In this release of Weekly Focus APAC: SingPost profits slip on e-commerce conflict in the United States; Fleckart expands online grocery service to Mumbai; shopping applications Lazada, Shopee and Tokopedia Top SEA; BOLT signs agreement with e-commerce specialist in Malaysia; Relates to 400,000 Japanese merchants.
SingPost's earnings slip on e-commerce conflict in the United States
Singapore Post (SingPost) posted a 86% drop in net profit for the fiscal year ended March 31, mainly due to difficulties in the US e-commerce market.
The e-commerce revenue fell by 0.3% for the year as it continued to face challenges by "intensifying" competition and cost pressures in the United States, the postal service operator said. There has also been an increase in customer bankruptcy in the United States, with SingPost losing its operating activities rising to S $ 51.9 million (£ 29.19 million).
The group is currently seeking to divest its e-commerce business from its market, reporting a "devaluation fee" of S $ 98.7 million (£ 55.51 million).
"Although we have done our utmost to change business in the United States, we have faced increasing challenges that have impacted our performance," said Paul Coates, chief executive of SingPost. "As a result, we made the difficult decision to start selling US e-commerce."
The company's revenue this year rose 2.9 per cent to S $ 1.56 billion (£ 877.32 million) and its net profit could have increased by 15.8 per cent if its business in the United States was excluded, although it would have fallen 5.8 per cent from the previous year.
After reviewing its work in the United States, SingPost said it would go on sale and it would exit the US market. He pointed out that strategic strengths and competitive advantages were in Southeast Asia and Asia Pacific, where there were more growth opportunities and better returns on investments.
Cox said SingPost was still "committed" to its e-business, which it said was an essential part of its strategy for future financial growth.
"The group's competitive advantage lies in the Asia-Pacific region, where we see the strongest growth in volumes and returns and we will continue to improve our business to increase growth," he said. "In the near term, we continue to focus on improving our operations in Singapore to better serve the needs of customers in our local market."
SingPost was fined S $ 300,000 (£ 169,673) by Singapore's industry regulator for failing to meet postal service quality standards for delivering domestic and international messages last year. 20 non-compliance incidents were found in 2018, compared to 9 accidents in 2017, in addition to frequent failures in delivery including missing messages.
Flickrart expands grocery service online to Mumbai
India's e-commerce giant has launched an online grocery service in Mumbai, where it promised to offer high-quality products and cost savings.
Available in Mumbai, Flipkart Supermart offers 91 PIN codes throughout the Indian city or about 75% of the total area codes, including the western and central suburbs.
The online grocery service is already operating in Bengaluru, Chennai, Hyderabad and Delhi.
Fleckart said the current stock of a supermarket on the Internet ranges from fast-moving consumer goods to dairy products as well as its own brand that provides basic foodstuffs. It would involve farmers, producer organizations and small, medium and small local enterprises.
A separate supply chain has been established for grocery stores in Mumbai including Al Wafa Centers and the Last Tilt Delivery Network, according to the Indian e-commerce operator.
She pointed out that the grocery store was the largest retail category in India, but it was also the most important major categories in the country's e-commerce market. Quoting industry estimates, Fleckart said India's grocery industry was worth $ 400 billion (£ 307.83 billion) and accounted for just 0.5 percent of the figure.
For launch in Mumbai, the Flikart Supermart will provide free delivery for orders over 600 rupees (£ 6.54).
"With Flipkart Supermart, we see tremendous potential for us to capitalize on our logistics and technology expertise to give our customers maximum savings, comfort, quality and breadth of choice," said Manish Kumar, President of Fleckart Convenience Store. It is a good time for us to bring our smooth shopping experience to Mumbaiakars. "
Shopping Apps Lazada, Shopee and Tokopedia Top SEA
Lazada achieved the highest monthly average active users (MAU) among e-commerce shopping applications across four markets in Southeast Asia, while Shopee in Vietnam and Tokopedia bases in the Indonesian domestic market.
Shopee ranked second in all markets that led Lazada in the first quarter of 2019, excluding Singapore, where it ranked third behind Qoo10, according to statistics from the iPrice Group in partnership with App Annie. The data identified the most important mobile shopping applications across six major markets in Southeast Asia: Singapore, Indonesia, Thailand, Vietnam, Malaysia and the Philippines.
Lazada appeared with the highest MAU average in Singapore, Malaysia, Thailand and the Philippines. Ranked second in Vietnam and fourth in Indonesia, where Shopee occupied second place behind Tokopedia.
IPrice noted that Lazada has invested efforts over the past year to engage consumers interested in technology, offering new features such as in-app live functionality and image search.
Shopee, too, was focused on offering a "highly localized" user experience, offering a different application for each country where he works. "This has been an effective strategy as Shopee is still one of the youngest players among the best applications, and has risen rapidly since its inception in 2015," said iPrice.
Although Tokopedia was only available in Indonesia, it was the third most visited e-commerce platform in Southeast Asia last year, with an average visitor volume of 125 million.
Amazon, which launched Prime Now in Singapore in 2017, ranked ninth in the island country in terms of MAU average, ranking fifth in Thailand and seventh in Vietnam.
BOLT signs agreement with e-commerce specialist in Malaysia
BOLT, the mobile video platform of Singapore's mobile phone, signed a marketing and distribution agreement with Paytech Malaysia, Payfo, specializing in digital banking and e-commerce.
Under the agreement, Payfo will pay BOLT content through the service channels and database of more than 26 million individuals. In addition, BOLT Token will be introduced as a system of incentives and rewards, enabling customers to collect and trade tokens to access premium content, including entertainment and sports, as well as trade for mobile phone plans offered by participating networks.
Icons can be stored in the BOLT portfolio.
Brands and marketers can also take advantage of the consumer targeting platform, with the option to purchase BOLT codes that can then be used as advertising credit to care for content.
"While BOLT already has a strong user base in Malaysia and the ASEAN region, the partnership with Payfo will greatly increase our reach and ultimately the base of their users in BOLT +, BOLT Wallet and BOLT Token," said Jamal Hashim, founder and CEO of BOLT.
Payfo's CEO, Izoan Anwar, added that the partnership will help improve customer loyalty and create more value through richer engagement with users.
Alipay connects to 400,000 Japanese dealers
Alibaba's mobile payment platform has developed a commercial network of 300,000 in Japan, grew by 500% from early 2018.
This means that tourists coming from China will be able to pay for purchases at 300,000 dealers throughout Japan using their Alipay application.
The country was among the most popular tourist destinations for Chinese travelers, ranking fourth in terms of volume of Alipay transactions during the four-day Labor Day holiday earlier this month.
Japan also recorded one of the largest increases in tourism spending, with average spending per consumer on Alipay increasing by 25% year-on-year, according to Alibaba's Ant Financial, which referred to shops and shops at airports and supermarkets as the most popular Traders for Alipay shoppers in the country.
China is Japan's largest tourism market last year, accounting for 27 percent of the 31 million tourists who visited the country.