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Tag: China

  • Vertu eyes China

    Vertu eyes China

    Luxury phone brand Vertu says its new Hong Kong investor will allow the brand to embark on its next growth phase – into Mainland China.

    Vertu will continue to operate its global business from its UK Headquarters with new partner, Godin Holdings, a Hong Kong based company backed by a group of international investors. This move will support accelerated growth for Vertu and maximise its ‘Luxury Tech’ market leadership position.

    Since shipping its first phone in 2002, Vertu had sold around 450,000 devices worldwide, with an average selling price of around £5000 per handset last year.

    “Godin brings with it a significant understanding of the world’s fastest developing luxury market, China, as well as an ability to help with the technical development of a future range of industry leading Vertu products,” the company said in a statement.

    Vertu runs 70 of its own boutique retail stores and is sold through 430 partner stores in 66 countries. It is not yet clear if the brand will expand in China through its own store network of partner with an existing retailer.

    The new investment has led to a management shakeup with CEO Massimiliano Pogliani stepping down after three years

    As part of the new investment, a number of changes have taken place within Vertu’s management, replaced by Billy Crotty. Justine Rouch, COO and Davide Vassena, VP product and marketing, have both also left the company.

    Crotty says the company has a clear vision for the next phase of its growth.

    “Vertu is regarded as the clear leader in the luxury mobile category; a company with a strong USP, brand equity, product roadmap and established retail network; the ‘Handmade in England’ aspect of Vertu is appreciated globally as a particularly valuable, fundamental brand strength.

    “Godin Holdings’ investment will allow Vertu to maintain its leadership position within the luxury technology industry and to expand its already world class product portfolio.

    “Mainland China is a key market for Vertu, alongside its other pan-Asian and European business. All in all, the Godin team are perfectly placed to offer both investment into the company, as well as mobile technology industry expertise and contacts. Godin believes that significant growth opportunities lie ahead for Vertu, within specific markets as well as through new product developments.”

    A key part of Vertu’s future is the launch of Vertu Club, explains Crotty.

    “Vertu Club will be the umbrella for the evolution of our on-device and off-device services. Our aim is to ramp up the already very close relationship we enjoy with our customers through Concierge, Life and Certainty apps, in order that it can inform, to an ever increasing degree, not only the portfolio of services we offer, but the manner in which we do so, in order that we create a world class personal service, unattainable in any other format than that which can be achieved by being a member of the Vertu Club.”

  • China’s QKL Stores’ sales decline

    China’s QKL Stores’ sales decline

    Nasdaq-listed Chinese supermarket chain QKL Stores says its revenue fell four per cent in the last quarter, its profit by 4.5 per cent.

    “Our third quarter results generally met our levels of expectation,” said Zhuangyi Wang, chairman and CEO.

    “The variety, value and freshness of our products continue to resonate with our customers driving sales higher. This store growth was also driven by in-store promotional events such as store anniversary celebrations.”

    But he said sales and profit were impacted by “a challenging environment” for retail businesses, mainly due to the rising costs and the emerging eCommerce channel.

    “However, we are still confident on the domestic needs because of the urbanisation of the third and fourth tier cities that we will achieve a fundamental improvement in the consumer purchasing power during the process.”

    Third quarter revenue totalled $58.6 million, down from $61.1 million in the same quarter last year. Gross profit was $9.8 million, down from $10.3 million.

    “We look forward to the upcoming holiday season as we have a number of exciting marketing initiatives planned,” said Wang.

    “Our balance sheet is healthy with a strong cash position, low level of debt and stable flow of cash from operations. We continue to make progress with our store operations and that can result in greater sales and profits over time.”

    Based in Daqing, China, QKL Stores is a regional supermarket chain company operating in Northeastern China and Inner Mongolia. It operates 45 supermarkets, hypermarkets and department stores – two less than at the same time last year.

  • Jacob Delafon China opens first store

    Jacob Delafon China opens first store

    Jacob Delafon, a leading French fashion bathroom brand, has launched its brand in China and opened its first store there.

    The new Jacob Delafon China showroom opened on Tuesday, November 17 in Shanghai.

    Bruno Chenesseau, kitchen & bath design director of Jacob Delafon Europe, Middle East and Africa, said given the company is based in Paris, “we were naturally inspired by the city”.

    “By its architecture, its atmosphere, its unique diversity and above all, by the elegant and audacious Parisian style. It is a truly creative playground,” he said.

    The heritage of the Jacob Delafon brand helps the design team to “jump out of the box” and present a more elegant lifestyle.

