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Tag: Thailand

  • Samsung and BTS enter global marketing collaboration

    Samsung and BTS enter global marketing collaboration

    South Korean electronics giant Samsung and BTS the K-pop superband, have entered a global collaboration to market smartphones.

    Samsung will first work with BTS for the boy band’s global contemporary art initiative, “Connect, BTS,” before expanding their collaboration to other areas, according to the officials.

    Connect, BTS is a global initiative spearheaded in collaboration with curators from five major cities — London, Berlin, Buenos Aires, Seoul and New York — to connect people from across the world through art.

    The project was designed to dovetail with BTS’ philosophy that centers around diversity, love and ‘care for the periphery’.

    Samsung said it will support augmented reality (AR) docent service for the project, in which members of BTS appear and explain art pieces in a virtual system.

    The South Korean tech giant also installed a media facade with its Galaxy devices for the art project in Seoul and New York.

    Samsung and BTS did not disclose further details of the partnership, but industry insiders expect that the septet will participate in the company’s various promotion and marketing events regarding its new smartphones launched earlier this month.

    BTS member V was spotted at Samsung’s “Galaxy Unpacked 2020″ in San Francisco, where the company unveiled the new-generation 5G Galaxy S20 series and the Galaxy Z Flip smartphones.

    “We hope we can deliver a good experience to fans of BTS and Galaxy devices around the globe through collaboration with BTS,” a Samsung official said. “We are planning various activities other than ‘Connect BTS.’”

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  • More Headwinds for Bangkok’s Already Hollowing Condos

    More Headwinds for Bangkok’s Already Hollowing Condos

    There are an estimated 100,00 vacant condominiums in and around Thailand’s capital as a plunge in Chinese demand hits the property sector.

    Foreign buyers accounted for one-fifth of the Bangkok’s real estate purchases two years ago, according to estimate from local consultancy Agency for Real Estate Affairs, but the ongoing coronavirus outbreak is set to cut the figure in half. This is especially due to the fact that the majority of foreign demand is from Chinese buyers who are being hindered by travel curbs in addition to economic risks at home.

    The projections if materialized will further exacerbate damage being felt in Bangkok’s real estate market especially in the condominium segment where the consultancy estimates up there are up to 100,000 vacant units.

    In addition to the real estate sector, Thailand’s broader economy was already feeling the pressure in 2019 from a strengthening baht and an ongoing U.S.-China trade war. Gross domestic product growth is projected to grow as little as 1.5 percent in 2020 – a six-year low – according to the government.

    Local authorities are already rolling out measures to support the property market including loosened mortgage lending rules from the Bank of Thailand to encourage domestic purchases. Still, the outlook remains gloomy and a report citing an estimate by global real estate consultant Collier places the number of newly developed condo units at 6,000 in the first quarter of 2020, a 40 percent year-on-year drop.

    To date, the coronavirus outbreak has infected nearly 80,000 individuals with a kill count of 2,495.

  • Don Don Donki to expand after success of debut store in Thailand

    Don Don Donki to expand after success of debut store in Thailand

    Don Don Donki Thailand will expand its retail network this year after a positive trading performance of the first outlet.

    In partnership with Saha Pathana Inter-Holding (SPI), the holding company for consumer product conglomerate Saha Group, Don Don Donki Thailand plans to open its second outlet on Ratchadamri Road, which is three times bigger than the first store.

    President and executive director at SPI, Vichai Kulsomphop, said the venture aims to open 10 branches across the country. Each of the stores will cost THB500 million and occupying a space of between 5000 and 6000sqm.

    “Saha Group is also willing to be an overseas partner of Donki if the Japanese firm really wants to expand its business in Asean,” said Vichai.

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  • Global franchise operators eye Thai growth

    Global franchise operators eye Thai growth

    Franchise brands from the US, France and China are eyeing opportunities in Thailand which has become a strong drawcard for offshore companies, according to consultants.

    Southeast Asian specialist VF Franchise Consulting is holding a franchise-business matching event in Bangkok next week, with local partner Gnosis which has drawn businesses keen to establish a presence in Thailand.

