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Tag: Vietnam

  • Ted Baker flourishing worldwide

    Ted Baker flourishing worldwide

    North America has led a solid increase in sales for Ted Baker in its first half year.

    With group revenue increasing £32.7 million to £259.5 million, the UK-headquartered fashion retailer has proved once again that its overall strategy and business investments across its three distribution channels are paying off.

    The retail business grew in value to £191.1 million, boosted by an almost 30 per cent increase in North American retail sales, while wholesale rose to £69.4 million and income from licensing increased to £7.9 million.

    Ted Baker’s store expansion continues as average retail square footage rose 9.7 per cent with store openings in the US, Canada and China, the addition of department store concessions in the UK, Europe and Asia and licensee store openings in newer territories South Africa and Vietnam.

    Ted Baker’s premium design aesthetic and almost aspirational appeal continues to attract shoppers.  Products are recognisably and distinctively Ted Baker, making them highly desirable to its loyal customer following. Ted Baker also has an advantage over rivals such as Reiss and Whistles, in terms of its ability to appeal to women and men fairly equally across a variety of products as evidenced by growth across both womenswear (up 13.8 per cent to £148.9 million) and menswear (up 15.3 per cent to £110.6 million). The brand is also gradually positioning itself as a lifestyle brand, with expansion into categories such as homewares, stationery and luggage. Its distinctive aesthetic translates well into these complementary categories and will enable Ted Baker to create newer sources of revenue in a challenging clothing market.

    eCommerce is hugely valuable and is a particularly stand-out element of the business. Investment in design, personalised content and language specific websites, the first of which launched in Germany during the half, further enhances the online experience. Initiatives such as its newly launched interactive video where customers can shop autumn/winter products as they watch further set Ted Baker apart from competitors.

    Ted Baker’s products are typically smart, design-led and chic, and with Christmas coming up – will be top of mind for customers for partywear, occasions and gifting. As the retailer continues to invest in product and build brand awareness of its core offer in new and emerging markets, Ted Baker is well-positioned to continue on its upward trajectory over the second half year.

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  • Vietnam, Indonesia to lead Southeast Asian eCommerce

    Vietnam, Indonesia to lead Southeast Asian eCommerce

    Vietnam and Indonesia are tipped to become the largest Southeast Asian eCommerce markets within the next five years.

    Stunning growth in both markets is predicted in a report by global research company Frost & Sullivan which expects the broader region’s eCommerce market to double within five years.

    By 2020, the total revenue from B2C eCommerce in the six largest Southeast Asian countries, including Viet Nam is expected to grow at nearly 18 per cent, from US$11.2 billion in 2015 to $25.2 billion.

    Growth will be driven by an astounding rate of digital adoption, young and tech-savvy consumers, and increasing disposable incomes.

    Vietnam already has

    There are 127 million SIMs in circulation in Vietnam and nearly 40 million active internet users.

    “eCommerce players are beginning to compete beyond price points and logistics and moving into new areas such as Online-to-Offline (O2O) e-commerce and loyalty programmes,” says Cris Duy Tran, lead consultant in eCommerce and digital transformation at Frost & Sullivan Asia-Pacific.

    But he says eCommerce companies face significant challenges across the markets with many existing players struggling to achieve profitability. He singled out the failure of Foodpanda in VIetnam and Groupon in Thailand and the Philippines. Low levels of credit card ownership and distribution challenges also made it difficult to run online businesses profitably.

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  • PJ’s Coffee expands to Vietnam

    PJ’s Coffee expands to Vietnam

    The New Orleans chain PJ’s Coffee has opened its first shop in Ho Chi Minh City, Vietnam.

    The cafe is located in the Union Square shopping mall, while a second shop is planned to be opened in December. Within five years, PJ’s plans to open 10 more shops in Vietnam and 10 more in other Southeast Asian markets  before moving into the Middle East.

    The company says the Vietnamese population’s passion for coffee – with similar daily consumption habits to people in New Orleans – has encouraged the expansion plan.

    The Vietnam PJ’s Coffee shop menu features pastries, teas and iced, frozen and hot coffee drinks.

    PJ's coffee Vietnam

    PJ’s, now under the management of Ballard Brands, was founded in 1978 by Phyllis Jordan and operates 85 coffee shops in seven states of the US.

