SUNDAY, SEPTEMBER 1, 2013 technology Chinese shoppers ready to become world leaders online Chinese retailers realign strategies to compete with online rivals SHANGHAI: China’s e-commerce market is to be on the web, whether you like it or not,” said for half of all Chinese retail spending in 10 years, expected to leapfrog that of the Serge Hoffmann, a partner at Bain and co-author from 6 percent now. this year to become the world’s largest by total of the report. “Whether you’re an online player or “Proliferation of smart devices mean every- customer spending, management consultancy an offline player, you need to have a meaningful, body is connected at all times, that’s one of the firm Bain & Company says, and could account for credible presence on the web.” While still a small key drivers for this,” said Studholme-Wilson. half of all Chinese retail spending within a portion of total revenues, the growth of online “Another problem you’ve got in China is that decade. The change in shopping habits comes as sales is far outpacing offline sales growth. retail is so damn expensive. Land costs and almost half of the country’s 1.3 billion population Haier Electronics Group, which operates an labour costs are all really hurting margins. now have direct access to the Internet, and of online stall on Alibaba’s business-to-consumer Whereas it’s actually very easy to set up a shop that number nearly 80 percent own smart site Tmall.com, saw its e-commerce revenue on Tmall and your costs are massively reduced,” phones or tablets. jump almost 500 percent to 633 million yuan, or he said. China’s e-commerce market has grown at an 2 percent of its total revenue, in the first half of average rate of 71 percent from 2009 to 2012, 2013, from 106 million yuan in the same period Infrastructure obstacles versus 13 percent in America, and its total size is last year. Its total revenue grew 10.2 percent. Logistics, however, pose a major obstacle to e- expected to reach 3.3 trillion yuan ($539.07 bil- Suning Commerce Group saw its e-commerce commerce development, and Alibaba is now lion) by 2015, Bain & Company said in a report business rise to 10.6 billion yun in the first half of working with Chinese logistics firms to improve released yesterday. Total spending by Chinese 2013, an increase of 101 percent on the same nationwide infrastructure and delivery networks, consumers on online shopping reached $212.4 period last year. said Shih. Gome Electrical Appliances, whose billion in 2012, compared to $228.7 billion in the Soon retail companies may have to take a leap online revenue now accounts for 5-6 percent of US, the report said. Chinese companies with of faith, shutting their bricks and mortar outlets its total earnings of 27 billion yuan, is changing retail outlets have had to realign their sales to reduce overhead costs and hope that cus- its retail strategy to accommodate the new wave strategies to compete with online rivals who tomers will turn to their online stores, said of online customers. The firm closed a total of 35 threaten to undercut them in an increasingly Nicholas Studholme-Wilson, a senior analyst at stores in the first half of this year, said Helen competitive market long dominated by e-com- Sun Hung Kai Financial in . Alibaba, Song, a spokeswoman for Gome. Now the com- merce company , and others like whose customer-to-customer website is pany plans to continue moving away from its 360Buy Jingdong. the world’s 10th most visited according to web physical business to better supply China’s rapidly “It’s a massive change. It just means you need monitor Alexa, predicts e-commerce will account changing consumer habits. —Reuters

Microsoft joins in US spying suit SAN FRANCISCO: on Friday said that a battle to shed light on secret US government requests for TOKYO: A Google Japan employee displays the new “” tablet produced Internet user data would play out in court after failed by ’s computer maker Asus in Tokyo on August 26, 2013. The Nexus 7 peace talks. Microsoft and Google filed suits in federal will go on sale in Japan today. —AFP court in June, arguing a right to make public more infor- mation about user data requests made under the aus- pices of the Foreign Intelligence Surveillance Act. The Google Android executive technology titans agreed six times to extend the dead- line for the government to respond to the lawsuits, allowing time for negotiations that “ended in failure,” poached by China’s Microsoft general counsel Brad Smith said in a blog post. “To followers of technology issues, there are many NEW YORK CITY: China’s Xiaomi has response to an AFP inquriy. “We’ll miss him days when Microsoft and Google stand apart,” Smith poached a key Google executive involved in at Google and we’re excited that he is stay- said. “But today our two companies stand together... We the tech giant’s Android phones, in a move ing within the Android ecosystem.” Google believe we have a clear right under the US Constitution seen as a coup for the rapidly growing gives Android mobile operating system to share more information with the public.” Chinese smartphone maker. Hugo Barra, software away free to gadget makers and Internet titans want to be able to provide users with bet- who was Google’s vice president in charge banks on making money from its search, ter insight into what information the government gets its of Android product management, said in a email, maps and other online services tai- hands on. blog post late Wednesday that he is joining lored to work well on the resulting devices. The issue caught fire after Edward Snowden, a former Xiaomi to help them expand their business International Data Corporation reported IT contractor at the National Security Agency (NSA), outside China, where they already have early this month that smartphones pow- revealed that US authorities were tapping into Internet some market share, but are well behind ered by Android software increased their user data, sometimes using national security letters that Samsung and Apple. global market share as iPhones lost ground bar companies from telling anyone about the requests. “After nearly 5 1/2 years at Google and in the absence of new models being US officials on Thursday said they would begin publish- almost 3 years as a member of the Android unleashed by Apple. Android’s share of the ing annual tallies of national security requests for team-the most amazing group of people smartphone market grew to 79.3 percent in Internet user data, but that step is not enough, according I’ve ever worked with in my life-I have the second quarter while that of iPhone to Smith. decided to start a new career chapter,” Barra slipped to 13.2 percent from 16.6 percent in “For example, we believe it is vital to publish informa- wrote. “In a few weeks, I’ll be joining the the same three-month period last year, tion that clearly shows the number of national security Xiaomi team in China to help them expand according to IDC figures. This image obtained from NASA August 27, 2013 shows from more than 40 their incredible product portfolio and busi- While analysts believe Apple is well posi- countries and 30 US states, people around the world as they shared more than demands for user content, such as the text of an email,” Smith said. He argued that, along with providing num- ness globally - as Vice President, Xiaomi tioned to recapture market share with the 1,400 images of themselves as part of the Wave at Saturn event organized by bers of requests, disclosures should provide context Global.” “I’ really looking forward to this release later this year of new iPhone mod- NASA’s Cassini mission. That event on July 19, 2013, marked the day the regarding what is being sought. “We believe it’s possible new challenge, and am particularly excited els, there is pressure for a low-price version Cassini spacecraft turned back toward Earth to take our picture as part of a to publish these figures in a manner that avoids putting about the opportunity to continue to help of the smartphone tailored for the China larger mosaic of the Saturn system. The images came via Twitter, , security at risk,” Smith said. drive the Android ecosystem.” Android is market. Barra’s move is a win for Xiaomi Flickr, , Google+ and email. The mission has assembled this collage “With the failure of our recent negotiations, we will the Google-developed smartphone operat- while likely to have little to no effect on from the shared images, using an image of Earth as the base image. —AFP move forward with litigation in the hope that the courts ing system that is battling with systems Google or the company’s Android will uphold our right to speak more freely.” There has from Apple and Microsoft for dominance in team, according to S&P Capital IQ analyst been a wave of legal action since revelations in the the smartphone market. It is already offered John Kessler. media about the PRISM program, believed to collect vast on Samsung and other phones. But Xiaomi “Xiaomi is a really exciting and interest- cuts amounts of phone and Internet data as part of efforts to staked out in just two years a 2.5 percent ing story when it comes to spartphones in protect national security. Internet companies have stated share in the coveted Chinese market, China, a very large market with very big they release information only in response to specific according to Analysys International, with a opportunities,” Kessler said. “Getting some- price of game court orders, and claim that reports about providing easy strategy of discount prices for phones with one from Google Android’s upper-level access to US authorities are exaggerated. US authorities high-end features. management presumably tells something insist the surveillance programs are entirely lawful and Xiaomi was co-founded by a former about perceived opportunities for Xiaomi.” console by $50 have helped thwart dozens of terror attacks. —AFP Google executive, Lin Bin. “We wish Hugo “We don’t really look at it as having an Barra the best,” Google said in an email impact on Google,” he noted. —AFP WASHINGTON: Nintendo Co announced “Donkey Kong Country: Tropical Freeze,” Wednesday that it is cutting the price of “Wii Party U” and “Wii Fit U.” its Wii U video-game system as it braces “As long as we create high-quality for the fall release of competing consoles software we will be able to drive our GameStop Expo offers from and Microsoft. Nintendo will business,” Fils-Aime said. Regarding the reduce the price of the Wii U deluxe set price cut, he said: “Now is the right time from $349.99 to $299.99, effective to offer better value. This sets us up for taste of next-gen games September 20. The company will also a strong holiday season.” Sony’s new release a Wii U bundle featuring “The console, the PlayStation 4, is due Legend of Zelda: The Wind Waker HD,” a November 15 with a $399 price tag. LAS VEGAS: Inside the massive complex on the company’s nearly 4,500 stores in the U.S. spent ness,” said GameStop CEO Paul Raines. “This was remake of the 2003 game, that will also Microsoft has not announced an exact Las Vegas Strip that houses the glitzy Venetian three days learning all about how to sell new something that was pulled out of us. The cus- be available September 20 for $299.99. launch date for its new One, casino and Sands convention center, amid a games and hardware to customers like those at tomers wanted it. The PowerUp Rewards com- The Wii U has struggled to find an which will cost $499. soundscape of conflicting noises, thousands of its expo. The retailer currently boasts about 25 munity was asking for us to give them an oppor- audience. Nintendo sold 3.61 million of Nintendo also announced a new players are mashing buttons while staring intent- million members in its PowerUp Rewards pro- tunity to see new products and games. People the consoles between the Wii U’s handheld gaming device that will join ly at flickering screens. They’re not playing slots gram. love it because this is the only place where they launch last November and the end of its successful DS line. The Nintendo 2DS, or video poker. No, they’re trying their hand at GameStop launched the gamer gathering last can play ‘’ right now.” June. The company aims to sell 9 mil- coming Oct. 12 for $129.99, will play all upcoming games such as “Titanfall” and “Ryse.” year after the Grapevine, Texas-based company’s Raines declined to release pre-order sales This is the GameStop Expo. The world’s largest international divisions successfully hosted their data, but he expects this holiday season’s console lion Wii U units over the fiscal year DS and 3DS games - although it will not retailer first organized the gathering own events. (Last year’s EB Games Expo in launches to be the biggest in history and provide through March 2014. Nintendo of display the latter games’ three-dimen- of its most passionate customers last year during Australia welcomed more than 30,000 atten- some much-needed luck to both GameStop and America President Reggie Fils-Aime said sional graphics. Like Nintendo’s DS its annual meeting of store managers. While the dees.) Admission for Wednesday’s event ranged the gaming industry, which has seen sales slide in an interview that consumers who models, the 2DS has two screens; unlike Electronic Entertainment Expo in Los Angeles is from $20 for student tickets to $100 for VIP in recent years as Microsoft Corp.’s 7-year-old have bought the Wii U “love the system” them, it does not fold up. Fils-Aime said no longer open to the public, the GameStop access that included early entry. Xbox 360 and Sony Corp.’s 6-year-old PlayStation but want more software. Nintendo’s the 2DS is intended to appeal to “the Expo offers everyday gamers a chance to preview “We didn’t want to be in the live events busi- 3 have entered their twilight years. —AP game releases for the rest of 2013 entry-level consumer looking for lower- upcoming titles and hardware. include “Super Mario 3D World,” priced access to a fantastic library.” —AP The expo’s more than 5,000 attendees waited in snaking lines inside a cavernous Sands Expo hall early Wednesday to test-drive Microsoft’s and Sony’s PlayStation 4, the next-gen- Facebook allows eration systems due out this November. “: Ghosts,” ‘’Titanfall,” ‘’Ryse: Son of Rome” and collaborative online “” were among the most popular games on display. “I’m here to see and play all the next-gen con- photo albums soles and games for myself,” Shawn Smoak, a 22- year-old self-professed “Sony fanboy,” said while SAN FRANCISCO: Facebook on Monday the album.” Previously, Facebook mem- waiting to try out “Titanfall.” ‘’You can read every- began letting members collaborate on bers could only add photos to their thing you possibly can about them online, but shared online photo albums at the leading own online albums at the social net- until you actually get your hands on the con- social network. The Shared Album feature work. The new feature, inspired by troller, you don’t really know anything. That’s was to be introduced slowly, first becom- feedback from Facebook users, is what this is all about.” ing available to a small group of English- intended to let friends or family mem- Along with providing glimpses of such language users before gradually spreading bers collaborate on photo albums upcoming games as “Batman: Arkham Origins” across . “A shared album memorializing shared events or occa- and “Assassin’s Creed IV: Black Flag,” the expo also included panels, giveaways, photo booths, cos- is an album that multiple people can sions. Facebook members can invite as tume contests and free chocolate ice cream dis- upload photos to,” Facebook said in an many as 50 friends to contribute digital pensed from a truck promoting the “South Park: online post explaining the new feature. photos to online albums. Privacy set- The Stick of Truth” game. “When you make an album shared, tings allow sharing of albums to be lim- The event was just part of GameStop’s pur- you can add your friends as contribu- ited to those who contribute or opened pose in Vegas. Beyond the expo hall in meeting tors,” the post continued. “This allows to friends of contributors or the public, rooms at the Venetian casino and Sands conven- LAS VEGAS: An attendee takes photos of the Xbox One at the GameStop Expo in Las them to add, view and edit photos in according to Facebook. —AFP tion center, more than 5,000 managers from Vegas. —AP