unveiling of Ministry Of Crab’s first-ever outlet in India. The grand launch of Sri- Lanka’s beloved restaurant is scheduled to take place at Zaveri House, Khar, Mumbai. Ministry Of Crab is the brainchild of celebrated chef and restaurateur Dharshan Munidasa in partnership with Sri Lankan cricket legends Mahela Jayawardane and Kumar Sangakkara. With its exemplary services and menu, Ministry Of Crab has safely secured its place for 3 consecutive years in the list of Asia’s 50 Best Restaurants.

    It was incepted in Sri Lanka on December 12, 2011 in the renovated 400-year-old Dutch Hospital, where it has successfully hosted the most renowned personalities from all walks of life. A haven for food lovers, Ministry Of Crab promises an unforgettable culinary experience with an array of intensely delicious recipes.

    Replicating success from the past, Ministry Of Crab becomes the newest entrant in India’s restaurant market by joining hands with GIPL. GIPL has extended unwavering support to a veteran of several landmark restaurant launches in India with the likes of PizzaExpress, Typhoon Shelter, The Bandra Project, The Runway Project, The Market Project, and The Poona Project. Through such partnerships, GIPL is committed to expanding its portfolio in food and beverage industry.

    Commenting on the partnership, Ramit Bharti Mittal, CEO of Gourmet Investments Pvt. Ltd., said, “We are thrilled to bring Ministry Of Crab to India. It is our constant endeavor to open doors for such brands that resonate with our values and we feel there couldn’t be a better choice for us than Ministry Of Crab. We see immense potential in Indian market for Ministry Of crab and through our strategic partnership, we embark on a new journey to deliver the best-in-class dining culinary experience to our customers.”

    Deepinder Batth, COO of Gourmet Investments Pvt. Ltd., says, “We envision transforming the gastronomic landscape of the country and with the launch of Ministry Of Crab, we feel we are moving towards that direction. MOC has received an exceptional response from food lovers in Sri-Lanka and Shanghai and we are excited to welcome the outlet in our country.”

    On coming to India, Chef Dharshan Munidasa says, “We are looking forward to working with Indian chefs in the country. As our delectable recipes are curated to perfection, we are sure the restaurant is slated to be an ultimate dining destination. We are happy to have partnered with Gourmet Investments, as they have shared our value system and are committed to bringing the DNA of Ministry of Crab to give our guests an authentic experience.”

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  • Siri House opens in Singapore with new concept

    Siri House opens in Singapore with new concept

    Hybrid showroom, restobar, retail space and gallery Siri House has opened in Dempsey Hill as a taste test for a planned flagship in Thailand.

    The venue combines multiple concepts into a single interconnected area, including mock interiors for Bangkok apartments, display spaces for Thai artists, and discrete retail corners focusing on Thai culture and designer items, with jewellery, apparel, accessories and various collectibles available for purchase.

    The store is currently trading seven labels, ranging from homeware and souvenirs to crafts and ceramics. Most products on sale have a quirky or artistic vibe.

    The venue also houses a 48-seat restaurant with art deco stylings, serving a colourful Asian-influenced menu alongside a selection of wines and cocktails.

    The Siri House flagship is scheduled to open in Bangkok by March.

    View gallery below for images of the store :

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  • Naver to open up TV service, take on YouTube

    Naver to open up TV service, take on YouTube

    Local IT giant Naver announced plans Thursday to make its Naver TV service an open platform where anybody can freely upload videos, pitting it in direct competition with YouTube. The company said it would apply the change during this year’s first half. Originally, only people with more than 300 subscribers on other video platforms were permitted to create a channel on Naver TV.

    Unlike YouTube, considered the playground of individual creators, most traffic at Naver TV is to come from short videos from TV shows uploaded by broadcasting or cable channels, like TvN or JTBC. Lowering the bar is intended to draw in the legions of individual creators who have begun to emerge in Korea over the last two years.

    “Naver TV was originally focused on offering video from TV for users that flow in via our search engine,” said a company spokesperson.

    “We gradually had small- or mid-sized studios upload web dramas or famous beauty creators joining our platform and by that experience we learned the patterns of how original content is consumed. Now we want to make it accessible to more creators.”

    Last week, Naver lowered the bar to 100 subscribers and simplified the process required to set up a channel, as a first step to earn feedback and find areas that need improvement before fully opening the door to everyone.