    In Vietnam, the chain is managed by master franchisee Rick Yvanovich.

  • Việt Nam retail market attracts international investors

    Việt Nam retail market attracts international investors

    Việt Nam’s growing retail market has attracted the attention of foreign retailers. A series of famous retailers from Japan, Thailand, South Korea and France have flocked to the country, hoping to penetrate the market, a recent JLL Việt Nam report said.

    As penetration of foreign retailers into the country has increased, fierce competition in the retail space has become more intense. This will put the retail market to the test and only retailers with the right positioning to meet market demand will gain market share.

    In 2014, the Berli Jucker acquisition of Metro Cash & Carry Việt Nam for an enterprise value of 655 million euro (US$700 million) – the largest-ever Merger & Acquisition deal in Việt Nam at that point – signalled entry of the Thailand retailer into the country.

    Later, another Thailand giant, Central Group, acquired Nguyễn Kim Trading – Việt Nam’s top electronics retailer, and BigC Việt Nam- the second largest supermarket chain in terms of store number in the nation.

    In October 2015, Emart – the leading South Korean retailer – officially marked its entrance with a US$60 million shopping centre in north HCM City. Also from South Korea, Lotte Mart is quite successful with 11 supermarkets, a number expected to increase to 60 stores by 2020.

    Most Japanese investors consider the success of Aeon in Việt Nam a praiseworthy case in overseas investment. Aeon has four malls and expects to reach 20 malls before 2020. Also from Japan, Takashimaya arrived in July 2016 as anchor tenant of downtown HCM City’s Saigon Centre retail mall.

    Adding to three Simply Mart stores in HCM City, AuchanSuper, a major retail brand from France, is planning to open another 17 supermarkets by end-2017 in the city and 20 stores by 2020 in northern Việt Nam.

    Thanks to increasing disposable incomes, big fashion brands such as Gap, Mango and Topshop have become the top choice of many young Vietnamese. In September 2015, Zara opened its first flagship store in HCM City. H&M will reportedly enter Việt Nam early next year.

    With 90 million people, Việt Nam has attracted retailers with its relatively young population – 70 per cent are aged between 15 and 64 years – who promise to be a key driver of robust market growth. Việt Nam’s urban population is expected to grow 2.6 per cent annually from 2015 to 2020, the highest rate among regional peers.

    “Increasing disposable incomes, rapid urbanisation and rising living standards make Việt Nam one of the most dynamic emerging economies in South East Asia,” says Bùi Trang, Commercial Leasing Director at JLL Việt Nam.

    According to the Boston Consulting Group, Việt Nam has the fastest growing middle and affluent class (MAC) in the region, which will double in size between 2012 and 2020, from 12 million to 33 million. MAC consumers, whose income is VNĐ15 million (US$700) or more a month, will be a key group of potential customers for retailers.

    Việt Nam e-commerce is set for strong growth thanks to its growing consumer and online population. According to the Nielsen’s report, nine out of ten consumers in Việt Nam (91 per cent) own smartphones, compared to 82 per cent in 2014, and the rapid up-take of connected devices, especially smartphones and tablets are instrumental in media consumption shifting.

    “Significantly increasing the amount of the credit card holders has also had an impact on the change in consuming behaviour. It is observed that people now are more willing to spend as they can afford more with credit and it tends to make shoppers less canny,” she said.

    Additionally, increasing international arrivals and continuously improving infrastructure are also factors that make Việt Nam an alluring market for retailers.

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  • Owndays Europe marks first foray outside Asia-Pacific

    Owndays Europe marks first foray outside Asia-Pacific

    After rapidly building a network of stores across Asia, Japanese eyewear retailer Owndays has made its European debut.

    Owndays Europe has opened its first store in the Netherlands, the design largely true to its Asian format and its simple pricing model seamlessly converted into local currency with frames and lenses paired at between 98 euros and 198 euros.  A 20-minute “quick processing” promise is also included in its in-store marketing, two two promises being the eyewear chain’s unique selling points.

    Owndays Netherlands 1

     

    The 80 sqm Dutch store opened last week in a traditional street-front location, rather than a shopping mall, where most of its stores are located in Asia; at Passage in The Hague, a trendy area bustling with retail and food & beverages establishments.

