Tag: China

  • Unicom launches trial of Nokia VSR

    Unicom launches trial of Nokia VSR

    China Unicom has launched a live trial of Nokia’s Virtualized Services Router for around 5,000 residential broadband subscribers.

    The trial in the province of Shandong involves the delivery of residential broadband over an agile network based on virtualized network functions.

    China Unicom is using Nokia VSR as a virtualized broadband network gateway (BNG) for residential subscriber management functions.

    The operator plans to migrate massive BNG services to the virtualized platform as part of an initiative to transform its metro server edge.

    China Unicom plans to extend the trial to other parts of the network over the next two years as it moves to the next phase of the trial, which will incorporate the delivery of IPTV services.

    “We are proud to be a part of China Unicom’s initiative to evolve its metro edge to a cloud-centric architecture,” Nokia head of IP routing and packet core Sri Reddy said.

    “The Nokia VSR provides delivery of broad and rich virtualized IP edge applications with superior performance and enhanced scalability. Upon completion of this network transformation project, China Unicom will ensure increased operational efficiency and deliver a superior customer experience for its subscribers.”

  • Burberry sales ‘lacklustre’ despite China boost

    Burberry sales ‘lacklustre’ despite China boost

    Strengthening sales in Mainland China and an “exceptional” UK performance helped UK luxury fashion retailer Burberry weather a weakening US market in its second half year.

    Same-store Burberry sales rose 3 per cent – a lesser rate than during the third quarter. The company said a recovering Mainland China market had driven growth in Asia-Pacific.

    Incoming CFO Julie Brown says UK Burberry sales soared 90 per cent during the second half year as US tourists took advantage of the weaker pound in the UK.

    But sales in its wholesale division fell by 13 per cent and licensing sales fell 38 per cent, although the latter was largely due to the company taking back control of its Japan business.

    While based in Great Britain, the bulk of Burberry’s turnover is abroad and Hong Kong and China comprise its largest market.

    Releasing its second half year sales figures, the company revised down its estimate of the sales boost from the weaker UK currency from an earlier projected £130 million to £115 million. And it warned shareholders to expect a £10 million hit in 2018.

    Charlotte Pearce, associate retail analyst with GlobalData, described the second half results as “lacklustre” following impressive third quarter figures.

    “Burberry’s international performance in the second half has proved disappointing, with declining sales in Korea and the US and a challenging market in the Middle East bringing down the brand’s overall performance.

    “However, its plan to invest in store refits will help to increase footfall, especially in areas such as Hong Kong, where trading has historically been much more positive.”

    She said Burberry’s strong digital performance, particularly via mobile, continues to drive growth for the luxury brand as it maintains its reputation as a digital innovator in the luxury market.

    “Burberry live-streamed its February catwalk show on Instagram, giving the brand a sense of accessibility and allowing the brand to engage with shoppers on a platform where many consumers are regularly active. Burberry’s investment in experiential retail, including its app which will be rolled out in English speaking countries from the first quarter, will resonate well with modern shoppers and enable it to promote new products.”

  • Thailand plans to build Bangkok-China-Hong Kong cable

    Thailand plans to build Bangkok-China-Hong Kong cable

    The Thai government is eager to build a new subsea cable linking China, Bangkok and Hong Kong, as part of the efforts to transform Thailand into Southeast Asia’s digital hub.

    The Digital Economy and Society ministry is drawing up a master plan for the cable project, and lso aims to attract foreign investors to the project.

    According to the report, the government is currently in the process of identifying a marine route for the planned cable system.

    Thai cabinet has approved a 5 billion baht ($145.5 million) investment in the system. The investment will be handled by state-owned operator CAT Telecom via the Neutral Gateway Network & Data Center project.

    Investment in the cable forms part of the government’s Thailand 4.0 strategy, which aims to transform the nation’s economy with a focus on digitally-enabled innovation and establish the nation as a digital hub for the wider region.

    As part of this project, the government is also investing in establishing Digital Park Thailand, a planned new digital business economic zone, and has just approved the establishment of he facility along the Eastern Economic Corridor.

  • Retail brands from China defying stereotype

    Retail brands from China defying stereotype

    When Chinese sportswear brand Li Ning set up shop in Singapore in 2009, it took one month to sell its first badminton racket.

