Retail News CRM

Tag: Vietnam

  • From loss to profit for Parkson Retail Asia

    From loss to profit for Parkson Retail Asia

    Department store Parkson Retail Asia has managed a turnaround with profit before tax (PBT) of S$35 million (US$25.8 million) for the year ended June 30, compared to a pre-tax loss of $40.6 million the previous year.

    Profit was boosted by gain from a partial disposal of equity interest in Parkson Hanoi (PHCL) of $45.6 million. A subsidiary of the group, PHCL is now an associate company.

    On a same-store basis, PBT for the year fell by 46.9 per cent year-on-year to $17.4 million.

    For Malaysia, PBT declined by 28.9 per cent through negative same-store sales of -6.5 per cent and weak local currency; Vietnam had a pre-tax loss of $0.5 million with -2.9 per cent same-store sales; there was a pre-tax loss of $3.2 million in Indonesia; while Myanmar’s results were affected by uncertainty arising from redevelopment plans for the FMI Centre where the store is located.

    For the group’s fourth quarter, same-store sales grew 21.5 per cent in Malaysia, attributed to early festive buying arising from a shift in the Hari Raya calendar as well as the same quarter last year being hit by low sales following the introduction of the Goods & Services Tax.

    New concepts

    New concepts have been initiated, such as introducing Korean apparel, affordable private labels, and specialty shoe stores.

    “We have been consolidating our department store space by identifying non-performing stores with the view to closure upon tenancy expiry,” says Parkson.

    In Myanmar, the group had a 25 per cent decline in same-store sales, affected by plans to close the FMI Centre, while Vietnam had a 4.1 per cent decline for the quarter, with the discretionary retail environment difficult amid an increasingly crowded retail scene.

    Indonesia was more positive with 7.3 per cent growth in same-store sales, mainly because of early festive buying as a result of a shift in the Lebaran calendar.

    Overall, gross sales proceeds (GSP) and revenue for the quarter grew by 9.8 per cent and 10.9 per cent respectively to $232.1 million and $93.9 million. However, GSP and revenue declined by 10.2 and 9.4 per cent respectively to $967.7 million and $388.4 million.

    The group’s pre-tax loss for the quarter was $13.4 million. Contributing factors included impairment on fixed assets for two loss-making stores of $5.4 million, impairment on prepaid rental and rental deposit of $3.3 million, provision on deposit for a managed store in Ho Chi Minh City of $2.2 million, and the initial loss-making periods associated with new stores and businesses.

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  • Foodpanda is selling its Indonesia business and rethinking the rest of Southeast Asia

    Foodpanda is selling its Indonesia business and rethinking the rest of Southeast Asia

    Foodpanda, the food delivery startup backed by Rocket Internet, is selling its operations in Indonesia and evaluating its presence in the rest of Southeast Asia as part of a push towards profitability.

    Multiple sources close to the company told that its business in Indonesia, the world’s fourth-most populous country, is available to potential acquirers for less than $1 million — and an all-cash deal isn’t even a requirement. Foodpanda, which is active in 500 cities across five continents worldwide, has slashed the asking price for its Indonesia operations to basically zero after more than a year of unsuccessfully trying to offload it, one source added.

    The intention mirrors the sale of its business in Vietnam last year. The company reportedly tried to offload its India business earlier this year without success.

    Foodpanda provided the following statement which, if you strip out the grandiose terms, does hint at transactional activity up ahead:

    Foodpanda has grown very fast in Southeast Asia over the last couple of months and strengthened its market leading position in the region. Driven by our increased dominance in the region we have experienced interest from a variety of different parties to partner or to invest which we are evaluating now.

    Indonesia may be Southeast Asia’s largest economy but it has proven to be a challenge due to factors including competition and local market conditions. Go-Jek, a motorbike taxi-on demand company that this month raised $550 million, is the primary thorn in Foodpanda’s side. The company offers food delivery as one of its many services, and it is able to price that business competitively thanks to its massive fleet of 200,000 drivers and revenue from other services. Grab also offers services like food delivery, while Uber is tipped to follow suit.