    Owndays Europe plans to open 30 stores in the Netherlands in the next three years.

    The brand began its international expansion just three years ago and is already trading in Singapore, the Philippines, Australia, Vietnam, Taiwan, Thailand, Cambodia and Malaysia, making the Netherlands its 10th market.

    owndays-netherlands

    Owndays Europe stores carry more than 1500 designs of frames ranging from basic and functional to stylish and fashion-forward so customers can pick the right pairs of glasses to suit their lifestyles or to match occasions and functions. With a team of in-house designers based in Japan, the brand regularly adds new designs to its existing collections so customers always see something new each time they visit the shop.

    Owndays already has more than 170 shops in Asia-Pacific and sells more than 1.5 million pairs of glasses a year. It is one of the few optical retailers internationally which has adopted an entirely private label system, managing the entire process from design and manufacturing to inventory management and retail.

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  • Revenue up 36pc for Zalora parent

    Revenue up 36pc for Zalora parent

    The Lazada and Zalora parent is paring back its losses after divesting operations in two markets.

    With operating losses nearly halved and excluding disposals in India and Southeast Asia, Global Fashion Group (GFG) has reported a 36.3 per cent rise in net revenue.

    Backed by Rocket Internet and comprising online fashion retail businesses in emerging markets, GFG says net revenue in constant currency rose 47.5 per cent to 456 million euros (US$512.73 million).

    GFG sold interests in Thailand and Vietnam for an undisclosed amount to retailer Central Group in April. It also sold its Indian fashion business Jabong to Flipkart for $70 million in cash in August.

    GFG raised 330 million euros in funding from existing investors in July, cutting the holding of Rocket Internet to 20.4 per cent.

    The company says adjusted losses before interest, taxes, depreciation and amortisation (EBITDA) narrowed to 67.6 million euros in the first half of this year from 120.5 million euros in the same period last year. The EBITDA margin improved to a negative 14.8 per cent in the first half from minus 33.4 per cent, which the company says was driven by tighter inventory management and cost-cutting.

  • China eyes Vietnam’s hundred-billion dollar retail market

    China eyes Vietnam’s hundred-billion dollar retail market

    Miniso has been mentioned repeatedly in local newspapers. The retailer has announced its official presence in Vietnam through a franchise contract signed with Le Bao Minh Group.

    Le Bao Minh’s representative said it plans to open 13 shops in large cities in 2016. Miniso’s official website shows that the company was established by a Japanese named Miyake Junya and a conglomerate from China.

    In April, Alibaba, China’s biggest e-commerce group, spent $1 billion to obtain the right to control Lazada, a well-known e-commerce website.

    Alibaba has shown strong determination to expand its business in SE Asia.

    According to the US Securities And Exchange Commission, Alibaba has outstripped Walmart to become the world’s largest retailer. Its online transaction value accounts for 10 percent of retail transactions in China.Analysts commented that with the investment from Alibaba, Lazada Vietnam would have more opportunities to develop because it would be able to spend more money on advert campaigns and increase goods supply from China.

    While foreign retailers flock to Vietnam, Vietnamese retailers are not yet ready for competition. Some retail chains have been either shut down or sold to foreign partners. There are only several Vietnamese brands still existing, such as Vinmart, Co-op Food and Satra Foods.

    Meanwhile, Vietnamese e-commerce firms, though having been operational for 10 years, still cannot hold the upper hand over Lazada.

    According to Vu Vinh Phu, chair of the Hanoi Supermarket Association, the Vietnamese consumer market is attractive to foreign retailers, as retail turnover was $100 billion last year.

    Vietnam has a large population (over 91 million people), of which 60 percent are young consumers, per capita income at $1,890 in 2015, fast pace of urbanization, and growing middle class.

    Phu noted that retailers now pay special attention to the rural market which is large and unexploited. Online sales have become a growing tendency, which gives goods suppliers opportunities to approach consumers more easily.

    Chinese goods have been mostly penetrating the Vietnamese market across border gates. However, they now have to compete fiercely with Thai and Japanese goods.

    Le Phung Hao, chair of the Vietnam Marketing Association, anticipated that more Chinese goods would be brought to Vietnam thanks to the presence of retail groups from China.

