Retail News CRM

Tag: Retail

  • Japan’s BITPoint to Add Bitcoin Payments to Retail Outlets

    Japan’s BITPoint to Add Bitcoin Payments to Retail Outlets

    BITPoint Japan, the company behind Peach Aviation Ltd.’s move to let travelers use bitcoin to pay for tickets, is planning to give hundreds of thousands of Japanese retail outlets the ability to accept the digital currency.

    “We’re holding discussions with a retail-related company,” Genki Oda, BITPoint’s president, said in a recent interview. “By going through a company providing payment terminal services to shops, we have the possibility of increasing its use at one stroke. It’s easier than talking to lots of individual retailers.”

    BITPoint is joining a flurry of companies embracing regulations, enacted in Japan last month, that recognize digital currencies as a form of payment. That has helped to make yen trades one of the world’s largest transaction pools, exceeding China’s pole position at the end of 2016, according to Oda. Bic Camera Inc., one of the country’s biggest electronics retailers, began accepting bitcoin at two stores in Tokyo last month.

    “We’re also talking to a big convenience store operator about using it,” said Oda, 36, who also runs BITPoint parent Remixpoint Co., which had a market value of about 21 billion yen ($189 million) on Friday. He said he’s aiming to make an announcement by early next year.

    The shares of Remixpoint rose as much as 18 percent to their daily price limit. Last week, Remixpoint said it will convert debt issued to BITPoint into equity, raising its ownership in the subsidiary to 97.7 percent.

    Bitcoin, which debuted eight years ago, is gaining wider use as a way to pay for goods and services, and lets people transact without oversight from governments, regulators or central banks. The virtual currency has been rallying against the dollar and other fiat currencies and was trading at $2,210 on Monday, near record highs.

    While BITPoint operates as a bitcoin exchange, it’s pushing to promote the use of the cryptocurrency in stores and other retail outlets, instead of as a speculative instrument. The company currently has ties with tens of retailers and plans to expand that number, Oda said.

    A change in Japanese law on April 1 formalized rules around anti-money laundering and put in place standards for security and audits. Restaurant booking site Gurunavi Inc. will start letting diners pay with bitcoin later this year, the Nikkei newspaper reported last month.

    “It’s funny how the whole narrative of bitcoin being risky or dangerous has changed, and it is now seen as a form of pride to regulate and embrace it,” said Thomas Glucksmann, head of marketing at Hong Kong-based bitcoin exchange Gatecoin.

    Asked about the recent climb in bitcoin’s value, Oda said he’s wary of the sudden jump and doesn’t think it’s sustainable. At the same time, Japanese investors and day traders are taking a serious look at bitcoin as an asset class, thanks to the new regulations, he said, adding that several large foreign exchange brokerages will begin bitcoin trading in the coming months, boosting volumes.

    Still, it’s unclear whether bitcoin payments can become more than a marketing gimmick. The biggest hurdles include long network confirmation times and high transaction fees. While many bitcoin community members rallied around a new proposal last week to fix the problem, deep differences within the group have led to several similar solutions falling through since 2015.

    Lees ook:

  • Social media fatigue spreading among Korean users

    Social media fatigue spreading among Korean users

    The explosive popularity of social media among Korean users is starting to subside amid a sense of fatigue on excessive information from the new medium, according to industry sources.

    Data showed the numbers of users on major social media sites such as Facebook and KakaoStory are decreasing this year. According to market tracker Nielsen KoreanClick, the monthly active users of Facebook remained at 9.96 million in May, down 13.1 percent from 11.45 million a year earlier. That of Kakao Story was 12.59 million, down 17.76 percent from 15.31 million. Twitter also lost over 10 percent of its users in the month.

    Facebook has been the most-used social media site in Korea, recording 5.6 billion minutes of cumulative use time on mobile devices in April, according to mobile app data researcher WiseApp. Naver’s Band came second with 2 billon minutes. Instagram had 1 billon minutes and Kakao Story had 900 million minutes.

    WiseApp pointed out Facebook’s use time is continuing to decrease for the first four consecutive months of this year. Its use time was 6.6 billion minutes in January, 5.9 billion minutes in February and 5.8 billion minutes in March.

    When the internet entered the business world in the 1990s, executives unaccustomed to the massive amount of information suffered from what is called “information fatigue syndrome,” which made making decisions difficult.

    “Adding to the information fatigue syndrome, social media users increasingly face concerns over excessive or unwanted disclosure of personal data. They also experience a sense of relative deprivation as they compare their actual lives with the seemingly happy lives of others,” an internet service industry source said. Out of so-called “social media fatigue,” some of them stop using social media or unregister from the services, he said.

    “Though it has not been medically defined, those who excessively indulge in social media can feel stressed and fatigued. Some of them undergo withdrawal symptoms when they are not able to access social media,” the source said.
    An overflow of ads in social media timelines has also been pointed out as a cause of the user’s tiredness.

    In particular, Facebook is increasingly strengthening its ad business on the social media platform, tapping into its 2 billion global user base. Besides Facebook, most social media platforms have introduced ad platform algorithms that automatically analyze user patterns and preferences to publish ads.

    “Ad platform businesses on social media will definitely continue to grow on the spread of mobile devices and their use. Social media platform operators will come up with more elaborate advertising techniques to penetrate into the lucrative market,” a Seoul analyst said.

    “It is notable that the number of ads that users have to watch is rapidly increasing while people have already started to access the services less. In the meantime, users may find the platform less intriguing.”

    Meanwhile, new types of social media such as video-sharing Snapchat and Naver’s SNOW are gaining momentum in niche markets. Closed-doors social media services such as Blind are also popular.

    Compared to mainstream social media platforms such as Facebook, Instagram and Kakao Story, Blind provides anonymous communication channels among members of the same industry or company.

  • Malaysia targets luxe shoppers as retail spend soars

    Malaysia targets luxe shoppers as retail spend soars

    With shopping now a bigger driver of tourist spend than ever before in Malaysia, a luxury-dedicated component of the Malaysia Mega Sale Carnival was last week inaugurated by luxury retailer The Melium Group, in partnership with Tourism Malaysia and Pavilion Kuala Lumpur.

    Abdul Ghaffar Thambi, secretary-general, Tourism and Culture Ministry, said: “In 2015, for the first time, shopping became the main tourist expenditure at 31.3 per cent, overtaking the share for spending on accommodation. This trend continued into 2016 with tourist expenditure on shopping taking up a share of 31.7 per cent.

    “We are also seeing an increase in the amount spent by tourists for shopping. In 2016, tourists spent RM26 billion (US$6.1 billion) on shopping, up 20.3 per cent from RM21.6 billion the previous year.”

    Based on a report on the Tourist Refund Scheme, 43 per cent of tourist expenditure in Malaysia is on watches and jewellery, both considered luxury items. Chinese tourists are the largest spenders on these items, followed by Singaporeans, Indonesians, Indians and Bangladeshis.

    Beyond the Malaysia Mega Sale – Luxury Shopping Experience, Tourism Malaysia intends to attract big spenders in Singapore, Indonesia, India, the Middle East and Bangladesh through in-market tactical campaigns.

    President of The Melium Group, Farah Khan, said: “Our aim in supporting the government’s effort in the Malaysia Mega Sale launch is to engage with the luxury tourism market segment and ensure that Kuala Lumpur is well-positioned as the next global market opportunity for luxury brands.

    “With our duty-free status, we can capitalise on the luxury tourist shoppers market as luxury brand prices in Malaysia are within an average of 25 per cent lower than in other countries, and with the GST refund our luxury brands prices are more attractive.”

    Lees ook:

    Lees ook:

  • Engagement opportunities with Muslim consumers in Southeast Asia

    Engagement opportunities with Muslim consumers in Southeast Asia

    According to the “State of the Global Islamic Economy Report” by DinarStandard, Muslim consumers spent an estimated US$243 billion on apparel in 2015.

    Modest fashion purchases by Muslim women, estimated at US$44 billion that year, accounted for 18 percent of that total. Muslim consumer spending on apparel is expected to reach US$368 billion by 2021 – a 51 percent increase from 2015.

    The rise of modest fashion

    What is modest fashion? It generally refers to looking stylish while remaining relatively covered. Most importantly, the modest fashion movement is more mainstream and multi-brand than ever before. It is not reserved just for those who follow religious customs when it comes to apparel.

    Modest fashion is gaining momentum, driven by eCommerce and social media. Mass market retailers and designers are taking notice of the market potential and joining the modest mix. Prominent eCommerce players like Zalora and Lazada are already offering more than 3,077 and 13,310 pieces of modest fashion respectively. Brands like Nike, Zara and Mango have also introduced special collections for the Ramadan season.

    The Asia-Pacific region is home to 63 percent of the world’s Muslim population, or nearly one billion people. It is therefore no surprise that we see retail spikes during Ramadan, especially in Indonesia, Malaysia and Singapore.

    Based on an analysis of more than 8 million transactions across Southeast Asia, Criteo observed a 67 percent increase in retail eCommerce sales during this period in 2016. This trend is expected to continue during this year’s fasting month, which commenced on 26 May 2017 and will be followed by Eid al-Fitr from 25 to 27 June 2017.

    The Eid festival is the biggest holiday in Indonesia and amongst the most widely celebrated in Singapore and Malaysia. During this period, families customarily visit the homes of their relatives and friends, and households would be decorated lavishly and stocked with an abundance of food and snacks to welcome their guests. Naturally, they would also have bought new clothes to mark the beginning of the festivities.

    Overall, this represents a great opportunity for retailers, if they take note of the following seasonal shopping trends.

    Engaging consumers at the right time

    The third week of Ramadan represent the biggest opportunity for retailers to engage consumers when they are actively browsing and purchasing items for upcoming celebrations. During this period in 2016, there was a 67 percent uplift in online retail sales, especially on mobile devices. To reach mobile shoppers, apart from promoting their offers on mobile just before the start of Ramadan, eCommerce players must also intensify their digital marketing efforts towards the season’s end.

    One of the hallmarks of Ramadan is dawn-to-dusk fasting, which ends once the sun goes down. That means that throughout the 30-day period, daytime quiet gives way to night time buzz when people can eat and drink, giving retailers more opportunities for incremental sales increases at night.

    In Southeast Asia, nearly a third (29 percent) of retail sales happens between 9pm and 5am during the Ramadan period – a 21 percent increase as compared to the pre-Ramadan period. This means that eCommerce players should optimise marketing efforts for the time of day (or night) when Muslim consumers are most likely to shop online.

    Engaging consumers on the right device

    In Southeast Asia, 46 percent of Ramadan retail buyers use multiple devices prior to purchase, while one in four shoppers switched devices at least three times during their purchasing journey. No matter where your shoppers are, one thing is clear – they are browsing and toggling between mobile devices, desktops and various applications before making the actual purchase. During this season, eCommerce players must ensure that their digital storefronts are optimised for differing consumer paths to purchase.

    The success of eCommerce businesses in Southeast Asia will depend on their ability to enable or encourage users to complete purchases on their web, mobile web or app storefronts. To do so, these businesses can turn to machine learning based performance marketing technology that automatically understands customers’ shopping behaviour across devices, browsers and apps, and delivers personalised and compelling advertising content based an individual’s online habits and preferences.