    “Jacob Delafon speaks the same language with French fashion trend, and is inspired from the elegant and independent Paris ladies,” said Chenesseau.

    “Then, from these observations, Jacob Delafon created three brand “universes” of collections. The Presqu’ile collection is inspired by the flea markets, a perfect mix between bric a brac and eclecticism. The Terrace collection takes place in an industrial loft with refined lines. And the Stillness collection is the modern reinterpretation of an Haussmannian apartment. The brand spreads these different universes throughout our design, which makes Jacob Delafon’s products so unique and recognisable among others.”

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  • Perfect Shape plans more China stores

    Perfect Shape plans more China stores

    Listed slimming and beauty services chain Perfect Shape plans more stores as demand soars in Greater China.

    Perfect Shape provides slimming and beauty services and sells slimming and beauty products in Hong Kong, the Mainland and Macau. The company provides medical beauty services under the brand name of Dr Face, including injection treatments such as Botox, Restylane and Sculptra, as well as laser treatments for hair removal, skin rejuvenation and depigmentation. The company operates more than 60 stores or service centers.

    In the six months to September 30, the group recorded revenue of HK$457.1 million, up 41 per cent year on year. Profit attributable to shareholders was $75.1 million, up $4.1 million year on year.

    The company says combined Hong Kong and Macau revenue soared 85.9 per cent, with Macau sales up 134 per cent.

    The company attributes its success to tapping into the high technology beauty segment in Hong Kong soon after listing in 2012, which is now bearing fruit.

    “Moving forward, management remains optimistic about the group’s prospects in the principal markets of Hong Kong and the PRC, despite modest economic growth anticipated on both sides of the border,” the company said in its stock exchange filing.

    “While the group’s development in Hong Kong remains promising, its business prospects in the PRC shows even greater potential. With an increasingly large number of people who are obese, and generally more and more individuals who are overweight, the need for slimming services will continue to rise. And given that there is a growing middle class, particularly women who care about their appearance, the demand for high technology beauty and slimming services will grow further.”

    Perfect Shape plans to replicate its high tech model in the Mainland market, and thereby provide one-stop services to local customers.

    “Part of the group’s development road map will involve further expansion of its store and business network in Greater China in the coming period. In addition, we will invest still more in our workforce, including enhancing the service quality delivered by our frontline staff through ongoing training and information sharing.”

  • JD.com posts huge GMV sales increase

    JD.com posts huge GMV sales increase

    JD.com, China’s second largest eCommerce player, has reported a 76 per cent increase in core GMV sales in the third quarter to RMB111.0 billion (US$17.5 billion).

    Excluding Paipai.com – which the company is closing down by the end of this year – unique customers, annual active customer accounts increased by 62 per cent to 126.9 million year on year.

    Net revenues for the quarter RMB44.1 billion (US$6.9 billion), an increase of 52 per cent from the third quarter of 2014.

    The company fulfilled 329.7 million orders during the quarter, an increase of 85 per cent from the 178.2 million of the same period in 2014.

    But JD.com still fininshed the three months with a loss of RMB530.8 million (US$83.5 million) and a net margin of negative 1.2 per cent.

    “This was another quarter of strong growth, as JD.com increasingly becomes China’s source for fast, worry-free shopping online,” said Richard Liu, founder and CEO.

    “Our partnership with Tencent’s dominant Weixin and Mobile QQ platforms puts JD.com at the fingertips of virtually every Chinese mobile online consumer, and continues to drive rapid user growth. Looking ahead, we will stay focused on enhancing user experience, deepening ties with leading brands and working to further expand JD.com’s leadership in mobile eCommerce.”

    Sidney Huang, JD.com’s CFO, said third quarter results were “very healthy, with encouraging user growth and robust performance across all of our product categories”.

    “As China’s direct B2C eCommerce leader, JD.com is benefitting from the industry-wide shift to direct-sales eCommerce as we continue to invest strategically in our core business and high-growth initiatives,” he said.

    As at September 30, JD.com had approximately 90,000 merchants on its online marketplace and a total of 94,615 full-time employees.

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  • Vipshop sales soar

    Vipshop sales soar

    Vipshop, the Chinese online discount retailer, says it boosted sales by as much as 63 per cent in the last quarter.

    The US-listed company says it expects revenue to be between RMB8.6 billion (US$1.349 billion)  and RMB8.7 billion ($1.365 billion). But that is less than its earlier guidance of RMB9.1 billion to RMB9.3 billion.

