Companies.asia » Marketing

Thailand’s Grand Plan To Become A Major Tourist Attraction In Southeast Asia

admin — Thu, 19 Dec 2024 08:19:23 +0000

Tourism is a key driver of Thailand’s economy, but growth remains stagnant. Tourism has not fully rebounded from the Covid-19 pandemic, and that will unlikely happen until travelers, especially those from China, return to pre-Covid levels. Southeast Asia’s second-largest economy welcomed around 28 million foreign visitors in 2023, far from the almost 40 million tourists in 2019.

In June, former Thai Prime Minister Srettha Thavisin ordered the drafting of a bill to legalize entertainment complexes in the country, a move that could boost tourism spending, increase employment, and revive the economy again. Apart from state lottery or licensed horse betting, gambling is currently illegal in Thailand.

Paetongtarn Shinawatra is now Thailand’s new prime minister, but analysts all agree that the bill will still likely be passed. If that likely outcome becomes a reality, Thailand’s casinos could generate 187 billion Thai baht ($5.5 billion) in revenues, or 1% of the country’s GDP, according to Maybank research. The country could be Macao and Singapore’s largest competitor by the end of the decade. “The Thai government has seen the positive impact on the economy by opening up gambling/casinos as in the case for Singapore, and the power of the gaming dollar in Macau. This move could boost Thailand’s attraction as a tourist destination,” said Tim Tsang, CEO of Companies.Asia, a business consultancy for Corporate Asia.

KTP GLOBAL CONSULTING
KTP Global, a consultancy with emerging dominance in Asia, sees the legalization of gambling in Thailand, and the associated development of the hotel and entertainment industry will offer almost unlimited opportunities for profits and growth that would last at least until the end of this and next decade.

For more information on how we can help, please contact us: consulting@ktpglobal.ca

JYP Entertainment Preps Korean Music Supergroups For The World

admin — Wed, 05 Oct 2011 06:38:30 +0000

Suzy From The Korean Supergroup Miss A

JYP Entertainment Corporation (KOSDAQ: 035900) engages in the entertainment business in South Korea, Japan, China and other parts of the world. It is involved in the production of movies, TV dramas, and music recordings as well as the management of artists, including such famous Korean supergroups as Wonder Girls, 2AM, 2PM, Miss A, and Rain, under its various labels.

The company, originally named Tae-Hong Planning Corporation, was founded by Park Jin Young, an actor, singer and songwriter in 1997. It eventually became JYP Entertainment in 2001. J. Tune Entertainment Co. Ltd., a record label and artists management company founded by Rain, merged with JYP Entertainment and has operated under the umbrella brand JYP Entertainment Corporation since March 2011. JYP Entertainment is headquartered in Seoul, with offices in New York and Beijing.

Jo Dong-Won is the current Chief Executive Officer and a director of JYP Entertainment Corp. Son Goo-Ho, former managing director of Softbank Ventures Korea Inc., now serves as a director of JYP entertainment. Park Jin Young is also a director of this company.

JYP Nation 2010 (JY Park, Wonder Girls, 2PM, Miss A, Lim Jeong Hee)

JYP Entertainment’s total revenue for the year ended June 2010 was 10.16 billion KRW (USD 8.51 million), according to its annual report, with a net income/loss of 10.36 billion KRW (USD 8.685 million) compared to a 6.35 billion KRW loss for the previous year 2009. Year on year, the company net income fell 63.24% despite revenues that grew 12.15% from 9.06 billion Won to 10.16 billion. An increase in the selling, general and administrative costs as a percentage of sales from 25.2% to 32.86% was a component in the falling net income despite rising revenues.

Many industry analysts believe that the marketing prowess of Wonder Boy Park Jin Young and the global brand value of all the artists and groups managed by JYP Entertainment are underrated company assets that could turn the company around in the future.

