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Tag: China

  • JD Sports sees revenues and profits soar in ‘record result’

    JD Sports sees revenues and profits soar in ‘record result’

    JD Sports saw profits increase more than 17 per cent to £95.4 million (US$124.1 million) in the six months to August 4, from £81.1 million in the previous corresponding period.

    The sporting retailer saw gross revenue jump 35 per cent to £1.84 billion, from £1.36 billion, while basic earnings per share increased 24 per cent to 10.05p, from 8.09p.

    “This is another record result for our group demonstrating that our multibrand multichannel premium offer has resilient profitability in its core UK and Ireland market with capacity for continued growth across an increasing number of international markets,” JD Sports executive chairman Peter Cowgill said.

    “Sales to date in the second half have continued at a similar levels to those in the first half, supporting our continued confidence in the robustness of the JD proposition.”

    Cowgill reported significant positive progress in Australia, where JD Sports has opened four new stores during the period, including the conversion of three former Glue stores.

    This brings JD Sports’ total presence to six stores in Sydney and four stores in Melbourne.

    The company plans to open a further three stores in the second half, including a flagship store on Pitt Street in Sydney, according to Cowgill.

    Like-for-like store sales for the APAC region stayed flat.

    The company said it will issue a more robust trading update after the Christmas period.

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  • Record profitability for Hermes after China-driven boom

    Record profitability for Hermes after China-driven boom

    A Hong Kong property windfall and the Hermes Asia business helped the luxury label set a record profit margin during the first half of this year.

    Hermes says recurring operating profitability reached 34.5 per cent of sales, with net profit rising 17 per cent to €708 million (US$824 million).

    And after including a capital gain of €53 million from the sale of the former Galleria store in Hong Kong, operating income reached €1.037 billion, up 11 per cent to reach 36.3 of sales.

    Hermes Asia sales – excluding Japan – rose 15 per cent, the strongest performing market internationally, continuing what the company described in a statement as “an outstanding performance, with positive momentum in continental China and the whole region”.

    During the half year, Hermes Asia benefitted from the opening of the Landmark Prince’s store in Hong Kong in January. Another new store opened in Changsha in May.

    Sales in Japan rose by 7 per cent.

    The Hermes Asia performance better that of the Americas (up 12 per cent), Europe excluding France (up 7 per cent), and France (up 8 per cent).

    Hermes global sales reached €2.853 billion, up 11 per cent at constant exchange rates and by 5 per cent at current exchange rates.

    “Hermes achieved an exceptional performance in the first half of the year,” said Axel Dumas, executive chairman. “Our commitment to the quality of know-how, the spirit of innovation as well as the creativity, always renewed, and the dedication of the women and men of Hermes, base the singularity and the integrity of our economic model; a strong model in a worldwide context that remains uncertain and unstable.”

    By product category, ready-to-wear led the way rising 17 per cent, thanks to broad acceptance of its “pertinent and bold” designs, the company said. Fragrance sales rose 15 per cent, watches by 9 per cent, leather goods and saddlery sales rose 8 per cent and silk and textile sales by 7 per cent.

    Other Hermes business lines, which include jewellery, art of living and Hermes Table Arts, grew by 24 per cent.

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  • First Chinese airport store for Daniel Wellington

    First Chinese airport store for Daniel Wellington

    Daniel Wellington has now opened its third travel retail location in Asia this year.

    Located in Shenzhen Bao’an International Airport Terminal 2, the Swedish watch brand opened its first boutique in a Chinese airport. The new store highlights Daniel Wellington’s travel shopping-exclusive lines, among which lies its three key products: the Cambridge Combo set, the Cambridge stand-alone 36mm set and the keyring set.

    Asia-Pacific travel retail locations are an increasingly important retail strategy for the contemporary watch brand, according to Daniel Wellington’s Head of Travel Retail Asia Pacific, Helen Wong.

    The new store opened on September 9 and showcases exclusive travel retail product offers for passengers that do not need to show a boarding pass.

