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Tag: China

  • Giant Muji Shanghai flagship store opens

    Giant Muji Shanghai flagship store opens

    The new Muji Shanghai flagship just opened marks the Japanese department store brand’s largest shop in China.

    Muji says it built the massive store so consumers in China “can experience the Muji lifestyle concept”.

    MUJI Shanghai Huaihai 755 - 6

    MUJI Shanghai Huaihai 755

    The new store is located at 755 Huaihai Rd, Shanghai’s premium high street shopping strip which is also home to flagships from brands as diverse as Uniqlo and Alfred Dunhill.

    MUJI Shanghai Huaihai 755 - 5

    MUJI Shanghai Huaihai 755 -1

    From a design perspective, each of the store’s three levels uses a different natural material to create three unique, differentiated shopping environment: Wood, iron (metal) and glass (earth).

    MUJI Shanghai Huaihai 755 - 4

    The flagship also incorporates  the cafe & Meal Muji dining concept, for the first time in Shanghai.

    MUJI Shanghai Huaihai 755 - 10

    “We seek out food ingredients that are tasty as natural food, and produce menus that make use of the original tastes of those ingredients with simple cooking methods,” said a Muji spokesperson of the new eatery offer.

    MUJI Shanghai Huaihai 755 - 3

    And – for the first time in China – Muji Books has opened featuring a curated range of reading materials and stationery products.

    MUJI Shanghai Huaihai 755 - 7

    MUJI Shanghai Huaihai 755 - 9

    MUJI Shanghai Huaihai 755 - 2

    In one corner of the store, customers can create their own scents mixing and matching various essential oils for their own unique recipe.

    MUJI Shanghai Huaihai 755 - 8

    Muji says the store is large enough for it to host seminars and events for customers.

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  • All business based online now, says Alibaba CEO

    All business based online now, says Alibaba CEO

    The internet is no longer a business model but rather an essential piece of infrastructure on which all businesses need to operate, says Alibaba CEO Daniel Zhang.

    “All businesses are based on the Internet now,” Zhang told the World Internet Conference in China on Friday, likening it to a basic utility such as water, electricity and gas.

    “It can only transform the future of the business landscape when it’s combined with other industries.”

    About 2000 attendees including world government and business leaders were in Wuzhen, a canal city similar to Venice in eastern China’s Zhejiang Province, for the second annual conference, hosted by the Chinese government, a forum for topics such as cyber security, innovations in technology and developments in eCommerce. Chinese President Xi Jinping opened the conference on Wednesday as its keynote speaker.

    During his speech, Zhang said  the integration of the internet with other industries led to the success last month of Single’s Day, the largest one-day online shopping event in the world. The annual eCommerce bonanza, held every November 11, generated $14.3 billion in total gross merchandise volume because of the ecosystem of businesses that the company has built with its merchant, logistics and data-analysis partners. In comparison, Cyber Monday, the US equivalent of the Single’s Day, brought in just $3.1 billion this year.

    “We have formed a complete chain including a merchandise pool, payment system, membership management and data analytics tools to serve customers and partners that share common goals and standards with Alibaba,” Zhang said.

    Indeed, businesses will further transform as they use “big data” to better serve their customers. Alibaba has long touted itself not just as an eCommerce company but one of data as well. The information collected from the 40 million transactions a day on the company’s online marketplaces – demographic data of buyers, their spending habits – can benefit manufacturers when enhancing product design and help brands grow their businesses in China.

    “Data is becoming energy and blood of the new business landscape,” Zhang said.

    Other Alibaba executives were also in attendance, including executive chairman Jack Ma and Lucy Peng, the CEO of Alibaba-affiliate Ant Financial Services Group.

  • Study reveals Asian dining spending trends

    Study reveals Asian dining spending trends

    One in three millennials in Asia are eating at fine dining restaurants at least once a month – more often than those aged over 30.

    The surprise finding is one of a list of revelations uncovered by a MasterCard survey of Asian dining trends away from home. It featured consumers in 17 Asia Pacific markets: Australia, Bangladesh, China, Hong Kong, India, Indonesia, Japan, Malaysia, Myanmar, New Zealand, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand and Vietnam.