Hormel’s Plan To Position SPAM as a Premium Brand In China

admin — Sat, 17 Sep 2011 08:39:14 +0000

Musubi, Hawaii's Favorite SPAM Treat

Hormel (NYSE: HRL), the maker of SPAM, America’s favorite luncheon meat, has plans to position it as a premium product in China. A blend of chopped pork shoulder, ham, salt, sugar, binders and preservatives like potassium chloride and sodium nitrite, SPAM made its market debut in 1937 and immediately became the number one selling luncheon meat in America. It still remains as one of the top brands in Hormel’s family of grocery products, and accounted for close to 15% of Hormel’s $7.2 billion in sales last year. More than 122 million cans of SPAM products are sold worldwide each year, 90 million in the U.S. alone. Hawaii has the highest consumption per capita for SPAM and the most popular way to enjoy it there is the musubi, a sushi like roll with grilled SPAM, seaweed and rice. SPAM’s overseas revenue has doubled in the past five years as it entered Asian markets such as Japan and South Korea. Burger King restaurants in Tokyo actually have SPAM burgers on the menu.

Hormel currently has 2 factories in China, but only fresh meat products such as pork sausages and pepperoni are made there for retailers and restaurants including Pizza Hut.

Hormel’s plans to introduce SPAM as a premium product into the Chinese market may face cultural obstacles and strong local competitions. While pork has long been a big part of the Chinese diet, consumers can choose from a variety of fresh meats such as horse and beef as well as other locally produced luncheon meats. The pressure is on SPAM to differentiate itself; hence the premium strategy, which taps into the growing Chinese fondness for foreign and more expensive brands. Without a large budget for advertising in China, Hormel’s marketers are focusing on product tasting, in-store posters and online Chinese food recipes using SPAM. The biggest hurdle for Hormel; however, may be its premium pricing strategy. At about US$3.20 a can, SPAM is almost 40% more than the price of other local brands such as Great Wall and Ma Ling.

SPAM and Shark Fin Soup anyone?

Coca-Cola Share Price On The Rise; Considers Shanghai Listing

admin — Fri, 08 Jul 2011 02:11:52 +0000

Global soft drinks juggernaut The Coca-Cola Company (NYSE: KO) is considering a possible future listing on the Shanghai Stock Exchange to coincide with part of its plan to expand into China. “We continue to have positive discussions with Chinese government officials as we look at this opportunity,” Geoff Walsh, Coca-Cola’s public affairs and communications director for Asia Pacific region recently told a major newspaper in Hong Kong.

As of now, no foreign companies are allowed to list in China’s domestic stock exchanges. China had indicated earlier in 2009 that it would eventually allowed qualified foreign companies to list in Shanghai, with rules and regulations that have yet to be announced.

Currently, Coca-Cola share price ($68.75 as of July 7) is enjoying a gradual upward climb towards its record high of US$88 a share reached in 1998. Chief Executive Officer Muhtar Kent is continuing the corporate strategy started by his predecessor E. Neville Isdell to refocus the company more on its core products, which include Coke, Diet Coke, and Coke Zero, rather than on its other noncarbonated drinks. Kent also reconfigured serving sizes globally and introduced minicans and smaller bottles with new pricing to meet consumer demands and boost profit margins. In 2010, Coca-Cola purchased its largest franchised bottler in Atlanta, essentially bringing it in-house to cut supply-chain costs, and giving the company control of 90% of its North American distribution.

As close to 80% of Coca-Cola’s sales are done outside the United States, Kent plans to spend at least US$27 billion through 2020 for new bottling and distribution facilities in emerging markets such as China and Mexico. Last year, the company opened three bottling plants in the Inner Mongolia region at a cost of about US$246 million, part of the company’s three-year, US$2 billion expansion plan in China. A Shanghai listing seems like a logical extension of Coca-Cola’s plan as it would provide access to China’s huge local currency deposits as well as increase the already strong brand value of the best selling soft drink in the world.

Subway Overtakes McDonald’s As World’s Largest Restaurant Chain

admin — Sun, 13 Mar 2011 11:17:33 +0000

Unusual Location For Subway Sandwiches In China

The Subway sandwich group, operated by privately held Doctor’s Associates Inc., has officially overtaken McDonald’s Corp (NYSE: MCD) as the world’s largest restaurant chain in terms of number of restaurant outlets, according to the year-end store count filed by Subway to the Securities and Exchange Commission at the end of February 2011.

Subway has reported that it has a total of 33,749 restaurants worldwide at the end of year 2010, compared to the 32,737 restaurant units of McDonald’s. That number has already increased to 34,246 units according to Subway’s own corporate count as of March 10, 2011.

Both companies have aggressively expanded into international markets using successful franchise business models during recent years. Subway was founded by Fred DeLuca and Peter Buck in 1965 when they opened the first store in Bridgeport, Connecticut. It now has restaurants in 95 countries. McDonald’s Restaurant as a franchise concept was established by Ray Kroc in 1955 and sold 100 million burgers in just 3 years’ time. It now has restaurants in 117 countries around the world. From a revenue perspective, McDonald’s is still leader of the pack with a global revenue of US$24 billion compared to Subway’s US$15.2 billion for the year 2010.

As of March 2011, Subway has 1000 restaurant outlets operating across Asia, including 17 in Hong Kong, 199 in India, 236 in Japan, 63 in Malaysia, 14 in Philippines, 92 in Singapore, 38 in South Korea, 118 in Taiwan, 36 in Thailand, 1 in Vietnam and 199 in China. According to Don Fertman, Subway’s Chief Development Officer, the company is looking towards China for its future expansion plans. It is expected that the number of outlets in China will surpass 500 by the year 2015.

Other major restaurant chains are also looking for expansion into Asia, and to China in particular, as part of their overall strategic plans. Starbucks (NASDAQ: SBUX), already the largest coffeehouse chain in the world with 16,858 outlets in over 50 countries, plans to triple its café outlets in China. Kentucky Fried Chicken (KFC) with 16,200 restaurant outlets in 105 countries, also the largest and fastest growing restaurant chain in mainland China today with over 3,200 restaurants in more than 700 cities, and Pizza Hut, the largest pizza chain in the world with 13,100 restaurants, and Taco Bell with over 6000 franchise locations, are all operated by Yum! Brands Inc. (NYSE:YUM), which plans to increase its dominance in the global fast food market by opening significantly more stores across Asia in the near future.

Panasonic Corporation Leader In International Patent Filings

admin — Tue, 08 Mar 2011 09:31:24 +0000

International Patent Filings Dominated By Asia

China, Japan, and South Korea show dominating growth in international patent filings and exhibit a significant shift of economic, competitive and scientific power to Asia, based on data released in February 2011 by the World Intellectual Property Organization (WIPO).

The World Intellectual Property Organization said China had increased its international patent filings in 2010 by 56.2% to 12,337, tripling its 2006 figure and elevating China into fourth place in global rankings. These figures include a 33% increase in patent filings in electrical engineering and 220% increase in nanotechnology.

South Korea, ranked 5th with 9,686 filings, grew 20.5%, and Japan, a country with a mature economy, still attained growth of 7.9% with 32,156 applications to place 2^nd, and Germany, with 17,171 applications, ranked 3^rd on the list.

The United States is stilled ranked number one, although it experienced a drop of 1.7% to 44,855 filings, some 20% below its 2007 level. International patent applications by universities are still dominated by U.S. schools. Leading the pack is the University of California, Massachusetts Institute of Technology, University of Texas, and University of Florida. Under this ranking, the University of Tokyo follows closely at number 5.

The top 10 companies by filings include 3 from Japan, 2 from China, and 1 from South Korea, with 1 U.S. and 3 European firms completing the list.

Looking at the data from a corporate perspective, Japanese consumer electronics group Panasonic Corporation (NYSE: PC; TYO: 6752) again led the list with 2,154 applications, and China’s telecommunications giant, ZTE Corporation (SZSE: 000063; SEHK: 0763), jumped into 2^nd place with 1,863 applications. U.S. chipmaker Qualcomm Inc. (NASDAQ: QCOM) was in 3^rd place with 1,677 filings, and Chinese telecoms equipment maker Huawei Technologies Co. Ltd. is in 4^th place with 1,528 applications. LG Electronics Inc. (KRX: 066570; LSE: LGLD) of Korea takes the 7^th place with 1,298 applications. Of the top 10 corporate applicants, 6 are from Asia. The U.S. juggernaut Google Inc. is ranked only 80^th with 171 applications.

Under the Patent Cooperation Treaty (PCT), the WIPO offers inventors and industry an easier route for obtaining patent protection internationally. By filing one “international” patent application under the PCT, protection of an invention may be established simultaneously in each of the current 142 treaty member countries.

Both applicants and patent offices of PCT member states benefit from the uniform formality requirements, the international search and preliminary examination reports, and the centralized international publication provided by the PCT system.

