Retail News CRM

Tag: Retailers

  • Three reasons why Asian retailers are upgrading their e-commerce platforms

    Three reasons why Asian retailers are upgrading their e-commerce platforms

    There is currently an almost endless array of technologies and innovations that Asian retailers can invest in as they look to future-proof their business and meet the expectations of the next generation of customers.

    But when Tofugear surveyed retail executives across Asia as part of its 2019 Asia Digital Transformation Report, it was striking to see that the biggest technology investment priority for retailers was actually e-commerce platforms.

    One in two respondents (53 percent) indicated that they will invest in their e-commerce platform over the next 12 months, while a further 20 percent stated they would do so over the next two to four years. Contrast that to the 2018 edition of the survey, when just one in four respondents said that they intended to invest in their e-commerce platform over the ensuing year. Last year, business intelligence and data analytics were the most pressing investment areas.

    In today’s omnichannel age, it may seem odd for Asian retailers to still invest so heavily in their e-commerce platforms. After all, many retail businesses have already had their online stores in place for some time now. However, here are three reasons why e-commerce is being placed at the top of retailers’ ‘to do list’:

    Tofugear’s digital transformation survey included responses from retailers based in countries such as the Philippines and Malaysia, where marketplaces such as Lazada and Shopee are dominating the online retail scene. With these marketplaces offering sophisticated personalization and often a wide range of fulfillment services, local retailers have had to invest in their own e-commerce storefronts as they mount a fightback.

    When retailers were asked what they thought was the single biggest challenge they are currently facing, one in five mentioned the ability to achieve omnichannel retailing. Consumer expectations have increased dramatically over recent years and shoppers need e-commerce sites to offer functionality such as being able to check stock in specific stores or arranging click-and-collect in any location they prefer.

    At the same time, retailers are also looking to use their stores as local fulfillment hubs for online orders. To do so, retailers need to have a single view of inventory and use a distributed order management system. As part of this investment, retailers are making the necessary upgrades to their websites to accommodate such an omnichannel approach.

    There was a surge in investment in e-commerce platforms just over five years ago – when many retailers transitioned to mobile-optimized sites – but technology and consumer demands have continued to evolve since then. An increasing number of retailers are now turning to emerge technologies such as artificial intelligence to upgrade the customer experience on their e-commerce platforms.

    For instance, visual-search technology is a seamless way for customers to get the appropriate search results based on images of a product they are looking for. AI-driven chatbots and the ability to offer voice-assisted ordering through smart speakers such as Google Home are also being considered by retailers.

    Lees ook:

    Lees ook:

  • New-Generation Honda City Unveil Date Revealed

    New-Generation Honda City Unveil Date Revealed

    The 5th generation Honda City is all set to be launched in India in the next couple of months. We can now tell you that Honda Cars India will officially take the wraps off the new Honda City on March 16, 2020, and probably begin taking bookings for the new car the same day onwards. The launch date of the new Honda City is yet to be confirmed. The all-new Honda City will be quite similar to the Thailand-spec model, which was unveiled in Thailand, late last year. The car will have some India-specific changes incorporated into it, of course.

    he new Honda City gets a sharper design and the front end too wears a fresh new look. There is a thick chrome bar on the grille and the headlamp cluster has been completely redesigned, having a jewel eye design. The front bumper gets a redesign as well and so do the tail lamps, carrying a signature u-shaped element.

    The 2020 Honda City has grown in size as well and is now over 100 mm longer, while the width has increased by 53 mm. The height though is now lowered by a good 28 mm, making it look a bit sportier. Honda has shortened the wheelbase on the new City by 11 mm, despite the overall increase in length.

    There will be 1.5-liter mild-hybrid petrol engine along with a 1.5-liter diesel unit and they will be BS6 compliant, right from day 1. Expect Honda to offer manual and automatic gearbox options as well!

    The Honda City will go up against its traditional rivals, which are the Maruti Suzuki Ciaz, Hyundai Verna, Skoda Rapid, and the Volkswagen Vento.

    Lees ook:

  • Online focus pays off as Sabina sales surge

    Online focus pays off as Sabina sales surge

    An aggressive online focus saw listed Thai lingerie retailer Sabina achieve 14.3 percent sales growth last year.

