Tag: China

  • Apple’s Asia Suppliers Rise on Forecast of Strong Holiday Sales

    Apple’s Asia Suppliers Rise on Forecast of Strong Holiday Sales

    Apple Inc.’s suppliers in Asia, including Hon Hai Precision Industry Co. and Wistron Corp., rose after Apple forecast revenue for the quarter ending in December that topped estimates amid strong demand for its 10th anniversary iPhone.

    Hon Hai, the main assembler of the iPhone X, rose as much as 1.8 percent in Taipei trading, while Wistron, another Apple assembler, rose as much as 4.3 percent. Quanta Computer Inc., Pegatron Corp. and Genius Electronic Optical Co. also rose.

    After concerns about production volumes this year, Apple signaled it’s fixing supply problems with the iPhone X and setting itself up for a better-than-expected holiday period. Supported by resurgent iPad and Mac sales, the 10-year anniversary iPhone will help push revenue to a record high of $84 billion to $87 billion in the quarter ending in late December, Apple said in a statement. Analysts had predicted $84 billion, according to data compiled by Bloomberg.

    Apple shares rose about 4 percent in late U.S. trading after the earnings report. The Cupertino, California-based company is the most valuable in the world with a market valuation of more than $850 billion.

  • DFS Group Kicks Off Its Seasonal Gifting Campaign

    DFS Group Kicks Off Its Seasonal Gifting Campaign

    DFS Group kicked off its Give Joy Together seasonal gifting campaign in
    style with the Art of Personalization shopping experience, which was held on November 11 at T Galleria by
    DFS, City of Dreams, Macau. The world’s leading luxury travel retailer sshowcased a bespoke approach to gift
    giving through craftsmanship and customization, simultaneously drawing attention to the wide range of exclusive
    luxury items available at the store.

    Global retail influencers Bag Snob and Mr. Bags and world-famous contemporary pop artist Boyarde joined
    senior DFS executives including Sibylle Scherer, President Merchandising and Consumer Marketing, Christophe
    Chaix, Senior Vice President, Fashion, Watches, Jewelry and Accessories, Nelson Mui, Vice President of Global
    Fashion Merchandising and Trends, and Johan Pretorius, Managing Director, Cotai Limitada, DFS at the event.

    “The Art of Personalization demonstrated how bespoke craftsmanship can transform luxury handbags and
    accessories into highly desirable one-of-a-kind gifts, and we were delighted that Bag Snob, Mr. Bags and
    Boyarde were able to join us,” said Nelson Mui. “Their collective talent and knowledge of the luxury retail
    market is vast and we were honored that they were a part of this exciting event.”

    Each celebrity presented a curated selection of pieces as gift inspiration for the holiday season. Bag Snob,
    passionate bag lover and founder of BagSnob.com, highlighted her top choices for seasonal gifts that included a
    DFS exclusive Bulgari bag and watch, a Tiffany & Co Key necklace, exclusive Tod’s shoes and an exclusive
    wallet on chain by Valentino. Style guru Mr. Bags, who has more than three million followers on Chinese
    microblogging site Weibo, promoted eight of his favorite products from the many brands available at the store.

    These included a Tiffany & Co Key necklace, bags by Dolce & Gabbana, Burberry and Bulgari, shoes by Rupert
    Sanderson, Bing Xu and Tod’s, and whisky by Johnnie Walker. Pop artist Boyarde, whose playful designs are
    highly sought after around the world, conducted mini workshops and conducted live paintings. The British artist
    also presented a selection of exclusively designed and hand painted bag straps and charms for her customers.

    Bag Snob gave her tips on how best to spend 24 hours in Macau, while VIP guests had the opportunity to offer
    their own thoughts on personalization. The visiting influencers also highlighted the customization services
    available in store at the Make it Yours counter throughout the holiday season, such as tag embossing, bottle
    engraving and personalized gift wrap creation.

    A silent auction to raise money for Make-A-Wish, the world’s largest wish-granting organization, was run
    throughout the event, reminding guests that gifting is also about giving to others less fortunate. Bidders vied for a
    fabulous leather jacket donated by AllSaints and handbags chosen by Mr. Bags and Bag Snob, all personalized
    with Boyarde’s iconic and eye-catching designs. This is the fourth successive year that DFS has partnered with
    the foundation, which has made dreams come true for over 415,000 children around the world who suffer from
    life-threatening medical conditions.

