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Tag: China

  • Prada Group opens seven stores in Xi’An China

    Prada Group opens seven stores in Xi’An China

    Prada China is boosting its retail presence by opening seven stores in the city of Xi’an.

    The Italian luxury fashion group plans three Prada stores for the SKP Mall, plus two Miu Miu boutiques and two outlets for its Church’s brand.

    Xi’an is an expanding city, with its luxury shopping scene including boutiques for brands including Chanel, Dior and Gucci as reported.

    SKP Mall is seeking to replicate its successful model in Beijing with its new location in Xi’an, which has just opened. Designed by London architecture firm Sybarite, SKP Xi’an is a 19-storey structure.

    For SKP, Prada is opening spaces for its menswear, womenswear and women’s footwear. The apparel boutiques are on the ground floor, while the shoes boutique is on the fourth floor. The stores are representative of Prada’s codes, with architectural details such as green marble, black-and-white checkered floors and mid-century Italian furniture.

    Miu Miu is also setting up on SKP’s ground level with a store for its apparel, accessories, handbags and shoes. The second Miu Miu store in SKP is a footwear-focused boutique on the fifth floor. Both spaces feature elements such as blue damask fabric and velvet sofas.

    Church’s, meanwhile, will retail men’s and women’s footwear on the second and fifth floors, respectively.

    To mark the openings, Prada is taking its Silver Line pop-up to SKP – the installation is inspired by train travel and offers shoppers products that serve purposes for different parts of the journey.

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  • China’s import tariffs cut and how it affects Hong Kong retail

    China’s import tariffs cut and how it affects Hong Kong retail

    China will cut import tariffs on nearly 1500 consumer products from July 1 – a move likely to have a modest impact Hong Kong retail sales.

    According to Reuters, China’s import tariffs for apparel, footwear and headgear, kitchen supplies and fitness products will be more than halved to 7.1 per cent from 15.9 percent.

    Cosmetics, such as skin and hair products, and some undefined “medical and health products”, will also benefit from a tariff cut to 2.9 per cent from 8.4 per cent.

    Some tariffs on luxury goods have been trimmed as well, although the effect of that on retail prices appears to be marginal. Other goods which Chinese consumers would not source from Hong Kong, including household appliances and packaged foods, will also become cheaper.

    Pascal Martin, partner at OC&C Strategy Consultants, says that by definition, whenever price differences between Hong Kong and China shrink, Hong Kong retail faces a negative impact.

    “However, given the relatively small scale of the drop relative to the goods retail price (a 7 per cent average drop in duty on imported wholesale price may only enable a 2-3 per cent drop in retail price), Hong Kong retailers may not find it that difficult to reduce their operating costs to maintain their comparative price attractiveness versus China – for now. Therefore, we believe the impact will be more psychological than tangible.”

    Encouraging domestic consumption

    Martin says the reduction of import tariffs is an indication of the Chinese government’s effort to attract and retain more domestic consumption.

    “It may displace some sales from domestic brands to international brands, and secondly it may shift sales from cross-border purchases (online or during travel, such as in Hong Kong) to domestic purchases of international brands. Some global players have launched global price harmonisation already, even before the tariff change, so the trend should point to more domestic consumption.

    “However, lower prices may also grow the total pie by making these brands somewhat more accessible to a broader population of shoppers.”

    Martin describes the reduction of import tariffs as “helpful” but cautions that the total price from landing goods in China to their retail price includes both VAT and consumption taxes.

    “Based on OC&C consumer research, consumers start hesitating to buy international brands in China when the difference between these brands’ China price and their home market price is more than 15 per cent of the home price. This means that the impact of the cut in import tariffs will be highest for brands that were just above this 15 per cent price difference threshold and they will likely see their China price get into the “non-hesitation” zone below 15 per cent.

    “The impact of a lower tariff will vary by categories. For some categories like high-end watches where the import tariff is 50 per cent of additional tax and tariffs, the impact will be high. On the other hand, for jewellery, 7-15 per cent out of 50-60 per cent tax and tariffs is not a lot.”

