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Tag: Taiwan

  • Daiso Taiwan to face second import ban

    Daiso Taiwan to face second import ban

    Japanese retail chain Daiso Taiwan is expecting to face a second import ban.

    It was earlier slapped with a six-month ban for illegally importing food products from areas affected by the 2011 Fukushima nuclear disaster and selling them with falsified labels of origin in Taiwan in 2015.

    Known for selling food and discounted consumer products, Daiso was also fined NT$41.64 million (US$1.39 million) for falsifying transaction dates to obtain import permits, says Taiwan’s Ministry of Economic Affairs. A total of 694 import application documents were found to be fraudulent.

    Daiso Taiwan may also close its retail branch in Penghu, leaving it with 59 outlets.

    Regarding the new import ban, Daiso Taiwan said on its website it had improved its import procedures since the lapse in 2015.

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  • Sumitomo to increase its stake in Simple Mart

    Sumitomo to increase its stake in Simple Mart

    Japan’s Sumitomo Corporation will buy a 22 per cent stake of Simple Mart, the second-largest supermarket company in Taiwan.

    The trading company will pay around ¥4.5 billion yen (US$41.1 million) for the stake in a transaction set for August, the two sides have agreed.

    Sumitomo has a partnership with Simple Mart’s parent, Taipei-based insurance and retail group Mercuries & Associates, in drugstore businesses in Taiwan. The Japanese investment will help Simple Mart double its store count by 2023.

    Founded in 2006, Simple Mart has more than 600 stores across Taiwan.

    Sumitomo will analyse data from Simple Mart’s online sales and rewards program to identify shopper favourites and improve store systems.

  • Shimamura going on line in Taiwan with an e-commerce platform

    Shimamura going on line in Taiwan with an e-commerce platform

    Japanese clothing retailer Shimamura will soon expand into online sales in Taiwan.

    Its local unit plans to open an e-commerce channel on Taiwan’s two major online shopping sites, Momo and Yahoo Jima, by June, following two decades of brick-and-mortar retail stores.

    Shimamura says its local arm will sell its Closshi brand online and also promote some products not available at existing shops.

    Based in the Saitama Prefecture, the chain opened its first outlet in Taiwan in 1998 and now has 45 branches. It also has 11 shops in China, entering the market in 2012, and started online sales there last year through Tmall.

    With a network of about 2000 stores in Japan, it will begin online sales in its home territory next month through e-commerce sites run by Rakuten and Amazon Japan KK.

  • Taiwan price war could impede 5G development

    Taiwan price war could impede 5G development

    An ongoing price war in the Taiwanese mobile industry could hamper the development of 5G in the market, regulator NCC has warned.

    The regulator has asserted that operators merely competing to lure each other’s subscribers rather than developing innovative business models would not be positive for the development of 5G in Taiwan.

    The NCC’s comments come in the wake of Chunghwa Telecom’s introduction of a TW$499 ($16.85) per month unlimited 4G mobile data and phone call plan, and the subsequent introduction of plans at the same price by rivals Taiwan Mobile, Far EasTone and APT.

    While the NCC insisted that it respects the free market, a race to the bottom n price does not make the admissible market bigger and will not sustain operators through to the commercial launch of 5G services.

    Offering unlimited data and call services at unreasonably low prices will hurt operators’ development in the long term, the regulator added. Operators are already grappling with declining revenue as a result of the price war, coupled with the continued decline in voice revenues.

    The report adds that the NCC does not believe that Taiwan’s operators will be able to follow the models their overseas counterparts have been pursuing to sustain growth – such as expanding overseas or diversifying into original media content – due to Taiwanese operators’ relatively small size and regulatory restrictions.

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  • Chunghwa may need to change bands for ST-2 satellite

    Chunghwa may need to change bands for ST-2 satellite

    Taiwan’s Chunghwa Telecom could be required to the change frequencies it is using for its ST-2 satellite in order to accommodate the use of 5G on the 3.4-GHz to 3.6-GHz frequency range.

    Taiwanese regulator NCC plans to conduct experiments to see if the operator’s satellite system can coexist with 5G servicesv.

    If it is found that there are potential interference problems, the regulator may order Chunghwa Telecom to use different frequencies for its satellite service, which is used by a number of TV channels to transmit broadcast signals.