    Helen explained Daniel Wellington’s strategy in choosing Shenzhen as a location for the store as it possesses a ‘young-spirited’ customer base and is a ‘key development’ for the brand’s boutique sales, especially for its top-tier Chinese city status.

    The Swedish brand had opened its first travel retail boutique in the region in July 2017  in the CITS Haitang Bay Duty Free Shopping Complex. It followed the same year with the opening of a second store in Malaysia’s duty free-zoned Forest City in October.

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  • Finland’s Amer Sports gets US$5.3 billion bid interest from China’s Anta

    Finland’s Amer Sports gets US$5.3 billion bid interest from China’s Anta

    China’s Anta Sports has lodged a US$5.3 billion bid for Amer Sports, which owns Salomon, Wilson, Arc’teryx, Suunto, Peak Performance and Precor, among other brands.

    Anta Sports has teamed with Hong Kong-headquartered private-equity group FountainVest partners in the bid, offering a 40 per cent premium over the target company’s share price before the bid was disclosed.

    Amer Sports appeared somewhat taken aback by the bid, issuing a statement saying it was “not engaged in any negotiations with the consortium and has made no decisions in respect of the Indication of Interest”. The company noted the bid was conditional on 90 per cent shareholder approval, board approval, financing and other conditions.

    “Amer Sports will release further information at an appropriate time if an agreement is reached with the consortium in respect of a transaction or any negotiations are terminated or abandoned.”

    Anta Sports, listed on the Hong Kong stock exchange, was founded in 1991 as a manufacturing supplier to the footwear industry. Since then it has grown to become China’s largest domestic sportswear brand and industry analysts estimate it is the world’s third largest by market capitalisation after Nike and Adidas. Besides its own Anta-branded goods, it owns the rights to Fila in greater China and in 2016 formed a joint venture with Descente Japan and Itochu, which has resulted in the opening of 85 Descente stores in China and early last year another joint venture with South Korea’s Kolon Sport led to a network of 189 stores. Childrenswear business Kingkow followed last September, which now numbers 63 stores in Mainland China, Hong Kong, Macau and the US.

    Sales last year grew 25.1 per cent to RMB16.69 billion (US$2.43 billion), following increases on 20 per cent in 2016 and 25 per cent in 2015. In the six months to June 30, year-on-year sales soared 44 per cent and profit by 34 per cent.

    As of June, the company had 9650 retail stores in Mainland China.

    In February, chairman and CEO Ding Shizhong said the company was actively seeking to buy “high-end international sportswear brands” with strong growth potential.

    Amer Sports opportunity

    Amer Sports posted sales last year of €2.69 billion ($3.12 billion) with 43 per cent of its revenue coming from Europe, Middle East and Africa and just 14 per cent from Asia. Sales in China have expanded from 1 per cent of total turnover in 2010 to 6 per cent this year and the company is eyeing 10 per cent within several years.

    The company has recently been targeting growth in Mainland China and Anta Sports’ obvious market knowledge and footprint in the country would significantly boost those opportunities.

    Amer’s fastest-growing division is softgoods, headed by the Salomon and Arc’Teryx brands.

  • Shanghai crowned most expensive city for luxury jewellery in Asia

    Shanghai crowned most expensive city for luxury jewellery in Asia

    The Cartier Love Bracelet has been a benchmark to compare luxury jewellery prices across Asia. Made of 18K white gold with 204 diamonds, the bracelet’s price varies from one Asian cities to the other.

    The Julius Baer Wealth Report Asia revealed Shanghai to be once again the most expensive city to purchase the Cartier Love Bracelet, at USD 48,143.

    High import tariffs on luxury jewellery were the main driver behind the exorbitant price. Conversely, Kuala Lumpur is the most price competitive at USD 41,818.

    On average, prices in the region were flat year-on-year, although certain cities witnessed significant fluctuations.

