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Tag: Singapore

  • Businesses latch on to Pokemon craze

    Businesses latch on to Pokemon craze

    IT has only been a week since the official release of Pokémon Go in Singapore, but amid the smokescreen of marketing puns and Poké-themed promotions, businesses across different sectors are already reporting an increase in business activity.

    Businesses are riding on the popularity of the augmented-reality game by dropping digital “lures” near their premises to attract Pokémon – and consequently, game fans (along with their smartphones and their wallets) to their locations, in search of digital critters to “catch”.

    It seems to be working, going by the experience of Ion Orchard, City Square Mall and Resorts World Sentosa (RWS), which have had more traffic of late; Wildlife Reserves Singapore, which runs Jurong Bird Park, River Safari, and the Singapore Zoo, joins the fray this weekend by scattering lures in the three parks.

    The key reason behind the success of Pokémon Go’s integration into businesses’ marketing models comes from the game’s augmented-reality aspect, through which the game’s software interacts with the elements of the real world; this is unlike most other games, in which the gaming activity is confined to the native gaming software.

    Businesses have been quick to bring customers into their stores in the real world by clever placement of “lure modules” – digital devices earned in the game app or bought through the game shop – near their establishments.

    Clement Goh, managing director of Equinix South Asia, said: “The game in itself has definitely blurred the lines between the virtual and physical world. Brick-and-mortar shops can leverage the game by using it as a marketing tool . . . to attract footfall.”

    Desmond Sim, head of CBRE Research for Singapore and South-east Asia, said using lures is a low-cost avenue for businesses to reach out to a targeted group of potential customers.

    “There are very low barriers to entry for this game. It does not cost players anything to start playing the game; for businesses, it doesn’t cost much to buy the lures to use at Pokéstops near their shops.

    It is basically cheap advertising for businesses.”

    Ion Orchard and City Square Mall, owned by CapitaLand Ltd and City Development Ltd respectively, have placed lures and launched promotions to attract Pokémon Go players to their premises.

    Ion Orchard’s marketing campaign, called Go@Ion Orchard, has been effective, said Chris Chong, chief executive of Orchard Turn Developments. “Based on the number of Go@Ion Orchard redemptions, we have witnessed healthy spending by shoppers who visited our mall to catch Pokémon.”

    CapitaLand launched an Instagram campaign called #PokemonSTAR, which combines the gaming phenomenon with its rewards programme, Capitastar. The campaign rewards players with points, which can be used to redeem CapitaLand vouchers.

    Teresa Teow, CapitaLand Mall Asia head of retail management in Singapore, said that even though it has been only a week since the game’s release, business activity has noticeably increased in its malls.

    “During #PokemonSTAR, the average daily signups for Capitastar increased 43 per cent compared to July. We have also seen a 33 per cent increase in followers for CapitaLand’s Instagram account, with about 2,000 posts garnered on #PokemonSTAR.”

    City Square Mall said it had a “healthy turn-out” of visitors to the mall when it released its lures on National Day.

    Aside from also planting lures, Resorts World Sentosa (RWS) offered a 10 per cent discount for admission to its S.E.A. Aquarium and Universal Studios Singapore for every five Pokémon caught within an hour on its premises.

    An RWS spokesman said Pokémon Go has generated “significant footfall”. “The lures we are releasing across the resort every day this week, including Universal Studios Singapore and SEA. Aquarium, brought about increased visitorship into the attractions.

    “Pokémon Go enthusiasts also took advantage of the promotions running until this Sunday, with many prolonging their stay on the resort and patronising our retail outlets and restaurants.”

    Wildlife Reserves Singapore will release more than 500 lures at the nearly 70 Pokéstops in the BirdPark, River Safari and the zoo, and offering prizes such as free annual membership and plush toys to visitors who catch eight unique Pokémon in the parks.

    One of the more creative marketing strategies out there was launched by dating app LunchClick, which has run a Pokémon-themed dating event at which singles form teams to try outdoing each other in catching the Pokémon with the highest number of combat points.

    LunchClick chief executive Violet Lim said the response to the event was “overwhelming” – its 50 available spaces were gone in three days; it has since opened more spaces to meet the demand.

    Local telcos Singtel, StarHub, and M1 have also placed lures at many Pokéstops to encourage gameplay, although they say they have not noticed a spike in data-usage among their customers; this is because Pokémon Go’s gameplay is not data-intensive.