    Instead of dealing with low-quality and smuggled goods flown from remote areas, Vietnam will have to compete with Chinese goods available at luxury shops in large cities.

     

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  • Lazada partners with 40 Vietnamese retailers

    Lazada partners with 40 Vietnamese retailers

    Southeast Asian eCommerce giant Lazada has partnered with 40 Vietnamese retailers to expand their businesses.

    The partner businesses include electronics retailers Cho Lon, Tran Anh, Home Center, cookware chain Lock&Lock, and jeweller PNJ.

    Lazada expects the deals will help it cater better to local consumers, developing its business throughout Vietnam market with the message “whatever you buy offline, you can buy it online”.

    Vietnamese retailers, on the other hand, hope to expand their customer bases via the Lazada brand and reputation. Kid Plaza, a baby product supplier, says it has tripled its monthly revenue after selling its items on Lazada.

    Founded four years ago, Lazada Vietnam has become one of the biggest online shopping sites in Vietnam, sharing the US$4 billion worth market last year. Through the new deals, Lazada plans to claim at least 25 per cent of Vietnam’s online shopping spend.

    Lazada’s plan seems achievable when almost 50 per cent of Vietnam’s 93 million population are using the internet. Research predicts that by 2020, 30 per cent of the population will regularly buy goods and services online, with an average spend of US$350 per year. This will take online retail sales to $10 billion.

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  • K Line opens cold storage in Vietnam

    K Line opens cold storage in Vietnam

    K Line announced that construction of a cold storage warehouse in Ho Chi Minh City, Vietnam, by CLK Cold Storage Co. Ltd. – a joint-venture established by Kawasaki Kisen Kaisha, Ltd. (“K” Line), Cool Japan Fund Inc. (“Cool Japan”) and Japan Logistic Systems Corp. (“Japan Logistic Systems”) – has been completed, after which operations start.

    Persons involved in the project, including Mr. Tran Thanh Liem, Chairman of Binh Duong Province, Vietnam, Mr. Satoshi Nakajima, Council General of Japan in Ho Chi Ming City, Mr. Eiichiro Nakanishi (Chairman) and Mr. Hirotake Nakanishi (President) of Japan Logistic Systems Corp., Mr. Nobuo Sugiuchi (Senior Managing Director) of Cool Japan, as well as parties concerned, joined Eizo Murakami, President & CEO of “K” Line, at the completion ceremony.

    K Line’s warehouse location

    About 22 km from central Ho Chi Minh City (about one hour via Route 1). Good access from Cat Lai Port and the international airport. 

    Warehouse features

    As a Cold Storage project based on an all-Japan set-up, this was the first time in Vietnam for both the “hard” and “soft” aspects, from design and construction to cooling equipment and operation of the warehouse, to be led entirely by Japanese companies. Various protective measures for goods as well as energy-saving measures have been taken based on the know-how accumulated by Bangkok Cold Storage Ltd, member of the “K” Line Group, which has been operating Cold Storage services in Bangkok, Thailand since 1989, to safely and hygienically store the precious merchandise of our customers.

    In consideration of environmental conservation, natural refrigerants (NH3 and CO2) have been adopted.  The temperature can be controlled to address the various needs of customers from −50°C to +25°C.  This is the first facility to provide super frozen storage room in Vietnam.

    The company will continue to contribute to the promotion of Japanese foods and ingredients in Vietnam, which is expected to grow even further in the future, using the knowledge and network of Japan Logistic Systems, which has been operating in Vietnam for over 20 years, and “K” Line group’s marine and air transport services.

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  • Vietnamese camp outside Singapore shops in wait of iPhone 7

    Vietnamese camp outside Singapore shops in wait of iPhone 7

    Demand among tech-geeks is soaring since Apple’s release of the iPhone 7 and 7 Plus last week, and unhinged Apple fans in Vietnam are no exception.

    Many are determined to be the first to buy the new device. However, Apple doesn’t have a direct retail presence in the country, so the eager fans have to go the extra mile to get their hands on a new phone.

    Vietnamese dealers and resellers have quickly spotted a lucrative business opportunity here and are willing to pay line-sitters who may have to camp outside outlets in Singapore for a couple of days leading up to the iPhone’s launch there this Friday.

    Some Vietnamese living in Singapore have posted ads on Facebook asking for VND2 million ($90) to camp out overnight to be the first in line for the new phone.

    “It seems long to wait in line for 24 hours. But you will stay occupied playing card games, shooting the breeze with your fellows and even shopping in the mall,” a Facebook account named Son Le said in an advertising status.

    Any time that Apple launches a new product, there is an influx of such requests posted in the online technology community, and this time Apple’s true aficionados in Vietnam are still impatient to get those phones.

    “We will handle paying the bills. All you have to do is to be the first in line. And more importantly, you can get paid much higher for an iPhone 7 Plus in the new color Jet Black,” Thang, a reseller in Hanoi, told VnExpress.

    Quang, a dealer in Ho Chi Minh City, said the interest in line-sitters has been growing in the weeks leading up to the launch this weekend. He said due to the whopping demand, people will ask to be paid much more than than they were last time and securing a spot in the line is important, so Quang decided to fly his staff to Singapore.

    “This time we will probably have to wait in line for a couple days,” said Quang. “The business is also quite risky. The price could slump heavily by a few million dong. There is a chance we could make a loss on this,” he said.

    vietnamese-apple-fans-pay-people-in-singapore-to-buy-iphone-7s

    A group of Vietnamese camp outside a reseller store in Singapore during an iPhone launch in 2015.

    As many have witnessed during the last couple of iPhone launches, a growing number of resellers in Vietnam have been hiring line-sitters in Singapore to sell the phones on the domestic market.

    A retailer in Hanoi, after careful consideration, chose to turn to Vietnamese students in Singapore who want to make some cash to cover their tuition fees.

    “It costs much more to fly from here to Singapore,” said a Hanoi-based re-seller, adding that it is about $100 cheaper to take a direct flight from Ho Chi Minh City to Singapore than it is from Hanoi.

    “We have no choice but pay people who are currently living on the island to queue up and send just one person from here over with the money,” he explained, adding that he has five Vietnamese students working for him.

    In addition to camping out for the new iPhone, there are other opportunities to earn some money for anyone who is about to travel from Singapore to Vietnam next week. They can make a quick buck of about $25 for a phone just by taking it back with them on board.

    Shops in Hanoi are charging consumers double the price quoted by Apple for an iPhone 7 Plus 256 GB, with a promise that buyers will be the first Vietnamese to get their hands on a new iPhone.

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  • Thai auto sales pose dilemma for Vietnam

    Thai auto sales pose dilemma for Vietnam

    Statistics from the General Department of Vietnam Customs show that the foreign sector controls roughly 80% of the local car and automobile (excluding motorbike) retail market with a sales volume eclipsing all of Southeast Asia.

    thai auto sales pose dilemma for vietnam hinh 0

    Auto distributors and original equipment manufacturers (OEMs) based out of Thailand hold the largest share of the retail market followed by the Republic of Korea (RoK) and China in descending order of magnitude.

    Compared to Vietnam, Thailand’s success at attracting top brands the likes of Ford, Toyota, Honda and Nissan, is in large part attributable to the countries more favourable tax structure.

    Taxes and fees account for up to 50% of the final sales price of a vehicle manufactured in Vietnam, a figure that is more than 20% higher than the comparable taxes and fees charged in Thailand.

    Prior to the emergence of the ASEAN Economic community (AEC) the Vietnam government was able to regulate the local auto industry via the imposition of import tariffs and local taxes as appropriate.

    However, with the arrival of the AEC at the beginning of 2016 and the elimination of import tariffs pursuant to the ASEAN Trade in Goods Agreement, Thai auto sales in Vietnam have shot up rapidly.

    Under the agreement, the import tax on automobiles from Thailand and other ASEAN members – Myanmar, the Philippines, Malaysia, Singapore, Laos, Indonesia, Cambodia, Brunei and Vietnam – have dropped by 40-50% in 2016.

    They will continue to fall by another 30% in 2017 and be eliminated entirely by the end of 2018.

    Meanwhile, the Vietnam government has not concurrently reduced the taxes and fees on local manufacturing of autos and this explains, in large part, why vehicles produced in Thailand are less expensive.

    Notably, Thailand also has more than 2,000 OEMs, which has aided the country’s rise to become the biggest hub for auto and part exports not only to Vietnam but the entire Southeast Asian region.

    Without a doubt, say many leading experts, after 2018, the complete roll back of the import duty will put ownership of an automobile within reach of the majority of Vietnamese citizens.

    This, they say, could lead to explosive sales growth and a myriad of adverse consequences for the nation.

    It’s problematic because its puts excessive pressure on the public transport infrastructure, overburdens traffic systems and potentially threatens traffic congestion that would choke off commerce.

    Not to mention the threat to public health brought about by pollution and auto accidents, they say, noting the elevated need for the government to advocate strongly for effective policies that reduce auto use throughout the nation.

     

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  • Agatha Paris opens first stand-alone travel retail outlet

    Agatha Paris opens first stand-alone travel retail outlet

    French fashion jeweller Agatha Paris has opened its first stand-alone travel retail store, at Haikou Meilan International Airport on China’s Hainan Island.

    Opened in partnership with Hainan Duty Free, the 20 sqm store has a contract until September 2019.
    Agatha Paris will present its latest collections, including several travel-retail exclusive sets, at the upcoming TFWA World Exhibition in Cannes. The brand showcased a range of stainless-steel jewellery at this year’s TFWA Asia Pacific exhibition in Singapore.

    The brand’s collections are divided into five themes: Iconic, Timeless, Modern Chic, Classy and Sparkle. This year’s collections include African Art Deco, Grand Palais, Opera and Olympia.

    Global head of travel retail Karan Tuli says the brand launched into travel retail three years ago, initially with a sole focus on inflight sales to gain exposure. It has since expanded its network, with 330 points of sale in 25 countries, and listings with 30 airlines. Its 14 ground shop locations in Asia include China, Japan, the Philippines, South Korea and Thailand.

    “Business in Australia, Cambodia, Singapore and Vietnam is on the radar for the coming months,” says Tuli.

    “Southeast Asia and China are seeing fast expansion, and the potential for the brand to grow its travel-retail footprint is more positive than ever. Costume jewellery is a tough category, but recent spending trends have supported a positive outlook for us.”

    King Power Group founder Antares Cheng acquired the Agatha Paris brand in 2006.

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  • Dorothy Perkins Vietnam launches third store

    Dorothy Perkins Vietnam launches third store

    The UK fashion brand Dorothy Perkin has opened its third store in Vietnam after just one year in the country.

    The new Dorothy Perkins Vietnam store is located on level 11 of the Saigon Center, Ho Chi Minh City’s newest downtown shopping mall.

    At the opening, Dorothy Perkins presented its latest Fall Winter 2016 collection featuring velvet as the main material. The collection brings a romantic spirit and dynamic sporty trend to the store.

    Customers shopping at the store on the first week received gifts and giveaways from the brand.

    Dorothy Perkins VN

    Debuting in 1919 in the UK, Dorothy Perkins has 600 stores in the UK and more than 120 outlets worldwide.

    Before the brand’s first outlet at District 7 Vivo City opening last year, Vietnamese customers could only buy its items from online store dorothyperkins.com and the eCommerce site Zalora.vn.

    Dorothy Perkins Vietnam 1

    After just one year, it has been among the most popular international brands recognised by Vietnamese office women in the 25 to 35 age group.

    Dorothy Perkins comes to Vietnam via distributor Maison, which opened the first Dsquared2 store at Saigon Center last month.

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  • South Korean retailer E-mart to invest $200m for retail chain ops in Vietnam

    South Korean retailer E-mart to invest $200m for retail chain ops in Vietnam

    South Korea’s largest discount chain E-mart has committed to invest $200 million in Vietnam, continuing the trend of foreign investors entering the Southeast Asian nation’s rapidly growing consumer sector.

    A memorandum of understanding between E-mart and Vietnam’s Ho Chi Minh City was signed on September 9. Emart will make the investment over the next four years.

    The investment is expected to be used for building new supermarkets and commercial facilities, as well as local social development. E-mart opened a supermarket worth $60 million in Ho Chi Minh City last year, in addition to a toy library in the city.

    The Korean company had earlier said it planned to open 52 stores in Vietnam by 2020.

    E-mart is betting the country’s rapid growth, averaging 5.2 per cent since 2013, driven by a young and urban demographic with higher spending power.

    Vietnam’s growth was the highest among Southeast Asian peers featured in the 2016 Global Retail Development Index conducted by US management consulting firm AT Kearney. Vietnam was seen as the 11th fastest emerging retail market, up from 28th spot two years ago.

    Government data showed that retail sales in the country rose 7.4 per cent year-on-year in August 2016. Consumer spending rose to $116.2 billion, while the retail market was forecast to be worth $109 billion in 2017.

    Free trade pacts signed by Vietnam have encouraged foreign retailers to tap into this liberalizing market. Vietnam fully opened its retail industry in 2015, which is coupled with a lot of tax preferences for investors.

    Japan’s Takashimaya and Miniso have set up retail shops in Vietnam in July. Meanwhile, 7-Eleven is planning a local presence through the franchising route.

    Existing players are opening new outlets, as well as acquiring local businesses. Vingroup, the most active domestic company which launched over 90 stores in 2015, aims to introduce twice as many in 2016. It acquired Maximark and Vinatexmart, two Vietnamese operators, as part of this strategy.

    Thailand’s Central Group had acquired Big C Vietnam for $1.05 billion, along with electronics store chain Nguyen Kim and e-commerce site Zalora Vietnam. Other M&A deals include TCC Holdings buying Metro Cash&Carry Vietnam, and AEON acquiring Fivimart and Citimart.

    Central has since announced that it has halted further investment in  the country and would focus on consolidation.

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  • Starbucks Asia rolls out Teavana

    Starbucks Asia rolls out Teavana

    Starbucks Asia is rolling out Teavana in 6200 stores across its 16 Apac markets.

    Four tea beverages prepared in-store will be offered to the 16 countries, with two or three expected to be sold in each market, the choice up to each one.

    Starbucks acquired US-based Teavana Holdings in December 2012, a “super premium tea” product it says brings “exotic blends, great flavors, wellness and innovation” to customers globally.

    The Asian launch began with China at the end of last month, with Korea and Indonesia following at the beginning of this month. The majority of Asian markets will see the new lines in mid-September, with a Japan launch scheduled for October and India later this year.

    Vera Wang, director, product line innovation at Starbucks China and Asia Pacific said the teas have been developed especially for Asian tastes.

    “We recognise Asian consumers are developing sophisticated taste preferences.”

    While a premium product, pricing will be left to the determination of each market, she said.

    “Pricing (of all Starbucks lines) is determined product by product and market by market.”

    She declined to discuss the company’s expectations for Teavana’s share of Starbucks sales in the region.

    “I’m not at liberty to talk about that. But tea definitely has huge potential for us and we have a lot of confidence going into Asia with Teavana.”

    Starbucks Korea staff promoting Teavana at the Starfield Hanam GL store.

    Besides fresh-brewed tea in cafes, Teavana full-leaf tea sachets will also be sold for take-home use.

    The four launch lines of Teavana in Asia are Matcha & Espresso Fusion (a matcha tea blended with a shot of espresso), Black Tea with Ruby Grapefruit and Honey, Iced Shaken Green Tea with Aloe and Prickly Pear; and Iced Shaken Hibiscus Tea with Pomegranate Pearls.

    Wang said, those core lines would be complemented by other blends selected on a market-by-market basis in the future, depending on customer feedback.

    John Culver, group president of Starbucks global retail said in a statement Teavana represents “a tremendous opportunity to leverage the company’s expertise in creating best-in-class retail experiences, handcrafting custom beverages, and sourcing the finest ingredients, to become a leader in a new category for us”.

    “Just as we’ve done for coffee, this is tea reimagined at Starbucks.”

    Last year, Starbucks’ tea business in the US grew by 12 per cent with all tea categories posting strong growth, led by iced tea at 29 per cent. Building on this and the success of Teavana to date in other parts of the world, Starbucks aims to increase its global tea business to US$3 billion over the next five years.

    Starbucks Teavana will be launched in all stores in Australia, Brunei, Cambodia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, The Philippines, Singapore, Taiwan, Thailand and Vietnam.