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Tag: report

  • LG profit plunges, missing forecasts by a mile

    LG profit plunges, missing forecasts by a mile

    LG Electronics’ operating profit fell nearly 80 percent in the fourth-quarter of 2018 year-on-year, according to preliminary figures disclosed in a Financial Supervisory Service regulatory filing Tuesday.  The smartphone and household appliances manufacturer estimated 75.3 billion won ($67.0 million) in operating profit for the final quarter of last year compared to 366.8 billion won in the same quarter in 2017.

    The estimate is far below the 398.1 billion won forecast by analysts surveyed by FnGuide, a data provider. The company anticipated 15.8 trillion won in revenue from October to December last year, a 7-percent decline from the same period a year earlier.

    Analysts pointed to the slowing global smartphone market as a factor weighing on the company.

    “With the smartphone market currently in a slump, [the company] is unable to find an opportunity to recover,” said Kim Ji-san, an analyst at Kiwoom Securities in a report Tuesday that predicted disappointing earnings prior to LG’s announcement. “Demand has slowed as smartphone replacement cycles have become longer in high-value markets such as Korea and the United States,” Kim added.

    Meanwhile, the company estimated annual operating profit for 2018 at 2.7 trillion won, a 9.5 percent rise from the previous year.

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  • Lotte Duty Free sales hit all-time high of US$6.7 billion in 2018

    Lotte Duty Free sales hit all-time high of US$6.7 billion in 2018

    South Korea’s top travel retailer Lotte Duty Free reported best-ever sales of 7.5 trillion won (US$6.7 billion) last year on a surge in online sales and mass purchases by Chinese merchants seeking trade in shuttling goods to China. Lotte Duty Free said its annual sales last year hit a record high of 7.5 trillion won, up 25 percent from a year-ago period. In particular, sales from the online business soared 50 percent on year to 2 trillion won, contributing 25 percent to its total domestic sales thanks to successful upgrades of its online and mobile platforms and various promotional perks like online-only products and discount options.

    Lotte Duty Free’s main store in the bustling shopping district of Myeongdong in downtown Seoul remained the world’s single-largest revenue earner for three years in a row last year with annual sales up 35 percent at 4 trillion won and daily revenue at about 11 billion won as of Dec. 14.

    The Myeongdong store that opened in 1980 has kept on growth with sales reaching over 1 trillion won in 2011, 2 trillion won in 2015 and 3 trillion won in 2016 on increasing demand from individual merchants from the mainland who buy popular Korean duty-free goods in bulk to profit from reselling them in China.

    Lotte Duty Free has expanded its investment in domestic stores to draw more consumers. Its Myeongdong store was expanded in August 2016, and spent 10 billion won to add the Star Lounge for VIP customers in April 2018. The World-Tower store in the affluent Gangnam area of southern Seoul also posted 1 trillion won in sales last year, becoming the largest earner to reach the threshold in the district.

    Meanwhile, Lotte Duty Free World Tower also posted sales of more than 1 trillion won (US$895.4 million), joining what the retailer dubbed the “One Trillion Club” on 23 December.

    That represents an 80 percent increase year-on-year for the Jamsil, Seoul store, which reopened on 5 January 2017, 193 days after it was forced to close on 26 June 2016 due to the loss of its licence in an open tender.

    “Even in the midst of rapid market changes, Lotte Duty Free has been able to achieve a record-breaking year, reflecting 38 years of operational expertise,” said newly appointed Lotte Duty Free CEO Lee Kap. “As a leader in the industry, we will endeavour constantly to improve our performance.”

    Lotte Duty Free said that the World Tower store’s excellent tourist services and differentiated luxury brand offer had generated “remarkable achievements” in 2018. This was despite the proliferation of new duty free stores in the Gangnam area [notably the new Shinsegae Duty Free store opened on 18 July], the retailer commented.

    Despite industry difficulties posed by the THAAD dispute between South Korea and China, sales of small and medium enterprise SME Korean brands at the World Tower store increased by 300 percent year-on-year. This contributed to a “win-win relationship” with SMEs, Lotte said.

    Increased demand by daigou shoppers “greatly influenced” sales said Lotte. The retailer noted that such travellers had compensated for the “stagnation” of conventional Chinese tourism since the THAAD dispute erupted in March 2017. However, Korean travel retail executives and observers are closely monitoring the impact of China’s new e-commerce law, introduced on 1 January 2019, which is expected to hit the daigou business hard

  • Bank Negara: US$101.4b international reserves at end-2018

    Bank Negara: US$101.4b international reserves at end-2018

    Bank Negara Malaysia’s (BNM) international reserves remained unchanged at US$101.4 billion (about RM417.06 billion) as at Dec 31, 2018, from Dec 14, 2018. The central bank said in a statement that the reserves position is sufficient to finance 7.4 months of retained imports and is 1.0 time the short-term external debt.

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  • Malaysian consumer sentiment to remain healthy this year

    Malaysian consumer sentiment to remain healthy this year

    AmInvestment Bank has maintained its “overweight” rating on the consumer sector, as consumer sentiment is expected to remain healthy on the back of recent consumer-friendly initiatives by the government. It said in a report that recent initiatives such as the reintroduction of petrol subsidy, capping of the electricity tariff and introduction of public transport subsidies, have contained the problem of rising cost of living and effectively put more money back into the pockets of consumers.

    “The substitution of the Goods and Services Tax (GST) with the Sales and Services Tax (SST) is a net positive to consumers as the SST has a narrower scope compared with the GST,” it said.

    According to the Malaysian Institute of Economic Research, the Consumer Sentiment Index has recovered beyond the 100-point confidence threshold after three years of a low sentiment trend.

    AmInvestment Bank believes that the positive trend in consumer sentiment will be sustained as consumers become more confident of the government with expectations of more rakyat-centric government policies, better governance and transparency.

    It expects private consumption to grow at 6.5% year-on-year on the back of a healthy labour market and stable inflation.

    While the food and beverage sub-sector does not typically benefit from greater disposable income, AmInvestment Bank has identified Berjaya Food Bhd (BFood), Mynews Holdings Bhd and Power Root Bhd as the top picks for the sector.

    It said that BFood is a beneficiary as improved consumer sentiment will drive discretionary spending while Mynews will be an indirect beneficiary of the public transportation subsidy.

    “We reckon that this measure will boost foot traffic surrounding the train stations. Mynews currently operates more than 30 stores in the MRT, LRT and monorail stations,” it added.

    Meanwhile, Power Root will be a potential beneficiary as it is a producer of staple products. It will also benefit from a stronger US dollar as around 50% of its sales are in exports.

    Downside risks that may prompt it to review its call for the sector are weakening of the ringgit against the US dollar (its 2019 assumption average is RM4.12) and sluggish improvement to economic fundamentals, which could lead to a de-rating of the sector.

    “A sluggish recovery in economic fundamentals such as high operational costs and a weak ringgit may not see consumers fully benefitting from savings tied to the SST reintroduction and consumer-friendly measures, thereby dampening the recovery in consumer sentiment,” it said.

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  • Vietnam to see slower growth in 2019

    Vietnam to see slower growth in 2019

    Vietnam’s economic growth is expected to slow down this year though it will remain a regional outperformer, according to leading global analysts. Fitch Solutions, an arm of Fitch Ratings, said in a report released Wednesday it expects Vietnam’s GDP growth to slow to 6.5 percent in 2019 in line with a wider trend of slowing global growth, but added the country would remain one of the fastest growing economies in Southeast Asia.

    The economy grew by 7.1 percent last year, the fastest rate of expansion in 11 years, according to official data. This was well above the 6.5-6.7 percent target set by the National Assembly.

    “Its increasing openness and reliance on foreign investment suggests that it is unlikely to be spared from the global growth slowdown arising from rising trade protectionism and tighter financial conditions.

    “Although we believe that Vietnam’s manufacturing sector and economy will continue to outperform the region over the coming quarters, growth is likely to face headwinds stemming from rising global trade disruptions and tightening financial conditions, which will negatively impact global economic growth and risk sentiment,” Fitch Solutions stated.

    The World Bank Group in its bi-annual report on Vietnam issued last month said the country’s GDP growth is likely to slow from 6.8 percent in 2018 to 6.6 percent this year as the global economy weakens.

    Weaker global demand for exports and reduced investment and trade flows as the U.S. Federal Reserve raises interest rates are other risks for Vietnam’s economy, Sebastian Eckardt, the World Bank’s lead economist for Vietnam, said.

    The Asian Development Bank (ADB) in a forecast released last month for the East Asia and Pacific region projected Vietnam’s growth at 6.8 percent for 2019, slightly lower than the 6.9 percent it expected for 2018. These rates are the second highest in the forecast behind only India’s.

    Disbursed foreign direct investment (FDI) in Vietnam reached a record $19.1 billion in 2018, up 9.1 percent year-on-year. With exports rising by 13.8 percent to $244.72 billion and imports at $237.51 billion, the country achieved its highest ever trade surplus of $7.21 billion last year.

    Fitch Solutions said in 2019 the manufacturing sector would remain a key economic growth driver and outperform the region.

    Vietnam has grown to become a manufacturing powerhouse, particularly in electronics, due to its relatively cheap and large workforce, geographical advantages, attractive tax breaks, stable political environment, and open trade policies.

    The opening up of the Vietnamese economy also came at an opportune time as China began to shift away from lower-end and export-oriented manufacturing to focus on the domestic economy.

    Vietnam’s continued commitment to economic liberalisation will also attract foreign manufacturers seeking to leverage its preferential trade deals.

    The country is a signatory to 10 bilateral and multilateral free trade agreements (FTAs), with six more trade pacts in the offing, including the highly touted Vietnam-EU FTA.

    Fitch Solutions added that trade tensions between China and the US would continue to drive up costs for manufacturers operating in China, pushing companies to outsource to its neighbor Vietnam, which is more competitive in terms of wages.

  • South Korean retail sales rise strongly in November

    South Korean retail sales rise strongly in November

    Online shopping during the month of November has driven a 4.6 per cent increase in South Korean retail sales compared to the same period in the previous year, according to government data. Ministry of Trade, Industry and Energy figures showed a 12.7 per cent year-on-year growth in online sales alongside a 0.5 per cent drop in offline retail during the month.

    Convenience stores, chain supermarkets and super supermarket sales showed positive growth, while large discount outlets and department stores saw declines of 2.8 per cent and 3.9 per cent respectively.

    Online sales in November were largely propped up by e-commerce shopping festivals in China and the US during the period.

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  • Hong Kong November retail sales almost stagnant

    Hong Kong November retail sales almost stagnant

    The growth of Hong Kong retail sales in November slowed to a crawl according to Census and Statistics Department figures just released. After a 6 per cent year-on-year increase in October, the value of sales in November rose just 1.4 per cent to an estimated HK$39.2 billion. That is well below the 9.7 per cent year-to-date rise for the first 11 months of the year.

    And after netting out the effect of price changes over the same period, Hong Kong retail sales in November rose by just 1.2 per cent year on year.

    A spokesman for the C&SD said the “generally moderated growth in retail sales in recent months” reflected more cautious consumption sentiment in the face of various external uncertainties such as the US-Mainland trade tensions and volatilities in the global financial markets.

    “Looking forward, while the favourable local job and income conditions and continued expansion in inbound tourism should still provide some support to the retail sector in the near term, consumer sentiment could be affected by weaker asset prices and the external uncertainties.”

    The overall figure was affected by soft sales of the key jewellery and watches category, down by 3.9 per cent, and of electronics, down by 4.9 per cent. Clothing sales fell by 3.6 per cent.

    Countering those falls were department store turnover, up 3.9 per cent; medicines and cosmetics up 10.1 per cent; food, alcoholic drinks and tobacco up 1.9 per cent; and other consumer goods, not elsewhere classified by 14.3 per cent. Optical store sales rose by 5.4 per cent and books and stationery by 6. 2 per cent.

    Quarter on quarter, Hong Kong retail sales receded during the three months to November by 2.7 per cent, compared with the preceding three months, with the volume of sales (after factoring in inflation) falling 1.8 per cent.

    For the first 11 months of last year, the volume of retail sales increased by 8.4 per cent.

  • Vietnam GDP growth tops 7 pct, highest in a decade

    Vietnam GDP growth tops 7 pct, highest in a decade

    Vietnam’s GDP growth of 7.08 percent this year retained its status as one of the best performing economies in the world. It was the highest growth the country has experienced since 2008 and compared with the median estimate of 6.9 percent in a survey of 12 economists.

    The scale of the economy at present value is over VND5.53 quadrillion ($237.38 billion), with average GDP per capita at $2,587 per person, a $198 increase over 2017, Nguyen Bich Lam, head of the General Statistics Office, said Thursday afternoon.

    According the office, the agriculture, forestry and fisheries sector grew by 3.76 percent this year, and contributed to 8.7 percent to the country’s GDP. Corresponding figures for industry and construction sectors were 8.85 percent and nearly 49 percent; and that of the service sector, 7.03 percent and approximately 43 percent.

    Lam said that the consumer price index (CPI) in December 2018 fell by 0.25 percent compared to the previous month. On average, CPI in 2018 increased by 3.54 percent, well below the 4 percent target set by the National Assembly.

    Export turnover for the year is estimated at over $244.7 billion, up nearly 14 percent compared to 2017.

    The FDI sector (including crude oil) still accounts for nearly 70 percent of export turnover, at more than $175.5 billion.

    On the other hand, Vietnam imported more than $237.5 billion the whole year, up 11.5 percent over 2017.

    Overall, in 2018 Vietnam achieved a trade surplus of $7.2 billion.

    “The quality of economic growth has improved,” Lam said.

    The GSO director general explained that labor productivity this year saw an increase of nearly 6 percent compared to 2017, at VND102 million (nearly $4,512) per person.

  • Vietnam labor costs highest among ASEAN comparators

    Vietnam labor costs highest among ASEAN comparators

    Vietnam’s labor cost is the highest among comparator countries in Southeast Asia, a World Bank report says.

    In a report on enhancing enterprise competitiveness and enhancing small and medium-sized enterprise (SME) linkages, it says Vietnam’s labor costs are higher than in comparable Southeast Asian peers.

    It defines labor costs for each firm as the cost of all payments to all workers divided by the number of workers.

    It says wage costs about $2,739 per worker for the median Vietnamese firm, about twice as high as in Laos, Myanmar and Malaysia, and about 30 to 45 percent higher than in Cambodia, Thailand and the Philippines.

    While Vietnam’s labor costs are higher than in the rest of the region, they seem in line with productivity levels and thus do not seem to be a major obstacle to competitiveness, the report says.

    The average manufacturing firm in Vietnam produces about $10,500 worth of value-added per worker per year, higher than in most countries in Southeast Asia. It is around $10,000 in Malaysia, and $5,000 in Cambodia.

    Vietnam’s relatively high value appears to be partly driven by high and growing use of capital, the report says.

    The report also breaks down labor productivity in the country by region. The north-central and central coastal regions of Vietnam have the highest productivity — of almost $16,000 value addition per worker — while the southeast comes in second at $14,000.

    The Red River Delta region has a productivity of only $7,000, and it is even lower in the Mekong River Delta at around $6,000.

    It also said that foreign-owned firms are generally more productive than domestic firms, which can be explained by their easier access to technology and finance through their parent companies.

    The World Bank report also says that capital productivity is low in Vietnam. The ratio of sales to value capital in Vietnam is around 160 percent, lower than in any of its peers in Southeast Asia. The bank’s data confirms that capital might not be used very efficiently in Vietnam.

  • Garuda Indonesia Expects to Make Profit in 2018: CEO

    Garuda Indonesia Expects to Make Profit in 2018: CEO

    National flag carrier Garuda Indonesia expects to end 2018 in profit and is targeting a net profit of Rp 1 trillion ($69 million) for 2019, its chief executive said on Friday. Garuda saved $96 million by working with lessors to restructure the financing of its planes until November 2019, chief executive Ari Askhara told reporters.

    “Our net profit for 2018 is positive, even though it might be a small amount,” he said, attributing the result to cost-cutting, renegotiation of aircraft leases and new partnerships.

    The result would be a marked improvement for the airline, which reported a $116.86 million net loss for the first six months of 2018. Ari declared in September that Garuda had abandoned hopes of making a profit this year, after struggling with fuel costs and a rising rupiah versus the US dollar.

    The new partnerships include Garuda taking operational control of rival Sriwijaya Group in November, gaining a majority share of the fast-growing domestic aviation market.

    That partnership could be escalated to a 51 percent share ownership of Sriwijaya, depending upon discussion with Garuda advisors and the Ministry of State-Owned Enterprises, Ari  told a media briefing. Garuda’s profit had yet to see a positive boost from Sriwijaya, he said.

    “Garuda might also see a partnership with [Malaysia’s] AirAsia … through [Garuda unit] Citilink but it’s very early,” he said.

    AirAsia president director Dendy Kurniawan confirmed in a statement that early talks with Garuda were underway, with “various forms of cooperation to support the industry being discussed,” but noted no final decision has been reached.

    Garuda has been battling for market share against local market leader Lion Air, which in October suffered a crash of a Boeing 737 MAX jet, killing all 189 people on board.

    Ari said Garuda had 30 million passengers in 2018 and would expand its fleet to include a new Airbus SE 330neo in September 2019 and a 737 MAX jet at the end of 2020.

    New profitable routes domestically and internationally are planned for 2019, he said.

    Ari also said an intended private placement of shares from subsidiary Garuda Maintenance Facility AeroAsia to longtime partner Air France Industries KLM Engineering & Maintenance had been canceled.

    He said that he considered the current share price of GMF AeroAsia too low and wanted to increase the company’s valuation first.

    Ari said GMF Aeroasia would partner with Dunlop and China Construction Indonesia to build a tire plant in 2019, with the first stage seeing a $300 million investment from the companies involved.

    The plant would be for the domestic market and supply 50 percent of its output to Garuda, 48 percent to Lion Air and 2 percent to AirAsia Group.

    Domestic air traffic more than tripled in Indonesia over the past decade as rising prosperity and lower fares made flying affordable for more people.

    With 129 million passengers in 2017, the Southeast Asian country is the world’s 10th-largest aviation market and is projected to continue growing.

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  • 7-Eleven Malaysia mulls float

    7-Eleven Malaysia mulls float

    The 7-Eleven Malaysia business may be floated. Malaysian businessman Tan Sri Vincent Tan is considering turning over his shareholding in convenience store operator 7-Eleven to his Berjaya Corp Bhd group. Maintaining that the share price of 7-Eleven is undervalued on Bursa Malaysia, Tan claims that the business, currently valued at RM1.43 billion (US$342 million) should be worth more than US$1 billion.

    The chain has 2250 locations within the territory, and according to Tan aims to open at least another 200 stores next year.

    “We are considering maybe sell all my 46 per cent shareholdings in 7-Eleven to BCorp, then let BCorp launch a General Offer (GO), but nothing is firmed yet,” he said.

    The businessman owns 48.33 per cent of Berjaya Corp, which is valued at around RM1.35 billion (US$323 million).

  • Aeon Credit posts better earnings in third quarter

    Aeon Credit posts better earnings in third quarter

    Aeon Credit Service (M) Bhd’s net profit for the third quarter ended Nov 30, increased 23.5% to RM87.14 million from RM70.55 million a year ago, attributed to lower impairment loss on financing receivables. Revenue for the period increased 11.6% to RM348.5 million from RM312.35 million.

    For the nine-month period, the group reported a 22.62% rise in net profit to RM267.01 million from RM217.75 million. Revenue was up by 8.7% to RM1.01 billion from RM925.95 million.

    Aeon Credit told Bursa Malaysia that its gross financing receivables as at Nov 30 was RM8.31 billion, representing an increase of 15.41% from RM7.2 billion a year ago. Meanwhile, net financing receivables after impairment was RM7.74 billion compared with RM7.03 billion a year ago.

    Its non-performing loan ratio stood at 2.05% as at Nov 30, 2018 versus 2.48% as at Nov 30, 2017.

    Total transaction and financing volume in the current quarter and nine months ended Nov 30 increased by 49.5% to RM1.5 billion and by 26.4% to RM3.9 billion respectively.

  • Top 10 Asian brands to keep an eye on in 2019

    Top 10 Asian brands to keep an eye on in 2019

    Last year, a rank report is released the #10 Best Performing Brands of 2017. The ranking gathered a mix of brands, which stood up from the crowd for incredible brand activities throughout the year.

    This year, the ranking focuses on Asian brands, which have registered a rapid growth in 2018 in terms of POS, distribution channels, global expansion; among them digital native brands that quickly captured a conspicuous pie of the market by conquering Millennials and GEN Z with their Intagrammable moods. From Korea to Japan, from cosmetics to accessories, the list covers the main trends to keep an eye on in 2019.

    3CE – The most Instagrammable cosmetics brand

    Launched in 2009, 3 Concept Eyes (3CE)  is the popular Korean cosmetics label of Stylenanda and is one of the youngest and most playful brand on the block.

    Founded by Kim So-Hee, the cosmetics label with mid-end price points was ranked No. 1 as the most preferred K-beauty brand by Chinese consumers in multiple surveys.

    The secret behind the success of the brand is the strong appeal it draws from Millennials and Gen Z. From product design to distribution, each facet of 3CE is thought to be Instagrammable.

    Living proof is the brand’s movie-themed flagship store in Gangnam-gu, Seoul, which turns its clients into stars getting ready to go on stage in make-up booths with colorful lighting and props in cute baby pink colors.

    Among the Instagrammable products, the brand’s jewel-like tubes of lip gloss have become a status symbol for Millennials and Gen Z, being featured in famous K-drama “Missing You” and now blanketing stores all over Asia.

    To keep it trendy, 3CE collaborated for the second year in a row with Maison Kitsuné to launch a second make-up range offering the perfect French x Korean beauty fusion with girly packaging.

    Available offline and online, 3CE’s products are distributed through its parent’s company, Stylenanda, multi-channel distribution model which includes e-commerce, speciality retailers, and point of sales in department and duty free stores.

    In less than a decade, 3CE has managed to become the fundamental pillar of Stylenanda and today represents more than 70% of the business with a 127 million euro turnover in 2017 and nearly 400 employees.

    It was actually 3CE which drove L’Oreal’s acquisition of Stylenanda earlier this June, the group’s first investment in a K-beauty brand (the exact amount was not disclosed but industry sources estimate the company was sold for between 570 billion and 600 billion won.)

    A Bathing Ape – BAPE  -The Asian streetwear brand

    BAPE is one of the most hyped brands in streetwear defined by its young audience’s appetite for anything on offer.

    Founded by Nigo in 1993, it started as a hole-in-the-wall T-shirt shop in Tokyo’s Harajuku district but in the 2000s, the brand catapulted cult streetwear into the mainstream, and was co-signed by everyone from streetwear devotees to celebrities like the Clipse, Pharrell, Kid Cudi, and Jay Z.

    In 2010, Nigo stepped down from the company as CEO, but stayed on to assist with the transition after it was sold in 2011 to Hong Kong fashion conglomerate I.T for $2.8 million.

    The hype around BAPE is still as vivid today with its unique designs appearing on everything from apparel to luxury items as celebrities from all industries like The Weeknd or American rapper Pusha T can be seen rocking the label. BAPE also takes part in collaboration as we have recently seen the exclusive line launched with the French capital’s iconic football club, PSG (Paris Saint Germain).

    BAPE was the creator of the fundamental streetwear formula of hype, scarcity and public spectacle – the brand’s recipe for success. It managed to find the right balance between exclusivity and mass appeal with prices ranging from HKD$699 to HKD$3799.

    A Bathing Ape has a very powerful brand DNA defined by its strong aesthetics: to have the BAPE look, you must go to BAPE as no substitute will do the trick. More than a clothing line, the label is a lifestyle in itself. The brand has a particular approach to collaborations, taking a lifestyle based approach as seen with the Pepsi can and MAC makeup campaigns.

    As of today, A Bathing Ape has 33 stores opened around the globe which are sitting in Japan, France, the UK, China, Hong Kong, Korea, Taiwan and Singapore. Selected dealers around the globe also offer the brands’ products. Online, the brand has 3 official website and it is also available on Zozotown.

    Owndays– The fast fashion eyewear disruptive concept

    OWNDAYS is an international optical retail concept founded in Tokyo, Japan.

    It currently has more than 120 stores in Japan and has successfully established stores in 11 overseas countries in Asia Pacific with 43 stores in Taiwan, 36 in Philippines, 27 in Singapore, 20 in Thailand, 6 in Hong Kong and 17 more spread across Indonesia (5), Malaysia (4), Vietnam (3), Cambodia (3) and Australia (2).

    Shuji Tanaka, current president and CEO, took over OWNDAYS in 2008 and has transformed it into a retail chain operation that sells over 2 million pairs of glasses annually.

    Owndays’ 3 key success factors? Simple price, Quick Service and Good Value.

    Offering a simple price system to its customers with sets ranging from HKD$480 to HKD$1280, there are no hidden costs, a refreshing touch in the industry. Customers are also seduced by the brand’s wide portfolio of products which delights both Asians and Westerns, from children to elderlies, and which is delivered in an impeccable and rapid service – essential today as we all know that time is money!

    OWNDAYS is keen on working with different platforms from different industries, including participation in one of the largest fashion shows in Japan – ‘Tokyo Girls Collection’ in 2010, and as one of the official sponsors of the world’s first large scale fashion tournament for top stylists – ‘World Runway Premiere’ in 2011. OWNDAYS also sponsored the 4th Okinawa International Movie Festival in 2012.

    The brand has its designers, but they also do great collaborations such as that with Japanese designer, Jun Hashimoto or Fashion Designer Kansai Yamamoto

    With the recent investment this November from L Catterton Asia and Mitsui & Co., I believe there is so much more to come.

    Other two similar retail concepts also rapidly expanding all over Asia are  Zoff and Jins, which increase the number of Japanese companies targeting overseas markets; and therefore, worth mentioning in this ranking.

    Charles & Keith – The affordable women’s accessory brand

    Charles & Keith is a fast fashion retailer that specialises in women’s footwear and accessories and has achieved much international success over the years.

    Homegrown on Singapore shores, Charles & Keith was founded in 1996 by the two Wong brothers. Since its establishment, the brand has expanded to more than 450 outlets worldwide and went beyond brick-and-mortar stores by offering online shopping on its website to offer its stylish and trend-focused designs in Asia Pacific, the Middle East, Europe and the United States of America.

    Known for its high quality footwear and accessories inspired by runway styles and trends for the masses the brand is constantly reinventing fashion with its curated collections.

    Charles & Keith is the answer for the trend-conscious medium high-income consumers. Indeed with its affordable price tags (from HKD$69 to HKD$1,199) and constantly reinvented inventories (it produces an average of 1,000 new designs each year, with about 15-20 new designs being introduced into stores each week), its medium-high income customers do not give it a second thought before ravishing themselves into the beauty of shopping.

    The brand has built itself a loyal customer base resting on a relationship of trust from Charles & Keith to always provide them with the latest in affordable fashion.

    Celebrities and influencers also support the brand, sharing their looks on social media platforms such as Instagram to inspire their audience. The latest Charles & Keith Holiday party, held earlier this month, featured K-pop star Yura, South Korean celebrity Lee Harin, Hong Kong actresses Grace Chan, Angela Yuen, Hedwig Tam and Ashley Lam and actor Carlos Chan or Taiwanese fashion influencer Molly Chiang, all wearing the brand’s line.

    Charles & Keith is not short of creative designs as it continuously engages in collaborations with the likes of Tokyo-based illustrator WALNUT or Disney for an Alice in Wonderland collection.

    The brand already has stores in North Africa and as it is expanding in Asia. We have also seen it opening its London offices along with logistic center in the region to serve the European market this year. Would this be the beginning of its physical expansion to the West side of the world?

    Lady M- An international triumph of sweetness

    Originally opened in Japan in 2001 by Emy Wada, Lady M is a bakery and retail cake business globally known for its elegant, handmade Mille-Crepes Cake. Bought by Ken Romaniszyn family in the early 2000s, the entrepreneur was confident of Lady M’s potential and eager to expand the brand’s presence to the US. As he began opening Lady M’s first New York boutiques, the number of them steadily increased over the following decade as the brand gained ren

    In 17 years, the New-York based bakery has grown to 26 boutiques spread over the American and Asian continent where it is present in, Singapore, Macau, Taipei, Shanghai, Beijing, Nanjing and Hangzhou. In 2018, 5 boutiques popped up in Hong Kong, including 1 at the airport, which enables visitors to take cakes home to their beloved ones.

    Lady M’s global success can be attributed to its branding inside out. Inside – the quality and beauty of cakes is all we can hear about with people queuing up outside the famous bakery; outside – its iconic logo and sleek storefront design with marble and glass displays are simply hard to miss.

    Its key success factor is the distinctive texture given by its secret recipe, which pleases palates internationally.

    Gentle Monster – Still the best store experience

    Founded in Korea in 2011, Gentle Monster, which sells oversized and low bridge sunglasses with Asian fit at premium prices (from $200 to $500), has become one of the fastest trendy fashion eyewear brands in Asia and has over the year spread its reach globally. It is a good case study of an Asian brand that was able to adapt a mature product to the local Asian demands and trends.

    Gentle Monster is being sold in over 450 selected shops in over 30 countries including South Korea, France, Spain, Italy, Portugal, UK, and opened a branch office inNY, USA.

    In terms of revenues, the year 2017 registered 250 million USD, 70 percent of which is coming from direct sales. With last year’s investment by L Catterton (60 million USD for a 7% stake), the brand opened more markets with one of a kind concept stores suchs as a kung-fu fighting boutique in London or New-York’s new flagship space while cleaning part of their wholesale distribution. The Seoul-based firm is now resuming its delayed plans for an initial public offering while expanding its business portfolio by launching its own cosmetics brand.

    Gentle Monster’s success rests on 3 key pillars: Newness, Strange Aesthetics & Celebrities.

    Hankook Kim, CEO and Founder of Gentle Monster said that consumers are not paying for his products, but rather the feeling of experiencing something new and fresh. To keep appealing to unpredictable customers, he changes store displays every 21 days and curates them as he would an art-exhibition.

    Nevertheless, having the perfect product with a unique store design is not enough today.

    It was not until 2014, three years after it was established, that Gentle Monster suddenly became known by all of Asia as South Korean actress Gianna Jun was wearing Gentle Monster sunglasses when she appeared on the hit show My Love from the Star. Following her apparition, more Chinese celebrities were photographed wearing Gentle Monster such as Li Yifeng, Yang Yang, and Kris Wu. The fame also reached the West as models like Kendall Jenner and Gigi Hadid also wore the brand.

    As the brand is now expanding globally, it is trying to reduce its link to the K-pop culture. In that spirit, Gentle Monster recently collaborated with lauded Canadian retailer SSENSE on a Matrix-esque capsule, American fashion designer Alexander Wang or London photography collective-turned-streetwear purveyor Places+Faces.

    When it comes to its expansion, the new stores in Taiwan opening this coming January and K11 Musea in Hong Kong are full of promises.

    Pomelo – The fastest growing fashion digital native concept

    Pomelo Fashion, the Bangkok-based digital native fashion concept, is one of the fastest growing ASEAN brand.

    Launched in 2013 by former Lazada Thailand managing director David Jou, Pomelo positions itself as a digital native fashion brand that is vertically integrated, delivering to over 50 countries globally.

    At the roots of its model rests New Retail.

    The principle? Enabling shoppers to narrow down their choices online to then send their favorites to physical stores for trying on for fit. This model has been the key to Pomelo’s success as it can be done in a small space, saving on rent, while giving customers the opportunity to marry the convenience of online commerce and offline service.

    With currently 6 stores in Thailand, Pomelo is now looking to open a physical location in Singapore.

    In a 6 month time span, Pomelo has in the past actively launched new products across almost 20 product categories. Those high frequency and consistent launches ensures the newness of the assortment and keep customers coming back. And as quantity does not mean everything, Pomelo hires its designers locally to ensure it fits local tastes. Cherry on the top is the brand’s price points which are about half those of Western fashion brands like Zara and H&M.

    Its success has been noticed by many, attracting investors such as JD.com which led a US$19 million investment round last year or the likes of 500 Startups, Hong Leong Group and Jungle Ventures.

    Sulwhasoo – The holistic luxury South Korean beauty brand 

    Sulwhasoo is a holistic luxury South Korean beauty brand manufactured by Amorepacific Group. It all started in 1966 when Suh Sung-whan introduced his ginseng cream to the world, without ever suspecting it was just one of many he would later on develop under the Sulwhasoo brand, created in 1997.

    Revenue leader since 2005 in its domestic market and best-selling cosmetics brands at Incheon International Airport’s duty-free shops, Sulwhasoo was the first Korean beauty brand to make 1 trillion won ($921.8 million) in sales in one year. Starting from HKD$250, the brand’s signature products average HKD$1,500.

    The success of the brand comes from its high-quality product development, which combines traditional ingredients like ginseng, Sulwhasoo’s star ingredient, with advanced sciences (the brand owns a team of over 500 researchers focused on nature-driven formulas).

    Earlier this year, Sulwhasoo has appointed hallyu star Song Hye Ko as its global brand ambassador, the first face of the company since its creation.

    Other contributor to the brand’s success is its distribution as Sulwhasoo has extended its reach beyond Korea, starting in Hong Kong in 2004. It has since entered 11 more markets including China, Singapore, Taiwan, Indonesia, Malaysia, Thailand, Vietnam, the United States, Canada and France. It is now present in over 358 locations worldwide.

    In-store experience is toda a key element of a store success and the Korean beauty brand strives everyday to bring customers its experience of the five senses offering them a luxury experience through services such as gift wrapping and hand massage.

    This year, the company aimed at increasing its store openings in second and third tier cities while expanding into four tier cities. It also expanded touchpoint in online retail by offering its products on major e-commerce sites such as VIP.com and JD.com.

    Miniso – The Japanese-based variety store mushrooming worldwide

    Miniso is a low-cost retailer and variety store chain Japanese-based design brand and if it might be barely known in the West, the success of this company is not negligible.

    It has opened over 2600 stores in less than four years, with USD1.8 billion sales volume in 2017. At present, MINISO has reached strategic cooperation agreements with more than 70 countries and regions including the United States, Canada, Russia, Singapore, the United Arab Emirates, Korea, Malaysia, Hong Kong (China) and Macau (China), with an average monthly growth rate of 80 – 100 stores.

    Established in Japan in 2013, the brand was born from a co-founding between Japanese designer Miyake Junya and the young Chinese entrepreneur Ye Guofu, a former designer.

    Miniso’s success rests on its wide variety of high quality products which boast a modern design but a very low price, ranging on average from US$1 to US$30.

    Its in-house product development also contributed to the success as over 200 procurement managers are constantly scanning the global market to spot trends and allow the brand to launch new products every week. Miniso also employs more than 500 product designers from various countries, including China, Japan, South Korea, Sweden and Denmark to satisfy all tastes.

    I am looking forward to see if Miniso will reach the challenge it has set itself of opening 10,000 stores in 100 economies, including 7,000 stores overseas, and generating 100 billion yuan ($14.52 billion) in annual revenue by 2022.

    NARS –  Shiseido family’s rising brand

    Cosmetics brand NARS, launched in 1994 by French make-up artist François Nars, quickly became one of the most sought-after in the market.

    Acquired in 2000 by Shiseido Group, it has been leading  the growth in Shiseido Travel Retail’s make-up portfolio, particularly in Asia Pacific, where sales of NARS more than doubled in 2017 over the previous year.

    The two pillars behind NARS’ strategy? Product innovation and enhanced brand animation.

    NARS offers its customers a fully comprehensive range covering all bases which has successfully seduced them.

    Addressing Chinese Millennials, Nars has built its O2O strategy around the traveller journey, creating digital and physical touchpoints pre-, during, and post-trip encouraging customer interaction at all times. The brand creates a “virtuous circle” that enhances the consumer experience and amplifies the buzz in the source market of China to drive awareness and demand.

    Key to NARS’ positioning was the accurate selection of distribution channels. At the end of 2016, the brand was available at selected retailers in France, UK, Russia, Spain, Italy, Czech Republic, Poland, Switzerland, Sweden, Denmark, Turkey, UAE, Qatar, Kuwait, Saudi Arabia, Bahrain and in 4 Travel Retail locations. In total, 511 doors. In 2017, NARS launched in Portugal and The Netherlands.

    Recent collaboration include the collection NARS developed with Charlotte Gainsbourg – ultimate Parisian hip girl.

    NARS is part of the Shiseido’s family, and like all the other brands, has greatly benefited from Shiseido’s successes collected in 2018. The Japanese cosmetics giant has been an active protagonist of 2018 beauty narrative with the release of its sustainability campaigns touching upon environmental and social pillars. Additionally strong campaigns to support its social responsible identity, new appointments, and focus on research have been the main initiatives of this year.

  • Cle De Peau Beaute opens first Malaysian store

    Cle De Peau Beaute opens first Malaysian store

    Luxury skincare and makeup brand Cle De Peau Beaute Malaysia has opened its first boutique, at Pavilion Kuala Lumpur shopping centre. The store features a makeup gallery which tells the story of Pave-Diamond particles while a skincare gallery showcases La Creme.

    The store has consultation tables with personal beauty specialists available to help customers choose the most suitable products for their skin types.

    A VIP-consultation space at the back of the boutique hosts signature facial treatments, which incorporate massage techniques by aestheticians.

    “The retail landscape has changed tremendously in the past 15 years,” said Hiroyuki Maeda, Cle de Peau Beaute global director of business operations with the group. “This change is not specific to just Malaysia but on a global level. As a brand, we need to continuously innovate and transform to make ourselves relevant to our customers.”

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  • AirAsia: High cost of unjustified PSC hike

    AirAsia: High cost of unjustified PSC hike

    Unjustified price increases such as the hike in passenger service charge (PSC) could result in airlines being squeezed out of business and subsequently affect tourism arrivals, said low-cost carrier AirAsia. In a strongly worded statement titled “MAHB’s record profits come at a cost to the Malaysian economy and tourism industry”, the airline said the PSC hike imposed by airport operator Malaysia Airports Holdings Bhd (MAHB) will lead to unintended consequences when MAHB’s clients, who have no choice but to use its services, are eventually squeezed out of business.

    “Then, everything will collapse – Malaysia’s tourism arrivals, billion in tourism receipts and revenues to MAHB’s own coffers (a fact it has failed to acknowledge). MAHB rewards itself with excessive monopoly profits, yet it provides the Malaysian public with embarrassingly low service levels,” it said.

    The two parties have been in a row over the additional PSC imposed by MAHB of RM23 per passenger at klia2, in a move to equalise the PSC rate at klia2 and Kuala Lumpur International Airport (KLIA).

    Last week, MAHB slapped AirAsia Group Bhd and AirAsia X Bhd (AAX) with a RM36.1 million lawsuit for refusing to collect the additional PSC and alleged arrears in PSC.

    AirAsia X Malaysia CEO Benyamin Ismail said more than 90% of the “millions” of passengers departing from klia2 who fly with AirAsia will attest to the long walks to the departure gates, labeling klia2 as a passenger-unfriendly airport with inferior facilities and unjustified high charges.

    He reiterated AirAsia’s complaints about the airport such as flight disruptions and cancellations due to major apron and runway defects, unscheduled closure of runways, ponding of water and fuel pipeline ruptures.

    “We were sued after we refused to collect the extra RM23 that MAHB has imposed for the sole benefit of its shareholders. We will vigorously fight this suit. We will not be part of this scheme to burden the travelling public by making them pay more for below par services,” he said.

    AirAsia noted that MAHB’s net profit more than tripled in 2017 to RM237 million from RM73 million in 2016, and estimates that MAHB’s returns on capital are well in excess of the level of the cost of capital set by regulators.

    AirAsia Malaysia CEO Riad Asmat urged regulators and policy makers to rebuff the “unfair and unreasonable” attempt by MAHB to use its monopoly to enrich itself further by revisiting and rescinding the decision to raise the PSC.

    “The overall tourism sector, one of Malaysia’s biggest revenue earners, and the interests of millions of Malaysians who have been able to fly because of the low fares pioneered by AirAsia, are being threatened by MAHB’s price hikes,” he said.

    He challenged MAHB’s argument of needing more profits to operate smaller loss-making airports on behalf of the government, noting MAHB’s “exponential” growth in profits over the last three years even after taking into account losses in its Turkish operations.

    “The additional RM23 to be collected will amount to more than RM100 million a year that will go straight to MAHB’s bottom line rather than to the government. MAHB will continue to be among the most profitable Malaysian companies for many years to come. But this will come at a cost to the wider Malaysian economy and at the expense of engines of growth such as AirAsia and AirAsia X,” he said.

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