    Among the companies participating who are seeking local partners are retailers Ace Hardware, Delifrance and Little Caesars. Others include technology-focused language education company Qooco and Scholastic World of English.

    “Thailand continues to be of strong interest from our clients,” said Sean T Ngo, CEO of VF Franchise Consulting. “Whether it is food and beverage, education, retail, fashion or services, all of these sectors are attractive in the Thai market.”

    Ngo says the key to succeeding in Thailand’s ultra-competitive market is offering clear and sustainable value and differentiation.

    “We believe the brands that we are taking to Thailand fit that extremely well as they are all leaders in their respective franchise segments.”

    On February 25 in Bangkok, some of the franchisor executives from the brands will meet one-on-one with invited franchisees and investors.

    US-based Little Caesars Pizza is the world’s third-largest pizza franchise and now operates in 26 countries, including Singapore and the Philippines.

    Delifrance is the world’s largest French bakery and cafe chain and has more than 400 stores serving millions of customers in 15 countries across the globe.

    Ace Hardware is the largest home-improvement franchise in the world with more than 5300 stores worldwide, including more than 200 stores in the Philippines and nearly 200 stores in Indonesia.

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  • Great Wall Motor To Purchase GM’s Thailand Manufacturing Plant

    Great Wall Motor To Purchase GM’s Thailand Manufacturing Plant

    Great Wall Motor announced that it has signed an agreement for the purchase of General Motors’ manufacturing facility in Rayong, Thailand. This announcement is subject to government and regulatory approvals. Under a signed binding term sheet, GM Thailand and GM Powertrain Thailand legal entities, which include the Rayong vehicle assembly and powertrain facilities, will transfer to GWM. GM and GWM are targeting the end of 2020 to close the deal and hand over the site.

    The acquisition of GM’s Thai Rayong plant will help the business development of Great Wall Motor in Thailand and the ASEAN market. Great Wall Motor will expand through the entire ASEAN region with Thailand as the center, and export its products to other ASEAN countries as well as Australia. Great Wall Motors’ investment will create more jobs in the local area, including direct and indirect employment and further enhance skill development in the automotive industry. GWM will also promote the development of the local supply chain, R&D and related industries, plus contribute more to the exchequer of both the local Rayong and Thailand governments.

    Parker Shi, Vice President, GWM India said, “This agreement marks an important milestone in the overall scheme of things for Great Wall Motor in the ASEAN Region and is a testimony of our global expansion strategy that is now focused on South East Asia including India.”

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  • Bangkok’s Chatuchak mall opens in Singapore

    Bangkok’s Chatuchak mall opens in Singapore

    Bangkok’s world-famous Chatuchak Market has launched a satellite site in Singapore.

    A 40,000sqft pop-up market located at The Grandstand on Turf Club Road, it marks the first time Chatuchak has been convened outside of Thailand.

    The market opened this week and will remain trading until May 3.

    More than 400 vendors are trading at the market, some rotated in from the original open-air market in Thailand.

    While Bangkok’s market is only open during weekends, Chatuchak Singapore will trade from 4.30 pm to 10.30 pm every day except Monday.

    Thai street food is being sold at the market for visitors seeking an authentic Chatuchak experience – while apparel, accessories and jewelry are among the goods on offer at stalls.

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  • Central Group to take stake in Globus

    Central Group to take stake in Globus

    Thai retail and mall conglomerate Central Group is partnering with an Austrian property developer to buy Swiss department store chain Globus.

    According to the Sonntagszeitung, a Swiss newspaper, both companies will take an equal 50-per-cent share in the business.

    Globus reportedly has significant property assets making it an attractive target for Austrian property investor Rene Benko. Benko’s Signa Holding already owns the Germany department store Galeria Kaufhof.

    Central Group, on the other hand, has already enjoyed success investing in department stores in Europe, its network now including the Rinascente Turin and a share in Germany’s KaDeWe Group, which also owns the Oberpollinger and Alsterhaus stores in Munich and Hamburg. It has another luxury department store under construction in Vienna.

    Globus is valued at about US$1 billion and has a flagship store on the main street of Zurich.