    Former world No.1 shuttler Lin Dan may have endorsed the brand, but in the eyes of Singaporeans, one detail stood out: that it is a brand from China.

    “Initially, they doubted the quality of the product. My own kids told me they prefer Nike and Adidas as these brands were better,” said Mr Mahendar Kapoor, managing director of Sunlight Group, the sole distributor for Li Ning in Asia.

    Its retail shop at Ion Orchard, Li Ning’s first store outside of China, closed in 2014.

    But today, the firm distributes Li Ning products to close to 70 retailers here, and sells 3,000 to 4,000 rackets a month.

    6,500 China firms in Singapore

    Last year, there were some 6,500 firms from China in Singapore, almost twice the number in 2011. They are involved in various sectors, from construction and insurance to transport and food and beverage.

    Chinese construction firms started building up a presence here in the 1990s. Some of the notable contracts landed by them include a $100 million project to expand Nanyang Technological University’s teaching facilities, and a $705 million job to build the Universal Studios theme park on Sentosa.

    In recent years, a crop of restaurant chains from China have sprouted here, including the popular Sichuan hotpot chain Hai Di Lao. At least three opened last year: hotpot chain Spicy House in Riverside Point, Shi Miao Dao Yunnan Rice Noodles in VivoCity and Riverside Grilled Fish in Raffles City.

    Chinese firms have also made their presence felt on the road, with Mobike and Ofo bike-sharing firms entering the market early this year.

    In shopping malls, streetwear brand Hotwind and fashion label Urban Revivo set up stores in the past six months. Retail analysts expect more Chinese retailers to join the fray this year.

    Melissa Lin

    “Once people started using our products, they realised the quality is comparable with those from other parts of the world,” said Mr Kapoor.

    As more retail brands from China make their way here, they find themselves having to fight the perception that their products are of poorer quality – never mind that China has long been the factory of the world where products from iPhones to Uniqlo clothing are made. Some consumers worry, for instance, that Chinese brands lack a rigorous supervisory process.

    But Chinese retailers interviewed by The Sunday Times said they have quality control checks in place.

    Streetwear brand Hotwind opened at 313@Somerset last November, while fashion label Urban Revivo opened in Raffles City in January this year. These are their first stores outside of China.

    Hotwind vice-president White Wang recalled how a business associate from Singapore told him not to include Chinese characters in the shop’s signboard. But Mr Wang did, placing Hotwind’s English and Chinese names side by side.

    “He told me Singaporeans don’t think highly of Chinese brands,” said Mr Wang, who is from Shanghai. “But we are a Chinese brand, we can’t run away from this.”

    It is a prejudice that Hotwind, which sells clothing, shoes and accessories, aims to change by ensuring its products are of a high quality, said Mr Wang.

    “In China, we didn’t do much advertising but we now have over 900 stores. People find out about us mainly via word-of-mouth so it’s a testament to our quality,” he said. “I’m confident Hotwind will take off here once we open more shops.”

    He aims to have three to five stores here by the end of the year.

    Urban Revivo, which has more than 150 stores in China, said China-based production has changed “quite a lot” over the past 10 years. “People are surprised when they realise how the quality (of Chinese brands) has improved,” said its international marketing manager Federica Rubeo.

    “We’re proud of our Chinese heritage,” she added.

    Meanwhile, Chinese fashion retailer Yishion, which entered the Singapore market in 2013, now has nine outlets here. It has more than 8,000 outlets globally, including more than 7,000 in China.

    It sends all its manufactured garments to quality control laboratories in China to ensure they meet the required standard, before they are shipped to distributors worldwide.

    “Our quality is good, that’s why our prices are not low-end, but more of the mid-range,” said its general manager Raymond Shen, 33.

    Its clothing designs vary from market to market. In China, its customers are in their teens or 20s, but in Singapore, they tend to be middle-aged women, so the designs here tend to be more conservative, he said.

    Then there is lifestyle brand Miniso. Its founders are a Japanese and a Chinese, but it markets itself as a Japanese brand. “We consider ourselves to be more of a Japanese brand as our product design and product concept is from Japan while manufacturing is carried out in China,” said its assistant marketing manager June Ng.

