Philippine Retailing Newsletters 2018 PRA eNewsletter 2018 Q4 | Page 7

4TH QUARTER 2018 World News PHILIPPINE RETAILING Jack Ma to step down in 2019, Daniel Zhang to become Alibaba chairman Jack Ma, the co-founder and chairman of China’s largest e-commerce firm Alibaba Group, will step down as chairman  on Sep 10, 2019, according to Alibaba. Current Alibaba chief executive Daniel Zhang will replace him as chairman, while Ma will  complete his current term  on Alibaba’s  board of directors following the company’s annual general meeting in 2020. Jollibee London debut draws thousands The opening of the first Jollibee branch in London drew queues of expat Filipinos who braved the autumn chill overnight to be among the first to savor Chicken Joy and burgers. London store demonstrated the depth of customer loyalty to the brand which was helping the company reach its ambition of expanding all over the globe. He wants Jollibee to one day become the world’s largest fast-food operator. According to reports, “thousands” of Filipinos visited the Jollibee London restaurant, located in Earl’s Court. “Today, we are at number 11 or 12, depending on [our] stock price. To achieve that dream, we will require an aggressive expansion coming from strong organic growth and strategic acquisitions.” Ernesto Tanmantiong, CEO of Jollibee Foods, said at a press briefing on the site that the crowds at the Inside Retail Asia, 10/23/2018 Not delivering on customer experience costs retailers in Asia Nearly two-thirds (63%) of consumers in Asia will no longer shop with a retailer after just one poor customer experience, according to a research study by Tofugear, in partnership with Rakuten Insight. “The connected consumer in Asia is empowered and not afraid to look elsewhere when their needs are not being met. Retailers need to understand that they often only have one chance to get it right,” according to Philip Wiggenraad, Head of Research at Tofugear. Fifty-nine percent of consumers in the region prefer to shop online rather than in stores. China led the way (88%), while markets such as Hong Kong and Singapore (both 51%) were more evenly split in their preferences between online or stores. Ma relinquished the role of chief executive in 2013. Zhang, 46, has been in the job since 2015 after serving as chief operating officer and is known as a key architect of Alibaba’s Singles Day, the Nov  11 event that has become the world’s largest online shopping event. “Under his stewardship, Alibaba has seen consistent and sustainable growth for 13 consecutive quarters... Starting the process of passing the Alibaba torch to Daniel and his team is the right decision at the right time,” Ma said in the letter. Zhang will also retain the CEO title, the company said. Ma, who co-founded Alibaba in 1999, is one of China’s richest people with a net worth of more than US$40 billion, according to Bloomberg. The company has grown to have more than 66,000 full- time employees. Channel News Asia, 09/10/2018 While millennials are the most prolific online shoppers, with over half (55%) doing so at least once a week, Gen Z also has a definite lean towards the online channel. Among 6,000 shoppers across 12 countries in Asia, the research underlines the importance of delivering on experience for retailers. Top frustrations with stores included out of stock products, long checkout queues and poor staff service. When it comes to online shopping, consumers were turned off by high shipping costs, inaccurate product information and slow fulfilment speeds. Ma, who turned 54 this year, said in a letter released by the company that he is staying on as executive chairman for 12 months to “ensure a smooth transition”. Respondents to the survey showed a strong willingness to engage with store technologies in order to make their shopping journey more frictionless. Two-thirds (65%) would use their mobile phone for self-checkout, while 62% were open to using apps in stores as part of a connected retail experience. Tofugear PR, 11/19/2018 7