    Sabina CEO Bunchai Punturaumporn, pictured above, said the company’s performance last year outperformed expectations, despite declining consumer purchasing power due to a slowing economy and falling confidence.

    Sales totaled US$103.5 million and net profit reached $13 million.

    In Thailand, Sabina opened two new stores, at Central Village and Samyan Mitrtown, and home-market same-store sales rose 3.7 percent last year.

    But the real growth engine was online, with sales up 32.3 percent year on year.

    “At the end of last year, Priceza studied online sales and found that lingerie was the best-selling product in the fashion category and that Sabina had earned the highest sales online, especially during the 11.11 and 12.12 shopping festivals held in November and December last year,” said Punturaumporn.

    Last year was the first that Sabina had participated in the shopping festivals. Apart from experiencing online success, the company also developed new lingerie collections it says caters to changing demands and requirements of today’s consumers.

    Outside Thailand, Vietnam was a standout market, with Sabina achieving 25.7 percent year-on-year growth there. Cambodia, Laos, and Myanmar also saw good growth, he said.

    Sabina also manufactures products for European retailers, but that side of its business posted a lackluster result, with sales up a mere 0.1 percent.

    Meanwhile, the company says that last year 37 percent of its products were made in China through sub-contract manufacturing with local factories, the majority 63 percent made in its own Thai factories. But since the coronavirus hit this year, Sabina has migrated some contract manufacturing from Mainland China to Vietnam, spreading its risk factor as well as becoming a base for the Vietnamese market, which has shown strong growth potential.

    Lees ook:

  • Malaysian retailers hit by coronavirus

    Malaysian retailers hit by coronavirus

    Malaysian retailers operating in tourist zones have seen sales plunge in the wake of the coronavirus outbreak.

    Locally headquartered leathergoods retailer Bonia says sales have fallen by as much as 77 percent in one location and were down overall as fewer Chinese traveled to Malaysia and locals avoided crowded locations to reduce their exposure to the virus.

    Besides its own brand, Bonia also operates stores under the Braun Buffel, Sembonia, Renoma and Valentino Rudy banners.

    Aa Bonia spokesperson said sales had dropped 30 percent overall in the first 17 days of February, the peak, so far, of the virus outbreak.

    “Our Genting Highlands outlet has been tremendously affected,” he said. “The key factor is Covid-19, which has made tourist numbers decline, while local consumers are shying away from crowded malls during their weekend outings.”

    Sales at the Genting Highlands store were down 77 percent and at the Pavilion shopping center in Kuala Lumpur by 35 percent, year on year.

    Stores in Johor Bahru and Penang have also been hit.

    Another retailer, Corn In a Cup, has experienced a drop in sales of between 15 and 40 percent, with the worst-affected store the one at Zoo Negara, where daily sales usually run from 200 to 300.

    “We have been operating at the zoo for over 10 years,” he told The Edge. “Never before in history have we only sold one cup of corn in a day.”

    Lees ook:

    Lees ook:

    Lees ook:

  • E-commerce battleground turns to ‘easy returns’

    E-commerce battleground turns to ‘easy returns’

    South Korea’s e-commerce industry, which has long emphasized “fast delivery,” is expanding its services, with competition now turning to offerZ “easy returns”.

    South Korea’s major shopping portal 11st said Monday that it has introduced a service to offset return costs caused by customers exchanging products, in which an insurance company pays for shipping when consumers return a product.

    When customers wish to return products with return insurance with 11st designated delivery service, they will not have to pay the delivery charge.

    However, if a customer returns a free-delivery item, the purchaser must pay for the initial shipping costs incurred by the seller.

    11st introduced services to flagship product lines such as fashion and accessory goods, which are often difficult to purchase online due to the cost of return shipping resulting from color and size exchanges.

    Shipping costs not only contribute to consumer hesitation about making a purchase but also make them hesitate as they might want to exchange a product for another size or color.

    However, with the delivery charges covered, one can shop worry-free.

    According to a report released last year by market-research firm Consumer Insight and Hanyang University’s Retail Research Center, “exchange/return/refund convenience” topped the list with 35.1 percent according to a survey of six aspects of delivery satisfaction.