    The deal has not yet been officially confirmed with final details under negotiation, but current owner Migros-Genossenschafts-Bund has confirmed a sale is proceeding according to plan.

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  • NokScoot soars to new heights for punctuality

    NokScoot soars to new heights for punctuality

    NokScoot, the joint venture low-cost carrier of Thailand’s Nok Air and Singapore’s Scoot, achieved its best-ever annual on-time performance (OTP) since the start of operation with an average of 86.55% in 2019.

    The airline’s 2019 punctuality report revealed that the airline obtained its highest OTP on record even though the flights flown increased by 30% or 1,162 flights. Last year alone, it operated 4,951 flights, an increased from 3,789 flights flown in 2018. During the busiest month of 2019 in December, it earned a perfect 100% OTP for both, Tokyo Narita International Airport in Japan and Qingdao International Airport in China.

    “At NokScoot, we always work hard in order to offer the best services and provide an enjoyable flying experience to our passengers.” said Yodchai Sudhidhanakul, CEO of NokScoot. “OTP is crucial and has always been one of our five core values, ‘Consistently Deliver’. We are committed to maintain and enhance the highest standard in every aspect, including punctuality, safety and convenience.”

    The carrier currently flies from Bangkok to nine destinations in East Asia and India, including Nanjing, Qingdao, Shenyang, Tianjin, Taipei, Tokyo, Sapporo, Osaka, and New Delhi.

  • Nok Air suspends Guwahati-Bangkok flights from January 20

    Nok Air suspends Guwahati-Bangkok flights from January 20

    As per reports, Nok Air is expected to resume its operations from April 12, 2020.

    The airline has cited ‘operational reasons’ behind its decision to suspend the flights.

    Nok Air, which is a subsidiary of Thai Airways International, had operated its flights in the Guwahati-Bangkok route twice a week.

    It may be mentioned that Nok Air, which had started its flight operations from Guwahati to Bangkok in September last year, had suspended its operations just four months after airline SpiceJet has suspended the Guwahati-Dhaka direct flight service.

    The reason behind the suspension of the ambitious Guwahati-Dhaka flight service was due to not getting the desired number of passengers.

    Due to poor business operations of the flight service, SpiceJet had first reduced the frequency of the flight service from daily to twice a week.

    However, the new outcome of the flight service still being poor, SpiceJet had finally decided to suspend its operations.

    At present, only two international flights would remain operational from the Guwahati airport and that is Druk Airlines’ flights from Guwahati to Singapore and Guwahati to Paro.

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  • Analysts Downgrade Thailand’s Oldest Banks

    Analysts Downgrade Thailand’s Oldest Banks

    Siam Commercial Bank, one of Southeast Asia’s largest lenders, has prompted cuts from analysts on concerns of its loan book.

    After the bank reported its fourth-quarter results, nearly a third of the analysts who cover the Thai bank cut their recommendations the past week, wiping out nearly $2 billion from its market value. Asia Plus, Credit Suisse and J.P. Morgan Chase were among the brokerages that cut ratings.

    Thailand’s economy in 2020 is still surrounded by negative factors. Asset quality is still at risk and needs to be watched closely. said Therdsak Thaveeteeratham, an analyst at Asia Plus Securities.

    Siam Commercial and other Thai lenders have closed branches while increasing digital banking in an effort to boost earnings. However, a struggling economy has increased bad loans at the bank, which is more than a century old and counts King Maha Vajiralongkorn as its biggest shareholder.

    Siam Commercial’s shares posted their biggest one-day decline since 2008 on January 20, the first trading day after the fourth-quarter earnings report showed a jump in bad-loan provisions.

    Still, the downgrades and reaction may be overdone as Siam Commercial raised loan-loss provisions in 2019, according to Diksha Gera, a Bloomberg Intelligence analyst. The bank may consider boosting the net interest margin and cut costs to counter weak revenue, she said.

    The bigger risk we see is potential M&A following recent moves of other local competitors such as Bangkok Bank to make acquisitions, she notes.

    Bangkok Bank last month announced that it would acquire a controlling stake in Indonesia’s PT Bank Permata for about $2.7 billion to expand its presence in Southeast Asia’s biggest economy.a

  • Bangkok’s Thaniya Plaza to be refurbished for the first time in 30 years

    Bangkok’s Thaniya Plaza to be refurbished for the first time in 30 years

    Thai developer Thaniya Group plans to invest more than THB1 billion (US$33 million) on renovating Thaniya Plaza, its first major makeover project in 30 years.

    The project will cover the refurbishment of its exterior and interior design as well as the transformation of Thaniya Road, the company said in a statement.

    Located in the heart of the tourist precinct of Silom, Thaniya Plaza is a major drawcard for golfers, especially visitors from Japan and South Korea.

    “Thaniya Plaza will further strengthen our position as the well-known landmark on Silom Road and fulfill needs of people in the Silom area,” said Tasnawat Sombuntham, MD of Thaniya Group. “We are confident that we can cater to a need for business operators in terms of the customer traffic and the prime location in Bangkok’s CBD. We have also improved our space-rental services to align with today’s business landscape.”

    Thaniya Group chose a design concept emphasizing modern and green, based on public feedback suggesting there was a need for more green spaces in the Silom area. The 12,000sqm retail space spans four floors in two buildings connected by bridges. The landscape on the ground floor will be transformed to increase more green area and create a link between the two buildings.

    The first phase of the renovation will start in April with the work expected to be completed by early next year. During the renovation, the mall will continue to trade.

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  • UOB Invests in Thai Fintech

    UOB Invests in Thai Fintech

    The funds will be invested into the Stellar Network, the blockchain technology underlying Lightnet’s platform, as well as to build a «next-generation financial mobility network.»

    Bangkok-based fintech Lightnet has raised $31.2 million in a Series A funding round led by UOB Venture Management, the private equity unit of UOB, the firm announced in a statement on Friday.

    Other backers include Seven Bank, Uni-President Asset Holdings, HashKey Capital, Hopeshine Ventures, Signum Capital, Du Capital and Hanwha Investment and Securities.

    According to its website, the company aims to disrupt the global remittance market by using smart contracts and distributed ledgers to replace the SWIFT system and underground banking. It is currently focusing on the millions of unbanked migrant workers in Southeast Asia, which rely on costly, slow, and fragmented services for cross-border remittances.

    Lightnet was co-founded by Chatchaval Jiaravanon – a family member of the Charoen Pokphand Group in Thailand – and tech entrepreneur and former investment banker Tridbodi Arunanondchai.

    «We project that within three years, Lightnet will facilitate over $50 billion worth of annual transactions through our industry-leading partner network,» Arunanondchai said.

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  • Thailand Cannot Push Digital Banking with Central Bank Alone

    Thailand Cannot Push Digital Banking with Central Bank Alone

    Thailand hopes to match the rapidly rising global standards in digital banking but Bank of Thailand’s governor notes that it will take more than just the efforts of the central bank.

    Veerathai Santiprabhob said the central bank will look to launch electronic lending and other financial services this year through a collaboration with various parties. Though he did not disclose details, the BoT governor stressed that collaboration between government agencies is critical, according to a report.

    It cannot be the central bank alone, he said.

    Digital banking in Thailand is feeling the tailwinds, despite the lack of independent virtual lenders seen emerging in neighboring financial hubs. UOB was the latest reported entrant into the country with the launch last year of its first mobile-only bank, TMRW. Local lenders, too, are making digitalization inroads with one player reportedly reaping the success of applying gamification in its business.

    Although Thailand has digital banking ambitions, Veerathai is cognizant of the gap between its market and other rival players in Asia. He highlighted data from non-financial sources, an electronic identification system and a suitable regulatory framework as three key pillars required to build virtual banks.

    At this stage, Thailand might not have the ecosystem ready like in Singapore or Hong Kong, where the digital banking system is in better shape, he said.

    When we talk about digital banking licenses, we want to have a new financial services provider that can serve the currently underserved, meaning that you have to be able to meet the needs of people on the street, people from far, far away, Veerathai said.

    Whilst access to the unbanked market is undoubtedly an attractive proposition, Veerathai acknowledged the challenges required to evaluate borrowers’ creditworthiness due to insufficient data available.

