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Taiwanese skincare brand seeks to enter Philippine market next year

TAIPEI — Taiwan-based skincare brand Derma-Xpert is set to sell its skincare products in Philippine dermatology clinics and drugstores next year, an official said in the beginning of the month.

Its supplier, the Asia Pacific Lovaty Cosmeceutical Corp., recognizes the emerging skincare industry in the Philippines, and began talks with potential distributors in Manila last month.

“[Our goal for next year is to] seal the deal with [Philippine] distributors so they can sell in the Philippines,” Gia Lee, its sales representative, told BusinessWorld at the sidelines of the HealthCare+ Expo in Taipei City, Taiwan.

“Because [revenues from] the medical aesthetic industry is increasing in your country, maybe at least one product line [has] potential in your market,” Ms. Lee said.

Derma-Xpert has distributed its skincare products to clinics in Vietnam, Hong Kong, and Malaysia.

The brand has marketed its skincare products to clinics, Ms. Lee said, citing how a dermatologist prescribing their products would help build buyers’ trust in the product.

“We want the doctor’s recommendation,” she said. “Because if they (dermatologists) trust our product quality and there is no problem, [that means] they will sell our product in their clinic,” she added.

Ms. Lee also cited the company’s particular products, intended for post-dermatology procedure care, like medicines after laser treatment.

However, she noted the company’s plans to sell in more generally accessible places like drugstores, noting its bigger market.

“We are still figuring that out because some people [have said that] the clinic is a potential market for us. But clinics [give] very small value for us because the average beauty customers buy from the store,” Ms. Lee said.

She said the company plans to sell its products in clinics, drugstores, pharmacies, and spas in Malaysia, Vietnam, and the Philippines.

Revenue from the Philippine skincare market was projected to amount to approximately $1.8 million (P99.7 million), according to German survey platform Statista. — Beatriz Marie D. Cruz

How to fix the carbon crisis in fast fashion

CLARK STREET MERCANTILE-UNSPLASH

DHAKA — With all eyes on climate talks in Dubai, the world of fashion is working out how it can fulfil an ambitious pledge to slash the emissions it makes clothing the world with speed and style. And the outlook isn’t rosy.

Big brands have promised big cuts to their carbon footprint — but it is manufacturing that causes most of the environmental damage and somebody has to foot the bill for the radical change.

“The scale of the decarbonization challenge completely dwarfs the funds available,” said Vidhura Ralapanawe, executive vice-president at the fashion company Epic Group.

Hong Kong-based manufacturer Epic — which makes clothes in Bangladesh, Jordan, and Ethiopia — has been at the forefront of global efforts to clean up the environmental footprint of the 2 trillion-dollar fashion industry.

“We are working with local and global organizations to move the whole industry forward, while trying to bring together brands, retailers, manufacturers, mills, and service providers.”

The key to progress, he said, is a positive partnership between brands and manufacturers. “Given the investment and risks manufacturers are taking, they need support in terms of long-term partnership as well as business terms that are sensitive to pricing,” added Mr. Ralapanawe.

Fashion is one of the world’s most damaging industries.

Behind 2% to 8% of all greenhouse gas emissions, it sucks up scarce water and creates vast amounts of pollution and waste. The industry in 2018 set the goal of halving emissions by 2030 and reaching net zero by 2050. But progress has been slow.

Britain’s monthly fashion habit alone creates the same carbon footprint as 900 round-the-world flights, according to the Oxfam charity. A 35-mile car trip creates the same environmental damage as making one cotton shirt, it added.

The stats have only got worse as the global appetite for fast fashion grows, with ever more consumers chasing the latest catwalk-to-high street trends.

Industry also knows that as of next year, it must comply with European Union legislation forcing companies to report and address emissions in their supply chains, with manufacturing to blame for about 80% of all apparel sector emissions.

But as global fashion brands pledge to drive down emissions and power towards the 2050 net-zero goal, textile and garment manufacturers are demanding that brands share the financial burden of investing in low-carbon technology and processes.

