Tag: China

  • CapitaLand Mall Asia Showtime in Cannes

    CapitaLand Mall Asia Showtime in Cannes

    Targeting global retailers who are looking to Asia to chart growth, CapitaLand Mall Asia has its biggest presence ever at international retail event Mapic in Cannes, France.

    It is the fifth consecutive year CapitaLand has exhibited at Mapic, one of the world’s largest events matching developers with retailers. It runs over three days this week.

    Crowds at CapitaLand's booth at MAPIC

    CapitaLand is preparing to open eight malls in three Asian countries next year with a combined retail gross floor area (GFA) of nearly 1 million sqm, the group’s largest-ever retail offering in a single year.

    Of the eight malls, six are retail components of integrated developments in China and the others are stand-alone malls in India and Malaysia. They are Raffles City Changning, CapitaLand’s second Raffles City project in Shanghai; LuOne, also in Shanghai; Raffles City Shenzhen; Raffles City Hangzhou; Suzhou Center Mall (pictured); CapitaMall Westgate in Wuhan; Melawati Mall in Kuala Lumpur; and Forum Mall in Mysore.

    Raffles City Changning

    Raffles City Changning

     

    Ready catchments

    CapitaLand Mall Asia CEO Jason Leow says the opening of the malls underscores the group’s strength in connecting retailers to ready catchments of shoppers.

    At September 30, 76 per cent of CapitaLand’s assets contributed to recurring income, of which shopping malls and integrated developments form the bulk, says Leow.

    “Our 103 malls in Singapore, China, India, Japan and Malaysia provide brands with access to about 3 billion consumers in these five markets combined.”

    He says Mapic is an excellent platform for CapitaLand to boost its brand visibility and strengthen its retailer network.

    Mr Jason Leow with retailers at MAPIC

    Its presence at the trade show has been enhanced by one of its joint ventures being nominated for the Mapic Awards. Listed for Best Futura Shopping Centre Award, Jewel Changi Airport was developed by Jewel Changi Airport Trustee – a JV between Changi Airport Group and CapitaLand Mall Asia – as a mixed-use complex featuring lifestyle offerings including a five-storey indoor garden, play attractions, shopping and dining options, a hotel, and airport services.

    It is scheduled to open next year. The Futura award recognises retail developments with outstanding architectural qualities and strong, original concepts.

    Jewel Changi Airport is the only Singapore entry among 50 projects shortlisted across 12 categories at the Mapic Awards, with the results to be announced at a gala dinner.

    CapitaLand Mall Asia CapitaLand Mall Asia, a wholly owned subsidiary of real-estate company CapitaLand, is one of the largest shopping mall developers, owners and managers in Asia by total property value of assets and geographic reach.

  • China’s personal shoppers are cashing in

    China’s personal shoppers are cashing in

    Julie Li is laden with Harrods carrier bags full of cosmetics, but they are not hers; the 30-year-old finance graduate from Beijing is a fulltime freelance retail consultant, something known in China as a daigou.

    “I worked as a daigou alongside my day job for about three years, but six months ago, I decided to quit my job to fully concentrate on the business because the profit margin is lucrative and the hours are more flexible,” said Li, who asked to be known by a pseudonym.

    Dressed in a fashionable white Reiss dress and holding a light color Chanel leather handbag, Li is glued to her smartphone. She is using the messaging app Wechat to communicate with clients in China who are willing to pay a premium for authentic luxury goods that are usually relatively cheaper than they are in China.

    Having developed three major wholesale clients, each with around 300 customers, Li buys 10,000 pounds’ worth of top-end lipsticks on behalf of clients every day.

    “The weak pound after Brexit is also giving a boost to my business and sales have doubled in recent months,” Li said.

    Charging 5 percent of the retail price and handling large quantities on a daily basis, she is able to pocket as much as 20,000 pounds in commission during a good month.

    “My clients are usually middle-incomers in China who have a strong appetite for high-quality products,” she said. “I believe the quality standards, the product ranges and the cheaper prices are the main reasons why Chinese consumers look to the West.”

    Li said a high-end daigou has to know about products, prices, colors, range, and availability.

    Experts say the agents have challenges because customers need to be convinced the goods they receive are genuine and that suppliers are reliable.

    “An important issue is the uncertainty faced by consumers who wonder whether products are genuine because, the higher the demand for a product, the more there is a chance it will be a fake or an adulterated product,” said Pervez Ghauri, professor of international business at Birmingham Business School.