    The most frequent fine-diners in Asia Pacific are millennials (18-29 year olds) from China – on average they visit more expensive establishments two or three times a month. This is higher than the average for millennials across the region and higher than any other age group.

    When choosing where to eat, consumers in Asia Pacific still prefer to rely on word of mouth and recommendations from friends and family (50 per cent). This was applicable for all consumers, regardless of age group, with even millennials trusting word of mouth recommendations (52 per cent) more than online reviews (38 per cent).

    This is despite the fact that more than a third of millennials (36 per cent) post comments and reviews of their dining experiences online. This is especially true of Chinese (61 per cent) and Thai (52 per cent) millennials, where more than half of the young people polled regularly post reviews after a meal.

    Beyond millennials, people in Thailand (39 per cent) and China (30 per cent) are also the most likely to spend more on dining over the next six months with around one in three indicating they plan to eat at more expensive establishments.

    But while consumers may be enjoying fine dining, they are still cost conscious. Sixty-four per cent of consumers in Asia Pacific regularly check for discounts or dining deals from coupon websites, mobile applications or credit card promotions. Sixty-eight per cent of millennials regularly look out for deals before choosing a place to eat.

    Eric Schneider, regional head, Asia Pacific, with MasterCard Advisors, said Asia has always had a strong dining out culture and so it is not surprising that affluent millennials in the region are ‘foodies,’ with many sharing their dining experiences on social media and posting reviews online.

    “While the survey has shown that people are increasingly moving from the hawker centres and into restaurants, young people are still cost conscious, taking a practical and savvy approach by looking for discounts and deals. Young people also still rely on word of mouth recommendations, despite many posting online reviews of dining spots. As Asia’s economies continue to grow, and with technology and social media revolutionizing the dining experience, people will increasingly demand top quality experiences when dining out,” he said.

    Other findings from the survey included:

    • Overall, consumers in Asia Pacific are not looking to make any significant changes to their dining out plans with 61 per cent of all consumers indicating they will look to eat out at the same frequency in the next six months. Twenty per cent plan to eat out more and 19 per cent plan to eat out less in the next six months.
    • The most popular dining option for consumers in Asia Pacific are mid-range restaurants and cafes, followed by fast food outlets and then hawker centres and food courts.
    • Consumers in the Philippines (44 per cent) are looking to tighten their belts with close to one in two planning to eat at less expensive venues in the next six months. Forty-nine per cent also plan to eat out less regularly.
    • A significant proportion of older consumers are going online to check for dining discounts whether on coupon websites/applications or credit card promotions. More than one-third of consumers aged 55 years old and above (36 per cent) indicated they regularly do so before deciding on a dining option.
    • Consumers in China (58 per cent), Taiwan (44 per cent) and Thailand (44 per cent) are the most likely to book dining deals on coupon sites or coupon applications; while consumers in Bangladesh (1 per cent) and Indonesia (11 per cent) were least likely to do so.
    • Diners in Thailand (60 per cent) and China (57 per cent) are most likely to post comments or reviews on social networking sites like Facebook and Twitter with about one in two respondents in these markets reporting that they regularly post comments online following their dining experience.

    The results are based on interviews with 8698 individuals aged 18 to 64 years-old.

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  • Omnichannel marketing from a Chinese perspective

    Omnichannel marketing from a Chinese perspective

    If you have been paying attention to developments in the e-commerce world, it’s unlikely that you have missed the news about the outcome of Singles’ Day.

    Chinese e-commerce giant Alibaba recorded US$14.3 billion in sales on Nov. 11, eclipsing the most recent Black Friday shopping event in the United States, which only saw US$10.4 billion in sales.

    Data from the China Internet Network Information Center shows that China has the world’s largest online population at 632 million people, and more than half of them, about 332 million, shop online.

    Business-savvy Chinese retailers have not been shy on tapping into this massive pool, and their momentum has not shown any sign of slowing down.

    According to iResearch, China’s online sales could reach 5.63 trillion yuan (US$867.1 billion) by 2017, or 15.7 percent of the country’s total retail sales.

