Retail News CRM

Tag: Living

  • Reliance to open Pottery Barn in India

    Reliance to open Pottery Barn in India

    Williams-Sonoma and Reliance Brands plan to launch Pottery Barn and West Elm in India through a franchise agreement. The opening of the brands’ first stores will be in Mumbai in early 2020, along with the launch of e-commerce websites.

    President and CEO of Williams-Sonoma Laura Alber said the partnership with Reliance marks part of the company’s continued global expansion. “We are looking forward to opening our first stores in Mumbai and introducing our distinctive brands, excellent customer service, and exceptional products to customers in India.”

    Executive VP, Global of Williams–Sonoma Ronald Young said the company currently operates its own and franchised stores across the world with company-owned stores in the US, Canada, Australia and the UK.

    “Our franchise network includes countries throughout the Middle East, South Korea, the Philippines and Mexico. Adding Reliance to our franchisee network is a significant step in our continuing global expansion.”

    President & CEO of Reliance Brands Darshan Mehta said the company is confident of the  success of Pottery Barn and West Elm in India, believing the brands’ heritage and designs will resonate with Indian consumers.

    Lees ook:

    Lees ook:

  • Ikea to open first Japanese Tokyo store in 2020

    Ikea to open first Japanese Tokyo store in 2020

    Ikea Japan is preparing to open its first central Tokyo location. The 2500sqm store is planned for the fashionable Harajuku district, a central focus point for young local shoppers and tourists.

    Threatened by the rise of raw materials costs, Ikea is expected to struggle to maintain its low price points against strong online competitors such as Amazon. The brand’s parent recently registered a significant drop in annual profits as a consequence of the price increases in wood and metals.

    The new store is scheduled to open in the spring of 2020.

    Lees ook:

  • LG U+ IPTVs get Netflix in Korea

    LG U+ IPTVs get Netflix in Korea

    Netflix content will be available on LG U+ internet protocol TVs (IPTV) today. Under an exclusive IPTV deal inked with LG U+, Netflix content, including Netflix Originals, will be aired through LG’s platform, the carrier said Wednesday.

    LG subscribers won’t have to replace their existing set-top boxes as they will be automatically upgraded, though services will be first offered to the 1.07 million users of LG’s latest set-top box, dubbed UHD2, and gradually rolled out to other set-top boxes.

    Considering Netflix offers over 22,000 movies and television shows, including its big-name original content like “House of Cards,” “Stranger Things” and “Orange Is the New Black,” this is a good chance for the smallest carrier in Korea to steal some subscribers.

    By next month, the carrier will also reform the user interface of its IPTV so users have easier access to Netflix content as well as its own kids’ content platform, dubbed “Kid’s World,” that is gaining popularity among customers in their 30s and 40s with children. LG is banking on both services for the further growth of its IPTV business, according to Song Gu-young, senior vice president and head of home and media business at LG U+.

    The revamped interface could look similar to the Netflix app. When a user selects a video, an image related to the video will fill up the whole screen and a preview will run automatically, which is similar to how video previews are played on the Netflix app.

    The partnership between LG U+ and Netflix is no surprise as the market has long been expecting the announcement, but what’s still not clear is whether the carrier will offer a phone plan centered on Netflix. Without a useful plan, existing users of Netflix might not feel the urge to migrate to LG just for the IPTV service because it would only mean they get better access to Netflix content on the LG platform, but for the same monthly fee.

    LG is reportedly planning to roll out phone plans with a Netflix discount, according to an industry source, but it might take some time as new plans need government approval.

    For the time being, LG U+ is giving out free three-month Netflix trials to new subscribers of its IPTV plans worth at least 15,400 won ($13.50) per month until the end of this year.

    Korea’s mobile carriers have shifted their focus to the IPTV business as sales from traditional mobile phone subscriptions faltered after the government pressured them to make monthly phone bills cheaper last year.

    Lees ook:

  • Korea’s gas prices fall quickly thanks to fuel tax cuts

    Korea’s gas prices fall quickly thanks to fuel tax cuts

    The government fuel tax cut, which was implemented to ease the burden on rising crude oil prices, has turned out to be more effective than initially expected. According to the Ministry of Trade, Industry and Energy on Sunday, the average price of gasoline at gas stations nationwide was 1,575.2 won ($1.40) per liter during the second week of November. This is an 85.2 won, or 5 percent, drop, from the 1,660.4 won average just a week earlier.