    The NCC believes that the order would not cause much disruption as it would affect only one transponder of the satellite system.

    The ST-2 contains 10 transponders in the frequency band in question – the C-band in satellite parlance, which uses 3.7-GHz to 4.2-GHz spectrum for downlink and 5.9-GHz to 6.4-GHz for uplink. It also has 41 transponders in the 12-GHz/14-GHz Ku-band.

    The report adds that the NCC may offer compensation to Chunghwa Telecom to cover the costs of the spectrum relocation.

    Meanwhile the Taiwanese government is expected to make its final decision over the use of spectrum in the 3.4-GHz to 3.6-GHz range for 5G by June, while the NCC has established a taskforce to draw up the rules for a 5G auction.

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  • Castelbajac Taiwan planning its third store

    Castelbajac Taiwan planning its third store

    Korean golf-wear brand Castelbajac Taiwan plans to open its third store within the next two months.

    The brand also plans 20 more stores over the next five years.

    The company hopes to make Taiwan a springboard into other new markets across the region.

    “The Taiwanese market would serve as the gateway to expand further into the new countries including Hong Kong, Vietnam and China,” an official from the company said.

    In order to enhance its image as an upscale brand, Castelbajac will open stores only within department stores.

    Castelbajac entered Taiwan in March, with the first store at Taipei’s Pacific Sogo Department Store and the second at Hanshin Department Store in Kaohsiung.

  • Carrefour Taiwan performs well in sagging Asia market

    Carrefour Taiwan performs well in sagging Asia market

    Carrefour Taiwan showed growth for the 13th consecutive quarter while in the rest of Asia first-quarter sales sagged for the French hypermarket operator.

    Taiwan’s like-for-like sales rose by 3.3 per cent.

    A strategic partnership formed with Tencent in China rapidly materialised, says the group, including the launch of a WeChat app.

    However, like-for-like sales in China fell by 6.6 per cent in a competitive environment especially in e-commerce, notably during the Chinese New Year celebrations.

    Sales for Asia overall were down by 4.5 per cent at constant exchange rates and 3.9 per cent like-for-like, in line with trends in previous quarters.

    Overall, Carrefour’s first-quarter sales reached €20.7 billion (US$25.5 billion), up 2.6 per cent at constant exchange rates. On a like-for-like basis, the rise was only 0.4 per cent, impacted by less dynamic markets in Europe, continued deflation in Brazil, strong competitive pressure in the group’s main markets, and business disruptions in Belgium and France.

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  • FamilyMart Taiwan launches digital prototype, including VR

    FamilyMart Taiwan launches digital prototype, including VR

    FamilyMart Taiwan has launched a pilot convenience store concept that incorporates a range of digital technology including robots, VR interfaces, interactive projection screens, smart shelves and blockchain applications.

    A Fujitsu Robopin communication robot is stationed at the entrance to highlight offers and in-store events, while video content about products is projected on to the doors of freezer units.

    Electronic price tags interact with POS registers to update automatically, and product information is available through QR codes and NFC(5) technology built into the price tags.

    FamilyMart says it will study the results of the prototype store with a view to rolling out the technology to other stores.

    FamilyMart Taiwan chairman Yeh Jung-ting says convenience stores need to be modernised according to the world around them, as well in preparation for workforce shortages.

    He says Family Mart still wants locations to be personable, and while there will be fewer staff, the new stores will not be devoid of staff like some 7-Eleven outlets. The idea is to add efficiency to shopping for both customers and staff.

    One of the greatest advantages will be eliminating the time spent ordering stock. Previously ordering goods took around two hours, whereas smart shelves whittle down that time to seconds.

    Ultimately, there will be 17 technological upgrades made by possible by 15 new partnerships.

  • 50 more Chow Sang Sang stores to be launched this year

    50 more Chow Sang Sang stores to be launched this year

    With a focus on urban markets, Chow Sang Sang Holdings International plans to open around 50 stores this year.

    While consumer sentiment improved in the second half of last year for the jewellery retailer, it says a strong recovery is yet to be seen, especially in Hong Kong. Meanwhile, global markets are already anticipating an interest rate rise, and international trade disputes seem to be looming.