    Miniso has more than 2,000 outlets globally, including more than 1,000 in China, 26 in Singapore and four in Japan.

    Student Jamaine Loo, 23, feels that China-made items are “inferior in terms of quality”. “Unless I’m buying something to use once and then throw away, I won’t buy something China-made, especially if the price isn’t cheap,” she said.

    But procurement executive Eileen Tan, 27, who bought a $15 pair of sunglasses from Hotwind, said it did not matter to her where a brand is from. “Nowadays, a lot of things are made in China anyway. As long as the quality of the item doesn’t look very cheap to me, it’s okay,” she said.

    Cushman & Wakefield Singapore research head Christine Li expects more Chinese brands to open here in the next 12 months.

    These brands are looking to expand overseas, as many are shunned by consumers in China who typically prefer Western brands, she said. And Singapore is an obvious choice, given its status as a gateway to the region.

    “Their brand presence in prime shopping centres here could be seen as an indicator of quality and prestige, which will make it easier for Chinese brands to expand in domestic and international markets in future,” said Ms Li.

    Both Hotwind and Urban Revivo said they intend to use Singapore as a springboard to other South-east Asian nations such as Malaysia, Thailand and Indonesia. Hotwind is opening a store in Kuala Lumpur next month.

    Hotwind’s Mr Wang said: “Having a shop in Singapore increases our brand value in the eyes of consumers.”

  • China’s new cross-border e-commerce rules explained

    China’s new cross-border e-commerce rules explained

    The Chinese government has issued updated guidance on rules for cross-border e-commerce in the world’s second-largest economy, giving stakeholders much-needed clarity on potential changes in policy that have hung over the sector for the past year.

    China’s Ministry of Commerce said in a statement on March 17 that overseas goods purchased online and distributed through bonded warehouses would continue to receive some preferential treatment, avoiding quarantine and quality checks that could have brought the import of many popular foreign products to a halt.

    “We believe this policy move injects confidence into China’s [cross-border e-commerce] industry as it demonstrates the authorities’ determination to provide regulatory clarity and spur growth for the industry,” Fung Global Retail & Technology MD Deborah Weinswig said in an email.

    Dennis Zhang, CEO of Los Angeles-based e-commerce service provider Voyage One, agreed, saying, “It gives everybody, including our clients, peace of mind to let them know that this is something the Chinese government continues to support.”

    Pilot program refined

    Last April, Beijing announced changes to a pilot program meant to bolster Chinese consumers’ ability to buy online directly from overseas merchants via cross-border e-commerce. At the centre of the program are bonded warehouses, where international brands shipped merchandise for sale to Chinese consumers without being subject to normal import duties or rules for quarantine and quality checks on goods such as food, cosmetics and health supplements. The proposed changes would have increased the tariffs paid on that merchandise and removed the preferential regulatory treatment. This caused significant upset among international brands because some of the most popular foreign goods purchased online – the food, health supplements and cosmetics – are also the most tightly regulated by Chinese authorities.

    According to reports, cross-border e-commerce orders plummeted as much as 60 per cent in major trading hubs such as Shenzhen, Zhengzhou, Ningbo and Hangzhou a week after the announcement. A month later, apparently in response to industry concerns, regulators said they would suspend the rollout of the new quarantine and quality check restrictions until the end of this year while leaving in place the higher import tax. In its March 17 announcement, regulators extended that suspension indefinitely, saying that all goods shipped through bonded warehouses would be considered “personal items” and therefore exempt from the stricter regulations.

    The government said it might issue further guidance on cross-border e-commerce before the current rules are formalised on January 1, but the announcement at least gives stakeholders a longer runway with which to prepare for any potential changes.

    “Everything is pretty much business as usual for the rest of this year,” said Ron Wardle, the Shanghai-based China CEO of Export Now, a company that helps retailers sell online in China.

    For Alibaba, by far China’s largest e-commerce player, the news means that the online purchase of overseas goods will continue unabated, with marketing research firm eMarketer predicting the sector will reach $157.7 billion by 2020 from about $86 billion last year.

