Tag: China

  • Cheese tea bakery cafe Nayuki launches debut store in Singapore

    Cheese tea bakery cafe Nayuki launches debut store in Singapore

    Chinese tea bakery Cheese Tea Bakery Nayuki has launched its first overseas store at VivoCity. The popular brand, credited as a forerunner in pairing fruit teas with soft European-style bread items, is offering a one-for-one promotion to celebrate the opening. A wave of similar businesses has emerged within China and throughout the region following the brand’s business model.

    Cheese Tea Bakery Nayuki is entering the Singaporean market under a joint venture agreement with local bakery franchise BreadTalk Group.

  • Apple assembler Foxconn considering iPhone factory in Vietnam

    Apple assembler Foxconn considering iPhone factory in Vietnam

    Apple’s biggest iPhone assembler Foxconn is considering setting up a factory in Vietnam to mitigate any impact of the ongoing trade war. The report from Vietnamese state media comes after several executives interviewed last week singled out Vietnam and neighboring Thailand as preferred destinations should they need to shelter operations from the trade war, braving hurdles such a lack of skilled labor and inadequate infrastructure.

    Foxconn Group and the Hanoi People’s Committee are working together to open an iPhone manufacturing facility in Vietnam to negate the impacts of the U.S.-China trade war.

    Vu Tien Loc, head of the Vietnam Chamber of Commerce and Industry, raised the matter with Prime Minister Nguyen Xuan Phuc at a meeting on Nov. 22.

    “We are discussing the possibility of this with Foxconn,” Loc said, without elaborating. Hanoi People’s Committee Chairman Nguyen Duc Chung declined to comment.

    Taiwan’s Foxconn, formally Hon Hai Precision Industry Co Ltd said it “follows a strict company policy of not commenting on any matters related to current or potential customers, or any of their products”.

    In trade talks on Saturday, U.S. President Donald Trump and Chinese President Xi Jinping agreed not to introduce any tariffs for 90 days as negotiations continue.

  • Shanghai Tang sold to Chinese Lunar Capital fund

    Shanghai Tang sold to Chinese Lunar Capital fund

    Chinese luxury fashion label Shanghai Tang has been acquired by Chinese investment fund Lunar Capital. The new owner specialises in growing mid-sized Chinese firms, already holding a range of clothing brands. Their acquisition signals a new direction for the brand, which has just opened a flagship store on JD’s luxury platform TopLife, the brand’s first domestic online retail space. Shanghai Tang’s creative director Massimiliano Giornetti will be resigning following the handover.

    The rapid turnover just one year after its acquisition by Italian clothing firm A. Moda, Alessandro Bastagli, and Hong Kong private equity firm Cassia Investments follows disagreements between the buyers. The brand was purchased last year from Swiss luxury goods firm Richemont Group, one of the brand’s original investors and owners since 2008.

    Shanghai Tang is thought to be China’s first contemporary luxury brand, and pulled in estimated sales of US$45.57 million this year.

  • Cavalli appoints new General Manager Asia Pacific & China

    Cavalli appoints new General Manager Asia Pacific & China

    Founded in the Seventies, when fashion designer and entrepreneur Roberto Cavalli launched the brand, the label has recently seen a rapid growth in the region. Effective from 1st December Ivan Perra reports directly to the CEO regarding the region. Prior to this new role, Ivan Perra was Business Development Director APAC leading both wholesale and retail expansion in the region.

    Ivan has spent 12 years in the region.  He started his career in Retail for Kartell opening and managing the first 2 stores in HK in 2006; to later move to Lanificio F.lli Cerruti dal 1881 as Regional Sales Manager (APAC and North Asia) with focus on B2B and MtM markets.

    After 6 years in Cerruti Ivan took over a new challenge as Area Manager of Cote&Ciel (Parisian premium accessory brand) starting retail and wholesale development for the brand in Asia that now counts more than 10 mono-brand boutiques among Hong Kong, Macau, Thailand, Japan and China.

    Before joining Roberto Cavalli Ivan spent 3 years in charge of Business Development for the French Maison Kenzo (LVMH group) opening over 70 mono-brand stores in the region and in charge of over 120 POS.

    Ivan takes up this new role with a series of brand activations in the pipeline to strengthen the brand positioning in the region.

     

  • Alan Liis the new president of CBRE China

    Alan Liis the new president of CBRE China

    CBRE, the worldwide commercial real estate services and investment firm, recently announced the appointment of Alan Li as President, CBRE China, effective immediately. Alan will be responsible for CBRE’s advisory services across business lines in China, including Advisory and Transaction Services, Capital Markets, Asset Services, and Valuation and Advisory Services.