    The massive online market, especially in China, has lured many traditional retailers into establishing their own online channels, while interestingly, many pure-click retail businesses in China have also started to establish an offline presence with brick-and-mortar stores.

    We refer to this strategy of leveraging both online and offline platforms to market a brand as “omnichannel marketing”.

    This approach is becoming increasingly popular in recent years, especially with smartphones becoming a staple of modern life.

    More and more retailers are seeking ways to unify the whole ecosystem, both technologically and logistically, with a view towards giving customers a mobile seamless interface to every service that the mall or retailer has to offer.

    With the view that an effective omnichannel marketing strategy will help boost sales, improve brand recognition and strengthen customer loyalty, here are some tips for retailers yet to devise their own strategies to get a head start:

    1. Mobile devices are your friend

    It’s safe to assume that the majority of your customers own at least one smartphone. They’re the perfect gateway for you to communicate with your customers. First and foremost, make sure your online presence is mobile-optimized so that your customers get the best experience even when they’re on the road. Other things you can do to improve your brick-and-mortar shopping experience include making available an in-store map and letting customers check for stock while they’re connected to the Wi-Fi on-premises. Explore your options to interact with your customers meaningfully on mobile.

    2. Understand your customers 

    There are many products widely available on the market to help you capture data about your customers. By analyzing the data with the right tools, you can get insights into your customers’ behavior to help you devise future sales strategies that are more attuned to your customers’ interests.

    3. Tailor your content

    Make good use of the insights gleaned from your Big Data analytics to tailor your communications content. Retailers who exploit mobile channels to disseminate generic marketing materials risk alienating their customers, while who those who make good use of their understanding towards their target audience and develop personalized content will win the hearts, and purses, of shoppers.

    While there are a lot that can be done in omnichannel retailing, retailers should also keep in mind the importance of having a robust mobile engagement solution when pursuing different omnichannel strategies.

    One of the first steps a retailer should take is to find the right technology partner. There are many successful cases across the Greater China region.

    In China, for example, Wanda Group partnered with Aruba to improve the retail shopping experience in over 50 shopping malls through improved mobility.

    Bauhaus, on the other hand, deployed Aruba’s solutions in its stores in Hong Kong and Macau to provide Wi-Fi to its customers and push out relevant, personalized content such as new arrivals and discount offers.

    All these bring unprecedented experience to customers. When you combine location services with Wi-Fi and beacon technology, customers have a magical experience while retailers gain more loyal and engaged visitors who have a higher propensity to return and spend more.

    We are entering the Mobile Engagement 2.0 era. For retailers without a sound omnichannel marketing strategy, especially those who haven’t made it online for fear that their efforts would be overshadowed by established e-commerce companies, it’s not too late to start.

  • Digital Push In China: Can This Impact Starbucks’ Revenues In The Region?

    Digital Push In China: Can This Impact Starbucks’ Revenues In The Region?

    Recently, Starbucks Corporation China announced the opening of its first online store in China’s popular ecommerce site, Tmall, which will feature unique and specially designed e-cards, Starbucks cards and coffee vouchers providing an easy gifting option. [].While this initiative is part of the company’s increased focus on digital presence, it could tap into the significant growth of retail ecommerce in China. According to eMarketer, retail ecommerce sales in China are projected to grow at more than 30% each year, over the next three years and reach more than $1500 billion by 2018. []. While mobile is expected to account for nearly half of the total ecommerce sales in China in 2015, this figure is expected to increase to 70% by 2019. []. We believe Starbucks’ ecommerce initiative in China should benefit from the growing internet users in the region and the online shopping habits of Chinese consumers.

    More Than 16% Of Total Retail Sales In China Through Ecommerce By 2018

    It is estimated that in 2015, ecommerce sales will account for nearly 7% of the total retail sales in the U.S., while this number is much higher at 12% for China. By 2018, it is estimated that these figures will increase to nearly 9% for the U.S. and more than 16% for China.