    Modesty is both a fashion choice and a lifestyle. Today’s modest fashion buyers select pieces based on style and takes inspiration from many sources – they are no longer just relying on larger mainstream brands, but also turning to smaller players with niche interests and products. Social media platforms also allow individuals who dress modestly to share styles, experiences and views.

    Whether it is festive season or beyond, Muslim and modest fashion is still a relatively untapped market, but with massive growth potential. There is therefore no better time than now for eCommerce players to respond to and maximise the opportunities presented by this unique market, by leveraging mobile and cross-device strategies and technology.

    Lees ook:

    Lees ook:

    Lees ook:

  • ‘Chasing the Chinese Dream’ Shows Aspirations and Dilemmas at the Heart of China’s Consumer Economy

    ‘Chasing the Chinese Dream’ Shows Aspirations and Dilemmas at the Heart of China’s Consumer Economy

    China’s mass affluent population (individuals with RMB 650,000 to 6 million investment assets) makes up only around 2.5 percent of the country’s population, yet their personal consumption is expected to experience double digit growth to account for more than 75 percent of China’s total consumption by 2020, according to a report released by Oliver Wyman, a global consulting firm.

    The report, titled ‘Chasing the Chinese Dream’, reveals that China’s mass affluent population is expected to more than double from 15 million in 2015 to 33 million in 2020, rapidly accumulating wealth with investable assets projected to increase from RMB 21 trillion in 2015 to RMB 45 trillion in 2020.

    “The new mass affluent class, who are younger, more tech-savvy and free-spending, now allocate more money to investments and consumption than savings,” said Bernhard Kotanko, Oliver Wyman partner and co-author of the report. “Having suffered greatly from stock market volatility in recent years, investors are now looking to diversify risks and rebalance portfolios.”

    As financial needs evolve, half of respondents have already increased allocation of income towards financial products and/or Chinese stocks, the top two categories, followed by top-up insurance plans. Chinese equities and bank wealth management products are still the most common assets held by the mass affluent class, yet they are open to experimenting with financial innovations and have taken part in new fintech vehicles such as online money market funds and peer-to-peer products.

    On the consumption front, 60 percent of surveyed respondents have increased spending on entertainment (sports, cinema, etc.) and domestic vacations, on par with food and personal items. Furthermore, 30 percent of additional income is allocated to entertainment and holidays, exceeding the incremental spending on personal and household goods.

    “Our research suggests around two-thirds of incremental income will be funneled into consumption. However, Chinese consumers aren’t just buying more. They are now seeking meaningful experiences to elevate lifestyles, spending more on experiences that result in higher levels of self-fulfillment,” said Jacques Penhirin, Oliver Wyman partner and co-author of the report.

    The research shows that this new consumer class is forging new patterns of saving, investing and consuming, to support a more sophisticated and urbanized way of life.

    The paper also reveals that, even as Chinese consumers reach for meaningful lifestyles and experiences, the underlying foundation of economic and social security is shaky. Discontent over cost of living is widespread and profound. Quality providers of wealth management and basic welfare are still largely lagging – a paradox where they pursue higher values beyond material goods, but still grapple with basic needs.

      Aspirations Dilemmas
    Savings It’s not just about savings

     

    >> Savings is falling and more money is being allocated to investments and consumption

     

    		 Rising incomes but perceived wealth is not necessarily increasing

    >> Insecurities about the future means savings are still a safe haven and unlikely to fall to western levels
    Investments Investor appetites are diversifying

     

     

    >> Investors are more rational and demand more balanced, diversified asset allocation

    		 Desire to broaden investing but mistrusting of professional money management

    >> Without professional wealth management, wealth is mostly illiquid and consumption power is in deadlock
    Consumption Rise of the experiential consumer

     

    >> Consumers are seeking meaningful experiences to elevate lifestyles

    		 Striving to ‘live well’ but still uneasy about basic welfare, with healthcare the top concern

    >> There is growing demand for upgraded options in social goods to improve well-being

    “While increasing their spending on affluent lifestyles, Chinese consumers demand better welfare benefits and set money aside for future healthcare treatment and education,” said Jacques Penhirin.

    The skepticism towards local healthcare quality is fueling a rising medical tourism market, which is growing at a faster rate than the tourism industry. More affluent Chinese look overseas for wellness services, medical care and treatment for critical illnesses. The top five destinations, in order, are Japan, Korea, United States, Taiwan and Germany.

    The perception that Chinese consumers will indiscriminately buy more goods is a myth. As they search for ‘experience goods’ to elevate lifestyles, they are at the same time seeking upgraded options to social goods to improve well-being.

    Lees ook:

  • High quality is the leading purchase driver for urban Thais

    High quality is the leading purchase driver for urban Thais

    Although cheaper prices attract consumers in Thailand, it seems a product’s quality is the highest priority when making a purchase decision. According to new research from global market intelligence agency Mintel, as many as three in five (58%) metro Thai consumers* rate high quality as a key purchase factor, making this the leading driver of buying decisions. Also ranking in the list of the top five purchase influences among metro Thais are convenience (42%), special offers (40%), durability (35%), and finally, their favourite brands (26%).

    Thai consumers have seemingly become more cautious with their finances as Mintel research reveals three in five (59%) metro Thais said their personal goal in 2016 was to get their household finances in order. For the best bargains in town, 45% of metro Thais who are smartphone users say they use their devices to compare prices at other stores while out shopping, and 43% say they use their smartphone to research the best price of an item in their area before deciding where to make purchase.