    The evening culminated in a party featuring two spectacular balloon drops. Any guest catching a glitter-filled
    balloon stood the chance to win amazing prizes, whilst shoppers who spent over MOP1000 enjoyed MOP200 off
    their purchase.

  • JD.com surprises with first profitable quarter

    JD.com surprises with first profitable quarter

    JD.com profit soared 50 per cent after a 39 per cent increase in sales during the Chinese online retailer’s latest quarter.

    Its unaudited results for the three months to the end of September show revenue of RMB83.7 billion (US$12.6 billion), with a record 50.3 per cent surge in gross profit to RMB13 billion. Non-GAAP gross profit was RMB12.8 billion, up 51.9 per cent.

    Active customer accounts increased by 34 per cent to 266.3 million in the 12 months to September 30.

    Chairman/CEO Richard Lio says the company is building robust product content and enhancing user engagement with innovative tools that enable brands to launch highly targeted online marketing programs.

    “The scale economies of our model are becoming clearer with every quarter,” says CFO Sidney Huang. “Looking ahead, we will continue to prioritise investments in technology and leading R&D talent as we execute on our vision to revolutionise China’s retail industry.”

    While releasing its third-quarter figures, JD.com also listed its latest business developments…

    In October, JD and Tencent expanded their partnership with the launch of a marketing initiative that integrates insights on consumer behaviour from Tencent’s social-media platforms with online and offline shopping data from JD and its brand partners. As well as enabling more precise target marketing, the move benefits consumers by offering them wider access to sales promotions and preferred discounts.

    Strategic partnerships

    During the past three months, JD.com also formed strategic partnerships with Baidu, iQIYI, NetEase, Sogou and Qihoo 360 with their big-data resources, massive user bases and AI algorithm technologies.

    JD also continued to strengthen its position among top-tier international brands, expanding its partnership with high-fashion brand Armani with the opening of official online stores for Armani Exchange and Emporio Armani.

    JD Worldwide also launched flagship stores for such companies as Reckitt Benckiser, Spectrum Brands and Tiger, while its new Toplife platform attracted marquee brands like Dyson, La Perla, Rimowa (LVMH) and Trussardi.

    During the quarter, JD Logistics test-launched an unmanned sorting centre, the first of its kind in the logistics industry. JD also signed agreements to lay the groundwork for the rollout of China’s largest drone network.

    In September, JD Logistics expanded its environmentally friendly logistics and packaging campaign, working with brands including  Johnson & Johnson, Kimberly-Clark, Lego, L’Oreal, P&G, Nestle, Unilever, Watsons and Wrigley. The aim is to minimise environmental impact by cutting back on packaging materials.

    Customer demand

    JD also enhanced its fresh product offerings during the quarter to meet customer demand. In July, it launched the Canadian Fresh Food Pavilion, the first country pavilion for fresh products on the JD.com platform. Live lobsters from Canada can now be delivered to customers’ doorsteps in China in as little as 48 hours. During JD’s Super Canadian Day, 140,000 lobsters were sold within 24 hours.

    In September, JD.com, JD Finance, Central Group and Provident Capital announced agreements to establish two JVs in Thailand covering e-commerce and fintech services, with an aggregate investment of $500 million. JD.com is providing its expertise in technology, e-commerce and logistics while Central Group is drawing on its retail store network, brand and merchant relationships, and retail behaviour insights from its loyalty program.

    In October, JD and Sam’s Club launched a promotion offering customers discounted bundled memberships for Sam’s Club and the JD Plus paid-for membership service.

    By the end of October, JD.com JV New Dada had partnered with 146 Walmart stores and 301 Yonghui stores, as well as many other supermarkets and grocery stores, to provide online fresh grocery shopping with one-hour home delivery.

    At the end of September, JD.com had 405 warehouses and provided scheduled delivery services in 250 Chinese cities. It had about 160,000 merchants on its online marketplace, and 137,975 full-time employees.

  • Hundreds of new shops for China’s Auchan Minute

    Hundreds of new shops for China’s Auchan Minute

    “Several hundred” Auchan Minute shops without checkout counters are planned for China by year’s end.