    In Hong Kong, the company will continue with the realignment of its network to match the change in consumer patterns and preferences. Overall, it expects to reduce the amount of floor space with no significant changes in the number of shops.

    “In China, increasing sophistication in consumer behaviour provides opportunity for growth via product and brand differentiation. As our online competition heats up, we are putting more effort into offering a seamless customer experience.”

    Turnover last year grew 3 per cent to HK$16.6 billion (US$2.1 billion). The disposal of a part of a long-term holding of shares in Hong Kong Exchanges and Clearing resulted in a gain of $114 million. Including this amount, the group’s overall profit attributable to equity holders increased by 18 per cent to $876 million.

    After dropping for three consecutive years, jewellery retail turnover returned to positive growth, rising 3 per cent. Jewellery retail accounted for 87 per cent of the group’s turnover.

    Operating profit fell by 5 per cent to $902 million, because of an extra gain of $176 million in 2016 resulting from a movement in the price of gold.

    Sales slipped per cent in Hong Kong and Macau, affected by shop closures. Same-store sales growth was down 2 per cent, mainly because of soft turnover of gold in the fourth quarter.

    Sales of gem-set jewellery improved in the second half, and in the last quarter reversed its downward trend since 2016.

    During the year, four Chow Sang Sang shops and one watch branch in the tourist district were closed. However, three new shops and one new watch branch were established in non-tourist districts.

    Despite Macau’s tourist traffic improving, shops in the shopping arcades performed worse than the main-street shop.

    Total turnover in Mainland China rose 9 per cent year-on-year to $8 billion. In RMB terms, this was 11 per cent growth, and same-store sales rose 5 per cent.

    Online sales continued to grow, accounting for about 14 per cent of China sales. Gold products dominated the sales mix.

    At the end of the year, the group had 422 shops in 119 cities. Of these 63 were new outlets, and there were 15 closings. Of the new stores, 28 were set up in shopping malls.

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  • Strong sales growth posted by Hermès Asia

    Strong sales growth posted by Hermès Asia

    Hermes Asia sales grew 11.3 per cent last year to €1.946 billion (US$2.4 billion) as the luxury retailer set a new record for gross retail margin.

    The company said the retail market was improving in Hong Kong and Macau, with the Asian market “pursuing its upward curve” and positive outlooks in Mainland China and South Asian countries.

    Growth was aided by store revamps at Sogo Fuxing in Taiwan, Elements mall in Hong Kong and at Kuala Lumpur.

    Sales in Japan (separated from Asia results) rose 4 per cent to €724.1 million, despite a high comparison figure from last year, which the company described as “a sustained increase” in what is a mature market, citing a selective distribution network.

    Group sales totalled €5.549 billion (US$6.863 billion), up 9 per cent at constant exchange rates. Operating income rose 13 per cent, to €1.922 billion, representing a record 34.6 per cent gross margin, while net profit rose 11 per cent to €1.221 billion.

    “Hermes achieved a new year of historic results, thanks to the quality of our know-how, the success of our creations and especially the incredible commitment of the women and men of Hermes,” said executive chairman Axel Dumas.

    Hermes will ramp up its online offer in the region this year, with a new website scheduled to go live in China at the end of this year.

    Meanwhile, the company said the sale of the Galleria building in Hong Kong’s Central district, which previously housed its flagship store, would likely generate a net capital gain of €50 million this year.

    Leather drives growth

    By category, Hermes’ leather goods proved the strongest performer last year, sales rising 10 per cent globally, reflecting increased production capacity as demand rose for its handbags.

    The ready-to-wear and accessories division grew 9 per cent, driven by the success of new collections, fashion accessories and particularly shoes.

    Sales of silk and textile products grew 6 per cent and of perfumes by 10 per cent, largely due to the successful launch of Twilly d’Hermes.

    Watch sales grew just 1 per cent with what Hermes described as “good sales” in company-owned stores. Other Hermes business lines- jewellery, Art of Living and Hermes Table Arts, grew sales by 11 per cent.

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  • BreadTalk to take Taiwan’s Wu Pao Chun bakeries into China

    BreadTalk to take Taiwan’s Wu Pao Chun bakeries into China

    BreadTalk Singapore says it has formed JVs with a Taiwan company to run bakeries in China.

    BreadTalk subsidiary Shanghai Star Food F&B Management has partnered with Wu Pao Chun Food of Taiwan to run Wu Pao Chun outlets in Beijing, Shanghai, Shenzhen and Guangzhou. Shanghai Star will hold 80 per cent of the Shanghai JV and can own up to 40 per cent of the Beijing, Shenzhen and Guangzhou JVs.

    Both companies expect to form JVs for co-operation in Singapore and Hong Kong later.

    BreadTalk owns 1000 retail stores in Singapore, Mainland China, Hong Kong, Malaysia and Thailand.

  • Royal Dragon Vodka launches with Ever Rich Duty Free in Taiwan

    Royal Dragon Vodka launches with Ever Rich Duty Free in Taiwan

    The Imperial 1L, Good Luck Edition 1L and Luxury Gift Set are part of the Royal Dragon Vodka assortment available in arrivals and departures stores in Taoyuan, Kaohsiung, Taichung and Songshan International Airports.

    Yam Seng Sales and Marketing Director Jesreen Sidhu commented: “Expanding our presence to dynamic duty free markets such as Taiwan is an essential element of our continued success. Royal Dragon Vodka continues to gain strong traction in Asia and we are extremely pleased to partner with Ever Rich Duty Free, where we see great potential for the range.”

    Singapore-based Yam Seng Pte Ltd, a company owned by the Tuli family, was appointed regional TR agent for Royal Dragon Vodka last year. Sunil Tuli has worked in the global DF and TR industry since 1984.

  • RateX expansion plan after latest investment

    RateX expansion plan after latest investment

    Singapore-based payments startup RateX has raised S$3 million (US$2.3 million) in a pre-series A funding round.

    RateX is a free browser extension that automatically provides shoppers with the lowest exchange rate without transaction fee for overseas purchases through e-commerce platforms. It also allows users to automatically apply coupon codes upon checkout.

    RateX seamlessly integrates with such e-commerce platforms as AirAsia, Amazon, Expedia, Lazada, Singapore Airlines and TaoBao. It also works with payment processors Adyen and Alipay. It works as a browser add-on to Google Chrome and Firefox.

    RateX says its users have saved more than S$264,000 through lowered exchange rates and transaction fees, and $396,000 through discount coupons.

    “At a time when online commerce is booming, we want shoppers to pay less for their overseas purchases,” says RateX CEO/co-founder Jake Goh. “We are doing this by solving e-commerce and financial inefficiencies inherent in cross-border commerce. These include markups around transaction fees and foreign-exchange rates.”

    Research firm Frost & Sullivan says Southeast Asia is the world’s fastest-growing internet market. The gross merchandise value of e-commerce will rise to US$65.5 billion by 2021, up from $14.3 billion in 2016. Meanwhile, about 89 per cent of Singapore shoppers use websites beyond Singapore, with the average online shopper in Singapore spending around US$1066 each year on e-commerce transactions.in

    “Our users can now save up to 20 per cent on their purchases.” says Goh. “We are achieving this while bringing affiliate sales to our merchant partners – a win-win situation for all.”

    RateX is currently available for Singapore users on Firefox and Google Chrome desktop browsers. It has also just launched its mobile app (RateS).

    Its latest funding will be used to drive the launch of RateX’s mobile app in Singapore and Taiwan this month, as well as RateX’s expansion into Taiwan and Indonesia this year.

    Participating investors include Alpha JWC Ventures and Insignia Ventures Partners alongside other angel investors.

  • E-business of Giordano International looks good

    E-business of Giordano International looks good

    E-business last year was particularly strong for apparel retailer Giordano International.

    Overall, consolidated sales reached HK$5.4 billion, up 5.2 per cent. Group comparable-store sales and comparable-store gross profit rose  by 5.2 and 5 per cent respectively.

    Consolidated gross margin edged up by 0.1 points to 59.5 per cent.

    Profit after income taxes attributable to shareholders of the company was $500 million,
    an increase of 15.2 per cent over 2016.

    Operating profit rose by 21.3 per cent, with most regions having double-digit growth, particularly Southeast Asia, Mainland China and Taiwan. The group’s business in Vietnam was acquired on July 1.

    With an improved merchandise assortment, Indonesia and Malaysia delivered good results.

    Operating profit increased by 18.6 and 26 per cent for Indonesia and Malaysia respectively. In Singapore, operating profit increased by 31.2 per cent, attributable mainly to the gross margin improving by 1.7 points to 63.7 per cent.

    Unusually strong sales from Thailand in 2016 resulted in an unfavourable year-on-year comparison. Operating profit declined by 20.1 per cent in local currency terms.

    A surge in net profit for South Korea – a 48.5 per cent JV under an independent management team – resulted from better cost control, closure of non-performing stores and enhancement in gross margin.

    Giordano had a network of 2414 stores at the end of December, of which 1268 were standalone outlets. Most stores were in Greater China, South Korea, Southeast Asia and the Middle East.

    Meanwhile, the group’s e-business is directly managed and derived mainly from third-party platforms as well as its own proprietary website in Greater China. This channel generated $310 million in revenue at a 31.4 per cent growth rate.

    Accounting for 93.2 per cent of the group’s e-business sales, Mainland China continued its momentum and recorded a 28.2 per cent increase in sales on various platforms combined.

    Giordano’s e-business in Taiwan was revamped during the year to become its second-largest online presence.

  • No more airport queues for overseas tax refund thanks to WeChat, Alipay

    No more airport queues for overseas tax refund thanks to WeChat, Alipay

    WeChat Pay and Alipay, China’s two biggest mobile payment platforms, have recently forged partnerships with tax refund companies to enable Chinese tourists to obtain rebates on their purchases via their respective mobile apps.

    Within this year, WeChat also plans to offer instant refunds in-store overseas as it competes for a larger share of rising Chinese tourist spending abroad.

    Their strategy is driven by how China has embraced mobile payments faster than any other country and is also the biggest source of outbound travellers. In 2016, mobile payment transactions in China reached US$5.5 trillion, making the country the largest mobile payments market in the world, according to iResearch.

    Both WeChat Pay and Alipay have been expanding their services as mobile payments are used for everything from food delivery, taxi rides and in-store purchases, both on the mainland and abroad.

    WeChat Pay, operated by Tencent Holdings, and Alipay, the payments subsidiary of Ant Financial Services Group, account for a combined 66 per cent of the third-party payments market in China, based on estimates of Analysys International.

    Ant Financial is an affiliate of New York-listed Alibaba Group Holding, which owns the South China Morning Post.

    WeChat Pay and Alipay, along with its overseas mobile payment partners, have estimated a total of 600 million and 800 million users, respectively.

    Late last month, WeChat Pay partnered up with Swiss firm Global Blue to offer an instant tax refund service for Chinese tourists leaving from Madrid airport, while Alipay rolled out a similar service for returning Chinese tourists at Singapore’s Changi airport.

    With those instant tax refund services, users can get their rebates settled in yuan and sent to their WeChat Wallet or Alipay accounts immediately once their tax refund forms are stamped and approved at the airport counter.

    The rising affluence of Chinese consumers and the boom in outbound China tourism also made it attractive for WeChat Pay and Alipay to facilitate tax rebates.

    According to a recent report by the China Tourism Academy and online travel agency Ctrip, an estimated 6.5 million outbound Chinese travellers spent this year’s week-long Lunar New Year holiday overseas. Each tourist was expected to spend an average of 9,500 yuan (US$1,500) on their trip.

    “Offering instant tax refunds is a smart strategy by both Chinese players to capture further market share beyond what is likely to be a close to saturated market within the mainland,” said Michael Yeo, research manager for financial and retail insights at IDC.

    “Many outlets across Asia, Europe and Northern America already accept both WeChat and Alipay payments. Offering instant tax refunds provide convenience and may prove to be an effective tool in luring these tourists to switch from other payment methods, such as cash or credit card, for such trips.”

    Similar to other WeChat Wallet and Alipay programmes, the tax rebate service makes use of quick response (QR) codes. The tax refund officer scans the QR code on a user’s smartphone to credit the refund to their account.

    While Alipay allows users to access the QR code in the Alipay app, WeChat Pay users will have to search for its WeChat Tax Refund feature to process the refunds.

    Global Blue and WeChat Pay are now working to offer in-store refunds, which means that Chinese travellers would no longer need to line up to get their tax refund forms processed at the airport. The service is expected to be rolled out across Europe within this year, according to a joint statement.

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