    Based in Shanghai, Alan will report to Ben Duncan, President of North Asia.

    To the newly created role, Alan brings approximately 18 years of professional experience in the China commercial real estate industry.

    He joined CBRE in 2015 and since this time has served as Managing Director of Capital Markets for Greater China.

    “The future of our brand in China will increasingly rely on our ability to further localize our business and solution offering to clients.” said Duncan.

    Alan is a member of Royal Institution of Chartered Surveyors (RICS) and a registered real estate broker. He is also a member of All-China Youth Federation and the standing committee of Shanghai Youth Federation, and Vice President of Shanghai Foreign-Invested Enterprises Youth Talent Association. He holds an MBA from Fudan University.

  • Macy’s, Tmall contract completely over

    Macy’s, Tmall contract completely over

    Macy’s China stopped taking orders on Tmall this week and will close its operations by the end of the month. The US department store business said it chose not to renew the contract with Alibaba’s Tmall which ends on December 31. “We sincerely thank you for your support and love of Macy’s, and we will continue to provide services to you through the American website Macys.com,” the US retailer said in a statement.

    Just two years ago, in an interview, Macy’s China president Dustin Jones assured customers that the company would not leave China. “We will become [a] Chinese Macy’s,” he said.

    That comment followed the closure of the company’s brick-and-mortar stores in Mainland China. Macy’s subsequently closed its own China website last June.

    Since 2015, the Macy’s China business has been operated in partnership with Hong Kong-based Fung Retailing.

    Beijing-based retail analyst Liu Dingding said that Macy’s China failed because it could not keep up with the fast-changing and diversified demands of Chinese consumers.

    “The market in China is changing much faster than those in the US and Europe. These Western giants seem to react a bit slower than their Chinese counterparts,” said Liu.

    Securing a local partner was one way of ensuring success in the market – as WalMart and Carrefour’s partnerships with Tencent have shown, said Liu. That way they can localise their offer and learn from Chinese experience.

    “[Western retailers] have built up operating experience with years of success back home. But before applying this experience in their Chinese operations [they should] respect Chinese culture, hire more Chinese executives and try to adjust the way that they have operated for years back home.

    “That’s the first step to gaining a foothold in the Chinese market,” Liu said.

  • JD to grow its own vegetables for sale on and offline

    JD to grow its own vegetables for sale on and offline

    JD has partnered with Japanese chemical manufacturing giant Mitsubishi Chemical to open the largest hydroponic “plant factory” in China. The omnichannel retailer says the premium-quality, fresh produce produced at the new facility will provide its customers with new options for safe, nutritious and environmentally friendly food, online as well as offline at its 7Fresh supermarkets.

    The factory spans 11,040sqm and incorporates a hydroponic culturing system with solar light and a closed seedling production environment using artificial light. Currently it can produce spinach, cabbage, red and green lettuce, coriander, among others.

    All crops produced at the site are tracked from the time they are planted to when they are delivered, a step toward the future of food production and retail as consumers worldwide increasingly demand transparency. In China, in particular, consumers place high importance on food safety while the overuse of fertiliser, environmental deterioration, and rapid population increase have caused soil problems.

    In the new facility, temperature, humidity, light, and liquid fertiliser are automatically controlled by the factory’s management system, enabling more standardised production of high-quality vegetables without the challenge of seasonal changes. For example, spinach produced in the facility contains 80 per cent more folate, 32 per cent more vitamin C, 25 per cent more potassium and 37 per cent more phosphorus than if grown in the field. Meanwhile, the technology makes pesticides and agrochemicals unnecessary, reducing the need for washing.

    The factory can produce a higher output of vegetables than traditional agriculture systems; it can grow 19 batches of spinach in a year, compared to just four batches per year in a field or six per year in a greenhouse. It only requires half a litre of water to grow any of the factory’s vegetables. The factory is integrated with JD’s cold-chain logistics network, so vegetables can be delivered to consumers’ tables as soon as the same day they are harvested.

    “The JD Plant Factory in Tongzhou marks JD’s entry into the very beginning of the fresh-food production chain, allowing us to guarantee that the fresh goods we sell have been treated with the care JD applies to everything we do,” said Xiaosong Wang, president of JD FMCG and food businesses.

    “JD’s supply chain technology, logistics network and e-commerce expertise combined with Mitsubishi Chemical’s sophisticated growing technology puts us in an ideal position to create an entirely new model for agriculture, and cultivates a fresh and healthy lifestyle in China.”

