Amazon starts Australian trial after months of hype

Australia has long had Amazon-registered sellers but they have been limited to sending goods offshore as Amazon had no warehouse in the country. (Reuters)
Updated 23 November 2017
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Amazon starts Australian trial after months of hype

SYDNEY: Amazon.com’s Australian arm began an order-taking trial on Thursday, giving life to the hype which has preceded its arrival in the world’s No. 12 economy and weighed on the shares of the brick-and-mortar retail sector.
The trial kicked off at 3pm with the Amazon Australia website’s search box filling in product names automatically. A representative for Amazon, which has never given a start date for Australia, declined to comment.
“It’s obviously working because auto-population is there,” said Liz Cassidy, founder of Amazon-registered beauty products retailer Third Sigma.
Cassidy, who already sells product overseas via Amazon, said she had made no Australian sales in the first hour, but noted that the trial involved a limited number of shoppers.
Australia has long had Amazon-registered sellers but they have been limited to sending goods offshore as Amazon had no warehouse in the country. Until now, Australians have had to wait long periods and pay sizable shipping costs for deliveries.
While online vendors are excited about the opportunities, Australia’s more traditional shopkeepers have faced pressure to convince investors they can compete against the US giant since it confirmed its plans for Australia in April.
Shares of Harvey Norman, Australia’s biggest electronics retailer, are down 9 percent since April 17, the day before Amazon said it was coming to Australia. Shares of Australia’s biggest department store chain Myer Holdings Ltd. are down 39 percent.
“It’s not as if the majority of retailers in Australia are making a fortune and growing their businesses,” said Gerry Harvey, executive chairman of Harvey Norman.
“If you’re in clothes and shoes and handbags, you can’t take a lot more pressure.”
Amazon set up its warehouse in Australia’s second-biggest city of Melbourne, on the east coast where four-fifths of the country’s 24 million people live.
Shoppers will watch delivery times closely with Christmas just around the corner.
“It will be really interesting to see whether it lives up to the hype,” said Tim McKinnon, the Australian managing director for eBay Inc, an Amazon competitor.
Some shoppers took to social media to voice frustration that the Amazon Australia website had not begun taking orders publicly.


Head of Saudi Arabia’s SRC: ‘Ask banks for a mortgage, and we will refinance it’

Updated 25 April 2019
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Head of Saudi Arabia’s SRC: ‘Ask banks for a mortgage, and we will refinance it’

  • SRC CEO Fabrice Susini: One of our key objectives is to ensure that the banks are extending loans to more and more people
  • Extending home-ownership is one of the cornerstones of the Vision 2030 strategy to diversify the economy away from oil production

RIYADH: The head of the state-owned Saudi Real Estate Refinance Company (SRC) has made an unprecedented offer to the Kingdom’s home-seekers to underwrite future mortgages.
Speaking at the Financial Sector Conference in Riyadh, Fabrice Susini, SRC CEO, told the audience: “Ask them (the banks) for a mortgage, and we will refinance it.”
Although Susini later clarified his remarks to show that he still expected normal standards of mortgage applications to be met, the on-stage show of bravado illustrates SRC’s commitment to facilitate home-ownership in the Kingdom.
“Obviously if you have no revenue, no income, poor credit history, that will not apply. Now if you have a job, it is different. We have people in senior positions at big foreign banks that could not get a mortgage,” he explained.
He said that Saudi banks have traditionally assessed mortgages on the basis of “flow stability” of earnings. Government employees, or those of big corporations like Saudi Aramco and SABIC, found it easy to get mortgages “because you were there for life.”
“One of our key objectives is to ensure that the banks are extending loans to more and more people. The government is pushing for entrepreneurship, private development, private jobs. If you work in the private sector and cannot get a mortgage the next thing you will do is go to the government for a job,” Susini said.
Extending home-ownership is one of the cornerstones of the Vision 2030 strategy to diversify the economy away from oil production. Saudi Arabia has one of the lowest rates of mortgage penetration of any G20 country — in single digit percentages, compared with others at up to 50 percent.