    Rapid/accuracy, with 16.4 percent, was second.

    The result can be interpreted that consumers consider being able to return goods more important than the speed at which they are originally delivered.

    Coupang Corp, South Korea’s No 1 e-commerce company, is also offering free delivery and free return services to Rocket Wow members.

    In the case of size-sensitive fashion products, the company offers exchanges free of charge for 30 days for rocket delivery products that are purchased directly even if the purchaser is not a member.

    Prior to e-commerce channels, the home shopping industry focused on growth based on “free returns” as its sales strategy.

    “On the part of consumers, fewer hassles or costs caused by returning products are eliminated, and on the part of sellers, more sales can be expected if more frequent purchases occur,” said a source in the retail industry.

    Lees ook:

  • Hong Kong Customs arrest coronavirus profiteers

    Hong Kong Customs arrest coronavirus profiteers

    Two retailers have been arrested for trying to profit from the coronavirus crisis after spot checks by Hong Kong Customs staff.

    In a territory-wide enforcement campaign dubbed Guardian launched on January 27, customs officers have been inspecting retailers selling surgical masks and other items that consumers might buy to protect themselves from coronavirus transmission.

    After 18 days, the operation has seen more than 1900 officers mobilized to conduct more than 12,000 inspections at retail spots in various parts of Hong Kong to ensure protective items sold in the market comply with the TDO and the Consumer Goods Safety Ordinance (CGSO).

    Last week, officers made a test buy of normal saline solution at a Mong Kok pharmacy following suspicions that some pharmacies in the suburb were suspected of engaging in unfair trade practices. Subsequently, one salesman and a director of the company, both aged 30, were arrested on suspicion of engaging in unfair trade practices, in contravention of the Trade Descriptions Ordinance (TDO).

    The officer was sold normal saline in plastic bottles from a display where it was labeled as “0.9% sodium chloride” and “solution for irrigation”.

    “Each bottled in containers of 1000ml, the normal saline was sold at a price of $25 per bottle and five for $100,” said a customs official in a statement. “A self-added leaflet, claiming that the normal saline could be used for hand and floor cleaning, was put on the carton.”

    Given that the description on the leaflet was not in line with the product description on the bottle, it was suspected to be a violation of the TDO.

    Officers seized 23 bottles of normal saline with an estimated market value of about HK$575 (US$74). The product will be tested at the Government Laboratory to establish its composition and safety.

    Customs said it plans to continue Operation Guardian and will step up enforcement actions to combat activities that are in violation of the relevant ordinances.

    “Customs sternly reminds traders not to take advantage of the current situation and not to sell products using unfair trade practices,” an official said in a statement.

    “They must also not sell products with false origins or false trademarks, nor must they sell unsafe consumer goods. Immediate law enforcement actions will be taken and prosecutions will be made with sufficient evidence.”

    Offenders face a maximum penalty upon conviction of a $500,000 fine and up to five years in jail under TDO regulations.

    Under the CGSO, it is an offense to import, manufacture or supply consumer goods unless the goods comply with the general safety requirements for consumer goods. The maximum penalty for that is a fine of $100,000 and imprisonment for one year on fir

    Lees ook:

  • Singapore retail sales flat in December

    Singapore retail sales flat in December

    Singapore retail sales were flat in December, after motor vehicles were removed from the data, rising by a mere 0.1 percent.

    Including motor vehicles, a decrease of 3.4 percent was recorded, but this relates more to the scarcity of Certificates of Entitlement by which Singapore’s government restricts the number of vehicles on the roads. New vehicle sales were down by 24 percent year on year.

    Compared with November, and again excluding vehicles, retail sales slipped by 1.4 percent.

    Singapore retail sales totaled SG$4.2 billion (US$3.2 billion) for the month. Significantly, online shopping accounted for 6.8 percent of that figure, one of the highest rates yet.

    Aside from cars, the worst-performing retail categories were furniture & household equipment down 8.2 percent, and computer & telecommunications equipment, down 6.3 percent. Sales at department stores fell 5.6 percent, and optical goods & books recorded a 1.2 percent decline.

    Categories to post growth included watches & jewelry (up 8.9 percent). Retailers of petrol service stations, medical goods & toiletries, and mini-marts & convenience stores achieved growth rates between 3.1 percent and 5.4 percent.

    Compared to the same period last year, Sales of food & beverage services in December increased by 2.7 percent to an estimated SG$964 million, compared to $938 million in December 2018.

    Turnover of fast-food outlets, cafes, food courts & other eating places, and restaurants

    Increased by between 2 percent and 7.7 percent year on year.

  • Coronavirus may fundamentally change retail across South East Asia

    Coronavirus may fundamentally change retail across South East Asia

    The coronavirus is driving many Asian consumers to shop online – and it could mark the early stages of a long-term fundamental shift in the region’s retail industry.

    As the virus continues to spread, especially in Mainland China, physical retailers are being forced to shutter stores – either by local-government decree or due to a lack of available staff or customers to make trading viable.

    But as the crisis nears entering its second month, consumers still need supplies and many are going online.

    Hong Kong online portal HKTV Mall, has revealed the average number of daily orders on its site last month was 22,400 – up 64.7 percent on January last year and nearly 20 percent on December.

    HKTV Mall’s average daily gross merchandise volume last month was $10.9 million, up 49.3 percent on the same time a year ago, when it was $7.3 million.

    February figures are expected to be higher still with the growth momentum extending into this month and the fact the virus really only began to impact retailers during the second half of January.

    ‘Long-lasting effects’

    Pascal Martin and Veronica Wang, partners at OC&C believe the coronavirus outbreak may have long-lasting effects on the retail industry, especially on the mainland.

    “By forcing many consumers to try grocery shopping online for the first time and to experience the convenience of it, is accelerating the adoption of this channel – providing a structural boost to the growth outlook of new retail grocers like Alibaba supermarket, Hema and JD’s 7Fresh – and at the same time accelerating the relative decline of traditional players,” the pair said in an email to Inside Retail Asia.

    “And once grocery-shopping shifts to online, the entire retail sector may move online at an even faster pace than before, because grocery is the category that requires the most frequent shopping transactions and therefore fundamentally shapes consumer behavior.”

    Their predictions are supported by S&P Global Ratings in a research note issued this week which likened the current shift online to the similar Sars outbreak back in 2003 which was widely credited with kick-starting China’s e-commerce market. S&P said coronavirus would “further the long-term structural shift” to an online economy, according to an AFP report.

    The move to online is not only affecting purchases of essential supplies. Gift Flowers HK, an online florist, has reported Valentine’s Day orders are up by 20 percent this year.

    “Hong Kong has always been slow in shopping online and the events in the past eight months has really shifted people away from brick and mortar stores to online,” said founder Justin Chung.

    Since June, conventional florists have suffered declining sales due to the social unrest, a situation made far worse by the arrival of coronavirus.

    Logistics challenge

    The challenge for online players is delivering products at a time when many people are effectively self quarantining at home to avoid catching the virus. Logistics has become a major headache along with the sourcing of some goods given border restrictions between Mainland China and other territories.

    As of yesterday, HKTV Mall raised the delivery threshold for orders until the end of the month from HK$350 for VIP members and $500 for general members to $800. A delivery fee of $80 (previously $40) will be charged if the total bill fails to fulfill the free-delivery threshold.

    “In addition to this, we are working with our merchant partners to have their stores become our order pick-up points,” said Jessie Cheng, a spokesperson for HKTV mall.

    “As for issues getting products into stock from across the border, we do encounter this issue and the operations of some factories and warehouses are suspended at the moment.”

    There is a broader challenge evident for regional trade, with an increasing number of reports of export orders being canceled due to cross-border logistical challenges and falling sales in restaurants and physical retail stores. New Zealanders were told this week they may expect lower beef and lamb prices in supermarkets as export orders were canceled or cut back. And in the north of Vietnam, there are reports of fresh produce shipments unable to be shipped across the border into China, resulting in appeals for local consumers to buy products to support struggling local growers.