    One source close to Foodpanda added that Jakarta’s challenging traffic congestion and a lack of infrastructure have added complexities.

    Reviewing regional presence

    Foodpanda is actively seeking to cash out of Indonesia, but that may not be its only exit from Southeast Asia.  We understand from a source that the company is reevaluating its entire business across the region, and it has already made tentative efforts to sell in some countries. The company expanded in Asia via a series of acquisitions, which, in many cases, ironically leaves it without obvious suitors.

    News of its reassessment of Southeast Asia comes just weeks after Foodpanda co-founder and CEO Ralf Wenzel claimed that the company is profitable in two of its markets — Europe and the Middle East — but not Asia.

    Wenzel told Reuters his company is “focused on improving market share” in Asia, which has included asset exchanges with competitors, in order to turn its finances positive there.

     “Over the next couple of months we will turn break-even and then profitable in the first Southeast Asian countries,” Wenzel added.

    While the Foodpanda CEO claimed profitability in Asia is “just a matter of scale,” our sources said that discarding under-performing units — which Wenzel did not mention — is a very key part of the plan.

    Challenging investment climate

    Foodpanda raised $210 million last year — including a $100 million injection from Goldman Sachs and a separate $110 million round — but the climate for investment is tougher now. One source close to Rocket Internet told us that the venture builder is not optimistic about landing capital for many of its older, more capital-intensive businesses, including Foodpanda.

    That’s evidenced by a recent round of capital for Global Fashion Group (GFG), a collection of Rocket Internet-backed fashion marketplaces worldwide. GFG raised $330 million but the capital came from a collection of trusted Rocket Internet entities and at a huge mark down. The group’s valuation plummeted from $3.4 billion at its last raise to $1.1 billion.

    Sources speaking at the time told us that GFG CEO Romain Voog met with more than 90 investors, but came home empty-handed.

    GFG had already preempted that challenge by discarding some of its unprofitable business units in Southeast Asia — does that sound familiar?! — which included the sale of Zalora Thailand and Lazada Vietnam for low prices and triggered high-level execs to leave. Rocket Internet isn’t alone to struggle in Southeast Asia, though. Groupon sold its Indonesia business to fitness membership startup KFit, a fairly unorthodox acquirer, after it had already exited other Asian markets.

    Now it looks like Foodpanda is following a similar approach. While Southeast Asia is often noted for its 600 million cumulative population and growth potential, today its nascent digital economy is challenging for many online retail companies.

    This year has marked a different approach for Rocket Internet in Asia. This summer, it finally offloaded Jabong, its fashion marketplace in India, to rival Myntra in a $70 million deal this summer, while Alibaba bought a majority stake in Amazon-like Lazada for $1 billion in April. Despite a seemingly decent outcome on the face of it, many Lazada investors were left disappointed, and the company itself ran out of money thanks to spiraling loses.

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  • Saigon underground mall planned

    Saigon underground mall planned

    Ho Chi Minh City can expect its first underground shopping mall by 2020.

    According to local news sources, the city’s government has sought central government approval to build a four-level Saigon underground mall beneath a station in its first metro route, from Ben Thanh market to Suoi Tien theme park.

    The underground complex will include a shopping mall, walking streets, a square, and other infrastructure.

    The mall is said to cover 40 per cent of the 45,000sqm area, starting from/under Ben Thanh market, going along Le Loi St and ending at the city center’s iconic Opera House.

    The US$303 million project will be constructed jointly by Toshin Development and other consortiums, including Nikken Sekkei Civil Engineering, Osaka Chikagai, and Join.

  • Parkson Retail Asia cuts Q4 loss by 80%

    Parkson Retail Asia cuts Q4 loss by 80%

    South-east Asian department store operator Parkson Retail Asia narrowed its fourth quarter net loss by 80 per cent, owing to the absence of costs associated with a store closure a year earlier.

    Parkson, which does not have stores in Singapore, reported a net loss of $12 million for the three months to June 30.

