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Tag: Malaysia

  • Volkswagen sets up shop in Malaysia to handle direct sales here

    Volkswagen sets up shop in Malaysia to handle direct sales here

    Volkswagen Passenger Cars Malaysia (VPCM) Sdn Bhd will be the official distributor of Volkswagen cars in the domestic market.

    VPCM is managed by European automotive retail specialist, Porsche Holding Salzburg, the car distributor said in a statement.

    The announcement comes after a series of consolidation exercises within Volkswagen Malaysia over the past six months.

    Alin Tapalaga, one of two managing directors to lead VCPM, said the company would be increasing the Completely Knocked-Down model line-up, and continue to import Completely Built-Up models into the country.

    Moving forward, Volkswagen Group Malaysia will concentrate its business interest in Malaysia on the Audi brand, as well as its vehicle assembly operation in Pekan, Pahang.

    Meanwhile, VPCM is introducing a five-year manufacturer warranty for all Volkswagen cars purchased from today, while launching the new Jetta and all-new Passat within the next few months.

    The Volkswagen franchise in Malaysia was previously handled by DRB-Hicom Bhd.

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  • Pizza Hut Malaysia parent to relist

    Pizza Hut Malaysia parent to relist

    QSR Brands, parent of Pizza Hut Malaysia, plans to relist, raising more than US$400 million.

    The company is Malaysia’s largest fast food operator with more than 450 Pizza Hut restaurants in Singapore and Malaysia. It has the sole KFC franchise rights for Malaysia, Singapore, Cambodia, and Brunei.

    The Wall Street Journal reports the company will prepare to accept bids this month (September), but the exact size of the offer has yet to be finalised. Majority shareholder, state government-owned Johor Corp, with a 51 per cent slice of the business, may hold onto its investment for the time being.

    ASR Brands was taken private for $1.3 billion by a consortium led by private equity firm CVC Capital Partners in 2012. The other significant investor is Malaysia’s Employees Provident Fund.

    The most recent major Malaysian IPO in the consumer sector was 7-Eleven Malaysia Holdings, which raised $225 million in 2014.

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  • Report predicts $25b in eCommerce revenues

    Report predicts $25b in eCommerce revenues

    Southeast Asia eCommerce revenues are projected to exceed US$25 billion by 2020, according to new research by growth partnership company Frost & Sullivan.

    Despite acquisitions, market exits and many online retailers struggling to achieve profitability, the market earned $11 billion last year, says the report, from its Telecommunications and Digital Services program, Analysis of the Southeast Asian E-commerce Market. The study examines market trends and opportunities in six key Southeast Asian markets – Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

    Key findings include continuing rapid growth as the industry evolves.

    Total revenues from business-to-consumer (B2C) eCommerce in the six markets will increase at a compound annual growth rate of 17.7 per cent.

    Malaysia and Thailand were the largest eCommerce markets in the region last year, generating revenues of $2.3 billion and $2.1 billion respectively. But by 2020, both these markets are expected to be eclipsed by such emerging economies as Indonesia and Vietnam.

    “Despite being relatively young, the eCommerce market in Southeast Asia is developing quickly, thanks to an astounding rate of digital adoption,” says Frost & Sullivan Asia-Pacific lead consultant for eCommerce and digital transformation, Cris Duy Tran.

    “However, companies pursuing an Amazon-style B2C mass-market business model are struggling to turn a profit, and there have been several mergers and acquisitions and market exits,” he says.

    “With fewer players in the market, eCommerce players are beginning to compete beyond price points and logistics, and are moving into new areas such as Online-to-Offline (O2O) eCommerce and loyalty programs.”

    Although the mass-marketing approach has not worked so far in Southeast Asia, he says there are many exciting opportunities in specialized eCommerce and peer-to-peer (P2P) eCommerce. Services such as Carousell, Shopee and Tokopedia are aggressively pursuing a “mobile first” strategy, and Frost & Sullivan expects to see more sector-specific services in areas such as travel, food delivery and luxury goods.

    Challenges

    While the opportunities for growth are immense, says the report, the eCommerce market in Southeast Asia is not without challenges.

    Several key factors that inhibit growth have been identified, including low credit-card ownership – less than 7 per cent of the population in all Southeast Asian markets except for Malaysia and Singapore. In some countries, more than half of the population does not have a bank account, making payment the biggest challenge for eCommerce companies.

    Logistics is another issue hampering eCommerce growth, especially in areas with complex geographies such as Indonesia and the Philippines. However, recent investments by regional logistics players such as aCommerce and SingPost have strengthened eCommerce logistics infrastructure in these markets.

    China’s rapid expansion in eCommerce is providing further impetus for online retail growth in Southeast Asia, says the report.

    “The eCommerce revenue in China represented 12.1 per cent of all retail sales last year, surpassing the US, Europe and Japan,” says Tran. “Given the massive adoption of eCommerce in China, Southeast Asia is set to follow a similar upward trajectory, even though eCommerce now represents less than 2.5 per cent of all retail sales.”

    With more mergers and acquisitions likely during the forecast period, more exciting market developments can be expected in the near future, says Tran.

  • RSH launching Old Navy in Malaysia with KL store

    RSH launching Old Navy in Malaysia with KL store

    With distributor RSH, fashion label Old Navy will open its first store in Malaysia at the end of this month.

    RSH regional marketing and communications manager Roy Lan says the brand will launch a “robust” integrated campaign to raise awareness among consumers of the arrival of Old Navy in Malaysia.

    Its store will be in the 1 Utama Shopping Center in Kuala Lumpur.

    Launched in 1994, Old Navy offers fashion essentials for families. It became the first retailer in the US to reach $1 billion in annual sales in less than four years, and is part of the Gap portfolio of brands, which also includes Athleta, Banana Republic and Intermix.

    With an 800 sqm layout, the new store will offer apparel and accessories collections for men, women, children and babies.

    Its launch in Malaysia follows its entry into Indonesia this year.

    “In the next five years, if everything goes according to plan, we should have 10 stores in Indonesia and five stores in Malaysia,” says Lan.

    Malaysia is the seventh franchise market expansion for Old Navy. In launched its first franchised stores in the Philippines two years ago, and has since opened in four Middle East countries. Its move into Southeast Asia builds on the success Gap and Banana Republic have experienced since entering the market in 2007.

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  • Asian online shoppers habits uncovered

    Asian online shoppers habits uncovered

    Asian online shoppers research, locate, engage with and purchase products and services in entirely different ways in different markets, according to a new report.

    For example, almost all consumers in Indonesia knowingly provide brands with wrong details, including name (93 per cent), phone number (94 per cent), and email address (95 per cent) when researching or shopping online

    And the biggest driver of online-to-offline (O2O) conversions is with email in Singapore; SMS in Indonesia; chat apps in China; social media in Malaysia and Thailand and video ads in Hong Kong.

    And 27 per cent of consumers in China and 10 per cent of consumers in Singapore unknowingly input wrong payment details, breaking the region’s eCommerce’s momentum.

    Those are among many takes from The Digital Consumer View 2016 (Asia) report, released by global information services specialist Experian today, containing research from International Data Corporation (IDC), aimed at helping businesses better understand digital consumers in Asia.

    The report reveals how consumer behaviour varies across the key Asian markets of Singapore, Malaysia, Indonesia, Thailand, Hong Kong, and China, based on surveys with over 1200 digital consumers.

    Differences exist across channels (SMS, app notifications, email, social media, chat apps), devices (smartphone, feature phone, Wi-Fi/cellular tablet, wearable) and content (ads in email, ads in mobile apps, ads in social media, video ads on websites, and search ads). The findings highlight the complexity of reaching digital consumers in Asia across many channels, but also highlight how crucial that is, says Jeff Price, MD of Southeast Asia at Experian.

    “While the region is fast-growing, consumer behaviour in each market has unique disparities. Businesses today cannot succeed without intelligent insights based on consumer data,” he advises.

    “Asia is in the midst of a great digital revolution, with an explosion of smart devices, social media interactions and eCommerce transactions. While this evolution has greatly enabled and empowered both sides, it has also challenged businesses to be more effective and targeted in the way they communicate and market to this modern, digital-savvy consumer.

    “For companies to keep up with digital consumer behaviours – how they act on information – it’s absolutely vital to adopt and leverage what their consumers are providing them with every day – invaluable data. Businesses slow to act on this data will see their competitive advantage erode.”