    Customers enter by scanning a code via the WeChat app. After products are scanned, they are added to a virtual cart. The customer then pays via AliPay or WeChat Pay.

    Every Auchan Minute will offer 500 products 24 hours a day.

    Founded in 1961, Auchan is France’s second-largest retail group after Carrefour.

  • Alibaba seeks approval to buy stake in India’s BigBasket

    Alibaba seeks approval to buy stake in India’s BigBasket

    Chinese internet giant Alibaba is seeking Competition Commission of India (CCI) approval to acquire a stake in online grocery startup BigBasket.

    Financial details have not been disclosed in the CCI filing, which relates to “the acquisition and purchase of shares” of BigBasket parent Supermarket Grocery Supplies by Alibaba Singapore.

    Alibaba Group Holding and its Indian associate PayTM E-Commerce were reported in July as having a 60-day exclusive pact with BigBasket. There were also reports of BigBasket being in merger talks with rival Grofers.

    BigBasket has a presence in Bengaluru, Hyderabad, Pune, Mumbai, Chennai, Delhi-NCR, Kolkata, Jaipur, Punjab and Lucknow as well as four other cities, and has raised more than $200 million from investors.

  • Richemont’s half-year is good in APAC

    Richemont’s half-year is good in APAC

    Asia Pacific sales accounted for 39 per cent of group sales for Swiss luxury-goods holding company Richemont for its half-year to September 30.

    Sales in Asia Pacific rose by by 25 per cent, with double-digit growth in most markets led by Mainland China, Hong Kong, Korea and Macau. While all product categories saw growth, the unaudited figures show jewellery and watch sales were particularly strong year on year, with watches benefiting as no inventory buy-backs were needed as in the previous year.

    For Japan, the 7 per cent rise in sales was driven by higher domestic and tourist spending, which benefited from a weaker yen. Jewellery and watches led sales growth, partly supported by the reopening of the Cartier flagship store in September last year and new flagships for Piaget (November) and Van Cleef & Arpels (April), all in Ginza.

    Overall, group sales rose by 10 per cent at actual exchange rates to €5.6 billion (US$6.5 billion) and by 12 per cent  at constant exchange rates. Excluding the previous year’s inventory buy-backs, sales increased by 8 per cent at constant exchange rates.

    Operating profit expanded by 46 per cent to €1.1 billion, with profit for the period up 80 per cent to €974 million.

    Gross profit increased by 13 per cent, representing 65.4 per cent of sales. The 190-point margin increase was mainly because of the non-recurrence of inventory buy-backs and improved manufacturing capacity absorption, says Richemont.

    Profit grew by 80 per cent to €974 million, mainly reflecting the higher operating profit and a €181 million reversal in net finance income.

  • Middle class driving Chinese cross-border e-commerce

    Middle class driving Chinese cross-border e-commerce

    A growing middle class in China that likes shopping for foreign brands is helping drive cross-border e-commerce spending, according to a forecast by research company eMarketer.

    However, it warns of a growth slowdown ahead.

    Total cross-border e-commerce sales in China are expected to reach US$100 billion by the end of this year, with the average buyer spend of $882. This average has increased since eMarketer’s previous forecast thanks to a growing awareness in China of overseas brands, as well as improved logistics and the perception that foreign goods are of better quality.

    Also contributing to the growth is the popularity of JD Worldwide, Kaola and Tmall Global, sites that have made it easier for shoppers to access overseas products, says the eMarketer report.

    It also notes that 23 per cent of digital buyers in China will make at least one cross-border purchase, but growth in these purchases will start to slow as preference switches to local brands for some categories, such as fashion. Realising the demand for better-quality goods, Chinese brands are starting to adapt, says the report.

    However, eMarketer senior forecasting analyst Shelleen Shum says that with shopping sites adding more brands and improving cross-border logistics and processing times, foreign brands still have an opportunity to tap into the demand for high-quality products, especially in categories like baby, maternity, health and beauty.

  • CapitaLand hits record with Suzhou Center Mall

    CapitaLand hits record with Suzhou Center Mall

    With the opening of its largest shopping centre yet, Suzhou Center Mall, Singapore retail-estate company CapitaLand has marked a record year of a million square metres of retail space.

    More than three times the size of Ion Orchard in Singapore, the mall is also the largest shopping centre in the Chinese city. It spans nearly 300,000sqm in gross floor area (GFA), excluding car park.

    More than 600 retail brands are housed within the mall, in the heart of the western CBD of Suzhou Industrial Park, next to the historic Jinji Lake. It is the centrepiece of the Suzhou Center integrated development that also comprises four grade-A office towers, two luxury residential towers and the W Suzhou hotel tower, which are all interconnected.

    With a total GFA of 1.13 million square metres served by a 1570m tunnel leading to its basement car park and directly linked to two metro lines, Suzhou Center was master developed by Suzhou Hengtai Holding Group, owned by the Suzhou Industrial Park.

    CapitaLand, through its wholly owned shopping business CapitaLand Mall Asia, is co-owner and co-developer for the mall and two 21-storey office towers.

    World’s largest

    Designed by multiple award-winning architectural firm Benoy, the seven-storey Suzhou Center Mall has an undulating roof that is the world’s largest free-form monocoque roof at more than 36,000sqm. Shaped like a pair of phoenix wings to symbolise Suzhou’s growth taking flight, the multi-coloured roof comprises 6947 pieces of uniquely shaped glass.

    Suzhou Center Mall also boasts 60,000sqm of greenery across terraces, rooftops and the landscaped cantilever bridges that extend from two ends of the mall to the lakefront. A 45m-wide, 25m-high water curtain is a feature of the mall’s facade facing Jinji Lake.

    The mall opened with more than 90 per cent lease commitment for its net lettable area of about 152,000sqm. Anchor tenants include more than 600 brands including Suzhou’s first CGV cinemas, its first Fanpekka children’s theme park, first indoor simulated gaming centre, an Olympic-size ice rink, a gourmet supermarket and a food court.
    Nearly a third of the mall’s offerings are new to Suzhou, including Forever 21 and Victoria’s Secret. H&M and Zara will run triplex stores in the mall, their biggest outlets in the city.

    Suzhou center mall

    CapitaLand says that with the opening of Suzhou Center Mall, 61 of its total portfolio of 69 owned and managed malls in China are up and running.

    CapitaLand CEO Lim Ming Yan says the mall’s opening caps a record year for the company. “Nearly 1 million square metres of retail GFA across eight developments came on line this year, marking our largest-ever retail offering in a single year.”

    CapitaLand Mall Asia CEO Jason Leow says that about 85 per cent of the group’s total assets contribute to recurring income, of which shopping malls and integrated developments form the bulk. “As we increase CapitaLand’s recurring income base with mall openings, we will also continue to enhance our retail scale and network through acquisitions and management contracts, as well as reconstitute our portfolio to achieve an optimal asset mix.”

  • Hyundai opens Beijing brand experience space

    Hyundai opens Beijing brand experience space

    Hyundai Motor Group, Korea’s largest automaker, opened its sixth brand experience space in Beijing to reach more Chinese consumers.

    Hyundai Motorstudio Beijing is located in the city’s 798 Art District, known for its galleries and cafes. The center will be a cultural space and not feature any cars. The Motorstudio is the second overseas location of its kind after one in Moscow.

    Chung Eui-sun, the company’s vice chairman, attended the opening ceremony in Beijing on Nov 1, indicating just how vital the Chinese market is to the automaker. Hyundai Motor has been struggling in the country and hopes the center will boost its fortunes in the world’s largest auto market.

    “Hyundai Motorstudio Beijing represents the direction of Hyundai Motor’s future path, which centers on sustainability and creative energy that can solve social problems,” Chung said. “It feels more meaningful that such venue could be established in this experimental and innovative neighborhood of 798 Art District.”

    Hyundai Motorstudio Beijing includes a book lounge and cafe on the first floor and gallery on the second floor. A vivarium occupies one side of the building’s exterior, and other art installations are scattered across the studio space.

    Along with the space, the automaker is running a program called Hyundai Blue Prize to support emerging artists and select a few to display their work in the Motorstudio.

    The opening comes amid a thaw in relations between Seoul and Beijing. The Korean and Chinese governments agreed to a rapprochement after months of diplomatic cold shoulders over a U.S. missile defense system in Korea that China believes threatens its security.

    Chung said at the ceremony that he expects a “positive effect” from the promise of better relations between the two countries.

  • Big Baller Brand expands into China

    Big Baller Brand expands into China

    American sports apparel company Big Baller Brand has bounced into Hong Kong and Mainland China on the back of a basketball game.

    Founder/CEO LeVar Ball, a former basketball and football player, took advantage of a match in which his son LiAngelo played for UCLA (University of California, Los Angeles) in Shanghai’s Mercedes Benz Arena, which has also just hosted the Victoria’s Secret annual showcase.

    ESPN writer/editor Jovan Buha says the family used the trip to launch Big Baller Brand China via two pop-up stores, one at streetwear outlet WZK Shanghai followed by the other, opening today at Juice in Hong Kong.

    Buha says the family’s brand is set to open its own flagship stores in both cities, along with a dedicated Chinese website.

    Big Baller Brand was inspired by LiAngelo and his brothers Lonzo and LaMelo – following in their father’s footsteps as basketball players.

  • Giants’ retail partnership points to Asia’s future

    Giants’ retail partnership points to Asia’s future

    JD.com brings to the partnership its competitive edge in logistics and technologies such as artificial intelligence, cloud computing, drones and robots, while Central offers retail expertise including knowledge of Southeast Asian markets, brand relationships, customer base, physical store network and loyalty programmes.

    E-commerce has enormous growth potential in Thailand, which the partnership hopes to tap into. For example, only 1-2 per cent of Central’s sales are online; by working with JD.com, Central aims to increase this to 15 per cent by 2021.

    A major benefit for Central is better access to the Chinese market. JD.com has an alliance with Tencent, owner of the popular messaging app WeChat that averages 902 million daily logged-in users (as of September 2017). JD.com customers who make their purchases with WeChat have their goods delivered using an advanced logistics system which increasingly features drones. JD.com’s 150 or so drones make more deliveries than any other drone user globally. The company is also testing drones that can carry up to a tonne, and using robots in its warehouses.

    JD.com’s drone-delivery model is different from that being tested by US retailers such as Amazon and 7-Eleven. Instead of delivering packages direct to individual homes, local distributors receive and distribute them. In the US, a stricter regulatory environment and privacy concerns mean drone deliveries are not advancing as rapidly as in China and are still in the testing phase.

    JD.com founder and chairman Richard Liu believes drone deliveries would save massively on costs, especially in rural areas. He estimates that drone deliveries are at least 70 per cent cheaper than delivery by truck and take a fraction of the time.

    Unlike China’s other e-commerce giant Alibaba, JD.com is focused on building a complementary bricks-and mortar-business through strategic alliances with strong retail brands such as Walmart, and selling luxury goods through its partnership with the online luxury-brand marketplace Farfetch.

    According to Liu, JD.com is attracted to Thailand because of its large population, developed infrastructure and strong logistics network. The plan is to make Thailand a major hub for e-commerce expansion across Southeast Asia.

    Many North American retail stores are closing – Sears and Macy’s among them – so it is encouraging to see the confidence reflected in this partnership. Given the Chinese love of shopping, Thailand’s experience in developing luxury malls and the rapid development of technology in this part of the world, this points to a prosperous future for retailing in Asia.

  • No-more-cashier at new Suning store

    No-more-cashier at new Suning store

    A Suning store in Shanghai introduces an intelligent self-service checkout using facial-recognition technology for payments.

    Suning Biu is reportedly the retail giant’s second such store in China, reports China.org.

    Covering about 100sqm, the new Suning store is larger with more varied product categories than the company’s first unmanned shop in Nanjing, where Suning has its headquarters.

    Before shopping, customers need to download an app and upload their personal information including a photo of their face and a bank card. In the shop they scan their face to take advantage of the automatic payment process.

    Without having to scan QR codes or barcodes to calculate prices, clients just need to step into a “payment area” at the exit and look at an overhead camera. Their purchases will be listed on a screen, and payment completed automatically using their registered bank card. The few staff members in the store are there to offer technical instructions if necessary.

    Suning.com vice-CEO Fan Zhijun says self-service stores are expected to be introduced to other cities in China.

  • Sales drops for Louis Vuitton Korea

    Sales drops for Louis Vuitton Korea

    Louis Vuitton Korea has fallen behind its rivals, with sales dipping into minus territory this year, industry data shows.

    Sales at a leading department store for the international fashion house for the January-October period backtracked 5.3 per cent. Demand for Louis Vuitton products were down 2.1 per cent at another department store during the same period.

    Meanwhile, rivals Chanel and Hermes achieved double-digit sales during the same period. Chanel added 11.2 per cent and 13.7 per cent at the two department stores, while Hermes managed 16.5 per cent and 17.1 per cent growth, respectively.

    “The vast popularity of Louis Vuitton in the past and consequent sales have made the brand too common, taking away much of its cachet,” an unidentified retailer said. “The popularity of its monogram series fizzled out, and there was no succeeding product, which is another reason for the slump,” he said.

    Exact sales figures are not available for Louis Vuitton, after its local operator was turned into a privately-held company from a limited company in 2012 when its lack of social contribution compared to its dividend propensity became controversial. Privately-held firms do not have to disclose detailed corporate information, such as donations.

    A law was revised recently, however, requiring private companies to undergo external inspections and to disclose financial information, including sales, dividend rates and contributions.

  • Alibaba’s Singles’ Day Sales Hit $10 Billion in one hour

    Alibaba’s Singles’ Day Sales Hit $10 Billion in one hour

    the frenzied annual celebration of consumption and commerce that is China’s much larger version of Black Friday — began as a protest of sorts against Valentine’s Day, propelled by college students in the 1990s.

    The event’s date, written numerically as 11/11, was associated with unattached singles, known as “bare sticks.”

    This year’s shopping festival entered new territory, blazing past $1 billion within two minutes of the holiday, starting at midnight on 11 November.

    Singles’ Day is now inextricably linked with Alibaba, the Chinese e-commerce leviathan that in recent years has turned the holiday into an online — and occasionally brick-and-mortar — mercantile extravaganza. It routinely eclipses Amazon’s yearly Prime Day promotional event.

    In July 2017, Prime Day generated an estimated $1 billion in revenue during its 30-hour sale window, resulting in what Amazon called its “biggest day ever.” A little more than an hour into this year’s Singles Day, sales had already exceeded $10 billion.

    The event has evolved into a cultural phenomenon. On Friday night, Alibaba hosted a lavish gala in Shanghai, directed by one of the producers behind the 2016 Academy Awards.

    Celebrities such as Nicole Kidman, Pharrell Williams and Maria Sharapova helped count down the moments before the 60,000 participating global brands released their Singles’ Day deals to shoppers.

    One offer, from the Chongqing-based online alcohol brand Jiang Xiao Bai, allowed 33 fast-moving customers to make a single payment of 11,111 yuan, or $1,673, for a lifetime supply of a grain liquor known as baijiu.

    Singles’ Day, which is largely powered through Alibaba’s Tmall marketplace, will test the company’s logistics network. The company promised delivery within an hour for certain products and, in advance of the shopping festival, converted nearly 100,000 stores across China into “smart stores” capable of processing payment using facial recognition and other advanced technologies.

  • Hermes grows in China

    Hermes grows in China

    Sales momentum in Mainland China helped boost growth for French luxury retailer Hermes in its third quarter.

    Overall sales grew 11 per cent at constant exchange rates, and at the end of September revenues were up 10 per cent to €4 billion (US$4.6 billion).

    Despite a strong comparison basis, sales in Asia (excluding Japan) rose 14 per cent, while Japan achieved a solid performance with a 5 per cent increase in the face of a strengthening yen.

    Hermes says all sectors recorded growth, with a “remarkable” 11 per cent performance by ready-to-wear and accessories.

    The 11 per cent growth in leather goods and saddlery was in line with the annual target of around 10 per cent, says the company, thanks to the success of its collections and diversity of models, particularly the Constance, Halzan, Lindy and Verrou bags, alongside Birkin and Kelly.

    With 9 per cent growth, the silk and textiles business line benefited from sustained demand, the diversity of the collections and the wealth of the creations, says Hermes.

    Strong growth of 13 per cent was posted by the perfumes division, driven notably by the launch of Twilly d’Hermes.

    There was a slight 1 per cent improvement for watches, while other lines grew by 11 per cent, including jewellery, art of living, and table arts.