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  • Geely Holding Announces Management Change at Group Lotus

    Geely Holding Announces Management Change at Group Lotus

    Zhejiang Geely Holding Group (Geely Holding), China’s leading privately-owned automotive group, announced today that Mr. Feng Qingfeng, vice president and chief technical officer of Geely Auto Group, has been appointed to succeed Jean-Marc Gales as chief executive officer of Group Lotus effective immediately. Mr. Jean-Marc Gales has chosen to leave for personal reasons and will become Chief Strategic Advisor to Lotus Chairman, Daniel Donghui Li.

    Geely Holding, which acquired a controlling stake in Group Lotus in 2017, thanked Mr Gales for his contribution to the company over the past four years.

    Daniel Donghui Li, chief financial officer of Geely Holding and Lotus Cars Chairman, said: “Jean-Marc has stabilised and turned Lotus to profitability for the first time in the iconic brands history with new industry leading products and unique business models since joining the company in 2014. Lotus is poised for the next phase of growth under Feng Qingfeng’s leadership, where its expertise in lightweight materials and sport cars-engineering will form part of the wider expansion of Geely ‘s automotive portfolio. At the same time I will welcome Jean-Marc‘s Council as Chief Strategic Advisor to myself and the Board of Directors.”

    Geely acquired a majority holding in UK-based Lotus – a world leader in high-performance lightweight sports cars – as part of its agreement last year to acquire 49.9 percent of the shares of PROTON from HICOM Bhd (DRB) of Malaysia, Lotus’s former parent.

    Feng Qingfeng (Mr. Feng) said: “I am honoured to have been appointed to lead this iconic British sports car group. With Geely’s global synergies and total support I am confident that Lotus has an exciting opportunity to achieve its full potential as a luxury sports brand, based around its engineering legacy and its future product pipeline.”

    In 2017 Group Lotus sold 1600 sports vehicles, an increase of 10% versus 2016, produced at its plant in Norfolk, England. In 2017 the company showed a profit for the first time in history.

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  • Jatenergy announces flagship retail store in China

    Jatenergy announces flagship retail store in China

    Monetising Chinese retail shoppers is turning from a distribution to direct shopper experience for cross-border goods company Jatenergy (ASX: JAT).

    Jatenergy has signed a binding agreement to open a retail outlet, which it intends to call ‘JAT Maternity and Children’ within the 80,000-square metre Hui Yue Shopping Mall, to open “in the next few months.”

    Jatenergy says the kid’s section of the shopping complex will be the largest indoor children’s themed shopping centre in Zhengzhou spanning 18,000 square meters over three levels, called “Kid’s City”.

    The expansive Chinese-based company has said it intends to open a “cornerstone retail outlet” within the shopping complex, that caters for mums and children within ‘Hui Yue Kid’s City’, a dedicated “one-stop shopping destination” in Zhengzhou, the capital city of Henan province which is home to around 100 million people.

    The Hui Yue shopping complex is owned by the Henan Sheng Rung Holding Group, a Chinese company owned by current Jatenergy Director Mr Xipeng Li. As part of the close ties with Sheng Rung, Jatenergy will obtain a “three-year rent-free period” with a negotiated term expected to be agreed thereafter, sometime in 2021.

    Jatenergy will still need to spend an uncertain amount to set up and equip the store but says there are “no conditions precedent contained in the agreement with no other payments to be made”.

    “This is an unsurpassed opportunity for JAT to build its China presence and generate revenue,” said Mr Wilton Yao, Director of Jatenergy.

    In 2021, Jatenergy expects to establish a “flagship store agreement” with sales volumes being measured and used to gauge whether further stores will be opened in other parts of China at other Henan Xipu shopping centres. If the upcoming retail store is successful, Jatenergy is likely to expand its retail store footprint in China by opening stores in other cities.

    Just last week, Jatenergy revealed its intention to acquire a controlling interest in Green Forest International, a Sydney-based wholesaler, distributor and exporter to Hong Kong and mainland China. Today’s announcement of a retail store in China is likely to supplement the deal and is likely to stock many of the brand names marketed and sold by Green Forest.

