Tag: China

  • Char Raises The Bar for Steaks in Shanghai

    Char Raises The Bar for Steaks in Shanghai

    Great food is produced long before it ever gets to the kitchen. Soil, sunlight, clean air and water, and scrupulous farming practices are essential ingredients for any quality dish. Quality and authenticity are especially true for steak. It’s why CHAR in the Hotel Indigo Shanghai on the Bund serves Wagyu, Black Angus, and grass-fed beef from some of the world’s most renowned cattle ranches. Diners can explore this further starting in January 2016, on the last Thursday of every month, when CHAR will host a Beef Appreciation Steak Masterclass. The class will be from 1-3pm in CHAR for RMB 350 per person, which also includes a light lunch. Reservations are highly recommended.

    The CHAR Steak Masterclass begins with a classroom style lecture available in English or Chinese and presented by one of Shanghai’s largest and most reputable Australian beef imports. Topics covered will be on animal husbandry, why the diet is important, the various cuts of beef, the types of cows, dry aging and ultimately, how to select a quality beef product. This will be followed by a practical demonstration by Chef Willmer Colmenares himself where he will point out visual indicators of quality such as marbling, color and texture. Participants will sample some of the beef and then be able to use this knowledge when enjoying beef in the future. Lastly, Chef Willmer will discuss various means of preparation from the oven to the pan to the grill and which one is preferred. So what are some of CHAR’s 11 different steak offerings?

    David Blackmore beef is, without question, the crown jewel of CHAR’s menu. It is the Rolls Royce of beef. This Australian ranch only raises cattle with bloodlines that can be fully verified and traced back to Japan. It’s grain-fed for 600 days, using traditional Japanese farming methods. The end result is an exceptional marbling score of 9+. This means a steak that tender, succulent, and devastatingly rich. A slice of it will melt on the tongue like a pat of butter. And as if that weren’t indulgent enough, CHAR serves their Blackmore fillets with foie gras, lobster, sautéed wild mushrooms, and shaved truffles.

    Tajima Wagyu is another exemplary beef on offer at CHAR. This unique strain of cattle is what made Japanese beef famous. Its luxuriant marbling produces a luscious texture, and excellent flavor. CHAR sources beef from full-blood Tajima cattle raised in the Australian countryside. 500 days of a traditional Japanese cattle diet gives this beef a marbling score of 7–9. Guests can savor a 220g Tajima eye fillet or 300g rib eye, both seared to tender, juicy perfection.

    Australia is also renowned for world-class certified Black Angus beef, and Jack’s Creek is one of the most respected names in the business. Top-quality cattle are fed a proprietary, high-energy grain diet for 150 days to produce beef with a 3+ marbling score. It’s tender, succulent, and can be experienced at CHAR with a 250g eye fillet or a 300g sirloin.

    Grass-fed beef has built a strong reputation not only for its unique flavor but for its nutritional benefits, too (a grass diet produces a leaner meat than grain diet). Cape Grim has struck a perfect balance between leanness, tenderness, and flavor with its famous grass-fed beef. Their cattle are raised in the pristine pasturelands of Northern Tasmania, where they graze on an all-natural diet of grass. Guests can enjoy this premium beef as a 250g eye fillet or a 500g bone-in rib eye.

    But it doesn’t stop at world-class steaks. Chef Will Colmenares has created a menu of creative gourmet indulgences inspired by the cuisine of Asia, the Mediterranean, and Latin America to complement the steaks. He puts an intriguing twist on that steakhouse staple, lobster bisque, by infusing it with lemongrass and adding mussels, scallops and a lime cream. His coconut-and-lime-marinated lobster and salmon ceviche brings an unexpected freshness to the menu. Avocado and jalapeño give the dish a zesty flair. His creamy roasted bone marrow with seasonal mushrooms, smoked octopus, and potato flan is a fun and inventive exploration of taste and texture. And of course, there is no shortage of fresh seafood, with a selection of imported live oysters and CHAR’s “Seafood Harvest”, a sharable shellfish tower, featuring half a lobster, king prawns, a crab claw, Irish king razor clams, mussels, oysters, and Amur Caviar.