Last month, Transformers Foundation — a New York-based think tank that speaks for denim makers and brands — released a report urging more collective action to achieve a climate transition.

Kim van der Weerd, intelligence director at Transformers Foundation, said the apparel sector rarely asks “who pays” for the big transition, assuming that it is the suppliers whose facilities must change who will foot the bill.

“That is both impractical and inequitable,” she told the Thomson Reuters Foundation, given that suppliers have far less money than the big brands.

Experts said decoupling the key sticking point — who must act and who can pay — could help break the impasse, putting suppliers in charge of what changes to make and ensuring that brands duly invest in that overhaul.

PAYING FOR AMBITIONS
Textile makers want a range of funding options from the brands they feed to finance a new, cleaner production line.

Mohiuddin Rubel, a director at Bangladesh’s apparel makers’ trade body — the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) — said fashion brands can support suppliers by offering grants, low-interest loans, and direct investments. That will help suppliers move to more renewable energy and energy-efficient technology, as well as retain workers, he said.

Some initiatives are already underway. 

The Apparel Impact Institute (AII), a US think tank promoting sustainable investments, formed the Fashion Climate Fund last year that mobilized $250 million with the aim of unlocking $2 billion of finance and cutting 150 million tons of carbon from fashion over the next three decades. Kurt Kipka, chief impact officer at the Institute, said the fund could help speed cuts as the sector is ripe with opportunity for rapid reform.

Among suggested easy, quick wins: recovering heat from the water used in production or improving boiler efficiency.

Apparel makers said making climate finance available, accessible and affordable for suppliers is essential for a low-carbon future for fashion. But the sums involved are sizeable. If the industry wants to achieve net zero by 2050, it will need more than $1 trillion of investment, said an AII report.

NO COOKIE-CUTTER
Besides a shortfall in funding, the industry faces another big hurdle to rapid decarbonization — the sheer diversity of priorities and problems faced by its myriad suppliers.

In densely populated Bangladesh, suppliers find it difficult to generate enough rooftop solar power as most factory buildings expand vertically rather than horizontally, limiting roof space, cloth makers told a climate conference held in Dhaka in October.

In Pakistan, factories are unable to cut deals with third parties that would supply renewable power to help them cut emissions, and must instead make the reductions in-house, said the Transformers Foundation report.

In other words, one size will not fit all.

“If our approach is to take the collective goal of the Paris Agreement and to divvy it up equally amongst companies without taking feasibility into consideration, we will fail,” said Ms. Van der Weerd of the denim industry think tank.

Epic Group’s Ralapanawe said the needs of a giant may not be the same as those of a heavily leveraged small supplier, and a mix of financial tools will be needed to meet both.

Kurt Kipka, chief impact officer at the Apparel Impact Institute, said helping suppliers lighten their footprint demanded flexibility from funders.

“It’s imperative that we meet industry and partners where they are — based on the different needs of leading facilities and facilities only starting in the decarbonization journey,” he said. — Thomson Reuters Foundation

Seltos sets the scene

Three variants of the Kia Seltos are available: 1.4 Turbo SX (P1.688 million), 1.5 EX (P1.288 million), and the 1.5 LX (P1.198 million). — PHOTO BY DYLAN AFUANG

Kia PHL updates crossover model, announces rollout of electrified vehicles in 2024

By Dylan Afuang

IT MAY have been introduced just weeks ago, but the reskinned and retooled Seltos already represents Kia Philippines’ plans for next year.

Led by the Ayala Corp.’s automotive division, the local arm of the South Korean car maker in 2024 intends to deviate further from the public’s perception that the brand centers only on affordable products.

Instead, Kia Philippines embarks to capture an aspirational appeal through various marketing initiatives and offerings — its network of dealerships adopting a new corporate identity, while providing upscale customer experiences along with its lineup of stylish and modern vehicles.

Belonging to the latter category is this updated compact crossover — the first of five new cars which include Kia’s electrified vehicles and the battery-electric EV5 that the company plans to introduce by 2024.

If Kia’s goal is realized, the Seltos and its stablemates that follow should immensely resonate with buyers’ hearts and budgets in equal measure.

