Retail News CRM

Tag: Retail

  • Tmall.com launches massive grocery campaign

    Tmall.com launches massive grocery campaign

    Tmall.com has launched a RMB 1 billion (US$161 million) online grocery promotional campaign targeted at Beijing users.

    The Alibaba eCommerce subsidiary has teamed up with Cainiao, the logistics affiliate of Alibaba Group, to offer same-day delivery services to Beijing city residents.

    Online grocery shopping is a rapidly growing eCommerce segment and a strategic area of interest for Alibaba Group. The convenience of online grocery shopping has already drawn in millions of users. According to Kantar Worldpanel, China’s FMCG (fast moving consumer goods) eCommerce penetration rate was 36 per cent in 2014, while McKinsey says 40 percent of Chinese consumers have bought food online.

    Tmall Supermarket will run its promotion three times a day, allowing Beijing-based Internet users a chance to win ‘red packets’ that subsidise their grocery purchases. The promotion will end on July 31.

    Beijing residents who order from Tmall’s supermarket before 11 am will be eligible for same-day delivery service. In the future, Tmall Supermarket and Cainiao plan to roll-out same-day delivery services to Shanghai and other Chinese cities.

    Jeff Zhang, president of Alibaba Group’s China Retail Marketplaces, said Tmall Supermarket will draw on Alibaba Group’s complete eCommerce ecosystem – including Alibaba’s advantage in logistics, strength in online payments, big data and cloud computing, to bring consumers the most convenient and secure online shopping experience for quality products.

    Tmall Supermarket was established in 2012 and provides a one-stop shopping solution for Chinese users looking to purchase authentic food products, cosmetics, beverages, snacks and imported items. In the past year, Tmall Supermarket’s Beijing area GMV soared more than 700 per cent with 90 per cent of consumers shopping on their mobile phones.

    Lees ook:

  • Indonesia tariff ‘own goal’

    Indonesia tariff ‘own goal’

    Indonesia’s hapless government has embarked on a sudden tariff program experts agree will damage its economy and fuel inflation.

    Having just a month ago reduced taxes on luxury goods to encourage its people to spend more at home and less in overseas destinations like Singapore, now the government has slapped a range of tariffs on some 1000 popular goods categories, including cars, condoms, candy, alcohol, coffee and carpets.

    It says the move will stimulate local manufacturing by making imported goods less expensive.

    But economists – basing their comments on a long history of economic governance by Asian countries – agree the move will simply reduce spending and fuel inflation. It’s an economic own goal punishing its citizens and effectively subsidising inefficient, poor quality local producers.

    “Imposing this is out of alignment with the economic integration agenda and a step backward from the global trend of most economies forging free trade agreements towards lower tariffs, if not zero,” said Victor Tay, COO of the Singapore Business Federation.

    “Indonesia has the largest population in Asean and is also a net importer of many products.”

    Tay said imposing such barriers may protect local industry in the short term, but in the longer term might lead to local manufacturers being unable to improve their competitiveness against other regional suppliers.

    “This will not serve the greater business community well, especially if other countries start erecting their own barriers on a reciprocal basis,” he said.

    Indonesian university economist A. Prasetyantoko, concurred: “Higher import taxes would reduce the supply of goods and increase domestic prices, which would in turn further weaken buying power, then economic growth.”

    The new tariffs include:

    • 20 per cent on imported tea and coffee, raised from five per cent.
    • 30 per cent on meat, up from five per cent.
    • 50 per cent on cars, up from between 10 per cent and 40 per cent.
    • 15-20 per cent on confectionery, up from 10 per cent.
    • 150 per cent on imported liquor, previously 125,000 rupiah ($9.30) per litre.

    As one commentator in Singapore observed, the new tariffs are likely to make some Indonesians shift to having a coffee at a local coffee shop instead of at Starbucks.

    Justifying the increases, Heru Pambudi, customs and excise tax director-general, said: “Domestic industry is being overwhelmed by the flows of imported goods. We need to curb these flows so domestic products would not be outnumbered.”

  • Gome in $11.3bn bid for Artway

    Gome in $11.3bn bid for Artway

    Gome Electrical Appliances, the Hong Kong-listed Chinese electrical appliances retailer – is planning to spend $11.268 billion acquiring rival Artway Development.

    Buying Artway, wholly-owned by Gome’s controlling shareholder, will allow Gome to expand its presence from 269 cities to 436 cities across Mainland China.

    More importantly, it will significantly boost Gome’s distribution and supply chain operations and bolster its buying power with suppliers.

    Wang Junzhou, Gome’s CEO, said the acquisition will further strengthen Gome’s total retail value chain and fuel its expansion in second and third-tier markets, and eCommerce development in particular.

    In a statement, Gome said its leadership in the electrical appliances and consumer electronic products retail market in the PRC will be strengthened further upon the acquisition,” Gome said in a statement.

    “With the injection of quality retail stores and creation of synergies in supply chain, Gome will take advantage of the growth potential offered by both the online and offline platforms to bring forth a better total retail experience to consumers.”

    Gome says it expects the acquisition to reap synergies from the integration and sharing of resources in retail sales operations, procurement, logistics, after-sales services, warehousing, information technology infrastructure and human resources.

    “Other benefits include facilitating a more flexible fulfilment management, as well as cost savings in warehousing and distribution.”

    Gome says Artway’s stores are largely located in fast-growing second and third-tier cities, which are highly complementary to the group’s existing retail store network.

    “Concurrently, the empowerment of the retail store network will accelerate the Group’s eCommerce development, promoting full integration online and offline.”

    Artway has 578 stores in 181 Chinese cities. Most are located in Central and Western China, Bohai Bay and the Beijing-Tianjin-Hebei region forming part of China’s Economic Zones with significant governmental support. The latter includes the Silk Road Economic Belt, Greater Northeast Economic Area, Yangtze River Economic Belt and Beibu Gulf Economic Zone.

    The merger of the logistics networks will give the company full nationwide reach, a significant boost to its eCommerce potential.

    “The acquisition will enable Gome to upgrade its existing logistics network which covers 21 regional and 407 city distribution centers, by bringing together the listed and non-listed logistics arms. With the support of its 1714 retail stores, the group is poised to successfully complete its national logistics coverage deployment, forming a multi-dimensional logistics network with regional and city warehousing as well as national last-mile distribution coverage spanning more than 600 cities, 2500 counties and 45,000 towns that can enjoy localised distribution and installation,” Gome said.

    Lees ook:

    Lees ook:

    Lees ook:

  • Reliance in 1000-store telco deal

    Reliance in 1000-store telco deal

    India’s Reliance Industries is to build a network of 1000 stores, the consumer face of a new 4G mobile phone network.

    The new mobile phone network will be launched in December with 1000 stores branded ‘Jio Centers’. The network itself will be called Jio.

    The store network will sell Jio-branded mobile phones and be backed up by 500,000 licenced connectivity outlets and one million recharge outlets. These customer contact points will be operational by December, when the network – undergoing beta testing from next month – will boast 80 per cent coverage of India.

    The stores will also sell Samsung, Apple, Huawei and Xiaomi phones for connection to its network.

    “Reliance Digital would be a catalyst by making available entry level to ultra premium 4G LTE smartphones… in driving the device ecosystem in India for Jio,” the company said in a statement.

    Reliance Industries operates in a number of sectors, although its base is in energy and retailing. It is headed by Mukesh Ambani, India’s richest individual.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • Louis Vuitton wins Singapore copycat case

    Louis Vuitton wins Singapore copycat case

    Luxury brand Louis Vuitton has successfully sued a Singapore retailer for selling imitations of its goods.

    The High Court in Singapore ordered Cuffz, a retailer located in Raffles City shopping centre, to pay Louis Vuitton $35,000 in statutory damages for selling wallets which, in the court’s view, “imitated” the French brand’s own products.

    The wallets bore the ‘Epi Mark’, Louis Vuitton’s trademark interweaving ridges and valley in a recognisable two-tone effect, according to court documents.

    Assistant court registrar Edwin San issued a strongly worded written decision  observing Cuffz “demonstrated a contumelious disregard” for Louis Vuitton’s intellectual property rights and was a business which “flagrantly dealt in counterfeit goods”.

    The store closed in May last year soon after a police raid led to the seizure of allegedly infringing goods centreplace in this case.

    While the victory marks a clear win for Louis Vuitton, with the court’s decision leaving little room for misinterpretation, similar such cases in the past have been less clear cut.

    In Hong Kong, six years ago, LV withdrew criminal charges against high profile watch retailer City Chain for trademark infringement, alleging it used the LV flower design in a range of watches. Judges concluded that while the flower patterns were similar to Louis Vuitton’s, they were not identical.

    Louis Vuitton had sought $100,000 in damages – but the case was never about money. It was about Louis Vuitton sending a message to retailers that it was prepared to actively protect its trademarks and intellectual property.

    Lees ook:

    Lees ook:

  • Changi continues with new T4 leasing process

    Changi continues with new T4 leasing process

    The Changi Airport Group (CAG) has received its first expressions of interest from ‘established travel retail companies as well as popular international and local brands’ interested in concessions at its new 195,000sq m Terminal 4, which is due to open in 2017.

    As reported, the S$985m ($741m) terminal with a planned annual 16m passenger capacity will comprise 17,000sq m of retail and F&B space for more than 80 outlets, with expectations that the overall quality standards will be at least comparable to those offered in Changi’s other terminals.

    Interestingly, airport management added: “In another Changi first, passengers will have a unique walk-through experience shopping for Liquor & Tobacco and Cosmetics & Perfumes. There will also be a cluster of double-volume retail shop fronts, as well as innovative design concepts for a differentiated shopping experience.

    Meanwhile, Changi reports ‘good progress’ with its T4 project development and construction works, which started last year. The terminal building is now reported to be more than 70% complete, with the main superstructure now recognisably visible. The actual completion of the superstructure is now expected before the end of this year.

    This will then trigger the next phase, which will include the installation and testing of key airport systems such as kiosks for check-in and bag-drop, plus the baggage handling system, as well as the preparation of Terminal 4’s commercial spaces.

    It has also been confirmed that five more airlines – AirAsia Berhad, Indonesia AirAsia, Thai AirAsia, Korean Air and Vietnam Airlines – will all operate at T4, joining with Cathay Pacific.

    CAG said: “In total, these six airlines currently operate almost 800 flights every week at Changi Airport and collectively accounted for close to 7m passenger movements in 2014. With T4’s breakthrough terminal design and innovative concepts, passengers of these airlines can expect enhanced travel experiences at T4.”

    Airport management adds that it expects a few other airlines will also operate at T4 when it opens and it is forecasting between 8m and 10 m passenger movements in the initial period of operations.

    Changi Airport Group (CAG) Executive Vice President Commercial, Lim Peck Hoon underlined the high expectations that the airport’s commercial team has for its new retail and F&B offerings at T4.

    She said: “We want to inspire our partners to dream big with us, to think up show-stopping store designs and innovative retailing concepts to delight and surprise our passengers and airport visitors and create an airport shopping and dining experience like no other.”

    Lees ook:

    Lees ook:

  • China’s Multi-Level Marketing ban: a workaround?

    China’s Multi-Level Marketing ban: a workaround?

    Multi-Level Marketing (MLM), a type of Direct Selling System, is a marketing strategy where the company’s sales force is highly dependent on the salesmen they have hired in different tiers of selling.

    This is a marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant’s “down-line”, and can provide multiple levels of compensation.

    This type of organisational structure can be quite enticing as it has the opportunity to build up a big networking distribution without investing a considerable and consistent amount of money.

    The main features followed by Multi-Level Marketing organisations are:

    • Organisers, or operators, who take in new members calculate and pay salaries to a member on a different level according to the number of new members they have introduced either directly or indirectly, as well as the sales performance of the member.
    • Organisers request new members to hand in a sum of money as a precondition to joining.
    • The organisers, or the operators, encourage members to invite more people join, forming a multi-level relationship.
    • The salaries of members at a certain level are based on the sales of members at a lower level.

    The main factors that needed to be taken into account before setting up any networking and marketing plan for an enterprise are the size of the market, high quality products to sell and efficient internal training. The base concept of these activities is that the salesman’s gain is in proportion to the quantity and quality of the products that he, or she, is able to sell to potential clients.

    However, with the MLM Pyramidal Structure, the highest position always gets a percentage of the sales from those who are in the bottom positions. Some companies that wish to set up this type of structure want to incorporate a five or more level system.

    From our experience, a large number of foreign companies have expressed interest in entering into the Chinese market through this Multi-Level Marketing structure. However, they are going to be disappointed. In 2005, Chinese Government enacted a law called “Regulation of Direct Sales and Regulation on Prohibition of Chuanxiao” (where Chuanxiao stands for MLM). With this regulation China makes clear that while Direct Sales is permitted in the mainland, Multi-Level Marketing is not.

    Even if allowed, Direct Sales must follow several rules. The company is required to: have a business license, can only pay out one level of commission, the sellers have to follow an advanced training course offered by the company and by the end of the course they have to get a license and the direct sellers must wear a badge to prove their status.

    In addition, the personal seller’s commission it set at 30 per cent of the sales, including bonuses, commission, and other benefits. Because of the multi-level payment structure, the organisers and the members at top level obtain interest illegally and, according to the Chinese Government, disturb normal economic order, and affect social stability.

    On the contrary, in Taiwan and Hong Kong MLM is legal. It is common to see salesmen from these regions selling in the mainland using Taiwanese or Hong Kong addresses and banks to become sales reps in these jurisdictions while at all times living and working in China. The legality of this is questionable.

    Even after the application of “Regulation of Direct Sales and Regulation on Prohibition of Chuanxiao”, many companies are still operating under the MLM structure and this does not seem to be changing. Nu Skin Enterprise, for example, was under investigation for its illegal pyramid scheme. They were accused of relying more on signing up new salespeople than actually selling products to customers. Nonetheless they still play an important role in China’s marketplace.

    They are not the only company who is following this sales model, other such enterprises all act within the Chinese market with MLM structures.

    Lees ook:

  • Osim mulls ‘challenging’ quarter

    Osim mulls ‘challenging’ quarter

    Singapore based lifestyle products retailer Osim says trade across all its core markets were soft in the last three months.

    “This has been another challenging quarter,” the company said, declaring sales of SG$159 million and a profit of $29 million.

    “Despite these challenges, our dominant brand has enabled us to maintain a stable gross margin and cash generative business. We are continuing to invest for growth supported by a strong balance sheet.”

    Osim has 560 retail stores in 23 countries, with China maintaining its place as its largest market, where it has 251 stores in 45 cities.

    New products including uMagic, uInfinity Luxe, uDiva, uHip, uSqueez Air, uTrek and uShape Music helped sustain Osim’s dominant position in the category.

    “Our GNC outlets are doing well. We have a total of 220 GNC/RichLife outlets in ONI Global

    and we are growing our sales through new product launches,” the company said.

    Osim also operates 47 TWG Tea outlets, having opened four new ones in the quarter and with plans to open a further 11 in the second half of the year.

    “We remain optimistic on the prospects for the remainder of the year following launch of uMagic in key markets and upcoming planned product launches,” the company said in its stock exchange filing.

    Lees ook:

    Lees ook:

  • Daphne shutters stores as sales slide

    Daphne shutters stores as sales slide

    Hong Kong-listed shoe retailer Daphne International Holdings has issued a profit warning as it shutters nearly 200 stores.

    Daphne operates the Daphne and Shoebox retail brands in Mainland China.

    The company has reported the year on year, same store sales fell 16.9 per cent in the first half of 2015, and by 17.7 per cent in the second quarter.

    In the first six months of the year, Daphne closed 181 stores – 117 directly-managed and 64 franchised stores, the majority in the second quarter. But it still has 6221 points of sale.

    “During the first half of the year, the consumer sentiment remained soft, yet the erratic weather with delayed spring and summer seasons further dampened the appetite for shopping. This led to intensified competition in the mass market segment for ladies’ shoes as some aggressive peers offered deep discounts much earlier,” the company said in its quarterly sales filing.

    “However, the group upheld its discounting policy until the adverse effect of the weather subsided.”

    Turnover of the Core Brands business recorded a decline of low-teens percentage year-on-year for the first half of the year, as a result of a negative same store sales growth performance and net store closures.

    “In an attempt of further market segmentation, the group refined Daphne product range into seven product series in this spring/summer season to broaden its appeal to customers and to increase its differentiation from the competitors.”

    Daphne International also added one of the top young actresses in Mainland China, Cecilia Lau, to its group of spokespersons (including the popular Korean actress, Jun Ji-Hyun, and pop singer and actor, Nicholas Tse) to endorse one of its core product lines – Cosmopolitan.

    “By increasing the association of the product lines with the spokespersons, it helped build a strong brand image, and improved the marketing efforts,” the company said.

    Gross profit margin expanded due to the improved sales mix during the first half of the year, however, the decrease in sales exerted significant pressure on operating margin and the inventory management.

    Shareholders were warned not to expect good news when the financial statements for the first half are released.

    “For the six months ended 30 June 2015, the group is expected to have a significant decline in profit. The decline in profit was mainly attributable to a decline in same-store sales, decreased sales and negative operating leverage which resulted from the high fixed-cost structure of the group’s retail operation.”

    The group will now focus on boosting sales, inventory management, expense control and accelerating its eCommerce growth and will step up its promotional activities for the remainder of the summer season.

    Daphne is also working on an expansion plan for its eCommerce business and will allocate more resources to fuel its growth and O2O initiatives, which will include deepening its collaboration with various eCommerce platforms.

    “While the performance for the first half is below expectations, the group endeavours to improve its performance for the second half of the year,” it said.

    Lees ook:

    Lees ook:

  • Hamleys Singapore opens its doors

    Hamleys Singapore opens its doors

    The world’s oldest toy store is now open in Singapore.

    Hamleys is now trading in Plaza Singapura on the city state’s prime shopping strip Orchard Rd.

    Occupying 12,000 sqft across two floors of Plaza Singapura, the Hamleys store boasts prominent street frontage along Orchard Rd.

    Dubbed ‘The Finest Toy Shop in the World’ the new store promises an exciting in-store concept where playing is encouraged. Shoppers will find themselves immersed in a magical toy wonderland stocked with more than 10,000 toys, ranging from the traditional to the high-tech, as well as games and puzzles, arts and crafts, magic props, the Luvley Boutique – where girls will find an exciting selection of hair and nail products – and the iconic Hamleys Teddy Bear.

    Hamleys’ unique approach focuses on ‘bringing toys to life’ for children and families by actively encouraging children to play with the toys in store or by engaging with expert toy demonstrators. Understanding that memories underpin the essence of the Hamleys brand, the toy store will arrange for shoppers to meet the Hamleys Bear and popular characters such as  Barbie, Peppa Pig and the Teenage Mutant Ninja Turtles on special occasions.

    Ong Kee Leng, GM of Plaza Singapura, said that when introducing new-to-market brands, the centre looks for those with an established international track record.

    “The addition of Hamleys to Plaza Singapura will further enhance our position as a one-stop destination mall for families and friends, centrally located on Orchard Rd. We are confident that children will build lasting memories of unbridled joy and unforgettable fun times while adults will relive wonderful childhood years at Hamleys.”Plaza Singapura, also known as PS, is one of the oldest and largest malls on Orchard Rd. Established in 1974, it was the first to pioneer the all-in-one shopping concept, introduce anchor tenants and multi-storey parking.  The nine-storey mall which was recently revamped features over 300 stores and a 170m frontage along Orchard Rd.

    Lees ook:

  • Fred Perry Newest Bangkok flagship

    Fred Perry Newest Bangkok flagship

    BuckleyGrayYeoman has designed a new store concept for Fred Perry in Asia.

    The new Bangkok flagship is one of the star tenants of the newly opened EmQuartier shopping centre developed by The Mall Group.

    The store is the second BuckleyGrayYeoman designed in the Far East and the practice’s latest fitout in its tenure as Fred Perry’s Worldwide Retail Design Consultant.

    The Fred Perry Bangkok store in EmQuartier represents “a subtle development of the Fred Perry design language” developed by the architectural practice, which has resulted in “a contemporary and elegant boutique, designed to fit in with the selection of international luxury brands selected by the mall,” according to Paul White, director in charge of the project.

    “EmQuartier is an exciting new development for Bangkok that brings together a truly stellar collection of international retail brands. To match the tone of the development, we have successfully modified our core design strategy, creating a smart interior that aligns with the ethos of EmQuartier while retaining the definitive Fred Perry DNA,” said White.

    The store presents an open plan layout and sophisticated materials palette featuring concrete, black steel, timber and polished brass which contrasts with the wooden parquet flooring. A supersized signature Fred Perry laurel wreath logo has been drawn into the plan, influencing the shape and position of the seating and custom-made cabinets. In addition, BuckleyGrayYeoman  created a sense of luxury in the shopfront by using a striking ribbed black steel and brass strip wreath on a series of large scale artworks incorporating the Fred Perry laurel logo.

    Formed in 1997, BuckleyGrayYeoman is based in Shoreditch, London. Its past projects include Fashion Street in Shoreditch and 25 Soho Square in central London.

    BuckleyGrayYeoman has completed stores for Fred Perry in Cardiff, Westfield Stratford in London and now Munich.

    Lees ook:

  • Electronic City invests online

    Electronic City invests online

    Indonesian appliance retailer PT Electronic City is to invest US$15 million on strengthening its online shopping site and to develop its back end IT infrastructure.

    It will also open another seven stores this financial year and renovate some of its existing outlets.

    Electronic City has 70 stores across Indonesia, operating in 22 cities in 15 provinces.

    The 14 year old company, which listed two years ago, has reported a stunning 600 per cent year on year increase in sales through its eCommerce site during the month-long Ramadan fasting season.

    The overall business is budgeting for 10 per cent revenue growth this year, its stores selling IT and office equipment, mobile devices, home appliances and audiovisual equipment. It holds a share of about 41 per cent of the Indonesian appliances market.

    Lees ook:

  • Walmart China takes full control of online JV

    Walmart China takes full control of online JV

    Walmart China has taken full ownership of its Chinese eCommerce joint venture Yihaodian.com, buying out the 49 per cent stake held by local owners.

    In addition to seeking a higher profile in eCommerce, Walmart said it plans to create a “seamless experience” for customers across online, mobile and stores.

    Three years ago Walmart China took control of Yihaodian by bumping up its stake to 51 per cent. While the company pales in size compared to local eCommerce rivals Alibaba and JD.com, the world’s biggest retailer has been building up its online business in the wake of mediocre sales in the US, in a direct challenge to online competitor, Amazon.

    The investment will help Walmart target China’s fast-growing online market at a time when largely bricks and mortar retailers are feeling the pinch of competition from online rivals and a slowing of the world’s second-largest economy.

    Wal-Mart’s Asia head, Scott Price, said earlier this year that online retail was important to help tap China’s younger generations and that the firm would increasingly look to weave together its online and offline presence in the market.

    Walmart, France’s Carrefour and Britain’s Tesco have all seen sales or sales growth slip over the past five years in China, losing market share to local rivals.

    Yihaodian will be headed by Wang Lu, president and CEO of Walmart Global eCommerce in Asia.

    Walmart’s move also comes after China said last month it will allow full foreign ownership of some eCommerce businesses, with the goal of encouraging foreign investment and the development and competitiveness of the sector.

    “Yihaodian has excelled as one of China’s top eCommerce businesses. We’re excited about the team at Yihaodian and their strong local e-commerce experience,” said Neil Ashe, president and CEO of Walmart Global eCommerce.

    “This local experience, combined with Walmart’s global sourcing and our strong local retail presence and supply chain will allow us to deliver low prices on the products customers need in new and exciting ways,” he said.

    “Our investment in Yihaodian is part of our long-term commitment to grow in China and we look forward to continuing to play a positive role in the development of the eCommerce industry,” said Ashe.

    Walmart China acquired the remaining shares from Ping An of China, a financial services group, and the co-founders, former Chairman Gang Yu and former CEO Junling Liu.

  • Alibaba.com reduces cross-border risk

    Alibaba.com reduces cross-border risk

    Alibaba.com has expanded a free service that offers refunds to disgruntled buyers who use the international wholesale trading platform to purchase goods from overseas suppliers.

    Under the B2B website’s upgraded Trade Assurance program, buyers who make purchases from participating Alibaba.com suppliers will be entitled to full refunds of their deposits, or if applicable the total value of their orders, if suppliers ship products late or if product quality does not meet contract specifications.

    Launched in May, the program initially included only Chinese suppliers with reliable track records of trading on Alibaba.com who volunteered to participate. Within a month, coverage will be expanded to all suppliers who volunteer and are qualified to participate regardless of home country. About 50,000 suppliers have joined the program, according to Alibaba.com, a subsidiary of Hangzhou, China-based Alibaba Group.

    Trade Assurance protects buyers by holding deposits or payments in escrow until they are satisfied that suppliers have lived up to the terms of their sales contracts. The program is designed to reduce risk and foster greater trust and trade among Alibaba.com buyers and suppliers, most of whom conduct business over the Internet and never meet in person. Alibaba.com sells no products itself; the company runs an online marketplace that hosts virtual stores of manufacturers, distributors and other sellers, the majority of them based in China.

    “By providing maximum trade protection, Alibaba.com aims to make cross-border trading easier, therefore empowering small-and medium-sized businesses to engage in global trading,” said Alibaba Group senior VP Wu Min Zhi.

    “By lessening concerns and building trust in international trade, we are committed to introducing more trade opportunities to Alibaba.com members,” Wu said in a statement.

    “As a result, small businesses will not miss out the benefits of international trading due to trust concerns over product quality or payment security.”

    Trade Assurance protection is available to all of Alibaba.com’s millions of global buyers, provided the supplier they want to do business with is approved for the program. To vet suppliers, Alibaba.com uses data analytics to assess past performance and trading histories over six-month periods. The program currently only covers payments made by telegraphic transfer (T/T), but other payment methods will be covered in the future, Alibaba.com said.

    To help make it easier for small businesses to identify reliable trading partners, Alibaba.com encourages suppliers who qualify for the Trade Assurance program to display a Trade Assurance icon on their Alibaba.com virtual storefronts. To further improve transparency, storefronts also display the total number of transactions and total value of deals the supplier has completed over the previous 12 months. In addition, Alibaba.com will show how often and how quickly qualified suppliers respond to customers.

    Meanwhile, Alibaba.com says its “e-Credit Line” service – which provides trade financing to small businesses using Alibaba.com – is now expanded into Australia.

    Through a partnership between Alibaba.com and Australian finance company AUSvance, Australia-based small businesses can apply for loans and lines of credit in under five minutes through a streamlined process and obtain a line of credit from AU$5000 to AU$300,000 to pay suppliers for purchases on Alibaba.com.

    A decision based on an automated credit scoring model will be made within 60 seconds, and full approval can be granted within 24 hours after verification of documentation from the applicants, according to Alibaba.com. The interest rate is as low as 1.15 per cent per month for Alibaba.com customers.

  • Sands retail profits soar

    Sands retail profits soar

    Macao’s gambling downturn may be impacting on casino operators’ bottom lines – but retailing is on the rise.

    Las Vegas Sands, which owns The Venetian Macao, Four Seasons Macao and Sands Cotai Central shopping malls in Macau – and the Marina Bay Sands in Singapore – has reported an 18.2 per cent lift in profits from its Asian retail operations year on year for the quarter to June 30.

    Gross revenue from tenants in the company’s malls on the Cotai Strip and at Marina Bay Sands, reached US$134.4 million for the second quarter of 2015, an increase of 13.6 per cent compared to the second quarter of 2014.

    “Operating profit derived from these retail mall assets increased 18.2 per cent for the quarter compared to the quarter one year ago, reaching $119.4 million,” the company said in its quarterly financial statements filed in the US.

    The company says that despite the softer gaming market in Macao, The Venetian Macao “continued to enjoy Macao market-leading visitation and financial performance”.

    “The property generated adjusted property EBITDA of $255 million in the second quarter with an EBITDA margin of 34.5 per cent.”

    Mall revenues of The Shoppes at the Venetian Macao increased 14.9 per cent during the quarter to reach $48.5 million.

    The Shoppes at Four Seasons – 100 per cent leased at the end of the quarter – brought in $31.1 million in gross revenue and turned an operating profit of $29.2 million, giving an operating profit margin of 93.9 per cent.

    The Shoppes at Cotai Central brought in $14.6 million and a profit of $12.6 million. That mall was 97.8 per cent leased.

    And in Singapore, The Shoppes at Marina Bay Sands, 93.6 per cent leased at period end, brought in $40.4 million of revenue for the quarter and a profit of $34.5 million, for an operating profit margin of 85.4 per cent.

    Tenant sales per square foot were $5589 in the luxury section of the Four Seasons property, $2646 in the non luxury section; at the Venetian Macao $1578, at Cotai Central $1004. Marina Bay, by comparison, reached $1393.

    The overall Asian retail operation achieved $1789 per square foot in the quarter to June 30.

    Lees ook:

    Lees ook: