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  • E-commerce explosion driving worldwide warehouse Expansion

    E-commerce explosion driving worldwide warehouse Expansion

    Global analysis firm ABI Research has found that the global Warehouse Management System (WMS) market will be worth US$5 billion by 2025, growing at a CAGR of 13.9 per cent.

    The period will see a warehouse boom with some 57,000 more distribution centres in operation by then than last year. The continued growth of the e-commerce market and rising customer expectations are putting enormous pressure on warehouses to execute more rapid and flexible deliveries. This is driving investment in warehouse facilities, automation technologies, and warehouse management systems to coordinate and optimise operations.

    “The warehouse is becoming the engine room of the supply chain and is, therefore, a focal point for investment from retailers, manufacturers, and logistics service providers,” said ABI Research principal analyst Nick Finill.

    “As the warehouse technology ecosystem becomes increasingly complex, supply chain operators require more sophisticated management systems that can orchestrate the high volume and variety of intelligent, connected devices and systems within their facilities, as well as the flow of inventory.”

    The firm finds that as the e-commerce boom grows in and extends beyond the established economies of China, Japan, and Korea, the Asia-Pacific will experience the highest growth of warehouse facilities and WMS revenue, becoming the largest market for the software by 2023. The rapid adoption of WMS is also expected in the emerging economies of the Middle East, Africa, and Latin America. Europe and North America will experience strong growth as supply chain operators increase spending on upgraded software systems.

    WMS spending will also vary according to industry verticals. The retail, food and beverage, and manufacturing sectors will be responsible for the highest growth rate as they catch up with more mature verticals, such as logistics service providers.

    ABI’s data suggests AI-driven innovation from WMS market leaders such as JDA Software, High Jump, and Manhattan Associates is enabling substantial flexibility and functionality in WMS and Warehouse Execution Systems, an increasingly important orchestration layer linking high-level management with connected machines. At the device and machine level, greater automation is creating demand for more sophisticated Warehouse Control Systems from major automated material handling solution providers such as Bastian Solutions, Dematic, and Honeywell Intelligrated.

    “The increasing velocity of goods through the supply chain is driving demand for real-time decision making and optimisation,” said Finill. “As the margin for error in the warehouse decreases, AI and ML-enabled WMS solutions are becoming imperative for warehouses that rely on speed, efficiency, and intelligence to remain competitive.”

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  • South Korean retail sales surged during Holidays

    South Korean retail sales surged during Holidays

    The unprecedented extension of the Japanese Golden Week holiday to 10 days has seen a surge in tourists visiting South Korea.

    The holiday was extended to mark the enthronement of Crown Prince Naruhito from the usual April 29 to May 5 period.

    Duty free businesses saw big jumps in sales during the period compared to the previous year. Lotte Duty Free in Sogong-dong saw a 45 per cent sales increase, while Shinsegae Duty Free in Myeongdong saw an 80 per cent year-on-year increase.

    Hotels in the main commercial districts of Seoul also saw double-digit occupancy boosts during the period above Golden Week figures for last year.

    Tourism from China was also up 25 per cent during the period, although this rise was lower than in the first four months of this year.

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  • Indonesian Retail Sales Down Last Month

    Indonesian Retail Sales Down Last Month

    Indonesian retail sales grew by 10.1 percent in March following a 9.1 percent increase in February, according to central bank survey data.

    The strong March performance was underpinned by sales of apparel along with automotive parts and accessories.

    However, the bank’s survey predicted that Indonesian retail sales growth will rise by a more modest 5.7 percent in April, the same figure it projects for the full year.

  • Omnichannel startup CitiXsys Opening Offices

    Omnichannel startup CitiXsys Opening Offices

    Fresh from a US$20 million funding injection, omnichannel-solutions startup CitiXsys plans to open six offices across Asia, eyeing region-wide expansion. CitiXsys’ new offices will be located in Singapore, Jakarta, Ho Chi Minh City, Manila, Bangkok, and Kuala Lumpur.

    “Southeast Asia offers an ideal business climate today, with massive opportunity in this important region,” said Kamal Karmakar, CitiXsys CEO.

    “Purchasing a retail-management solution is one of the most important decisions a retailer can make since the future of the entire business hangs on its success.”

    Southeast Asia is the world’s fastest-growing internet region with the e-commerce market expected to reach US$53 billion by 2023.

    “By opening up more local offices and bringing on local product expertise we will be able to better support the needs of our fast-growing client, partner, and distributor base in Southeast Asia,” added Paula Da Silva, executive VP of global partnerships and alliances at CitiXsys.

    “Already this year, the CitiXsys channel partner ecosystem in this region has grown by 30 percent, signaling a need for solutions designed to complement the way retail works in Asia today.”

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  • Little Dip in Hong Kong Retail Sales Last Month

    Little Dip in Hong Kong Retail Sales Last Month

    Hong Kong retail sales in March slipped by a negligible 0.2 percent, a slower decline than the 1.6 percent of January and February combined.

    But figures from the Census and Statistics Department show first-quarter retail sales were still down 1.2 percent year on year.

    After netting out the effect of price changes over the same period, the provisional estimate of the volume of retail sales in March decreased by 0.8 percent compared with a year earlier, and for the first quarter by 1.6 per cent.

    March’s decline was driven largely by the watches, jewelry and valuable gifts sector, which fell by 2.6 percent, and apparel, down by 2.3 percent. Sales of electronic goods fell by 15.6 per cent, of optical shops by 5.7 per cent and of books and stationery by 2.5 percent.

    Conversely, sales by supermarkets increased 3.3 percent, of medicines and cosmetics by 2.5 percent, in department stores by 5 percent, and of food, liquor and tobacco by 3.6 per cent.

    Footwear and accessories sales rose by 7.1 percent, furniture by 4.3 percent and Chinese drugs and herbs by 1 percent.

    A government spokesman said the decline in Hong Kong retail sales in March “reflected the cautious consumption sentiment amid various external uncertainties”.

    He said that looking forward, retail sales business will likely continue to be affected by various external uncertainties in the near term, but the largely stable labor market and the sustained growth in inbound tourism should provide some support.

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  • Suning.com’s Online Sales Soars

    Suning.com’s Online Sales Soars

    Suning.com’s first-quarter online sales soared 40.87 per cent as the company’s smart-retail strategy continues to drive the rapid growth.

    Operating income of RMB 62.2 billion (US$9.2 billion), represented a 25.44 per cent increase on the same period last year. First-quarter net profit was RMB 136 million.

    In a statement, Suning.com said during the first quarter of this year, the overall domestic consumer market in Mainland China still exhibited potential for growth.

    “Despite the softer market environment, Suning’s online and offline businesses maintained relatively rapid growth.”

    Off-line, Suning continued its large-scale expansion, its network comprising 9758 self-owned stores and 2571 franchise stores as at March 31. A standout was the Redbaby store, whose sales increased by 15.7 per cent year on year.

    “In the online market, with the enhanced industrial synergy and the improved efficiency brought by resource integration, the growth rate of Suning’s sales clearly outpaced the industry average,” the company said.

    During the quarter, the company set up five major product groups including household appliances, consumer electronics, FMCG, clothes and accessories, and international items to streamline product management.

    In the FMCG sector, Suning strengthened its brand and achieved dual online-offline growth through centralised procurement, purchasing directly from the manufacturer and strategic cooperation, which helped grow its network of offline stores.

    “In the same period, Suning has further optimised the supply chain management of online and offline stores through the acquisition of 37 Wanda stores, marking a significant success for Suning’s all-categories product portfolio operational strategy.”

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  • Sephora Hong Kong plans Eight More Store Openings

    Sephora Hong Kong plans Eight More Store Openings

    Sephora Hong Kong has confirmed not one, but eight stores in its return to brick-and-mortar retailing in the territory – but shoppers will have to wait until August for the first outlet to open.

    As previously reported, the LVMH-owned chain will open a 4200sqft store in IFC Mall after a 10-year absence from the city.

    In an announcement confirming its plans, Sephora Hong Kong says it will open a second store at Windsor House in Causeway Bay in the fourth quarter of this year and expand its online offer.  Six more stores will follow over a three-year timeframe, their locations as yet not revealed.

    In a statement, Benjamin Vuchot, president of Sephora Asia, said the company currently operates in 12 countries and during the next three years sees its retail presence expanding by almost 50 per cent across Asia.

    “Hong Kong, being strategically located in the Greater Bay Area, allows us to meet the growing demands from Hong Kong consumers, as well as tourists from Mainland China and Southeast Asia,” he said.

    “We believe that Hong Kong will be a key market … giving Sephora the opportunity to amplify global beauty trends locally, elevate the in-store retail experience and to bring in digital touch points within the brick-and-mortar format to create a virtuous customer centric cycle.”

    Sephora said the retail landscape in Hong Kong has changed significantly over the 10 years since Sephora last had a store there.

    “Conventional retail with a physical presence has proven higher chances of winning in a market with strong digital development. Moreover, the re-launch of Sephora brings to Hong Kong’s department store-focused retail landscape a much-needed prestige retail chain for an authentic omni-channel experience,” the statement said.

    Sephora Hong Kong plans to make beauty “more personalised, fun and interactive” upon its return, allowing customers “the freedom to experience products that work for them, learn tips and tricks, as well as to have access to unbiased beauty services from beauty advisors”.

    The company plans more than 40 brands of cosmetics exclusive to Sephora stores in the city, along with its own in-house label Sephora Collection. It has promised to include local Hong Kong brands in its offer as well, over time.

    Digital innovation will play an integral role in Sephora’s traditional retail experience, with vending machines to be located in stores to support the Beauty Pass loyalty program, an app powered by member insights to drive seamless customer service, a digital skincare consultation for immediate and accurate recommendations, and the opportunity to go online to book in-store makeovers.

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  • South Korean E-Commerce Under Pressure

    South Korean E-Commerce Under Pressure

    Mounting losses in the South Korean e-commerce industry are calling local business models into question. Competitive pricing and fast delivery capacities have made the industry an ascendant phenomenon in the territory, with the purchase of a whole spectrum of consumables now possible via mobile phone. The industry hit a record high of KRW111.8 trillion (US$98.4 billion) in transactions last year, putting the economy among the top five e-commerce markets worldwide.

    But gigantic operational losses have emerged out of stiff competition on price and logistics set-up costs. Korea’s top e-commerce firm Coupang shattered its own records with KRW4.42 trillion ($3.8 billion) in sales last year, but made a staggering KRW1.1 trillion ($950 million) operational loss.

    While Coupang’s deficits have been widening for nine years, CEO Kim Beom-seok stubbornly insists the losses are planned and says investment will continue.

    “We have pushed for massive investment to impress our customers,” said Kim, “and will continue to aggressively invest in technology and infrastructure.”

    The firm has single-handedly changed the outlook for South Korean retail and put brick-and-mortar operators on red alert – but has yet to prove profitable.

    Rival operator Tmon faces a similar issue, with its KRW492 billion ($425 million) sales last year sad-tromboned by KRW125.5 billion (108.4 million) in operating losses that have been accumulating since the year 2000, now standing at KRW770 billion (665.5 million) in total. The firm’s latest nose dive was attributed to “investment in core technologies”.

    “Customers frequently visited our app on expectations for new products and promotions changing every hour, which raised their royalty and created a virtuous cycle,” said Tmon CEO Lee Jae-hu. “We will continue efforts to strengthen the market position and seek ways to improve profitability this year.”

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  • Vietnam’s exports to Japan increase rapidly in Q1

    Vietnam’s exports to Japan increase rapidly in Q1

    Elimination of many tariff lines for goods under the CPTPP has helped Vietnam’s exports to Japan increase sharply in the first quarter of this year, according to the General Department of Customs.

    Vietnam’s export value to Japan in the first quarter surged 6.7 per cent year on year to US$4.6 billion, the general department said. Việt Nam became one of three markets gaining an export value in the billions of US dollars to Japan, after the US and China.

    In March 2019 alone, the export value to Japan reached $1.7 billion, a sharp increase of 62.3 per cent month on month and a surge of 2.7 per cent year on year.

    The strong growth in Vietnam’s export value to Japan was attributed to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). According to this agreement, Japan for the first time has pledged to completely eliminate tariffs for the majority of Việt Nam’s agricultural and seafood products exported to this market.

    That meant Japan immediately abolished 86 per cent of tariff lines, equivalent to 93.6 per cent of Việt Nam’s export value to Japan, and then this figure will increase to 90 per cent of tariff lines within five years.

    On the other hand, the Việt Nam-Japan and ASEAN-Japan free trade agreements have created advantages in tariffs for some of Việt Nam’s seafood products exported to Japan.

    About 62.5 per cent of Vietnam’s total goods items exported to Japan in the first quarter gained strong growth compared to the same period last year, according to the general department.

    The major export products to Japan included textiles (export value of about $900 million), means of transport and spare parts ($630 million), machinery and equipment ($450 million) and seafood products ($306 million).

    Especially, the fertiliser exports to this market had a sudden growth in the first quarter of 2019 to 8,126 tonnes, earning $3.7 million. The exports rose up by five times in volume and about 11 times in value year on year.

    In addition, Vietnam saw strong growth in exports of some goods to Japan in the first quarter, including chemical products (up 70 per cent), animal feed and raw materials (up 56.8 per cent), ore and minerals (up 52 per cent), all kinds of steel (up 49 per cent) and plastic materials (up 43 per cent).

    Meanwhile, Japan sharply reduced imports of cassava and cassava products from Vietnam, with a reduction of 99.6 per cent in volume and 98.5 per cent in value over the same period, despite the average export price of cassava surging by 3.3 times to $886 per tonne.

    In 2018, Vietnam’s goods export value to Japan reached more than $18.8 billion. Textiles and garments accounted for the largest proportion with over 20 per cent of the total export value. Meanwhile, seafood, furniture and footwear respectively hold 7.4 per cent, 6.1 per cent and 4.5 per cent.

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  • Healthy jump in Hong Kong retail sales

    Healthy jump in Hong Kong retail sales

    Hong Kong retail sales rose at their fastest rate in more than 30 months in September, underlining the industry’s steady recovery.

    The Census and Statistics Department (C&SD) estimated retail sales totalled HK$35.7 billion during the month, up 5.6 per cent on the same month last year.

    That follows a revised estimate of August’s sales increase of 2.7 per cent.

    For the first nine months of 2017, retail sales are running at a more modest 0.9 per cent higher.

    Even after netting out the effect of price changes year-on-year, sales were up by 5.5 per cent, said C&SD.

    A government spokesman describe September’s improvement as “notable growth”.

    “This reflected the upbeat consumer sentiment and continued improvement in inbound tourism, as most broad types of retail outlets registered varying degrees of year-on-year rises. The performance of retail sales in the near term should continue to be bolstered by the prevailing favourable job and income situation as well as the recovery in inbound tourism,” the spokesman said.

    The recovery was driven by watches and jewellery, with sales up 14.7 per cent, cosmetics and medicines, up 12.7 per cent and department store sales up 9.4 per cent. Supermarket sales rose 2.6 per cent.

    Apparel and footwear sales lagged at just 1.7 per cent and 1.2 per cent respectively, while furniture and homewares were up 5.2 per cent and optical shops by 5 per cent.

    The only major sector to post a decline in sales was electrical goods and photographic equipment, likely to receive a boost in October and November from the launch of new Samsung models and the iPhone X.

  • HKMA grants stored value licences to eight more issuers including PayPal

    HKMA grants stored value licences to eight more issuers including PayPal

    The Hong Kong Monetary Authority (HKMA) said on Friday that it had granted stored value facilities (SVF) licences to eight more issuers including Paypal Hong Kong Limited, bringing the total to 13.

    “We are pleased to see companies with diverse backgrounds offering a variety of SVF products which will enhance retail payment convenience in Hong Kong,” said Howard Lee, Senior Executive Director of the HKMA.

    The implementation of a supervisory regime by the HKMA will strengthen public confidence in using stored value products and services which, in turn, will encourage innovation in the local retail payment industry, Lee said.

    The other issuers granted licenses are 33 Financial Services Limited; Autotoll Limited; ePaylinks Technology Co., Limited; K & R International Limited; Optal Asia Limited; Transforex (Hong Kong) Investment Consulting Co., Limited; and UniCard Solution Limited.

    The city’s de-facto central bank granted the first batch of licenses to SVF issuers such as Alipay Financial Services (HK) Limited in August.

    The Payment Systems and Stored Value Facilities Ordinance started operation on Nov. 13 last year and provided a one-year transition period for application for SVF licences.

    Upon the expiry of the one-year period, it will be illegal for any person, unless being exempt, to issue or operate SVF without a license, the HKMA said.

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  • Yokohama at new Indonesia auto show

    Yokohama at new Indonesia auto show

    Yokohama Rubber Co. Ltd. is gearing up to participate in the new Gaikindo Indonesia International Auto Show 2015.

    The event is scheduled for Aug. 20‒30 in South Tangerang, in Indonesia’s BSD City. Yokohama said it will be represented at the show by its Indonesian sales agent, PT Yhi Indonesia, which twice previously represented the tire maker at the separate Indonesia International Motor Show. Gaikindo is the Association of Indonesia Automotive Industries, and this is its first auto show, according to Yokohama.

    In keeping with the theme of “Delivering the Future,” Yokohama said its booth will feature displays that “appeal to the high driving and environmental performance” provided by its tires’ latest technologies.xa

    Considering the huge demand for eco cars and SUVs in Indonesia, the tire maker said it will display its fuel-efficient BluEarth tires suitable for use with eco cars and the company’s Geolandar line of SUV tires, as well as its flagship Advan brand.

    In addition, the booth will include a panel of Chelsea FC soccer players promoting the tire maker’s partnership, announced earlier this month, with England’s Premier League football club.

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