The brand’s aspirations and plans were announced by AC Motors Automobile Group President Antonio “Toti” Zara III, in a gathering that unveiled the new Seltos to the media and representatives of local Kia dealerships. Kia Philippines Chief Operating Officer Brian Buendia and AC Motors Chief Executive Officer Jaime Alfonso Zobel de Ayala also graced the occasion.

“Loaded with standout style, latest technology, advanced driver assistance systems, and enthusiastic performance, the Seltos is in a league of its own,” Mr. Buendia boasted of the updated crossover that was first introduced locally in 2020.

Three versions of the Seltos are now on sale, with the range led by the 1.4 Turbo SX (P1.688 million), followed by the 1.5 EX (P1.288 million), and the 1.5 LX (P1.198 million).

Styling tweaks applied to the crossover include a reshaped grille and headlights, and 17-inch alloy wheels featuring split-spoke alloys. The most distinctive change can be found at the rear end, where separate taillight assemblies on the previous model are replaced by a rear light bar that spans the entire width of the car’s rear.

The SX model sports a 1.4-liter turbocharged gas engine, dishing out 140hp and 242Nm of torque combined with a seven-speed dual clutch automatic transmission driving the front wheels — propelling the car from zero to 100kph in a quoted 9.7 seconds.

LX and EX trims, meanwhile, feature a naturally aspirated 1.5-liter gas mill, with 115hp and 144Nm of torque and is mated to an intelligent variable transmission (IVT).

The feature set of the Seltos is significantly improved inside. For example, the SX gets a wireless device charger, ambient interior lighting, a panoramic sunroof, and a full panoramic display. Six SRS air bags, Smart Cruise Control with Stop-and-Go, Forward Collision Avoidance Assist, and Parking Distance Warning are features of the top-tier SX model.

But Kia Philippines’ upmarket realignment doesn’t stop with the Seltos, as Mr. Zara expressed.

“(The year) 2024 will be an exciting year,” the executive continued. “We are coming in with four new models. (A number of these models) will come either as full-electric vehicles or hybrid-electric vehicles.”

As Mr. Zara confirmed only the launch of the EV5, he said, “It will be consistent with the Ayala Corp.’s strategy of moving the industry towards electrified mobility, as (it builds) an EV ecosystem.”

According to Mr. Zara, the Philippine car industry by 2024 anticipates surpassing the record 473,943 units achieved in 2017. About 14,000 of these, or three percent of industry sales overall, are predicted to be electrified. AC Motors — which also handles Chinese EV manufacturer BYD here — surely wants to contribute significantly to those lofty figures.

Once it arrives, the EV5 compact SUV will be retailed alongside the EV6 in the local Kia lineup. No details on the EV5 for the Philippine market were divulged, but in the Chinese market, the vehicle is quoted to feature 64- and 88-kWh battery packs with the latter achieving a range of 720km per charge, as well as regenerative braking functionality.

CTA grants most of Petron’s claim for tax refund

CTA.JUDICIARY.GOV.PH

THE COURT of Tax Appeals (CTA) granted Petron Corp.’s P459.96-million tax refund as part of its claim for erroneously paying excise taxes on petroleum products sold in 2017.

In a 32-page decision dated Dec. 5, the CTA Special First Division determined that only the specified amount from Petron’s tax refund claim of P465.65 million can be granted after an examination of the documents submitted by the oil company.

The ruling consolidated separate petitions for the excise taxes paid on the importation of Jet A-1 fuel supplies that were either locally produced, worth P10.5 million, or imported, worth P455.14 million.

Petron claimed that it was entitled to a refund under Section 135 of the revised tax code, which states that petroleum products sold to international carriers are exempt from the payment of excise tax. It first filed a request to the Bureau of Internal Revenue on June 22, 2018.

The appellate court ruled that the company has met the conditions for tax exemption stipulated in the law, such as the sales of petroleum products to international carriers and tax-exempt entities.