    This can come from when customers use mobile phones, the way they conduct their business using the digital footprint ecosystem, he added.

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  • Thai oil company PTT joins race for Tesco

    Thai oil company PTT joins race for Tesco

    Thai oil company PTT is said to be preparing to make a bid for the Tesco Asia businesses in Malaysia and Thailand.

    The firm’s retail unit, which also owns the rapidly growing Cafe Amazon chain, will join local retailer Central Group and conglomerate Charoen Pokphand in first-round bids.

    At the beginning of this month, Bloomberg sources were tipping the Tesco Asia business could fetch as much as US$7 billion. But this week, Reuters sources are estimating the deal to be worth as much as US$9 billion. If one of the Thai suitors is successful, the deal could potentially be the second-largest acquisition ever by a Thai company.

    Tesco currently operates about 2000 outlets in Thailand, and another 74 in Malaysia in a local partnership with Sime Darby Group.

    Tesco announced in December it was reviewing the future of the business after receiving expressions of interest. As Inside Retail Asia reported earlier this month, Thai billionaire Dhanin Chearavanont, who owns the Charoen Pokphand Group, and the Chirathivat family-controlled Central Group are among a group of potential investors in discussions with Tesco.

    Meanwhile, Reuters has reported that Thailand’s Office of Trade Competition Commission has issued a rare warning under the country’s anti-monopoly laws, saying it will closely monitor any deal.

    Thai oil company PTT is actively pursuing business expansion outside its core fuel-retailing business. The company is rolling out Amazon Cafe outlets across Southeast Asia, with the latest markets including Singapore and Vietnam.

    In late 2018, the company said it planned to open 20,000 cafes globally, nearly 10 times its then the network of 2300 outlets in Thailand, the Philippines, Laos, Cambodia, Myanmar, and Japan.

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  • Thai conglomerates in race to buy Tesco Asia

    Thai conglomerates in race to buy Tesco Asia

    Two Thai billionaires are reportedly preparing bids for the Asian operations of UK grocery giant Tesco.

    Citing “people with knowledge of the matter”, Bloomberg has reported that Charoen Pokphand Group, owned by Dhanin Chearavanont, and the Chirathivat family-controlled Central Group are among a group of potential investors in discussions with Tesco over a potential buyout.

    The UK company announced early last month that it was conducting a review of the future of its Asian business after receiving ‘inbound interest’.

    Tesco operates 74 stores in Malaysia and about 2000 in Thailand under Tesco Lotus brand. The combined stores generated £286 million (US$375.8 million) operating profit in the year to last February.

    Bloomberg reports that Tesco will invite formal bids for the business next month and suggests it may fetch as much as US$7 billion.

    The Malaysian and Thai Tesco operations are separate businesses, with Sime Darby holding a 30-per-cent stake in the former.

    The solicitation of bids may not necessarily lead to a sale of the business.

    Retail analytical consultancy GlobalData is among those suggesting a sale would not be in the best long-term interests of Tesco UK, which in recent years has sold or closed all its other off-shore businesses to focus on the UK market, and the Tesco Asia business.

    Hakan Demirci, consumer analyst at GlobalData, says the sale of the Tesco Asia business by its UK parent would prioritise shareholders over sound long-term economic strategy,

    “Tesco’s Malaysian and Thai sectors have been constant sources of sustained success, with profit margins the highest at 6 per cent compared to the UK business’s margins of 3 per cent.

    “Selling its Asian business would be welcomed by Tesco’s shareholders, who would be granted higher returns on their investments if it were to go through. However, these markets were relatively developed and consolidated, with little room for growth in the retail sector.

    He said the Malaysian food and grocery market is set to grow from now through 2022 with a compound annual growth rate (CAGR) of 9.9 per cent. Likewise, the Thai food and grocery market will grow at a smaller, yet still significant CAGR of 4.5 per cent over the same period – representing a significant opportunity for Tesco to expand its business.

    “If these markets were to be sold, Tesco would be left with operations in the UK, Ireland and Central Europe. This would leave the group vulnerable as it loses its benefit of regional diversification, resulting in a less dynamic and flexible company.”

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