    Fresh vegetables from the plant factory will be available on JD.com and at 7Fresh stores from this month. JD and Mitsubishi Chemical will cooperate to introduce more fruits and vegetables in the future.

  • Remodeled M&M’S World Shanghai reopened

    Remodeled M&M’S World Shanghai reopened

    M&Ms World Shanghai reopened yesterday in Shanghai Shimao International Plaza. The newly remodeled 1600sqm interactive store, which offers an immersive, personalised experience with the M&M brand to residents and tourists, remains the only one based in Asia.

    The store is part of the global M&Ms retail business, which includes My M&Ms’ e-commerce sites and a B2B channel in the US and Europe.

    The M&Ms World Shanghai experience store features a “Great Wall of Chocolate” made out of more than 1 million M&Ms, a personalised printer, and a device that scans customers to create a personalised M&Ms avatar. It also features an improved checkout experience that allows mobile payment options from Alipay, WeChat and Apple Pay.

  • Poltrona Frau has opened a new retail space in China

    Poltrona Frau has opened a new retail space in China

    Italian furniture maker Poltrona Frau has opened a new retail space in Ningbo, China. The new 340sqm, single-floor shop presents a range of living spaces that alternate between living area and bedroom, dining room and home office according to the Poltrona Frau philosophy.

    The retail concept is designed to convey the atmosphere of a real home.

    Pieces on display include classic and contemporary designs, from early 20th century armchairs to recent Chinese lighting collections. The store features an area dedicated to showcasing the brand’s leather bookcase.

  • Valentino and Dior Men to run show in Japan?

    Valentino and Dior Men to run show in Japan?

    Pierpaolo Piccioli, creative director of Valentino, was in Tokyo last week to celebrate the brand’s Ginza Six store opening and its Pre-Fall 2019 runway show, titled “Valentino TKY,” of which Japan’s wabi-sabi aesthetic was credited as one inspiration.

    Kim Jones was also in town to present Dior Men’s Pre-Fall 2019 collection and a pop-up store Thursday evening, although his nod to Japan was a fraction subtler, having mined the Dior womenswear archives for Japanese influences to reinterpret as men’s garments.

    It’s not the first time that luxury brands have turned to Japan: Last October, Tokyo was also the site of Valentino’s Resort 2018 pop-up, while Dior’s haute couture Spring/Summer 2017 show bowed in April. In May 2017, Louis Vuitton took their cruise collection a few hours away to Kyoto.

    It’s also not unexpected that most designers who stage their collections in Japan find a way to reference the country on the catwalk, however fleetingly.

    The nation is home to inspiration galore: eclectic street style subcultures, unparalleled artisanship, a thriving beauty industry and icons of design and architecture all makes the country a mecca for creatives of all persuasions.

    But beneath the surface of very real enthusiasm that fashion creatives harbour for Japan, there is of course a carefully calculated business rationale for their choice of locale.

    As Asian markets now account for a disproportionately large share of luxury sales, it is clear that brands need to find ways to launch meaningful marketing activations in the region on a regular basis. Such shows have become a tried-and-tested formula.

    Unlike Korea, whose popularity as a location for pre-collection shows appears to have peaked, Japan is emerging as a perennial favourite. And although China continues to attract many brands looking for a place to present their catwalk shows in the world’s largest luxury market, recent examples tend to be repeats of shows that already had a debut elsewhere like last week’s re-staging of Miu Miu Resort 2019 in Shanghai or Chanel’s Cruise 2018 collection reappearing in Chengdu after also debuting in the French capital.

    Japan, by contrast, is not in the habit of staging re-runs.

    The value that luxury brands gain by using Japan as a staging post between their shows in Europe comes from several sources.

    Logistical efficiency is one not-so-romantic reason for its popularity as a transseasonal show location. By bringing their pre-collection activation to Japan, brands embellish a requisite part of their global marketing strategy while creating an opportunity to meet local partners and management in Asia’s most mature luxury market — and the world’s third largest.

    Piggybacking off the show in this way sends an important message at the consumer level too.

    Having been eclipsed by the Chinese, Japanese consumers are no longer the object of affection and attention to the degree that they once were. Luxury brands are increasingly stretched, unable to devote as much time to Japanese activations as they once were. With so many emerging markets in Asia and around the world to tend to, they are less able to provide Japanese kokyaku (VIP consumers) with intimate access to designers or face time with the press.

    With China consuming a third of the global luxury market, brands have been investing in strategic WeChat campaigns, optimising retail channels and desperately finding new ways of understanding the proverbial Chinese luxury consumer.

    Yet unlike China, where brands are rapidly opening retail and digital storefronts, online luxury sales are less developed in Japan, with only 7 percent penetration, according to McKinsey & Co. With consumers preferring to shop offline, Japan’s department stores remain dominant luxury distributors.

    The icing on the cake is that Japan remains one of the most attractive destinations for other Asians — and Asian fashion industry leaders are no different.

    Whether they be the brands’ joint-venture partners from Vietnam, distributors from Singapore, fashion editors from Indonesia or influencers from Thailand, Japan has the magnetism needed to draw in brand stakeholders in a way that other markets can’t emulate across the continent.

    Omotenashi — the philosophy of Japanese hospitality — usually tips the scales for potential show-goers in the region who may be wavering over an invitation.

    According to the latest report by Bain & Company, luxury purchases in Japan softened slightly this year, pushing brands to find new solutions to bring consumers back to stores. Retail sales in Japan grew at 3 percent at current exchange rates to €22 billion ($25 billion).

    Bringing an olive branch in the form of a pop-up or capsule collection to Japan is a way of balancing out the China-heavy luxury narrative, and assuring local consumers that they are still a priority for foreign brands and retailers. It’s also worth noting that Japan is a favourite holiday destination for Chinese luxury consumers.

    In light of the 2020 Tokyo Olympics, tourists are expected to further boost the luxury market — especially if the Japanese government takes key measures to improve the nation’s attractiveness.

    However, following Beijing’s latest efforts to boost domestic consumption of imports, Chinese shoppers’ holiday purchases may see a drop. How this affects travel hotspots such as Japan remains to be seen.

  • Shanghai, Singapore is now Asia’s most expensive city

    Shanghai, Singapore is now Asia’s most expensive city

    Asia’s most expensive city for high net worth individuals is no longer Hong Kong. Both Shanghai and Singapore have overtaken it, with property costs alone pushing it beyond capital cities across the region. Wealth Report Asia, published annually by financial services company Julius Baer, measures the price of a basket of items including property prices, a degustation dinner, cars, a piano, wine, jewellery and even botox.

     

    Shanghai is now Asia’s most expensive city to buy six of the 22 items Julius Baer surveys (a hospital room, watch, handbag, wine, jewellery and skin cream). In addition, it has grown more pricey on a relative basis to buy property (from fifth to fourth most expensive), and legal fees have lept from 10th to second.

    Singapore is the most expensive city to buy a car or a degustation dinner, and ranks in the middle of the list on every other item, its best result eighth for a piano.

    Property prices and business class air fares have skewed Hong Kong’s position on the list – they are more expensive there than elsewhere. But in contrast, Hong Kong is cheapest city to buy skin cream, the second cheapest for wine and jewellery and the fourth cheapest for men’s suits, womens shoes and watches.

    The region’s least expensive city is Kuala Lumpur, Malaysia’s capital. According to Julius Baer, it is the most competitive city to buy property, wine, jewellery, a piano and cigars or to rent a hotel suite.

    Price deflation of items onshore such as legal fees (down four spots) and jewellery (down three spots) offset a recovery in the value of the ringgit against the US dollar.

    The data was calculated on a price-weighted basis.

    Chinese luxury consumption slowing

    Meanwhile, the report says the “China express” driving the world’s luxury retail market is slowing.

    Chinese nationals accounted for just 2 per cent of luxury spending in 2003 yet by last year that share had soared to 32 per cent – and they account for more than 70 per cent of global growth.

    But Julius Baer says recent signs “are pointing to an outlook that will be less spectacular”.

    “Amid the ongoing trade conflict with the US and a softening growth dynamic, the Chinese stock market has come under significant selling pressure this year. Chinese consumer confidence, which has been a good leading indicator for luxury goods performance trends, appears to have rolled over.

    The weakness in Chinese consumer confidence has weighed on the sector of late, and is likely to remain a drag going forward if Chinese consumption trends continue to slow.”

    The report also noted that Chinese retail sales growth has also been moderating in recent months.

    “We believe China is going through a self-induced slowdown as the economy transforms from investment-led to consumption-led growth. Reforms are currently taking a back seat in favour of selective and measured easing but [we] still expect 6.5 per cent growth this year, before a slowdown to 6.2 per cent next year.

    “Following a strong recovery since 2015, it is reasonable to expect global luxury consumption to slow in the near-term from a high base and moderating Chinese demand. Yet we remain upbeat in the longer term premised on structural growing demand from Chinese millennials and a more prominent female presence in the luxury market.”

  • KKR to acquire significant stake in V3, TWG Tea

    KKR to acquire significant stake in V3, TWG Tea

    Private equity company KKR is to invest as much as S$500 million (US$366 million) into V3, the parent of cafe chain TWG Tea and massage chair retailer Osim, to fund regional expansion. In a deal which mixes equity and financing, KKR will take an unspecified “significant stake” in V3, which is effectively valued at S$1.7 billion. V3 is the company which resulted from last year’s restructuring of once-listed Osim International after plans for an IPO were shelved.

    Keith Magnus, chairman of Evercore Asia, which advised V3 on the deal said that the investment by KKR represents a more than 50 per cent increase in enterprise value compared to when the group was taken private.

    “This is a phenomenal premium for [Ron] Sim,” said Magnus.

    Sim remains the chairman, chief executive and controlling shareholder of V3. Sim, who remains chairman, CEO and controlling shareholder of the business added in a statement: “I am extremely pleased to welcome KKR as a significant shareholder in V3. I am confident this investment will position the company for our next phase of growth, starting with the immediate expansion of TWG Tea in Japan and the US and of Osim in China.

    “We would also be looking into M&A opportunities that are earnings accretive.”

    V3 also owns the rights to retail GNC nutritional supplements in Singapore, Malaysia, the Philippines and Taiwan.

    Sim says V3’s revenue cleared S$600 million last year and profit was also up.

  • Thai’s The Lobster Lab expands to China

    Thai’s The Lobster Lab expands to China

    Thai restaurant concept The Lobster Lab has opened its first outlet in Shanghai.

    The restaurant, operated by Bangkok-based Thai Union Group opened inside one of Alibaba’s Hema supermarkets last month. It serves lobster rolls, seafood chowder and some western dishes.

    The concept is based on Thai Union’s King Oscar brand, a dine-in and takeout restaurant which serves fresh lobsters imported from the US and Canada to meet “the growing Chinese consumer’s demand for tasty and nutritious seafood”.

    Thai Union also owns the American-style seafood restaurant chain Red Lobster and plans to open one of those stores inside IFC mall in Shanghai soon.

    The Lobster Lab is part of Thammachart Seafood Retail, of which Thai Union owns 25 per cent.

  • Iconic Toy Store FAO Schwarz to Open in Beijing

    Iconic Toy Store FAO Schwarz to Open in Beijing

    Heritage toy store brand FAO Schwarz is headed for Beijing after relaunching in New York City. The original store, which featured in Hollywood movies such as Tom Hanks hit “Big”, closed its flagship near Central Park, unable to meet rising rental costs. Its current smaller location under new owners ThreeSixty stands to benefit from significant nostalgia for the old store amongst New Yorkers.

    Beyond plans for China, ThreeSixty intends to open pop-ups in department stores both in the US and abroad.

    It faces the same competition from e-commerce and discount chains like Walmart and Target that toppled toy empire Toys R Us earlier this year.

    Chief merchandising officer David Niggli said the key to the new stores is experience.

    Attractions include magic tricks, certificates to “adopt” a doll and a Build-a-Bear Workshop.

  • Samsung is still top smartphone producer

    Samsung is still top smartphone producer

    Samsung Electronics managed to retain its position as the No. 1 smartphone maker in the world in the third quarter, but it may have a fight on its hands in the fourth quarter as Apple is expected to lower prices and increase production, according to a recent report from TrendForce.

    The report said Samsung was the top smartphone vendor in the third quarter with quarterly shipments of 74.5 million units, or almost 20 percent of the market.

    “While Samsung grew its sales by releasing its flagship Galaxy Note 9 ahead of schedule, the device was not a significant upgrade from last year’s Note 8 and made limited contribution to the brand’s total volume in Q3,” said the report.

    The Galaxy J series, on the other hand, was still instrumental in sustaining the brand’s overall production, the report noted. Samsung has also been promoting the Galaxy A devices, emphasizing their improved cost-to-performance ratios and cameras since the beginning of the fourth quarter.

    In the fourth quarter, however, iPhone production is estimated to reach around 76 million units, which would see it surpass Huawei and compete with Samsung for the top position, the report noted. Samsung’s volume in the last quarter is estimated to reach around 75 million units, in line with the company’s target for the period.

    Huawei was the world’s second largest smartphone producer in the third quarter, beating Apple for the second consecutive quarter. The firm’s production volume stood at a new high of 55.5 million units. iPhone production for the third quarter totaled 47.1 million units.

    “Huawei’s in-house research and development capabilities and extensive product lines across all market segments have benefitted its expansions in overseas markets during the recent years,” the report said.