  • Brooks Brothers reveals China retail rebrand

    Brooks Brothers reveals China retail rebrand

    Iconic American brand Brooks Brothers has revealed it plans to reposition retail efforts in China, a market which currently ranks third in revenue value behind the U.S. and Japan.

    In a recent visit to China, Brooks Brothers CEO Claudio Del Vecchio said he would like Chinese consumers to be reintroduced to the US heritage men’s brand, which turns 200 years old this year.

    “I think within less than two years, [China] will be our number-two country,” Del Vecchio told reporters, while speaking at one of the brand’s global bicentennial celebration parties, held in Shanghai, after events in Florence and New York this year.

    “We’ve been in Japan for 40 years and it’s still very strong and growing, but not growing as strongly as China. It’s certainly our biggest opportunity for the next 10 years.

    Within 10 years, it might actually be our number-one country,” he added.

    As part of its celebrations, Brooks Brothers inaugurated its store at the HKRI Taikoo Hui mall, inviting brand ambassador Louis Koo, to celebrate.

    With 20 retail stores and 20 outlets in mainland China, Brooks Brothers is looking to tweak its key store locations and rebrand, by positioning stores alongside recognised luxury retailers in China, not necessarily brands with the same price-point.

    “Today in China, our biggest challenge is actually that customers don’t know us, [so] they might judge the quality by the price. Because our price is not that high they might not have the perception of quality that we actually have,” said Del Vecchio.

    “There is a disconnect,” he added. “Our prices are so good, they don’t believe it.”

    The retail shift compliments the firm’s recent efforts to attract more Chinese custom, by shifting distribution partners and tapping online marketplaces.

    In 2016, Brooks Brothers shifted its China distribution from Dickson Concept, which was more of a licensee model, to being more directly operated. Still in retail partnership, Brooks Brothers changed to a new regional partner, working with Walton Brown, part of the Lane Crawford Joyce Group.

    In the same year it signed an agreement to stock its namesake suits and apparel on Alibaba’s Tmall, as well as its more affordable line, Red Fleece.

    “There are other opportunities we want to explore,” Del Vecchio added.

  • Rossignol Group Partners With IDG Capital to Seize Growth In China

    Rossignol Group Partners With IDG Capital to Seize Growth In China

    Skiing brand Rossignol Group has signed an agreement with IDG Capital, a US-based, China-focused investment firm, to launch the brand through Chinese retailers.

    China’s sports tourism market has had double-digit growth since 2011, and growth forecasts over the next five years are in the order of 30 per cent, according to a PWC study. Introduced in 1995 in China, skiing is the spearhead of this exponential development, particularly since the announcement of the 2022 Olympic Winter Games in Beijing.

    The winter sports market in China should reach RMB100 billion (€13.7 billion by 2025). The equipment alone would represent RMB16 billion for the same period.

    Through a capital increase leading to a 20 per cent ownership in the company, IDG Capital will use its expertise to support the development of the French group in the Chinese market. Founded in 1992, IDG Capital was the first foreign investment firm to enter the Chinese market. It has contributed to the growth of more than 700 major companies in China, including Baidu, Tencent and Xiaomi, as well as to the development of international companies such as Moncler, Farfetch, Olympique Lyonnais FC or InFront.

  • These Chinese giants make Facebook and Google look tame

    These Chinese giants make Facebook and Google look tame

    The technology world’s most bruising battle for supremacy is taking place in China. And it could point to Big Tech’s future everywhere else, too.

    Tencent Holdings and the Alibaba Group are ratcheting up their no-holds-barred contest to dominate the ways 770 million internet users communicate, shop, get around, entertain themselves and even invest their savings and visit the doctor.

    The two titans long ago branched out from their core businesses — games and social media for Tencent, e-commerce for Alibaba — to duke it out in ever more realms of Chinese life. They have competed in messaging, microblogging and delivering takeaway food. They go head-to-head in video streaming and cloud computing.

    Today, their fiercest fight is over digital money kept on smartphones. Mobile payments have transformed the Chinese economy. Both giants, plus Ant Financial, an Alibaba sister firm, are spending big to gobble up pieces of the action.

    China’s internet powerhouses stand at the forefront of the nation’s galloping high-tech progress — a surge that has been brought into sharp focus by the Trump administration’s efforts to counter it. On one hand, the standoff over the Chinese telecom equipment-maker ZTE has exposed, to many in China, the degree to which the country still lags in core technologies such as microchips.

    But in the internet realm, China still offers a spooky potential vision of the future, one in which online behemoths like Tencent and Alibaba become the gatekeepers to the entire economy, wielding immense power over traditional industries and becoming very, very rich in the process.

    At a conference in December in the Chinese city of Guangzhou, Tencent’s chief executive Pony Ma said he felt the two companies were competing in “too many” areas.

    “Sometimes I think, ‘Ah, we’re competing in this now, too? All right then,’” Ma said, chuckling. “It’s a little frustrating.”

    A duopoly this broad could not be easily replicated in other countries,  for example the United States. Entrenched competitors and the threat of government intervention generally keep the likes of Apple, Amazon, Google and Facebook from expanding pell-mell into adjacent businesses. All of them have sprawled and overlapped mightily, but Amazon, with its forays into groceries, pharmacies, health care and more, might be the furthest along towards creating an inescapable commercial universe.

    Still, with the European Union enacting tough new privacy laws, and some in the United States eager to follow, Google and Facebook could soon be forced to find ways to make money beyond selling users’ personal information to advertisers, said Raj Rajgopal, president of digital business strategy at Virtusa Corp, a consulting firm.

    “As profitability reduces, they’ll say, ‘Now I need to monetise my customer base,’” Rajgopal said. “The innovation we’re seeing in China could be seen in the US in the next three to five years,” he added. “Customers are demanding that.”

    China’s internet titans have a powerful ally found nowhere else, though: the Chinese government. Tencent and Alibaba have avoided anti-monopoly clampdowns by staying in Beijing’s good graces, said Hu Wenyou, a partner at the Beijing law firm Yingke. Their sheer size also makes them easier for authorities to control. They simply have too much to lose.

    “If you can become so big, and so successful in so many areas, this in itself shows that you must have maintained very good, very friendly relations with the government,” Hu said.

    Neither giant is done getting bigger.

    Each has a market capitalisation of close to $US500 billion ($663 billion), making them among the most highly valued technology firms on the planet. Google and Facebook still claim more users, but the Chinese heavyweights arguably do more — and more, and more — for theirs.

    The latest battleground? Brick-and-mortar stores. Alibaba has spent great sums — $US2.9 billion on a supermarket chain, $US2.6 billion on a department store and mall operator — to conquer the real world. Tencent has followed suit with its own retail partnerships and investments.

    Once the companies have locked people into their payment systems, they can become the enablers of commerce and financial services of even more kinds. In a sign of investors’ excitement about the possibilities, Ant Financial is making plans to go public, in a blockbuster stock offering that could give the company a market value larger than Goldman Sachs.

    China has become a model for tech’s world-swallowing tendencies partly out of circumstance.

    With the country’s high-speed churn of well-funded startups, planting flags on new turf is often the only way for large players not to be constantly losing ground.

    Also, both Alibaba and Tencent have struggled to make much money outside their home market. That means their surest way to keep growing is to get more deeply involved in more areas of their Chinese users’ lives.

    Those lives are riper for tech disruption than lives in the West. In China, small stores dominate retail. Hospitals are crowded and doctors overworked. Most people do not have credit cards. These are easier business opportunities for Alibaba and Tencent than they would be for Amazon or Facebook.

    In a report this week, Morgan Stanley predicted that by 2027, the total market in China in which Alibaba could be making money will be worth $US19 trillion — more than Amazon’s potential market worldwide.

  • Chinese retail tycoon’s fraud conviction thrown out

    Chinese retail tycoon’s fraud conviction thrown out

    China’s supreme court has thrown out the fraud conviction of a retail tycoon in an unusual gesture of official leniency toward entrepreneurs amid a string of high-profile detentions and prosecutions that has rattled the Chinese business world.