    Revenue was up 10.9 per cent to $93.9 million from a year earlier, it added yesterday.

    The closure of a store at Landmark 72 in Hanoi, Vietnam in January last year had cost the firm $68.4 million. This went under other expenses – which include advertising, selling and administrative expenses, for instance – which improved 70.4 per cent to $27.6 million.

    Owing to this, the firm added in a statement that “as a percentage of revenue, the other expense ratios for the fourth quarter and the full year declined substantially year on year”.

    For the 12 months to June 30, Parkson reversed a net loss of $34.7 million to a net profit of $33 million, while revenue dipped 9.4 per cent to $388.4 million from a year earlier.

    Parkson has department stores in cities across Malaysia, Vietnam, Indonesia and Myanmar.

    Malaysia reported same store sales growth being up 21.5 per cent, thanks to “early festive buying arising from the shift in the Hari Raya calendar”. The growth also came from a low base a year earlier, where consumers bought less after the 6 per cent goods and services tax was introduced on April 1 last year.

    Even though consumer sentiment remains subdued in Malaysia, the firm said it has initiated new concepts such as introducing South Korean apparel, affordable private labels and shoe speciality stores to diversify earnings.

    Parkson added: “We have been consolidating our department store space by identifying non-performing stores with the view to closure upon tenancy expiry.”

    The Myanmar operations’ same store sales growth, however, took a 25 per cent hit in the fourth quarter.

    Parkson added that there are plans to close the store in FMI Centre in Yangon for re-development, and this upcoming closure has affected sales.

    “The landlord has not confirmed the timing for the re-development,” the firm added.

    Overall, it expects the first quarter of the next financial year to remain challenging.

    Quarterly loss per share stood at 1.78 cents, up from a loss of 8.82 cents in the same period last year. Net asset value per share was 24 cents as at June 30, up from 19 cents as at the same date last year.

    Parkson proposed a final dividend of 0.5 cent.

    Its shares closed 0.3 cent lower at 15.6 cents yesterday.

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  • New post at Luxasia Group for SingPost’s ex-boss

    New post at Luxasia Group for SingPost’s ex-boss

    Beauty retailer The Luxasia Group has appointed former SingPost CEO Dr Wolfgang Baier as group CEO, while founder/owner Patrick Chong has become chairman.

    “Luxasia is now at an important crossroads,” says Chong. “We intend to grow with our international partners and strengthen our core competencies to become the leading Asia consumer-centric omnichannel go-to-market partner of the beauty industry.”

    Patrick-Chong-Wolfgang-Baier

    He says Baier has proven leadership capabilities, vast knowledge and skills in areas such as CRM and omnichannel retail. “His track record in the logistics sector will also help strengthen Luxasia’s partnerships.”

    “Transformation is relevant in every sector and particularly for retail, where the digital and physical space is converging,” says Baier. “This makes developing an omni-channel ecosystem critical. We want to revolutionise how we serve consumers and brand partners in the beauty industry across Asia.”

    Chong says the search for a CEO took more than a year, as it was important Luxasia found the right leader.

    “Not only does Wolfgang understand our operations and share the same aspirations, in some ways he is even more ambitious for Luxasia with regard to developing new areas.”

    Established in 1986, The Luxasia Group has developed retail and distribution networks across Asia for some of the world’s biggest beauty companies. Based in Singapore, the privately held company has 11 offices and more than 2000 full-time employees in Singapore, China, Hong Kong, India, Indonesia, Malaysia, Myanmar, Taiwan, Thailand, the Philippines and Vietnam.

    It manages a portfolio of more than 120 international fragrance, cosmetics, skincare and
    professional salon brands including Beiersdorf, Burberry, Clarins, Estee Lauder, Ferragamo, Hermes, P&G and Shiseido.

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  • Naughty Cat Vietnam makes Saigon debut

    Naughty Cat Vietnam makes Saigon debut

    Leading Korean accessories chain Naughty Cat has opened its first Vietnam store on Nguyen Hue St in the city centre.