    Pumping water into pools to raise fish

    Cheng Ouyang, a director at Alibaba’s Cross-Border E-Commerce Research Center, called the announcement a “positive signal” for the sector. Using a popular Chinese idiom to describe the new announcement, Ouyang said the government was “pumping water into pools to raise fish,” which means that Beijing is allowing space for cross-border e-commerce to grow. At the same time, the government will continue to fine-tune its regulations for the sector, while stakeholders are able to take advantage of a burgeoning sales channel for foreign goods.

    Part of the ministry’s announcement also included the addition of five more pilot zones, or testing areas for bonded warehouses, in Dalian, Hefei, Chengdu, Qingdao and Suzhou, bringing the total number to 15. Wardle said the additional zones would allow for faster delivery and reduced shipping costs, “which is great for consumers”.

    Alibaba’s logistics affiliate Cainiao Network said it welcomed the news. “We already have a strong network and will work closely with our partners in the newly announced pilot zones to continuously provide seamless cross-border logistics service and better serve both merchants and consumers,” said James Zhao, director of import logistics at Cainiao.

    While the government’s statement has lent stability to the sector for the moment, Fung Global’s Weinswig said there was still no guarantee about what updates to the policy may look like if they are indeed issued later this year.

    “There are still some unanswered questions,” she said. “Will there be some imports that do not fall within personal items? Is registration for imports required which would slow down [cross-border e-commerce] imports?”

    Wardle, meanwhile, expects that any updates to policy will be a hybrid of those already in place along with recommendations from major players in cross-border e-commerce, such as Alibaba’s cross-border shopping site Tmall Global. Any such model “would benefit both consumers and brands,” he said.

    Whatever the changes, Wardle said he doubts that regulators will backtrack on the progress that has been made in China’s cross-border e-commerce sector. Stakeholders have already made significant investments in infrastructure and resources, while consumers have come to expect access to foreign goods they can’t otherwise get.

    “The floodgates are already open,” he said. “That’s going to be hard to pull everything back.”

  • Prada sales slip 10 per cent to US$3.3 billion

    Prada sales slip 10 per cent to US$3.3 billion

    Sales for luxury group Prada slipped 10.4 per cent for its fiscal year to January 31 to reach €3.1 billion (US$3.3 billion).

    The result is disappointing coming just 24 hours after LVMH reported a 15 per cent increase in sales across its multitude of brands in the latest quarter, albeit that Prada’s figures are for a full year.

    Royalties rose by 3.1 per cent to €44.8 million compared with the previous 12 months, and pre-tax earnings reached €431.2 million, or 13.5 per cent on net revenues. The group’s net income was €278.3 million.

    Prada says it was a challenging 12 months as it made concrete plans for brand development and launched an overhaul of its main processes. This transition phase coincides with the completion of a long-term plan for geographical expansion of its retail network and a bid to achieve an innovative form of integration with the digital universe.

    “The business climate was mired in uncertainty because of ongoing geopolitical tensions of
    global impact, as well as new events that have suddenly changed economic balances around the world,” says the Hong Kong-listed group.

    Meanwhile, stabilisation of some currency trends paved the way for a recovery in domestic consumption, as in China and Russia, although growth in these markets has not yet compensated for the drop in cross-border tourism.

    New designs

    Against this backdrop, the group says it took the initiative on several fronts, starting as always from the development of innovative products. Items were designed for Prada and Miu Miu in every category, particularly leather goods, including iconic handbags and special editions.

    The group also focussed on store renovation with a massive restyling program to create more intimate, exclusive environments, updated to meet new aesthetic guidelines for Prada and Miu Miu.

    During the year the group also made industrial changes under a three-year plan adopted in 2015, which aims to strengthen control over the production process by insourcing “some of the most delicate phases”. These investments are aimed to help preserve the craftsmanship at the heart of the group’s business model, while underscoring its ties to the Italian community and the sustainability of its manufacturing cycle.

    Based in Milan, Prada works with the Prada, Miu Miu, Church’s and Car Shoe brands in the design, production and distribution of luxury handbags, leather goods, footwear, apparel and accessories. The group also works in the eyewear and fragrance industries under specific licensing agreements. Its products are sold in 70 countries through a network including 620 directly run stores and select luxury department stores, independent retailers and franchise stores.

  • Vietnam beats China, South Africa in new healthcare ranking

    Vietnam beats China, South Africa in new healthcare ranking

    “Vietnam did very well in the study,” said Darrell West, one of the authors of the report.

    The country got the best performance in health system, scoring 19 out of 20, surpassing China and far distancing itself from Southeast Asian peer Indonesia. Nurses and midwives as well as physicians were the contributors to this high score.

    Its weaknesses are in the government’s health management capacity and infrastructure.

    Healthcare investment in Vietnam mostly comes from the public sector. To attract greater private sector investment, the country should improve transparency, make policy reforms and undertake regulatory reviews designed, the report said.

    Vietnam has a growing population, which requires better and more effective health services.

    West recommended Vietnamese leaders seek to improve its medical facilities, diagnostic systems and medical service delivery systems. These kinds of improvements will build confidence among private investors and create a climate where investors feel their financing will yield benefits.

    Vietnam’s high position in this ranking may come as a surprise for many, considering the amount of criticism directed at the healthcare system over the years. But the ranking does not simply reflect the current state, but looks at the potential of improvement brought by research and development.

  • Winter sports theme for Beijing’s Phase 3C mall

    Winter sports theme for Beijing’s Phase 3C mall

    An undulating sledding path will loop around the roof garden of Beijing’s planned Phase 3C mall, which also has an Olympic-sized ice-skating rink at its heart.

    A layer of fake snow will be added to the rooftop track in winter for sledding.

    Designed by Hong Kong-based American architect Andrew Bromberg of Aedas, the Phase 3C building is part of the China World Trade Center complex in Chaoyang, the city’s CBD. It is the fifth and final stage of a 30-year master plan that comprises 14 buildings.

    Phase 3C mall Beijing 1

    Bromberg’s building features a continuous loop that mimics the road, wrapping an elliptical volume at the centre with a roof garden called the Civic Green, reports Dezeen. The garden is set on three stepped levels and surrounded by a pathway that dips down to the entrance on one side.

    Cherry blossom and pine trees will be planted along the walkway, and the upper floors of the building surrounding the green will stagger backward to create terraces with seating areas and trees.

    In the centre of the building, the ice-skating rink will be surrounded by a loop of shops and cafes. There will also be art studios, exhibition spaces, an organic farm, cultural and educational amenities, and a rock-climbing wall.

    Earlier this year, the Phase 3C was awarded Best Future Project at the MIPIM Awards, an annual real-estate event in Cannes.

    You can see more images of the mall on Dezeen here.

  • ZTE back to black for the first quarter

    ZTE back to black for the first quarter

    After reporting a loss for 2016, ZTE swung back to a 1.21 billion yuan ($175.6 million) profit for the first three months of 2017 – a year-on-year increase of 27.8%.

    The vendor reported a 17.8% increase in revenue for the quarter to 25.75 billion, due to strong momentum across its networking and smartphone businesses.

    ZTE announced that its Pre5G products have now been deployed in over 40 networks in 30 countries. The company is on track to begin 5G pre-commercial deployments in the third quarter of 2018, with full commercial deployment starting in 2019.

    On the wireline front, ZTE said it is sustaining its momentum as one of the industry leaders in the PON segment.

    The company meanwhile reported more than 25% growth in shipments of set-top-boxes within its Big Video business, and a 70% growth in shipments for its self-developed NB IoT chipsets.

    ZTE swung to a 2.36 billion yuan ($34.3 million) net loss for 2016 as a result of its $829.3 million settlement deal with the US Department of Commerce over the company’s alleged sale of telecommunications equipment using US components to Iran, in violation of trade sanctions.

    At the time, ZTE CEO Dr Zhao Xianming said the company “acknowledges the mistakes it made, takes responsibility for them, and remains committed to positive change in the company.”

  • Kerry Logistics starts UK-China rail service

    Kerry Logistics starts UK-China rail service

    Kerry Logistics Network participated in the commencement ceremony of the first eastbound freight train from London to Yiwu with the support of a long-standing customer for this service. The project is not only a significant step forward in the Group’s development strategy in line with the ‘One Belt One Road’ Initiative, but also a strategic move advancing the Group’s further expansion into the rail freight and multimodal services.

    The train, which departed on 10 April 2017 from London, is scheduled to arrive eastern China’s Yiwu in around 18 days. The 7,500-mile journey will pass through nine countries, including France, Belgium, Germany, Poland, Belarus, Russia and Kazakhstan. The freight cost is lower than that of air and ocean freight, while it is twice as fast as ocean transport.

    In August 2016, Kerry Logistics delivered a rail freight shipment of over 80 containers from Yiwu to Madrid, Spain, passing through eight countries in 19 days.

    London is the 15th European city and the latest destination added to the China-Europe rail network under the Belt and Road Initiative. The first freight train from Yiwu to London launched on 1 January 2017 took 18 days. It was mainly for carrying clothes, shoes and other consumer goods made in China.

    William Ma, group managing director of Kerry Logistics, said, “We are extremely excited to be the first Asia-based global 3PL to move eastbound freight from Europe along the One Belt One Road trade route, turning part of the roadmap into reality. We are committed to developing an overland transportation network for road, rail and multimodal freight services in China to Central Asia and Europe. We will leverage our global international freight forwarding network to provide end-to-end and cost-effective logistics solutions to connect China with Europe and Asia via air, road, rail and sea.”

    Kerry Logistics will continue to develop under the Belt and Road Initiative to create new form of transportation models, offering more options to customers across various industry segments.

  • Tianjin FAW Xiali Auto expects Q1 net loss to widen

    Tianjin FAW Xiali Auto expects Q1 net loss to widen

    Tianjin Faw Xiali Automobile Says it expects Q1 net loss to widen to 240-290 million yuan from 166.9 million yuan ($24.24 million) year ago.

  • Link REIT buys Guangzhou mall

    Link REIT buys Guangzhou mall

    Link REIT has bought a shopping mall in Guangzhou for RMB4.065 billion (HK$4.57 billion; US$588.4 million).

    The property, Metropolitan Plaza, is located at No. 8 Huangsha Road in Liwan District. It comprises retail space from basement level one to the third floor and two levels of parking.

    Its gross lettable area is about 85,732 sqm.

    Link REIT said in a stock exchange filing the acquisition was in line with its investment strategy to invest in income-producing real estate which has potential for long-term income and capital growth and to build a large and diversified portfolio of retail and/or commercial real estate in Hong Kong and in Tier-1 cities of the PRC.

    “Guangzhou (being such a Tier-1 city) is mature and the disposable income of Guangzhou residents has been rising. The property will add to Link’s portfolio of investments in Tier-1 cities of the PRC along with its shopping mall in Beijing and an office/retail property in Shanghai.”

    As at February 28, there were 219 tenancies at the property, occupying approximately 94.1 per cent of the total gross lettable area.

    The monthly gross income of the property (excluding management fees) was approximately

    RMB16.06 million. Food & beverage, fashion/accessories and kids/education account for, respectively, 33.4 per cent, 24.7 per cent and 13.7per cent of the total leased retail area.

    Link REIT said Liwan District is one of the most popular mass market shopping and leisure destinations in the city.

    It is also one of the most densely populated districts of Guangzhou, with a population of approximately 930,000 as of 2016. The property is strategically located on top of the intersection of Metro Lines 1 & 6 among the busiest Metro Lines in Guangzhou, with direct access to the station concourse.

    The Guangzhou mall opened for business in 2012.

  • Strong first quarter for Yum China

    Strong first quarter for Yum China

    Sales, profits and margins all grew, along with store expansion, for Yum China Holdings in its unaudited results for its first quarter to the end of February.

    Same-store sales grew 1 per cent, including growth of 1 per cent at KFC and 2 per cent at Pizza Hut Casual Dining. Total system sales grew 4 per cent (3 per cent at KFC and 9 per cent at Pizza Hut).

    The group opened 133 restaurants during the quarter.

    Total restaurant margin increased 3.7 points to 23 per cent, mainly helped by retail tax structure reform implemented on May 1.

    Operating profit grew 22 per cent and 27 per cent excluding foreign exchange, which negatively impacted operating profit by $12 million.

    Net income increased 21 per cent to $175 million, while adjusted pre-tax earnings rose 14 per cent to $320 million.
    Yum China has more than 7600 restaurants, with a two-to-one lead over the nearest Western quick-service restaurant competitor and an approximate six-to-one lead over the nearest Western casual-dining restaurant competitor in China, says CEO Micky Pant.