    Key findings

    Experian - DCV - Region - Key findings

    • Search and discovery: Social media is the top channel in Singapore (31 per cent), Malaysia (49 per cent), Indonesia (67 per cent) and Thailand (58 per cent). It’s equally important as chat apps in China (47 per cent); in Hong Kong, video ads (63 per cent) trumps all.
    • Triggering product interest: Social media, once again, is the key driver in Singapore (28 per cent), Malaysia (44 per cent), Thailand (49 per cent) and Hong Kong (25 per cent). However, in Indonesia it’s SMS (62 per cent), and in China it is chat apps (48 per cent).
    • Triggering purchase intent: Email is the biggest driver of online to offline conversion in Singapore (27 per cent); SMS tops in Indonesia (57 per cent); chat apps in China (45 per cent); social media in Malaysia (44 per cent) and Thailand (51 per cent); and video ads tie with social media in Hong Kong (23 per cent).
    • Finding good deals: For unplanned purchases stemming from promotions, email leads in Singapore (34 per cent); social media in Malaysia (50 per cent), Indonesia (68 per cent) and Thailand (58 per cent); SMS in Hong Kong (36 per cent), and social media in China (51 per cent).
    • Brand engagement: Email is key for marketers to build engagement in Singapore (58 per cent) and Thailand (60 per cent); chat apps in Malaysia (62 per cent) and China (70 per cent); banner ads in Indonesia (56 per cent), and SMS in Hong Kong (61 per cent). While email is important, marketers need to be wary: more than 70 per cent of consumers reported receiving too many emails, up from 52 per cent in 2015.

    Experian - DCV - Region - The rise of omni-channel engagement 1

    Shiv Putcha, associate director, consumer mobility and telco strategy with IDC Asia Pacific, says businesses and brands cannot afford to ignore Asia’s multi-trillion-dollar digital commerce market. China alone is now the world’s largest retail market.

    “The challenge lies in the fact that the region has extraordinary differences – language, economy, purchasing power – and consumer behaviours, especially with the digital generation. That uniqueness will not diminish over the next few years and may even increase, making it challenging for marketers not using data-driven insights to research, plan and execute effectively. The Digital Consumer View 2016 (Asia) will hopefully serve as a valuable guide to deciphering some of these key trends, mapping the path forward for brands and their connected consumers.”

    Experian - DCV - Region - Top 3 types of ads that influence consumer's buying behavior

    Key Learnings for marketers in Asia

    • Over-reliance on a single marketing channel will not work. Depending on the country and its current state of digital sophistication, marketers need to think carefully about the right mix of channels to employ.
    • Quality over quantity. Consumer preferences for receiving promotional material varies from market to market, and by specific use cases. On a broader level, more is not necessarily better. A relevant and targeted message will ensure better conversion. Too much, and consumers are inclined to unsubscribe, delete, or mark content as spam.
    • The quality and integrity of data is crucial for marketers to find success. A significant number of consumers across the region either knowingly or unknowingly provide inaccurate information, which in turn causes errors and inaccuracies in marketer’s data sets. Around 27 per cent of consumers in China but only 10 per cent in Singapore unknowingly input wrong payment details; 40 per cent of consumers in China, and over 20 per cent of consumers in the rest of the region provide a wrong address at online checkout.

    Asia comprises 49.6 percent of the world’s Internet users, according to Internet World Stats (2016), digital commerce in the Asia-Pacific (excluding Japan) region will rise to US$17 trillion by 2019, up from US$7 trillion in 2015 according to International Data Corporation (IDC). The combination of rising incomes, increased consumption, acceleration of internet use, and the proliferation of mobile broadband access continues to unlock tremendous opportunities for marketers across the continent.

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  • Malaysia’s retail industry may grow by 6% this year

    Malaysia’s retail industry may grow by 6% this year

    Malaysia’s retail industry is expected to grow by 5.9% in the third quarter of this year, boosted by the timing of the Hari Raya holidays, according to Retail Group Malaysia (RGM) in the latest Malaysia Retail Industry Report.

    RGM said the projected growth would also be spurred by the Minimum Wages Order 2016 that was implemented on July 1.

    “For civil servants in Malaysia, the minimum wage increased to RM1,200 per month. This has raised the average purchasing power of the Malaysian working population to some extent,” RGM said.

    It added that the Pokemon Go app launched in Malaysia this month had also attracted more visitors to shopping centres and retail outlets throughout the country.

    “Nevertheless, it is not expected to contribute significantly to retail sales. Food and beverage outlets and grocery stores located near to Pokestops will benefit the most from this craze.”