    Diesel prices have also dropped to an average 1,419.2 won per liter, down 56.2 won, or 3.8 percent, from the first week of this month, when it was an average 1,475.4 won for the same amount.

    On Saturday, the ministry said the average price of gasoline had further fallen to 1,556.8 won per liter – 133.5 won less than the 1,690.3 won it sold for on Nov. 5, the night before the government’s fuel tax cut went into effect.

    On average, the government cut 15 percent off of all fuel taxes including gasoline and diesel in the hopes of easing the burden created by rising international crude prices. It was the first fuel tax cut adopted in a decade.

    “As the situation [of low-income households and small and medium-sized enterprises] becomes more difficult with rising international crude prices, we have decided to aim for a psychological effect that will help the economy by increasing disposable incomes,” Ko Hyoung-kwon, deputy finance minister said in late October.

    Among gas stations, the government-supported Altteul Gas Station saw the biggest drop in prices – its gasoline costs 135.5 won less than it did on Nov. 5.

    Other major brands including SK, GS, S-Oil and Hyundai Oilbank have cut gasoline prices by 133.3 won.

    By region, Jeju lowered its gasoline prices the most. The island has seen a 169.4 won drop in average price compared to Nov. 5. Daejeon followed, as prices have fallen an average of 149.6 won, while Incheon came in third after seeing a 142 won drop.

    Seoul gas stations on average lowered their prices by 134.9 won while Gyeonggi gas prices fell by 137.2 won per liter.

    Seoul and Gyeonggi account for 39 percent of all fuel sold in the country.

    However, as of Saturday, 173 gas stations around the country – 1.5 percent of the nation’s gas stations – have not taken part in lowering fuel prices. The ministry said that these gas stations failed to deplete all of the gas that they had stockpiled before the Nov. 6 fuel tax cut was implemented.

    The fuel tax cut will be applied for six months.

  • Bamboo Airways plans a year-end take off

    Bamboo Airways plans a year-end take off

    Bamboo Airways, Vietnam’s newest airline, is expected to make its maiden flight on Dec. 29, its founder said Friday. The first routes of the country’s fifth carrier would connect Hanoi and HCMC, and from Hanoi and HCMC to central Quy Nhon City, said Trinh Van Quyet, chairman of Vietnamese private firm FLC, the airline’s founder.

    Dang Tat Thang, Bamboo Airways general director, said the carrier has basically got itself ready for the first flight, and aircraft that it is hiring is due to arrive in Vietnam on Dec. 12.

    “It is possible that flight tickets will be on sale a month before the initial takeoff,” he said.

    Bamboo Airways finally got its long-awaited aviation license early this week.

    It is allowed to operate 10 aircraft on both domestic and international routes and to carry passengers and cargo.

    The airline plans to fly on 100 routes, connecting Vietnam’s major cities with popular domestic and international tourist destinations.

    After licensing, it needs to obtain an aircraft operator certificate and obtain permission for parking and selling tickets, which are expected to take 30-45 days from the date of license issuance.

    Bamboo Airways was founded in mid-2017 with a charter capital of VND700 billion ($30 million), which it increased to VND1.3 trillion ($55.68 million) recently.

    The airline has signed deals to buy 24 Airbus A320neo and 20 Boeing B787-9 Dreamliner aircraft worth a total of about $8.6 billion.

    The other four carriers in Vietnam currently are Vietnam Airlines, Vietjet Air, Jetstar Pacific and VASCO.

    Lees ook:

  • Fung Retailing boosts stake in reborn Toys R Us Asia

    Fung Retailing boosts stake in reborn Toys R Us Asia

    Fung Retailing has finally secured a deal to continue to operate the profitable Toys R Us Asia business. The privately owned Hong Kong business, which is separate to the listed Li & Fung, will boost its stake in Toys R Us Asia from 15 per cent to about 21 per cent, making it the retailer’s largest shareholder.

    The balance will be owned by Taj Noteholders representing a mixture of investment funds and financial institutions who have a stake in the collapsed parent company Toys R Us US.

    Toys R Us Asia has never been affected by the liquidation of the US business – it has been trading profitably under Fung Retailing direction and has even been expanding its store network while shops bearing the iconic banner have been closing in post part of the world. Last week it relaunched its store in Brunei.

    The new partnership between Fung Retailing and Taj Noteholders values the company at US$900 million.

    “This transaction is a significant step in separating the valuable and growing Toys “R” Us Asia operation from the rest of the business,” said an unidentified spokesman for Taj Noteholders in a statement.

    “The company’s growth prospects in Greater China, Japan and Southeast Asia are bright and we are excited about investing in and owning the company in partnership with Fung Retailing”.

    Pieter Schats, executive director of Fung Retailing, said that since introducing Toys R Us to Hong Kong in 1986, Fung Retailing has played an integral role in the successful growth and development of the business across Asia.

    “As a sign of the confidence we have in the management team and future success of Toys R Us in the region, we are pleased to increase our shareholding in the company, reflecting our commitment to support Toys R Us Asia in reaching new heights.”

    The company will continue to be led by its current president & CEO Andre Javes and his management team.

    Technology boost

    The new owners of Toys R Us Asia plan a “significant investment in technology” to boost the company’s infrastructure.

    “We are committed to remaining the leading specialty retailer of toy, education and baby products in Asia by driving innovation and quality through our products and services,” said Javes. “The conclusion of the sale process brings clarity to the company’s ownership and we look forward to strengthening and leveraging our partnerships with our vendors and commercial stakeholders. Our shareholders’ investment is a huge vote of confidence in our vision, our team and our winning model.”

    Toys R Us Asia operates more than 450 stores in Japan, Greater China and Southeast Asia, including Brunei, China, Hong Kong, Malaysia, Singapore, Taiwan and Thailand. It also licenses more than 85 stores in the Philippines and Macau.

  • Foreign names dominate Vietnam’s high-end home interiors market

    Foreign names dominate Vietnam’s high-end home interiors market

    Foreign home interior brands and designers are present in force and dominating the increasingly affluent Vietnamese market. Brands like Cassina, Badari Lighting, Cantori, Diemme Cucine, Formitalia, and Versace Home have entered the high-end interior market in recent years.

    According to the Vietnam Chamber of Commerce and Industry (VCCI), some 80 percent of luxury woodwork and interior decoration items is imported from Europe, with local players making up the small remaining portion. The market is valued at $2.5 billion.

    Ly Qui Trung, general director of AKA Furniture Group, said the expansion of the “middle and affluent class” has boosted demand for luxury interior items.

    “It is no wonder that many high-end international interior brands have started rushing into the Vietnamese market.”

    The middle and affluent class, categorized as those earning $714 a month or more, would double to 33 million, about a third of the population, between 2014 and 2020, the Nikkei Asian Review reported recently citing a study by the Boston Consulting Group.

    Market research firm Nielsen estimates the number of middle and affluent class Vietnamese to reach 44 million by 2020 and 95 million by 2030.

    Paolo Lemma, Italian trade commissioner to Vietnam, believes there will be higher demand for interior design items in future due to the booming real estate market.

    According to the HCMC Handicraft and Wood Industry Association (HAWA), woodwork furniture consumption last year was estimated at over $3.2 billion and that number is expected to reach $4 billion this year.

    Huynh Van Hanh, vice chairman of HAWA, said the industry’s average growth rate has been 8 percent in the last seven years, and his association encouraged domestic manufactures to enter this growing market.

    Trung said his company would seek to tap the growing high-end segment in future, and expected fierce competition between domestic and foreign brands.

    Last year Vietnam exported $8 billion worth of wood and forestry products and has a target of $9 billion this year.

    Lees ook:

    Lees ook:

    Lees ook:

  • Dubai’s Danube Home makes debut in India

    Dubai’s Danube Home makes debut in India

    Danube Home, part of Dubai-based diversified business conglomerate Danube Group, has forayed into India by opening its first store in Hyderabad in October 2018. The brand has high hopes for the Indian market. In an exclusive interview with IMAGES Retail, Shubhojit Mahalanobis, General Manager, Danube Home says, “We see India as a country with huge potential, offering an incredible opportunity for growth. The real estate sector is at its peak in India with numerous properties, towers, communities and complexes coming up for both residential and commercial purposes. This directly contributes to a rise in demand for home furnishing products and solutions. Moreover, demonetization and GST has made operating in India much easier for international brands.”