    Naughty Cat Vietnam is located at 47 Nguyen Hue street, D1. The store hopes to cash in on the crowded ‘walking street’ as well as the growing influence of the Hallyu wave in Vietnam.

    To mark the launch, the brand invited Vietnamese models and actresses to the store to demonstrate how fashionable girls will be when wearing these accessories.

    naughty cat

    Customers might be overwhelmed by thousands of items from headbands, hair clips, wigs, gloves and socks to earrings, necklaces, bracelets and even cell phone plugs. Naughty Cat – or N.Cat for short – has collections for men as well.

    After 23 years in the industry, N.Cat knows how to vary its collections to serve different fashion styles, and maintain quality and affordable prices. Globally, it introduces more than 5000 items every month to maintain customer interest and encourage repeat store visits.

    Founded in 1991, N. Cat Accessories had 110 franchised stores in Korea, Europe, America and Asia at the end of 2015.

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  • Kantar Worldpanel partners with Facebook to expand advertising measurement service

    Kantar Worldpanel partners with Facebook to expand advertising measurement service

    Kantar Worldpanel has formed a global partnership with Facebook that brings Facebook mobile ad exposure data into Kantar Worldpanel’s Consumer Mix Model (CMM) service.  In Asia, the service has launched in South Korea, Taiwan, Thailand, Philippines, and Vietnam, and will soon be available in Indonesia and Malaysia as well.

    The enhanced CMM tool combines Facebook’s mobile ad exposure data (in addition to desktop) with Kantar Worldpanel’s continuous consumer packaged goods (CPG) purchase data to provide brands with an accurate assessment of the effectiveness of their cross-media advertising campaigns. 

    The advertising landscape has witnessed rapid change in recent years as brands increasingly turn to digital formats.  In April Facebook announced that its advertising revenue had grown by 57 percent to $5.2 billion in the first quarter of 2016 alone, with advertisers drawn to its increasingly large user base. 

    The tool allows brands and advertisers to understand the real impact of individual advertising campaigns on actual sales and the contribution Facebook and other media have on their return on investment.  This in turn will help them to optimise their media planning and ultimately improve the efficiency of their media investment.

    Josep Montserrat, chief executive of Kantar Worldpanel, commented: “The partnership allows our experts to build a solid understanding of how advertising works and the role that Facebook plays in a wider campaign context.  Working with Facebook will allow us to inspire even better decisions to optimise advertising budgets and maximise advertisers’ return on investment.”

    Marcy Kou, chief executive of Kantar Worldpanel Asia, said: “It brings tremendous potential for advertisers on Facebook as the number of smartphone users continues to grow in Asia Pacific. Retail ecommerce in this region is going stronger than the rest of the world, and is still considered the “it” market. Yet there hasn’t been a reliable method to measure the effectiveness of mobile ads, and with this partnership, we will finally be able to.”

    Patrick Harris, director of Global Agency Development at Facebook, said: “We believe that strong partnerships with our agency partners are key to providing advertisers with the tools they need to measure true business value on Facebook.  We are excited to help inform Kantar Worldpanel’s Consumer Mix Model solution by bringing in our mobile ad exposure data in a privacy-safe way.”

    Kantar Worldpanel’s continuous CPG purchase panels are already widely used by the advertising community worldwide to understand the effect of cross-media advertising.  Its measures take into account in-store promotions and consumer loyalty to determine the full picture behind consumer purchase behaviour. 

    This partnership with Facebook is part of a wider alliance between WPP and Facebook to activate WPP’s data proprietary assets within Facebook, which was announced in April 2015.

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  • VNPT launches mobile satellite services

    VNPT launches mobile satellite services

    Vietnamese military-run operator VNPT has launched mobile satellite services via subsidiary VinaPhone.

    The operator has signed an agreement with Thuraya to expand its coverage to 100% of Vietnam’s territory – as well as two thirds of the world – by utilizing the Thuraya network.

    Thuraya will provide its land and maritime handsets for the services, which will allow postpaid customers to make voice calls send SMS and use GPS.