    “The weaker-than-expected preliminary third quarter results for total net revenue are partially driven by the warmer-than-expected fall weather in China, which caused customers to delay purchases of relatively higher-priced autumn and winter apparel,” the company said in a stock exchange disclosure.

    The preliminary, unaudited results are based on management’s initial review of operations for the quarter to September 30, and remain subject to change based on management’s ongoing review of the third quarter results.

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  • China retail sales surprise

    China retail sales surprise

    October figures for China retail sales show a surprise 11 per cent leap year on year.

    It seems that while the commentators were talking about how China’s economy was nodding off, consumers were out spending.

    Total retail sales of consumer goods during the month reached 2,827.9 billion yuan, or US$442.939 billion.

    From January to October, the total retail sales of consumer goods reached 24,435.9 billion yuan, up by 10.6 percent year-on-year.

    October retail sales in urban areas rose 10.8 per cent and in rural areas by 12.2 per cent.

    From January to October, retail sales in urban areas rose 10.4 per cent and in rural areas by 11.8 per cent.

    Online sales for the first nine months of this year totalled 2,948.4 billion yuan, an increase of 34.6 per cent year-on-year. Sales of  food and clothing rose 41.2 per cent and 24.4 per cent respectively.

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  • Parkson expands into food to stem losses

    Parkson expands into food to stem losses

    Hit with a 15 per cent sales slump since the introduction of GST in Malaysia, embattled department store operator Parkson is set to enter new categories – gourmet food, supermarkets, beauty  – and import new fast fashion brands.

    The company has invested RM100 million (US$22.8 million) into a rebranding and repositioning project.

    It will also introduce variations of its reform into other countries where it operates: Vietnam, Indonesia, China, Myanmar and Cambodia.

    Parkson Retail Asia director Datuk Magic Lee said in a media briefing that the group expected sales to fall as much as 15 per cent after GST came into effect and that the company has also been hit by a heavy devaluation of the ringgit.

    “We will keep doing this. Retail needs to keep changing or it will get boring. We will continue investing in new businesses, bringing in new brands, even in food and beverage. We plan to bring in a bakery in the future.”

    Parkson plans to launch three “affordable” fast fashion brands from Korea into Malaysia soon, targeting about RM60 million in annual sales from the stores in stores. Those brands are Spao, Mixxo and Who.A.U. The first concessions will open on November 27.

    Lee says the company plans to build a portfolio of about 100 brands in its apparel offer and will also continue to open new stores throughout the region.

    “At the moment, we are very aggressive in South-East Asia. In Malaysia, we open three or four new outlets each year, and in Indonesia between three and five outlets,” he said.

    “In Southeast Asia, we are still fairly competitive. Competition here [in Malaysia] is not so severe. Many strong brands have not come to Southeast Asia yet, so we can bring these brands in.”

    Lee says while the company expects the weak consumer sentiment in Malaysia to continue, the company plans to remain proactive “so when the market is ready, we are ready too”.

    He hopes the rebranding campaign will fuel at least a 50 per cent rise in sales year on year.

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  • Bizpluss.in targets $20 billion sales

    Bizpluss.in targets $20 billion sales

    Indian B2B eCommerce startup Bizzplus.in has added 32 suppliers from China to its portfolio, giving 50 brands direct access to its Indian business customers.

    And the company says it aims to become a US$20 billion turnover business within the next three years.

    Its next priority is to add suppliers from the UK, UAE and Europe as it aims to supply 100,000 retailers in the first phase of its growth plan.

    Among the 50 new Chinese suppliers are TCL, Toshiba and G’Five.

    “This new venture will disrupt the long supply chain and will directly connect the retailers and suppliers between India and China for better pricing,” said Yasharth Verma, executive director of Bizpluss.

    “Today with 100 per cent production, the demand is only for 50-60 per cent compared to 120 per cent before. Suppliers from electronics, electrical home appliances and home furnishing are the top categories from China region. Next, we will get children products and garments from European countries,” he said.

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  • China is our future says Walmart Asia CEO

    China is our future says Walmart Asia CEO

    China will drive more than half the world’s retail growth over the next decade, Walmart Asia CEO Scott Price has told the Asia-Pacific Economic Cooperation (APEC) CEO Summit in Manila.

    Despite slowing economic growth, the world’s largest retailer still believes in the power of the world’s most populous nation, referring to October’s retail sales figures showing 11 per cent year on year growth, and September’s 10.9 per cent.

    The Singles Day record set last week of US$14.3 billion further underlined the spending potential of Chinese consumers.

    Price highlighted the performance of the company’s wholly-owned Chinese online retail subsidiary Yihaodian on Singles Day which he described as “great’ without revealing data.

    He said the company had opted to take full ownership of Yihaodian this year to make the most of the “gamut of opportunities” in the burgeoning online-to-offline (O2O) market where shoppers order online and collect instore.

    “We think online-to-offline is critical, as customers look for convenience, and convenience is not just one mode.”

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  • Paipai.com axed to fight counterfeiting

    Paipai.com axed to fight counterfeiting

    China’s number 2 eCommerce player JD.com has axed its consumer to consumer online storePaipai.com in a bid, it says, to cut sales of counterfeit goods.

    The store will be closed by December 31 and after a transitional period of three months, the company will completely close down the website of Paipai.com.

    “The shutdown of the C2C platform is in line with the company’s policy to combat the marketing and sale of counterfeit products and the company will make persistent efforts to protect the interests of consumers and brands,” JD.com said in a statement.

    Paipai.com, along with another site Wanggou, were acquired from WeChat parent Tencent in March 2014. The combined businesses have a goodwill and intangible asset value of US$400 million, making it a very expensive gesture in the war against counterfeit goods in Mainland China.

    The company says it has yet to calculate the book value of the loss given the two websites are accounted for in the books as a combined entity and Wanggou will continue to operate.

    While JD.com is amputating a limb, Alibaba is undergoing a high profile battle in the US courts with French luxury brand owner Kering which alleges Alibaba has failed to take sufficient steps to counter the trading of counterfeit goods on its various websites, as reported by Inside Retail Asia last week.

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  • Pitney’s Borderfree Expands Online Catalog to Woo China

    Pitney’s Borderfree Expands Online Catalog to Woo China

    Pitney Bowes Inc. subsidiary Borderfree is expanding its online shopping catalogue for Chinese online customers to serve their penchant for America-based consumer products. The company intends to provide these customers with more options for American brands in fashion, sports apparel and lifestyle accessories ahead of the upcoming holiday season.

    In particular, Borderfree has extended its partnership with China’s e-commerce giant Alibaba Group Holding’s subsidiary company, Ant Financial’s Alipay (an online payment services provider). This will allow China-based consumers to purchase directly from the retailer’s websites using localized payments. Borderfree’s collaboration with Ant Financial helps obliterate currency and logistics barriers, allowing leading global retailers to explore the Chinese soil.

    Borderfree realizes that customer security is paramount in online transactions and hence, is working closely with payment and marketing platform “Alipay ePass” (which allows U.S. merchants to gain access to Chinese consumers with an Alipay account), to woo in major crowd this holiday season. On the other hand, this deal also enables Alipay’s 400 million registered customers to access the products of a wide range of international retailers including Aéropostale, MotoSport, Bloomingdale’s, Macy’s and Saks Fifth Avenue at comparable prices.

    In our opinion, the incredible growth of online shopping in China, which likely accounts for over 40% of the world’s retail e-commerce according to EMarketer, is enough to bank on the profitability of this particular deal. Moreover, the fact that the U.S. happens to be the leading e-shopping destination of the world further brightens the commercial attractiveness of Pitney Bowes.

    Earlier in June, Pitney Bowes completed the acquisition of Borderfree to complement its e-commerce business. Encouragingly, this gave the company a first-mover advantage for exploring a multibillion-dollar market, which enjoys a double-digit growth rate. Notably, company sources suggest that the rapidly growing Chinese e-commerce sector is emerging as the key driver of the nation’s overall economic growth, primarily fueled by increased Internet penetration and surge in smartphone ownership.

    We believe the approaching holiday season will witness colossal growth in online purchase data, and this bodes well for Pitney Bowes’ profitability. Moreover, integration of the Borderfree business with its global e-commerce business will help the company reap significant cost-synergies in the long run.

    Pitney Bowes currently has a Zacks Rank #3 (Hold). A better-ranked stock in the industry is Advanced Emissions Solutions, Inc., that holds a Zacks Rank #2 (Buy).

     

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  • Apple’s Fifth Retail Store in Beijing Opens November 28

    Apple’s Fifth Retail Store in Beijing Opens November 28

    Apple has announced that its fifth retail store in Beijing, and 27th in China, opens Saturday, November 28 at 10 AM local time. The store will be located in the new Chaoyang Joy City shopping mall at 101 Chaoyang North Road in Beijing’s city proper Chaoyang District.

    The new store will be open 10 AM-10 PM local time everyday and offer traditional Apple Store services, including the Genius Bar, Workshops, JointVenture, events and seminars. Apple’s four other retail stores in Beijing are located at China Central Mall, Sanlitun, Wangfujing and Xidan Joy City.