    Hong Kong saw the most significant price gain, whereas Mumbai experienced the biggest decline.

    What is the justification behind the price tag of a luxury jewellery piece? A prestigious brand, the intricacy of the craftsmanship as well as the quality of the precious stones all enhance its desirability.

    In auction markets, rarity and provenance stand out. Globally, Hong Kong is one of the top three jewellery auction hubs for Sotheby’s, driven by solid demand from Chinese HNWIs. Many mainland Chinese continue to invest in rare pieces such as top-of-the-line
    diamonds, coloured gemstones and jadeite as part of portfolio diversification.

    Noting the discerning taste of buyers across the region, Sotheby’s Deputy Chairman, Asia, and Chairman of International Jewellery, Mr Quek Chin Yeow says: “Asian buyers have always been focused on quality. They would rather have a 10-carat D-flawless diamond instead of a 20-carat F-VVS one. They go for quality instead of size.”

    Cindy Tang, Managing Director Senior Adviser at Bank Julius Baer, comments: “From our conversations with clients, high net worth individuals allocate part of their wealth to jewellery assets such as high-end diamonds.”

    Nevertheless, caveat emptor applies. Returns from collectables may be hard to realise, while the market for precious stones is difficult to predict.

    In conclusion, Asian buyers have proven to be a dominant force in the global high-end jewellery auction market. Remarkable auction results in recent years are testament to the buoyancy of the Asian market.

    Luxury jewellery will clearly not be losing its lustre in the region.

  • Apple to open significant new Chinese retail store in Suzhou

    Apple to open significant new Chinese retail store in Suzhou

    Apple China is set to open a new retail store in the Chinese city of Suzhou.

    Roughly coinciding with the imminent launch of the new iPhone and Apple Watch models, Apple’s 505th retail outlet will open beneath the city’s tallest building, Gate to the East, adjacent to Suzhou’s largest shopping centre Suzhou Center Mall.

    It is the second new location for Apple in greater China this year since opening in Macau a few months back.

    Mystery surrounding the developing store under construction was cleared when its facade was recently revealed to bear the chromed Apple logo.

    Suzhou, along with Shanghai, was recently announced as a target location for new Apple R&D facilities.

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  • Lego’s big prospects in China

    Lego’s big prospects in China

    Danish toymaker Lego Group said it plans to ramp up its China retail rollout, with two new flagship stores poised for Shanghai and Beijing by mid-2019.

    The Copenhagen-based Lego, which recorded double-digit revenue growth in China in the first half of the year, said a new store is slated for Shanghai as soon as this month, in the city’s downtown district, while the Beijing boutique is planned for early 2019.

    For the first six months of the current fiscal year, Lego’s total sales hit 14.3 billion Danish kroner ($2.2 billion), a 5% drop from last year’s performance. Operating profit declined 4% to 4.2 billion Danish kroner, while net profit dropped 10% to 3 billion Danish kroner.

    But China, which recorded double-digit growth for the brand, was a bright spot.

    Jacob Kragh, senior vice-president at Lego, told China Daily that China has much room to grow, especially through the learning through way toy category, as parents focus on construction-based toys.

    In May, Lego inked a video channel deal with Tencent Holding’s to appear on the media giant’s streaming platform.

    Moving forward, Lego plans to invest more in innovative products and enhance its digital, alongside its physical presence in China.

    Lego first entered mainland China two years ago, with a flagship store opening at Shanghai Disney Resort in 2016.

    Most recently, in August, Lego opened four certified Lego stores in Wuhan alone, via retail partnerships in China, taking its total to 36 partnership stores.

    By year-end, Lego is planning to have up to 60 stores across 15 Chinese cities, with the new stores mostly located in second and third-tier cities.

    Lego also recently joined forces with IKEA to encourage more play. The collaboration aims to increase the opportunity for more play, and the first step is to try to make the home a better functioning and more fun place as IKEA believes play to be an ‘essential part of a better everyday life’.