    Mall operator Sunway Malls, in a recent statement, said Pokemon Go had resulted in a surge in traffic and sales numbers at its shopping centres locally.

    “To date, we have seen traffic increase by an average of 10% for Sunway Pyramid (pic), 8% for Sunway Giza, 6% for Sunway Putra Mall, and 4% for Sunway Carnival Mall,” said Sunway Malls chief operating officer Kevin Tan.

    “It is widely known that malls in general have high traffic during the festive period and school holidays, but the introduction of Pokémon Go has certainly spiked up the footfall for the non-peak season.”

    Meanwhile, RGM said retailers in the fashion and fashion accessories sector expected their business to slow down again, with a positive growth of only 0.2% during the third quarter of this year.

    “Retailers in the pharmacy and personal care sub-sector are expecting to maintain their recovery with a growth of 11.4% during the third quarter of 2016.”

    MIDF Research, in a report earlier this month, said it was optimistic that the launch of the new Perodua Bezza and Proton’s new batch of models, combined with the launching of new smart devices, will boost retail sales in the second half of 2016.

    Moving forward, RGM said the Malaysian retail industry’s fourth-quarter growth rate estimate remained at 5.5%, taking into consideration the growth of 1.3% achieved during the same period a year ago.

    “The projected retail sales growth rate of Malaysia’s retail industry in 2016 by RGM stays at 3.5% or RM99.5bil in values.”

    The Malaysian retail industry reported a lower-than-expected growth rate of 7.5% in the second quarter of this year compared with the same period last year.

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  • CapitaLand Mall Asia inks its first third-party management contract in China

    CapitaLand Mall Asia inks its first third-party management contract in China

    CapitaLand Mall Asia Ltd, CapitaLand’s wholly owned shopping mall business, has signed its first third-party management contract to manage the retail component of a mall in China.

    The contract with Changsha Pilot Investment Holdings Group Co is for Fortune Finance Center, an integrated development in Changsha, the provincial capital of Hunan in central China, CapitaLand announced on Wednesday (Aug 31).

    It said the deal marks the beginning of an enhanced asset-light strategy to enlarge its mall network through third-party management contracts to complement its core strategy of developing, owning and managing malls.

    The scope of the contract covers asset planning, pre-opening and retail management for a total gross floor area, excluding car park, of 95,000 square metres (about 1 millio square feet) that spans seven levels – five levels above ground and two basement levels.

    Currently under construction, the mall is targeted to commence operations in end 2018. It is owned by Changsha Pilot Investment Holdings, a Chinese state-owned developer which currently has seven projects in Changsha.

    Said Mr Jason Leow, CEO of CapitaLand Mall Asia: “We continue to be on the lookout for suitable acquisition opportunities to grow our mall portfolio even as we seek to enlarge our network through third-party management contracts. By managing quality third-party malls for which we have a right of first refusal to acquire, we are also paving the way for future acquisitions.

    “Through this multi-pronged approach, we will be able to maximise opportunities to expand our mall and retailer network, increase recurring income and further strengthen our leadership in the shopping mall sector in the region.”

    With this contract, CapitaLand doubles its presence in Changsha, where it currently owns and manages CapitaMall Yuhuating, a 62,000 sqm mall, approximately 10 km) from Fortune Finance Center.

    It is also expanding its presence in China, where it has a network of 65 malls. Across Asia, CapitaLand now manages a total of 104 malls in Singapore, China, Malaysia, Japan and India.

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  • Isetan to open Japan Store Kuala Lumpur

    Isetan to open Japan Store Kuala Lumpur

    The Isetan Mitsukoshi Group will open a new specialty store, Isetan The Japan Store Kuala Lumpur in Malaysia at the end of October.

    “As global interest in Japan continues to grow, we are pleased to introduce Japanese history, culture, technology, diversity and lifestyle designs,” the company said, announcing the initiative.

    “The new store will deliver Japanese lifestyles and aesthetics to customers. We will bring not only the best of Japan, but authentic Japanese experiences as well.”

    The venture has the support of the government-financed Cool Japan Fund Inc.

    Comprising 11,000 sqm of floor space, Japan Store Kuala Lumpur will be located in the renovated Lot 10 and have six storeys introducing high-quality products, experiences and services:

    • LGF: New dining style based on authentic Japanese tastes and technologies – groceries, sake, beer & whisky, Japanese and Western sweets and green tea, delicatessen, eat-in dining space, fresh foods, etc.