    Apple has opened more than seven new retail stores in China this year, including locations in Chongqing, Dalian, Hangzhou, Hong Kong, Nanjing and Tianjin. The company is committed to expanding its footprint in China, an increasingly important market, under the leadership of retail chief Angela Ahrendts.

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  • ASOS launches mobile apps for iPhone, iPad and Android in China

    ASOS launches mobile apps for iPhone, iPad and Android in China

    Developed using retail technology specialist Red Ant’s award-winning RetailOS mobile commerce accelerator, the apps are:In a first for the UK’s largest independent online fashion and beauty retailer, ASOS has launched mobile apps for iPhone, iPad and Android to the Chinese market.

    • Fully transactional mobile app designed specifically for the 700 million-strong Chinese smartphone user market
    • Feature rich and fully shoppable with hybris commerce platform and Alipay
    • Features include Catwalk for all products, access to personal profiles, wishlists and Chinese social sharing

    Social media buzz suggests it has been well-received by ASOS customers and the fashion industry:

    • “I appreciate the fashion sense of ASOS’ fashion buyer, the items on the app attracted me so much and the app is more convenient than selecting on the website. I can also share the items with my friends from my phone, it is very warm and useful for us.”

    Men’s Health Assistant Editor Yu Qing

    • “Cool! Finally I can view the ASOS products in clear categories instead of spending a lot of time searching for what I want on Tmall. It’s more convenient.”

    Rayll Beauty Fashion Editor Kich

    ASOS’ general manager – China, Daniel Jenks, said: “ASOS is dedicated to delivering the best possible experience to our customers in China, and the launch of our apps, backed by Red Ant’s expertise, is a significant step towards ensuring they receive a high-quality, mobile-first service which meets all of their needs in an increasingly sophisticated marketplace. We’re delighted with the results so far and in the space of a few weeks, app downloads and sales have exceeded our expectations to form a substantial mix of our sales.”

    Red Ant’s CEO Dan Mortimer said: “As the UK continues to forge stronger and more profitable business relationships with China, we are delighted to be the mobile partner of choice in the Far East for one of the world’s most successful and reputable online retailers. The local knowledge and expertise of our team on the ground in Asia has been invaluable in developing an app which makes the most of the commercial opportunities presented by the world’s biggest mobile market.”

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  • China forecast to lead APAC in online spending

    China forecast to lead APAC in online spending

    China will lead the Asia-Pacific region in online spending this holiday season with $150 billion in sales forecast, new research from Adobe Digital Index reveals.

    China’s booming economy has led to the highest anticipated online spend in the region (55 percent), with nearly half of the country’s consumers surveyed (49 percent) predicting an increase in their online spend for the period.

    The average Chinese Internet user is predicted to spend a total of $210 online during November and December, driving one-fifth of total online sales for the year.

    Adobe’s global Online Shopping Prediction is based on an analysis of 55 million product SKUs and aggregated and anonymous data of more than one trillion retail websites over the last seven years. The holiday season represents 20 percent of worldwide online spending – with Austria and the US at the top of the list.

    Across the rest of APAC, consumer spend is expected to remain steady year-on-year with 14 percent and 16 percent of Australians and Singaporeans respectively, anticipating they will increase their total spend this holiday season.

    Japan is expected to see the second highest online spend in the region with $37 billion in online sales (a 5 percent year-on-year growth) predicted, followed by Australia at $7 billion.

    The survey found that consumers in APAC are not only shopping online more, they are also becoming increasingly efficient, with 20 percent or more in each country surveyed saying they expect to spend less time holiday shopping this year compared to last – a saving that could give them more time to spend with their families and friends.

    “Holiday shopping is a huge investment and consumers get more sophisticated every year with their online and mobile shopping in order to secure the most popular gifts at the best prices,” said Tamara Gaffney, principal research analyst, Adobe Digital Index.

    Meanwhile, Gaffney said Southeast Asia is expected to lead the charge in mobile shopping with 21 percent of e-commerce purchases to be transacted via smartphones and around 10 percent via tablets.

    Japanese shoppers won’t be too far behind, with 24 percent of e-commerce purchases predicted to be made via smartphones and 6% via tablets.

    Consumers are also finding online shopping less stressful than heading to the stores. In Australia, almost one-in-five (19 percent) consumers rated offline shopping as extremely stressful, compared to only 6 percent who said the same about online shopping. China is the only country in the region where online and offline shopping are seen as equally stressful.

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