    Avanthi Ravindran, Senior Trend & Innovation Consultant, Southeast Asia and India at Mintel, said:

    “Thailand’s consumers have become more prudent with their spending in recent years. In light of this, more and more consumers are turning to online channels that give them access to competitive offers and cheaper pricing. However, our research shows that high quality remains a key driver of purchases, and consumers are still willing to pay a premium for products that are safe and natural.”

    Furthermore, Mintel research shows that consumers are increasingly becoming more mindful of the environment and what they are consuming. Indeed, 37% of urban Thais prefer products that maintain fair trade regulations, while just over three in 10 (31%) prefer products that carry an environmental certification from a credible government or non-profit organisation.

    Consumers are now also willing to pay a premium for ‘safe to use’ claims on products, as indicated by two in five (40%) metro Thai consumers. This is the second biggest factor behind consumers’ willingness to pay a premium among urban Thais, following ‘better product performance’ (43%) which is the leading motivator. The third most important consideration for Thais to purchase products with a premium price tag is for them to be natural and formulated using pure ingredients; over one in four (27%) metro Thais said that they are willing to pay a premium for everyday products that are ‘natural’.

    “With ingredient safety concerns on an upward trend globally, consumers are on the lookout for products that highlight naturalness as well as clean, pure formulations. The words ‘safe’ and ‘natural’ enhance a product’s appeal to consumers, and these perceptions are only likely to grow with the increasing concerns around food safety and chemical contamination,” Avanthi adds.

    Finally, convenience is the second most important purchase driver among urban consumers in Thailand, after high quality (42% and 58% respectively). While the Digital Age has made shopping easier for convenience-seeking consumers, especially as information is now just a click away, Thai consumers’ busy lifestyles have also called for convenient and easy-to-use formats. Mintel research reveals that three in 10 (30%) metro Thai consumers prefer to eat out as they don’t have time to cook their meals at home, while as many as one in four (24%) prefer to eat lunch at their desk at work as it helps them save time.

    According to Mintel estimates, Thailand’s ready meals retail market saw an increase of 2.1% in volume, and reached 50,170 tonnes in 2015. The market is expected to grow at a volume CAGR (compound annual growth rate) of 3% in the five years from 2016, to reach a volume of 58,700 tonnes in 2020.

    “With metro consumers increasingly looking for convenient meal options, the opportunity for on-the-go formats has expanded, especially as Thailand’s ready meals market is forecast to grow over the next couple of years. The relationship between quality and speed should be recognised; consumers are looking for high quality, fresh products that are delivered conveniently and quickly. Offering the right price and discounting as appropriate are also crucial; companies will need to branch out with their marketing efforts, tap into online channels, and go beyond traditional retail stores,” Avanthi concludes.

    Lees ook:

  • 12,000 shoppers turn to GoSpree app

    12,000 shoppers turn to GoSpree app

    The Great Singapore Sale (GSS), from June 9 to Aug. 13, is going digital this year with a new mobile phone app called GoSpree. The free app will operate as a “super mall” platform, allowing customers to get their hands on various e-coupons from different categories of retailers across the island.

    Using the app, available in English and Mandarin, seems easy enough. Shoppers pick the discounts they want to enjoy and the app compiles the offers on a virtual card to be used at designated physical stores before they expire. The geo-location enabled app will also let retailers send e-coupons and flash deal alerts to shoppers nearby.

    Each GSS retailer will also get a unique QR code, which may be displayed around the island. Users can collect these codes using the app’s code scanner to unlock special deals.

    The app will also have a directory of participating retailers for users to browse through. To be launched on the first day of the nine week-long sale, the free app can be downloaded through the Apple Store and the Google Play store.

    Its aim, says the Singapore Retailers Association (SRA), which organises the annual GSS, is to reach out to younger tech-savvy shoppers, as well as to help participating retailers, especially smaller stores in the heartlands, pull in shoppers during the sale.

    Said SRA’s executive director Rose Tong: “With the GoSpree app, we are hoping to target anyone with a phone and incentivise their shopping experience.”

    “We particularly want to reach out to smaller, independent retailers who can really leverage on the platform to target new customers and get additional publicity at no cost,” she said, adding that the sale will stretch past the National Day public holiday so shops can hold themed promotions.

    Retailers will not be charged to list their offerings on the app, which is owned and copyrighted by SRA.

    One retailer already on board is local design and lifestyle store Naiise, which will be offering $5 GoSpree e-coupons as well as exclusive discounts and offers to app users.

    Said Naiise founder Dennis Tay, 32: “For us, getting on GoSpree offered us a chance to reach digital natives – many of whom are our target audience.”

    “We feel the app is a move in the right direction because it is allowing retailers to transform the offline shopping experience and take it beyond the transactionary.”

    Also on the app are retailers such as furniture and electrical giant Courts, department store Takashimaya and Millenia Walk mall – all of whom have e-coupons and special deals such as free parking vouchers that will be revealed when the app launches on June 9.

    In addition, UnionPay cardholders will get access to exclusive deals through the app. The GSS this year, supported by Singapore Tourism Board (STB) and UnionPay, is in its 24th run. The event has helped cement Singapore’s reputation as a shopping paradise and was launched by STB in 1994 to market the island as such.

    The move to digitise the sale comes in the wake of the retail industry transformation map announced last September. The map, among other things, calls for retailers to innovate and try out new technology to reach out and engage with consumers.

    So far, it seems like shoppers will bite.

    Lees ook:

  • The Ramadan Productivity Drop And How To Overcome It

    The Ramadan Productivity Drop And How To Overcome It

    The holy fasting month of Ramadan is a special time in Indonesia, with nightly celebrations and long days of devout reflection for Muslims and discrete respect from non-Muslim expats and locals. Although for bosses and managers, the month can be a time of frustration with productivity seemingly grinding to a halt.

    “The productivity of workers declines in the holy month by 35 to 50 percent as a result of shorter working hours and the change in behaviour during this month,” Samer Sunnuqrot, an economist based in the Jordanian capital Amman told.

    Unlike Muslims practicing in Muslim-minority countries, like the United Kingdom or Australia, the specific needs of fasting can be taken into account by business and government in Muslim-majority countries like Indonesia or Jordan.

    “Decisions and meetings will be postponed until the period of Ramadan is over, especially in governmental institutions. This causes lower productivity and performance and might incur losses for business people because of the postponing of decisions and processing of government transactions,” Sunnuqrot said.

    While productivity dips during the fasting month, Sunnuqrot notes consumption tends to rise.

    “The positive side of Ramadan for business people is a higher demand for goods and services and higher consumption.

    “That often means higher prices, which translates into higher profit margins for merchants, retail stores, restaurants and cafes – especially those which arrange amusement programmes for after iftar (the breaking of the fast),” he said.

    Rumy Hasan, a lecturer at the University of Sussex, investigated the economic impact of lost productivity during Ramadan. His research found Ramadan creates a loss of 42 working hours per fasting participant each year, representing an overall 2.5 percent reduction in output annually.

    “Productivity declines not only from the physical strain of fasting but from the disruption to the flow and organization of work. It is reasonable to assume that a decline in productivity would further reduce economic output by at least 3 percent each year, which represents a significant annual recessionary impact of Ramadan,” he said.

    This decline is due largely to the physical effects of fasting.

    “Occupational health researchers have highlighted various adverse health consequences from severe dehydration, including headaches, dizziness and nausea,” Hasan found.

    For Muslim-minority countries this loss can be absorbed by the non-fasting majority of the labour force, but in Indonesia, where almost 88 percent of the population identifies as Muslim, this represents a massive issue.

    But all hope is not lost for managers and bosses hoping to boost productivity in the office until the Idul Fitri long weekend. While fasting, early mornings and late nights leave workers lethargic and struggling to focus so making the workplace flexible can help overcome some productivity issues.

    Beginning work earlier for an earlier finish will ensure workers maximize their energy from the pre-dawn morning meal, or suhoor, while also helping employees make it home in time to break the fast, or iftar, while dodging crippling traffic.

    Business consultant Mohammed Faris suggest non-Muslim managers and bosses take part in their own three-day fasting challenge in an effort to demonstrate both solidarity and to better understand the experiences of fasting colleagues.

    “If you want to engage with your staff on the challenges of fasting in Ramadan and work productivity, the best way is to actually talk about it and empathize with them. Start a conversation by asking your fasting employees how they consider work would be affected in Ramadan and what could be done about it,” he told.

    United Kingdom news portal Metro recommends tailoring traditional productivity tips for the month, such as goal setting and creating daily lists of tasks. This ensures Ramadan is treated as the special time that it is, while also maintaining good work habits.

    Additionally, while it may be tempting to gorge on the traditional treats and meals of the season, keeping healthy during the working week at least will go a long way to maintaining functionality. Lots of fresh fruit and proteins during the morning meals will help keep any participant in great health for a long, productive day ahead. Likewise, avoiding overly sugary and fried snacks in the evening and staying hydrated will keep the body healthy.

    Lees ook:

  • Shiseido Travel Retail challenges the status quo with WASO Millennial skincare line

    Shiseido Travel Retail challenges the status quo with WASO Millennial skincare line

    Shiseido Travel Retail is set to extend its skincare offer with a new and “completely different” range aimed at Millennials. The WASO line, which aims to change the way beauty is seen and made, will be available in travel retail Asia Pacific in August and in the Americas, Europe, Middle East & Africa in September.

    WASO means skincare that is inspired by Japanese aesthetics, following the ‘Washoku’ philosophy, which ensures that the range has been created with respect for nature while harnessing the power of botanical ingredients. WASO’s campaign and product line aim to champion beauty from the inside out.

    Shiseido said through WASO it is redefining beauty and empowering Millennials to feel beautiful in their own skin.

    To celebrate the new approach to beauty, WASO has partnered with five Millennial brand ambassadors to change the perception of “what is pretty”. The campaign, shot by Viviane Sassen, features the five influencers in the Japanese wilderness. 21-year-old art designer, fashion designer and videographer Julian Klincewicz created the campaign’s video content. Shiseido said it chose him not only because of his talents but because of its dedication to creating an authentic voice for a new generation.

    Collaborative collective Dvein, helmed by Teo Guillem and Carlos Pardo, is behind WASO’s launch film which is a celebration of the key ingredients in each of the WASO products, showing them in their natural elements alongside technology.

    Shiseido has designed a unique method for formulating whole botanical cells into the WASO range, to deliver a total skincare solution, which is called “Whole Cell Release System W” (for moisturisers). Designed to treat the needs of Millennial skin, the product range resolves skincare concerns like dryness, oiliness, blemishes and visible pores.

  • Vietnam among top 6 most-attractive retail markets

    Vietnam among top 6 most-attractive retail markets

    Vietnam has been named among the Top 6 most-attractive retail markets in the world this year by A.T. Kearney in its Global Retail Development Index (GRDI), following India, China, Malaysia, Turkey, and the United Arab Emirates (UAE).

    It outstripped populous markets such as Indonesia (8th) and countries with good retail markets in recent years, such as Thailand (30th), Philippines (18th), Kazakhstan (16th), and Saudi Arabia (11th).

    This is evidence that Vietnam’s retail market is again attracting foreign investors, as it was outside of the Top 30 in 2002, then 6th in 2009, 14th in 2010, and 23rd in 2011, according to A.T. Kearney.

    The reason why Vietnam is in the Top 6 is that its investment laws are open and promote its attraction among foreign retailers.

    The government has permitted foreign retailers to own 100 per cent of capital in the country’s retail sector and has adopted priority policies to attract them.

    This is reflected in a 12.5 per cent increase in foreign investment in 2016. The recent free trade agreement (FTA) signed with the EU is expected to push investment even higher.

    Retail sales have also increased significantly in recent times, reaching $118 billion in 2016, up 10.2 per cent against 2015.

    “It’s a suitable time for Vietnam to boost up its economy, which is shifting towards private enterprise and high-value export items, and this is expected to increase incomes and consumption in the long term,” said Mr. Soon Ghee Chua, AT Kearney’s Southeast Asia chief.

    He also believes that government incentives, urban and middle-class population growth, a young population, and GDP growth expected at 6.6 per cent this year gives foreigners plenty of reason to be optimistic about Vietnam.

    E-commerce also contributes significantly to retail revenue in the country, which is expected to increase 22 per cent this year, and online discounts and promotions are boosting sales. AT Kearney notes, however, that businesses will have to be careful and have a long-term strategy to sustain this growth.

    Foreign retailers are expanding their business systems in the domestic market. According to A.T. Kearney, convenience stores and mini-marts are the fastest growing segments. Circle K and FamilyMart entered the market in 2009 and are expanding rapidly. FamilyMart expects to have more than 800 stores by 2020 and 7-Eleven will open its first store in Vietnam this month under a franchise agreement with Seven System Vietnam, and aims to open 1,000 stores over the next ten years.

    According to forecasts to 2020, modern retail channels will increase up to 45 per cent, the country will have about 1,200-1,300 supermarkets, the number of trade centers will also increase to over 300, and convenience stores will number in the thousands.

    The GRDI was first published in 2002, ranking 30 developing countries on their attractiveness for retail investment.

    It analyzes 25 factors related to macroeconomics and retail, to help retailers identify global strategies and identify emerging market investment opportunities. The study not only indicates the most attractive markets today but also potential markets in the future.

    Lees ook:

  • Avoiding Supplier Sustainability Scandals Through Better SRM

    Avoiding Supplier Sustainability Scandals Through Better SRM

    Corporate ethics are under greater scrutiny than ever before; any failing is rapidly exposed on social media and very soon hits the global headlines. Investigative media – be that online, on television, or on paper – will eagerly expose the latest scandal, whether it’s to do with child labour, slave workers or bribery in high places, while Governments, which must be seen to act, respond with public inquiries, new legislation, or prosecutions. But it’s not just about protecting brand reputation and adhering to regulations, it’s also about being able to reassure and cater for customers.

    Daniel Weston, Chief Operating Officer (Europe), Adjuno, discusses how best to implement effective Supplier Relationship Management (SRM) to help avoid nasty surprises.

    Conscious Consumers
    Many of today’s shoppers want to know exactly where the items they buy come from and that they are sourced sustainably and ethically. Is that garden furniture made from illegally logged rainforest teak rather than the FSC (Forest Stewardship Council) variety from sustainable plantations? Can you trust the supplier to have honestly labelled it as such? As various scandals in recent years have highlighted, what certain suppliers say about their products is not always strictly true, and when the deception hits the headlines then most members of the public will remember the retailer’s name – not the lesser known supplier.

    Our global world is also highly competitive: consumers are increasingly demanding with across to cross-border ecommerce commonplace, while product life cycles grow ever shorter. Add to that concerns over rapidly changing business-to-consumer (B2C) dynamics as well as the total “cost to serve” – as competition and consumer demand increase pressure on high-level services – and the need for good supplier relations becomes ever more significant.

    Implementing Supplier Relationship Management
    Supplier relationship management is all about strategic collaboration with suppliers to add value, minimise risk and ensure consistent and compliant governance. Any SRM implementation should start small with a pilot project involving a handful of key strategic suppliers before embarking on more significant developments.

    Implementing an SRM process is made a lot simpler when following a step structure, such as in the following checklist.

    1. Define objectives and priorities.
    2. Analyse the activities involved, process change needed and the necessary toolkit.
    3. Identify and define the necessary roles and responsibilities.
    4. Assess the maturity of your procurement department and their ability to cope with change.
    5. Establish the internal competences needed and give training where required.
    6. Identify suppliers and their core competencies.
    7. Segment suppliers: identify the strategic with whom to develop SRM.
    8. Examine existing and needed technology.
    9. Establish parameters for measuring and improving supplier performance.
    10. Establish systems to identify and mitigate risk.
    11. Select meaningful KPIs relevant to both you and your strategic supplier.
    12. Ensure both partners in the relationship are committed and all stakeholders throughout the
    13. Don’t expect a one- size-fits all solution: relations with each strategic supplier may take on a organisation aligned unique character.

    Overcoming Obstacles

    Putting a set of standardised, open and transparent SRM tools in place, plus a rigorous and consistent management approach can help improve the chances of SRM success. But there are still several pitfalls to consider and avoid when setting up SRM, three key ones are:

    1. Placing too much focus on costs rather than value
      Effective SRM demands attributes, such as change management, team leadership, and the long-term planning necessary to develop lean and agile supply chains. Too much preoccupation with short-term cost control and it’s back to those old adversarial combats with buyers pushing down the price while disgruntled suppliers watch their profits evaporate.
    2. Lack of specific SRM competencies and skills
      While the right software tools can ease SRM implementation, it is more than just an electronic filing cabinet. The success also depends on the people and processes across both supplier and buyer organisations. For example, this new way of operating may be challenge for those transitioning from traditional procurement departments that have previously been responsible for running sourcing projects and have specialised in taking an adversarial approach to negotiation. Extra training will help to combat any of these sorts of issues.
    1. Non compatible strategic objectives
      SRM also requires that both supplier and buyer adopt a complementary strategy: developing long-term collaborative partnerships will not work if either side is still in combative mood looking for weaknesses to exploit. The decision to introduce and develop SRM needs good executive leadership and agreement from selected strategic suppliers so that they, too, are comfortable with such an approach.