    Isetan Japan store KL - LGF

    • GF: Fashion, art, technology.

    Isetan Japan store KL - GF

    • 1F: Japan’s fashion culture, a melting pot of unique combinations.

    Isetan Japan store KL - 1F

    • 2F: A collection of products featuring unique Japanese materials and technology to “enhance beautiful, healthy lifestyles”.

    Isetan Japan store KL - 2F

    • 3F: Experience Japanese culture – bookstore, culture academy, photo lounge, etc.

    Isetan Japan store KL - 3F

    • 4F: Restaurant floor featuring authentic Japanese cuisine to open in January 2017.

    Hiroshi Ohnishi, Isetan Mitsukoshi president and CEO said the company will introduce Japan’s exceptional products, experiences and services to the world.

    “In 2011, Japan’s Ministry of Economy, Trade and Industry (METI) launched Cool Japan, a program promoting the introduction of regional products, fashion and other content to the world. In this context, the Isetan Mitsukoshi Group has promoted the Japan Senses campaign, introducing to our customers remarkable traditional crafts from all over Japan, styling them with a newborn originality. Now, to more clearly convey the spirit of Cool Japan, we are ready to show the world the exceptional craftsmanship Japan is proud to offer.”

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  • Loss deepens for FJ Benjamin Holdings

    Loss deepens for FJ Benjamin Holdings

    Restructuring has taken its toll on FJ Benjamin Holdings’s bottom line.

    The fashion and lifestyle brand management company has deepened its full-year net loss to S$23 million (US$16.9 million) for its latest financial year, compared to S$17 million the previous year.

    Group turnover subsided 14 per cent to S$253.6 million. Excluding the translation effects of foreign currency, the fall was 10 per cent.

    Turnover from the fashion business declined 9 per cent to S$212.5 million, while timepieces fell 13 per cent to S$51.6 million, after excluding currency translation loss.

    FJ Benjamin attributes the turnover decline to the closing of non-performing stores, discontinued businesses and the closure of its north Asian business, plus a S$10.4 million loss in converting Malaysian ringgit to Singapore dollars. These factors more than offset a slight increase in sales from franchise brands.

    Gross profit margin was 39 per cent against 41 per cent in the previous year because of increased promotional expenses.

    The group operating loss, excluding a one-time gain of S$19.6 million from the sale of mandatory convertible bonds and the sale of properties last year, was 32 per cent lower year on year at S$19.9 million.

    FJ Benjamin says it expects the trading environment to remain challenging amid uncertain economic slowdown in its key markets.

    “The restructuring that started in 2013 has been substantially completed, and associated losses are unlikely to recur,” says the group.

  • Pos Malaysia Q1 net profit jumps 40% to RM32mil

    Pos Malaysia Q1 net profit jumps 40% to RM32mil

    Pos Malaysia Bhd’s net profit for its first quarter ended June 30, 2016 grew 40% to RM31.84mil, from RM22.74mil a year ago, despite operating in the current challenging environment, said group chief executive officer Datuk Mohd Shukrie Mohd Salleh.

    The increase was due to higher profits generated from its courier segment that was driven by demand from its e-commerce and online businesses. First quarter revenue rose to RM415.87mil from RM390.37mil a year earlier.

    Shukrie said Pos Malaysia is focussing to transform itself into a one-stop fully integrated logistics services provider through the recently approved and soon-to-be-completed corporate exercise of acquiring Kuala Lumpur Airport Services Sdn Bhd (KLAS) group of companies.

    The company will also introduce more new 24/7 e-commerce convenient touch points when it unveils a slew of new services. The company will also enhance facilities at all Pos Laju Centres and post offices nationwide. It is planning a total of 110 more touch points from the current total of 1,030 throughout Malaysia by end of 2016, Shukrie said.

    In a separate Bursa filing yesterday, the company said its courier segment registered higher revenue of RM162.8mil in the first quarter of this year compared with RM148.1mil a year ago.

    The upward performance was driven by increase in demand from e-commerce, the company said. Its postal services segment registered lower revenue of RM206.7mil in the first quarter of 2016 compared with RM230.6mil a year ago.

    “This is due to lower revenue for direct mail for mail segment and decrease of transactions from bill payment for retail segment,” Pos Malaysia said.

    Its international segment registered lower revenue by RM16.4mil as compared to RM36.1mil a year earlier due to lower transactions from transhipment business segment.

    Meanwhile, Pos Malaysia’s other segments which consist of digital certificates, printing and insertion registered higher revenue by RM7.8mil in the first quarter of this year due to higher business volume attributed to sales of digital certificates, as well as printing and insertion.

    Going forward, the company said its longer term prospects remain closely tied to the growth in the fulfilment and delivery of merchandise arising from the growth of e-commerce.

    “Investments by global e-commerce giants into the South-East Asia’s e-commerce players, for example the acquisition of Lazada by Alibaba, support the growth and development of the industry in the region.”

  • Robust profit for 7-Eleven Malaysia

    Robust profit for 7-Eleven Malaysia

    Despite a sluggish retail market, 7-Eleven Malaysia had robust after tax profit, growing 40.3 per cent, in its second quarter compared with the same period last year.

    Gross profit margin continued to improve, and the average customer spend edged up 4 per cent.

    A milestone was the opening of the 2000th 7-Eleven store in Malaysia.

    CEO Gary Brown says the net profit growth was achieved in a tough market in which the introduction of GST on April 1 last year dampened consumer FMCG spending.

    “We remain confident that continuous store expansion, refurbishment, promotional activity, improved merchandise mix and expanded in-store services will continue to deliver positive results despite the challenging headwinds.”

    Revenue for the second quarter, ended June 3, grew by 4.8 per cent to RM505.7 million (US$125.7 million). This was driven by store expansion, improved merchandise mix and promotional activity.

    Gross profit was up 6.8 per cent to RM156.7 million, mainly because of the revenue growth and gross profit margin expansion of 0.6 per cent.

    Profit before tax of RM21 million surged by 38.1 per cent, driven mainly by the revenue growth, gross profit margin expansion, other income growth and cost control.

    For the six months ended June 30, the group’s revenue grew 4.5 per cent to RM1.03 billion, driven by expansion (at the period end, the group had 2001 stores). Gross profit improved by RM18.9 million, or 6.3 per cent, thanks to the revenue growth plus gross profit margin edging up 0.5 per cent.

    Profit before tax was RM43.3 million, up 22 per cent.

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  • CBRE Research urges landlords to engage

    CBRE Research urges landlords to engage

    Online and offline retailing in Southeast Asia is expected to merge further, according to a new study by CBRE Research Singapore.

    Its report It’s All About Place-making urges landlords to play their part to stay ahead in a fast-changing retail landscape where consumers transit seamlessly from physical to digital platforms.

    CBRE Research projects that nearly 4 million sqm of city retail stock across Malaysia, Singapore, Thailand and Vietnam will be completed in the next three to five years. CBRE studied retail stock in Bangkok, Hanoi, Ho Chi Minh City, Jakarta, Kuala Lumpur and Singapore.

    “Some retail developments across these six cities have had to shut down in the face of high vacancy rates and low footfall as they failed to capture consumers and retain tenants,” says the report. “One suggestion is for landlords to acquire eCommerce platforms or set up logistics networks to give consumers the fully integrated omnichannel experience.”

    Established shopping centres with online platforms that provide “click-and-collect” or “store-to-door” services give consumers a higher sense of reliability and earn trust as well, says the report.

    “Both physical and online-only retailers are also more inclined to expand their footprint in these shopping centres in their bid to incorporate an omnichannel strategy.”

    Wave of change

    Combining both online and offline channels is one of five strategies CBRE Research recommends to landlords as Southeast Asian economies cope with structural shifts in the face of disruptive technologies.

    This wave of change has affected retail sales across the markets, with CBRE Research using the PLACE acronym…

    Place-making: Conceptualising shopping developments with the consumer’s experience at the forefront. A good social experience makes a strong positive association on the consumer and is tougher to replicate on the digital platform, says the company.

    Leveraging technology: Landlords should take advantage of the high internet and smartphone penetration among SEA consumers to improve the offline shopping experience. Technology can provide consumer insights and interaction while helping boost foot traffic and sales.

    Actively engaging: Forging personal connections with consumers is imperative for landlords to stand out from the competition and gain loyalty. Tenant engagement, and landlords need to find ways to show support.

    Combining channels: Landlords can break down the silos between online and offline by helping tenants incorporate an omnichannel strategy through vertical and horizontal integration, such as acquiring an eCommerce platform or setting up a logistics network to fulfil delivery needs.

    Engaging digital tenants: Landlords should seek to lease space to up-and-coming eCommerce retailers as they are likely to be more savvy about digital marketing and in tune with modern consumer needs.

    New needs

    “The onus of ensuring that stores in shopping centres remain an important and relevant touch point for consumers should not lie with retailers solely,” says CBRE Research Singapore/Southeast Asia head Desmond Sim. “The roles of the asset manager, landlord and shopping centre need to evolve to cater to the new needs of retailers and consumers amid stiff competition.

    “This task is all the more urgent as the market is anticipating a surge in internet use among developing countries, particularly Indonesia and Vietnam where mobile phone use has the greatest potential to increase.”

    Store-based retailing will stay the key point of purchase among SEA consumers in the next five to 10 years and account for at least 90 per cent of total sales value, says CBRE Research. However, landlords will face increasing pressure to make every visit to the shopping mall a memorable experience.

    With its headquarters in Los Angeles, CBRE Group is a commercial real-estate services and investment firm with more than 400 offices worldwide.

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  • FJ Benjamin secures Marc Jacobs rights

    FJ Benjamin secures Marc Jacobs rights

    Singapore fashion and lifestyle group FJ Benjamin has secured exclusive rights to distribute the Marc Jacobs brand.

    An agreement with Marc Jacobs International allows FJ Benjamin to open Marc Jacobs stores in
    Indonesia, Malaysia and Singapore.

    FJ Benjamin plans to open four stores in the next two years carrying the full range of the American designer’s women’s ready-to-wear, shoes, jewellery, bags and accessories.

    Starting his own label at the age of 23 in 1986, Jacobs became the youngest designer to win the Perry Ellis Award for New Talent from the Council of Fashion Designers of America.

    FJ Benjamin Holdings group COO Douglas Benjamin describes Marc Jacobs as one of the most exciting and sought-after fashion brands.

    Dating back to 1959, FJ Benjamin Holdings specialises in brand building and management through distribution and retail. With offices in Indonesia, Malaysia and Singapore, it manages more than 20 brands and has 226 stores.

  • Sunway’s footfall and sales up due to Pokemon Go

    Sunway’s footfall and sales up due to Pokemon Go

    Sunway Malls is seeing a surge in traffic and sales on the back of the launch of its Pokemon Go Lure Module earlier on 9 August- just a few days after the popular game was officially introduced in the country.

    The retail group said in a statement to A+M, with the retail industry already beset with a 4.4% fall in Q1 2016, the surge has offered a temporary relief for retailers. In comparison, growth was up 4.6% a year ago according to Retail Group Malaysia’s figures.

    Riding on game’s ability in moving large traction of traffic across various Poke stops, Sunway Malls was among the early adopters of the lure module activation to drive traffic into group’s four malls – Sunway Pyramid, Sunway Putra, Sunway Giza and Sunway Carnival in Klang Valley and Penang.

    “To date, we have seen traffic increase by an average of 10% for Sunway Pyramid, 8% for Sunway Giza, 6% for Sunway Putra Mall, and 4% for Sunway Carnival Mall,” Kevin Tan, chief operating officer of Sunway Malls said.

    Sunway said its preliminary report also suggests a rise in sales especially for its F&B retailers.

    “We are unable to verify exactly the total amount of overall sales achieved at the moment, but some of our retailers have shared that their shops have been busy because of the campaign. Currently, it looks like F&B operators have the most to gain whilst fashion retailers see the traffic but business is as usual,” Tan added.

    For example, for its Sunway Pyramid – F&B operator Gong Cha at recorded a 10% increase in sales while snacks retailers J&G Chicken and Crispy Crust saw higher than average sales. Similar trends were also observed in both Sunway Putra Mall and Sunway Giza, averaging an 8% increase.

    Over in Penang, Sunway Carnival reported the best results by far, with retailers such as Bread History recording a sales increase of 50% since the campaign began. Meanwhile, F&B operators Mocktail Bar and Blackball saw a 30% increase while Winter Warmers reported a 20% increase in sales.

    Other F&B operators of the mall such as Chatime, Sushi King, Kim Gary, New Zealand Natural and Shihlin Taiwan Street Snacks recorded a 15% increase in sales while Sakae Sushi, Yoshinoya, Starbucks and Kaffa Signature saw sales increased by 10%.

    A check on Google Trends also showed that the search for Sunway Pyramid coordinate shot up by a whopping 5000% due to its popularity as one of the locations with the most Poke stops, whereas Sunway Putra Mall saw a 180% increase for searches related to the mall’s tenant offerings.

    Much of this could be attributed to the fact that Malaysia was made to wait for Pokemon Go launch until recently, said the company. The game has been trending worldwide pending its official release here.

    “We saw it as our opportunity to leverage on game’s immense potential. The one thing unique about Pokemon Go is that gamers are finally coming out of their houses and converging in the outdoors. They have to explore their surroundings and learn the locations of the stops and gyms and familiarise themselves with whichever areas they are in, which is great for us as it means they explore our mall.  All these will ultimately translate into business and sales for our retailers,” Kevin said.

    It is widely known that malls in general have high traffic during the festive period and school holidays, but Sunway said – the introduction of Pokemon Go has certainly spiked up the footfall for the non-peak season.

    Ever since the introduction of GST (Goods & Service Tax) April last year, Malaysians were subsequently hit by the removal of petrol subsidy, sugar, inflation and drop in currency value.

    The retail and mall industry has been hit with lower consumer confidence, lower consumer spend and certainly lower footfall for certain malls. This prompted various malls in Malaysia to step up efforts in attracting more footfall, and riding the well-received Pokemon Go games is just one of the many strategies in place.

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  • RHB Bank to assess opportunities in Indonesia

    RHB Bank to assess opportunities in Indonesia

    RHB Bank Bhd, which saw its bid to acquire a stake in Indonesia’s PT Bank Mestika Dharma Tbk fall through, is optimistic about the prospects in that country and and will assess the opportunities.

    Group Managing Director, Datuk Khairussaleh Ramli, said the Indonesian market was good with banks recording stronger credit growth and higher return on equity compared to Malaysia’s.

    It has been reported that, on average, an Indonesian bank’s return on investment was between 15% and 20% compared with Malaysia’s 9) and 11%.

    “(However) at this point there is nothing on the table for us to look at and when it does we will have to evaluate the opportunity,” he said after announcing RHB Bank’s first-half 2016 financial results here on Wednesday.

    He said the recent bilateral agreement signed between Indonesia Financial Services Authority (IFSA) and Bank Negara Malaysia would pave the way for banks to have greater access in both countries.

    In 2009, RHB Bank, which was then the banking unit of RHB Capital Bhd had, proposed to acquire 80 per cent of PT. Bank Mestika Dharma Tbk for RM1.16 billion but IFSA’s move to limit the foreign ownership to 40 per cent emerged as a stumbling block for the deal to be signed.

    The second bid to acquire a 40% stake, also fell through after RHB Capital did not get the Indonesian authorities’ approval before the deadline of the sales and purchase agreement on June 30, 2014.

    Also under its own corporate exercise, on April 14, 2016, RHB Bank emerged as the new group’s holding company and it was listed on Bursa Securities on June 28, 2016.

    For the first half-year ended June 30, 2016, its pre-tax profit fell by 12.7% to RM1.22bil due to a one-off impairment on a corporate bond in Singapore. For the first-half of 2015, it reported a pre-tax profit of RM1.40bil.

    Revenue for the six months of 2016, however, rose to RM5.42bil from RM5.37bil.

    Khairussaleh said the financial market would remain challenging due to the macro-economic uncertainties in most parts of the world.

    “The risks of external demands and softer consumer sentiments are expected to moderate Malaysias gross domestic product growth in 2016 to 4% from 5% last year.

    “The banking sector growth too is expected to remain modest, attributable to a deceleration in corporate loans market and ongoing consolidation of household loans sector,” he said.

    He said although the bank’s performance in the second quarter was affected by one large impairment on securities, RHB was on track to achieve its long-term objectives set under the reframed strategy of focusing on performance.

    For the second quarter ended June 30, 2016, pre-tax profit stood at RM469.33mil, down from RM724.9mil a year ago. Revenue increased to RM2.68bil from RM2.65bil previously.

    “The group will stay on course in executing the various initiatives under its transformation programme, while continuing to be vigilant amid a challenging macro environment and volatility in the market place,” he said.

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