    The Supreme People’s Court ruling Thursday reversed the conviction of Zhang Wenzhong, former chairman of Wumart Stores, who served 12 years in prison on charges of improperly obtaining technology development subsidies.

    A number of Chinese businesspeople have been prosecuted or detained for questioning about possible offenses including embezzlement and bribery.

    On Wednesday, a lawyer for the imprisoned founder of the insurance company that owns New York City’s Waldorf Hotel said he planned to appeal his 18-year sentence imposed this month on fraud charges.

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  • Wanda and Tencent join forces for omnichannel retail

    Wanda and Tencent join forces for omnichannel retail

    Dalian Wanda Group and Tencent Holdings Ltd will join forces to set up an internet technology firm, strengthening their position in retail.

    Dalian Wanda, which Is the largest property developer in China, will own 51% of the venture and Tencent 42.48%, with the remaining 6.52% going to Gaopeng, a joint venture between Groupon and Tencent.

    The project combines technology and brick-and-mortar retail and it is hoped that developing an omnichannel offering will help the businesses compete in New Retail, a space in which Alibaba is currently the world leader.

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  • Vietnam rice exports to China drop

    Vietnam rice exports to China drop

    Vietnam’s rice export sector is showing signs of reducing its dependence on China with other markets picking up the slack, according the Ministry of Agriculture and Rural Development.

    In its monthly report for May, the ministry says that rice exports to China in the first four months of this year dropped to 33.5 percent of the total from 47.5 percent last year. The value of rice imported by China during this period fell 0.9 percent year on year to $370.8 million, it said.

    China still remains Vietnam’s top importer of rice.

    However, while the Chinese market shrinks, other markets in Asia are increasing their intake from Vietnam. Rice imported by Indonesia during the first four months went up 333 times over the same period last year, Iraqi imports increased by over 16 times, that of Malaysia tripled, of Hong Kong increased 41.5 percent and that of Singapore,15.7 percent.

    With the Philippines planning to import over 293,000 tons of Vietnamese rice in the coming months, rice export prices will stay positive, the report said.

    Last year, Vietnam exported almost 5.9 million tons of rice worth $2.66 billion. This number is likely to reach 6.7 million tons this year, according to the United States Department of Agriculture.

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  • Pret A Manger sold to Krispy Kreme owner for £1.5bn

    Pret A Manger sold to Krispy Kreme owner for £1.5bn

    Pret A Manger’s global business, including Hong Kong and Singapore, has been sold to global investment firm JAB.

    Flush with cash from the sale of Jimmy Choo and a controlling interest in Bally, JAB is refocusing its core business investments on consumer goods and cafes. The company, majority owned by Germany’s secretive Reimann family – has controlling stakes in US coffee brand Keurig Green Mountain, European coffee supplier Jacobs Douwe Egberts, cafe chains Panera Bread, Peet’s Coffee & Tea, Caribou Coffee Company, US bagel chain Einstein Noah Restaurant Group, Krispy Kreme Doughnuts, and Espresso House, Scandinavia’s largest branded coffee shop chain. It also owns shares in makeup giant Coty and consumer goods company Reckitt Benckiser.

    UK-headquartered Pret A Manger, which has 530 stores globally, including 26 in Hong Kong, one in Singapore and two in Mainland China, serves 300,000 customers daily with global revenues of £879 million (US$1.166 billion).

    JAB will pay nearly $2 billion for the business (including taking over debt) to private equity investor Bridgepoint and an assortment of minority shareholders. According to BBC News, all 12,000 staff globally will receive a bonus of about US$1200. Bridgepoint bought the business in 2008, including a 33 per cent stake then held by fast-food operator McDonald’s Corporation, paying €500 million for the business, or US$584 million at today’s exchange rate.

    Pret A Manger CEO Clive Schlee described the sale announcement as “a day of celebration at Pret”.

    “This agreement recognises the hard work of all our amazing teams around the world. Bridgepoint has been a wonderful owner of the business for more than a decade. All of us at Pret believe JAB will be excellent long-term strategic owners.”