    Restaurant impact

    The impact of coronavirus is clearly being felt across Asia, not just in Greater China. In Singapore yesterday, the Restaurant Association of Singapore said it had written to 24 major retail landlords in the city-state seeking temporary rent reductions for food-and-beverage outlets.

    Some restaurateurs are fearing a reduction in sales of as much as 80 percent during the next three months due to a downturn in inbound tourism (especially from Mainland China) and a teen by locals to reduce going out.

    “Looking at the situation right now, we are hoping at least 50-per-cent rental rebate for the first three months,” RAS president Vincent Tan was quoted by Channel News Asia.

    Tan, MD of foodservice company Select Group, says with rent and wages comprising more than half a typical Singapore restaurant operator’s costs, relief is urgently needed, especially when margins were as tight as 1.7 percent before the virus broke out.

    “If your sales drop by 50 per cent and your margin is about 1.7 percent, you just imagine how difficult we are at this moment,” he said.

    In Thailand, inbound tourism arrivals are expected to decline by between 50 and 60 percent during the next three months as outbound tour groups are banned from leaving Mainland China and most international airlines have canceled or curtailed services to almost all mainland airports.

    HKTV Mall to boost resources

    Meanwhile, HKTV Mall is introducing changes behind the scenes to smooth the ordering and delivery process after customers experienced long loading times and difficulties in checking-out during peak times last month.

    The company will launch a separate “purchase by invitation” platform to direct the heavy user traffic flow on popular products, such as personal health items, away from the main HKTV Mall platform. Customers will need to pre-register for each popular product offered at this new platform and based on the available stock level, a unique code will be allocated on a random basis for inputting to HKTV Mall for purchase.

    The group is working on adding staff and work shifts, strengthening the partnership with existing merchants and recruiting new ones.

    It will also partner with retail chain stores to expand its order pick-up network so as to increase the geographic convenience and available pick-up time slots for customers. At the moment, the Group has already added seven pick-up points from Foodwise, one of its existing merchant partners.

    HKTV Mall will also expand its delivery fleet capacity by increasing outsourced logistics resources, including third-party logistics companies and individuals, to increase the door-to-door fulfillment capacity and thus reduce delivery lead times.

    Lees ook:

    Lees ook:

  • Phnom Penh Megamall launch delayed

    Phnom Penh Megamall launch delayed

    The Phnom Penh Megamall developer has delayed the mall’s launch until the fourth quarter of this year owing to lagging interior design work, according to its marketing representative CBRE Cambodia.

    The 47,000sqm, 11-storey shopping hub is being constructed as a mixed-commercial centre.

    “The delay has nothing to do with market issues,” said CBRE Cambodia MD Ann Sothida. “Companies have expressed their interest and have leased about 70–80 percent of the building’s retail space, with the ninth floor entirely leased out.”

    According to local news media reports, the Phnom Penh Megamall, which is being constructed in the building which used to house a Parkson department store, requires additional foundation works unexpectedly when the project commenced.

    CBRE Cambodia reports 19 buildings in Phnom Penh currently offering 314,000sqm of retail space in total, with an additional 261,746sqm in retail space supply expected to launch this year.

  • How Reliance’s JioMart platform will reshape India’s online grocery market

    How Reliance’s JioMart platform will reshape India’s online grocery market

    Reliance Industries has entered India’s online grocery retailing market via a new e-commerce platform JioMart, which started pilot trials last month in Mumbai.

    Through JioMart, it is planning to offer more than 50,000 products and connect 30 million offline retailers with more than 200 million households across the nation.

    The value chain created by JioMart connects local offline retailers on a large scale with its merchant point-of-sale solution, where it provides user-friendly digital platforms for inventory management, customer care services and other services required by the retailers. JioMart plans to bring in electronics and clothing and footwear under its scope in the near future.

    The food-and-grocery (F&G)sector is tipped to be the next business battle for online retailers in India. Retailers, both domestic and international, have been proactive in their approach towards the rapidly growing online F&G sector in a bid to capture a large customer base.

    GlobalData estimates that the online F&G market in India grew at a compound annual growth rate (CAGR) of 71.2 percent between 2013 and 2018 and is set to grow at a CAGR of 45.5 percent during 2018-2023 as the urban working population is rising in Indian cities and retailers are venturing into non-metro cities. This growth is also supported by the rapidly growing mobile internet and smartphone penetration.