    So instead of offering data at discounted prices, the telcos have instead opted for more conventional marketing techniques such as putting lures out to help players catch Pokémon.

    In spite of this, industry watchers cited by OCBC Investment Research Pte Ltd expect data usage to go up by 500MB per month, up from the normal monthly average of 3.3GB.

    Separately, these industry watchers also expect the current Pokémon Go trend to boost F&B sales and retail footfall, since many Pokéstops are around shopping malls and landmarks.

    There were, however, mixed reviews about the game’s overall effect on businesses in the long run.

    CBRE Research’s Mr Sim was optimistic: “The main effect is that the presence and visibility of these shops would increase. While not all Pokémon Go players would buy from these shops, more people will now know about the shop’s existence – this can only help businesses in the long run.”

    Srinivas Reddy, SMU’s professor of marketing, took a more neutral stance: “Because of the geocoding, some businesses are benefiting from the game – in terms of attracting people to their location. It is still unclear if they are able to convert them into purchasers.”

    Arvind Sethumadhavan, chief innovation officer for the Asia-Pacific for Dentsu Aegis Network, said Pokémon Go will have only a marginal impact on business due to the marketing campaigns being unsustainable – because they hinge on the continued popularity of the game.

    He, like Mr Sim, thinks the craze will fade away, like fads.

    Mr Sim said: “The litmus test of seeing whether this will last is in looking at how the game reinvents itself. After two to four weeks, when Pokémon Go players have ‘caught ’em all’, what incentive is there left for them to keep playing?”

  • Hour Glass Q1 net profit falls amid tough retail environment, slower economy

    Hour Glass Q1 net profit falls amid tough retail environment, slower economy

    The Hour Glass’ first-quarter net profit tumbled 22 per cent year on year to S$8.19 million.

    For the three months ended June 30, total revenue and other income fell 7 per cent to S$149.43 million from the previous year. The decline in revenue reflected the economic slowdown and tougher regional competition, it said.

    Q1 earnings per share slid to 1.16 Singapore cents from 1.49 Singapore cents in the preceding year.

    For the quarter, gross margin edged up to 22.9 per cent from 22.8 per cent a year ago.

    Meanwhile, rental costs were higher due to the expanded retail network.

    The Hour Glass said: “The continuing global economic uncertainty is expected to affect consumer sentiment and the demand for watches and luxury goods. Barring any unforeseen circumstances, the group expects to remain profitable for the financial year.”

  • GSS most attractive to travellers from Japan, China

    GSS most attractive to travellers from Japan, China

    Japan and China holds the potential to be the strongest source market for Singapore during the Great Singapore Sale (GSS) period, which comes to a close this weekend, according to findings by market research consultancy Kadence Singapore.

    Respondents from Japan and China indicated they were “highly likely” to fly to Singapore during the period. The two markets also showed greatest awareness, with 85 per cent and 84 per cent of people, respectively, indicating their knowledge of the retail event.

    Explaining the findings, Patrick Young, Kadence Singapore’s insight director said that the Japanese are more avid travellers in general. The fact that many airlines ply between Japan and Singapore also contributed to the result.

    Additionally, the price of airfares may also be factored in seeing as travellers for the GSS are likely to be deal-savvy individuals. This means the availability of low-cost flights could also affect traveller decision making processes.

    The appointment of UnionPay as the official card for this year’s GSS shows that the Singapore Retailers Association, organisers of the event, are stepping up efforts to lure more Chinese shoppers to the city-state as well.

    However, the retail scene in Singapore has been sluggish, with year-on-year retail sales figures for June, the month when the GSS usually begins, being on the decline over the past two years, according to Singapore’s Department of Statistics.

    Retail business outlook is also dim. While the July-December period is expected to see an improvement of 7 per cent over the April-September period in terms of net weighted balance, the July-December period is predicted to see a sector performance of negative 8 per cent compared to the same time last year.

    Young suggests taking into account “certain nuances between the countries” so that brands taking part in the GSS can better cater to individual markets and thus boost their allure.

    “For the Japanese there is a big focus on omiyage, which is a culture of taking home a souvenir for friends and family. So how much is the GSS tailored to these small but significant items that the Japanese will buy?”