    He said JAB supported Pret’s growth plans, suggesting further expansion in Asia is on the cards as the company refines its offers in Singapore and China.

    “I am really looking forward to this next chapter of Pret’s story.”

    The deal follows a ninth successive year of like-for-like sales growth for Pret A Manger.

    “The brand continues to thrive around the world thanks to our simple recipe of freshly prepared food, served by genuinely engaged teams,” said Schlee.

    JAB partner and CEO Olivier Goudet said his company plans to continue Pret’s “extraordinary growth story”.

    “Management’s proven track record and commitment to customer service, investment in innovation and approach to freshly prepared food position Pret well as it capitalises on evolving consumer taste and lifestyle preferences. We look forward to working with Clive Schlee and his management team, while promoting the Pret brand and supporting Pret’s impressive culture for the next phase in the company’s growth with JAB.”

    Last year, Philippines fast-food operator Jollibee was linked to a bid for Pret A Manger at a value exceeding $1 billion and Bridgepoint was also reportedly considering an IPO for the business.

    It would appear from the published reactions of Pret A Manger management private ownership is a more comfortable fit with the business.

  • JD.com ready to roll out Thai domain

    JD.com ready to roll out Thai domain

    A JV between JD and Thailand’s Central Group, Central JD Commerce will launch online marketplace www.jd.co.th in August.

    A soft launch is scheduled within the next few weeks.

    “Thailand is our second-biggest market in Southeast Asia following Indonesia, with Vietnam in third place,” says JD corporate VP Gloria Li.

    She says Southeast Asia became part of JD’s overseas expansion strategy two years ago. “We will bring our technology expertise and transfers to local teams, building an innovative retail industry.”
    Li says Thailand is an attractive market because of its preference for high-quality products and the rising number of middle-income consumers.

    A partnership with Central Group will enhance the customer experience for online shopping and logistics, as well as warehouse and delivery capabilities.

    The marketplace will provide goods from qualified merchants, most of whom are brand owners and small- and medium-sized enterprises.

    Li says the JV will export Thai products where the company has a footprint, such as China and Russia.

    “Our big-data analytics technology will provide customers insights into products for which there is high demand, helping them run promotions for targeted customers,” says Li. The return on investment with such marketing campaigns can be measured.

    Globally, JD has 301 million customers, with 82 per cent of its orders made via mobile. It is the largest retailer in China with revenue of US$55.7 billion last year.

  • Play-Asia.com Partners with Worldpay to Optimise Payments

    Play-Asia.com Partners with Worldpay to Optimise Payments

    Play-Asia.com, Asia’s leading online gaming and lifestyle brand, has chosen Worldpay, Inc. a global leader in payments, to support the next phase of its business growth as it seeks to reduce fraud and accelerate its expansion plans into new territories.

    Play-Asia.com required a partner that could provide a comprehensive payments solution that would help understand where revenues may be affected by high fraud rates, allowing them to develop effective risk management strategies to minimise potential losses.

    After evaluating several payments providers Play-Asia.com selected Worldpay for its advanced end-to-end solution including online payment gateway, and fraud management services. Worldpay’s Risk Guardian tool is helping Play-Asia.com tailor automated fraud rules for their business model and industry, allowing them to maximise acceptance rates and protect their revenues.

    Supported with detailed insights on transactions, and fraud trends across each market they operate in, PlayAsia.com is equipped with actionable data to optimise their payment traffic and significantly reduce the resources needed to manage fraud. Since working with Worldpay, Play-asia.com has seen a 40 per cent reduction in the time spent processing fraud cases, customer orders and identity verification checks.

    The company can now also serve new customers by offering additional payment methods such as Diners, Discover, and UnionPay in China.

    The partnership with Worldpay has brought together two innovative companies from the gaming and payment industries. Play-Asia.com is renowned as one of the largest online gaming distributors globally, offering gaming products and content, while Worldpay provides in-depth knowledge and state-of-the-art payment technology to help companies reach new customers and improve their online shopping experience.