    RIL’s JioMart eyes the massive potential in online F&G retailing, which is estimated to reach US$9.12 billion in 2023. Reliance is known for its disruptive ideas and business approach, and the same can be said for its latest venture, JioMart.

    With its retail wing in cash and carry outlets through Reliance Fresh and Reliance Supermart, and a massive customer base with India’s largest telecom network in the form of Jio, capturing the market is not going to be tough for JioMart.

    As a domestic company, Reliance gets the advantage that Amazon and Walmart-owned Flipkart miss due to the new e-commerce regulations to safeguard the interests of domestic offline retailers in the country.”

    Lees ook:

  • Hong Kong retail sales dropped in December

    Hong Kong retail sales dropped in December

    Hong Kong retail sales in December slumped 19.4 percent, a softer fall than November’s 23.7 percent, but continuing the decline which began with the civil unrest after June.

    For the whole year,  total retail sales decreased by 11.1 percent in value and by 12.3 percent in volume terms (after accounting for price fluctuations) compared with 2018.

    A government spokesman said that Hong Kong retail sales in December continued to decline sharply, as the impact of the local social incidents on consumption- and tourism-related activities remained “severe”.

    “The business environment for retail trade has become even more difficult recently, with the threat of the novel coronavirus infection heavily weighing on inbound tourism and local consumption sentiment,” the spokesman said.

    “The near-term outlook for retail sales depends critically on how the situation of the novel coronavirus infection will evolve.”

    According to figures from The Census and Statistics Department (C&SD) the value of total Hong Kong retail sales in December was estimated at HKD36.2 billion, (US$4.66 billion). After adjusting for inflation, December sales were down 21 percent year on year compared with a 25.5 percent decline in November.

    Listed in terms of their impact on total sales, the worst-performing categories were jewelry, watches, clocks and valuable gifts, down by 36.7 percent, supermarket sales down by 3.1 percent; apparel by 22.1 percent; and department-store sales by 25.3 percent.

    Food, alcoholic drinks and tobacco sales were down by 1.9 percent; electrical goods and other consumer durable goods, by 17.4 percent, other consumable goods not otherwise classified by 14.5 percent; medicines and cosmetics fell 29.9 percent; footwear and accessories by 20.4 percent; furniture and fixtures by 1.4 percent; books, newspapers, stationery and gifts by 14.8 percent; Chinese drugs and herbs by 9.8 percent; and optical shop sales fell 19.3 percent.

    The only category of Hong Kong retail sales in December to show growth was fueled, up by 13.5 percent.

    Lees ook:

    Lees ook:

    Lees ook:

  • Conscious consumers a major threat to fashion and footwear retailers

    Conscious consumers a major threat to fashion and footwear retailers

    Conscious consumers pose “the biggest threat to clothing and footwear retailers in 2020” according to research by GlobalData.

    When asked about their intentions last month, 19.2 percent of UK consumers said they planned to spend less than average on retail products, according to the survey of 2000 nationally representative shoppers.

    “A worrying 48.9 percent of these consumers said they are making a conscious effort to buy less stuff,” said Sofie Willmott, lead retail analyst at GlobalData.

    “Although some shoppers will struggle to keep up this mindful mentality past January, the shift away from spending on non-essential retail products is set to continue throughout the year as consumers prioritize spend on holidays, activities and meals out, and especially as sustainability concerns seep into their consciences.

    “With sustainability becoming a bigger consideration for more consumers, the easiest way they can reduce their impact on the environment is by not buying anything new. Buying second-hand items or reducing the number of clothing and footwear products they purchase is a win-win for consumers who are focused on spending their disposable income wisely while also acting in a sustainable way, but these shifting shopping habits will not help struggling retailers in what is already a challenging and highly competitive trading landscape,” said Willmott.

    Early signs of a new wave of conscious consumers came with the results of discount-fashion retailer Primark. For the 16 weeks to January 4, Primark recorded a marginal decline in like-for-like sales. Willmott says that suggests volume growth will be difficult for clothing retailers to achieve this year.

