Tag: China

  • Sunglass Hut Opens New Store In Hangzhou

    Sunglass Hut Opens New Store In Hangzhou

    International sunglasses retailer Sunglass Hut opened a new store in Hangzhou’s Intime Wulin store, which is the brand’s third store in the city following the ones in Hangzhou Kerry Centre and Hangzhou Bailian Outlets.

    Sunglass Hut has reached cooperation with many first-tier brands, including Ray-Ban, Prada, Dolce & Gabbana, Burberry, Tiffany & Co., and Coach.

    It started as a small independent store in Miami in 1971 and it developed 100 chain stores in Miami by 1986, reaching annual sales of USD24 million. By 1991, Sunglass Hut’s annual sales exceeded USD100 million and by 1996, the company seized 30% share of the American sunglasses market.

    By the end of 2016, Sunglass Hut already opened 3,269 retail stores in 28 countries and regions around the world, including 3,104 retail stores in North America, Asia Pacific, Europe, South Africa, and Latin America; and 165 authorized retail stores in Middle East and India.

    For the Greater China region, Sunglass Hut had nearly 40 retail stores, including 13 in Hong Kong, seven in Shanghai, and three in Beijing.

  • Chinese firms are increasingly shopping abroad

    Chinese firms are increasingly shopping abroad

    It was a flurry of activity this month in the Chinese investment sector as the battle for market share intensifies among fashion players.

    No longer content with national domination, Chinese companies are increasingly shopping abroad as they look for ways to build their presence overseas while strengthening their reputation at home.

    This month’s deals are just the latest in a succession of rounds where Chinese firms have targeted brands based outside China’s borders.

    Menswear giant Septwolves, for instance, while the name might not ring many bells outside China, the brand’s parent company Fujian Septwolves Industry Co. Ltd. announced that it will acquire an 80 percent share in Karl Lagerfeld Greater China Holdings (KLGCH).

    Last year the firm reported a net profit of 267 million yuan ($40.5 million at current exchange). Due to KLGCH’s late entry into the market, the deal will likely provide the company with a much-needed boost thanks to its experience in distribution and local resources.

    The deal is a feather in the cap of the Fujian Septwolves chairman, Zhou Shaoxiong: not only will he gain access to the international networks of fashion icon Karl Lagerfeld, but he will also benefit from an increased international brand awareness of his Chinese portfolio.

    However, what may at first glance appear to be a prestige target is in fact a decidedly strategic investment.

    According to Jing Daily, Fujian Septwolves’s representatives suggested that its move into the accessible luxury sector could accelerate the transformation of the company’s retail model.

    Fujian Septwolves already distributes international luxury brands in China including Italian labels Versace and Canali, and in March of this year the firm diversified into media, acquiring a 30 percent minority share of Modern Media’s digital division.

    Another examples is Shenzhen Ellassay Fashion Co. Ltd. that has been building up its portfolio since 2015.

    Earlier this month it purchased a majority stake in Vivienne Tam’s China rights. The deal includes plans to open a number of stores in China before the end of the year, with further openings planned for 2018.

    Gangtai Group also purchased an 85 percent stake in Italian jewellery brand Buccellati in December 2016, while Chinese textile company Shandong Ruyi acquired British heritage brand Aquascutum, as well as a major stake in SMCP, the French company that owns contemporary brands Maje and Sandro.

    While earlier acquisitions raised some eyebrows in fashion industry circles, Booker believes that this month’s increasingly aggressive M&A pace demonstrates that many more China-based players are interested in flexing their investment muscle abroad.

  • Bedgear signs China deal with De Rucci

    Bedgear signs China deal with De Rucci

    US lifestyle bedding company Bedgear has signed a partnership with Chinese retailer De Rucci Beddings to open more than 500 shops in China over the next five years.

    The Bedgear Performance Sleep Shops will offer a personalised customer experience including interactive technology walls. One-on-one consultations will enable shoppers to build up their own individual sleep system starting with the Bedgear Pillow ID, technology that uses a proprietary algorithm to determine the most suitable pillow based on an individual’s sleep position, body type and mattress.

    Bedgear CEO Eugene Alletto says the move into China follows the company’s expansion in the US, Australia and Russia.