    The buyers are mainly from the Chinese mainland and specialize in helping customers in China buy luxury products, including bags and cosmetics, as well as health supplements, such as baby milk formula.

    Business has boomed in recent years, accounting for RMB 34 billion to RMB 50 billion ($5 billion to $7.4 billion) in global sales last year, according to a report from consultants Bain & Company.

    In 2008, the baby milk scandal, in which Chinese milk and infant formula was contaminated with melamine, led to many Chinese parents shopping overseas for milk formula. At the height of the boom in demand for milk formula, retailers in the UK rationed the sale of powdered baby milk to ensure availability for domestic parents.

    Observers note that safety standards are one of the reasons why some Chinese consumers buy Western products.

    Geoffrey Wood, dean of the Essex Business School, said many Chinese consumers believe Western countries have more rigorous production standards, and the will to enforce rules ensuring quality.

    Seizing the opportunity presented by the baby milk scandal, 29-year-old Jimmy Zhen-not his real name-began buying milk powder for his Chinese customers in 2009 while working a fulltime job.

    “In the beginning, I only shopped for family and friends who knew I was abroad and felt the authenticity of the products was assured. Through word of mouth, I developed a large customer base, and built trust with my clients,” he said. After demand rose, he became a fulltime shopper in 2011.

    A restriction brought in by the UK government in 2013 to cap the sales of milk formula at two cans per customer stacked the deck against Zhen’s business, but he managed to find a way out by paying students 50 pence above the retail price for every can they sold him. He currently ships more than 8,000 tins each month.

    Earlier this year, the Chinese authorities tightened regulations around cross-border online shopping. Commentators say the changes, to Chinese customs regulations and ecommerce has dented the daigou’s trade, but Zhen has adjusted by shipping four cans at a time instead of six. It ensures he avoids paying import tax.

    Daigou shoppers admit their industry exists in a grey zone legally and is likely to be short-lived, but Li is cashing in for as long as she is able.

  • Instant noodles sales slumps in China

    Instant noodles sales slumps in China

    Instant noodles, once an easy meal for millions of Chinese workers, is getting less popular. Workers scrapping instant noodles are seen as a symbol of the chaining lifestyle of the working class. The sales of instant noodles fell 12.5 percent last year. The King of noodles in China, Taiwanese Tingyi, known for its brand Master Kong (Kong Shifu), was evicted from the Hang Seng Index on the Stock Exchange of Hong Kong in September. Its profits declined by 60 percent last year. According to Bloomberg, this is a classic example of the economic and demographic transition in China.

    Between 2003 and 2008, the instant noodle market has exploded in China, from $ 35 billion to 59 billion yuan ($ 4.7 billion to EUR 7.9 billion). At the time, Chinese growth exceeded 10% of the average (14.2% in 2007). The industry flourished with the boom of construction, heavy industry, and the low-end factories, which needed cheap labor. The coast provinces attracted millions of migrant workers, who relied on these convenient meals.

    Unfortunately for the noodle industry, China has developed. Today, the 25 cents noodle is less exciting. Because of the policy of one-child, the Chinese population of working age began to decline in 2010. And by 2015, for the first time in 30 years, the population of migrants has declined, after having exceeded 250 million.

  • Grand Opening of the Second “Lukfook Jewellery” Shop in New York

    Grand Opening of the Second “Lukfook Jewellery” Shop in New York

    Luk Fook Holdings is pleased to announce that the Group opens its new retail shop in New York City. Located on first floor, New World Mall in Flushing, this new shop is the Group’s second retail shop in New York City after opening its first shop in Manhattan. To mark this occasion, the Group hosted a grand ribbon-cutting ceremony on 29 October. Officiating guests including Ms. Toby Ann Stavisky, the New York State Senator, Ms. Grace Meng, U.S. Congresswoman and Ms. Pauline Yeung, co-founder of the Group and winner of Miss Hong Kong Pageant, witnessed this significant moment together with many other guests.

    Mr. Wong Wai Sheung, Chairman and Chief Executive of the Group said, “Adhering to our corporate vision of “Brand of Hong Kong, Sparkling the World”, we have been actively expanding our retail network globally. Currently, the Group has over 1,460 shops in eight countries and regions. With the opening of the second shop in New York, the Group anticipates to further penetrate into the Chinese communities in the overseas market. We will continue to pursue high quality and innovation to enhance our brand competitiveness, and endeavour to provide quality jewellery products and professional services to customers all over the world, in order to build Lukfook as a premier jewellery brand for customers.”