    Services will be offered for consumers and government agencies as well as enterprise customers, particularly those in the mining, fishey, transport, construction and tourism industries.

    In the initial launch phase VNPT will introduce Thuraya’s XT-Lite satellite handsets and the SF2500 maritime communication system. The latter product supports voice capabilities, crew calling, GPS tracking, geo-fencing and SMS services..

    “The launch of mobile satellite services confirms our dedication to the primary mission of VNPT, consolidating technology to serve the needs of society,” a VNPT representative commented.

    “The mobile satellite service marks a significant step for the VNPT VinaPhone mobile network, allowing it to cover all of Vietnam, thereby eliminating communication black spots.”

    VNPT’s Vinaphone was the first mobile network to cover all provinces and cities across Vietnam in 1999, and to cover all districts in 2006.

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  • Topmot Vietnam receives seed funding

    Topmot Vietnam receives seed funding

    Right after the closure of its sibling eCommerce model Lingo, Topmot Vietnam has received US$1 million from investors in Asia, Europe and the US.

    The funding proves that despite many online failures in Vietnam to date, there is still interest in eCommerce startups.

    “Ecommerce in Vietnam is indeed not easy, specifically for B2C businesses that require a sizable up-front investment to be able to process and fulfill orders in a professional manner,” CEO Erik Jonsson said.

    Topmot Vietnam has launched an iOS application to help it expand to farther areas besides Hanoi and Ho Chi Minh City. There are still opportunities in Vietnam market where people prefer to pay in cash and the logistics network remains immature.

    “eCommerce in Vietnam is not a sprint, it’s a marathon, and we have to be disciplined and focussed in each step of the way,” Jonsson added.

    Jonsson, a former Zalora CEO, and deputy CEO of VinGroup’s eCommerce, founded Topmot Vietnam in late 2015. Topmot’s model is different to conventional eCommerce sites, focused on flash sales and aiming to help suppliers clear excess and end-of-season inventories.

    The site has built a strong customer network in second-tier cities like Can Tho, Vung Tau, Da Nang and Hai Phong, attracted by high discounts.

    With 40 campaigns a week, starting at 10am everyday and lasting for five days, Topmot usually sells out of its products only a few hours after launch. Fastest-selling products come from international brands such as Shiseido, Converse, Puma and Pedro, as well as local brands such as Gosto, Kujean and Bitis.

    While the defunct Lingo site’s business largely came from shoppers using desktop or laptop computers, Topmot’s traffic from mobile devices has increased 70 per cent since its launch last year.

  • MobiFone builds 300Gbps packet-optical backbone

    MobiFone builds 300Gbps packet-optical backbone

    MobiFone is leveraging Ciena technology to build the Vietnamese operator’s first high-capacity converged packet-optical  network.

    Currently provisioned with 300Gbps, the network spans more than 1,400 kilometers across the country from Hanoi to Ho Chi Minh City.

    This will help MobiFone provide high-speed mobile broadband services to businesses and consumers in more than 25 local provinces.

    With the network, MobiFone will be able to easily scale and automatically adapt network capabilities.

    Additionally, the network will use Ciena’s intelligent control plane technology to ensure survivability even in the case of multiple fiber cuts.

    ELCOM, a Ciena BizConnect channel partner, provided deployment services for this project.

    “Ciena’s cutting-edge optical platforms enable us to have a state-of-art backbone system. Demand for high-speed fixed and mobile data services, video content and the move to the cloud mean that network services in Vietnam have never been more important,” said Le Nam Tra, chairman of MobiFone.

    “With Ciena supporting the next evolution of the MobiFone backbone we can provide the scale and reach our consumer and business customers need for regional and international connectivity,” said the chairman.

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  • Vietnam retail sales growth slows

    Vietnam retail sales growth slows

    The growth rate of Vietnam retail sales is slowing, according to official data.

    The Vietnam General Statistics Office says retail trade and services revenue for the first half of 2016 was US$89.6 billion, 9.4 per cent higher than last year.

