Category Archives: Asia

Korean 3D QR codes deliver promotional discount during quiet hours

Periodic lulls in business are a fact of life for most retailers, and we’ve already seen solutions including daily deals that are valid only during those quiet times.

Recently, however, we came across a concept that takes such efforts even further. Specifically, Korean Emart recently placed 3D QR code sculptures throughout the city of Seoul that could only be scanned between noon and 1 pm each day — consumers who succeeded were rewarded with discounts at the store during those quiet shopping hours.

Dubbed “Sunny Sale,” Emart’s effort involved setting up a series of what it calls “shadow” QR codes that depend on peak sunlight for proper viewing and were scannable only between 12 and 1 pm each day. Successfully scanning a code took consumers to a dedicated home page with special offers including a coupon worth USD 12. Purchases could then be made via smartphone for delivery direct to the consumer’s door. The video below explains the campaign in more detail:

As a result of its creative promotion, Emart reportedly saw membership increase by 58 percent in February over the previous month, they also observed a 25 percent increase in sales during lunch hours. Retailers around the globe: One for inspiration?

via In Seoul, retailer uses 3D QR codes and the sun to deliver discounts only during its quiet times | Springwise.

China’s youth high demands for low carbon goods

Businesses have been urged to accelerate their environmental footprinting strategies to include emerging economies, after new research by the Carbon Trust revealed young people in China could hold the key to unlocking mass demand for greener products.

chinese_market_youth

The survey of 2,800 young people across six countries carried out by TNS found 83 per cent of 18-25 year-olds in China would be more loyal to a brand if they could see it was reducing its carbon footprint. In contrast, just 57 per cent of US respondents and 55 per cent of young people in the UK made the same claim.

Globally, 78 per cent of young people said they want their favourite brands to reduce their carbon footprint, but again those in Chinese showed the highest demand for emission reductions with 88 per cent calling on firms to cut their footprint.

South Africa came in second place with 86 per cent of respondents calling on blue chips to reduce their impact, followed by Brazi at 84 per cent. Again the US and UK lagged far behind with only two thirds of respondents demanding more action from big brands.

The analysis was launched just days before the Carbon Trust unveils the first four Asian companies to receive the Carbon Trust Standard, its independent label awarded to companies that reduce their organisational carbon footprints year-on-year.

Tom Delay, Chief Executive of the Carbon Trust, said the survey results were “startling”, in that they revealed how Chinese consumers could lead the global demand for greener goods.

“Sixty per cent of young adults questioned in China would stop buying a product if its manufacturer refused to commit to measuring and reducing its carbon footprint, compared to just 35 per cent of those in the US,” he said.

“Perhaps it is the Chinese, and not the US. consumer, that really holds the key to unlocking the mass demand for new low carbon products necessary to deliver an environmentally sustainable economy.

“If global brands don’t build international carbon reduction strategies even faster, they risk missing out on the spending power of emerging economies.”

The research also revealed that Brazilian young people showed the greatest demand for companies to be transparent about their action on carbon, with 81 per cent demanding that brands to provide proof they are reducing their carbon footprint.

British young people showed a high awareness of the term “carbon footprint”, but only half claimed to be concerned about climate change.

via China’s youth reveal ‘startling’ demand for low carbon goods – 02 Apr 2012 – News from BusinessGreen.

Virtual Stores Prove a Hit

The virtual store wall in a South Korea Metro Station by Tesco/Homeplus was last year big hit. Now the concept has evolved, and World’s first virtual shopping store – using the walls of Seonreung subway station in downtown Seoul – displays over 500 product, ranging from food to tissue papers.

Customers can choose the delivery time and date – for orders placed before 1 p.m delivery can  be effected the same day – and delivery cost is the same as  more traditional online stores.

“A major perk of this concept is that consumers don’t have to be anywhere near the virtual store to place an order. So, if you want to order replacements of a bottle of water that you have in your hand, you don’t have to stop by the subway station’s store. You just have to scan the bottle’s barcode with the Homeplus app., and then the products are delivered later to home or office.”- Quoted Sitch News

We are sure consumers in Far East markets – like Korea and Japan – welcome this kind of technology and are at their ease with mobile barcode scanning and m-payments, but what about all the other markets? Would for istance consumers in France or Spain quickly adopt this kind of purchasing behaviour? What is your opinion about this?

Marks & Spencer Opens Sustainable Learning Store in India – Green Retail Decisions

Marks & Spencer (M&S) opened its first high street (main street) sustainable learning store in India at South Extension Market in Delhi – as part of the company’s drive to become the world’s most sustainable major retailer by 2015.

The three-floor, 20,000 square foot store hosts a range of sustainable construction and design features to reduce energy usage and waste, according to a company statement. The store will provide M&S with valuable insight into sustainable building practices in India, which it will use to support future projects in the country.

The store is one of only a few retail outlets in India to build to American standards: it has applied for a Gold LEED* rating, which recognizes its sustainable features including:

Heat transmitting glass, helping to maintain in-store temperatures and cut UV ray penetration by 90 percent

  • Solar reflective tiles that keep the store cool
  • Use of ENERGY STAR certified equipment
  • Energy meters to monitor the store’s energy performance
  • Rain water harvesting
  • Dedicated recycling bins
  • The use of rapidly renewable raw materials, such as engineered wood
  • Excellent public transport links and reserved parking spaces for car pools

“We’re delighted to open our new store at Delhi’s premier shopping destination,” said Yogesh Yadav, M&S Store Manager at South Extension Market. “It’s a pleasure to welcome customers across Delhi to our first sustainable high street store, which not only helps the environment but also provides us with invaluable learnings as we continue to build our presence in India.”

M&S has committed to opening two new sustainable learning stores in the UK each as a part of its “Plan A,” M&S’ environmental and ethical program, launched in 2007 and extended in March 2010. M&S opened its first sustainable learning store in Sheffield in April 2011, followed by its Stratford City store in London in September 2011. Plan A takes a holistic approach to sustainability focusing on involving customers, involving all areas of the business and tackling issues such as climate change, waste, raw materials, health and being a fair partner.

In November 2011, M&S opened its first international sustainable learning store at Market City Mall in Bangalore. The 20,000 square-foot clothing, home and gifts store features energy efficient lighting, using 15 per cent less energy, energy efficient air conditioning, water saving technology and high levels of construction waste has been recycled. The store is aiming for a LEED rating of Silver.

Marks & Spencer opened its first store in India in 2001 and in April 2008 signed a Joint Venture with Reliance Retail to form Marks & Spencer Reliance India Pvt Ltd. M&S now has 25 stores located in Delhi, Gurgaon, Noida, Amritsar, Mumbai, Pune, Kolkata, Bangalore, Chennai and Hyderabad.

via Marks & Spencer Opens Sustainable Learning Store in India – Green Retail Decisions.

A more natural Coles for healthier consumers

Despite extensive research conducted by the Food Standards Australia proving there are no adverse affects to consuming products with added MSG (monosodium glutamate) and artificial colourings, Coles has removed both ingredients in direct response to consumer concerns.

Lydia Buchtmann, communication adviser at Food Standards Australia, told FoodNavigator-Asia that the government food regulator has conducted “rigorous safety reviews of MSG and colours showing that they are safe for the general population.”

She added that it is possible a few consumers may experience intolerances but that they would not be life threatening like major allergies.

The retail giant’s private label range is now entirely free from artificial colours and MSG, following a five-year project to reformulate all of its own food and beverage brands.

‘Listening to our consumers’
“Our customers are clearly concerned by food additives and the effect they believe they have on their health. A significant number have indicated that they or their children have experienced reactions to artificial colours and MSG,” Jackie Healing, quality manager for Coles said.

This move is simply a reaction to this, Healing added.

The supermarket noted that research showed 91% of customers were worried about consuming products with added MSG and artificial colours, with 76% avoiding such products.

Vanessa Walles, marketing manager at natural ingredients supplier Chr Hansen Australia, said “Coles are being pro-active by taking this stance, it is not because they have to,” and consumers will appreciate this.“It certainly sends a very positive message that Coles is listening to consumer needs and moving with the market expectation of natural colours,” Walles said.

Natural moves
There are no laws against the use of MSG and artificial colourings in food and beverage products in Australia.

Food manufacturers are just required to label a food when MSG is added, either by name or by its food additive code number 621. Walles noted however, that consumer pressure fuelled by media focus on artificial colours and MSG has created a market demand for products free from these additives.

“Natural is the way the colours market is moving”, Walles said.

Add to this, the Southampton Six ruling in the EU where manufacturers using artificial colours have to provide the warning label, ‘may have an adverse effect on activity and attention in children’, and there is a burgeoning pressure towards natural products, she said.

Similarly Aldi’s removal of artificial colours may have been an influencing factor, she added.

“Many branded products have already made the switch from artificial to natural colours, however there are still many products to follow suit,” Walles said.

via Coles ‘goes natural’ for consumers.

India Lets Starbucks, Ikea Open Wholly Owned Stores After Wal-Mart Reverse

India abandoned a rule against foreign single-brand retailers operating stores without a local partner, paving the way for global companies including Starbucks Corp. and Ikea.

The government ratified a Nov. 24 cabinet decision to raise the ownership limit to 100 percent from 51 percent for single- brand, Trade Minister Anand Sharma said in a statement yesterday. The new rules take effect immediately and require the companies to use smaller Indian companies for at least 30 percent of procurement, he said.

Wal-Mart Stores Inc. , Carrefour SA and other foreign chains are still excluded from India’s $400 billion retail market after an attempt last year to change the law failed. Prime Minister Manmohan Singh’s administration has struggled to advance its initiatives amid opposition from its own allies and a corruption scandal that paralyzed parliament.

“This is a welcome move with a clear potential to lift the general mood in the economy,” Rajan Bharti Mittal, managing director at Bharti Enterprises, Wal-Mart’s Indian partner for wholesale hypermarkets, said in an e-mailed statement. “We hope the initiative is a precursor to further liberalization in the sector in the days to come.”

Pantaloon Retail India Ltd., India’s largest retailer, gained in Mumbai trading after the announcement. The stock rose as much as 10 percent, the most since Nov. 25, while Shoppers Stop Ltd.  surged 20 percent. Trent Ltd., which has a franchise agreement with Tesco Plc, rose as much as 6.9 percent. India’s benchmark Sensitive Index rose 0.4 percent.

Waiting for Multi-Brand

“People think that this would lead to a positive stance on multi-brand retail soon,” Sameer Narang, an Mumbai-based analyst with HDFC Securities Ltd. said in a telephone interview. “My opinion is that it’s not coming any time soon, given the way things went the last time the government tried to introduce it, I doubt a lot of traction will be seen on it.”

Starbucks would compete in India with operators including Lavazza SpA’s Barista Coffee Co. and closely held Cafe Coffee Day. The Seattle-based coffee chain said in November it intended to open its first store in India this year.

“Ikea welcomes the decision from the Indian government to allow 100 percent FDI in single-brand retail,” Nivedeeta Moirangthem, the furniture and housewares retailer’s India spokeswoman said in an e-mailed statement. India is a very interesting potential retail market for the Ikea Group.’’

Calls and e-mails to the Starbucks public-relations team in Seattle weren’t immediately answered. Starbucks signed an agreement with India’s Tata Coffee Ltd. in January 2011 to source beans and consider opening stores.

via India Lets Starbucks, Ikea Open Wholly Owned Stores After Wal-Mart Reverse – Bloomberg.

How fast is the Chinese market changing?

According to a recent McKinsey’s survey about Chinese consumers, Chinese have taken to consumerism with ease, embracing thousands of new products, services, and brands. Three findings stood out.

Even in the face of rising inflation, Chinese consumers are more confident this year than in 2010 about their financial prospects.

the survey shows that the number of respondents who choose to spend more—buying in greater quantities, more frequently, or more expensive items in a given category—is holding firm. Whereas last year’s survey showed that consumers offset higher spending in some categories by spending less in others, this year there appears to be much less rebalancing.

Among urban consumers, the number of first-time buyers—a group that has been a major driver of category growth in China—is declining. as so many products are now both available and within the financial reach of large numbers of consumers. Big variations in the importance of first-time buyers have opened up, depending on the category and geographic region. At the geographic level, the penetration of certain goods may be high in China’s more economically developed regions, but plenty of consumer-conversion opportunities remain in less developed ones, which the government has targeted for higher economic growth

 

Finally, although brand awareness is rising, we see little sign that brand loyalty is following suit. In fact, more and more consumers choose among a growing number of favorite brands. The survey shows the extent to which consumers value brands more than price or channel, largely because they believe that branded products are safer, of higher quality, and more reliable than nonbranded ones. But faith in brands still does not translate into brand loyalty. In fact, both the number of consumers who always choose from among a relatively small set of brands—whom we refer to as “repertoire loyalists”—and the number of brands in their repertoire continue to rise. The average Chinese consumer now chooses among three to five brands in any given category, compared with two to three brands two years ago. In some categories, such as apparel, where luxury brands have grown hugely popular, the contrast is sharper still.

To succeed in this environment, executives will need to understand where the growth prospects lie, both at the category level and in different geographic regions. Only then will companies be able to prioritize resources and tailor strategies appropriately, to strike a balance between building mass appeal and meeting the needs of specific consumer groups, to focus on perceived value rather than absolute price, to modernize marketing tools for the Internet age, and to embrace rapidly growing online sales channels quickly. Companies must have both the flexibility to adapt and the skills to innovate to keep in step with the Chinese market’s exciting development.

TWG Tea leads the way in tea luxury

TWG is a luxury tea brand like no other.  It is a luxury concept that incorporates an international distribution network to professionals, unique and original retail outlets, exquisite tea rooms and tealeaves of every name for you to take home and enjoy too. The TWG stands for The Wellness Group and anyone who has been to one of their amazing outlets certainly feels good afterwards.

They have recently opened up several new premium and expensive tea rooms at the luxury Shoppes at Marina Bay Sands (Singapore’s premium version of a Las Vegas integrated resort and much more successful). There is no stopping their march to place tea at the heart of all that wealthy Asian residents aspire to. Visitors and wealthy residents alike queue for hours just to experience afternoon tea at TWG.

TWG offers over 800 single estate fine harvest teas and exclusive blends, as well as tea patisseries and other tea infused delicacies. Ironically England, the home of tea, has a long way to go to match the TWG experience. Fortnam and Mason don’t even come close. They have one boutique at Harrods but it’s really a Singaporean experience.

You name it, TWG have a tea called it!

TWG Tea combines the best of Asian and European traditions of elegance and beauty on which it is based and have some of the most amazing names that could possibly be imagined for their products. Drinking tea called Weekend in Casablanca tea or Silver Moon Tea, Christmas Lights tea or  Immortal Moment tea, Geisha Blossom tea or Valentine Breafast tea, Miracluous Mandarin tea or Happy Birthday tea is just so much more refined and exotic than PG Tips or Lipton!

via TWG Tea leads the way in tea luxury | Chris Reed on Partnership Marketing | Brand Republic blogs.

Where are Retail’s Hottest Emerging Markets?

Wondering whether to open your new fashion store in China or in Brazil but you don’t have any clue? The annual A.T. Kerney’s Retail Index  provides you with a detailed list of the most emerging countries for apparel retail.

The A.T. Kearney Global Retail Development Index (GRDI)™ ranks the top 30 emerging countries for retail development and identifies windows of opportunity for global retailers to invest in developing markets. The GRDI is unique because it doesn’t just identify which markets are bigger or richer, but rather which markets are hotter and bursting with opportunity. The full annual report can be read at this link, but let’s take a quick look at what the report shows.

 

China ranks as the most attractive emerging market for apparel retailers according to a study by global management consulting firm A.T. Kearney. Its first place ranking was driven by the country’s large population and the growing disposable income of the middle class. With its compound annual growth rate of more than 20 percent in recent years, apparel retail in China has grown at a rapid pace, and this trend is expected to continue for the next five years.

China was followed in the ranking by two Middle East Countries, U.A.E. and Kuwait, then by Russia and Saudi Arabia.

The United Arab Emirates holds the second position in the 2011 Apparel Index, driven by a population with a high disposable income and immense fashion consciousness. The expatriate populace and tourism in particular are driving forces of consumption in this market. Additionally, the UAE is a regional commerce center in the Middle East, and is a preferred market for entering the Middle East as well as testing new products and retail formats.

Kuwait is ranked #3 in the Apparel Index. Key factors driving retail growth in Kuwait are a favorable long-term economic outlook, a sophisticated consumer base with high levels of disposable income and fashion awareness, more women entering the workforce, and a significant expansion in retail real estate. The gross leasable retail space in Kuwait has expanded from 345,000 square meters in 2006 to 1.15 million square meters in 2010.

The remaining top ten markets in the 2011 A.T. Kearney Retail Apparel Index are Russia, Saudi Arabia, India, Brazil, Turkey, Vietnam and Chile. (Source: A.T.Kerney)

Coffee and tea drinking habits in Asia: when culture matters.

Evening drinking habits differ from country to country, and this is very important when creating customer-centric food Retail concepts, as our DESITA and ECOFFEE projects are. In Singapore, for example it’s not unusual to see coffee shops packed at 11pm/12 midnight every night of the week including weekends. This experience is replicated across many countries in the region from India to Malaysia, Vietnam to Indonesia.

The culture of drinking in Asia is not about alcohol it’s about coffee and tea. It’s still about friends but it’s sober conversation as oppose to drunken ones. There are more coffee shops in Singapore than bars. Coffee shops are growing at a faster rate in India than any other form of F&B outlet. This appears to be down to more affluence, a desire to eat and drink out and a predominantly non-drinking culture. Of course there are a mass of bars in Singapore and across Asia but these tend to be filled with expats and Chinese and focused on certain areas and linked to Karaoke.

Religiously Muslims, Hindus and Buddhists – the main religions across the region – actively prescribe non-drinking of alcohol to their followers. Singaporean’s are just not brought up to get drunk in the way their English and American counterpart’s inparticular are. This in turn leads to a more civilized society, there are no drink related injuries for hospitals to deal with and society to pay for. There is not the violence that happens every weekend in most towns in the UK, no alcohol means that it just doesn’t happen, it’s just not accepted and not desired.

From a marketing point of view it means that if you want to target these people you have to think in a more sophisticated and creative way. Starbucks may be much maligned but they, Costa and other Western brands are growing in Asia at a rate of knots and along with the monster Asia coffee brands like Gloria Jean’s,Café Coffee Day and Coffee Bean are more effective at reaching many Asians than marketing through bars and alcohol. (Source: BrandRepublic; Picture: 4theloveoffood).