    183110

    Given the preference of Chinese consumers towards online shopping, we believe Starbucks’ initiative to expand its digital presence in the region is the right strategy.  China is a growth market for Starbucks. For the fiscal year 2015, comparable store sales in the China Asia Pacific region grew by 9% compared to a 7% number for the Americas. This growth was driven by a 8% increase in traffic while the corresponding number for Americas was 3%. []. The company plans to double its store count in the China Asia Pacific region to 10,000 stores in the next five years, with the store account in China projected to be 3,400 by the end of 2019. As the Chinese economy shifts from an export focussed industrial region to one relying on services and domestic demand, we believe Starbucks will benefit from this trend with the urban middle class increasing and becoming well off. With aggressive expansion plans in China, which the company expects will be its biggest international market; we believe the ecommerce entry could drive growth in the region and also provide a boost to the Starbucks loyalty program.

     

  • All about China and oil again as shares slip

    All about China and oil again as shares slip

    Shares in Europe and Asia fell on Monday in trade thinned by holidays in a number of financial centres, hit by slumping oil prices and concerns over Chinese growth and finances – two of the year’s major factors.

    Prices of both Brent and U.S. crude fell 1.8 percent LCOc1 CLc1, reversing a brief rebound that helped shares in the Middle East over the weekend, while Chinese stocks fell almost 3 percent after a weak batch of industrial profits data.

    While most bank dealing rooms in Europe were on skeleton staffing, and London shut, that had repercussions for a range of assets, driving the Australian and Canadian dollars down about a third of a percent and pushing bond yields lower.

    Profits at Chinese industrial companies in November fell 1.4 percent from a year earlier, the sixth consecutive month of decline and another sign that the world’s chief engine of growth for the past decade is sputtering.

    “Over-capacity and declines in producer prices are hurting the Chinese government efforts and if the government cannot come up with a solution to stop this, the picture will keep on becoming more worse,” retail brokerage AvaTrade chief market analyst, Naeem Aslam, said.

    MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gave up early modest gains to fall half a percent, putting it on track for an 11-percent loss this year.

    China’s two main share indexes .SSEC .CSI300 fell 2.6 and 2.9 percent respectively, with banking shares leading the fall. Hong Kong’s Hang Seng .HSI dropped 1 percent. South Korea’s KOSPI .KS11 fell 1.3 percent.

    Stocks affiliated with Samsung Group fell after the South Korean conglomerate said on Sunday its battery-making arm Samsung SDI will sell shares in sister firm Samsung C&T Corp to comply with regulatory requirements.

    Japan’s Nikkei .N225, however, rose 0.6 percent, with soft domestic production and retail data hinting at more pressure on the Bank of Japan to take further steps to stimulate growth.

    International Brent crude traded at $37.26 LCOc1 a barrel, just over a cent above 11-year lows hit before Christmas.

    The fall in oil prices has depressed inflation globally, in turn reducing long-term expectations for price growth that drive longer-dated bond yields. That tends to draw investors back into bond markets at the expense of stocks and pushes up the price of longer-dated government bonds.

    German 10-year Bund yields DE10YT=TWEB, which set the standard for euro zone borrowing costs, fell 2 basis points to 0.60 percent.

    “Oil prices could be part of this but it’s probably just minor trades that we’re seeing here, we shouldn’t read too much into it,” Rabobank fixed income analyst, Bas van Geffen, said. “Most market participants have already closed their books and small…(trades) can move markets quite a lot.”

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  • Leak suggests Galaxy A9 will retail for just under $500 in China

    Leak suggests Galaxy A9 will retail for just under $500 in China

    Samsung’s latest phablet has come as a surprise for some: unlike the other members of the Galaxy A 2016 family, the Galaxy A9 has no such “subtitle” for it is the first of its kind. Sporting a 6-inch Full HD Super AMOLED display and with a metal unibody frame, the device is perfect for those who wanted a truly large phone from Samsung yet had to make do with a Plus 5. Today, a new leak out of China has added a possible price point as well: 3199 yuan (about $490).

    Given the device’s prime positioning as an upper mid-range phone, the cost would appear to be a fair price, all the more considering how expensive the Galaxy A8 was in some territories.

    Those in need of a spec recap will be happy to note that the Galaxy A9 comes with the aforementioned 6-inch Full HD Super AMOLED display (complete with 2.5D glass), a 64-bit Octa Core Qualcomm Snapdragon 652 SoC, 3GB of RAM, 32GB of on-board storage, a 13-megapixel rear camera and 8-megapixel front camera, an integrated fingerprint sensor, Dual SIM support, a 4,000mAh battery, microSD support, and Android 5.1.1.

    Samsung Galaxy A9

    While the exact release date for the extra-large phone is still unknown, it is possible Samsung will announce its plans in the next few weeks given the decision to launch it prior to CES 2016. At the same time, the phone has currently only been announced for China and is therefore operating on a slightly different release schedule. Perhaps it will hit stores just before Chinese New Year.

    What do you think of the cost? Assuming the leak is legitimate, would you pay around $500 for such a device? Is it too expensive given the competition? Leave us your thoughts in the comments below!

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  • Rakuten to open on JD.com

    Rakuten to open on JD.com

    Rakuten, Japan’s largest eCommerce company, is to open an online flagship on Chinese cross-border eCommerce platform JD.com.

    The Japanese company says it aims to take “the best Japanese products to Chinese consumers”. It launched a beta version of the new marketplace on JD Worldwide earlier this month. Plans are under way to expand the merchandise range over coming months, with an initial focus on categories such as cosmetics, snacks and health food products.

    Masato Takahashi, managing executive officer of Rakuten, said the partnership between Rakuten and JD.com will promote cross-border trade by connecting Chinese consumers with authentic and popular Japanese products from a top selection of Rakuten’s merchants from around Japan, both small and large.

    “Rakuten will continue to work to expand our offering to Chinese consumers.”

    Haoyu Shen, CEO of JD Mall, said imported Japanese products have proven popular in China to date.

    “Our focus remains on partnering with the most trusted retailers in key overseas markets to meet the growing demand for premium imported products.”

    Expansion of the product line-up will continue over the coming months.

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  • Boom in teenage arrests for selling counterfeit goods online

    Boom in teenage arrests for selling counterfeit goods online

    Hong Kong Customs officials report they have arrested a record number of teenagers for selling counterfeit goods online via social media.

    According to a report in the South China Morning Post, officials have arrested double the number of teenagers in the first 11 months of 2015 as in the entire previous year.

    The majority of the arrested – 54 secondary school pupils and 28 university students – were allegedly selling fake goods on social media, with Facebook an especially popular channel.

    Last year, just 41 arrested were made, according to Louise Ho, head of the intellectual property investigation bureau of the Hong Kong Customs and Excise Department.

    The 82 arrests accounted for nearly 40 per cent of all the counterfeit arrests made by customs this year.

    Ho says students seem unaware of their legal responsibilities and the criminal nature of selling counterfeit goods online, and see the trade as easy money.

    They appear unaware it is insufficient defence legally to disclose the goods are counterfeit.

  • Here’s Why All That Glitters Is Not Gold In China Jewelry Market

    Here’s Why All That Glitters Is Not Gold In China Jewelry Market

    Market reports on Wednesday claim that Jewelry manufacturing and retail industry are among the worst hit sectors in China due to a slowdown in the country’s economic growth. Shuibei, which was once the mecca for Jewelry retail and production in China, is now feeling the heat in terms of declining number of consumer visits due to the economic uncertainty in China.

    Among the most pertinent reasons for slumping gold demand in China are the economic slowdown as well as the government’s anti-corruption drive which has resulted in low demand for luxury items. However, the most worrisome sign for Chinese gold market is the fact that the consumers have started to become wary of the prevailing economic uncertainty. The shaken consumer confidence is likely to hit the Chinese gold market, which is also the largest market in world for the precious metal.

    Analysts say that China is entering the maturity phase of its economic cycle after growing exponentially for the last few decades. As the economic growth slows down, there may be uncertainty regarding how the government and certain sectors deal with it. This situation has been made worse by the devaluation of Chinese yuan by the People’s Bank Of China (PBOC) in August. The yuan has suffered a constant decline since and some analysts believe that this might be a deliberate step by the Chinese government.

    The gold prices are already languishing at a six-year low due to global economic uncertainty. Therefore, with China and India, the largest and second largest gold markets going soft, it would only mean more trouble for the global gold prices.

    Many of the businesses in the Shuibei district of Shenzhen have suffered a slump in trade due to the current gloomy economic growth forecast for China. This is happening due to a shift in customer confidence from being enthusiastic to wary.

    According to Wang Zhichang, regional manager of Glory Gold store, the demand for gold is unlikely to pick up anytime soon due to the fact that consumers have lost confidence in the precious metal. Therefore, it is quite possible that the revenue in the Chinese gold industry may fall in 2016 at least 10%. The revenue of Chinese gold market overall has seen a plunge of almost 20% in the current year.

    Mr. Wang also claims that due to the worsening gold market conditions in China, a number of factories had shut their operations in the last 12 months. The impact of the current slump in Chinese economy on local gold market is so widely spread that even the nationwide huge gold retail chains like Chow Tai Fook are forced to close outlets and cut down future store openings.Chow Tai Fook, the largest gold retailer in China in terms of market value, had to suffer a 42% plunge in net profit for the period from April to September 2015. This has forced the company to plan opening of only 60 stores in China in its current financial year which ends in March 2016, instead of the originally planned 150 outlets.

    A representative of Chow Tai Fook opined that the customers had become more rational with their choices and purchases in the recent times. This translates into the pressure under which the Chinese gold industry is at the moment.

    CBN opines that it was only a matter of time before the worse impacts of the economic slowdown in China began to reflect on the country’s booming gold market. With the prices of gold falling on a global level and the economic uncertainty in China, the gold market was always going to suffer. We believe that as the growth in Chinese economy slows down due to the country entering the maturity stage of its economic progression, the consumers are likely to become more wary of making bold acquisitions.

    We believe that Chinese customers are likely to want an added value for the transactions they make in the current circumstances. With the gold prices falling globally, the sense of security of holding on to a precious metal is no longer going to be the driving force for its purchase. Furthermore, doubts over economic growth are likely to force the hand of Chinese consumers towards basic necessities more than luxury acquisitions. Therefore, the struggle in the gold market in China is likely to continue at least for the coming couple of years.

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  • Nike Defies Stagnation in U.S. Retail, China as Orders Surge

    Nike Defies Stagnation in U.S. Retail, China as Orders Surge

    Nike Inc. posted second-quarter results that showed the footwear and athletic-apparel giant remains largely immune to the shopper malaise that’s plagued much of retail.

    The world’s largest sporting-goods maker posted profit of 90 cents a share, topping analysts’ average estimate of 86 cents, as it continued to reap the rewards of a dominant brand and the ongoing fashion shift toward casual, sporty attire. It also defied concerns about slowing economic growth in China, with revenue there gaining 24 percent to $938 million.

    • Orders for the Nike brand for the next four months rose 20 percent, excluding the effects of currency. Analysts expected a 13.6 percent gain.
    • Net income increased 20 percent to $785 million.
    • Sales rose 4.1 percent to $7.69 billion. Analysts estimated $7.81 billion.
    • Gross margin widened 0.5 percentage point to 45.6 percent.

    The shares rose as much as 4.1 percent to $137.31 in late trading in New York. Nike had gained 37 percent this year through the close on Tuesday.

    “Overseas markets have great potential,” for Nike, said Paul Swinand, an analyst at Morningstar Inc. “Investors should take a read on Chinese consumers from the futures orders: There’s room to purchase new Western goods in people’s budgets. That highlights the potential for the long-term middle-class growth there.“

    $50 Billion

    The earnings report is Nike’s first since it announced a goal of increasing annual sales to $50 billion by fiscal 2020, up from $30.6 billion in its most recent fiscal year. The target implies an annual growth rate of 10.3 percent, slightly higher than the past two years. The company expects about a third of those gains to come from its online business. That trend played out last quarter, with sales through its websites surging 49 percent.