    Jan Neuhäußer, CEO at Play-Asia.com said, “With over 15 years of serving our customers, we have grown to become a leading online retailer, focused on providing the best shopping experience, genuine high quality products and outstanding gaming choices and experiences.

    “To continue to deliver consistency, quality and global fulfilment through our online marketplace, we required a partner who would support us to develop our offering and strengthen our position. Worldpay’s industry expertise and guidance has enabled us to expand the range of payment options we offer, to alleviate the risk of fraudulent payments, and support our expansion plans into Latin America.”

    Phil Pomford, General Manager for Asia Pacific, Global Enterprise eCommerce at Worldpay said: “Over the next few years we will see the global entertainment market grow from $1.8 trillion to $2.2 trillion, with consumer spending on videogames alone forecast to rise to $498 million by 20211. This is a huge opportunity for Play-Asia.com not just in terms of revenue, but also in providing customers with an optimal online shopping experience. By working with Worldpay to put payments at the forefront of its eCommerce strategy, Play-Asia.com has gained a significant competitive advantage.”

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  • Ant Financial to support Shanghai Pudong Development Bank’s digital transformation

    Ant Financial to support Shanghai Pudong Development Bank’s digital transformation

    Ant Financial Services Group (“Ant Financial”) has signed a strategic cooperation agreement with Shanghai Pudong Development Bank Co., Ltd. (“SPD Bank”) to support the bank’s digital transformation with Ant Financial’s technological capabilities. The agreement is the third of its kind announced this month between Ant Financial and established banks, following partnerships with Huaxia Bank and China Everbright Bank.

    Ant Financial and SPD Bank will partner in online risk management, including fraud prevention, with the former providing technological support to help the latter prevent loan, transaction and marketing fraud. The partnership will also leverage Ant’s financial-grade technologies in AI, supply chain finance, biometric identification and risk management.

    “Ant Financial and SPD Bank share the same vision for the future. With this partnership, we will explore how to improve efficiency in banking operations, as well as how to leverage technology to create greater value for our users,” said Eric Jing, Executive Chairman and CEO of Ant Financial.

    In addition to sharing technological capabilities, the partnership will allow Ant Financial and SPD Bank to strengthen collaboration on a broad range of inclusive finance initiatives, from improving user experience while using online and offline payment services, to providing secure, convenient and efficient financial services for small and micro businesses.

    Last year at the 2017 Ant Fortune Open Platform Conference, Mr. Jing indicated that Ant’s technologies would be opened up to current and potential partners, with the only criterion being whether the partnership is innovative enough to deliver value to users.

    The partnership with SPD Bank is just one example of how Ant Financial’s technologydriven solutions are enabling financial institutions to deliver inclusive services efficiently and at scale. In addition to the bank partnerships announced this month, also in May, Ant Financial’s consumer finance service Huabei announced that it would partner with financial institutions to provide consumer financing solutions, while Alipay added two new third-party money market funds to the Yu’e Bao spare cash management platform.

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  • Guess narrows losses in first quarter, revenues lift 14% on Asia earning

    Guess narrows losses in first quarter, revenues lift 14% on Asia earning

    Continued momentum in Asia has helped boost revenues for US clothing brand Guess Inc for its first quarter, to May 5.

    As the company continued to take advantage of its infrastructure investments in China and Japan, its operating margin in Asia improved by 430 basis points.

    Asia revenues increased 32.6 per cent in US dollars and 25.1 per cent in constant currency.

    Operating margin for the company’s Asia segment increased 430 basis points to 4.8 per cent in the quarter, compared to 0.5 per cent. This was driven mainly by higher gross margins.

    CEO Victor Herrero says company revenues overall grew 15 per cent in US dollars and 8 per cent in constant currency. “We were also able to expand the company’s operating margin, despite cost pressures related to our transition to our new distribution centre in Europe.”

    At the same time, the company had a GAAP net loss of $21.2 million, a 0.3 per cent improvement on the first quarter a year earlier. An adjusted net loss of $17.8 million was 7.9 per cent better than the same period 12 months ago.

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