    “I was excited about the power of Bedgear’s performance brand,” says De Rucci president Wang Bingkun. He says he was intrigued by the company’s showrooms in the US with their new way to present bedding to young customers.

    Founded in 2009, Bedgear offers patented fabric technologies to deal with heat and moisture to help regulate body temperature and generate a cooler sleep environment.

    De Rucci launched in 2004 with a dedication to researching healthy sleep with a holistic offering of research, manufacturing and sales. It has more than 3000 flagship stores in 11 countries including Hong Kong.

  • Sales at Toyota’s Lexus brand slide in first-half as sedans suffer

    Sales at Toyota’s Lexus brand slide in first-half as sedans suffer

    Toyota Motor on Friday said its luxury Lexus brand suffered its first fall in half-year global sales in six years as demand for its sedans tumbled in the United States, its biggest market.

    Sedans, traditionally a mainstay for automakers including Toyota and Honda Motor, have fallen out of favor in their key U.S. market in past years, sending many carmakers scrambling to manufacture more larger vehicles including SUVs and trucks.

    Toyota said it sold 305,169 Lexus vehicles worldwide in the six months to June, down 4.4 percent from 319,275 vehicles a year earlier. Sales slumped 10 percent in the United States, which comprises nearly half of Lexus’s global sales, and 23 percent in Japan, while jumping 30 percent in China.

    “The U.S. passenger car market has been very challenging, and this has affected sales,” Toyota spokesman Maki Niimi said.

    He added that the automaker expects annual sales to slide about 4.0 percent this year to around 650,000 units, as the recently launched LC sports coupe model and a revamped version of its marquee LS sedan model later this year lift sales slightly in the coming months.

    While Lexus continues to enjoy solid U.S. sales of its NX SUV crossover model, analysts said that the brand overall had fallen behind rival luxury brands with newer sedan offerings including Daimler AG’s Mercedes, which recently launched its E-Class range, and BMW’s 5-series.

    “It’s a model cycle issue,” said Janet Lewis, head of Asia transportation research at Macquarie Securities. “You have two core competing products recently launched (by Mercedes and BMW), while the LS is pretty long in the tooth.”

    Lexus sold just 1,855 units of its LS 460 model in the United States in January-June, down 35.2 percent from a year earlier.

    Overall, Toyota, the world’s second-biggest automaker, expects to sell 10.25 million vehicles globally this year, down a touch from last year.

  • WeChat goes to ground with WeStore test

    WeChat goes to ground with WeStore test

    As Chinese chat app WeChat moves into merchandising, it has opened an on-ground “test” WeStore in Guangzhou.

    This follows its announcement that it is partnering with apparel retailer Gap to launch a range of WeChat-branded clothing, its first major foray into branded merchandise.

    This was foreshadowed at December’s annual WeChat conference in Guangzhou, where are limited-edition range of branded merchandise was released, including pillows, notebooks, stickers and pins.

    A few months ago, WeChat-themed merchandise such as pillows, bags and light jackets was used as prizes for an online competition.

  • Gap China goes big on West Nanjing Road

    Gap China goes big on West Nanjing Road

    Gap China has opened a flagship store on Shanghai’s West Nanjing Road, its biggest flagship yet in Greater China.

    Featuring Gap’s full apparel collections and latest store-design elements, the flagship underscores the importance of the China market, says Gap, which will next year move its China retail headquarters team into an office above the store.

    Covering 1908 sqm over two storeys, the flagship showcases a store concept developed jointly by Gap’s local and global store-design teams, drawing inspiration from the brand’s heritage alongside modern elements. It incorporates digital and video elements to offer an immersive and easily navigable shopping experience, says the company.

    “We believe that in-person connections and interaction with consumers in physical stores still matter, and we intend to continuously innovate that experience by integrating digital and other new customer touchpoints,” says Gap Greater China executive VP/GM Abinta Malik.

    “We see China as an important market with ample opportunity for long-term growth and innovation. At a time when this market is embracing an era of ‘new retail’, I am confident our strengths in omni-channel and in-store customer experience position Gap as a trendsetter in China’s apparel retail landscape.”