    “It’s not so much tying in with UnionPay or a similar brand, it’s more about having in your portfolio products which can relate to that market,” he added.

    Young also cited the upcoming Singapore Grand Prix as a good example of how an event is able to better lure visitors by going beyond its core demographic.

    The annual racing event attracts not just sporting fans but a large number of international visitors by staging concerts, parties and family activities. The GSS could do something similar to lure arrivals beyond shoppers alone.

    “What else can we do to broaden the GSS beyond sales?” he said.

    GSS 2016 runs for 10 weeks from June 3 to August 14 this year, the longest sale period for the annual event to date.

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  • Rise of the machines: Vending machine culture comes to Singapore

    Rise of the machines: Vending machine culture comes to Singapore

    Bananas, live crabs, make-up and even guitar strings are just a few things that one can find in vending machines around the world.

    While Singapore’s convenience culture is not quite there yet, the country is catching up. We now have the “first vending machine cafe”, launched yesterday at Blk 320C along Anchorvale Drive, which dishes out hot food such as Nasi Goreng Istimewa or Vegetarian Rice Noodle. There are even snacks such as cookies to go along with your meal, and there are tables and chairs where you can tuck into your vending machine meals in comfort.

    Meanwhile, independent bookstore BooksActually made the news when it started selling works from home-grown authors in vending machines in June. The machines have been a hit — three have been launched, and one machine located in the National Museum of Singapore has sold more than 100 books (as of July 11, 2016).

    Kenny Leck, BooksActually director and co-founder, said: “The book vending machines were done with marketing value and publicity in mind than sales. But we have been surprised by the sales generated by at least one of the machines, located at the National Museum of Singapore. It has done well enough for us to replenish stocks once every week.” Sales are a little slower at the machine at the Singapore Visitor Centre, but it still gets stocked every two weeks, he revealed.

    At 10 FairPrice outlets, consumers can find iCash machines, which accept cash on behalf of a cashier. The machine also dispenses change. The system was rolled out late last year, and is also available in 17 Cheers outlets. According to a FairPrice spokesman, you will see these machines in another 16 FairPrice and 13 more Cheers outlets by the end of this year.

    A vending machine that accepts your dirty laundry? Why, yes please. — TODAY pic

    A vending machine that accepts your dirty laundry? Why, yes please. — picLaundry services via the help of a machine are another automated service you will find at some FairPrice Finest outlets, such as at Marine Parade and UE Bizhub. There, you will see a dry-cleaning locker machine called My Laundry Box where you drop off your clothing and pick it up as soon as two working days later. You can even get curtains and stuffed toys cleaned.

    Vending culture

    Some say that Singapore is behind countries such as Japan, which for decades has been renowned for its vending machines (its first was reportedly a cigarette-dispensing machine, which debuted in 1888). Vending machines have certainly become a common sight, no matter where you are in the world. They spit out everything from the mundane (think headphones in many United States airports) to the unexpected such as condoms (Italy).

    Consumer experts say Singapore is moving that way. A Spring Singapore event was held last week for vending machine operators. There, exhibitors gathered to show new technology — such as machines with innovative robotic arms — and to be part of panel discussions.

    Head of SIM University’s School of Business, Allan Chia, explained that Singapore is lagging behind not because of our culture or technology. “The main issue is sales volume, which is linked to our small market size,” he said. SIM University has received research funding to study consumer usage on self-service technologies, particularly in the food and beverage sector.

    He notes that while unusual items have not taken off on a wide scale, there could be a market for more as the machines do fill a certain gap in the retail scene. A shop could be closed, for instance, but a vending machine could offer products at all hours — and without the need for a sales person.

    Ironically, some machines aid in human interaction. FairPrice’s iCash system was installed to optimise manpower, said its spokesman. But ultimately, the system has helped the stores’ checkout staff by allowing them to focus more wholly on the customer, rather than on handling cash.

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  • Singtel Q1 profit grows 2%

    Singtel Q1 profit grows 2%

    Singtel has announced a 2% increase in net profit for the quarter ended in June to S$944 million ($701.5 million), on the back of strong mobile data and cyber security services revenue growth.

    Barring one-off gains in the same quarter last year, profit would have grown 7%, or 9% in constant currency terms.

    But total operating revenue for the quarter fell 7% to S$3.9 billion, largely as a result of mandated cuts to mobile termination rates in Australia, which affected the contributions from wholly-owned subsidiary Optus.