    “Reports say India is expected to see a faster expansion of urban population consisting of aspirational millennials and middle class families with spending power that will trigger the growth in demand for affordable home furnishing products and solutions. For a brand like Danube Home that offers home furnishing products and solutions, this is a very promising time to enter the country,” he adds.

    Danube Home, which will be sourcing 30 percent from India to complement the government’s initiatives, has done an extensive study on Indian consumers, their buying behaviours, color and lifestyle patterns. Based on the research, the store that spans across 60,000 sq. ft offers more than 20,000 products under one roof targeting the middle and upper-middle segment of pyramid.

    The USP

    The Danube Home store in Hyderabad has all the key features and benefits that global consumers are experiencing across the Middle East. However, its India product portfolio will be a lot different from the Middle Eastern market.

    “We have handpicked collections to cater to the well-travelled modern Indian consumer with products from various parts of the world such as US, Netherlands, Spain, Italy, Russia, Malaysia, Turkey, Egypt, UK and China, to name a few, giving customers a great opportunity to shop the best quality products at value for money price,” states Mahalanobis.

    “In addition to this, customers will enjoy free interior designing services and seamless payment solutions with consumer financing options,” he states. These key features ensures 90 percent of repeat customers.

    Danube Home, which starts as an online player and plans to go Omnichannel eventually as traction picks up, aims to offer complete home solutions, for instance other brands who sell sofa or beds do not sell wall paper or customized curtains, but Danube offers end-to-end solutions that include everything from outdoor furniture to sanitary ware.

    “We focus a lot on our customer service standards and ensure both pre and post sales is a memorable experience which is why we have been awarded the No. 1 furniture retailer by the Dubai Government. We have a dedicated post sales team that makes direct calls to ensure everything goes smoothly post sales. This is an important step of the whole brand experience,” explains Mahalanobis.

    Their customers also experience Augmented Reality, Virtual Reality, Online Seamless Shopping and many new technologies that Danube offers in its markets abroad. Customers will also be able to walk through their dream home in Virtual Reality.

    “Danube Home offers global quality products at local price. We source our products from across the world and design our collections looking at customers behaviour and needs. Gradually, the Indian consumers shall experience various innovative and engaging little touches which we hope will be unique to us. That is what the brand is all about,” he adds.

    Marketing Plans

    As far as marketing plans of the brand is concerned, Danube Home has mixed conventional and unconventional mediums to connect with the brand’s ethnicity. The brand has taken the ATL, BTL, social and guerrilla marketing routes.

    “We have added fun, interactive elements and image build up activities. We are targeting middle class and upper middle class millennials, double income no kids section and nuclear families. Our key focus remains with builders, architects and the designers’ segment, who shall be amazed to see our collection and price offerings for their projects,” says Mahalanobis.

    The brand will be using all the mediums – print, TV and online – to advertise itself in India to get the maximum ROI.
     
    Human Resources

    Besides, the entry of the brand in the Indian market will not only create 1,500 direct jobs, but also support local industries that will benefit from the supply chain as it will deepen, sourcing products from every nook and corner of India.

    “This will also help us to create a greater demand for Indian designed home décor and home furnishing products and export them to other markets – such as the GCC – where we have a strong presence,” states Mahalanobis.

    Each store of the brand will employ around 85-100 direct employees and 50 indirect employees, logistics department will have 50-75 employees during the initial days and gradually with the increase in strength of stores, the count will also increase.

    “We hire the best from the industry, train them rigorously sharpen their skills aggressively and keep them motivated for a long period of time to deliver great results. The India team will also experience our team bonding and training methods, and hopefully, they will also deliver miraculous results,” he says.

    The brand believes in flexible work culture driven only by performance based rewarding, empowering the team and giving them enough freedom to bring success.

    Apart from this, Danube Home has a plethora of employee engagement activities like multiple outbound training programs at various levels, product launches at off-sites involving the power sellers, runs reward programs and engage in healthy competition atmosphere within each peer group.

    Future Plans
     
    Danube Home plans to set up 10 large format showrooms, a large logistics hub, transport network and associated facilities in the next 5 years.