    Then for something sweet, there is a bevy of creative desserts, like Colmenares’s “Piña Colada”, a tropical treat made with caramelized pineapple, rum, honey jelly, and coconut ice cream. Or guests can take a decadent escape with a spicy hot chocolate fondant with tonka bean ice cream and rum ganache.

  • Apple Pay China launch slated for February

    Apple Pay China launch slated for February

    Tech giant Apple will launch its mobile payment system Apple Pay in China by early February, according to a report in the Wall Street Journal.

    Citing people familiar with the discussions, the newspaper says Apple has reached agreement with China’s four state-run banks to clear the way for the payment system to be used via its iPhone smartphones.

    The move will place it in direct competition with local online payment platform Alipay, run by Alibaba Group, and its affiliated company Ant Financial, and UnionPay, the state run monopoly credit card system.

    But while the banks are on board, the Wall Street Journal claims Apple may yet face more hurdles before it can launch the service, with banking and eCommerce regulations overseen by a number of government agencies.

  • Jollibee scouring China, US for acquisitions

    Jollibee scouring China, US for acquisitions

    Philippines-based Jollibee Foods is actively searching for at least two more established fast food or QSR restaurant chains to boost its brand portfolio.

    Jollibee chairman Tony Tan Caktiong says the company will pay up to $100 million for each investment and it is specifically looking at opportunities in China and the US.

    The comments follow the company’s recent purchase of a 40 per cent stake in fast growing US fast food operator Smashburger, for which it shelled out $99 million.

    The search is part of a strategy to increase the proportion of the company’s revenue sourced from outside the Philippines. Jollibee openly aspires to become one of the world’s largest fast food operators and it already ranks 10th as defined by market capitalisation – and first in Asia.

    But to be truly considered a global player, the company needs to derive at least 50 per cent of its income from offshore – currently that share sits at about 20 per cent.

    Earlier this month, Jollibee said it planned to enter seven new international markets over the next two years, along with 20 additional outlets in Vietnam, and another 12 in Brunei during coming months.

    Dennis Flores, VP for international operations of Jollibee, has revealed the company plans to take its mainstay Jollibee burger restaurant brand Jollibee into the UK, Italy, Canada, Malaysia and Oman in 2016. Forays into Australia and Japan will follow in 2017.

    Jollibee, publicly listed in the Philippines, had been actively seeking an investment in a leading US growth brand to gain a foothold in the US, as part of its broader plan to become an international restaurant operator. It currently operates and franchises a network of more than 3000 restaurants worldwide under the trade names Jollibee, Chowking, Greenwich, Red Ribbon, Yonghe King, Hong Zhuang Yuan, Mang Inasal, Burger King Philippines, San Pin Wang, and Jinja Bar. Jollibee also has a 50 per cent interest in the Super Foods Group, which operates and franchises restaurants under the Pho 24 and Highlands Coffee brands throughout Vietnam.

    Jollibee’s network outlets have reached 3,023 worldwide, with 2,393 of them in the Philippines, and 630 outlets abroad.

  • BHG REIT IPO to raise $120 million

    BHG REIT IPO to raise $120 million

    Chinese retail player Beijing Hualian Group is planning to list its BHG REIT in Singapore this year.

    If it proceeds, it will mark just the first IPO on the Singapore SGX Mainboard in 2015.

    The BHG Retail REIT wants to issue 150.1 million shares at $0.80 per unit which gives the listing a value of $120 million.

    BHG REIT’s initial portfolio will comprise a 60 per cent interest in Beijing Wanliu Mall in Beijing; Hefei Mengchenglu Mall in Hefei’s North First Ring retail hub; Chengdu Konggang Mall, in an emerging residential area in Chengdu; Dalian Jinsanjiao Property, leased to a hypermarket; and Xining Huayuan Mall in Xining’s Ximen-Dashizi retail hub. These properties have a combined gross floor area of about 263,688 sqm.

    Under its plan, BHG’s existing Singapore-incorporated units Beijing Hualian Group (Singapore) International Trading and Beijing Hualian Mall (Singapore) Commercial Management, will subscribe for 148.31 million and 24.636 million shares, respectively.

    And it has four cornerstone investors already on board who would subscribe for a total of 169.651 million units. These investors are China Hi-Tech Holding Company, China Life Insurance Company, China Merchants Bank Asset Management and Dr Chanchai Ruayrungruang.

    With all these investments rolled together, the gross proceeds of the IPO would come to $394.2 million and give the REIT a market capitalisation of about $597.2 million post float.

    The listing is sponsored by Beijing Hualian Department Store Company, part of the BHG Group, with more than 20 years in retailing. The company manages retail properties, operates supermarkets and hypermarkets and retail distributorships as well as a luxury department store in Beijing.

    “As part of the BHG Group, BHG Retail REIT will benefit in terms of acquisition growth in China where the sponsor has an active real estate presence,” the group says in its prospectus.

  • New Valentino Shanghai IFC mall

    New Valentino Shanghai IFC mall

    Luxury fashion brand Valentino has opened a new boutique in Shanghai.

    The new Valentino Shanghai IFC Mall boutique features 490 sqm of retail space.

    Valentino Shanghai IFC mall 5

     

    It was developed by creative directors, Maria Grazia Chiuri and Pierpaolo Piccioli, together with British architect Sir David Chipperfield.

    Valentino Shanghai IFC mall 3

     

    Valentino says the store “perfectly represents the core values of the Maison: luxury, elegance and Italian craftsmanship.”

    Valentino Shanghai IFC mall 2

    The store concept combines old and new, heritage and style co-exist in the idea of a new future that is not nostalgic, but full of memories.

    Valentino Shanghai IFC mall 4

    The Shanghai IFC mall store carries womenswear, menswear and accessories.

    Valentino Shanghai IFC mall 1

    IFC Mall in the Pudong financial district is one of the premium retail destinations in the city.

  • Sa Sa plans new store concepts

    Sa Sa plans new store concepts

    Hit by falling sales in the tourist downturn, Hong Kong beauty retailer Sa Sa plans new store concepts and diversification to restore growth.

    Reporting a 10.6 per cent decline in sales to HK$3.778 billion in the first half of the current year, and a 55 per cent plunge in profit to $153 million, Sa Sa revealed a strategy to “develop other businesses beyond traditional operations”, including tapping the opportunities of O2O and cross-border eCommerce.

    “The group’s O2O initiatives will initially launch in Hong Kong and gradually extend to mainland China. For the China market, the O2O initiatives will significantly broaden product offerings in its physical stores through online sales and cross border fulfillment. The group aims to use different channels and to leverage a variety of online partners to increase online exposure, including operating physical stores to promote O2O in Free Trade Zones, and cooperating closely with major China online operators, all with their unique positioning and correspondingly different opportunities,” the company said in its interim report.

    New store concepts are also on the drawing board.

    “The group’s strategy for new store concepts includes introducing more trendy and lifestyle concepts to attract young and trend-setting customers, much improved product display, and more emphasis on enhancing the shopping experience.”

    Sa sa says it also aims to place more emphasis on the unique shopping experience with Sa Sa through improved product displays, while changing the mindset of its beauty consultants to one that is more receptive to consumer preferences.

    “In addition, the group will substantially strengthen its online marketing efforts, including the use of social media channels to improve interactivity.”

    Hong Kong & Macau

    Sa Sa says its first half year was marked by pressure from a series of negative factors in the retail market of Hong Kong during the first half of the year. Retail sales in Hong Kong and Macau decreased by 11.1 per cent to $3.010 billion.

    “The cosmetics market in Hong Kong continues to face strong headwinds due to the slowing of mainland China tourist arrivals, their reduced spending, and weak local consumption sentiment. The one-visit-one-week policy for mainland visitors is gradually taking its toll on the market, while the strength of the Hong Kong dollar and depreciating yuan will continue to make shopping overseas more attractive for both mainland China and local consumers. Intensifying competition within the cosmetic industry is a further challenge, with ongoing discount and promotion programmes having an ongoing impact on profitability,” the company reported.