  • Burberry is launching ‘See Now, Buy Now’

    Burberry is launching ‘See Now, Buy Now’

    British luxury fashion house Burberry is releasing a see-now, buy-now collection exclusively on Instagram and WeChat.

    Limited-edition pieces from the collection, the first released under the Burberry label by designer Riccardo Tisci, will be made available through 24-hour product releases on the two platforms. The inclusion of WeChat on the see-now, buy-now program illustrates the importance of the Chinese market for the brand.

    A physical sale for the collection will be held in the Regent Street, London flagship store at 5.30 pm on September 17, immediately after Tisci’s runway presentation at London Fashion Week. The store will be visually transformed under a Tisci-designed concept for the 24-hour sale.

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  • Chow Tai Fook Held Crossover Art Exhibition at NYFW 2018

    Chow Tai Fook Held Crossover Art Exhibition at NYFW 2018

    Chow Tai Fook has mounted a New York – New York art crossover exhibition for New York Fashion Week, taking the company’s brands and Chinese art and design into the international arena.

    Chow Tai Fook unveiled its high-end jewellery brand Hearts On Fire, as well as the latest New York – New York jewellery series in the art-crossover exhibition, created by Chinese students Scynge Xing, Zhang Mengtai, Wu Tianran and Chen Yihan from the top four art schools of the US, Parsons School of Design, Columbia School of the Arts, School of Visual Arts, and NYU Tisch School of the Arts.

    Chow Tai Fook also cooperated with Graduates Art Fair to provide a platform for outstanding Chinese graduates to showcase their talents. Chow Tai Fook selected five young artists – Fu Qiang, Cheng Xiaofang, Zheng Jiahao, Ren Xiaofang, Ma Shaoning – from China’s top eight art schools to display their works at the exhibition.

    Ma Yanli, Lan Xi, Jiang Zixin, Zhang He, Qiao Dawei and Tan’ai attended the event as charity ambassadors to show their support.

    Chow Tai Fook says the New York – New York Art Crossover Exhibition is dedicated to promoting the development of Chinese art design, providing young artists with a platform to show their talents and using the brands’ influence to help more artists realise their dreams.

    After debuting at New York Fashion Week Preferred Show Pier 59 Studio on Sunday, Chow Tai Fook’s New York, New York jewellery series is on pre-sale at major e-commerce platforms in China and North America, including Amazon, JD, Suning, Tmall and Chow Tai Fook’s own site.

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  • Sephora’s new omni-channel retail concept for China

    Sephora’s new omni-channel retail concept for China

    French cosmetic retailer Sephora unveiled plans for new retail experience in China on August 31, coinciding the announcement with news of its next Chinese brand ambassador.

    Sephora announced its new concept “My Beauty Power Turn It On” at a press conference at the Shanghai Film Plaza late last month, saying the initiative is designed to help shoppers discover an individual and unique beauty, “and rediscover, lead
    and create a new meaning of beauty that is distinct to them.”

    The make-up brand introduced its new Sephora mini program, offering a new experience of omni-channel social retailing to Chinese shoppers.

    Increasing the Millennial appeal, Z.TAO, a famous Chinese singer and actor, was also named a brand ambassador.

    “This is an attempt by Sephora to embrace Chinese social culture and become the first comprehensive vertical beauty retailer to offer a full social shopping experience,” said Sephora China, in a statement.

    Sephora’s first ‘Asian New Concept Store’ will be rolled out in Shanghai in September.

    “The fully upgraded Asian New Concept Store will give every consumer a chance to confidently create their own beauty power,” said Sephora.“We believe that the unrelenting pursuit of beauty, the constant exploration and leadership in beauty trends, along with the continuous innovation of experiential sales are the best ways for Sephora to fulfill its commitment to Chinese consumers.”

    Sephora currently has 228 physical stores in China, covering 74 cities.

    The French retailer also operates a Sephora app and official website in China, as well as its Tmall flagship store and JD flagship store.