Lawson To Buy HMV Japan From Daiwa Group

admin — Thu, 11 Nov 2010 06:55:17 +0000

HMV Japan Flagship Store at Shibuya Closes In 2010

Japanese convenience store chain Lawson Inc. (TYO: 2651) announced on October 28, 2010 that it will acquire music retailer HMV Japan K.K. from Daiwa Securities SMBC Principal Investments Co. Ltd. for 1.8 billion Yen (US$21.9 million).

The acquisition will allow Lawson to strengthen its stores’ weak music CD and DVD sales. According to Lawson’s own press release, this purchase will enable Lawson to create extensive entertainment merchandise and full range services in all formats, by enhancing the merchandise offerings through its Lawson & HMV stores, Loppi (Lawson’s multi media kiosks) and all its online storefronts, and by utilizing HMV Japan’s highly reliable brand for music and video software, as well as HMV’s leading market share in Japan for these products in both actual store and Internet sales. Industry analysts concur that this strategic move will likely attract more young consumers, the largest segment of customers of convenient stores, by tapping HMV Japan online sales expertise and its more than 4.7 million loyal members.

HMV Japan posted a net profit of 877,000 yen for the fiscal term that ended in April, 2009, but saw a net loss of 4.6 billion yen for the 2010 fiscal year. In an attempt to turn around its business, the company has initiated many cost-cutting measures including the reduction of the number of its stores from 57 to 37 in April of 2010. Its parent company, Daiwa Securities SMBC Principal Investments Co. Ltd. has been looking for a buyer for its struggling subsidiary since the recent slump in the music retail industry.

Culture Convenience Club (TYO: 4756), operator of Japan’s Tsutaya movie and music rental chain, had shown strong interest in buying HMV Japan earlier this year, but negotiations had broken down after both parties failed to agree on a purchase price.

Lawson stores form the 2nd largest convenience (Konbini) store chain (after 7-Eleven) in Japan and currently operate in all 47 prefectures of Japan and in Shanghai, China. It actually originated in the U.S. as Lawson’s Milk Company in 1939. It expanded into a chain of Lawson’s stores throughout the 40s and 50s and was bought by Consolidated Foods in 1959. In 1975, Consolidated signed a deal with Daiei Inc. to establish a series of Lawson stores in Japan. The first Lawson convenience store opened in Osaka in June 1975 and was operated by Daiei Lawson Co. Ltd. which later changed its name to Lawson Japan, Inc.

In 1985, Consolidated Foods changed its name to Sara Lee and sold all its Lawson stores in the U.S. to Dairy Mart which then renamed all the Lawson stores to Dairy Mart stores. From that time on, Lawson stores no longer existed on U.S. soil. In 2002, Dairy Mart was purchased by Quebec based Alimentation Couche-Tard (ACT) which then proceeded to rebrand all the Dairy Mart stores as Circle K stores.

Lawson posted a net profit of 12.56 billion yen for the fiscal year ended February 28, 2010 and has a fiscal forecast of 22 billion yen in profit for 2011.

Pepsi Really Means Cola In India

admin — Mon, 01 Nov 2010 08:06:25 +0000

The word Pepsi actually means cola, and any other bottled carbonated drinks including its rival brand Coca cola in India. This built-in linguistic advantage for PepsiCo naturally translates into higher sales for its cola soft drinks. In terms of total beverage sales, including non-cola drinks, Coke is still number 1 in India, but Pepsi’s cola market share of India’s beverage market is over 4.5% as compared to Coke’s 2.6%.

In 1977, Coke pulled out of the Indian market because it refused to comply with then government regulations which would essentially force it to form a partnership with a local company and to share its secret Coke formula. In 1988, PepsiCo formed a joint venture with 2 Indian companies and in 1990 introduced its signature cola under the Lehar Pepsi brand. Coke re-entered the Indian market in 1993 when government regulations had changed to allow foreign companies to operate without local partners. Coke’s complete absence from India during a time when India began to embrace Western products was a strategic mistake. Pepsi’s crucial timing and its presence in the Indian market without its main competition had basically made Pepsi into a household word… a word synonymous with the carbonated cola drink category. Sales of PepsiCo’s wide range of products in India, including Frito Lay chips, Tropicana juices, Gatorade drinks and Quaker Oats, totaled $1.5 billion in 2009.