    In the most recent quarter, Nike’s China unit was the standout. Footwear sales there gained 30 percent to $600 million, while apparel revenue climbed 15 percent to $306 million. The strength looks set to continue, with futures orders for the segment increasing 34 percent, excluding currency effects.

    Part of Nike’s success in China has been a plan started two years ago to revamp its distribution and merchandise — like the fit of its apparel — after a glut of inventory after the Olympics weighed on results. It also has been selling more products through its own stores and websites, which is part of a companywide strategy. Revenue from those segments in China rose 51 percent last quarter.

    North America also turned in a strong performance, with sales increasing 9.4 percent to $3.55 billion. Footwear led the gain, with a 12 percent increase. North American futures orders grew 14 percent.

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  • Woolworths plans to sell online in China

    Woolworths plans to sell online in China

    Supermarket titan Woolworths considers taking advantage of China’s voracious interest for Australian food and grocery items.  Australia’s biggest general store chain has connected with China-based eCargo Holdings to construct and operate a Woolworths storefront on Alibaba’s Tmall business-to-customer online marketplace.

    eCargo will likewise facilitate Woolworths’ stock, packing and dissemination requirements, counsel on brand strategy and embrace an extensive variety of online and social advertising exercises for the retailer. Woolworths has a vicinity in the Chinese market after obtaining alcoholic beverages merchant Summergate a year ago for $US25 million. Rising interest among China’s well-to-do white collar class in food and dairy items delivered from abroad has opened up a substantial business sector for Australian food and dairy items.

    eCargo Chairman John Lau said in an announcement that they trust the food and grocery market will encounter enormous development in the coming years in between Australia and China, as cross-outskirt exchange limitations ease and the China Australia FTA produces results.

    Woolworths online invasion into China takes after a comparative move by smaller local opponent Metcash, which set up shop on Tmall not long ago to sell items like Weet-Bix, Tim Tams, long-life milk and newborn child formula.

    As of late, a few well known worldwide brands including Amazon, Macy’s and Germany’s Metro have set up shop in the online market place operated by Alibaba and rival JD.com, with an end goal to take into account China’s growing interest for imported customer items. The Chinese e business sector is conjecture to more than twofold throughout the following three years to $US1.5 trillion, as indicated by New York based research firm eMarketer.

    Woolworths has struggled in the domestic market over the previous year in the wake of taking a profit hit from its price war with adversary grocery store titan Coles and German discounter Aldi.

      Online, supermarket

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  • Nan Hai plans big China push for Crabtree & Evelyn

    Nan Hai plans big China push for Crabtree & Evelyn

    Nan Hai Corp. is planning a big push in the mainland China market after acquiring a company that manufactures and sells skincare products under the Crabtree & Evelyn brand.

    The Hong Kong-listed firm has received leasing invitations from several shopping malls in the mainland, and is planning to open its first Crabtree shop in a first-tier city, the Hong Kong Economic Journal reported.

    It aims to leverage the brand image and establish points-of-sale in various retail locations, including movie theater complexes and food and beverage outlets, the report said, citing Yu Xin, managing director of Nan Hai’s subsidiary Dadi Digital Cinema.

    Nan Hai plans to set up sales spots at its 270 movie theaters across the country to promote cross-sales and electronic commerce.

    Crabtree & Evelyn has 30 retail shops in Hong Kong and an aggregate of 4,000 sales spots around the globe.

    The brand’s sales in Asia and North America declined last year.

    Yu expects profitability to improve due to integration of resources and supply chain, as well as fresh marketing initiatives, once the acquisition is completed.

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  • Deutsche Bank sells China’s Hua Xia Bank stake for up to $4 billion

    Deutsche Bank sells China’s Hua Xia Bank stake for up to $4 billion

    Deutsche Bank has agreed to sell its 20 percent stake in China’s Hua Xia Bank to insurer PICC Property and Casualty Co for up to 25.7 billion yuan ($4 billion) as it seeks to raise cash and reduce its balance sheet exposure.

    “As we execute on Deutsche Bank’s strategic agenda, now is the right time for us to sell this investment,” Chief Executive John Cryan said in a statement on Monday.

    Deutsche Bank has announced plans to slash 15,000 jobs, shed businesses employing some 20,000 staff and suspend dividends for two years as it seeks to bolster its finances.

    The stake in Hua Xia will generate between 23.0 billion and 25.7 billion yuan ($3.6-4.0 billion), or 3.2 billion to 3.7 billion euros at current exchange rates, depending on Hua Xia’s share price ahead of the sale’s completion.

    At the end of September, the stake was in Deutsche Bank’s books at a fair value of 3.038 billion euros.

    When Deutsche Bank first invested in Hua Xia in 2006 to tap into China’s retail banking sector, the Chinese lender’s stock stood below 4 yuan a share, compared with 11.44 yuan at Monday’s close.

    The stake sale will help boost the German bank’s common equity tier 1 capital ratio as of Sept. 30 by about 0.3 to 0.4 percentage points from 11.5 percent, it said.

    PICC said it expected relatively steady investment returns from its stake in Hua Xia, in addition to the benefits of a strategic cooperation.

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  • Alibaba and UBM to create O2O trade buying experience

    Alibaba and UBM to create O2O trade buying experience

    Alibaba’s B2B business unit, including Alibaba.com and 1688.com, has teamed with trade exhibition organiser UBM Plc to “unite the online and offline trade buying experience” initially in Asia.

    The two companies have begun exploring opportunities to link the B2B online and face-to-face trading worlds by leveraging their combined strengths, technologies and relationships. The alliance will begin with pilot programs introducing Alibaba B2B business unit’s online secure transactional platforms and business portals for companies participating in select UBM Asia trade fairs.

    Cross promotional marketing, match-making services and audience development of the two company’s brands and networks will be another key aspect in working towards the longer term goal of creating the next generation of on and offline trade experiences.

    Sophie Wu, president of the Alibaba B2B business unit, says collaborating with UBM will offer small and medium-sized enterprises a multichannel B2B trading experience.

    “They can also tap into the abundant and combined expertise of the two industry pioneers for more worldwide trading opportunities.”

    Tim Cobbold, CEO of UBM  says a fundamental element of his company’s ‘Events First’ strategy is its commitment to innovate and to deliver value for customers.

    “We are excited at the opportunity to partner with Alibaba.com, to create the next generation of trade buying experience.”

    Pilot programs for the joint collaboration will begin with UBM Asia’s Malaysia International Furniture Fair (MIFF) to be held on 1-5 March 2016 in Kuala Lumpur, Malaysia, Finefood Shanghai – part of Hotelex Shanghai – to be held 29 March to 1 April 2016 in Shanghai, China; and the co-located Materials Manufacturing & Technology (MM&T) and Fashion Access (FA) fairs to be held 30 March to 1 April 2016 in Hong Kong.

    The collaboration will commence with promotions of the UBM fairs to both parties’ respective trade audiences and Alibaba will begin offering their Trade Assurance service onsite to select exhibitors.

    Alibaba’s Trade Assurance service allows participating suppliers to offer guarantees on order quality standards and on-time shipment.

    Further pilots in the second half of 2016 will include additional business match-making components for other UBM Asia events such as Shanghai International Children Baby Maternity Industry Expo (CBME China) and Sign & LED China fairs.

    James Dong, head of B2B strategy, investment, business development and business intelligence of Alibaba.com, says the eCommerce giant sees great added values for global business traders through the collaboration.

    “Alibaba’s online trading resources and technology complements with the interaction and dialogues in the offline UBM trade shows. Such an alliance not only makes trading more cost-effective but enables higher level of trust between global buyers and sellers,” he said.

    James Dong of Alibaba, left, and Jime Essink of UBM Asia announcing the new partnership.

    Jime Essink, president and CEO of UBM Asia Ltd, says one of the challenges of the trade exhibition industry is continuing the buyer and seller dialogue and experience throughout the year.

    “Meanwhile, the limitation of a pure online trading world is the absence of the physical interaction and development of the personal relationship. With Alibaba and UBM Asia – both prominent players in our respective fields of B2B trade – working together, we see opportunities to change how online and offline trade takes place, providing improved returns and efficiencies for our customers.”