    “We are especially gratified with the progress made on two key drivers of growth – digital and delivery,” he says. “More than 4400 restaurants in our system offer deliveries, and we believe we have established an infrastructure for continued growth.

    “In the first quarter, delivery represented about 12 per cent of our company sales. With about 93 million loyalty program members between KFC and Pizza Hut Casual Dining, we believe we have unprecedented insights into consumer behaviour and have been engaging with them across the digital eco-system: from pre-order to payment.

    “We remain confident in our ability to deliver 550 to 600 new builds while delivering double-digit growth in operating profit, excluding foreign exchange, this year.”

    Members in the loyalty programs increased to about 70 million for KFC and 23 million for Pizza Hut.
    Mobile payments reached about 30 per cent of company sales, with more than $500 million in sales paid via cashless payment methods.

  • Chow Tai Fook Shows Long-Awaited Sales Gains

    Chow Tai Fook Shows Long-Awaited Sales Gains

    Chow Tai Fook saw positive retail sales growth in the fiscal fourth quarter, ending a long run of declines at the Hong Kong-based jeweler. Retail sales in mainland China increased 16%, with same-store sales rising 12% during the three months that ended March 31, the company reported Wednesday. Overall retail sales in Hong Kong and Macau grew 1%, and same-store sales rose 4% — the first quarterly increase in three years in Hong Kong and Macaua, Chow Tai Fook said.

    Driving this growth were sales of gold products – up 17% in mainland China and 19% in Hong Kong and Macau – as the jeweler benefited from a 3% rise in gold prices and a higher average weight per gold product sold. Gem-set jewelry sales rose 5% in mainland China, but fell 17% in the municipalities due to a decline in the average selling price: The company had sold a number of big-ticket items in Hong Kong the previous year that it was unable to match during the reporting period, management explained.

    Chow Tai Fook’s ecommerce sales spiked 85% in mainland China, strengthened by its cooperation with existing online platform partners.

    The company, considered the largest jeweler in the Asia Pacific region, operated 2,381 points of sale at the end of March, of which 2,129 were jewelry locations in mainland China. It opened six jewelry points of sale in China and closed two watch locations during the quarter.

  • Qualcomm, Apple go to war over licensing

    Qualcomm, Apple go to war over licensing

    Qualcomm and Apple will battle it out in court over patent licensing for technology used in the iPhone, with both filing suit against the other.

    Apple recently filed three lawsuits against Qualcomm, in the US, China and the UK, accusing the chipmaker of abusing its dominant market position to force Apple to pay billions in superfluous royalty payments for components that have nothing to do with Qualcomm baseband processors.

    These components include Touch ID and Apple Pay. The US lawsuit is seeking $1 billion in damages, while the lawsuit in China is seeking $145 million.

    Now Qualcomm is hitting back, filing an answer to Apple’s lawsuit as well as a counterclaim accusing Apple of failing to engage in good-faith negotiations regarding Qualcomm’s 3G and 4G standards-essential patents on fair, reasonable and non-discriminatory (FRAND) terms.

    Qualcomm has also accused Apple of breaching agreements and negotiations with the company, interfering with Qualcomm’s agreements with licensees that manufacture iPhones and iPads for Apple and encouraging “regulatory attacks” on Qualcomm’s business by making false claims.

    Apple also allegedly deliberately chose not to utilize the full performance of Qualcomm chips in the iPhone 7 to misrepresent the performance disparity between iPhones using Qualcomm’s modems and those using competitor-supplied modems, and threatened Qualcomm in an attempt to prevent it from making public comparisons about the relative performance of iPhones.

    “Over the last ten years, Apple has played a significant role in bringing the benefits of mobile technology to consumers with its popular products and services. But Apple could not have built the incredible iPhone franchise that has made it the most profitable company in the world, capturing over 90% of smartphone profits, without relying upon Qualcomm’s fundamental cellular technologies,” Qualcomm EVP and general counsel Don Rosenberg commented.

    “Now, after a decade of historic growth, Apple refuses to acknowledge the well established and continuing value of those technologies. It has launched a global attack on Qualcomm and is attempting to use its enormous market power to coerce unfair and unreasonable license terms from Qualcomm.”