    Group consumer revenue declined 15.6% year-on-year to S$2.19 billion while group enterprise revenue grew 5.1% to S$1.58 billion.

    In Singapore’s consumer market, strong demand for mobile data offset declines in voice, text and roaming revenue. But operating revenue still fell 8.5% to S$558 million. Mobile revenue dipped 1.4% to S$323 million, but fixed broadband revenue was up 3.4% to S$55 million.

    Singtel’s Group Digital Life revenue meanwhile increased 34% due to solid contributions from its ICT subsidiaries. Particularly strong performers included digital marketing arm Amobee and the operator’s Trustwave security-as-a-service unit, which Singtel acquired for $770 million last September.

    Post-tax earnings from the Singtel Group’s regional mobile affiliates meanwhile climbed 19% as a result strong performances from Telkomsel in Indonesia and Bharti Aitel in India.

    The group’s combined mobile customer base grew by 8.2 million during the quarter to 613 million.

    Looking ahead to the full financial year, Singtel currently expects to report a slim 0.3% increase in net profit to S$944 million, but a 7.1% decline in group revenue to S$3.9 billion.

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  • H&M Hong Kong recognised as top employer

    H&M Hong Kong recognised as top employer

    Fashion retailer H&M Hong Kong has received Asia’s Best Employer Brand Award at a ceremony hosted by the Employer Branding Institute, World HRD Congress and Stars of the Industry Group.

    Presented at the Pan Pacific Singapore, the award recognises organisations in Asia for excellence in building their brand as an employer of choice.

    The jury for the seventh edition of the award – leaders, researchers and academicians – judged companies for their development initiatives, employee hiring, training and retention practices, and HR innovation.

    Vivian Chen, Marketing Director of H&M Greater China, accepted the award on behalf of H&M (Photo credit - ASIA BEST EMPLOYER BRAND AWARDS)

    “I am thankful that H&M’s effort to provide a fun, creative and dynamic workplace is being recognised,” says H&M greater China manager Magnus Olsson. “People are our success, and we are committed to being a good employer.”

    He says H&M’s corporate culture is based on a range of values: believing in people, being one team, constantly improving, being straightforward and open-minded, encouraging an entrepreneurial spirit, keeping it simple and being cost-conscious.

  • Michael Kors Asia outperforms US

    Michael Kors Asia outperforms US

    Michael Kors Asia sales are showing healthy growth – at the same time as same-store figures are falling heavily in its US home market.

    Michael Kors has kicked off its new financial year with a weak set of numbers this week.

    Total revenue was virtually flat, just 0.2 per cent higher than during the same period last year., and driven by the opening of new stores which helped push overall retail sales up by 7.6 per cent. That offset a dismal comparable sales decline of 7.4 per cent.

    Michael Kors Asia has been a growth spot, with revenues rising by 74.5 per cent – although this is flattered by the acquisition of the company’s Greater China licensee.

    However, even on an underlying basis, the region is in positive territory, again thanks to the more favorable brand perception from consumers.

    In the US, one of the key issues is that interest in the brand appears to have peaked. This is evident from Conlumino’s brand tracking, which shows that while Michael Kors is not viewed unfavorably by consumers, it is not enjoying the resurgence that Coach has managed to engineer. This domestic woe is evident in the North American numbers which tumbled by 5 per cent, a sequentially worse performance than the previous quarter.

    The worsening of North American results is partly attributable to the stronger dollar which has likely weakened tourist sales at key flagships in the US, and Michael Kors is affected more than Coach in this respect, as it relies more on tourist spend at its larger stores. Nevertheless, given the investment being put into the new digital flagships – such as the one at 520 Broadway in New York – such an outcome is disappointing.

    The numbers from Europe were somewhat better with a 3.3 per cent increase in revenue over last year. Here, the MK brand is less ubiquitous and the company’s new stores, such as the one recently opened on London’s Regent St, are generating good trade in a way that the stores in North America are failing to do. Given that the company has several further European digital flagship stores in the pipeline for this fall, it looks likely that Europe will continue to deliver respectable sales growth across this fiscal year.

    Wholesale decline

    In the continuation of a theme we have seen across many luxury brands, wholesale revenue has decreased – falling by 7 per cent. Some of this is down to the company’s own actions to reduce exposure to channels that do not reflect its brand image, and some is down to the generally weaker traffic to malls across North America which has affected a number of outlets and stores that sell Michael Kors product.

    Looking ahead, while international sales will grow this year, the increase will be offset by continued pressures in North America. As such, revenues will likely be flat which will create pressure on the bottom line given all of the investments the brand is making.

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  • Singtel Group cues video tilt for regions

    Singtel Group cues video tilt for regions

    Singtel Group has launched “The 5-Min Video Challenge” a joint initiative by associates within the group, comprising Singtel, Optus, AIS, Airtel, Globe and Telkomsel.

    Winning content will be distributed and made accessible to over 600 million customers across the group.

    The short five-minute format is ideal for audiences accustomed to viewing content on mobile devices.

    “A pan-regional competition makes a lot of sense as the power of content is its ability to transcend geographical and language barriers,” said Mark Chong, CEO, International, at Singtel. “Our customers will be able to enjoy access to a rich variety of original content created by the most talented content-makers from the region.”

    The competition will be conducted at two levels – local and regional. Each associate will first invite aspiring or experienced local filmmakers to submit five-minute entries based on the theme “Connecting Lives”.

    The entries will be judged on criteria such as originality of content, storytelling and cinematography. Winning entries from the respective associates’ markets will then be judged at a regional level.

    The grand winner and runner-up will be announced at the grand finals, which will be held in Bangkok, on November 21. Cash prizes of $30,000 and $15,000 will be awarded to the grand winner and runner-up respectively.

    The regional winners will also get the opportunity to promote their videos on each associate’s mobile and video platforms to customers in the group’s markets across Asia, Africa and Australia.

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  • SingPost eCommerce growth, investment shape results

    SingPost eCommerce growth, investment shape results

    SingPost eCommerce delivered soaring sales growth – and expenses – in the last quarter.

    Revenue in the three months to June 30 grew a robust 30.9 per cent to S$333.4 million, buoyed by continued expansion of cross-border eCommerce-related activities, and the inclusion of contributions from new subsidiaries.

    But net profit attributable to equity holders declined 23.0 per cent to $35.9 million, due largely to one-off gains from the divestments of Novation Solutions and DataPost HK in the corresponding period last year. Underlying net profit, which excludes one-off items, was down 11.2 per cent, due to investments in business transformation.

    Interim group CEO Mervyn Lim said the company continued to invest in its business transformation and that will take time to contribute materially to earnings.

    “We are focused on executing our strategy to create value from our acquisitions and build an integrated global eCommerce logistics ecosystem. SingPost’s strategy to protect the postal core and grow its eCommerce logistics network remains on track.”

    eCommerce-related revenues from across the postal, logistics and eCommerce segments more than doubled from $73.1 million to $164.1 million and now make up 49.3 per cent of group revenue – up from 28.7 per cent last year.

    “The sharp increase reflects continued expansion in cross-border eCommerce-related activities across the group, as well as the inclusion of new US subsidiaries TradeGlobal and Jagged Peak,” the company reported.

    “Correspondingly, overseas revenues rose to make up 50.2 per cent of group revenue, up from 37.8 per cent last year. Increased cross-border eCommerce-related activities led postal revenues to a 1.5 per cent rise, despite the deconsolidation of subsidiaries divested during the previous financial year.

    International mail revenue was up 30.3 per cent to $65.5 million, while domestic mail revenue declined 4.3 per cent to $64.0 million due to lower volumes.

    Logistics revenue rose 11.9 per cent to $156.7 million, with steady organic growth at Quantium Solutions and CouriersPlease, as well as the inclusion of a new subsidiary under Famous Holdings.

    Revenue growth for the eCommerce segment was due mainly to the consolidation of new US subsidiaries, TradeGlobal from November 2015 and Jagged Peak from March 2016.

    Operating losses from the segment increased from $1.9 million to $3.5 million as contributions from the newly acquired US subsidiaries were offset by continued investments in eCommerce IT and operational capabilities, as well as marketing and sales efforts in the US to build scale. Beyond these direct contributions, the eCommerce segment was an important driver of warehousing, freight, last mile delivery and customer care services for the logistics segment.

    Rental and property-related income decreased 8.6 per cent to $9.7 million due to the loss of retail rental income from the redevelopment of SPC retail mall, which is due for completion by mid-2017.

  • Is Nike golf equipment journey ending?

    Is Nike golf equipment journey ending?

    Nike is phasing out its golf equipment business to focus on shoes and apparel.

    The company has announced it is accelerating its footwear and apparel business and will transition out of Nike golf equipment range – including clubs, balls and bags.

    “We’re committed to being the undisputed leader in golf footwear and apparel,” says Trevor Edwards, president, Nike Brand. “We will achieve this by investing in performance innovation for athletes and delivering sustainable profitable growth for Nike Golf.”

    The global giant said it will continue to partner with more of the world’s best golfers as part of its changed golfing segment strategy.

    “Athletes like Tiger, Rory and Michelle drive tremendous energy for the game and inspire consumers worldwide,” says Daric Ashford, president of Nike Golf.nike golf

    “Over the past year the MM Fly Blade Polo, the Flyknit Chukka and Air Zoom 90 have all connected strongly with golfers. We’ll continue to ignite excitement with our athletes and deliver the best of Nike for the game.”

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  • Scion of Metro store family facing drugs charges

    Scion of Metro store family facing drugs charges

    A member of the family which founded Singapore’s iconic Metro department stores, Ong Jenn, is facing more than half a dozen charges related to the possession, consumption and trafficking of cannabis – which is a Class A controlled drug.

    Ong Jenn

    According to court documents obtained, the alleged offences happened in October 2014.

    For the amount of cannabis Ong has been accused of trafficking, he faces between five and 20 years’ jail and five to 15 strokes of the cane for each charge. For the possession and consumption of a controlled drug, the 41-year-old could be jailed for up to 10 years and/or fined up to S$20,000 per charge. His case has been scheduled for a pre-trial conference on Aug 19.

    Court documents detail how on or before Oct 30, 2014, Ong allegedly conspired with Mohamad Ismail Abdul Majid to traffic cannabis. On that date at about 4.20pm, along Jurong Port Road near bus stop B05, Mohamad Ismail was in possession of one block of “not less than 92.68 grams of… cannabis” and another block containing “385.1 grams of fragmented vegetable matter which was analysed and found to be cannabis mixture”.

    The charges allege that Mohamad Ismail had the two blocks so they could be delivered to Ong.

    At about 1.20pm the next day, in a car parked at Ngee Ann City, Ong was found in possession of a vaporiser, which is an inhalation device. According to the charge sheets, he allegedly intended to use the vaporiser to consume a Class A drug. Ong is also accused of consuming “11-nor-delta-9-tetrahydrocannabinol-9-carboxylic acid”, which is a component of marijuana.

    Authorities found Ong allegedly in possession of one block of cannabis weighing 75.32 grams and one block of cannabis mixture weighing 284.7 grams at a home in Bishopsgate at 2.10pm. He is accused of having these for the purpose of trafficking.

    Ong is represented by a team from law firm WongPartnership, including Senior Counsel Tan Chee Meng. Ong’s lawyers declined to comment as proceedings are ongoing.

    According to his LinkedIn profile, from 2003 until August this year Ong was a Business Development Manager at Metro Holdings, whose core businesses are retail, property development and investment. The retail interests include three Metro stores in Singapore. He’s also the founder of Tompang, a peer-to-peer retail platform operator.

    Metro’s latest annual report lists Ong as a “substantial shareholder” in Metro Holdings as at Jun 13. Ong is the son of the late Jopie Ong Hie Koan, who helmed Metro from 1973 until his death in February this year.

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  • Singtel, Ericsson complete SEA’s first 5G demo

    Singtel, Ericsson complete SEA’s first 5G demo

    Singtel and Ericsson have completed the first live demonstration of 5G prototype technology, achieving a peak throughput of 27.5Gbps.

    The demonstration used Ericsson’s 5G radio prototypes to showcase the capabilities offered by the new networking technology, which also included demonstrating a latency as low as 2ms.

    At the demonstration, Singtel and Ericsson also showcased the world’s first end-to-end low latency live video streaming over 5G.

    Ericsson and Singel signed an MoU last year to collaborate on testing technology candidates for the 5G standard. Last week, the companies completed a live trial of pre-standard License Assisted Access (LAA) technology over Singtel’s 4G network.

    Singtel group CTO Tay Soo Meng said the collaboration is aimed at ensuring the operator’s customers have access to the latest mobile technologies.

    “We strive to upgrade our networks with cutting-edge enhancements, constantly offering our customers all the possibilities that technology brings. Singapore is at the forefront of the most connected cities in the world and now we want to take it to the next level,” he said.

    “5G is very important to the Singtel Group as it will support advanced communication needs. To ensure the Group continues our technology leadership in the mobile communications domain, we are exploring, studying and trialling pre-5G technologies with Ericsson.”

    The operator is preparing for the anticipated standardization of 5G in 2020 by deploying key pre-5G technologies including carrier aggregation, 256QAM and NB-IoT.

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  • Revenues up, profit down for Shilla Duty Free

    Revenues up, profit down for Shilla Duty Free

    The Shilla Duty Free has posted a 29 per cent year-on-year rise in second-quarter revenues for its Korean downtown stores, rebounding from the MERS-ravaged tourism sector at the same time last year.

    Downtown store revenue climbed to KW538.2 billion (US$473.6 million) for the quarter, with growth outstripping the 23.5 per cent increase in the total Korean duty-free market, especially with higher competition after the government issued more licences last year.

    However, Korean airport sales fell 19.2 per cent to KW198 billion, driven by a downturn in Incheon International Airport revenues because of reduced floor space.

    Overseas duty-free revenues (mainly Singapore’s Changi Airport and Macau International Airport) rose by 16.3 per cent year-on-year to KW121.3 billion. However, Shilla posted a KW12.3 billion operating loss on its overseas stores, mainly because of the high cost of entry at Changi. This hit overall profits, which fell 51.4 per cent to KW15.4 billion. Even the Korean downtown business fell 39 per cent to KW27.7 billion.

    A factor in that decline has been the rocketing costs of commissions to Chinese travel retail agents – up from between 7 and 100 per cent to around 23 per cent, according to The Moodie Davitt Report.

    The Shilla Duty Free is the key revenue and profits contributor to parent Hotel Shilla, whose consolidated revenues rose 13 per cent year-on-year to KW954.1 billion, while operating profits fell 36.04 per cent to KW18.7 billion.

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  • Apple makes significant progress on its first retail store in Singapore

    Apple makes significant progress on its first retail store in Singapore

    Apple’s first retail store in Singapore appears to be progressing nicely, with new photos obtained by MacRumors proving that the construction of the store’s glass facade and canopy is now well underway. Apple confirmed in November 2015 that its first-ever store in the Southeast Asia city-state will be powered by hundred percent renewable energy, but did not provide a timeframe for the opening.

    The store location has been under renovation since earlier this year.

    Apple Store coming to Singapore

    The outlet is located in Singapore’s four-story Knightsbridge luxury shopping center.

    Fitness chain Pure Fitness and four other stores inside the Knightsbridge center are set to close next month to make way for an Apple store. In November 2015, Apple posted job listings seeking various positions for the Singaporean store as the company’s retail boss Angela Ahrendts told TechCrunch the following:

    We have more than 900 incredible employees working in our Singapore contact center and are thrilled to begin hiring the team that will open our first Apple Store in Singapore—an incredible international city and shopping destination. We can’t wait to deliver the service, education and entertainment that is loved by Apple customers around the world.

    “The project allegedly has an expected completion date of October 31, 2016, suggesting that the store could open as early as November,” notes the article.

    Apple store Singapore construction

    As per Reuters in November 2015, solar energy developer Sunseap Group will provide Apple with 100 percent renewable electricity from its solar energy systems built atop more than 800 buildings in Singapore, made possible through financing from Apple.

    “The deal will make Apple the first company in Singapore to run exclusively on renewable energy and marks a significant step in its bid to power 100 percent of its facilities and operations worldwide with clean fuel,” as per Reuters.

    Apple’s retail push in Latin America

    As reported, Apple’s retail push in Latin America has just begun with its first store in Mexico City’s Via Santa Fe now being constructed and additional outlets being planned in Guadalajara and Monterrey.

    Apple Stores may be also coming to Chile, Peru and Argentina, as per sources.

    Source: MacRumors

  • How the new Sephora flagship store at Ion Orchard lure shoppers back to brick-and-mortar …

    How the new Sephora flagship store at Ion Orchard lure shoppers back to brick-and-mortar …

    French multi-brand beauty retail giant Sephora opened its new local flagship store at Ion Orchard to much fanfare last Friday. The store sprawls across 10,000sqf on basement 2, and features a refreshed store concept from its previous premises on level 1, incorporating a boutique-within-a-boutique concept and better lighting.

    The queue to be among the first paying customers to enter the store at noon on July 22 started forming at 9.30pm the night before, and there were 1,000 people waiting outside by the time the store was opened. Sephora vouchers of S$100, S$50 and S$10 were handed out to the first 500 people in the queue, while limited-edition gift packs were given to the next 500.

    Among those in the pre-opening queue was 21-year-old sales associate Catherine Low, who had joined the snaking line at 6.15am on opening day. “I decided to join the queue to be among the first in line because I have been lusting after Kat Von D products for a long time and now I can finally purchase it in stores here,” she said. “When I got in I made a beeline for the Kat Von D Everlasting Liquid Lipstick in Lolita. This shade is really popular and I was afraid it would be sold out”.

    The flagship store boasts a global-first for Sephora — a Kat Von D store-in-store that carries the full range of the cosmetics brand that was founded by the celebrity Los Angeles-based tattoo artist, who shot to fame on reality television show LA Ink. Close to 4,000 products from the Kat Von D range were sold on launch day, with the sales of the brand’s popular Everlasting Liquid Lipsticks accounting for half of the sales.

    Kat Von D currently takes pole position at Sephora in Malaysia, Thailand and Singapore since it was launched on Sephora’s local e-commerce site on July 7 and in the retail stores in Malaysia and Thailand on July 16. It has racked up over six figures in sales in these three countries to date.

    The experiential element

    What Sephora nailed was creating a retail environment shoppers are excited to be in. “Sephora Ion Orchard has always been one of the top 10 (outlets), not just in Asia, but in the world, so it was the natural choice to launch the first Kat Von D Shop-in-Shop together with Sephora Ion Orchard’s new home to provide a more vibrant and electrifying retail experience for her many fans,” said Mathieu Sidokpohou, Sephora’s managing director of South-east Asia.

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    Other highlights at the store include professional cosmetics brand Make Up For Ever’s “sushi bar” concept counter, which features a conveyor belt where shoppers can pick up bento boxes of makeup items, exclusive-to-store brands Cover FX and Zoeva and a Made-in-Sephora gondola featuring house-brand products.

    These in-store highlights, together with the prime positioning of the store, which is a stone’s throw from Orchard MRT Station, is set to further strengthen Sephora Ion Orchard’s position as one of the top-grossing beauty retail spots in Singapore and the region. The anticipated footfall at the flagship Sephora store also presents beauty retailers with an opportunity to create a buzz around big campaigns and launches before products are rolled out to the rest of the island. The store is the first in Asia to carry all 100 lipstick and 50 lip pencil shades of cult US cosmetics brand Urban Decay’s highly hyped 10th anniversary collection.

    The beauty retailers spoke to welcome the added experiential retail elements at the store. “The new design layout of two main aisles instead of just one allows more visibility for brands from different categories and allows customers more interaction with the brands, which translates to a refreshing customer experience,” said Chen Jingwen, Nudestix’s brand manager for South-east Asia, which is one of the beauty brands that are exclusively available at Sephora outlets here.

    Avid Sephora customer and 98.7FM DJ Sonia Chew agreed: “I love the new store for the vast amount of brands they have and it’s also got a much edgier and fresher feel to it with plenty of corners to explore in the store — and to discover more goodies to buy! Sephora attracts the true-blue beauty junkies, and I always feel like I have a secret bond with the people who shop there.”

    Naturally, the management of Ion Orchard is pleased with the response as Sephora’s relocation is part of the mall’s strategy to keep the retail scene healthy. “The relocation of Sephora is part of our ongoing efforts to refresh our tenant mix with new and established brands that have their flagship presence at Ion Orchard, and to enhance the existing beauty cluster,” said Chris Chong, chief executive of Orchard Turn Developments, adding that this move had been in the works since last year. “Ion Orchard houses many international brands whose stores at Ion Orchard rank among their top 10 globally for size and sales. Sephora counts as one of these. We have been working with Sephora to delight our shoppers with high-profile celebrity appearances by Sandara Park, David Gandy and Kat Von D, and will continue to partner them in such activities and mall campaigns.”

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