    “We have identified potential locations across the North and South Indian States. Once the properties are signed, the plan would be disclosed,” says Mahalanobis.

    The average store size in India will be between 40,000 – 50,000 sq. ft depending upon the space and layout of the store. Depending upon the size of each store, average investment per store will be Rs 40 crore. The brand is already in talks with few big mall developers and hopes to partner with them for aggressive pan India expansion.

    “We target to grow 15 percent like-for-like each year for the initial 5 years. We don’t want to be bullish about the growth unless we settle down and understand the market deeply,” he concludes.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • Muji reopen largest store outside Asia

    Muji reopen largest store outside Asia

    Muji Canada is reopening its original Toronto location next week as its first flagship store in the country’s east. The Muji Atrium opened four years ago as the company’s first location in Canada. While the previous store occupied 5658sqft of retail space, the new flagship store will reach 19,110sqft spread over two floors, becoming the largest Muji store outside of Asia.

    “During the four years since we expanded to Canada, we opened seven additional stores and gradually increased our range of products and services,” said Muji Canada president Toru Akita.

    “By allowing us to reach out to more people and to further convey our philosophy, the Atrium flagship store will open a new chapter for Muji in Canada.

    “Through interactive events, innovative projects, and new partnerships, we wish to connect and evolve together with local communities and contribute to the creation of a better quality of life.”

    The location will carry Muji Canada’s full range of merchandise of more than 4000 items – including household goods, apparel, and food – and offer many products and services only available in select Muji flagship stores around the world, such as a coffee counter serving ethically sourced coffee and an aroma bar that will allow customers to create customised fragrances from more than 40 essential oils.

    Muji Atrium will feature two new customisation services for customers to personalise their products for the first time outside of Japan, including a digital fabric printing service and laser engraving service

    Muji Atrium will be the only location in Eastern Canada to carry books, made-to-order curtains and rugs, the Muji Labo collection, maternity wear, a brand new activewear collection and more.

    Lees ook:

  • Toys R Us reopened in Brunei

    Toys R Us reopened in Brunei

    Toys R Us Brunei has relaunched its Mabohai Shopping Complex store. The reopening, after extensive redesign and renovation works, attracted long queues of shoppers hoping to pick up special deals promoting the event. Along with the reopening, the store has expanded its product range by 70 per cent.

    Toys R Us (Singapore) group country director Raymond Burt reassured customers the brand is “here to stay”.

    “We have been in Brunei for around six years and we have re-signed our lease here at Mabohai Shopping Complex. We have also reinvested in the store and spent quite a bit of money to bring the latest design of the market to the store. We have renovated the store with a layout that is segmented by age for children, to make it easier for customers to shop.

    “We have updated the design and signage as well as added elements of interactive play that we didn’t have before.”

    Toys R Us operates 67 stores in Asia and has 18 new stores planned for launch by the end of the year, the majority in China. It is part-owned by Fung Retailing and not affected – as yet – by the collapse of the company in the US.

  • Courts Asia shows negative number after Malaysian woes

    Courts Asia shows negative number after Malaysian woes

    Singaporean electronics and furniture retailer Courts Asia has posted a net loss of SG$3.1 million (US$2.25 million) in its second quarter.

    The result is a reversal of a net profit of $1.5 million (US$1.09 million) during the same period last year.

    Courts Asia said in a statement that Malaysia revenue came under pressure after the introduction of the Consumer Protection (Credit Sale) Regulations 2017 which saw consumer interest rates capped at 15 per cent per annum from January. However, ongoing transformation work with a persistent focus on cost and productivity efficiencies in Malaysia reaped results, with Malaysia’s PBT crossing into positive terrain after two consecutive quarters of loss.”

    Group CEO Terence Donald O’Connor said: “We are encouraged by the early signs of stabilisation in the Malaysia business. We have closed 10 underperforming stores since the start of our financial year in April and continue to review our store network performance. Impairment loss on trade receivables charged to the profit and loss statement has also been on a declining trend from the fourth quarter ended March.”

    The Singapore firm recorded $3.4 million profit before tax after starting out on its store transformation process, up from $3 million last year. It renovated its Ang Mo Kio outlet last month.

    Lees ook:

    Lees ook:

    Lees ook:

  • LG Chem signs deal to distribute cancer drug

    LG Chem signs deal to distribute cancer drug

    LG Chem has partnered with U.S. bio company Cue Biopharma to develop immunotherapy drugs to treat cancer, the local company announced Monday. Immunotherapy drugs help patients fight diseases like cancer by enhancing their immune system. It is a relatively unusual form of cancer therapy that differs from the conventional approach of using medication to directly fight the cancer cells inside the human body.

    Based in Boston, Cue Biopharma is a Nasdaq-listed company that specializes in developing biologics for immunotherapy. The companies will co-develop and distribute three immunotherapy drugs which were previously developed by Cue Biopharma: its lead product CUE-101, currently in the preclinical stage, and two other cancer antigens that are at an earlier stage of development.

    Cue Biopharma’s core technology is the Immuno-STAT platform that inserts information about a specific cancer cell into a T cell, a white blood cell that will then find and attack the disease. Before the platform existed, T cells had to be pulled out of the human body to have the information injected into them, but Cue Biopharma’s technology allows the process to happen internally.

    Under the agreement, LG Chem will obtain exclusive distribution rights for the three treatments in Asia once they are fully developed. Cue Biopharma will take charge of distribution in other regions.

    LG will offer a maximum of $400 million to the U.S. bio company including milestone payments given at each stage of clinical testing in the development process. Once the treatments are commercialized, Cue Biopharma will additionally receive license fees proportional to sales in the Asia region while LG, in return, will receive royalties from the Asia sales.

    This is the first time in its three decades of history in the bio pharmaceuticals industry that LG Chem has partnered with another company to work on a new drug.

    “We are very pleased to enter this strategic collaboration with Cue Biopharma; it is more than a licensing deal, it is a partnership with a shared vision and great strategic fit,” said Dr. Son Jee-woong, president of LG Chem Life Sciences.

    For Cue Biopharma, the advantage of working with LG is its experience in developing and manufacturing bio pharmaceuticals in the past as well as its business know-how in the Asia region.

    Under the partnership, LG will also conduct development in mass production and quality control methods for the immunotherapy drugs.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • LG Chem picks first CEO from outside group

    LG Chem picks first CEO from outside group

    LG Chem said Friday it nominated Shin Hak-cheol, vice chair and executive vice president of 3M, as its new head. It is the first time the chemical company hired a chief executive from outside the company since its foundation in 1947. Current LG Chem CEO Park Jin-su climbed the ladder during his 42-year career at the company.

    LG Chem said it has been looking for a person who can systemize global business operations as overseas production and marketing of lithium-ion batteries has increased along with demand for electric cars.

    “Shin has gained global perspective and experience in operating a global materials and components business,” LG Chem said in statement. “He is the right person capable of responding to a rapidly changing business environment and bringing change in corporate culture and structure.”

    Shin started at 3M Korea in 1984 as a technical supervisor and then joined 3M Philippines in 1995 as its managing director. In 2011, he was named executive vice president of 3M International Operations, becoming the first Korean to lead 3M’s overseas businesses, LG Chem said.

    His most recent role at 3M was leading global teams, including the research and development, strategy and business development and business transformation teams, as vice chair and executive vice president at the 3M headquarters in Saint Paul, Minnesota.

    Shin will begin commute to work and be officially inaugurated as the chief executive during the shareholders meeting in March.

    Park will retire as Shin is inaugurated, but the exact date has not been announced yet. The company grew into a 28 trillion won ($24.8 billion) company under Park. In 2011, it posted around 22.6 trillion won in sales.

    Industry analysts say this may be the beginning of a major transformation at LG under the leadership of 40-year-old Chairman Koo Kwang-mo.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • Hyundai, Kia invest big in Grab

    Hyundai, Kia invest big in Grab

    Hyundai Motor and Kia Motors will jointly invest $250 million into the world’s third-largest ride-hailing operator Grab, eyeing shared mobility services as a way to overcome faltering car sales, the companies said Wednesday.  Hyundai has already injected $25 million into Grab in January, so total investment on the Singapore-based company adds up to $275 million. This is the largest investment made in a single company by the two sister automakers under Hyundai Motor Group, the group said.

