Insights

Asia's private equity needs to adapt to a new slower growth reality

17 September 2024.  Asia's private equity industry is in the middle of a major downturn with deal closing, exits and fund raising all down significantly from the post-pandemic peak. In this article in Nikkei Asia we discuss how PE firms can turn the tide by cultivating a new set of capabilities focussed on operational expertise, strategic foresight, and the ability to drive tangible value creation within their portfolio companies.

INROAD Partners with SCP/Asia to Accelerate International Expansion

17 May 2024.  INROAD, a leading IT-software company specializing in the chemical and pharma industries, is pleased to announce a strategic partnership with SCP/Asia to support its international expansion efforts. This collaboration aims to enhance INROAD’s business development initiatives across the Asian markets, leveraging SCP/Asia’s extensive regional expertise and industry network.

SCP/Asia joins Singapore Chemical Industry Council (SCIC)

15 May 2024.  SCP/Asia has joined the Singapore Chemical Industry Council (SCIC) to better service clients in the chemical and pharmaceutical industry in the region. SCIC is the official industry association representing the Singapore Energy and Chemicals cluster in the private sector. It plays a proactive role in representing the interests of this manufacturing sector and continues to promote it as a major economic pillar of Singapore.  SCIC has a membership network of 170+ companies that support the entire chemical industry supply chain. 

Peak China? Navigating the Digital Marketing Landscape in China's Wine & Spirit Industry

28 March 2024.  In this third artile in the 'Peak China?' series, Michel Brekelmans and Nagarajan Purushothaman take a deep dive into a consumer sector and explore the best practices and emerging trends in digital marketing within China's wine & spirit sector.  With the rise of e-commerce and innovative online platforms, the Chinese alcoholic beverages e-commerce market is predicted to grow ~9% annually and reach  US$50+ billion by 2028.  We share 5 best practices for spirit brands to thrive in China’s digital marketing arena.

Peak China? How to survive China’s property bust

5 March 2024.  In this second artile exploring whether China has become ‘uninvestible’ or remains ‘open for business’, we look at China’s property and construction sector.  This sector has been hit hard over the past 2 years with several high profile bankruptcies of major property developers.  In this piece we look specifically at the implications for suppliers into the property sector, from building materials to appliance manufacturers, and what options they have to survive the deluge.

Gaming in Asia: Opportunities for Non-Endemic Brands in Asia’s Esports Sector

13 February 2024.  The gaming industry has witnessed remarkable growth worldwide, with Asia emerging as a key player in this dynamic sector. This paper explores the evolution of the gaming and esports industry in Asia, highlighting the key differences among Asian countries and providing insights into the gaming value chain and revenue generation for companies.  We will then explore how endemic and non-endemic brands can tap into this trend to their advantage.

Peak China? Exploring Opportunities in China’s Natural Gas Industry

21 January 2024.  Reports of ‘Peak China’ have become frequent in the international media.  Based on recent project experience we’re diving into a number of industry sectors to explore whether China truly has become ‘uninvestible’, as some commentators believe, or whether China remains ‘open for business’, a narrative currently pushed hard by China’s government.  We start this series with a look at one of the more sensitive industries for investment, the energy sector, and more specifically China’s natural gas sector.

Unveiling Business Opportunities and Winning Strategies in Asia's Telemedicine and Digital Health Industry

15 January 2024.  Bill Bossany and Michel Brekelmans explore the burgeoning opportunities and winning strategies in Asia's telemedicine and digital health industry. The telemedicine and digital health industry in Asia is experiencing rapid growth and transformation, presenting enticing business opportunities for both established players and emerging startups. With the advancement of technology, changing demographics, and increasing healthcare needs, the region offers a fertile ground for innovation and expansion.

With your start-up's CX, there is little room for error

13 June 2023.  A thought leadership piece from the Loyal VC advisor network written by SCP/Asia's Michel Brekelmans and Sudhir Sharma, head of Google's Customer Experience team based in Singapore. Michel and Sudhir cover the importance of customer service and five strategies startups can use to improve their customerexperience. A customer-experience led mindset should help start-ups better understand their customers as they navigate their journeys. It can also empower teams to improve their marketing, commerce, and care experiences across different channels and elevate the business to the next level.

Strategic Opportunities from AgriBiz Localisation:
Part 2 - Supply Side Megatrends

19 May 2022.  Part 2 in our agribiz series on the fundamental changes driving agri-food supply chains. In this paper we look at some of the fundamental supply side trends that are impacting actors across the agri supply chain. From disruptions cause by the war in Ukraine, Covid-19 and increased trade barriers to opportunities around sustainable farming, genetics and farming industrialisation in the developing world. Together with the profound cosumer trends discussed in part 1, these developments pose significant challanges and opportunities for agri businesses around the world.

SCP/Asia PE Newsletter - May 2022

1 May 2022.  We have compiled another round of insight papers focused on Asia's private equity (PE) industry.  We are looking at the opportunity for PE in the aviation sector, a play on resurging demand for travel now that restrictions are easing in most places around the world.   We also look at the cleantech sector in Asia which is seeing heavy activity again on the back of rising political and consumer pull and push for greener and healthier lifestyles. Other papers look at Asia's growing demand for health supplements and vitamins, the key success factors in Indonesia's B2B markets and how changes in consumer behaviour are impacting agri-food supply chains.

Asia Aviation: Private Equity Recovery Play?

29 April 2022.  Private equity (PE) investors are seeing a potential opportunity to step into Asia's aviation sector betting on a steep recovery following the pandemic. Asia has already seen a number of high profile PE investments, including Bain Capital’s acquisition of Virgin Australia and Affinity Equity Partners’ investment in airport lounge operator Plaza Premium. In this paper we take a look at the outlook of the aviation sector and potential investment models for PE players.

Vitamins & Supplements: Attractive growth opportunities across Asia's consumer markets

11 November 2021.  Asia share of the global Vitamin, Minerals and Supplement (VMS) market has grown to 45% vs 28% for the US and 15% for Europe 15%.  Asia’s largest market, China, is rapidly approaching the size of the US market at US$20bn vs US$28bn with China growing at a much faster clip. It’s no wonder many global VMS players are looking to enter the region or expand their footprint.  In this paper we share perspectives on the market and some strategic considerations based on previous work in the industry.

Strategic Opportunities from AgriBiz Localisation:
Impact of Consumer Megatrends on Agribiz Supply Chains

27 October 2021.  Global trading of agri products started to take off in the mid-eighties when excess palm oil needed to be moved to buyers around the world. Global supply chains developed and subsequently many other agri products were being traded on a global basis. Now, due the impact of several industry megatrends, many industry players are speculating whether trade patterns are moving back in the opposite direction towards regionalisation or even localisation of agri supply chains. The impact on industry stakeholders of such a shift would create significant opportunities and challenges for businesses across the agri value chain.  In this paper we summarise key implications of these trends for agribiz players based on discussions and projects with several leading industry stakeholders.

Go-To-Market: best practices for cracking into Indonesia's B2B markets

24 August 2021.  Indonesia is considered one of the big emerging markets that many global corporates have on their radar screen for future growth. With a population of 275 million, steady GDP growth and a rising middle class, Indonesia has the potential to be one of the major markets in Asia across a wide range of product and service categories. In this paper we summarise some of the lessons and best practices in cracking the B2B market in Indonesia based on our work with some of the leading suppliers of industrial products and business services. 

Cleantech post the Pandemic: Should Asia's PE Investors take another look at Cleantech Investments?

23 June 2021.  Cleantech has long been a niche investment category for private equity investors in Asia.  Most generalist players have shunned the category focussing instead on traditional business models in the consumer or B2B space and, increasingly over the past 10 years, healthcare and digital technologies. But a flurry of deals during the pandemic and increased commitment by many governments in the region suggests another look at the category is merited.   In this paper we explore the latest developments in cleantech investing in Asia and highlight if and where private equity players should be looking deploy their capital. 

Silver Linings: Asia Airline Outlook Beyond the Pandemic

15 June 2021.  Few industries in Asia have been hit as hard by Covid-19 as the airline and tourism industries.  But already prior to the pandemic several major developments were underway that were shaking up the industry such as the grounding of the Boeing 737 Max 8 fleet and a consolidation and expansion trend amongst some of the leading players in the region.  In this paper we take a look back at some of the these key developments and lay out what the post-Covid-19 world may look like for the aviation industry in Asia.

SCP/Asia PE Newsletter - February 2021

18 February 2021.  SCP/Asia PE Newsletter released in February 2021 shares key insight papers of interest to the PE community in Asia. The papers have been published in recent months and focus on a  number of key sectors: consumer, B2B and healthcare. We explore hot issues such as the rise of challenger and craft brands in Asia, opportunities arising from the Work-from-Home trend, take private opportunities in Asia's consumer and business service sectors and we synthesise best practices in commercial due dilligence in the healthcare sector.

China's HNA Group reveals years of unusual cash movements

31 January 2021.  Michel Brekelmans shares his perspectives in the article in Nikkei Asia on HNA's ongoing troubles. Following a massive global M&A spree, things have reached boiling point at HNA with several creditors filing bankruptcy petitions.  Already before COVID-19 hit HNA was struggling with their debt load. Performance has likely deteriorated as a result of the pandemic.  Furthermore the asset sale program will have hit a snag as most of their assets are travel / transport related which will have seen valuations hampered.  Hard to see how they can come out of this except through a bankruptcy and restructuring.

Global Players Search Out Asian Craft Brands

1 November 2020.  Michel Brekelmans and Alex Oldroyd take another look at Asia's craft spirits markets. Part 3 of the series was published in the November issue of Global Drinks Intel and discusses the increasing interest of global wine and spirit groups to conduct M&A activity in Asia's emerging craft sector. The list of Asian brand acquisitions to date is not a long one but is gradually expanding. Pernod Ricar, Diageo and Sazerac have all made investments in local businesses. Given the limited number of suitable targets, expect to see some frenzied bidding activity when prized assets become availble for acquisition. 

Asia's Giant Markets Embrace Craft Spirits

1 October 2020.  Michel Brekelmans and Alex Oldroyd take a deeper look at Asia's craft spirits markets in the October issue of Global Drinks Intel. Economic development and the growth of a largely urban middle class and high-net-worth individuals in both India and China has led to rising demand for premium spirits. Craft spirits have yet to garner a significant presence in Asia. Yet, as Asian consumers become more confident and individualistic, they are also becoming more experimental with a related connoisseurship, leading to a growing interest in craft spirits.

AZ Bioscience Week 2020: Asia Telehealth

16 September 2020.  Michel Brekelmans delivered a virtual presentation at the AZ Bioscience Week 2020 on telehealth developments in Asia. Asia's ageing population and increase in chronic diseases is putting tremendous strain on healthcare systems around the region. Digital health provides an opportunity to increase productivity an effectiveness of healthcare delivery and Covid-19 has accelerated acceptance of telehealth solutions by both patients and phycisians. In this presentation Michel does a deep dive into two areas, remote pathology in China and telemedicine apps in Singapore, to sketch some of the key issues and opportunities that are popping up. 

Asia's growing taste for craft spirits

1 September 2020.  Michel Brekelmans and Alex Oldroyd discuss the emerging trend for craft spirits in Asia in the September issue of Global Drinks Intel.  Asia has been late to the craft spirits party, but is now making up for lost time. In the article we discuss some of the high profile players that are attracting the attention of multinational wine and spirits groups, keen to get in on the action. Asia has home-grown premium brands, but only Japanese whisky has historically sold much outside its home market.  But that is changing with craft gins from Japan making a splash and other distilleries popping up around the region to cater to a consumer keen on something special. 

Success in Business Services: Selling Solutions or Services?

26 August 2020.  Despite the ongoing corona crisis, many business service companies benefit from favourable industry and market trends and attractive features of their business model. In this paper we identify several key factors that determine success in business services in Asia. Why are some players operating in the same sector and facing the same environmental opportunities and challenges more successful than others? By analysing the strategies and business models of the top performers we identified several best practices that can be adopted by other players in the region. 

Business Services: Take Private Opportunity in Asia?

12 August 2020. In a previous paper, we explored the opportunity for take privates and PIPE’s across the consumer sector. In this new paper we repeat the exercise but look at the business services sector which consist of a wide range of subsectors, including commercial, industrial and technology services. Many PE and corporate investors are attracted to business service companies given several favourable industry and market trends and attractive features of their business model. In this paper we present an analytical process for identifying potential investment opportunities across Asia's public business services landscape.

Work From Home: 7 business opportunities to put on your watch list

4 August 2020. Work From Home (WFH) is likely going to be here for the long run. Many businesses are able to take advantage of the opportunities arising from this fundamental shift in how millions of people around the world are now conducting their day to day work. We identified 7 opportunity areas to provide guidance for investors and business leaders who are looking to invest behind the next megatrend.

Consumer Products, Services and Retail: Take Private Opportunity in Asia?

22 July 2020. Take privates and private investments in public entities (‘PIPE’) have become a viable source of potential deal flow in Asia during the coronavirus pandemic. Much of the early DD can be done based on public sources and without direct access to the target and thus not impacted by travel restrictions which have hampered other types of transactions. Furthermore, valuations have been volatile and good deals are out there.  In this article we explore the opportunity for take privates and PIPE’s across the consumer products, services and retail sectors, perennial investment favourites amongst PE investors in Asia. 

Challenger Brands in Asia: Opportunities in Disruption

2 July 2020. Challenger brands have become a major force across many consumer product categories over the past decade. They have created substantial value for founders and investors and substantial headaches for owners of incumbent brands.  We have developed a paper where we take a look at the rise of challenger brands in Asia, the impact of COVID-19 and explore common strategies deployed by owners of incumbent brands. 

Healthcare due diligence in Asia

24 June 2020. Michel Brekelmans discusses the rise in healthcare investment in Asia and specific DD challenges in evaluating investment opportunities. In a fast growing and highly regulated market, healthcare deals have specific characteristics that are not found in other deals.  Pharma and medtech companies face uncertainties in clinical development and disruption from competing products. Service providers such as hospitals or diagnostic players need to specifically assess infrastructure, operations and human resource issues carefully.  In digital health the issues are different yet again, for instance looking at the adoption curve for new technologies and solutions and alternative business models for commercial success.  Furthermore, COVID-19 has added an additional layer of complexities to the healthcare due diligence process. 

Digital Health and private equity in Asia

9 June 2020. Michel Brekelmans and Bill Bossany discuss the trends in digital health investing in Asia from the perspective of private equity investors. COVID-19 has turned the PE industry upside down. Most firms are firmly focussed on ensuring the survival of their portfolio companies. But with almost $400bn of dry powder available for new investment in Asia, PE firms will soon want to restart their investment activities. We expect digital health companies to provide a wave of new investment opportunities for PE firms and in this article we characterise different digital health business models, describe the attractiveness of these models to PE investors, characterise the deal flow opportunities, provide examples of companies active in the digital health space in Asia and describe how PE firms can evaluate opportunities from a commercial and operational perspective.

Future Development of the Market for Home Appliances in China through 2025

12 May 2020. Wilfried Brouwer, Senior Advisor and former Asia head of a major NYSE-listed appliance maker, issued a report on the outlook of the home appliance sector in China. This study provides valuable insights to financial advisors, strategy-and corporate development personnel as well as to marketers and management responsible for China. It will point out the challenges but more so the opportunities lying ahead in the China market for home appliances. The report is for sale and and update with the latest trends and forecast can be commissioned upon request.

HNA at point of 'life or death' as coronavirus dims revival hopes

18 April 2020. SCP/Asia's Michel Brekelmans provided his perspectives to Nikkei Asian Review regarding the challanging outlook for HNA Group as a result of it's heavy debt load and the global turmoil facing the global travel and hospitality industry. With operating cash flows collapsing and valuations related to its asset disposal program taking a nose-dive the options for survical appear limited. A dramatic restructuring appears to be the only play left.

Video: Five Developments Shaping Asia's PE and VC Industry

29 January 2020. SCP/Asia has launched a videoblog targeting Asia's PE and VC industry. At the start of the new decade, Michel Brekelmans and Steven Willekens look back at the key developments that have shaped the PE and VC industry over the past 10 years. We also give our predictions for the major trends in the coming years. Asia's share of global PE deal flow has increased from 15% to 25% over the past decade representing significant growth for the industry.  At the same time the penetration of PE in Asia is still relatively low compared to Europe and the US suggesting ample growth ahead of us. Watch the full video to learn more about the forces shaping Asia's PE and VC indsutry.

China's HNA Group needs radical change of direction to prosper

28 January 2020. SCP/Asia's Michel Brekelmans published an article in Nikkei Asian Review on the dramatic rise and fall of China's HNA Group.  China's aviation-to-property conglomerate HNA Group has been on a wild ride in recent years. The group went on an aggressive overseas M&A spree, completing over 25 investments between 2015 and 2018, spending more than $50 billion and quadrupling the company's assets. The article explores the factors that led to the M&A binge, the consequences and potential ways to redesign the strategy and restructure the business the be on a long term sustainable path going forward.

Panel: Using Digital Transformation to Enhance the Passenger Experience

26 April 2019.  SCP/Asia's Michel Brekelmans chaired  a panel discussion at the 8th China Airlines Ancillary Revnue & Merchandising conference in Shanghai. Fellow panel members included Prof. Zhao Guihong from Civil Aviation University of China, Wang Jiayi from Ctrip and Xie Kaiyan from ATIT. There was a lively discussion on how airlines can best leverage digital technologies to enhance the consumer experience. Panelist shared examples of best practices withing the China consumer and regulatory context and which digital technologies and business models have the best change to help grow revenues and profits at Chinese airlines. 

Transforming the Customer Exprience: Technology Options that Improve Customer Satisfaction and the Bottom Line

25 April 2019.  SCP/Asia's Michel Brekelmans delivered a keynote speech at the 8th China Anillary Revenue and Merchandising conference in Shanghai.  He described the consumer mega trends that are impacting consumer behavior and how airlines around the world are adopting new technologies to transform the customer experience. Airlines historically have been relatively slow followers when it comes to adopting new technologies in the digital age. They have a unique opportunity to transform the customer experience and their business model by adopting innovative strategies and leveraging AI and big data capabilities.

Malaysia to review Boeing 737 Max orders after second crash

11 March 2019.  Boeing in hot water following the second 737 Max crash in less than 6 months. Several aviation authorities and carriers have grounded their fleet pending further information. And some carriers are reviewing their orders for the plane. SCP/Asia shares some perspectives in the attached article in Nikkei Asian Review. The Max problem leads to short term disruptions and financial impact for the carriers, especially those carrier where the Max represents a large share of the fleet. In the short term the airlines will have to made schedule adjustments and potentially look at some short term leases or delay the retirement of older aircraft. As long as the Max is not a very large share of the fleet they should be able to manage albeit with some short term financial impact.

Cathay Pacific confirms talks to buy Hong Kong Express from HNA

5 March 2019.  SCP/Asia's MD Michel Brekelmans shares his views on the potential acquisition of HK Express by Cathay Pacific in the attached article in Nikkei Asian Review. Following decades sitting on the LCC sideline, Cathay Pacific has finally jumped on the budget bandwagon. Seeing most Asian carrier adopt a dual branding startegy, the opportunity to aquire HK Express and taking out a competitor in the process was too good to let get. With additional capacity coming up at HKIA it provides Cathay a new growth engine as it's core premium service is under increasing pressure.

Garuda Indonesia on offensive again after CEO change

4 December 2018.  SCP/Asia's Michel Brekelmans shares perspectives on the planned reintroduction of direct flights on Jakarta - London by Garuda Indonesia. Building a viable long-haul business is critical for Garuda given the fierce competition from LCC's in its home market. Garuda needs to find a way to expand its international business as this is much more lucrative than the domestic market.  On international routes there is a higher share of business travellers which are much more profitable to serve compared to economy class passengers. Also, on short haul domestic routes, Garuda is facing fierce competition from low cost airlines who have a more competitive cost structure than Garuda.  

Lion Air crash report mixes clues with more questions

28 November 2018.  SCP/Asia's Michel Brekelmans provides perspectives in this article from Nikkei Asian Review on the draft report from Indonesia's National Transportation Safety Committee on the recent Lion Air crash. The long term impact for Lion Air is dependent on the outcome of the investigation and how they handle the the aftermath of the crash.  If the investigation concludes the crash was the result of maintenance or pilot errors then that  will impact consumer trust. The airline needs to over-respond in terms of its emphasis on safety and its treatment of the families of the victims. Only by doing that will it be able to limit the impact of customer trust on the company.   

All 189 aboard crashed Lion Air flight feared dead

29 October 2018.  SCP/Asia's Michel Brekelmans shares his views on the impact of the LCC sector in Asia following the tragic crash of a Lion Air jet in Indonesia in this article in Nikkei Asian Review. The majority of domestic passengers will see Lion Air as one of the few available options for cheap domestic travel in Indonesia. With its scale and extensive domestic network many passengers have limited alternative options to travel domestically in a fast and relatively cheap manner. This most recent accident will no doubt put short term caution into the market but down the line the majority of passenger in Indonesia will discount the risk of incidents and accidents associated with air travel to a low probability and continue to fly.   

Garuda Indonesia's new boss promises workers a happier bumpy ride

28 September 2018.  SCP/Asia provided some perspectives on the tough road ahead for Indonesia’s flag carrier, Garuda Indonesia. Garuda’s new CEO, Askhara Danadiputra, has his work cut out for him. Aside from the usual CEO talk of prioritizing innovation and avoiding complacency, Danadiputra promised improvement on a more personal level and will focus on improving employee capacity and making employees happy: "With employees who are happy, then by themselves the employee will provide the best service to the customer."

China's big 3 airlines must face up to the LCC threat

25 September 2018.  Nikkei Asian Review published this article from SCP/Asia on the dynamic developments shaping China's aviation industry. China's big 3 airlines must face up to the LCC threat. State-owned carriers should exploit their advantages to meet the startup challenge.  China’s big three state-owned airlines still dominate the country’s aviation market, but low-cost carriers have started to make a real dent in their market share with the help of recent regulatory reforms.

Developing a Multi-Brand Airline Strategy: Y/N?

12 September 2018.  SCP/Asia's Michel Brekelmans delivered a keynote speech at the Asia Pacific Forum on Civil Aviation Development (CADF 2018) in Shanghai on the merits of developing a multi-brand strategy for airlines in Asia.  He introduced the different ways companies can do multi-branding startegies and illustarted how airlines around the world have adopted the model. He illustarted the dual brand startegy that is common in Asia with premium carriers setting up low-cost brands to compete in the budget segments. He highlighted key chalaanges with this model and introduced the hybrid model which is now being adopted in the US and Europe.

Panel: how airlines groups in Asia-Pacific develop multi-brand strategies

12 September 2018.  SCP/Asia hosted a panel discussion at the Asia Pacific Forum on Civil Aviation Development (CADF 2018) in Shanghai with fellow panelists Derek Ho, Regional VP Global & Strategic Sales, Japan Airlines and Ilya Gutlin, Former President of Air Travel Solutions, SITA.  There was a lively discussion on how airlines groups in Asia-Pacific develop multi-brand strategies as they serve different customer segments in the market. There were some great questions from the audience, including several major Chinese carriers who are currently contemplating how best to position themselves in light of several emerging budget carriers targeting China's cost conscious passengers.

Death of HNA co-founder clouds asset sale drive

4 July 2018.  SCP/Asia provided perspectives to Nikkei Asian Review on the sudden death of HNA founder and Co-Chairman Wang Jian. HNA has been under heavy government pressure since last year to reduce its debts and rein in its overseas acquisitions. Wang Jian's death could be a big blow since the M&A spree is being unwind and the increased scrutiny on the Group. As co-founder and major shareholder he could have provided a degree of behind-the-scenes continuity and familiarity with HNA's core assets, at a time when HNA's other high profile Co-Chair, Chen Feng, is tied up with the restructuring and dealings with the authorities.

China must put the 'private' into PPP

17 May 2018.  Nikkei Asian Review published a feature article from SCP/Asia on the outlook for PPP in China. Following a purge in PPP projects what's next? Beijing should use the cleanup to establish clear standards for evaluating PPP bids and bidders while improving its own capabilities to conduct such analysis. The authorities should make clear that the "private" side of PPP will be genuinely open to private companies, including foreign ones, rather than allow PPPs to be limited to a closed club of government-owned entities.

Cathay Pacific, Singapore Air need to look beyond their planes

10 January 2018.  Nikkei Asian Review published a feature article from SCP/Asia on Asia's premium airline carriers. For decades, Singapore Airlines and Cathay Pacific Airways set the global gold standard in service quality and customer satisfaction.  But something has changed and both carrier recently reported their worst results in decades. A complete re-imagination of their customer relationship will be crucial for the recovery of Asia’s premium carriers.  

LeEco adds to bank worries over acquisition spree

6 July 2017.  SCP/Asia was quoted in an article from Nikkei Asian Review on the inreased scrutiny of the Chinese authorities on the outbound acquisition spree of Chinese companies. In recent years, Chinese players have agressively persued international expansion but without a clear strategy or experience signs are emerging that some players may have overstretched. It is likely that there will be a slowdown in outbound aquisition activity, especially in sectors that are not deemed of national strategic importance.

How to Involve Third Parties to Increase Airlines Ancillaries and Improve Customer Satisfaction through Innovation?

19 May 2017.  SCP/Asia chaired a panel discussion at the 6th China Airline Ancillary Revenue & Merchandising Conference in Shanghai.  The panel consisted of leading Chinese and international experts in airline ancillary revenues and discussed topics such as what are the best practices in driving ancillary revenues, what capabilities do airlines need to develop and how should they design their organisation and business processes to maximise success?  Given the scale of the Chinese travel market, ancillary services have huge potential but airlines should initially focus on a limited number of 'must-have's' before moving on to more niche offerings. 

Loyalty Best Practices: Driving Retention and Returns from Loyalty Programs

19 May 2017.  SCP/Asia gave a keynote speech at the 6th China Airline Ancillary Revenue & Merchandising Conference in Shanghai.  The speech highlighted the importance of the frequent flyer program in succesfully expanding the airline's ancillary revenue mix and driving financial performance.  Only by building a detailed understanding of the unique needs and requirements of each passenger can airlines ensure that they provide relevant and tailored ancillary services to their customers. If done right, loyalty programs and advanced big data anlytics provide the airline with the best tools and customer intelligence to make this happen.