    The Group has tapped into the North American market since 2003 and opened shops in Canada and the United States, laying the foundation for further overseas expansion. The new shop is located in New World Mall, which is one of the largest indoor Asian malls in the northeastern region of the United States. The mall features over 100 shops, offering jewellery, clothing, cosmetics, electronics, world cuisine and many more. With convenient location and easy accessibility, New World Mall is a popular shopping and entertainment hotspot for the Chinese in Flushing and Queens.

    Address: Space Nos. 112 – 116, First Floor, New World Mall, 136-20 Roosevelt Avenue, Flushing, New York, NY 11354, USA

  • Korea’s Eland Aims At Ten Shopping Centers In China In 2016

    Korea’s Eland Aims At Ten Shopping Centers In China In 2016

    South Korean apparel brand Eland plans to develop ten shopping centers in China before the end of 2016. Eland started tapping the shopping center market in China from January 2016. By cooperating with Parkson, the company aims to transfer traditional department stores into city outlets. For the next step, Eland will cooperate with other department stores and shopping malls in China, aiming to open ten shopping centers in this marketplace before the end of 2016. For the year 2017, the company aims to have over 30 outlets and by 2020, they aim at 500 outlets and sales scale of CNY200 billion.

    Eland Group has 56 Newcore Outlets in South Korea. The company plans to bring its successful operating model and experience into China and transfer traditional department stores into city outlets to attract young consumers.

    At present, Eland has opened two shopping centers in China, one cooperating with Parkson in Shanghai and the other cooperating with Hualian in Chengdu. In addition, Parkson previously closed a store in Nanchang in September 2016 and said they will team with Eland Group to implement transformation and upgrades for the store.

  • Chinese mall opens ‘nursery’ room for husbands

    Chinese mall opens ‘nursery’ room for husbands

    A new mall in Shanghai has set aside a space for what it is calling a ‘husbands nursery’, where it hopes bored spouses will hang out while their wives are shopping in the mall, China Central Television (CCTV) reported.

    This ‘husbands nursery’, on the third floor of a shopping mall in Shanghai which opened on October 30, “is equipped with multiple leisure facilities, including magazines in its reading area, and a television,” supposedly for men to relax, CCTV said. But what those running the mall may not know is that Chinese men – the mainland’s biggest online shoppers – will likely be racking up credit card debt sitting in the ‘husbands nursery’ and splurging on themselves.

    “Mainland men are more likely to splurge on themselves when making purchases over the internet than women – who focus more on buying daily necessities,” according to a May 2016 survey.

    The survey was conducted by Ant Financial Services, an affiliate of the Alibaba Group that owns the South China Morning Post. Its findings are contrary to popular perception that it is women who go on shopping sprees, buying cosmetics and clothes. And, the study also found that women are buying more daily household necessities, while men are splurging on personal-care products and leisure goods.

    “Male online shoppers prove to be more hedonistic and the level of online spending by men is higher than women,” Ant Financial said in its report published in May.

    The survey said that women still bought a greater number of goods and services on the internet, but that they were buying more daily necessities for household use. Men’s online spending on entertainment, sports, dining and travel was 26 percent higher than the spending of women, and that women’s online purchases were aimed at running more efficient households.

    Ant Financial conducted the survey in partnership with the China Academy of New Supply Side Economics. The survey was based on data collected by Alipay, China’s online payment giant operated by Ant Financial, which has 450 million users.

  • Zhouheiya fast food chain to list in Hong Kong

    Zhouheiya fast food chain to list in Hong Kong

    The initial public offering of Zhouheiya, a Hubei province-based fast food chain known for its spicy-braised duck neck and other ready-to-eat snacks, opened for subscription in Hong Kong, looking to raise up to HK$3.3 billion ($425.7 million).

    The braised food producer and retailer, scheduled to make its trading debut on Nov 11, will sell 424 million shares at an indicative range between HK$5.8 and HK$7.8 apiece.

    Founded in 2002 in Wuhan, Hubei province, Zhouheiya beefed up its business footprint in 38 cities across 12 mainland provinces with 715 self-operated retail stores.

    Executive Director Hao Lixiao told a news conference in Hong Kong on Monday that the company is always looking to expand into the Hong Kong and Macao markets. However, he didn’t reveal a detailed timeline, adding that the firm still deals with the local licenses, not to mention that product research and the buildup of sales networks also takes time.

    Zhouheiya’s Hong Kong IPO highlighted an industrywide trend of mainland duck-food manufacturers floating public shares. Competitors like Jiangxi Huangshanghuang Group listed in Shenzhen back in 2012, while Hunan Juewei has been stuck for more than two years in the Chinese mainland’s clogged pipeline of IPOs.

    “Such a trend indicates that growth of mainland duck-food chains has somewhat run into a bottleneck which pushes them to raise capital via public listings as a growth booster,” said Zhu Danpeng, a researcher at the China Brand Research Institute.

    With rival Hunan Juewei being trapped in a big logjam of mainland IPO filings, Zhouheiya’s decision to join in a cluster of mainland food companies floating in Hong Kong appears to be a time-saving move.

    Choosing Hong Kong as a listing destination helps companies jump the long IPO queue in the Chinese mainland, but low valuation in the Asia’s financial hub remains a sure thing. In particular, Hong Kong investors still view food stocks listed there as generally expensive options, which may explain why some believe shares of Zhouheiya are priced a bit too high, said Hannah Li, a Hong Kong-based strategist with UOB Kay Hian.The IPO logjam that has long beset mainland catering companies accessing mainland capital markets was spotlighted when high- and mid-end restaurant chain Xiao Nan Guo Restaurants Holdings, and hotpot chain Xiabu Xiabu turned to Hong Kong to list in 2014.

  • Chinese firm plans to process re-fresh cod products for Shanghai retail

    Chinese firm plans to process re-fresh cod products for Shanghai retail

    Beiyang Jiamei Seafood, a Chinese processor switching its business from exports to imports, plans to expand into re-fresh products for the domestic market.

    The company, which is based in Qingdao, hopes to start processing re-fresh, packaged cod products for retail in Shanghai early next year, said Peng Song, its general manager.

    “We have in mind selling re-fresh cod and redfish. I think cod, both Atlantic and Pacific, can be very big in the Chinese market,” he told.

    If this model works, it could then be applied in other Chinese cities, he said. “I think we would be the first company in China to do this,” he said, during the China Fisheries & Seafood Expo.

    The company is also starting to sell frozen cod products into Chinese retail, wholesale and foodservice.

    “For the big, longline Pacific cod, we cut it into steaks. For the Atlantic cod, we make loins, portions and J-cuts,” he said. “I do think this item will boom in China, in a very short time.”

    Chinese in coastal cites do eat Pacific cod, he said, as the same species that is caught by Russians and American vessels is also in Chinese waters.

    But, the species is not sold as “cod” and consumers are unfamiliar. “The catching is inconsistent, so people do not like to promote it. The species may not be new, but to name it Pacific cod, Atlantic cod, that is new,” he said.

    The company is also putting the Marine Stewardship Council (MSC) logo on its cod retail bags.

    “We now have most of our products MSC approved. I think that is the future,” said Song.

    “The MSC is also fully traceable, from catch-to-plate. That is a powerful message for the Chinese consumer, who is worried about food safety,” he said.

    Promoting the traceability angle of the MSC logo is the best way to expand in the China market, he said, due to the concerns over food safety in China.

    Shift to domestic sales

    Beiyang Jiamei now generates around $35 million from domestic sales, as well as the same amount from re-processing and exporting.

    For the re-processing business, cod, haddock and arrowtooth flounder are the main species, he said.

    The company only started doing domestic sales in 2011. Beiyang Jiamei is selling into wholesale, into retail and foodservice, and also via online stores on JD.com and Tmall.

    Beiyang Jiamei’s main brand is “Sea Mix”, but it also has another for families, “Dinosaurs”. Also, the company is launching a high-end brand, “Prime Catch”, for crab and other more expensive items.

    A big focus of the domestic business, including e-commerce, is coldwater shrimp. Beiyang Jiamei imports around 5,000 metric tons of coldwater shrimp a year.

    Due to the quota cuts for coldwater shrimp in Canada, the company is now importing more vannamei from Ecuador and also red shrimp from Argentina.

    “We use coldwater shrimp to open the door to the supermarkets. Then, we try and introduce our other products to them. Coldwater shrimp will remain the most important item to us,” he said.

    “Needless to say, the high prices of coldwater shrimp mean vannamei has taken a share of the market,” said Song.

    “The price is RMB 91.50 ($13.53) per kilogram. This is the same price as L1 [Argentine shrimp] or 30/40 from Ecuador,” he said.

    “In China, if you entertain a guest, you want the bigger size to create a good impression”, meaning the vannamei and Argentina shrimp has a strong appeal, he said.

  • Alisports invests $100 million to popularize Rugby in China

    Alisports invests $100 million to popularize Rugby in China

    Alisports is to invest US$100 million over the next 10 years in an effort to popularise rugby in China, World Rugby announced on Wednesday.

    The company – the sporting division of e-commerce giant Alibaba – revealed its plans at a launch in Shanghai.

    The cash will be used to set up the first professional leagues for men and women, and national sevens programmes.

    And a massive mass participation programme will be launched in 10,000 universities and schools in an effort to attract one million new players over five years.

    Development programmes aim to recruit and train 30,000 coaches and 15,000 match officials by 2020, while the firm will launch a nationwide marketing programme and broadcast rugby on its TV and digital channels.

    “Rugby is a great Olympic team sport with strong values, which is why we are so excited about its undoubted potential in China,” said Zhang Dazhong, CEO of Alisports in a statement issued by World Rugby.

    “We have a great partner in World Rugby and together we will work tirelessly to promote the development of rugby in China with a goal of inspiring one million new players in five years.

    “With the support of World Rugby and a strong strategic plan, we believe that rugby in China will take off as an attractive, inclusive mass-participation sport of sportsmanship and character.”

    The country is making a major effort to increase sporting participation at all levels, and businesses have been rushing to get involved.

    And rugby is seen as a sport with huge potential in Asia, especially after its inclusion in the Olympics.

    “World Rugby’s strategic mission is to grow the global rugby family,” said World Rugby chief executive Brett Gosper in the statement.

    “China is central to that mission and we are delighted to be announcing further details of our ground-breaking plans in partnership with Alisports and the China Rugby Football Association.

    “Driven by a common vision, ambitious but attainable goals and an unprecedented investment programme, we are confident that we can build a strong and sustainable platform from which to ensure that China is in the best-possible position to become a major force on the international stage with strong men’s and women’s sevens and 15s teams, sustainable leagues, model development and participation programmes and real major event hosting potential.”

    According to World Rugby, participation in the sport in China has increased by 40 per cent in the past year with 76,000 players.

  • Amazon Prime is launching in China

    Amazon Prime is launching in China

    Amazon announced it’s bringing a version of its Prime membership program to customers in China, which will include free, cross-border shipping from the Amazon Global Store as well as no minimum free domestic shipping, the company says. The service, which will compete with local rivals like Alibaba and JD.com, will cost 388 yuan ($57.23) per year after the first year, a discounted rate.

    Unlike the U.S. version of Prime, there aren’t a host of perks for Chinese customers outside of the shipping deals – instead, the main focus here is on increasing Amazon’s footprint in China by making it more affordable to buy foreign products from its site.

    Amazon today doesn’t have a significant footprint in China – less than 1.5 percent of the market, according to iResearch. It even launched a store on Alibaba’s Tmall site last year in order to reach Chinese consumers.

    Cross-border e-commerce is a growing trend in China, thanks to rising incomes and increased demand for foreign products. According to a McKinsey study from earlier this year, cross-border consumer e-commerce amounted to an estimated $40 billion (U.S.) in 2015, more than 6 percent of China’s total consumer e-commerce. The report also said it’s growing upwards of 50 percent annually.

    Chinese Prime members will be able to shop over 4 million international products from the Amazon Global Store – a storefront the company launched in November 2014 to cater to an international audience. The localized store’s millions of products are organized across 30 product categories, including those that appeal to Chinese consumers like apparel, shoes, baby, toys, home, kitchen and beauty.

    These international orders are delivered by Amazon fulfillment centers in the U.S. through its global logistics capabilities, says Amazon, and Prime members will receive those packages in an estimated 5-9 days in 82 cities.

    screen-shot-2016-10-28-at-9-58-38-am

    In some cases, orders may take longer. Single orders of over ¥2,000 or total orders for a citizen in a year totaling more than ¥20,000 will be routed through a customs channel which requires additional processing time, the retailer notes.

    Meanwhile, Amazon Prime members can also take unlimited free shipping with no minimum purchase on more than 9 million domestic products.

    “Launching a unique program designed for our Chinese customers shows our obsession with Chinese customer needs, and demonstrates our long-term commitment to growing our business in China,” said Russ Grandinetti, Senior Vice President of Amazon, in a statement about the launch. “We will continue to innovate for customers in China to deliver more value over time.”

    To kick off the launch, Amazon is discounting the Prime membership to encourage signups. Instead of ¥388, it will be ¥188 for the entire first year. A free, 30-day trial is also available from z.cn/prime.

    The launch coincides with Amazon’s third Global Shopping Festival, which runs until December 2, 2016, and will include deals on over 70,000 international brands as well as Black Friday deals on the Amazon Global Store.

  • India looks to cut tariff concessions on Chinese goods

    India looks to cut tariff concessions on Chinese goods

    India is expected to push for a new approach to tariff cuts at the 16-country trade bloc to prevent China from flooding its market with cheap goods. The commerce department is working on ways to give minimum tariff concessions to Chinese goods and delay the concessions by a long number of years even as it allows imports from other member countries at lower duties.

    As part of the Regional Comprehensive Economic Partnership (RCEP) trade negotiations, India is looking to treat Chinese products differently due to the burgeoning trade deficit it has with Beijing. In 2015-16, India’s exports to China were $9 billion while the imports were a staggering $61.7 billion leaving a trade deficit of $52.7 billion.
    India hopes this longer phasing out of tariff concessions and differential treatment, called “deviations”, will become the basis for RCEP negotiations. The new approach comes ahead of the next ministerial meeting on November 3-4 in the Philippines.

    Moreover, since India had to do away with a three-tier structure of differential duty cuts as part of the negotiations, deviations are the last ray of hope to contain the trade deficit with China under a formal trade agreement. In the earlier tiered structure, India had proposed to remove duties on 42.5% of the items traded with China, something that Beijing had termed as low.

    “We hope the tiers come back from the backdoor through deviations,” said a commerce department official, adding that the difference in tariff cuts may not be as much as in the earlier structure of three tiers.

    “We can look at longer staging periods for China by delaying the concessions by some years or not offer key products for tariff cuts to them at all,” the official said. Despite agreeing to a common concession, India is insisting on a single undertaking for the RCEP which means nothing is agreed until everything is agreed. “With single undertaking, we can be sure other members will not lose interest in India’s demands once we accept their demands for tariff concessions on goods,” the official said.

    Trade Openness

    Our problem with China seems to be a lack of trade access. And to better manage our trade deficit with China, we need to call for better trade access rather than opt to keep tariff barriers high. The latter option would only raise transactions costs and lead to thoroughly suboptimal policy going forward. are definite gains from trade and openness

  • Across China, Walmart Faces Labor Unrest as Authorities Stand Aside

    Across China, Walmart Faces Labor Unrest as Authorities Stand Aside

    In a one-man war room in his apartment, a laid-off Walmart employee named Wang Shishu was tapping out a message on his phone to a group of workers and plotting his next move.

    Over the past few months, Mr. Wang, 56, has helped organize a national movement in China against Walmart. Labor strikes have hit stores in the south simultaneously. There have been boycotts in the northeast. And here in Shenzhen, where Walmart opened its first outlet in China two decades ago, employees have filed a lawsuit demanding back pay.

    “We want a snowball effect,” he said in the booming baritone of a street preacher. “We want everybody to know what to do next.”

    As the Chinese economy has slowed, strikes and labor protests have broken out across the country, mostly scattered episodes targeting a single factory or business. The government has responded aggressively, detaining activists and increasing censorship to keep unrest from spreading.

    But activism against Walmart’s more than 400 stores in China in recent months has followed a different pattern: workers in several cities agitating against the same company, bypassing official unions controlled by the Communist Party and using social media to coordinate their actions — while the authorities largely stand aside.

    Across China, Walmart employees have raised their fists at protests, chanting, “Workers, stand up!” They have appealed to local officials with patriotic fervor, invoking the struggles of Mao Zedong against foreign imperialists. They have posted screeds online against unkind bosses and “union puppets.”

    In doing so, the Chinese work force of the world’s largest retail chain has put the ruling Communist Party in an uncomfortable position, publicly testing its Marxist commitment to defend the working class and pitting that against its fear of independent labor activism.

    Ever since the Solidarity trade union helped topple Communist rule in Poland, Beijing has sought to prevent the emergence of a nationwide labor movement, suppressing efforts by workers to organize across industries or localities.

    But the authorities appear to be hesitating in the case of Walmart, whose workers have complained of low wages and a new scheduling system they say has left them poorer and exhausted.

    In recent months, as many as 20,000 people, about a fifth of the company’s work force in China, have joined messaging groups set up by Mr. Wang and other activists on WeChat, a popular app. In these forums, they vent about company policies, share protest slogans and discuss plans to coordinate demonstrations for maximum effect.

    Mr. Wang, a former customer service representative whom Walmart has fired twice, spends his days babysitting his granddaughter and trading messages with workers across the country, often as late as 2 a.m.

    “What they’re doing is inhumane,” he said. “I want Walmart to return to the sympathetic company it used to be.”

    Eli Friedman, a labor scholar at Cornell University, said the Walmart movement was “probably the most substantive example of sustained, cross-workplace, independent worker organizing we’ve ever seen in China’s private sector.”

    The government appears to be keeping a distance because it is worried about provoking a backlash, or about acting on behalf of a prominent American company against Chinese workers at a time when nationalism in China is rising.

    But by doing little or nothing, it risks encouraging disaffected workers elsewhere, especially at the growing number of national chain businesses with operations across China. Already, workers at Neutrogena stores and China Unicom, a state-owned telecom operator, have used similar tactics, while avoiding serious punishment.

    “We can only expect that online organizing will continue to break down local barriers,” said Keegan Elmer, a researcher for China Labour Bulletin, an advocacy group based in Hong Kong.

    The retail sector in particular has become a hotbed of worker activism. The government wants to shift growth from manufacturing to service industries, but many new jobs at restaurants, hotels and stores are low-paying or part-time.

    From July through September, there were 124 strikes and protests at service-sector firms, about double the number last year, outpacing episodes in manufacturing for the first time since at least 2011, according to China Labour Bulletin.

    Chinese law requires businesses to establish labor unions, but they are almost always controlled by management, and companies generally use the unions to contain worker activism. In the face of labor strife, some businesses have offered back pay, bonuses and other benefits to workers.

    But others, concerned that labor activism could force costly concessions, have resorted to tougher tactics, retaliating against those who help organize protests. At Walmart, some of the most vocal workers have been deprived of raises, reassigned, or in some cases fired, according to interviews with more than a dozen employees.

    At one store in Zhongshan, west of Shenzhen, a labor activist said a supervisor photographed her in the bathroom as retribution for speaking out. She asked not to be identified for fear of further antagonizing her bosses.

    Much of the discontent stems from a new scheduling system that Walmart put in place this summer as a way, the company said, of giving workers more flexibility. Workers have argued that it has resulted in cuts to overtime pay and excessively long shifts, and some say they were coerced into signing new contracts agreeing to the system.

    Walmart denied that it had treated its employees unfairly or had pressured them to accept the new schedules. Rebecca Lui, a spokeswoman, said that the vast majority of its work force supported the new system, and that employees were free to keep their old schedules.

    “Our associates are our most valuable asset,” she said in a statement.

    Zhai Xiuhua, a former greeter at a Walmart store in Shenzhen, said she was fired in September after leading a fight against the new scheduling system.

    “I told them, ‘Even if you put a knife to my neck, I’ll never agree,’” she recalled at her home, where her uniform and identification badge — No. 14470 — still hang on the wall. Ms. Zhai, worried about medical bills, says she now hopes to find work in her hometown in the southwestern province of Sichuan.

    Walmart, which has resisted unionization at its thousands of stores across the world, was forced by the government in 2006 to establish branches of the Communist Party-controlled All-China Federation of Trade Unions for its roughly 100,000 Chinese employees, part of a broader push by the party to unionize foreign businesses.

    But union branches at many Walmart stores are under the thumb of store managers, and higher-level union officials appear torn about how to respond to complaints from workers like Ms. Zhai.

    While union officials here in Guangdong Province have criticized Walmart for not seeking governmental approval for the new scheduling system, they have not taken more forceful action or helped mobilize workers.

    Labor activists at Walmart have cited the ideals of President Xi Jinping and the Communist Party’s history of protecting workers, and experts said they appeared to be benefiting from a belief among some officials that the influence of foreign companies such as Walmart should be curtailed.

    “If the Chinese authorities try to suppress the workers on behalf of Walmart,” said Wang Jiangsong, a Chinese labor scholar, “it will hurt the country’s image.”

    When Walmart opened its first store in China in 1996, workers rushed to snap up jobs that paid more than those at Chinese competitors.

    Now, some employees say, a Walmart job does not pay enough to comfortably support a family, with wages hovering around minimum wage, or about $300 a month. While Walmart has led a high-profile campaign in the United States to raise pay, salaries in China have remained largely stagnant, workers said, barely keeping pace with inflation.

    Walmart has struggled to keep up with the fast-changing tastes of Chinese consumers and tried to re-energize its business by making investments in online retailers.

    But the continuing labor unrest poses a potential hurdle.

    You Tianyu, 45, a customer service employee at a Walmart store in Shenzhen, caught the attention of her supervisors in August when she wrote a letter to the president of Walmart, Doug McMillon, to complain about the company’s efforts to silence aggrieved workers.

    Ms. You said her bosses now harassed her daily because she spoke out, and she has received a diagnosis of anxiety and depression.

    She spends most of her nonworking hours rummaging through a mess of worker manifestoes, union laws and pay slips in her tiny apartment, hoping to find a new line of attack against Walmart.

    “I’m on the verge of collapsing,” she said. “I don’t know how much longer I’ll last.”

  • Adyen supports WeChat Pay globally

    Adyen supports WeChat Pay globally

    Global payments technology provider Adyen has added WeChat Pay support to help businesses worldwide sell to customers in China and Hong Kong.

    Adyen provides the payment infrastructure for multiple major internet companies including Uber, Facebook and Neflix. With the agreement, Adyen will be the first payment service provider to support WeChat Pay on a global scale.

    Adyen CCO Roelant Prins said China is at the forefront of the digital payments revolution, with 15% of the total population expected to make a cross-border purchase in 2016.

    “We are very excited to support WeChat Pay. When combined with our existing UnionPay and Alipay integrations, it gives businesses access to the world’s biggest e-commerce market with a single partner,” he said.

    “This is the final key to unlocking full access to the Chinese shopper. This is especially appealing to travel businesses and high-end retailers.”

    According to Adyen data, despite the rapid adoption of digital payments in Hong Kong, credit cards are expected to remain the most popular payment method in the market. Visa has a significant lead over rival MasterCard.

    Because no local entity is required for cross-border transactions it is easy to accept and settle payments in Hong Kong dollars with no impact on currency conversion.

  • Walmart Invests $50M In JD.Com’s O2O Logistics Services App New Dada

    Walmart Invests $50M In JD.Com’s O2O Logistics Services App New Dada

    Walmart has made a US$50 million strategic investment in New Dada, formerly known as Dada and controlled by JD.com Inc., in another step deepening an existing partnership between the global retail giant and China’s second largest e-commerce firm.

    New Dada was created in April from a merger between JD.com’s O2O (online-to-offline) unit and Dada Nexus Ltd., a venture-backed Uber-like mobile app that focuses on providing last mile logistics services.

    “Our alliance with JD and cooperation with New Dada will enable seamless shopping to millions of customers across China,” says Walmart CEO, Doug McMillon.

    The O2O logistics services provider New Dada currently has more than 25 million registered users, and provides local on-demand delivery capabilities with 2.5 million crowd-sourced deliverers across more than 300 cities in China.

    New Dada currently offers customers two-hour delivery on groceries ordered from Walmart stores to customers within a 3-kilometer radius of more than 20 Walmart stores in China. The number of Walmart stores offering two-hour delivery is expected to double by the end of the year.

    Officially launched in 2014, Dada operates through Imdada.cn and last completed a US$300 million series D round of financing from DST Global, Sequoia Capital and others in January.

    It previously raised three rounds of venture funding from DST Global, Sequoia Capital, Greenwoods Investment Management and other undisclosed investors.

    In April, JD.com paid US$200 million in cash and injected JD Daojia assets into Dada in exchange for a 47.4% stake in the newly merged Dada.

  • SM Prime Holdings eyes China expansion

    SM Prime Holdings eyes China expansion

    Philippines property developer SM Prime Holdings is looking to acquire shopping malls in China as well as buying more land for expansion.

    But it is interested only in the Fujian province, says SM Prime executive committee head Hans Sy.
    “We are still continuing to really look,” he says.

    With “phenomenal development” in the past 10 years, the value of land has risen in China, and Sy says the group is assessing different areas that could offer value for money.

    While there are malls up for sale, SM Prime is being careful about possible acquisitions. “I’m being choosy,” says Sy. “I only want within Fujian province.”

    Fujian is the home province of his father, Henry Sy, the richest man in the Philippines, who built his retail empire from a small shoe store in Manila.

    “We have the advantage right now [in Fujian] because of our success,” Sy says.

    SM’s malls in China include Chengdu (166,665 sqm), Chongqing (149,429 sqm), Jinjiang (167,830 sqm), Suzhou (72,552 sqm), Xiamen (238,125 sqm) and Zibo (150,600 sqm) for a total gross floor area of 945,200 sqm. The company’s mall in Tianjin, which partially opened this year, has a gross floor area of 540,000 sqm.

    In all, SM is targeting to further expand its mall network in the Philippines and China to 10.6 million square meters of gross floor area by 2018, according to documents presented in a briefing by SM Investments. This would be an extra 28 per cent from the 8.3 million gross floor area the company hit last year.

    Of the target, 85 per cent would be accounted for by malls in the Philippines while 15 per cent would be in China.