India born Indra Nooyi, PepsiCo Inc. (NYSE: PEP) Chairman and CEO, has stated that she will invest aggressively in emerging markets and will continue to pursue strategic costs-cutting opportunities. Her recent completion of the purchase of PepsiCo’s 2 largest bottlers assured investors of her intentions. PepsiCo’s stock is up 12% since September 2009 and its revenues are projected to be $60 billion for 2010.

DoCoMo Releases New Galaxy S To Take On iPhone

admin — Sun, 31 Oct 2010 06:25:34 +0000

NTT Docomo Inc. announced that it would start selling Samsung Electronics Co.’s Galaxy S smartphone customized for the increasingly competitive Japanese market on October 28, 2010. Docomo plans to increase its market share as well as to challenge the current market domination by iPhone and its exclusive service provider Softbank Corp.

The Galaxy S features a 4-inch, ultra bright super AMOLED high resolution mult-touch screen that can display full high-definition video. The phone is powered by Google’s Android 2.2 operating system and is equipped with a 5 megapixel camera. The phone also supports Flash based web content and games.

Docomo’s President & CEO Ryuji Yamada hopes that the Galaxy S will give the iPhone a serious run for its money and expects that Galaxy sales will easily match the half million units sales by that of Sony Ericsson’s Experia, another smartphone introduced earlier by Docomo in April.

NTT Docomo is a leading mobile operator as well as a developer of cutting-edge mobile technologies in the world. In Japan, Docomo serves over 56 million customers, of which 48 million subscribe to its i-mode services, the world’s most popular mobile email/Internet platform, and 54 million customers subscribe to its FOMA, the world’s original 3G mobile service based on W-CDMA technology.

In November 2008, NTT Docomo acquired a 26% stake in Tata Teleservices which ranked number 6 in the Indian telecom industry. India is the world’s fastest growing cellular market, with a rate of increase of as many as 9 million new customers a month. The newly formed Tata Docomo venture was launched in India in June 2009 and had signed up about 33 million users by the end of June 2010.

NTT Docomo is listed in Tokyo (TYO: 9437), New York (NYSE: DCM), and London (LSE: NDCM). NTT Docomo is a subsidiary of Nippon Telegraph and Telephone Corporation. Docomo announced on October 28, 2010 that its net income rose 22 percent to 167.6 billion yen ($2.1 billion) in the three months ended Sept. 30.

Shinsegae vs. Lotte: Clash Of The Retail Titans

admin — Sun, 24 Oct 2010 09:29:03 +0000

South Korea’s Shinsegae Group and Lotte Group square off in a battle for supremacy in the retail industry.

Last year, Shinsegae Group opened its latest luxury department store on the home turf of archrival Lotte Group, igniting another round of aggressive competitions for customers. Shinsegae Centum City, the 510,000 square meters (approximately 5.5 million square feet) colossal shopping and entertainment complex has eclipsed even Macy’s New York City Herald Square flagship store to set a new Guinness Record as the largest department store in the world.

Located on a former airport site in the coastal city of Busan, Korea, Shinsegae Centum City is comprised of a 14-story east wing which houses an 8-floor department store, restaurants, a gym and a golf driving range, as well as a 9-story west wing which features an indoor ice skating rink, concert hall, multiplex cinema, an art gallery, and spa facilities. It costs 1.025 trillion won (US$1.09 billion) to build.

Not to be outdone, Lotte Group is already building its own new colossal project, Lotte World, in Busan. It features a Las Vegas Bellagio like water fountain that is supposed to be the largest in the world. A planned skyscraper with a scheduled completion in 2016 would be among the tallest in Asia.

Shinsegae and Lotte have arrived at the top of the retail game through different paths. Lotte’s empire is built on its high-end department stores, a segment where it claims three times the market share of Shinsegae. The foundation of Shinsegae’s business empire is built on its discount E-Mart stores, and this lower end retail market is where Shinsegae claims three times the market share that the discount Lotte Mart attracts. In 2009, for the first time in its operating history, Shinsegae overtook Lotte in total revenue, posting $11.4 billion in sales compared to Lotte’s $10.7 billion.

This fierce domestic battle is continuing overseas. Shinsegae now operates 26 discount stores in china and plans to open another 100 stores there by 2015. Lotte operates 79 discount stores in China as well as many other outlets in Vietnam and Indonesia. This year, Lotte continues its expansion by opening a hotel in Russia, right next to the high-end department store it founded there in 2007.

Anyway, the Clash Of Titans Continues….