    “In order to thrive in testing times, it is vital that retailers provide transparency in their supply chains and although years of building a production process with the main aim of providing fast fashion at accessible prices will be difficult to transform into an environmentally sustainable operation, retailers should clearly convey the steps they are taking.

    A brand’s positive environmental stance must be communicated through aspects that customers can interact with. For example, & Other Stories offers 10 percent off a purchase when you bring back an empty beauty container and H&M has garment collection bins in store which customers can donate a bag of clothes to and receive a £5 voucher to use at H&M when they spend £25 or more,” she said.

    “Sustainable clothing pioneer Reformation has taken it to more of an extreme giving their customers the option to purchase ‘climate credits’ such as a credit for an international flight for £22 which offsets the carbon emissions.”

    Lees ook:

    Lees ook:

    Lees ook:

  • Japan retail sales down

    Japan retail sales down

    Retail sales in Japan dropped 2.6 percent during December compared to figures from the previous year.

    The details were released in a Ministry of Economy, Trade and Industry report last Friday, and stood in contrast to median market forecasts for a decline of just 1.8 percent.

    According to an RTT news article, the sales rate was still above a seasonally adjusted 0.2 percent on numbers for November, less than the expected 1.2 per cent gain following a 4.5 percent increase during that month. November sales had dropped 2.1 percent year on year.

    Sales for large-scale retailers were strongly affected with a full 3 percent year-on-year drop, compared to a projected fall of 2.5 percent.

  • Amazon India to use mom-and-pop shops as delivery points

    Amazon India to use mom-and-pop shops as delivery points

    Global online retailer Amazon has partnered with more than 20,000 local “kirana” stores in India to serve as delivery points.

    The move is part of the firm’s “I Have Space” program to build relationships with such stores in 350 Tier 1, 2 and 3 cities within the territory. It reflects competitor Flipkart’s recent investment in its ShadowFax network of neighborhood stores.

    “We believe the recent partnerships are expected to drive Amazon’s momentum across the country’s shoppers and mom-and-pop shops,” read a report by stock research firm Zacks. “Consequently, this will bolster the company’s presence in the retail space of India, which holds immense prospects.”

    Local stores stand to benefit from the initiative from the extra income they may receive as Amazon’s delivery partners.

    The Zacks report notes that Amazon’s stocks have returned just 14.2 percent over the past year, well below the industry’s rally of 22.4 percent.

    Lees ook:

    Lees ook:

  • No respite likely for Hong Kong-based retailers

    No respite likely for Hong Kong-based retailers

    Hong Kong-based retailers will continue to face tough times as domestic and international issues impact the economy according to a leading analyst.

    Anne Ling, an equity analyst at the investment bank and financial-services company Jefferies Group,  says every 10 percent decline in retail sales impacts the earnings-before-tax (EBIT) of Hong Kong retail companies by between 7 percent and 55 percent. Retail sales in October and November fell by about 24 percent and during the first 11 months of last year were down by 10.34 percent.

    “For international brands like Prada, Samsonite and L’Occitane, we estimate the impact at the sales level is not that material [because] Hong Kong [represents] less than 2 percent to 5 percent of sales. However, at the EBIT level (circa 3 percent to 7 percent) Hong Kong has a higher contribution.”

    Ling warns Hong Kong-based retailers are vulnerable to a risk of the further market slowdown from a higher unemployment rate and weaker consumer confidence in the city.

    “In such times, the immediate lever to hand for brands and retailers is to increase cash flow by reducing inventory and staff and/or rental costs. However, over the medium term, we would expect most players to reset or readjust their Hong Kong store networks to avoid over-reliance on tourist spending.

    “We see a need for the Hong Kong and international brands and retailers listed in Hong Kong, which have heavily de-rated in recent years, to review their business strategies and seek out new business drivers, [so] that they remain relevant to investors.”

    Ling says she expects Sino-US tensions to continue while the mainland Chinese government focuses on stabilizing economic growth this year.

    Given that backdrop, Jeffries would favor recommending investment in Hong Kong-based retailers and manufacturers of low-ticket items like staple goods, food retailers and the fast-food segment, as they are more resilient.

    Lees ook: