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Asia Trends 2019
Our top five trends shaping the Asian retail market and influencing retailer strategy over the next year and beyond.
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Tesco has announced its full year results with LFL sales in Asia showing improvement in Q4.
A.S. Watson Group has opened its 15,000th store in Kuala Lumpur, Malaysia.
The world's largest health and beauty retailer continues to rapidly expand its store network, opening a new store on average once every seven hours across Asia and Europe. Earlier today, the Group opened its 15,000th store globally. This also marked the 500th Watson store in Malaysia. There are over 7,200 Watsons' stores in 13 markets in Asia and Eastern Europe.
Click here to see A.S. Watson’s FY18 results.
Subscribers can read more on A.S. Watson's Strategic Outlook here.
Lazada, the leading ecommerce platform in Southeast Asia, owned by Alibaba Group, plans to expand its cross-border trade for international brands.
One of the key initiatives announced was a revamped “Global Collection”, which is a dedicated channel to showcase Lazada’s cross-border merchants from around the world. The platform aims to help the brands grow their businesses and achieve higher visibility among the Southeast Asian shoppers.
Global Collection 2.0 uses an algorithm-based search function to filter the product offerings and highlight the vendors for shoppers to find them easily. Shoppers would also receive their deliveries much faster and within seven working days from the time their placed their order if they choosese the standard shipping option.
From April, cross-border sellers interested in joining Lazada can submit applications in the self-service system, instead of getting an invitation from Lazada. Once the review is completed, they will become Lazada merchants.
First launched in 2013, Lazada’s cross-border business has grown to become one of the most diverse marketplaces. The sales have quadrupled over the past three years and, with the aim of boosting sales further in 2019, the company plans to identify and nurture the top 300 brands in each of the six countries that it operates in – Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
The top five markets which cross-border sellers come from are Mainland China, Hong Kong, Korea, the US and Europe, with women’s fashion, home and living and kids’ fashion ranking among the most popular cross-border items.
Keep up-to-date with the latest retail developments from Asia.
Sales for 2018 grew by 1.3% from previous year.
Expansion of the store network, higher average spend per customer and positive response to promotional activities are the reasons that have driven the growth for 7-Eleven Malaysia. The convenience retailer ended the year with revenue of MYR$2.22bn, an increase of 1.3% versus the previous year of MYR$2.19bn. Correspondingly, profit after tax ended at MYR$51.3m, a rise of 2.4% (MYR$1.2m) versus last year, for the retailer.
7-Eleven Malaysia remains positive for the future and expects domestic demand to continue driving sales. It will continue executing its core strategy of Operations Excellence, Cost Management and Commercial Innovation.
7-Eleven has more than 2,000 stores in Malaysia and has announced plans to open another 200 stores in this year.
Find out more information about 7-Eleven here.
FamilyMart plans to open an additional 300 stores across Malaysia.
QL Resources, the operator of FamilyMart Malaysia, has reaffirmed its plans to open an additional 300 stores in Malaysia. The retailer opened 30 stores in the country during the previous financial year and another 90 stores in this financial year, ending 31 March 2019.
Chia Song Kun, chairman of QL Resources said, "we still stick to our plan to open 300 stores in five years."
Though there is a healthy concentration of convenience stores in Kuala Lumpur and the greater Klang Valley area, penetration in the rest of the country remains low. With only 7-Eleven and MyNews as the other major players in this channel, FamilyMart Malaysia sees positive growth opportunities, driven mainly by domestic demand.
Find out more information about FamilyMart here.
This in-depth guide to Malaysia explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.
Five year growth forecasts for the grocery market, the leading retailers and modern trade grocery channels in Malaysia+.