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  • China’s cross-border e-commerce turnover

    China’s cross-border e-commerce turnover

    China’s cross-border e-commerce is forecast to see turnover top 9 trillion yuan (1.3 trillion U.S. dollars) in 2018, according to a report released by the China E-Commerce Association.

    The report, released on Sunday at the ongoing 20th China International Fair for Investment and Trade (CIFIT), held in Xiamen, east China’s Fujian Province, said that the top 10 import sources of China’s cross-border e-commerce trade in 2017 were Japan, the United States, the Republic of Korea, Australia, Germany, New Zealand, the Netherlands, France, Britain, and China’s Hong Kong Special Administrative Region.

    Cross-border e-commerce is most active in south China’s Guangdong Province, followed by Beijing, east China’s Zhejiang and Shandong provinces and central China’s Henan Province for exports via e-commerce.

    Tong Xiaomin, chief engineer at the Information Center of the Ministry of Industry and Information Technology, said that the Chinese government supports cross-border e-commerce with policies and infrastructure building.

    Globally, however, trade protectionism in forms of tariff barriers and anti-monopoly investigations has posed negative influence on the development of cross-border e-commerce, Tong said.

    He suggested that Chinese e-commerce firms and importers should heed turbulence in the international trade environment and improve their global competitiveness. Meanwhile, the e-commerce platforms should explore new market and adopt new technologies and applications to ensure the high-quality development.

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  • Walmart’s mini program “Scan to Buy” has attracted over 10 users in China

    Walmart’s mini program “Scan to Buy” has attracted over 10 users in China

    Walmart Scan & Go use in China has broken through the 10 million-users barrier, the first mini-program in the retail industry to reach such a broad user base.

    Since launching last April, Walmart Scan & Go – which allows customers to scan their own items and complete payment on their mobile phones for in-store purchases – has been promoted in nearly 300 Walmart stores in more than 50 cities. By the end of the year, it is expected to be available in more than 400 Walmart stores across the country.

    In the two-month tryout period in some Walmart stores, Scan & Go reached a penetration rate of up to 30 per cent of in-store customers choosing to use the mini-program to make payment. About 95 per cent of those users said they were willing to continue to use this new self-help checkout method.

    The mini-program also features an electronic mapping service called “Find My Item”, which provides customers with an electronic map-based shopping guide service helping in-store customers to quickly locate the products they need.

    Jordan Berke, Walmart China Hypermarket’s VP of e-commerce said: “Walmart Scan & Go is one of our important initiatives to deliver innovation and omni-channel experiences to our customers… We believe that innovative technologies provide a more convenient experience to customers and enhance customer loyalty.”

    Cecilia Tian, head of smart retail strategic partnership at Walmart’s partner Tencent, said: “Scan & Go meets the customer’s needs by shortening the checkout time. For retailers, Scan & Go helps anchor their digital assets and improve the digitalisation and CRM capability. It brings positive impact on O2O business. Tencent hopes to collaborate with retail partners such as Walmart, who are able to build a holistic, seamless O2O experience with digitalisation tools, improve the operation efficiency and drive business growth.”

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  • Chinese hotpot giant Haidilao preparing for Hong Kong IPO

    Chinese hotpot giant Haidilao preparing for Hong Kong IPO

    The Beijing-based firm, known for serving Sichuan-style spicy hotpot, is in the process of the pre-deal investor education (PDIE), during which analysts discuss the company’s valuation with potential investors.

    It will take orders from institutional investors today, according to people familiar with the matter. The IPO will be opened to retail investors on Wednesday.

    The hotpot company generated a first-half revenue of 7.3 billion yuan (US$1 billion) this year, up 54.4 per cent year on year, its listing prospectus showed. Net profit increased 17 per cent to 647 million yuan during the six month period.

    Funds raised from the IPO would be used to finance the company’s next three years of expansion, develop new technology and projects to enhance food safety and customer experience, as well as repay debt, it said.

    Haidilao, which owns 362 restaurants, has expanded its operations rapidly to cater to a growing middle class population whose consumption is considered an integral part of the country’s new economy sector.

    Recent volatility in the Hong Kong stock market, no thanks to the US-China trade war, currency turmoils in emerging markets and fear of further interest rate hikes, have dampened interest for new listings. This compared with the boom in the first eight months in which funds raised from IPOs totalled HK$187.6 billion (US$23.9 billion), representing a 161 per cent surge from the year-earlier period, according to data from the city’s stock exchange.

    By Friday’s market close, the 10 biggest IPOs in the past year – including China Tower, Xiaomi, ZhongAn Online P&C Insurance – all traded below their offer prices. The Hang Seng Index fell on Friday, posting a weekly loss of 3.3 per cent as a new round of US tariffs that could hit US$200 billion of Chinese goods looms.

    Other upcoming IPOs include investment bank China Renaissance, which aims to raise as much as US$400 million. It will begin its PDIE next week.

    Meituan Dianping, China’s largest on-demand online service platform, launched its offering this week in an attempt to raise US$4.4 billion. The stock is expected to start trading on September 20 on Hong Kong’s main board.

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  • Lego China plans major expansion

    Lego China plans major expansion

    Lego China to accelerate its expansion following double-digit revenue growth in the first half of this year.

    The toy maker and retailer will open two new flagships in Beijing and Shanghai respectively within the next few months. Lego’s first mainland flagship launched at the Shanghai Disney Resort two years ago, and the company hopes to have 60 locations running before next year.

    Lego’s senior VP Jacob Kragh expressed significant optimism for the company’s potential in China, stating that there was “no limit” in what Chinese parents might be prepared to pay for educational toys.

    The move comes in the wake of Lego’s new video channel partnership with tech giant Tencent Holdings, which will release a game later in the year.

    Lego China’s growth has already exceeded that in both Europe and the US and is accordingly the focus for Lego’s immediate expansion.

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  • Pandora’s 2018 achievements

    Pandora’s 2018 achievements

    Environmental, social, and governance concerns are growing everyday and progressively taking a e prominent place in business decisions across all industries.

    The demand for investing strategies based on ESG, factors is being driven by women and millennials, who, by 2025, will make up three-quarters of the workforce.

    Morgan Stanley’s annual ESG rating of the fashion industry once again found Pandora ahead of the heard. Indeed, for the second year in a row, the Danish jewellery manufacturer and retailer ranked ahead of renowned companies such as Kering, Adidas, Nike, LVMH Moët Hennessy Louis Vuitton, Dior and Hermes.

    Source: Morgan Stanley

    Pandora is praised for their responsible purchasing of gold and silver and for excellent labour conditions.

    Trine Pondal, Pandora’s Head of Sustainability, renewed the company’s wish to make “jewellery as sustainable as possible, while also making sure that our employees all over the world enjoy good working conditions”.

    “We believe that our initiatives in this area not only benefit Pandora but also our suppliers and the rest of the jewellery industry”, he said.

    Pandora’s work in the ESG field has been made possible through close monitoring of the company’s process from manufacturing to distributing.

    As part of the company’s strategy to increase its own operated retail footprint in important markets, Pandora is taking back complete ownership of the brand in Greater China as it today signed an agreement with Carrera Corporation to acquire its Pandora store network in Taiwan on 1 January 2019.

    With the agreement, Pandora will add five concept stores and 14 shop-in-shops to its retail network giving the company complete ownership of the brand and distribution in Greater China (Mainland China, Hong Kong, Macau and Taiwan).

    Pandora will pay approximately HKD 120 million (DKK 100 million) in cash for the assets. The sell-out revenue in Taiwan was HKD 240 million in 2017.

    Kenneth Madsen, President of Asia Pacific in Pandora, believes “having complete ownership in Greater China will support Pandora’s growth and development strategy in the entire Asia Pacific region”.

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