    First time

    The Shanghai flagship offers Gap’s American-style clothing and accessories for men, women and children, and opens with the latest fall collections. The larger space enables the brand to offer the full expression of GapBody and GapFit for the first time in a store.

    The store also introduces a “Chill” station where customers can recharge their phones and relax, and space for customer events and to showcase special collections and designer collaborations. The children’s and baby floor has a nursing room as well as fun stations.

    For its grand opening the store will offer a special stylist service as well as experience booths for both children and adults. A DJ and children’s band will entertain customers, and featured collaborations include the latest Disney children’s collection featuring Snow White, with a themed set for photos.

    The new store replaces Gap’s previous West Nanjing Road flagship.

  • Renault-Nissan to set up new China JV with Dongfeng Motor for electric cars

    Renault-Nissan to set up new China JV with Dongfeng Motor for electric cars

    Nissan Motor and its alliance partner Renault are setting up a new joint venture in China with Dongfeng Motor Group to design and build electric cars, joining a list of global automakers aiming to make such vehicles in China.

    The automakers are attempting to tap into a boom for such cleaner “new energy” vehicles in the world’s biggest auto market and gearing up to meet its anticipated stringent plug-in car quotas.

    Ford Motor Co announced earlier this month it was exploring setting up a joint venture with car maker Anhui Zotye Automobile Co to build electric vehicles in China under a new brand.

    Tesla, Daimler AG and General Motors have already announced plans for making electric vehicles in China, which wants electric and plug-in hybrid cars to make up at least a fifth of the country’s auto sales by 2025.

    The new joint venture, called eGT New Energy Automotive Co, will be owned 25 percent each by Nissan and Renault with Dongfeng owning 50 percent, Nissan and Renault said in a statement on Tuesday.

    They said eGT will design a new electric vehicle on a subcompact crossover SUV platform of the Renault-Nissan alliance.

    “The establishment of the new joint venture with Dongfeng confirms our common commitment to develop competitive electric vehicles for the Chinese market,” Carlos Ghosn, chairman and chief executive officer of the Renault-Nissan alliance, said in the statement.

    The statement did not give details of financial commitments of the joint venture partners or say by when the vehicles will be launched. Dongfeng already partners Nissan in China.

    Both Nissan and Renault already market electric cars. Nissan’s Leaf compact hatchback has become the world’s top-selling electric car since its launch in 2010, while Renault began selling its Zoe model in 2012.

    The game changer for global automakers, many of whom until recently have resisted an industry shift to heavily electrified vehicles, is China – an auto market with strong potential for growth where stringent policies favoring cleaner energy cars are being aggressively pursued.

    Under China’s latest proposals, electric vehicle sales quotas, which are expected to take effect as early as 2018, are due to require 8 percent of automakers’ sales to be battery electric or plug-in hybrid vehicles by next year, rising to 10 percent in 2019 and 12 percent in 2020.

  • China’s JD.com Eyes Indonesia with Investment of Go-Jek

    China’s JD.com Eyes Indonesia with Investment of Go-Jek

    The move by China-based tech firms into Southeast Asia continues apace. But the ranks of Alibaba and Tencent, so far the most aggressive to expand into the region, are now being joined by Alibaba’s largest ecommerce rival in China, JD.com.

    Over the weekend, JD.com confirmed that it had invested in Indonesia-based ride-hailing service Go-Jek after news outlet The Information reported the development last week. According to Reuters, JD.com’s investment in the firm is around $100 million, and will be part of a funding round of about $1 billion.

    Go-Jek got its start in 2010 as an on-demand transportation platform for motorbikes, a common way for urbanites in Indonesia to navigate streets choked with traffic. However, Go-Jek’s portfolio of services has been broadly expanded since then to include grocery delivery, courier services, home cleaning, massages and even online ticketing.

    Go-Jek appears to be mimicking the success messaging platform WeChat has seen in China, by gaining a user base for one service—online ride-hailing—and then branching out. Go-Jek is also smartly pushing its users to pay for its expanding suite of services using its own digital payment service, Go-Pay.