“When it is shown that the tax-paid petroleum products have become tax-exempt within the context of Section 135 of the Tax Code, the excise taxes which were previously paid thereon shall then be regarded as ‘erroneously or illegally collected,’ and thus subject to refund,” read part of ruling penned by Associate Justice Marian Ivy F. Reyes-Fajardo.

Petron is the country’s largest oil company and the only one with a refinery. It also does business in Malaysia. The company has a combined refining capacity of 268,000 barrels per day and produces a full range of fuels and petrochemicals.

Its regional operations cover about 40 terminals and around 2,700 service stations where it retails gasoline and diesel.

For nine months through September this year, Petron recorded a consolidated net income of P9.5 billion, up 16% from P8.2 billion a year ago.

During the period, it registered a consolidated sales volume of 93.6 million barrels, up 16% from the 80.4 million barrels sold in the same period last year. — Jomel R. Paguian

In China’s slowing beauty market, big brand discounts won’t cut it

FREEPIK

SHANGHAI — Expensive beauty hauls are a thing of the past for Evelyn Zhu. The Chinese branding professional says she now only spends on skincare essentials, joining millions of other consumers who have cut back on cosmetics in the world’s second biggest market.

“In recent years we all bought so many products,” the 32-year-old from the affluent eastern city of Hangzhou said. “My bathroom cupboard is full, it’s hard to say I need much more.”

This restraint, which has taken hold amid a slowing economy, spells bad news for global firms such as L’Oreal, Estee Lauder, and LVMH who for years banked on China’s $52-billion beauty market for growth.

Regional brands such as Japan’s Shiseido, which counted China as its top market for years, are also struggling.

But while the economic woes have certainly weighed on sales, analysts say the main issue facing the multinationals is their slowness to adjust to the shifting priorities of consumers, who have become more discerning about what they buy and are increasingly finding that local brands are more suited to their needs.

“What Chinese consumers are still keen to spend on are high efficacy products,” said William Lau, chief executive of multibrand beauty retailer Bonnie and Clyde, which stocks luxury international brands including Chantecaille and 111skin.

“What you’re seeing is a downgrade in lifestyle-driven luxury and premium brands,” he added.

Botanee Biotech’s sensitive skincare brand Winona is one of the beneficiaries of this paring back. 

The Chinese brand, which is priced at around the same level as L’Oreal products, is known for combating redness, a concern that marketing firm iResearch reported affects two-fifth of women. Analysts from CMB International estimate Botanee’s revenue will grow almost 18% this year to 5.9 billion yuan ($824 million), with Winona responsible for most of these gains.

By comparison, sales for the global beauty giants are expected to fall.

DEEP DISCOUNTS
An analysis from brokerage Jefferies showed first half China sales down 8% at LVMH’s beauty division, while sales at Estée Lauder Companies, which counts on China for one-third of its business, fell 12% over the same period.

Shiseido reduced its full-year profit forecast in November on slower China demand, which has also been hit by a boycott by some consumer of Japanese products following the release of treated radioactive wastewater in August.

L’Oreal, Estee Lauder, and Shiseido did not respond to a request for comment.

These results also come off the lower base of 2022, when the combined color cosmetics and skincare markets in China lost 9.5% of their value, data from Euromonitor shows.

While the market research firm expects growth of around 6% this year, it forecast won’t get back to its 2021 market size of $54.4 billion until 2025.

So far, the multinationals have responded to the slowdown by offering deep discounts of up to 40% and gifts during peak shopping events such as the annual online Singles Day festival, but analysts say the data shows even that isn’t really helping.

Luxe skincare brand La Mer, which rarely discounts, gave so many gifts-with-purchase over Singles Day that every sale resulted in almost the same amount of product being given away.

Independent data firm Syntun estimated that GMV, or gross merchandising volume, of beauty and personal care fell 6% year on year across all online shopping platforms. GMV is commonly used proxy for sales among e-commerce operators.

“The biggest global names have seen their Tmall GMV decrease by about 40% on average during 11.11,” said Jacques Roizen, the Shanghai-based managing director of consulting at Digital Luxury Group, a digital agency for luxury brands.

“Now we see you don’t have discounting as an acceleration lever you can press to go deeper or wider, because they’re already maxed out,” Mr. Roizen added.

Gregoire Grandchamp, co-founder of Next Beauty, a brand management partner for niche beauty players looking to grow in the China market, said the discounts offered by the beauty brands online this year have been “insane.”

But while these larger brands are better able to compete online than smaller companies that lack their marketing budgets, they are not immune to the slowdown in demand.

According to Grandchamp, the sooner they adjust to China’s new normal of single-digit growth rather than chasing the growth of yesteryear with brand equity-eroding discounts, the better.

“I think the way groups like L’Oreal will react will be to say, Okay, maybe it’s better not to have this euphoric growth, but to be more in a more rational market,” he said. — Reuters

China, Chongqing, Changan (Part 2): Growth over growth

The Changan Hunter pickup

OUR CHANGAN AUTO brand experience in China was a clear flexing of muscles for the Chongqing-headquartered automaker.

While it is steadily growing its portfolio here to earn a place as a legitimate option to meet what most car browsers are looking for, Changan also served notice that it can enter even more segments and price points should it decide our market is ready for them.

In the Changan universe are sub-brands Deepal (or Shenlan, purveying electric vehicles), Avatr (its premium EV line with joint investor CATL, the world’s leading battery manufacturer), Changan Qiyuan (electric vehicle line under the Changan brand), Changan Uni (ICE-powered vehicles), Oshan (mid-level SUVs and MPVs), and Kaicene (commercial vehicles).

To note here is that while Changan is the biggest ICE player in China, it already is making lots of headway in the electric vehicle department and, in fact, is dedicating a couple of sub-brands to the effort.

For Inchcape Philippines, the key to rolling out Changan models — and ultimately, brands — is that its dealership network can support the vehicles in terms of after-sales service. “We should be able to support what we sell,” declared Changan Auto Philippines General Manager Maricar Parco (See our interview with her on the right).

For now, Changan Auto Philippines has 19 3S dealerships — a number that will increase to 30 by 2024’s end. This number takes into account two company-owned facilities, including the flagship dealership to rise along Libis in the second quarter (the second is in a yet-to-be-determined location in NCR).

In China, the girth of the company is on full display — from the sweeping views and large footprint of the Dianjiang test site, smooth-running factory of Liangjiang, and the multi-brand test session we had (although a little too abbreviated). The messaging is clear in that Changan wants to be taken seriously — certainly as its so-called Vast Ocean plan takes effect. This basically looks at exponentially growing Changan’s market outside of China — to the tune of 1.2 million cars by 2030.

Message received.

A touch of royalty: Julien’s auctioning off outfits from Princess Diana and Princess Grace

ONE CAN GET the chance to place their hands on history with a sale by Julien’s Auctions and Turner Classic Movies (TCM) with an auction titled Glamour, Grace and Greatness on Dec. 17, the conclusion of Julien’s 20th anniversary celebration.

Up for grabs is a blouse worn by Diana, Princess of Wales for her engagement portrait, snapped by photographer Antony Armstrong-Jones, Earl of Snowdon (and Princess Margaret’s husband). The blouse is in blush pink crepe, with a ruff-like collar, loose pleating on the front, finished off with a pink bow. It was made by David and Elizabeth Emanuel, who also designed the royal’s 1981 wedding dress. In a press release, the auction house says that the blouse was presented on a rack of options for then-Lady Diana Spencer to choose from for her engagement portrait. The same statement quotes Elizabeth Emanuel’s book, A Dress for Diana, that the fashion team at Vogue had assembled a rack of clothing from a variety of designers to present to the future Princess of Wales (who died in a car crash in 1997 after her well-publicized divorce with then-Prince Charles). According to Ms. Emanuel, a client was trying on one of their custom-made gowns and left a black mascara stain on the skirt when taking it off. The Emanuels salvaged the remains of the dress, using the fabric to make this blouse that found its way onto that rack of clothing presented to Diana. Ms. Emanuel said that “When she saw our blouse on the rack she fell in love with it, asked who had made it and was directed to us.”

Ms. Emanuel sold this blouse from her archive in 2010. It was previously on display at Kensington Palace in London as part of the exhibition “Diana: Her Fashion Story” that ran from 2017 to 2019. The blouse is currently estimated between $80,000 to $100,000; with a single bid as of the time of writing at $80,000.

Another piece of Diana memorabilia sure to create some buzz is her Jacques Azagury dress, which she wore to a dinner held by the Mayor of Florence, Italy when she was on an official royal tour of Italy with then-Prince Charles in April of 1985. The dress features a black velvet bodice with embroidered stars in metallic thread made from Jakob Schlaepher fabric with a two-tier royal blue organza skirt with a sash and bow. The dress has padded shoulder pads, typical for the decade, that go into long sleeves that taper at the wrist. The dress, with an estimate up to $200,000, currently has a bid at $100,000.

There are more royal memorabilia at the auction: there are holiday cards signed by King Charles and the late Elizabeth II, as well as royal funeral service itinerary documents from the funerals of George VI, Queen Mary, and the Duke of Windsor.

More items associated with famous blondes will also be in the sale. There’s a costume design sketch for the late Princess Grace of Monaco, for her movie To Catch a Thief (estimated between $5,000 to $7,000); and dresses and scarves owned by Greta Garbo. There’s a clock owned by Marilyn Monroe ($2,000 to $4,000), and a nude photograph of her, owned by late Playboy founder Hugh Hefner. Dresses worn by Audrey Hepburn, as well as letters sent to friends, will also be in the sale; a highlight includes her yellow Hubert de Givenchy coat worn in her movie Charade (estimated between $20,000 to $40,000).

The auction will be held in Los Angeles on Dec. 17 (10 a.m PST) but the auction house is taking online bids. Register for online bids through JuliensAuctions.com.

D&L Industries expects better 2024 amid challenges

LISTED oleochemicals and specialty food ingredients manufacturer D&L Industries, Inc. is projecting a better 2024 amid more stable interest rates and lower raw material costs despite possible challenges such as the El Niño phenomenon. 

“For next year, even though the conditions are similar to where we are now, the increase in rates is not as bad anymore because we’re starting at a higher level. So for next year, I don’t think there’s a chance that interest rates will go up even more,” D&L Industries President and Chief Executive Officer Alvin D. Lao said during a recent media briefing

“So from that perspective, next year would be better than this year,” he added.

Mr. Lao said that D&L Industries has faced various challenges this year such as higher interest rates, costs, labor, and prices of raw materials. 

However, he projected that the challenges in 2024 would not be as difficult for the company. 

“This year, we were hit not just with the higher interest rates, we were also hit by higher costs. A lot of raw material prices were moving up. And then there were a lot of increases in minimum wage [and] labor. And then for us, another factor was [expenses for the] new plant and equipment,” Mr. Lao said.

“So, next year, it will still be challenging, but the assumptions are [rates and costs are] not going to be the same level as this year,” he added.

Mr. Lao said another possible challenge that D&L Industries is “closely monitoring” is the impact of the expected El Niño phenomenon on the company’s cost of raw materials such as coconut oil.

Meanwhile, Mr. Lao said that D&L Industries is expected to receive a boost from its new manufacturing plant in Batangas, adding that the plant serves as a good foundation for more volume and business.

“I think in a few months, we will start to see more activity from the new plant. A lot of our customers are doing certification and auditing. A lot of them want to come down physically to walk around, take a look, to make sure everything is moving. So, it really just takes time,” Mr. Lao said. 

“Even if it’s an existing export customer that we’re servicing with our old facilities, if it is a new plant, they need to re-certify,” he added. 

Mr. Lao previously said that D&L Industries is also set to get a substantial boost on its margins with the government’s plan to hike the country’s coco biodiesel blend to 3% from the current 2%.

D&L Industries is engaged in the domestic biodiesel industry through its subsidiary Chemrez Technologies, Inc., which operates a biodiesel plant.   

“The increase [in biodiesel blend] would mean the demand would go up automatically by 50% from 2% to 3%. The effect on volume and margin, we expect that it will be substantial,” Mr. Lao said. 

Shares of D&L Industries were last traded on Dec. 7 at P6.37 apiece. — Revin Mikhael D. Ochave

Q&A: ‘The whole brand portfolio is available for us’

Ms. Parco (right) leads a group inspecting the service section of Changan dealership in Chongqing. — PHOTO FROM CHANGAN AUTO

In China, Changan Auto Philippines GM Maricar Parco talks about brand positioning, and what the Filipino market can expect

Interview by Kap Maceda Aguila

What’s the reason behind this trip to Chongqing?

The reason why we brought our dealer partners and also our media friends is for everyone to be immersed in the brand. The best way to do that is to come to the headquarters, the home of Changan, and have a lot of seat time with the products. That’s really what drives the brand.

What is the core message?

All we want to say is that Changan Auto has all these product offerings and is a very good option for all the motorists out there. We want people to check us out; Changan Auto is a very good brand and is one of the top four brands in China. And now, they’ve decided to get out of (purely) domestic activities and get into sharing the product portfolio more aggressively outside of the country. It’s a vast range of products. So I’d say we have one for everyone — from the price-sensitive market to the more discerning drivers; from the ICE products to EVs. We have the whole product line. We have just relaunched in the Philippines, highlighting ICE offerings and previewed our Deepal EV line, just to show the possibilities of what Changan can bring into the market. We want to invite the Filipino motoring public to test-drive and see for themselves. We can talk about the specifications, but at the end of the day, it’s all about how you feel when you drive the vehicle, and what suits the lifestyle — from sedans, to SUVS, to pickups — even to EVs.

Noting the diverse lineup of Changan, what are the value propositions of the brand — things you want to put out there? To a large extent, Filipinos are now receptive to China brands. The challenge I think is to stand out from the pack.

I think this is the reason people really have to visit our showrooms and test-drive our vehicles, because it’s not simply about pricing or value proposition. I’m really very confident that these will exceed people’s expectations. What is standard in some of the higher-priced vehicles of other brands comes standard with ours. The smart technologies are there across the line, and the driving dynamics are something I’m really proud of.

We’ve tested several vehicles here — notably the Avatr 11 — that are not in the Philippines yet. That begs the question, how soon can we see these products in our country?

That’s the beauty of this partnership between Changan and Inchcape. The whole brand portfolio of Changan Auto is available for Inchcape Philippines. Again, we introduced the Changan ICE vehicles and previewed the Deepal which we hope to introduce as soon as next year. And because of the proximity of China to the country, we can get our vehicles quite quickly, and it’s really just a matter of having the business proposition approved. We’d be very happy to bring in the flagship brand, the Avatr to the country. We’ll keep you posted. EVs are inevitable, soon enough, we’d love to bring those in. That’s another reason we brought in our dealer partners. If they tell us they need this, we’ll go. We’re interested in hearing feedback as to what the Philippine market would be attuned to. All these possibilities are there.

With color-changing fabric, Hong Kong AI lab aims to reduce clothing waste

AIDLAB.HK

HONG KONG — Simple gestures could be all it takes to alter the color of your clothes in the future, according to a research team that has developed a color-changing textile embedded with a tiny camera and making use of artificial intelligence (AI).

The technology could help reduce waste by giving people more color choices for an item of clothing, says Hong Kong-based Laboratory for Artificial Intelligence in Design (AiDLab).

The fabric, which is knitted with polymeric optical fibers (POFs) and textile-based yarns, can be illuminated in a range of different hues.

A thumbs-up in front of the fabric triggers deep blue, a heart sign will turn it pink, while an OK sign will turn it green.

Colors can also be customized from an app on a phone and AI algorithms help the camera distinguish the gestures of individual users.

Professor Jeanne Tan, who works at Polytechnic University’s School of Fashion and Textiles and heads the research team, notes the POFs are made of polymethyl methacrylate which is recyclable, and the structure of the textile enables easy separation of POFs from yarns for recycling.

The fabric is also soft. “The hand-feel is just like any ordinary knitted fabric,” she said.

AiDLab hopes that the technology will one day be commercialized. It’s currently on display in installations at shopping malls and other locations in Hong Kong. — Reuters

Cebu Pacific allots P50-B capex

CEBUPACIFICAIR

BUDGET CARRIER Cebu Pacific is allocating P50 billion for its capital expenditure (capex) in 2024 mainly for its aircraft-related expenses, the company’s top official said.

“We estimate around P50 billion in 2024. It is mostly aircraft-related capex,” Alexander G. Lao, president and chief commercial officer of Cebu Pacific, told reporters last week.

The company targets to grow its fleet with an anticipated 16 new aircraft by 2024, Mr. Lao said, adding that the company is targeting to grow the number to 92 from the current 76.

Earlier this year, Cebu Pacific announced that it was expecting its biggest aircraft purchase to be completed by early next year.

To recall, the company is planning to order more than 100 narrow-body aircraft from Boeing or Airbus valued at an estimated $12 billion.

“The RFP (request for proposal) is still ongoing. It will be an exciting few weeks and a lot of the OEMs (original equipment manufacturers) are coming in to make their pitch and presentations,” he said, noting that the company hopes to process it by the first quarter of 2024.

In September, the company’s listed operator Cebu Air, Inc. said it would lower its fleet growth rate for 2024 as engine maker Pratt and Whitney (P&W) inspects A320/321 NEO aircraft engines worldwide following suspected issues.

“What we have said publicly is that we expect anywhere between 10 and 20 aircraft to be parked because of Pratt & Whitney throughout the year,” Mr. Lao said.

To mitigate this, the company will be doing short-term leases such as the agreement it entered with Bulgaria Air.

Last week, Cebu Pacific said it had signed a damp lease agreement with Bulgaria Air amid anticipation of increased passenger demand.

Further, despite an expectation of passenger upward demand, Cebu Pacific said that it does not expect to hit its pre-pandemic passenger count of 22 million this year.

“I think we will be slightly below that given all of the Pratt & Whitney-related issues. [It was] mentioned that by year-end, we will be at 103% of pre-COVID capacity on a systemwide basis but from a passenger point of view, I don’t think we will hit the 2019 numbers just yet,” Mr. Lao said.

The Gokongwei-led company, however, has expressed optimism about reaching the pre-pandemic passenger count next year by growing its seats by roughly between 5% and 8%.

“Clearly, for next year, that is what we’re going to aim to do. [For 2023,] we will be close enough to our 2019 passenger number, pretty close to that,” Mr. Lao said. — Ashley Erika O. Jose

Industry vet is new JMC and Peugeot brand chief

JMC and Peugeot Brand Head Arlan Reyes

ASTARA PHILIPPINES, which distributes the GAC, JMC, and Peugeot brands in the country, announced the appointment of Arlan Reyes as the brand head for JMC and Peugeot.

Mr. Reyes, who has more than 25 years of industry experience, will spearhead brand operations for JMC, the most recent addition to Astara’s portfolio. He will oversee the brand’s coming launch and direct its business operation strategies, in addition to initiatives for Peugeot.

Said Astara Philippines Managing Director Raoul Picello, “We are thrilled to welcome Arlan to the Astara family. His rich experience and proven track record in the motoring industry make him the ideal leader for JMC and Peugeot under Astara Philippines. We look forward to achieving new milestones together and further solidifying our position as a key player in the automotive sector.”

In a release, Astara Philippines said it is steadfast in its commitment to provide exceptional vehicles and services to the Filipino customer, and the recent appointment of Mr. Reyes “yet again underscores its determination to be the distributor of choice by prominent automotive brands.”

Mr. Picello added, “Our new executive leadership team is integral to our enduring strategy designed to strengthen our standing as a prominent player in the local automotive landscape. We’ve achieved remarkable success during our initial two years in the country, and our unwavering passion propels us toward even greater heights in 2023.”

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