    As a strategy to boost users, Naver is devising a compensation system to reward creators according to their performance. Channels with more than 300 subscribers and whose videos were played for more than 300 hours will be offered the choice to roll advertisements.

    Naver CEO Han Seong-sook publicly stressed the importance of online videos multiple times last year, expressing a will to develop that sector.

    “The internet market is rapidly restructuring to be centered on videos – Naver will also invest more in line with this change,” she said in a conference call in July, pointing out how the younger generation no longer spends time on portal sites or social networks, but on video platforms.

    Naver’s traditional strengths are not in video but other services, such as its search engine, blogs and online communities. Regardless, the company has invested in its video services. Apart from Naver TV, its other main video service is V LIVE – a platform via which K-pop idols can host live streamed videos with fans. Around 70 to 80 percent of users at V LIVE are based overseas.

    “Instead of running a single platform like YouTube, our direction at the moment is to divide platforms according to usage and optimize the service that fits their respective purposes – V LIVE for fans and Naver TV for general creators,” said the Naver spokesman.

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  • Low export numbers put Hyundai profit in the red

    Low export numbers put Hyundai profit in the red

    Hyundai Motor swung to a net loss in the fourth quarter last year, largely due to the strength of the won over the U.S. dollar and weak global sales. It is the worst quarterly earnings reported since 2010, when the company first started posting earnings based on the International Financial Reporting Standards. Korea’s No. 1 automaker by sales on Thursday posted a net loss of 203.3 billion won ($180 million) for the quarter that ended December, a considerable drop from the 1.29 trillion won net profit inked a year earlier.

    The company cited weak earnings from its affiliated locomotive maker Hyundai Rotem, unfavorable currency rates and the sluggish growth of the global automotive industry as major reasons that pulled down earnings in the fourth quarter.

    It added that the cost of its investment into developing futuristic cars was also reflected.

    Hyundai already surprised investors when it posted 306 billion won in net profit in the third quarter, a 67.4 percent year-on-year drop. At the time, the company blamed one-off costs of airbags, engine quality control and marketing activities as well as currency rates to explain its losses and said the fourth quarter would be a better quarter.

    Following the two bad quarters, the carmaker’s annual net profit also dropped to a record low since 2010 – 1.645 trillion won last year, less than half of 2017’s 4.546 trillion won. In 2012, its annual net profit exceeded 9.056 trillion won.

    Choi Byung-chul, chief financial officer at Hyundai Motor, however, said the automaker was able to ramp up automotive sales in the fourth quarter thanks to newly-released SUVs and that the company’s performance could bounce back with several new car launches scheduled this year.

    According to the earnings report, revenue from the automotive business increased by 9.3 percent on year to 20,399 billion won in the fourth quarter. Operating income also jumped up 556.7 percent year on year to 463 billion won for automotives.

    The most recently launched Palisade SUV has been well received by Korean consumers after its launch last month, and a Hyundai Motor spokesperson said it is considering expanding production of the SUV in accordance with the demand. The carmaker has taken orders for 30,000 Palisades so far, according to Koo Za-yong, head of investor relations at Hyundai Motor.

    “Growth of the global automotive market is expected to slow down, but we will strengthen our brand competitiveness by launching cars in segments [that Hyundai had little presence in],” said Koo during a conference call with analysts on Thursday.

    Highly anticipated Hyundai cars this year include a new Sonata sedan and a premium SUV GV80 branded under Genesis.

    Hyundai plans to sell a total of 4.68 million cars this year by selling 712,000 units domestically and 3.97 million units abroad. Last year, the company sold 4.59 million cars at home and abroad, a 1.8 percent increase year on year.

    The automaker commented on its governance reform plans during the conference call as well. It plans to complete reforms this year to break the cross-shareholding structure between affiliates and improve shareholder returns. Last year, its attempt to reform its governance structure failed after facing a series of complaints from U.S. activist hedge fund Elliott Management.

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  • Global business leaders raise concerns over e-commerce policy changes in India

    Global business leaders raise concerns over e-commerce policy changes in India

    Several global business leaders have raised concerns over the evolving regulatory challenges concerning the e-commerce sector in India and said they want a stable policy regime to help this space achieve its robust growth and investment potential. According to a report, multiple business leaders attending the World Economic Forum Annual Meeting here said there are confusions in their mind in the backdrop of recent policy changes for e-commerce players having FDI in India.