    But the rate of Vietnam retail sales growth is generally slower than that of the same period last year once inflation is excluded. The net increase would be 7.4 per cent compared to 8.3 per cent last year.

    Also, according to the records, retailing during the first quarter of 2016 was 7.9 per cent lower than last year; 8.3 per cent lower than for the first four months, and 7.8 per cent in the first five months.

    Analysts suggest a reason for the slowing growth could be linked to slowing accommodation bookings and tourist spending, which totalled US$11 billion (up 7.5 per cent). The decline was most evident in some Central provinces, and likely related to the mass death of fish in Nghe An and Ha Tinh.

    Retail sales of goods, on the other hand, were US$68.23 billion (76 per cent of total sales) and were 9.7 per cent higher than the period of January to July of last year.

    Food, household appliances and garments saw positive increases with 12.9 per cent, 10 per cent, and 12 per cent respectively.

    GSO director Nguyen Bich Lam said consumer concerns about food safety and environmental pollution partly affected the retail growth in accommodation and catering. Locals tended to have home-cooked meals and became more careful in spending their money on tourism services.

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  • Expansion brings some cash for VinMart

    Expansion brings some cash for VinMart

    Vietnamese supermarket chain VinMart has tripled its revenue in the second quarter of this year.

    Parent VinGroup says the group achieved VND2,465 billion (US$110.6 million) in sales of its supermarkets and convenience stores, a 226 per cent increase compared to the same period last year.

    One of the reasons for VinMart’s growth is the group’s strategy to bring its convenience stores VinMart+ to “every corner of Vietnam”, making it a part of consumers’ daily shopping routines.

    Up until July, after almost two years of operation, VinMart has 50 supermarkets and 830 convenience stores nationwide, which means the company has been opening three supermarkets a month and 46 c-stores.

    A standout of VinMart+ is the fresh food, distributed by green brand VinEco. The products are exclusive greenhouse vegetables, grown using Israeli technology.

    With this self-supply and self-control strategy, VinGroup has been creating a strong competitive strength in the market.

    Besides VinMart, its other divisions contributed to VinGroup’s profit in the quarter of VND 2,926 billion ($131.2 million): VinHomes, Vincom Retail, Vinpearl Land, Vinschool, Vinmec, and VinPro.

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  • 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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  • Thailand’s Central declares $89.6 mln tax on Big C Vietnam deal

    Thailand’s Central declares $89.6 mln tax on Big C Vietnam deal

    Thai retail giant Central Group has declared around VND2 trillion (US$89.6 million) in tax on its acquisition of Vietnam’s biggest foreign-owned supermarket chain Big C, local media reported.

    Big C Vietnam, which declared the tax on behalf of its new owner, has paid VND380 billion ($17.03 million) of the amount, Tuoi Tre newspaper said on Monday, citing an unnamed source from the Ministry of Finance. The rest is expected to be collected later.

    The source did not comment on why the sum was much lower than the official estimate of VND3.6 trillion ($159 million) by the ministry’s General Department of Taxation.

    In June the department sent letters to Central Group and France’s Casino Group, the chain’s former owner, demanding them to pay tax on the $1.04 billion deal and threatening to block the ownership transfer.

    It reportedly said in the letters that the companies were far behind their tax obligation. According to the department, Vietnam’s laws stipulate that businesses have 10 days to pay taxes on the sale of their holdings after their negotiation is completed. The Big C deal was made public on April 29.

    At the end of last month, the tax authority reminded the companies of the tax again, saying they will be fined 0.05-0.07 percent per day for late payment.

    Big C is the largest foreign-owned retail chain in Vietnam with 33 supermarkets and 11 convenience stores. Many big players such as Vietnam’s largest retailer Co.op Mart, Japan’s Aeon, Thailand’s TCC and South Korea’s Lotte were interested when Casino announced its sale plan at the end of last year.

    Vietnamese electronics retailer Nguyen Kim, 49 percent owned by Central Group, also joined the Thai conglomerate in the acquisition of Big C. Their respective stakes have not been disclosed.