    “Although rental pressure is expected to moderate in a slowing market, rental reductions still lag behind weak sales performance. In the face of these challenges, The group rationalised its retail network from 287 to 281, a net decrease of three stores each for both “Sasa” stores and single-brand counters.”

    Mainland China

    In Mainland China, the stores’ profitability continued to improve, but weak operational and product management led to a decline in turnover, as well as an increase in the inventory provision. Overall turnover for Mainland China operations decreased to HK$148.9 million, a decrease of 8.7 per cent in local currency terms, while same store sales growth in local currency decreased by 9.8 per cent for the period. Loss for the period amounted to HK$24.5 million. The group has recognised the need for more management resources to improved management, and is currently using external management resources on a contract basis to allow for more time to develop its own management structure and training. The group is also seconding experienced staff from Hong Kong to improve attractiveness of product offerings and inventory management.

    Taiwan

    Turnover in the group’s Taiwan business decreased to HK$130.2 million during the period, representing a drop of 2.2 per cent in local currency terms. Same store sales fell 8.7 per cent in local currency. The number of mainland China consumers in Taiwan is expected to increase in view of the country’s enhanced infrastructure and retail space, and the introduction of unlimited visa quotas for high-end Mainland Chinese tourists who have greater spending capacity. The group has already opened stores in tourist locations to tap the potential of increasing in mainland Chinese tourist arrivals.

    Singapore & Malaysia

    Flat sales across the Sa Sa Singapore network has prompted a rethink of the brand’s local network.

    In the first half year, Sa Sa reported turnover of HK$112.8 million (S$20.445 million) in Singapore, remaining flat in local currency terms over the same period last year.

    “The group will continue to build scalability and profit potential by closing inefficient stores and opening stores in new malls with good potential,” the company said in its interim trading statement.

    Meanwhile, turnover for Sa Sa Malaysia was HK$141.9 million, an increase of 2.5 per cent in local currency terms over the same period last year. However, same store sales decreased 8.5 per cent in local currency.

    “Sales and profit growth were restrained by the implementation of GST [on April 1], which adversely impacted store productivity during the transitional period. This effect is expected to be normalised in the second half.”

    Chairman’s view

    Chairman and CEO Dr Simon Kwok put on a brave face on the results:

    “Sa Sa has a long track record of delivering outstanding success in all economic climates and in the face of the most severe headwinds and difficulties. We firmly believe that in spite of the current difficult business environment we are now facing, we can still turn challenges into opportunities and further consolidate our competitive advantages. The flexibility of our business model, with an ability to rapidly adapt to new circumstances, markets and trends, will continue to support our position as a leading provider of beauty products in the Asia Pacific. We also believe that the resilience and adaptability of our loyal staff and the forward vision of our outstanding management team will ensure that we deliver sustained, satisfying growth for many years to come.”

  • Philippines Welcomes Chinese Smartphone Huawei Expansion

    Philippines Welcomes Chinese Smartphone Huawei Expansion

    Chinese telecommunications equipment maker is extending its reach to Southeast Asia’s retails sector.

    Huawei has launched its first experience store at the SM Mall in Manila. This new experience store represents another major step of the overseas market expansion of Huawei and the company continues to develop and grow its brand influence.

    With an area of 110 square meters, the Huawei experience store adopts a full-white minimalist design representing the “Huawei and I” idea, which aims to establish a better interaction between Huawei and its end users. In this store, users can experience Huawei’s Android watch and Google’s Nexus 6P smartphone made by Huawei.

    Charles Wu, head of the Philippines region of Huawei, said at the store opening ceremony that they launched new technologies to help users improve their quality of life. Their existing devices are widely used by users every day. Huawei provides end-to-end solutions and they introduce new products to the market with their technologies.

    Jojo Vega, Huawei’s consumer business manager, said that consumers in the Philippines show great interest in Huawei’s products. The company is now more confident and believes its stronger platform can attract more consumers and promote more interactions.

    Huawei now has 40 branded retail stores and 32 simple sales outlets in the Philippines. The company plans to increase the number of its branded stores to 60 in the country by the end of 2015.

  • AirAsia pushes new regional schedules, secondary hub growth

    AirAsia pushes new regional schedules, secondary hub growth

    Malaysia-based low cost carrier AirAsia Berhad plans to launch its latest direct flight between tier-two Chinese city Guangzhou and Langkawi, Malaysia at the end of January 2016.

    The choice of tourist destination Langkawi for the group’s latest international route underlines the company’s strategy to develop services on less heavily serviced routes. The schedule will see 4X-weekly Airbus A320 departures.

    AirAsia CEO Aireen Omar said the airline is focused on expanding its connectivity into China, especially second-tier cities such as the recently launched Changsha-Kuala Lumpur service.

    This secondary city approach is echoed by the AirAsia Group’s introduction of flights from Changsha-Bangkok operated by Thai AirAsia; a Krabi (Malaysia)-Guangzhou (China) service by AirAsia; and a Wuhan (China)-Kota Kinabalu (Malaysia) service, also by AirAsia.

    Additionally, the Thai subsidiary has introduced new international schedules from its newest regional hub at Thailand’s U-Tapao International Airport to Macau, Singapore, and is reportedly looking at new routes to India.

    “We will continue to add more aircraft orders as we go further because we are not only growing in Malaysia, but also in Thailand, Indonesia, the Philippines, India and hopefully in Japan,” Omar said.

    AirAsia is scheduled to take delivery of its first Airbus A320 neo aircraft from the 2016 second half, which Omar said will be used to expand existing regional business as well as act as fleet replacements.

  • A mobile app enables Chinese consumers to buy from overseas retail websites

    A mobile app enables Chinese consumers to buy from overseas retail websites

    15 million consumers have posted reviews to Red, which has sold $110 million worth of products in its first six months.

    Nearly 600 million Chinese consumers connect to the Internet via mobile devices, and many of them are part of China’s emerging middle class that craves foreign goods. A startup has sold more than $100 million in six months by letting those consumers shop for imported products via a mobile app.

    The app, called Red, was launched in January 2014, but at that time did not sell any products, only allowing consumers to review foreign products. Since then, some 15 million consumers have written reviews of products from overseas brands, says Charlwin Mao, who created Xingyin Information Technology Co., Ltd., the operator of Red, in Shanghai two years ago.

    Mao, 31, who received his MBA from Stanford University, named the app Red after Stanford’s school colors.

    As Chinese consumers came to learn about foreign products, they wanted to buy them, Mao says. That led him in December 2014 to add e-commerce capabilities to the app, enabling consumers to buy some of the items that others review. In the following six months Chinese consumers bought 700 million yuan ($110 million) worth of goods through the app. Mao says many items sell out in two hours because he offers only items that are hard to find in China.

    “China has a huge demand for imported brands, but many consumers lack information about overseas brands. For example, many oversea products’ descriptions are written in foreign languages and are hard for Chinese people to understand,” Mao says. “My solution was to develop an app that enables China’s younger-generation shoppers to discover the best global products from peer reviews, not from salespeople.”

    Today, he says, about 15 million users write about 1 million posts every month and they lead others to respond, such as by “liking” 20 million posts per month. 82% users are under 30 years old and 90% are female, according to Mao.

    Most of those posting content to Red are Chinese consumers traveling abroad or Chinese living overseas. China’s Minister of Commerce, Gao Hucheng, said in a recent press meeting that more than 100 million Chinese visited other countries in 2014 and they bought more than 1 trillion yuan ($157 billion) worth of products during their trips.

    Red offers about 10,000 products. It owns about 80% of the merchandise it sells, with the rest being sold by outside merchants through the Red app. Popular categories on Red include cosmetics and fashion. There are products on Red from U.S. supplements retailer GNC Holdings Inc., No. 164 in the Internet Retailer 2015Top 500 and fashion boutique Otte as well as from Japanese brands Panasonic, Casio and Kose.

    Red operates a warehouse inside of a cross-border e-commerce free trade zone in the city of Zhengzhou, where imported products can be stored, then pass through an expedited inspection by  Chinese customs after an online shopper places an order. Red’s customers typically receive their orders in two to three days.

    Companies that sell products through online communities like the one Red created are appealing to investors, Zhu Xiaohu, managing director of GSR Ventures, said at a recent cross-border conference in Guangzhou. GSR has invested in Red as well as in LightInTheBox Holding Co. Ltd., a Beijing-based company that sells Chinese products online to consumers outside of China. “E-retailers, like LightInTheBox, need to invest a lot of money on ads to get new users,” Zhu said. “Now many investors like companies selling through an online communities because these companies can generate traffic without pouring money into marketing.”

    Mao says his company has raised tens of millions in funding and is now seeking a Series B infusion of capital.

  • Bauhaus posts loss as margins squeezed

    Bauhaus posts loss as margins squeezed

    Fashion retailer Bauhaus has reported a net loss of HK$26.6 million for the first half year after sales tumbled in key markets.

    In Taiwan, where it has 95 stores and counters, stagnant retail sentiment and weak consumption presented great challenges, with same-store sales tumbling 18 per cent.

    In Mainland China, where the group has self-managed shops in Beijing, Shanghai, Guangzhou, Nanjing and Suzhou and a franchise network focusing on the second-tier cities, turnover dropped by 4.9 per cent to about $58.4 million and same store sales slipped two per cent.

    And in Hong Kong and Macau, same store sales declined by seven per cent in the first half year.The two territories account for about 73 per cent of the locally listed company’s sales through 90 stores, less than half its total network of 228.

    The group’s turnover is mostly from its major in-house labels like Salad, Tough and 80/20, and licensed brands including Superdry.

    Bauhaus opened seven new stores in  in Hong Kong and Macau in the six months to September 30 as it “continued to enrich its shop portfolio to be more attractive, efficient and competitive”.

    “However, retail performance in many sectors across the region deteriorated, possibly due to less spending from both inbound tourists and local citizens as a result of the growth slowdown in Mainland China, strong local currency and volatile finance markets. In addition, the operating costs in the region still remained high in general, particularly rentals, further cutting profit margin of the retailers.”

    Profit before tax in the two territories dropped by 57.2 per cent to about HK$24.1 million (compared with $56.3 million in the same period last year).

    Bauhaus said in its half yearly results filing that gross profit across the whole business decreased by about 11.1 per cent to $353.9 million, with gross margin declining by two percentage points to about 60.5 per cent.

    “Global economic performance was weaker than expected during the six months. The slowdown of growth in Mainland China together with the strengthening US dollar, which in turn resulted in a strong Hong Kong dollar against most Asian currencies, gradually had an obvious negative impact on inbound tourism and local retail consumption,” the company said.

    However, the group says its sales and results are greatly affected by seasonality, with the first half of the year traditionally less important than the second.

  • Korea’s Coffine Gurunaru plans China foray

    Korea’s Coffine Gurunaru plans China foray

    Korean coffee franchise Coffine Gurunaru is to open one of its largest stores in Hainan, China in the first stage of a planned China rollout.

    The new store is in the middle of Lan Kwal Fong St, the main street of Hainan, and is described as “exceptionally large in size” for a coffee franchise.

    Hainan, sometimes referred to as the ‘Hawaii of the East’, is a major holiday destination for Mainland Chinese.

    Management of Coffine Gurunaru say the extraordinary size of the cafe is relative to the size of the development where it will be located. The world’s largest resort group, Mission Hills, owns resorts, golf courses and shopping malls. It is building the world’s largest K-town in Hainan, where Coffine Gurunaru will open its Chinese flagship.

    The interior will be designed to be “modern and natural”, says a spokesman for the coffee house.

    Korea’s Coffine Gurunaru

    Coffine Gurunaru is a compound name combining coffee and wine. It was the first coffee house in Korea to offer both coffee and wine. Founded in 2007, it has about 120 stores in South Korea, including franchised stores.

    The cafes’ interiors, including the chairs and walls, are decorated in a cheerful purple, intended to refer to the color of wine.

    Besides beverages, the stores serve a range of salads, panini sandwiches, signature cupcakes and honey bread.

    Coffine Gurunaru has not disclosed how many stores it will open in China, but has confirmed it will build a network.

    Korea’s Coffine Gurunaru interior

  • Jumei doubles sales, but still in the red

    Jumei doubles sales, but still in the red

    Jumei International, the Chinese online retailer of beauty products, has reported a sales increases of 99.9 per cent – but it still posted a quarterly operating loss.

    In the quarter to September 30, net revenue reached RMB1.9 billion (US$305.5 million). Total net GMV increased by 35.6 per cent to RMB2.3 billion (US$358.7 million), driven primarily by a 30.8 per cent rise in the number of active customers and a significant 89.5 per cent boost in total orders.

    But gross profit as a percentage of net revenues decreased to 26.2 per cent (from 38 per cent)in the same period of 2014, primarily due to the company’s shift in strategy from beauty product marketplace sales to merchandise sales that started in September 2014, and inventory optimisation activities for Jumei Global.

    The net loss attributable to Jumei’s ordinary shareholders was RMB86.9 million (US$13.7 million), compared with net income attributable to Jumei’s ordinary shareholders of RMB120.0 million in the same period of 2014.

    Leo Chen, founder and CEO of Jumei, appeared upbeat about the results however.

    “Our third quarter net revenue growth continues to be strong… driven by Jumei Global and rapidly shifting consumption patterns in China as consumers upgrade their tastes, preferences and expectations for products. We continue to strengthen our position as a leading import cross-border eCommerce platform in China and are pleased to see both active customers and number of orders grow rapidly while maintaining a high repeat purchase rate,” he said.

    “We continue to add world renowned brands such as Shiseido and KOS to our Jumei Global platform. This is the first time these Japanese beauty groups have directly authorised a cross border eCommerce company in China to carry their merchandise. This means that going forward, new products by both brands will be launched simultaneously in Japan and on Jumei Global in addition to those already on offer in Jumei’s domestic platform. Chinese consumers will now be able to access international beauty trends at the same time they take place in the brand’s home markets.”

    In the fourth quarter of 2015, the company says it expects total net revenues to be between RMB1.83 billion and RMB1.93 billion, representing a year-over-year growth rate of 80 to 90 per cent.

  • Alibaba launches Taiwan, Hong Kong venture funds

    Alibaba launches Taiwan, Hong Kong venture funds

    China’s Alibaba has announced two venture funds to help entrepreneurs with projects who can leverage the resources of Alibaba’s ecosystem.

    A HK$1 billion (US$130 million) venture fund – named Entrepreneurs Fund for Hong Kong – will be managed by venture capital firm Gobi Partners.

    A second – Entrepreneurs Fund for Taiwan – will have initial capital of NT$10 billion (US$316 million) and be managed by CDB Capital, a division of China Development Industrial Bank (CDIB).

    As well as cash, the two new funds will offer 200 internship opportunities annually for graduates and final year students of local tertiary educational institutions. Successful applicants will be able to work for between six and 12 months at Alibaba Group companies in Mainland China.

    Andrew Lee, the former CFO of EnTie Bank will act as executive director of the Taiwan fund, with directors including Charles Yen, co-founder and principal of the AAMA Taipei cradle program and Joseph Tsai, senior EVP of Cathay Financial.

    The fund will be headed by Cindy Chow as executive director. Other directors include Dr Allan Zeman, founder and chairman of the Lan Kwai Fong Group, and Savio Kwan, an independent business consultant who served as president and COO of Alibaba from 2001 to 2003.

    The funds are intended to help entrepreneurs and position Hong Kong and Taiwan as business hubs engaged regionally and globally, with a mandate to invest in qualifying companies in the startup, growth and expansion phases. Selected ventures will be able to leverage the platforms in the Alibaba ecosystem to offer products and services to mainland China and globally, given that Alibaba operates in eCommerce, logistics, mobile platforms, cloud computing and financial services.

    Said Joseph Tsai, executive vice chairman of Alibaba Group: “At Alibaba, our mission is to make it easy to do business anywhere. We are passionate about fostering entrepreneurial spirit and hope the resources provided by the fund will help unleash potential for innovation and entrepreneurship.”

  • China’s Online Retail Giant Dangdang Set to Open 1000 Real-world Bookstores by 2018

    China’s Online Retail Giant Dangdang Set to Open 1000 Real-world Bookstores by 2018

    Dangdang, a Chinese online retail giant, is eyeing to open 1,000 real-world bookstores within three years.

    The ambitious plan is contrary with the recent trend in which everything moves to go online. With the advent of online bookshops, several traditional ones have either cut back their activities or declared bankruptcy.

    Yi Yali, a traditional bookstore owner, shared that “the bookstore business has been in a decline since 2010 due to rising costs. This includes expensive human resources and rents.”

    It was between 1997 and 2010 when “real bookstore business reached its peak with its rapid growth,” Yi said, adding that a number of “featured bookstores have emerged at that time.”

    However, for Ying Changlong, General Manager of Shenzhen Publication and Distribution Group, the conventional bookstore business has not yet entered the so-called “sunset” industries.

    “It is the failure of business strategies rather than the fall of brick-and-mortar bookstore industry itself,” Ying said. “The biggest challenge for traditional bookstore lies in its single form, which makes it hard to build strong ties with customer. As such, bookstore operators need to be more creative.”

    One of the most successful business models is the one utilized by the Taiwan-based Eslite and Beijing-based SDX Joint Publishing Company. The two team up with other retailers like art galleries and coffee shops to create a “one-stop cultural shop.”

    Dangdang.com assistant executive Zhang Wei remarked that the firm wants to follow this scheme.

    “Our bookstores in the first- and second-tier cities will be as large as one to two square kilometers, and they will become a cultural complex with sales of books and other related products with higher profit,” Zhang said. “Meanwhile, we will team up with renowned shopping malls in an attempt to substantially cut bookstores management costs.”

    Simultaneously, the bookstore will also combine its online and offline businesses with its customer services.

    The first offline bookstore, occupying 1,200 square meters, is set to be launched in Changsha City next month.

  • China’s Slowdown Is Killing Its Luxury Market

    China’s Slowdown Is Killing Its Luxury Market

    Many investors are unfamiliar with the Chow Tai Fook Jewellery Group, but it is in fact the world’s largest publicly traded jewelry chain.

    The company reported its first half profit for 2015 plunged 42 percent due to weak demand in Hong Kong and Macau and an economic slowdown, Macau Daily Times noted.

    Chow Tai Fook’s net income fell to HK$1.56 billion ($201 million) for the six-month period ending in September. In the same period a year ago, the company’s net income was HK$2.69 billion. Sales for the six-month period fell 4.1 percent from a year ago to HK$28.1 billion, while same-store sales fell 18 percent in Hong Kong and Macau, but rose 0.1 percent in mainland China.

    The company warned investors back in early November that its profits are expected to decline due to the weakness in Hong Kong and Macau, along with an unfavorable sales mix of lower-margin gold products and unrealized hedging losses.

    Is Tiffany Winning Where Chow Tai Fook Is Failing?

    Tiffany & Co. reported its third quarter results on Tuesday. Commenting on the Asia-Pacific region, the company said that total sales rose 6 percent in the third quarter and comparable store sales rose 2 percent. Total sales and comparable store sales in the year-to-date period rose 6 percent and 4 percent, respectively.

    On a constant-exchange-rate basis, Tiffany said that it saw “healthy sales growth” in China, but sales declined again in Hong Kong and Macau.

    Tiffany also announced a total sales and comparable store sales growth in Japan of (FX-neutral) of 34 percent and 24 percent, respectively. According to a report by Bloomberg, Tiffany is “eating Chow Tai Fook’s breakfast” as Chinese tourists accounted for a “significant” portion of the growth Tiffany experienced in Japan.

    Bloomberg also noted that Chinese goods don’t have a “particularly good” reputation among Chinese shoppers, which might also explain why Tiffany is seeing success in a region where Chow Tai Fook “should be cleaning up.”