    They did not want to be named, given the sensitivity of the subject and the evolving nature of the proposed rules, but said they have directly, or through their representatives, raised their concerns with the Government. They wanted to raise the issue directly with Commerce and Industry Minister Suresh Prabhu in Davos, but his plan to come here got changed at the last moment.

    At a session here at the WEF meeting, WTO Chief Roberto Azevedo also said there was a need for a global multilateral framework on e-commerce business.

    India’s FDI policy allows 100 percent foreign direct investment in marketplace model, but investors also want a stable policy and regulatory regime, a senior official of a leading online retailer said.

    An industry lobby group official said there is a fear that certain new rules proposed by the Government could lead to discrimination against investors as this policy is only for foreign players and not for domestic ones in the e-commerce sector.

    Another executive claimed it is being seen as a non-consultative approach even with investors who bring in huge foreign direct investment.

    However, Government officials rejected these allegations and said the new changes seek to safeguard competition and the interest of domestic players. The rules have been made after due consideration and consultations with concerned stakeholders, they added.

    The Commerce and Industry Ministry brought certain changes to Press Note 2 on December 26, 2018 which prohibited e-commerce companies from entering into an agreement for exclusive sale of products along with tightening norms for firms having foreign investment.

    The Government has also barred online marketplaces like Flipkart and Amazon from selling products of companies where they hold stakes and banned exclusive marketing arrangements that could influence product prices.

    The revised policy on foreign direct investment in online retail also requires these firms to offer equal services and facilities to all its vendors without discrimination. The policy would be effective from February 2019.

    In India, the policy as such does not permit FDI in inventory-based model of e-commerce.

    Companies have been seeking more time to implement the changes even as some of them have warned that these substantial modifications in the way they do business pose risks of derailing the e-commerce sector that has been a big job creator.

    Executives from another global retail major said the impact could also be felt by several connected sectors such as advertising, logistics, warehousing and manufacturing.

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  • Walmart, Amazon India seek extension of Jan 31 deadline on e-commerce compliance

    Walmart, Amazon India seek extension of Jan 31 deadline on e-commerce compliance

    There is trouble in paradise. The Government’s drastic intervention in e-commerce at the behest of vested domestic interests and the powerful traders lobby has created consternation in the bulge bracket world of e-commerce in India. With the big players having reached out to the Government to give them breathing space on the new compliance measures beyond the January 31 deadline, the Industry ministry has not responded, leading to panic attacks across the board.

    Powerful stakeholders led by Walmart and Amazon from the e-commerce eco system have sought a six-month extension since lakhs of sellers – small and medium-sized – in the market place need to be educated, IT-enabled and connected to meet the statutory audit requirements. Moreover, contracts have to be re-negotiated so that the compliance measures remain ongoing with time being of the essence.

    It is believed that the DIPP or Industry Secretary Ramesh Abhishek, who was earlier encouraging the major players to ramp up their investments in India, has not responded to their pleas and petitions.

    The situation has become precarious primarily because the clarification to press note 2 was even more confusing. On a granular level, the market place cannot have any equity in the seller.

    Hence, Amazon which has five percent equity in Shoppers Stop has to comply with the new standards. The new government directive does not allow private labels, nor does it allow big brands to have commercial tie-ups with the market place. Basically, the rules of engagement have been turned on their head.

    Bain Capital reckons that the heavy lifting e-com players have generated three lakh jobs in India. Over and above this, there are lakhs of vendors.

    Further, the eco system has multiple spin-offs like advertisements, courier companies, logistics companies, supports innumerable manufacturing operations and caters to large scale supply chains. Flipkart has 80,000 employees, 80 fulfilment centres (warehouses), nearly one lakh plus sellers and artisans of all hues across the land. Ditto for Amazon, which has similar numbers across its business spectrum.

    Walmart paid US$ 14 billion for Flipkart stock with a promise of an additional US$ 2 billion in physical structure investment. So, there is a lot riding on these heavy lifters for both know that this is the last frontier in terms of a consumption market, since India consumes 67 percent of its own US$ 2.6 trillion GDP. Interestingly, Walmart runs Flipkart as a stand-alone entity.

    For Walmart this is a priority market and it is keen that the January 31 compliance window deadline is extended. Its commitment to the Indian market can be gauged from the fact that it recently got 100 acres in Bengal for warehousing as a pivot to the northeast market. Hence the size of the commitment is seeing enlargement almost daily.