    Conclusion
    There are lots of benefits to supplier relationship management, as well as more sustainable processes and improved customer satisfaction, they generate better access to technological innovations, improved on-time delivery, reduction on inventories, higher responsiveness to customer demand and more product innovation opportunities.

    SRM is not a quick-fix solution, it is a long-term game and involves a strategic approach to business improvement. Success requires commitment and persistence. Especially, in the global economy with ever-increasing competition, where securing a reliable and supportive supplier base is essential: if businesses do not become the “customer of choice” then it is very likely that one of their competitors will. Equally, if procurement departments maintain a traditional adversarial stance, the performance management is poorly monitored or contracts are buried deep in a filing cabinet, then the likelihood of supply chain breakdown increases – and brands will have no excuse when the ethical failings of their suppliers become public knowledge and damage their hard earned reputation.

  • Australians curb retail spending as household debt balloons

    Australians curb retail spending as household debt balloons

    Australia’s economy may have achieved a remarkable winning streak, avoiding a recession for 25 years, but there are now clear signs that the consumers who have driven much of the growth are running out of puff. With cash interest rates at a record low and house prices near record highs, the nation’s household debt-to-income ratio has climbed to an all-time peak of 189 percent, according to the Reserve Bank of Australia (RBA).

    Australia’s household debt-to-income ratio has climbed to an all-time peak of 189 percent, according to the Reserve Bank of Australia (RBA). That means there are an increasing number of people who have little cash for discretionary spending – on everything from cars to electrical appliances and new clothes – as their pay packets get consumed by large mortgages and high rental payments in the country’s red-hot property market.

    And it’s not as if a sudden plunge in home prices would help – it might well expose and exacerbate the problem, at least in the short run, squeezing many who have bought into the frothy market with high mortgage repayments and little equity in their homes.

    “We are seeing a considerable spike in stress even in more affluent households. Large mortgages, big commitments but no income growth,” said Digital Finance Analytics (DFA) Principal Martin North. “Stressed households are less likely to spend at the shops, which acts as a drag anchor on future growth.”

    North estimates a record 52,000 households risk default in the next 12 months and that 23.4 percent of Australian families are under mortgage stress, meaning their income does not cover ongoing costs. That compares with about 19 percent a year ago.

    “People are up to their ears in mortgages,” said Brad Smith, a car sales consultant at MotorPoint Sydney which has seen a stark slowdown in sales in the past six months. “They are all on a budget. Everyone’s got all their money in houses, that’s how it is.”

    Australians are also facing a cash crunch because price inflation in essential items such as food, electricity and insurance is accelerating at a 3.4 percent annual rate at a time when Australian wages are rising at their slowest pace on record, just 1.9 percent in the year to March.

    Meanwhile, growth in retail sales, personal loans and luxury car sales are all at multi-year lows, suggesting the household sector – nearly 60 percent of Australia’s A$1.7 trillion ($1.3 trillion) economy – is under severe strain.

    RETAILING PAIN

    Weak consumer spending is proving a huge drag on retailers’ performance, with shares in furniture and appliance chain Harvey Norman and electronics shop JB Hi-Fi both trading near one-year lows.

    Retail sales have hardly grown in the past few months. Even online sales have slowed, with all major categories including homeware, games and toys, daily deals and takeaway food shrinking in April, according to the NAB Online Retail Sales Index.

    Car sales have flattened this year after solid growth in 2016 while sales of luxury cars and sports utility vehicles are at a four-year low.

    For consumers such as Sydney resident Marie-Aimee Guillermin, there’s little ‘play money’ left after stepping into Sydney’s housing market with a A$1.4 million 3-bedroom house last month.

    “We thought once we had the house we could take our foot off the brake a little bit but now that we have it I feel even less certain in terms of stability and financial security,” she told.

    “So whether we’ll end up spending a bit more on clothes and restaurants and going out and what have you I don’t see that happening.”

    Lees ook:

  • Three in Four Consumers Frustrated by Inconsistent Retail Experience

    Three in Four Consumers Frustrated by Inconsistent Retail Experience

    Not only do today’s shoppers expect a great service experience, they want it to be integrated and harmonised across channels. According to recent research by Manhattan Associates, three quarters of shoppers say they expect a consistent cross-channel shopping experience, yet just 14 percent claim to enjoy such an experience today. With 82 percent stating they expect their online experience to be duplicated in store, and 78 percent saying they feel they know more about the products and services in store than the store associate, it is clear where the consumer thinks retailers need to invest.

    Furthermore, half of the consumers surveyed said they would like store assistants to make personal recommendations in the same way a website already recommends products they might like, indicating that personalisation within every selling channel – not just online – is high up on the consumer’s agenda.

    The rewards for those retailers able to effectively provide customers with a consistent service experience across channels is potentially huge, with 56 percent of the consumers surveyed stating a seamless service capability as the main reason they would be willing to commit their loyalty to a retailer.

