In the news: Forrester’s forecast on China’s online retail spending, MAS’ new rules on e-cigarettes, Trisara Academy’s hospitality internship programme, Travelport’s multi-year agreement with Hutchinson-Priceline
Chinese online retail spending forecast to reach US$1 trillion by 2019: Forrester
Chinese consumers are shifting to mobile for online shopping. (Image credit: daoleduc/iStock)
The China Online Retail Forecast 2014-2019 from Forrester Research, Inc. forecasts that online retail spending in China will exceed US$1 trillion by 2019, up from US$307 billion in 2013.
The report also estimates spending via mobile will grow at 44.2% compound annual growth rate (CAGR), twice as fast as online sales, which are estimated to grow at 19.9% CAGR.
The twin drives for eCommerce growth in China over the next five years will be mobile sales and online retailers’ expansion into new product categories.
Vanessa Zeng, senior analyst of Forrester Research, said: “To capture the opportunities in the increasingly competitive retail market, organisations must realize the importance of digital capabilities.
“Successful organisations must drive innovation to deliver compelling shopping experience and focus on enhanced customer segmentation, offering seamless customer experience across touchpoints, and leverage mobile to drive overall online retail business.”
Key findings from the report:
Chinese consumers are shifting to mobile for online shopping. The frequency with which online consumers in metropolitan China shop via their mobiles is increasing rapidly, while those in lower-tier cities use smartphones as their primary means of network access and for online shopping.
Major web players, Tmall and JD.com, will continue to dominate China’s eCommerce market – with market shares of 57% and 21%, respectively – and will try to seize control of the mCommerce market by enhancing their mobile investments and improving customer experience.
More categories of products traditionally sold offline, such as pharmaceuticals and furniture, are now made available online.
The growing number of middle-class and affluent Chinese consumers adds to online demand for a wide variety of high-end products, such as fresh food, imported goods, and automobiles.
The convenience, variety, and fast delivery associated with online purchase will boost eCommerce in these new categories.
Malaysia Airlines prohibits e-cigarettes in check-in luggage
Passsengers on MAS’ flights have to hand carry their e-ciggies. (Image credit: librakv/iStock)
Passengers flying with Malaysia Airlines (MAS) now have to put their electronic cigarettes (e-cigarettes) in their carry-on baggage and not have them in their check-in baggage.
The airline said the move was in line with a Federal Aviation Administration (FAA) safety alert issued following recent fire incidents involving e-cigarettes.
The FAA recommends all airline operators to ensure e-cigarettes (also called personal vaporisers or electronic nicotine delivery) be carried by passengers exclusively in the cabin of the aircraft and not in checked baggage.
MAS added that the “carriage of e-cigarettes in the passenger cabin addresses this safety risk by ensuring that if an incident does occur, it can be immediately identified and mitigated.”
However, this change in the ruling does not alter the no-smoking rule in the cabin of all MAS flights.
FAA issued the advisory following two separate incidents involving e-cigarettes at American airports. At Boston’s Logan airport an e-cigarette in a checked in passenger’s bag caught fire at the cargo hold of an aircraft, forcing an evacuation.
At the Los Angeles International airport a checked in bag in the baggage area caught fire due to an overheated e-cigarette.
FAA said the incidents showed that e-cigarettes could overheat and cause fires when the heating element was accidentally activated or left on.
Trisara Academy opens hospitality internship programme to the public
Trisara Academy opens its courses to Thai students for the first time.
Trisara Academy, a training facility in Phuket operated by the Montara Hospitality Group, has launched a three-month internship programme that is open to the public for the first time.
The academy was launched in July 2014 with a career development programme for its internal managers in July and August. The extension of the training is its first ever internship programme to local Thai students.
Narong Pattamasaevi, owner and chairman of the Montara Hospitality Group, said: “As a locally owned and operated hotel group, we understand that there is a growing need for skilled employees in hotels and resorts across Thailand. We believe that the academy’s intensive 520-hour course will provide students with the training and knowledge that they need to succeed in Thailand’s hospitality sector.”
The three-month internship programme begins on March 2 and consists of two separate courses, one in food and beverage operations and the other in culinary preparation. Classes are conducted five times a week.
The certificate course in culinary preparation will lay the foundation for students’ culinary skills and knowledge, preparing them for an entry-level position in the kitchen. Trisara’s veteran executive chef, Chalermchai Prakobkit, who has worked in Michelin star kitchens worldwide, will conduct the course.
The course in food and beverage operations, led by Thai Trisara managers, will equip students with the essential skills needed for entry-level employment in the food and beverage industry as service staff.
On completion of the courses all students will receive assistance in job placement with resume writing and even arranged interviews with local hotels in Phuket.
The cost for the course is 12,800 Baht per month inclusive of uniforms, daily meals, and course materials. Applicants must be between 18 to 28 years old and of Thai nationality.
Click here for more information on the courses.
Travelport is Hutchison-Priceline’s new technology partner
New partners – Hutchison-Priceline and Travelport
Travelport has inked a new multi-year agreement with Hutchison-Priceline, an independent company formed with investments from Hong Kong-based global conglomerate Hutchison Whampoa Limited and US-based priceline.com Inc.
Under the agreement all travel booking websites operated by the OTA will be processing its online reservations through Travelport’s Travel Commerce Platform.
Hutchison-Priceline is already utilising Travelport’s Universal API technology to power its Internet booking engine for air bookings.
An industry first, Universal API aggregates content from Travelport’s Travel Commerce Platform – including airfare, airline merchandising and ancillaries, hotels, car and rail – and makes it accessible to developers or companies creating their own travel applications through a single connection.
According to Travelport, this negates the need for OTAs to obtain content from multiple sources and makes booking travel more efficient by improving search, pricing and profiling functionality.
Mark Meehan, Travelport’s managing director, Asia-Pacific, said: “This agreement is a testament to our ongoing commitment in working with OTAs to help redefine how travel is booked and improving customer experience, both online and offline.”
Data from PhoCusWright shows that OTA gross bookings in the Asia Pacific region are expected to reach US$46.5 billion by 2016, rising 58% over 2013.
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