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Now on BBC News all the latest business news live from Singapore. | :00:00. | :00:16. | |
Alibaba reports better-than-expected earnings despite the slowdown in the | :00:17. | :00:23. | |
Chinese economy. And we find out why Asian companies are spending | :00:24. | :00:25. | |
millions of dollars to sponsor big sporting events. | :00:26. | :00:36. | |
Glad you could join us for this Friday edition of Asia Business | :00:37. | :00:42. | |
Report. China's biggest online retailer, Alibaba, is feeling the | :00:43. | :00:47. | |
effects of the slowdown in the country's economy. Their GMB rose 3% | :00:48. | :01:01. | |
to $147 billion. Revenues were better than expected but the volume | :01:02. | :01:07. | |
of growth was not. Earlier I spoke with an analyst to say another | :01:08. | :01:11. | |
factor was rising competition. I would think that overall the | :01:12. | :01:18. | |
economy's slowdown would have some impact on Alibaba but the truth is | :01:19. | :01:22. | |
that there is a move from off-line shopping patterns to online. So the | :01:23. | :01:27. | |
impact will be less. It is more from the competition because the | :01:28. | :01:30. | |
competition is actually getting more varied, and that is interesting. I | :01:31. | :01:41. | |
want to see how the competition will perform later in the year. How do | :01:42. | :01:47. | |
you think they will be able to remain competitive and keep their | :01:48. | :01:51. | |
competitors on the sidelines? Will they continue to grow organically or | :01:52. | :01:56. | |
will they make more acquisitions? I think the expansion of the roadmap | :01:57. | :02:11. | |
from business to consumer was done well, but now they're looking at | :02:12. | :02:15. | |
acquiring online financial business and moving into healthcare. The | :02:16. | :02:20. | |
different industries they need to tap into, they will need to consider | :02:21. | :02:25. | |
building up their business model. Another thing they need to look at | :02:26. | :02:37. | |
is business-to-business, they use cloud computing and that is the | :02:38. | :02:44. | |
focus. They also need to stay within sight of China, but also to conquer | :02:45. | :02:50. | |
international markets. These will be the major roadmaps that Alibaba need | :02:51. | :03:00. | |
to tap into. Shares of Amazon have tumbled 14% in after-hours US trade | :03:01. | :03:06. | |
as investors were spooked by a sharp spike in operating expenses even | :03:07. | :03:11. | |
though the online giant posted its third straight quarter profit with | :03:12. | :03:16. | |
sales rising by 22% to $36 billion in the final three months of the | :03:17. | :03:20. | |
year, pushing its overall sales past the first time. Taiwan's economy is | :03:21. | :03:29. | |
expanding at its slowest pace since the global financial crisis with its | :03:30. | :03:36. | |
GDP expanding by just .85% in 2015, dragged down by the slowdown in | :03:37. | :03:39. | |
China which is its biggest export market. Based on recent data, some | :03:40. | :03:45. | |
economists now believe Taiwan has fallen into a recession. Japan may | :03:46. | :03:47. | |
name and you economy minister today. The past minister resigned on | :03:48. | :03:59. | |
Friday over claims that he had received bribes from a construction | :04:00. | :04:04. | |
company. He admitted meeting the company's decorative and accepting | :04:05. | :04:07. | |
cash and gifts as political donations. To major sporting events | :04:08. | :04:12. | |
are taking place in Asia this week, tennis stars are in Melbourne for | :04:13. | :04:16. | |
the Australian Open which is sponsored by Korean automaker Kia, | :04:17. | :04:22. | |
and another is taking place in Japan. What influences these | :04:23. | :04:31. | |
companies to sponsor the sporting events? I asked a ahead of business | :04:32. | :04:37. | |
consultancy in Asia. The real risk in sponsoring these events is the | :04:38. | :04:41. | |
return on investment. It is very hard to track any kind of return | :04:42. | :04:47. | |
from a very large multimillion dollar investment. Reports last year | :04:48. | :04:52. | |
show that only a third of these companies tracked at all. Some of | :04:53. | :04:57. | |
them had a negative return. What about the return for their | :04:58. | :05:01. | |
sponsorships? Do they see concrete results? They see more brand | :05:02. | :05:09. | |
awareness. But there is a long difference between that and purchase | :05:10. | :05:14. | |
power. Just knowing about something doesn't mean you like it. Over the | :05:15. | :05:18. | |
past couple of years we have seen the slowdown in the global economy | :05:19. | :05:24. | |
and it is impacting Asia. Has this affected corporate enthusiasm for | :05:25. | :05:28. | |
supporting sporting events? One of the first things that gets | :05:29. | :05:30. | |
jettisoned when a country goes through financial crisis is sporting | :05:31. | :05:39. | |
events, it gets seen as an indulgence and Asian brands and | :05:40. | :05:42. | |