    JD.com was once largely overshadowed by China’s ecommerce giant, Alibaba. But that has changed as the company’s model of using a business-to-consumer (B2C) ecommerce model—a contrast to Alibaba’s popular consumer-to-consumer (C2C) marketplace Taobao—has found success among a growing middle class in China that’s moving upmarket in the quality of goods it wants to purchase.

    According to data from iResearch Consulting Group, JD.com was responsible for 24.7% of retail ecommerce sales share in China in 2016, behind only Alibaba’s B2C platform Tmall.

    But JD.com is also clearly eyeing the potential in emerging markets like Indonesia. eMarketer estimates there will be 36.2 million digital buyers in the country this year, when retail ecommerce sales will total $8.21 billion. However, the ranks of buyers will swell to nearly 74 million by 2021, when $18.07 billion will be spent on retail ecommerce.

    JD.com is set on making sure it doesn’t get left behind in the market through its Go-Jek investment. In return, Go-Jek is likely to gain from JD.com’s expertise in managing the nuts and bolts of the ecommerce business, including shipping logistics and inventory management, should it decide to expand its efforts in that sector.

    Meanwhile, Go-Jek is given some more cash to fend off rivals Uber and Grab, a similarly Southeast Asia-focused ride-hailing app based in Singapore. Go-Jek can use all the money it can get its hands on; Grab, which operates in 65 cities in seven markets across Southeast Asia, closed a funding round worth $2.5 billion in late July from investors that include Japan-based telecom SoftBank Group and China-based ride-hailing giant Didi Chuxing.

  • Solid growth for Calvin Klein and Tommy Hilfiger in China

    Solid growth for Calvin Klein and Tommy Hilfiger in China

    Strong performances by Calvin Klein and Tommy Hilfiger in China helped propel solid half-year and second-quarter sales and profit growth for parent PVH Corporation.

    Chairman and CEO Emanuel Chirico said “better than expected” second-quarter results reflect the continued momentum and ongoing operating efficiencies across the company’s diversified business model.

    “Our results reflect a planned increase of approximately $25 million of marketing compared to the prior year related to Calvin Klein and Tommy Hilfiger, which we believe will continue to drive market share gains and allow us to capitalise on the brands’ significant international expansion opportunities over the next several years.”

    Global revenue from the Calvin Klein business for the second quarter increased 8 per cent year-on-year to $786 million. But Calvin Klein’s non-US sales soared 20 per cent thanks to an “outstanding performance” in the wholesale business in Europe and China, and solid growth in the retail business, the latter due to a 6 per cent increase in international comparable-store sales and square footage expansion in company-operated stores.

    Calvin Klein North America revenue decreased 1 per cent.

    Tommy Hilfiger revenue rose 4 per cent to $892 million, with international revenue up 9 per cent to $492 million, again driven by strong performances in Europe and Asia. But Tommy Hilfiger North America revenue was down 2 per cent to $400 million compared to the prior year period.

    Consolidated group revenue was $2.1 billion, up 7 per cent year-on-year.

    For the first half year, Calvin Klein sales rose 6 per cent, Tommy Hilfiger by 5 per cent and total group revenue by 5 per cent  to $4.1 billion.

    Earnings before interest and taxes for the first six months of 2017 was $392 million, inclusive of a $17 million negative impact due to foreign currency exchange rates, compared to $371 million in the prior year period.

  • Central Group, JD.com discussing joint venture

    Central Group, JD.com discussing joint venture

    Thailand’s Central Group is discussing a possible US$500 million e-commerce joint venture with JD.com, Reuters reports.

    JD.com chief executive Richard Liu said in June that it plans to enter the Thai market this year with the idea of using it as a hub to service other countries in the region like Malaysia and Vietnam.

    The venture would help China’s second-largest e-commerce retailer expand beyond Indonesia, where it has invested in an e-commerce platform as well as travel start-up Traveloka.

    Sources say the JV will focus on e-commerce and the finance sector, but the deal is being delayed because the companies have not been able to agree on ownership terms.

    Thailand’s e-commerce market is worth $900 million and is expected to grow 29 per cent over the next decade, according to a report published last year by Google and Singapore’s Temasek Holdings. Major players include Alibaba-backed Lazada, Thailand’s CP Group unit Ascend and South Korea’s 11street.

    It estimated the e-commerce market in Southeast Asia will soar 16-fold in value to $88 billion by 2025.

    JD.com sought to invest in Indonesian online retailer Tokopedia last month, which instead raised $1.1 billion from a group of investors including Alibaba, says Reuters.

    Meanwhile, JD.com has partnered with Qihoo 360 Technology in China to broaden sales channels through its Qihoo browser, search engine and app store.

  • Cole Haan signs China deal with Sitoy Retailing

    Cole Haan signs China deal with Sitoy Retailing

    US lifestyle group Cole Haan has signed a deal for distribution of its apparel, footwear and accessories in Greater China.

    It has formalised a long-term retail, wholesale and e-commerce distribution agreement with the Sitoy Group Holdings subsidiary that will introduce the Cole Haan brand in China, Hong Kong and Macau through all major retail channels from this summer.

    Active for nearly 90 years, Cole Haan has a retail presence in more than 40 countries across five continents as it focusses on a strategic initiative of global expansion.

    Beyond its direct retail businesses, the company has stores within top-tier shopping malls, department stores and specialty retailer locations in North America and Japan, as well as through distributor-run shops in Asia.

    In Hong Kong, it has stores in Harbour City, Festival Walk, Sogo Causeway Bay and Times Square, and nine in Mainland China, four of which are in Shanghai. Sitoy plans to launch more than 20 outlets in Greater China next year, and will also work through diversified e-commerce platforms.

    With its global headquarters in New Hampshire and its creative centre in New York City, Cole Haan retails men’s and women’s footwear, handbags, leather accessories, outerwear and eyewear.

    Sitoy Retailing has distribution agreements with such brands as A. Testoni, Bruno Magli, Jockey and Kenneth Cole. Its house brands include Fashion & Joy and Tuscan’s.

  • AirAsia plans flights from Davao to China, South Korea

    AirAsia plans flights from Davao to China, South Korea

    AirAsia expressed interest in expanding its services in the Philippines to include flights from Davao City to key cities in China, Korea and Malaysia, Department of Finance says in statement.

    THe deparment had issued the statement on Monday citing results of meeting between Philippines Finance Secretary Carlos Dominguez and AirAsia Group CEO Tan Sri Tony Fernandes.

    Fernandes said on Monday the lowering or scrapping of airport or departure tax in small airports will help realize airline’s expansion plans in Philippines.

    Dominguez will look into possibility of airports selling or leasing gates to airlines at different rates depending on landing times, in lieu of imposing airport taxes.

  • Xiaomi will present its new flagship

    Xiaomi will present its new flagship

    Chinese company Xiaomi plans to unveil its new flagship Xiaomi Mi Note 3 at a special event on September 12. CEO of Xiaomi lei Jun has decided to stir interest in the upcoming event. On his page on the social network Weibo, he posted the picture taken by the camera of Mi Note 3.

    See also:  Became known the price of the flagship smartphone Xiaomi Mi6

    The photo was taken at the opening of a new retail store Mi Store in Hong Kong. That the image captured by smartphone Mi Note 3 found a Chinese blogger who has studied the EXIF data of the photo.

    In speed these data were removed, but the source managed to take a screenshot. Image resolution is 12 MP, the lens aperture equal to F/1.8.

  • Chinese shoemakers ordered to pay New Balance $1.4 million

    Chinese shoemakers ordered to pay New Balance $1.4 million

    Three Chinese shoemakers have been ordered by a Chinese court to pay US sportswear company New Balance US$1.5 million in damages and legal costs for infringing its logo.

    It is believed to be the largest trademark infringement award ever granted to a foreign business in China.

    Suzhou Intermediate People’s Court, near Shanghai, ruled that the three defendants, who made shoes under the brand New Boom, “seized market share from New Balance” and “drastically damaged the business reputation of New Balance”.

    Zheng Chaozhong, Xin Ping Heng Sporting Goods and Bo Si Da Ke Trading had relied on the “malice of free-riding”, says the ruling. Their actions had led to “confusion by a large number of consumers”.

    The decision can still be appealed.

    New Balance has also taken on such Chinese brands as New Barlun and New Bunren since it started selling shoes on the mainland in 1995, reports The New York Times.

    In April, a court in Hangzhou awarded New Balance $500,000 in damages after ruling that a company making New Bunren shoes infringed its trademark. The same month, the Suzhou court fined five companies for breaching an injunction prohibiting them from selling shoes with New Balance’s “N” logo.

    However, New Balance once tried to reclaim intellectual property from a man using its Chinese name and was itself fined $16 million. The amount was later reduced to about $700,000, and a further appeal will go before China’s Supreme Court.

    Regarding the aggressive protection of its trademarks, New Balance’s senior counsel for intellectual property, Daniel McKinnon, says that if the China marketplace can be thought of as a schoolyard, “New Balance wants to make it abundantly clear we are the wrong kid to pick on”.

  • China cloud computing market grew 54% in 2016

    China cloud computing market grew 54% in 2016

    China’s cloud service providers have been urged to beef up their security ecosystem in expectation of managed security services becoming a new growth area in the increasingly challenging area of security.

    IDC’s latest China Cloud Service Provider Security 2017 Vendor Assessment found that the nation’s public cloud computing market expanded 54% in 2016 from a year earlier as more enterprises started to deploy their business to the public cloud.

    However, recently enterprises are increasingly becoming the targets of hackers as the digital transformation boosts their digital asset value, making security a major concern for public cloud service tenants.

    Digital transformation has linked enterprises’ business security closely with IT security, resulting in a big increase in enterprises’ digital asset value. This has also attracted the interest of criminals and hackers, posing a huge threat to enterprises’ digital assets.

    In May 2017, the WannaCry blackmail virus once again sounded the alarm bell, attesting to the fact that a considerable number of enterprises urgently need to improve the security of their IT systems.

    As public cloud tenants generally lack the ability to build security in a cloud environment, therefore cloud service providers have an unshakable responsibility to safeguard their cloud tenants’ business security. Thus, cloud service providers are facing unprecedented security challenges.

    IT security systems must be built with the strong support and close supervision of the government. The Chinese government has elevated the importance of cyberspace security to the level of national security, though cloud service providers also bear an unprecedented level of responsibility when it comes to security.

    It is essential that cloud service providers play the role of managed security service provider (MSSP) to help their tenants build secure IT systems.

    For cloud tenants, the only way to foster their strengths, circumvent their weaknesses, and use the capabilities provided by cloud service providers to strengthen the security of their IT systems is to raise their own security awareness and forge in-depth cooperation with cloud service providers.

    It is widely known that the security capabilities offered by cloud service providers have much room for improvement. In order to learn from others’ strong points to bolster their own weak links and win tenants’ unanimous recognition of their security strength, cloud service providers must engage in in-depth cooperation and close collaboration with professional IT security vendors through security ecosystem building.

    Building a complete security ecosystem will provide more reliable technical support for cloud service providers and their tenants.

    “Implementation of the Cyberspace Security Law of the People’s Republic of China means that cloud service providers now bear even greater security responsibilities. Cloud security capability enhancement will become one of the important strategies for cloud service providers in the future,”  IDC China senior research manager James Wang said.

    “In addition, as enterprises generally lack security planning and building abilities, they will have an urgent need for managed security service in building next-generation security systems. Globally, the managed security service model has been widely accepted by enterprises, while China’s managed security service market is still in its early stages.”

    Drawing upon their sound security ecosystem and rich security experience, public cloud service providers in China can provide managed security services to their large number of cloud tenants. Consequently, cloud service providers will be most likely to become the best practitioners of managed security services.

    Since China set up the Central Leading Group for Network Affairs in 2014, the importance of cyberspace security has risen to the height of national strategy. Following the release of Cyberspace Security Law of the People’s Republic of China, the National Cyberspace Security Strategy and other related laws, regulations and policies in recent years, security and trustworthiness have become key to enterprise-level users’ IT system building.

    For important sectors and fields such as public communications, information services, energy, transportation, water conservancy, finance, public service and e-government, it is more important to ensure a secure and trustworthy key information infrastructure. As a result, enterprise security building standards in China feature distinctive Chinese characteristics.