    It is on the verge of closing another 100 acre fulfilment centre in Telengana to service the southern market. Remarkably, the Indian retail market is estimated to be US$ 650 billion, of which 90 percent is the kirana stores while nearly eight per cent is made up of Indian retail players and only two percent is e-commerce. However, since the biggies in e-com are global behemoths, impediments are being placed in their path.

    At the kernel of the government notification and clarificatory statement is the targeting of e-commerce giants who are quick to retort that they helping small sellers with a channel that is tech-enabled to put their products on the marketplace.

    At the time same time, even as they try and get the government to listen to their litany of woes on immediate compliance, the process of evaluation of sellers will continue and remain ongoing so that they are effectively compliant every single day. The government’s intervention is perceived to be through a non-consultative process and the global giants want more time for compliance and enhanced level of dialogue.

    The audit requirement on the sellers by opening their books to the marketplace in such a short time is reminiscent of the haste in the launch of GST, which threw small businesses out of gear.

    Many of the sellers will now have design IT systems and the marketplace cannot be liable for this. In parallel, there is no clarification on how to conduct the private label business.

  • Jollibee to sue Chinese copycat

    Jollibee to sue Chinese copycat

    Jollibee Foods has confirmed it is taking legal action against a copycat restaurant in China. A recent Facebook post which went viral featuring the Chinese restaurant – named JoyRulBee – drew much attention among internet users in the Philippines, after a Filipino couple travelling in Guangxi spotted the the familiar mascot and documented the knockoff.

    Pictures and a video showed that both the exterior and interior of the restaurant were close copies of the Jollibee brand, while the menu was also markedly similar.

    Jollibee’s response to the post indicated the firm was already aware of the existence of the copycat restaurant and has initiated legal proceedings to protect its trademark.

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  • Dhaba restaurant opens its 10th outlet in Aerocity India

    Dhaba restaurant opens its 10th outlet in Aerocity India

    Dhaba Estd 1986 Delhi by Azure Hospitality is all set to land itself at Delhi’s posh new Aerocity. The award winning deliciousness carries forward the thirty year legacy as it stamps another one at Delhi’s most favourite leisure destinations, The Walk at Aerocity. At Dhaba Estd 1986 Delhi, one not only experiences fabulous Dhaba food but from the moment the patrons enter till the time of their exit, the ambience recreates unparalleled highway eatery nostalgia. Given a shot of new age fun and kitschy interiors with the legendary classics on the menu along with some nouveau beauties – Dhaba is set to recreate the same magic again – but with more full-on Punjabi flair.

    “Keeping the drama to a minimum, we plan another Dhaba, where food is the king yet again. We are thrilled to share that Delhi’s prime food, beverage and leisure destination Worldmark at Aerocity is about to get struck with Dhaba’s dildaar Punjabi love that has been warmly accepted in Delhi NCR, Pune, Chennai, Hyderabad and Bangalore. Aerocity restaurant marks the tenth outlet for us after five successful years across the country. The response has always been heart-warming and we look forward to the same yet again,” say Rahul Khanna and Kabir Suri, Directors, Azure Hospitality.

    Dhaba comes in a new avatar with signature kitschy quirk, vintage collages and retro Indian décor of the 80s and 90s, and use of popular Indian weaving techniques in ikat fabrics. Designed by Atul Anand, this 52-seater outlet showcases environmental friendly décor using recycled elements and community tables for group seating. The ambience effortlessly infuses the excitement of a highway meal; and in fact, takes it up a fair few notches! The creative chaos of colours, quirky desi quotes, revival of vintage black and white Bollywood posters and the signature truck art adds to the overall dining experience. The mood of the restaurant is further enhanced by the mock façade of a building, which is designed like a small town.

    With a crafted legacy of over 30 years, the real highway magic always takes place in the kitchen. With a legendary classic Indian menu divided into three drooling parts – the Tandoor, Tawa and Patila, food at Dhaba will be a true showstopper amongst corporate and tourists visiting the location. Chef Ravi Saxena expertly helms the Dhaba kitchen chronicle, reconditioning its fabled signature recipes bringing forth the best of highway cuisine and North Indian cuisine concepts. With signature recipes since 1986 and the new experimental highway specials, there are a whole lot of new and signature dishes for everyone to try.

    The food menu is inspired by travels down the highways of India and the eccentric by-lanes of old towns famous for unique age-old recipes. In addition to the age –old classics, the new menu experiments with newer flavours showcasing Highway specials, not only from Punjab but from all over the country. The essence and soul of Dhaba is Punjabi, however a whole range of regional dishes are now available for indulgence.

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