    Grab, which has operations in 235 cities in eight countries in Southeast Asia, is the largest ride-hailing service provider in the region, though it is smaller than China’s Didi Chuxing and U.S. company Uber, which have larger operations elsewhere.

    The big bet in Grab comes as the largest auto group in Korea seeks fresh business models for growth. The group said it will make the two carmakers core players in an era where shared mobility is becoming ever more important.

    The three companies will start their collaboration by deploying Hyundai and Kia-made electric cars in Grab’s Singapore business. Hyundai will first supply 200 electric vehicles to the ride-hailing company by early next year. Kia is mulling whether to follow suit soon after.

    The vehicles will be rented out to Grab drivers. This way, Hyundai can introduce its electric cars to Singapore and other Southeast Asian markets once the pilot test in Singapore proves successful.

    “Targeting emerging markets based on strong partnerships with local companies like Grab could be a sustainable way of making profits,” Hyundai said in statement.

    If more people use ride-sharing services and other apps rather than driving their own cars, these large mobility service companies could become the major customers for carmakers in the future, and automakers are already aware of this.

    The three companies will also work on developing car maintenance and repair services as well as car financing services specialized for Grab drivers using the electric cars.

    Going further, they plan to launch electric car models customized for ride-hailing services.

    “Grab is the best partner there is to expand [our] electric car supplies in the Southeast Asian market,” said Chi Young-cho, chief innovation officer at Hyundai Motor Group.

    The latest investment is in line with Hyundai’s aggressive preparation to enter the shared mobility business. It is a relatively late mover into the future mobility business compared to competitors like Germany’s Daimler, which launched its own car-sharing brand Car2Go in 2008.

    The automaker landed a partnership with Sydney-based car sharing start-up Car Next Door with the aim of launching a new app-based mobility service in Australia by 2020. It also holds partnerships with India-based car-sharing company Revv, U.S. mobility service company Migo as well as local last-mile delivery service provider Mesh Korea. In Netherlands, it started its own car-sharing business with 100 Ioniq EVs last month.

    Lees ook:

  • Chinese white goods company Midea announces Rs 1,350 crore new plant in India

    Chinese white goods company Midea announces Rs 1,350 crore new plant in India

    Chinese consumer durables firm Midea aims to manufacture its products locally in the country by next year and is setting up a new facility in Pune at an investment of Rs 1,350 crore. “India is a strategic growth market and we expect our investments in this market to yield good growth. Considering the potential of the market we have committed over Rs 1,350 crore investment for a new facility,” Krishan Sachdev, Managing Director of Carrier Midea India and also Midea Group India region, told PTI.

    “We have a manufacturing facility at Bawal in Haryana and we are strengthening our base here with a second plant in Pune. By next year, 100 percent of our products shall be manufactured locally,” he further told PTI.

    According to a report: He further said that the company is evaluating prospects of exports from India.

    The new facility near Pune, with a technology park, will have three manufacturing units for home appliances, HVAC products and compressors and will also include a manufacturing facility for Carrier Midea India, a 60:40 joint venture between Midea and Carrier.

    The complex is likely to begin commercial operations at the beginning of 2020 and the technology park is expected to generate employment opportunities for over 2,000 people, both directly and indirectly.

    Over a period of five years, the facility will produce refrigerators, room ACs, washing machines, water purifiers, water heaters, commercial ACs and compressors.

    The company, which has been growing at a CAGR of 25 per cent over the last five years, said plans for manufacturing other home appliances categories in a phased manner have been completed.

    Sachdev further said the rupee depreciation has had an impact on their business.

    “Even though we manufacture 70-80 per cent locally, production cost has gone up because some of the components are imported,” he said.

    The company is expecting a good festive season this year with 25 per cent growth and by next year it plans to have IoT enabled product solutions for this market.

    South and East are the leading markets for the company, contributing significantly to the business, while non-metros contribute 30-40 per cent of the overall revenue.

    Midea India plans to double its footprint across the country.

    “For the RAC, which is the refrigeration and air conditioning category, and which contributes 80 per cent of revenues), we are targeting to be in around 5,000 retail outlets before next summer apart from 800 plus sales and service dealers.

    We are constantly looking to expand our reach to consumers. We are already present in more than 400 cities and towns of India,” he further said.

    Lees ook: