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Tag: China

  • China star market for L’Occitane International

    China star market for L’Occitane International

    China led first-half international sales for French beauty products group L’Occitane International with 22.7 per cent growth in local currency and 15.8 per cent in same-store sales.

    This continued China’s sales momentum in the first quarter, and the company credits the growth to a marketing campaign featuring Chinese artist Lu Han.

    T-mall sales continued to grow at triple digits, ahead of plan, while the company’s other e-commerce and online marketplace outlets grew 22.6 per cent to reach 12.9 per cent of total retail sales.

    However, net sales eased by 0.6 per cent from the same period last year to reach €548.2 million (US$648.4 million) at reported rates. At constant exchange rates, sales growth was 1.1 per cent.

    On a like-for-like basis – excluding the disposal of Le Couvent des Minimes and a one-off deal of L’Occitane au Bresil last year – sales grew by 2.3 per cent at constant rates and 0.5 per cent at reported rates.

    Retail sales accounted for 72.4 per cent of net sales, amounting to €397.1 million, down 0.9 per cent at reported rates. At constant rates, growth was 1.1 per cent. This growth was primarily contributed by non-comparable stores and other sales, including new and renovated stores, marketplaces and spa businesses. The growth was 5.2 per cent at constant exchange rates

    The group’s same-store sales eased by 0.1 per cent, an improvement from the 0.6 per cent dip for the first quarter and the 2.5 per cent drop for last year’s first half. This is attributed to China’s sales and overall improvements in key countries.

    Wholesale sales at €151.1 million accounted for 27.6 per cent of total sales, up 1 per cent at constant exchange rates. Like-for-like growth was 5.4 per cent, primarily driven by dynamic growth in travel retail, distribution, B2B and web-partner channels of the L’Occitane en Provence brand. Emerging brands Erborian and Melvita delivered double-digit growth.

    L’Occitane International says it maintained selective openings with five stores added to its network and 78 renovated during the six months to the end of September. During the same period last year, 32 stores opened and 39 were renovated.

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  • Alipay, WeChat top China brand relevance index

    Alipay, WeChat top China brand relevance index

    Chinese internet brands are trumping their Western counterparts in China, according to the second China Prophet Brand Relevance Index (BRI).

    Alipay and WeChat came in first and second respectively for the second consecutive year, followed by Android, IKEA and Apple.

    “Chinese consumers today live, work and play in a connected, digital world, so the brands that deliver useful, easily accessible and enjoyable experiences are going to be the most relevant to their lives,” Tom Doctoroff, Senior Partner at Prophet said in a press release.

    “This is our second Brand Relevance Index in China, and Alipay and WeChat dominate once again as the top two brands because they brilliantly use technology to innovate and inspire consumers,” he added.

    BRI is a ranking of the most relevant brands in consumers’ lives. Prophet partnered with research firm SSI to survey 50,000 consumers across the US, UK, Germany and China about 750 brands before deriving the results. The Chinese BRI results is part of this four-country effort, and is the second global survey conducted by the firm.

    Five retail and hospitality brands finished the top 10 listing. They included Nike, Estee Lauder, BMW, Marriott and NetEase Cloud Music.

    According to the Prophet, almost half of the top 50 brands were all technology-led. The rest were significantly invested in digital connectivity, showing that Chinese consumers like brand experiences that occur on demand, across devices and channels.

    “Brands today cannot stay still. They need to earn and re-earn loyalty at every micro moment in the customer journey, again and again. They have to be relentlessly relevant. This is more true in China than anywhere else. The brands that scored high in our Index enjoy healthy long-term demand and a strong bottom line because they are constantly reinventing themselves to satisfy and delight consumers,” Doctoroff said.

    The findings also showed that Chinese consumers are demanding for unique and immersive experiences. Here, brands like Marriott, W Hotel (ranked 11) and BMW dominated through their focus on experience and design.

    Equally important are brands that Chinese consumers to show their individualism. They are increasingly looking to share their unique experiences on QQ (ranked 28), show a greater desire to try on Taobao (ranked 35), test on Meituan (ranked 40) and taste products on Dianping (ranked 41).

    Meanwhile, Chinese consumers are focusing more on music, gaming, entertainment and sporting goods, which make up more than a fifth of the top 50 brands. According to the press release, there is “a growing shift towards prioritizing the balance between emotional and physical wellbeing, instead of focusing on just physical health.”

    Chinese consumers are beginning to embrace the sharing economy. Mobike (ranked 14) and Airbnb (ranked 45) are now taking over spots held by restaurants and airlines. Ofo (ranked 54) and Didi (ranked 87) are just outside the top 50 ranks.

    “It’s clear to be successful, brands need more than size and ubiquity. They must create a product that people love enough to integrate into their everyday lives. The brands that inspire this level of loyalty will ultimately grow the fastest because they are relevant in the moments that matter most to consumers,” Leon Zhang, Partner at Prophet, based in Shanghai, said.

    Apple continued to dominate across global rankings, holding the top positions in the US, UK and Germany rankings. Google was among the top three in the same countries.

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  • Ajisen China has mixed third quarter

    Ajisen China has mixed third quarter

    A high in China almost equally matched by a dip in Hong Kong has resulted in a mixed third quarter for Ajisen China Holding’s fast-casual restaurant business.

    Same-store sales in Hong Kong fell by 9 per cent for the three months to the end of September, while the growth rate in China had an upswing of 9.7 per cent.

    Overall, the group’s business sales saw 6.4 per cent growth compared to the same period a year ago.

    Chairman Poon Wai says the figures have not yet been reviewed or audited.

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  • Alipay mobile payment introduced in Denmark

    Alipay mobile payment introduced in Denmark

    The world’s leading mobile payment platform Alipay was launched in Denmark on Monday, enabling its Chinese users to enjoy its fast and convenient payment service when they travel to the Nordic country.

    “We are happy that Denmark and the Nordics are embracing Alipay for Chinese tourists. The adoption of Alipay services of both payment and marketing will not only enhance the experience of Chinese consumers but also help Danish businesses to reach out to their Chinese customers even before they depart from China,” said Wang Li, head of Alipay EMEA (Europe, Middle East and Africa).Operated by Ant Financial Services Group, an affiliate company of China’s Alibaba Group, Alipay users can hail a taxi, book a hotel, buy movie tickets, pay utility bills, make appointments with doctors, or purchase wealth management products directly from within the app.

    Alipay was launched in Denmark by APay Nordic AS, in cooperation with 2paynow, the technology platform provider of Alipay in Europe.

    “We are glad to see that APay Nordic is now introducing Alipay into Denmark, which will further strengthen the advantages of Denmark as a Chinese-friendly destination,” said Miklos Bengtsen, CFO of ILLUM, a premium department store in Copenhagen, adding that China is a very important market for the Danish retail business.

    According to Wang, Alipay’s in-store payment service is covering more than 30 countries across the world, and tax reimbursement via Alipay is supported in 24 countries and regions.

    Alipay has been launching its services in Europe since mid-2016. Denmark is the fourth Northern European country for Alipay to set foot in after Norway, Finland and Sweden.

    Alipay now has over 520 million active users and over 450 financial institution partners globally. Over 10 million merchants accept Alipay across China.

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  • LG U+, Huawei validate 4G-5G dual connectivity

    LG U+, Huawei validate 4G-5G dual connectivity

    South Korea’s LG U+ has collaborated with Huawei to complete technology verification for 4G-5G dual-connectivity technology.

    The field test involved linking a 3.5-GHz base station with a 28-GHz base station to allow terminals to simultaneously connect to both, achieving a peak downlink rate of around 20Gbps.

    It involved the use of two base stations at a LG U+ 5G testbed in Seoul. The operator had already verified the technology in a laboratory environment.

    LG U+ director of 5G strategy Kim Dae Hee said dual connectivity technology will provide the foundation for 4G-5G heterogeneous networks.

    “By demonstrating ‘Dual-Connectivity’ technology, which will play a key role in multi-operation of 4G and 5G wireless base stations, we will develop various next-generation technologies to provide a 5G service.”

    LG U+ and Huawei have been collaborating on 5G development since the two companies signed a 5G collaboration agreement in July 2015. Last month, the companies completed the first phase of an urban field test of 5G over the 28-GHz band.

    The companies pledged to continue to carry out 5G technical cooperation and verification activities in advance of the planned commercial deployment of the technology in time for the 2018 Winter Olympics in PyeongChang.

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  • Australia’s Retail Food Group to target China

    Australia’s Retail Food Group to target China

    Australian-headquartered food and beverage retailer Retail Food Group says it will focus on greater China for its next phase of growth.

    RFG is Australia’s largest multi-brand retail food franchise owner, developer and manager, with a network of more than 2500 outlets across 12 brands and 81 territories. RFG CEO international, Mike Gilbert, says the company plans to introduce a selection of its coffee-based retail food brands to Chinese consumers.

    “We’re excited to replicate our successful Australian operations in the Chinese market and accelerate the growth of brands like Gloria Jean’s Coffees, Donut King, Crust Gourmet Pizza Bar, Brumby’s Bakery, Michel’s Patisserie, Pizza Capers Gourmet Kitchen, Cafe2U and It’s A Grind in the region,” he said.

    The company also owns the BB’s Cafe, Esquires, The Coffee Guy franchise systems and the premium Di Bella Coffee Co brand.

    Gilbert says RFG’s international expansion model is based on recruiting master franchise partners who purchase a license to develop a certain brand system in a defined territory, and provides the company and local partners with the opportunity to forge sustainable alliances.

    A key strategy driving the group’s global growth is its hub network, which provides a platform for fast-tracking coffee and brand system expansion in international markets, whilst also more efficiently servicing the company’s existing markets.

    RFG is developing a Middle East hub next year which it believes will help it expand quickly through the MENA region, whilst enabling the group to more efficiently service and grow brands  in the Gulf.

    “We currently have hubs in Australia, New Zealand and the US, and plans for the Middle East underway, and will be looking to replicate them in Asia and Europe,” said Gilbert.

  • Marc Jacobs China launches online flagship

    Marc Jacobs China has launched its first online flagship store with VIPlux, which carries international luxury and premium brands.

    The US fashion label is offering its hip hop-inspired autumn collection to VIP.com’s 300 million members.

    Marc Jacobs says it chose VIPlux as its partner because of its dedication to creating end-to-end shopping experiences.

    VIP.com co-founder Arthur Hong says VIPlux understands how to “become one” with the spirit of specific brands and match that with market growth.

    VIP.com launched with VIPlux in 2008. Other fashion labels with flagship stores on the platform include Armani, Diesel, Roberto Cavalli, Salvatore Ferragamo, Sergio Rossi, Trussardi and Versace.

  • China Unicom 9M17 profit grows 155%

    China Unicom 9M17 profit grows 155%

    China Unicom has announced it expects to report a strong 155% increase in net profit for the first nine months of the year, driven by robust service revenue growth and lower expenses.

    The operator’s preliminary results estimate that net profit reached 4.1 billion yuan ($618.6 million) for the period, with service revenue up 4.1% to 187.9 billion.

    China Unicom also reduced its selling and marketing expenses and handset subsidy spending as part of its new Focus Strategy.

    But the company still added over 13 million new mobile customers during the nine month period, taking its total to 277 million.

    Total 4G net additions were 55.7 million, with the operator’s total 4G customer base growing to 160 million. In September alone, Unicom gained 3.82 million new mobile customers and 7.56 million new 4G customers – a company record for both metrics.

    Despite the strong results, Unicom warned that the recent regulator-mandated abolishment of domestic long-distance and roaming fees – coupled with a cyclical increase in market competition – is expected to place increasing pressure on the company’s financial performance in the fourth quarter.

    “Going forward, the Group will actively address challenges, continue to deepen Focus Strategy and earnestly capitalise on the implementation of mixed-ownership reform to raise efficiency and returns,” China Unicom said in a statement.

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  • Jardin Sacai capsule collection for Colette

    Jardin Sacai capsule collection for Colette

    Following a showcase at Colette in Paris, Japanese fashion label Jardin Sacai has bringing a capsule collection to Asia, starting at the Colette Hong Kong flagship store in Central.

    Available until November 6, the collection features collaboration projects with niche luxury brands such as Astier de Villatte, Be@rbrick, Fragment Design, Globe-Trotter, Lacoste and Zucca.

    Label creator Chitose Abe, previously with Comme des Garcons, has previously collaborated with Nike and The North Face on exclusive capsule collections.

    “Colette was one of the first retailers to start carrying the Sacai collection when I first started my line, and has always felt like home to me,” says Abe.

    Meanwhile, Colette plans to close its flagship Paris concept store on December 20, two decades after it was founded by Colette Roussaux, who is stepping down.

  • Cafe de Coral China closing east China stores

    Cafe de Coral China closing east China stores

    Cafe de Coral China is closing its stores in the nation’s east to focus on the southern China market.

    With 359 restaurants in Hong Kong and 99 on the mainland, the Hong Kong fast-food chain announced on its official WeChat account that it is closing its restaurants in Nanjing, Shanghai and Wuxi this month. It advised customers to cancel their membership and obtain a refund.

    A spokesperson says the closures are temporary and a “short-term strategic adjustment” to put a focus on business in the south. “We are performing well in the southern China market, and generally in Mainland China we are achieving positive growth,” she says.

    In its annual report in March, the company said competition was likely to remain keen in Mainland China, but it was optimistic about the prospects in the country because of its “long history and strong foundation”. Mainland same-store sales growth had been satisfactory and profit margin had improved.

    The report said the company would build its brand presence in strategic locations in Southern China, increase brand penetration in second- and third-tier cities, enhance brand loyalty and win over new customers.

    Highly competitive

    Cafe de Coral works in a highly competitive segment, says OC&C Strategy Consultants partner Pascal Martin. “You can find similar dishes in street shops at very low prices in China. This is different from western fast-food chains which do not have to compete so much with low-priced local equivalents.”

    He suggests the chain might need to adjust its flavours to accommodate tastes for various regions in China, which all have different preferences.

    Martin also says the Cafe de Coral model also requires expensive space, and consumer habits are changing with the growth of online ordering and take-out. “Maybe the chain’s new strategy will take this into account more fully.”

    Another issue he raises is that the brand may not have much power in China yet. “Insufficient investment in marketing – particularly online marketing in China – and lack of brand recognition may not have achieved the level of traffic needed to run the restaurants successfully.”

    OC&C research last year into the foodservice landscape in China noted that consumers eat out almost three times a week on average, and are becoming more sophisticated amid increased awareness and openness toward international brands. Its report found that Chinese consumers actively seek out new restaurants and are receptive to new formats and concepts.

    “Moreover, food quality, a wide choice of categories and service quality came up as the three critical factors, while serving speed, convenience and pricing were rated less important.”

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  • Apple slams Qualcomm suit seeking iPhone ban in China

    Apple slams Qualcomm suit seeking iPhone ban in China

    China is a vital Apple manufacturing base and sales market.

    Apple has rejected as “meritless” a legal move by Qualcomm to ban iPhone sales in China, the latest salvo in a bitter patent battle between the two U.S. tech giants.

    Qualcomm had filed a lawsuit in Beijing seeking a ban on the assembly and sale of iPhones in China — a vital Apple manufacturing base and sales market.

    The two California companies are fighting over Apple’s claims that Qualcomm is abusing its market power over certain mobile chipsets in order to demand unfair royalties.

    Apple filed a U.S. lawsuit to that effect in January and has joined efforts in other countries where Qualcomm faces probes from antitrust authorities.

    Qualcomm has countersued Apple for the royalties.

    In response to Qualcomm’s Beijing suit, Apple said in a statement: “This claim is meritless and, like their other courtroom maneuvers, we believe this latest legal effort will fail.”

    It was filed on September 29 in an intellectual-property court, and said the suit was confirmed by a Qualcomm spokeswoman.

    It remains unclear how much chance Qualcomm’s case has in China, where huge numbers of workers are employed in the manufacture of iPhones.

    The Qualcomm patents cover power management and a touch-screen technology called Force Touch that Apple uses in current iPhones, Bloomberg reported, quoting Qualcomm.

    Apple dismissed Qualcomm’s claims.

    “In our many years of ongoing negotiations with Qualcomm, these patents have never been discussed and in fact were only granted in the last few months,” Apple’s statement said.

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  • Goobne grows in Hong Kong after China rebuff

    Goobne grows in Hong Kong after China rebuff

    Korean chicken franchise Goobne has opened a seventh outlet in Hong Kong, in a residential area in Tseung Kwan O.

    It is part of the brand’s strategy to focus on profitable markets as its business in Mainland China has been hit by the Beijing/Seoul dispute over the deployment of the THAAD missile system in South Korea.

    “We had two branches in China but now are left with one in Suzhou,” says a company spokesperson. “Our store in China is not very profitable.”

    Another chicken franchise, BBQ, which has more than 150 stores in China, said in May that it was unable to expand as its local partner refused to invest further in Korean firms.

    Goobne, meanwhile, has 11 stores in  Japan and Macau as well as China and Hong Kong. Its monthly sales overseas reached 1.5 billion won (US$1.3 million) on average this year, with its Hong Kong sales accounting for about 1.3 billion won.

    “We are doing well in Hong Kong,” says the spokesperson. “The first store in Tsim Sha Tsui alone showed more than 400 million won in sales monthly last year.”

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  • Ford’s China sales stuck in first gear as rivals overtake

    Ford’s China sales stuck in first gear as rivals overtake

    Ford Motor saw its China vehicle sales make the barest of increases in September, extending a tough run in the world’s largest auto market even as global rivals have logged robust gains.

    The U.S. automaker has lacked a high-volume brand of affordable entry cars for China and has been criticized for slow decision-making that has cost it share in a market where consumer tastes change quickly.

    In response, it has brought in a new China head, Jason Luo, a Chinese-born American formerly at U.S.-based air bag maker Key Safety Systems, tasked with building closer ties with Ford’s local partners and working more effectively with regulators.

    The U.S. carmaker sold 112,902 vehicles in China last month, an increase of some 430 from the same period a year earlier.

    By contrast, rivals Toyota, Honda and Nissan Motor saw gains of 14 percent or more while General Motors posted an increase of 7 percent.

    Overall vehicles sales in China rose 5.7 percent in September – a fourth straight month of growth.

    Like many other global automakers, Ford is also looking to revamp its strategy towards electric vans and cars to keep up with Beijing’s push for cleaner new-energy vehicles (NEV).

    The country has set strict quotas for NEVs which carmakers must meet by 2019, a move that is prompting a flurry of electric car deals and new launches of electric and hybrid models. Ford said it was looking to set up an electric car venture with Chinese firm Anhui Zotye Automobile Co in August.

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  • Alibaba sets up global research academy

    Alibaba sets up global research academy

    Alibaba Group has established a global research academy which aims to increase collaboration on cutting-edge technology development.

    Through the academy the company expects to invest more than $15 billion in R&D over the next three years.

    The new Alibaba DAMO Academy — the Academy for Discovery, Adventure, Momentum and Outlook — will oversee the development of R&D labs worldwide to seek to recruit talented scientists and researchers to join the program. It will be led by Alibaba Group CTO Jeff Zhang.

    “Over the past 18 years of establishment, we have gained robust growth in our business, profit and have accumulated lots of data. Now is the right time to set up our own research academy,” said Jack Ma, executive president of Alibaba Group at the company’s Computing Conference 2017 in Hangzhou.

    He added, “Our academy is not just for making profit or for fun. We aim to focus on research for solving society and people’ problems. We will learn from IBM, Intel and Microsoft research labs, and target to surpass them.”

    Initially the academy will focus on opening research labs in China – in Beijing and Hangzhou – as well as two in the US and one each in Russia, Israel and Singapore.

    The seven labs will focus on research into disruptive technologies including data intelligence, the internet of things, fintech, quantum computing and human-machine interaction.

    Areas of focus within these broad domains will include machine learning, network security, visual computing and natural language processing (NLP).

    The academy will also seek to recruit 100 talented researchers from around the world to assist with the research efforts, and form partnerships with luminaries in the technology sector and educational institutions.

    “The Alibaba DAMO Academy will be at the forefront of developing next-generation technology that will spur the growth of Alibaba and our partners. We aim to discover breakthrough technologies that will enable greater efficiency, network security and ecosystem synergy for end-users and businesses everywhere,” Alibaba Group’s Zhang said.

    “Over the past 18 years, we have developed a robust technology infrastructure that supports the rapid growth of our business. With our global expansion, we have grown and refined our technology manifold. We are now looking for talented and driven researchers to join us in the quest for new disruptive technologies that would advance our every-day lives, benefit small businesses and narrow the technology gap to make our world a more inclusive place.”

    The company also plans to use the research lab to help fulfill its ambition of serving 2 billion customers and creating 100 million job opportunities in 20 years.

    The research academy will include advisers like educators and researchers from universities globally who will provide guidance and advice on key research areas.

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  • Costa Coffee buys out south China partner Yueda

    Costa Coffee buys out south China partner Yueda

    British high-street chain Costa Coffee has taken full ownership of its south China business after buying out partner Yueda.

    Costa previously held 51 per cent of their JV, buying the balance of shares for RMB310 million (US$47 million), giving it total control of 252 stores.

    The deal is part of the group’s plans to expand overseas, says Alison Brittain, chief executive of Costa’s parent company Whitbread.

    “We have enjoyed an excellent partnership with Yueda over the past 10 years, together beginning to build the Costa brand in this key market,” says Brittain. “The coffee shop market in China is highly attractive, with a compelling opportunity for Costa to grow its presence over the longer term.

    “This acquisition gives us full strategic and funding flexibility to unlock Costa’s potential in China.”

    Meanwhile, the company says it remains fully committed to its partnership with BHG in northern China.