    Other key findings include:

    • 45 percent of consumers stated “a reward scheme that gives you exclusive promotional offers” and 35 percent stated “fast delivery” as key reasons they would stay loyal to a retailer
    • 64% of consumers consider “free delivery” as the most important fulfilment option a retailer should offer as part of their online service proposition, ahead of any chargeable option
    • 47 percent view “product advice” and 33 percent of consumers consider “checking stock availability” as the most important aspects of the service provided by store assistants
    • Regarding reasons consumers are more likely to go to a physical store rather than buying online, 62 percent of respondents said “to get the product there and then” and 53 percent stated “to try and feel the products before buying in-store”
    • As to what consumers would like to happen when they go into a store and the product is not available on the store shelf, 42 percent said “they would like the store assistant to check if it is available in a store nearby where they can collect it from” whilst 19 percent stated “they would like the store assistant to order the product for them and have it delivered to their home or to the same store for collection”

    Raghav Sibal, managing director, Australia and New Zealand at Manhattan Associates, commented, “Consumers clearly have an expectation of what a retail experience should look like in today’s digital world and are willing to offer their loyalty in exchange for retailers able to meet that expectation. Now is the time for retailers to invest in technologies that keep them ahead of the curve and take the appropriate steps required to close the gap between customer expectation and today’s reality. Those that do will be the ones that will thrive in 2017 and beyond.”

    The research by Manhattan Associates questioned 2,000 adults in Australia about their shopping experience and expectations.

    Lees ook:

  • Hong Kong retail sales rise for second consecutive month

    Hong Kong retail sales rise for second consecutive month

    Hong Kong’s retail sales rebounded slightly in April for the second straight month following a two-year period of contraction, with an industry expert predicting that growth for the whole year could hit 1 per cent.

    The latest figures released by the Census and Statistics Department yesterday showed that total retail sales in April edged up 0.1 per cent year on year to HK$35.2 billion.

    That was drastically lower than the 3 per cent rise confirmed for March – which ended a 25-month slump dating back to February 2015.

    ooking at the figures for April, consumer durables recorded the biggest year-on-year decline of 12.8 per cent. The dip was fuelled by an 18 per cent plunge in sales of electronic goods and photographic equipment.

    Motor vehicle sales also fell in April, by 13.9 per cent, in stark contrast to a 16 per cent rise the previous month spurred by a last-minute buying spree for electric cars ahead of the cancellation of a tax waiver for the vehicles.

    Retail Management Association chairman Thomson Cheng Wai-hung said sales of jewellery and luxury watches would also remain sluggish.

    “We don’t see any trend pointing to [the sale of] these expensive items picking up at any time,” he said.

    Setting aside these negatives, Cheng said the April figures were quite positive, with most categories recording modest growth.

    The exception was supermarket sales, which dropped 0.6 per cent.

    “A lot of Hongkongers travelled overseas during the Easter and Ching Ming holidays … This affected livelihood-related sales,” Cheng said.

    Asked if the Labour Day holiday – known in mainland China as the “golden week” – would lead to better figures for May, Cheng said association members who responded to a survey on sales over that period were mostly disappointed.

    The likely visit of President Xi Jinping for the July 1 handover anniversary would also turn some mainland visitors away due to the inconvenience caused by tight security measures, he said.

    We cannot guarantee there will be growth this year, but we see the market starting to stabilise. Thomson Cheng, Retail Management Association chairman

    But for the whole year, the association forecast the value of sales would remain the same as last year, give or take 1 per cent.

    “We cannot guarantee there will be growth this year, but we see the market starting to stabilise,” Cheng said.

    If local demand, which accounts for 70 per cent of all sales, remains robust, a rebound of inbound visitors would translate into a positive sales outlook, he said.

    Statistics from the Tourism Board showed that visitor arrivals in April picked up 1.9 per cent year on year, and 3.2 per cent for the first four months of the year.

    The recent growth provided much-needed relief to the tourism industry, which last year weathered a 4.5 per cent drop in inbound visitors.

    A government spokesman said the near-term outlook depended on how fast the tourism sector recovered and local consumer sentiment amid likely US interest rate rises and external uncertainties.

    Lees ook:

    Lees ook:

  • Malaysia’s online sales set to quintuple by 2025, fashion leads

    Malaysia’s online sales set to quintuple by 2025, fashion leads

    Online sales in Malaysia, which is currently just above 1 per cent of total retail market, is likely to quintuple by 2025, says a report. The rise is due to online outpacing store-based retail, especially fashion sales. The Malaysian government has launched a strategic roadmap for e-commerce and rolled out several initiatives in partnership with the private sector.

    According to the Malaysia B2C E-commerce Market 2017 report by yStats, more than 50 per cent of online shoppers in Malaysia are less than 29 years old. Meaning, the continued maturity and wealth growth of this demographic sits well for the increase of online sales, said yStats.

    Moreover, Malaysia’s internet penetration is one of the highest in the region with approximately one third of internet users make purchases online, said report authors. The product category with the largest share of e-commerce sales in 2016 was clothing and footwear.

    Complementing the government-backed e-commerce development projects, other factors encouraging the growth of online retail in Malaysia are the ready infrastructure and favourable demographics in the Asian nation, said the report.

    In March, Malaysian Prime Minister Najib Razak launched a digital free trade zone along with Jack Ma, founder and executive chairman of Alibaba. At the time, the Chinese e-commerce company said it would set up a logistics hub in Kuala Lumpur that will serve as a regional distribution hub.

    It will be part of a digital free trade zone set to be developed close to the Kuala Lumpur International Airport.

    The e-commerce competition landscape in Malaysia is led by online marketplaces. Lazada.com.my and 11street.my were the most visited e-commerce websites in Malaysia in February 2017, according to a ranking included in the report.

    Lees ook: