All posts by Chris Teoh

5 Reasons India Could Become the World’s Next E-Commerce Giant

Source: WSJ

In a latest report published by the Wall Street Journal, authors Aditi Malhotra and Eric Bellman explain why India could become the next ecommerce giant. Below is a summary;

  1. Only about 20% of Indians have access to the Internet today. This number is expected to rise quickly with the proliferation of cheap smartphones in the market.
  2. Less than 1% of Indians shop online. In comparison, China was at this same level about 7 years ago.
  3. Currently, only 8% of India’s retail sales come from modern trade channels, compared to 20% in China.
  4. 85% of Indians live in small towns with population of less than 500,000. There are typically few or no modern trade channels available in such locations.
  5. Around 14% of Indians access the Internet through smartphones today. The report forecasts that number to rise to 40% in the next 3 years.

Source: 5 Reasons India Could Become the World’s Next E-Commerce Giant – WSJ

Meal-kit delivery Black Garlic launches in Jakarta

Source: Tech in Asia

Black Garlic is a meal-kit delivery service. It sends pre-packaged groceries in a box. All ingredients are portioned and labeled, and there’s a step-by-step guide for each dish. The idea is to mix convenience with the joy of cooking.

The target audience for this startup’s product is arguably narrow. It’s a product for busy urban folks who don’t want to miss out on the experience of a healthy, home-cooked meal.

The box contains three meals for two and costs IDR 325,000 (US$24). That makes roughly US$4 per individual meal. Delivery is free. The price is comparable to what one would pay for one meal at a mid-range restaurant in Indonesia.

According to CEO Michael Saputra, urbanization and more demand for organically-grown food indicate the emergence of LOHAS in Indonesian cities.

Source: Meal-kit delivery Black Garlic launches in Jakarta | Tech in Asia

 

E-shopping discount cars: China’s luxury auto dealer and Alibaba to offer pricey wheels at online sale prices

Source: The South China Morning Post

Yongda, a leading Chinese luxury auto service provider listed in Hong Kong, will sell cars online through Alibaba’s Tmall platform, a move that comes as the mainland fever for pricey wheels cools.

The two giants will allow customers across the nation to buy a car at a single price and pick it up at the nearest Yongda shop, the two companies announced on Wednesday.

According to Wang Licheng, Alibaba’s general manager of automobile business, Alibaba would also offer zero-interest loans to buyers depending on their previous credit record with Tmall and its sister platform, Taobao.

Source: E-shopping discount cars: China’s luxury auto dealer and Alibaba to offer pricey wheels at online sale prices | South China Morning Post

McDonald’s, KFC Go High-Tech In China With Customization, E-Payments

Source: NFC World
Source: NFC World

Leading global fast food chains McDonald’s and KFC are both in the headlines as we head into the heart of summer, each trying new high-tech approaches to reignite their faltering China stories. KFC’s deal will see it pair up with Alibaba to offer its affiliated Alipay electronic payments service at hundreds of its China stores. The McDonald’s news is similarly high-tech, and will see the chain extend its new state-of-the-art hamburger customization program to the China market.

According to the reports, the alliance has seen KFC recently start to accept Alipay for electronic payments at 700 of its stores in Shanghai and nearby Zhejiang province. It plans to extend the program to the rest of its 4,500 China stores nationwide, as part of a campaign by both partners to build up their online-to-offline (O2O) businesses that brings together traditional retailers and Internet-based service providers.

Source: McDonald’s, KFC Go High-Tech In China With Customization, E-Payments

How We Like to Shop Online

Image Source: Mashable.com
Image Source: Mashable.com

In a recent consumer survey report published by CBRE, over 50% of consumers in Asia Pacific still visit a shop to make a purchase. However, online shopping has overtaken bricks-and-mortar retail as the most popular method of purchase in a few markets, most notably South Korea and Taiwan, where 73% and 55% of consumers said their primary method of purchase was online.

According to the survey, convenience and price are the major considerations for consumers shopping online. Survey respondents also mentioned that the ability to compare products was a catalyst for them to shop online.

Read the full story here: Asia Pacific Consumer Survey: How we like to shop online | CBRE

Navis Said to Buy Singapore’s Super Peking Duck Restaurant Chain

Source: Straits Times Singapore
Source: Straits Times Singapore

Navis Capital Partners Ltd. has agreed to buy control of Imperial Treasure Restaurant Group Pte, the Singapore company known for its “Super Peking Duck” eateries, a person with knowledge of the matter said.

The Malaysian buyout firm will pay S$60 million ($45 million) to S$80 million for a majority stake in Imperial Treasure.

Read the full story: Navis Said to Buy Singapore’s Super Peking Duck Restaurant Chain | Bloomberg

As China’s e-commerce market booms, physical stores becoming testing sites for online shoppers

Source: SCMP, Reuters

According to a recent report released by PWC, 85 percent of Chinese consumers chose a digital channel when researching a new product or purchase. 86 percent of Chinese respondents (compared with 68 percent of global respondents) said they had intentionally gone to a physical store to check out a product before purchasing it on the web.

Last year, domestic consumers in China purchased online goods and services worth 2.8 trillion yuan (US$451.7 billion), an increase of almost 50 per cent on the year before.

Read the full story: As China’s e-commerce market booms, physical stores becoming testing sites for online shoppers | SCMP

Shoppers on Lazada last year spent $350MM as ecommerce in S.E. Asia booms

Source: Crunchbase
Source: Crunchbase

According to a report by Tech In Asia, Rocket Internet’s Lazada saw more than US$350 million in consumer purchases in 2014. US$70 million of that spending happened in December alone, due to Christmas and special promotions like the 12/12 sales day.

Indonesia’s shoppers made up over 30 percent of Lazada’s 2014 spending. According to CEO Maximilian Bittner, exclusive online gadget sales for brands like Xiaomi and Motorola have helped Lazada greatly in Indonesia.

Lazada started out doing only direct sales to consumers from its own warehouses, but that changed in the fall of 2013 as the company launched a marketplace for third-party merchants. Those merchants now take in 70 to 75 percent of the consumer spending at Lazada.

Read the full story: Shoppers on Lazada last year spent $350 million as ecommerce booms in Southeast Asia | Tech In Asia

Wal-Mart says it will go slow in China

Source: Retail News Asia
Source: Retail News Asia

Wal-Mart is ratcheting down its ambitions in China, after years of watching its growth stymied by the challenge of quickly opening large numbers of stores across the country.

Wal-Mart said in February that its fourth-quarter net sales in China fell 0.7% from a year earlier, and same-store sales dropped 2.3%. Despite being one of the earliest investors into the online space in China, the company has lagged behind its competitors in recent years. Wal-Mart was one of the first retailers to set up online in China; in 2012 it acquired a majority stake in e-commerce site Yihaodian. However, Yihaodian accounts for a mere 1.4% of online transactions, while Alibaba holds a 61.4% share, according to market-research firm iResearch.

In May, Wal-Mart will be rolling out an app in China that enables shoppers to order goods on their phones and either pick them up in a store or have them delivered by Wal-Mart’s own employees.

Read the full story: Wal-Mart says it will go slow in China