companies are much less likely to indulge those practices and are more | :05:43. | :05:46. | |
likely to put their money towards things that actually benefit the | :05:47. | :05:51. | |
customer, service, packaging, in-store experience a new product. | :05:52. | :05:55. | |
It also doesn't help that you have controversies hounding some major | :05:56. | :06:00. | |
sporting events. Corruption issues, match fixing, drugs. Does this | :06:01. | :06:05. | |
impact the appeal of sport? Absolutely. The brands want their | :06:06. | :06:13. | |
messages reflected and they want the great Halo effect. All of these | :06:14. | :06:17. | |
things damage the brand and with instant access through the Internet, | :06:18. | :06:23. | |
everything is going on to tarnish that appeal. What about diamond in | :06:24. | :06:27. | |
the rough sporting events that sponsors haven't been looking into? | :06:28. | :06:33. | |
Where do potential -- what are the potential sports? In Korea, millions | :06:34. | :06:40. | |
of people go online to watch a video gaming. It is one of the biggest | :06:41. | :06:45. | |
viewing sports in Asia now. You look at Indonesia and badminton is huge. | :06:46. | :06:49. | |
China has table tennis and Drome racing that is very exciting. -- | :06:50. | :07:05. | |
drone. Now we're talking about the traditional Indonesian wedding | :07:06. | :07:11. | |
outfit, prices start off very high. We're looking at how the process of | :07:12. | :07:18. | |
making address works. Beautiful, glamorous and expensive. This | :07:19. | :07:26. | |
traditional Indonesian dress for women has been modernized and is | :07:27. | :07:31. | |
mostly born by Indonesian elites. In order to get a dazzling dress like | :07:32. | :07:36. | |
this, one needs to order months in advance. In addition to patients, | :07:37. | :07:41. | |
customers also need to have deep pockets because the dress like this | :07:42. | :07:47. | |
costs around 5000 US dollars. It is out of reach for the average | :07:48. | :07:50. | |
Indonesian but the designer herself has a very good reason for the high | :07:51. | :07:55. | |
price point. One dress is made by around 25 workers. TRANSLATION: I | :07:56. | :08:03. | |
don't need to explain further why I have put a certain price point on my | :08:04. | :08:07. | |
dresses, because even the ugliest dress has a market value and it is | :08:08. | :08:10. | |
proven even though many have imitated my dresses from Western | :08:11. | :08:15. | |
Asia to East Indonesia. I still have customers. At her workshop in | :08:16. | :08:24. | |
central Java, an hour from the capital of Jakarta, she is also | :08:25. | :08:27. | |
training women to become designers and is giving lessons for free. | :08:28. | :08:32. | |
Those who don't have any experiences in design will be given a monthly | :08:33. | :08:37. | |
salary after training of around $70. It is less than the average salary | :08:38. | :08:41. | |
of around $140 at the salary will increase as their skills improve. | :08:42. | :08:47. | |
She never attended fashion school. She picked up her skills from her | :08:48. | :08:52. | |
mother, also a fashion designer. Her big breakthrough came when her dress | :08:53. | :08:59. | |
was worn by Ms. Indonesia in 1996. The fame also came with critics who | :09:00. | :09:03. | |
have judged her designs as being too modern and some have accused the | :09:04. | :09:06. | |
fashion designer of the training the Indonesian culture. TRANSLATION: I | :09:07. | :09:13. | |
felt really sad when I heard that. But I know I have to be strong and | :09:14. | :09:18. | |
make my mother proud. That pushed her to devote her talent and | :09:19. | :09:21. | |
financial resources to children. She said that this organisation to treat | :09:22. | :09:30. | |
children with medical conditions in 2012. Over the years come of the | :09:31. | :09:35. | |
foundation has provided medical treatment for over 1000 children and | :09:36. | :09:38. | |
they come from all over the country. She's also working on | :09:39. | :09:44. | |
pursuing her big dream. To set up a hospital in the near future. And | :09:45. | :09:52. | |
before we go, here is a look at the markets and Asia is currently | :09:53. | :09:57. | |
lackluster, moving sideways in early Friday trade despite gains overnight | :09:58. | :10:04. | |
as Facebook's earnings drove market higher. Was also a bounce back in | :10:05. | :10:13. | |
all will prices because industrial output was lower than expected in | :10:14. | :10:21. | |
the month of December. On Wall Street, the Dow Jones and the NASDAQ | :10:22. | :10:25. | |
finished almost 1% higher. Amazon shares plunged 14% and Microsoft | :10:26. | :10:30. | |
beat expectations. Thank you for investing your time with us, goodbye | :10:31. | :10:32. | |
for now. Rebellion in Myanmar | :10:33. | :10:36. | |
in the new political era, the BBC's exclusive report on | :10:37. | :10:41. | |
the militia groups still persecuted The World Health organisation says | :10:42. | :10:49. | |
there could be 4 million cases of | :10:50. | :10:53. |