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Tag: China

  • China Fordoo boosts store network

    China Fordoo boosts store network

    China Fordoo Holdings opened 42 new stores in the first half of this year, helping it boost sales in a soft Mainland retail market.

    Fordoo, a specialist menswear designer, manufacturer and retailer, now has 1494 stores across the Mainland, including two self-managed. Trousers account for 58 per cent of its revenue.

    For the six months to June 30, group profit was about RMB136.9 million (US$21.4 million), up 6.4 per cent on the same period last year. Sales increased by 8.1 per cent to RMB828.4 million ($129.56 million).

    “The increase was mainly due to the expansion of the group’s distribution network and the enhancement of its brand recognition,” the company said in its statement.

    Fordoo said in the first half, China’s economy had entered into a “New Normal” phase.

    “The economy has shifted from high growth to medium-to-high growth, and the economic structure has improved and been upgraded. Under the “New Normal” phase, the economy is increasingly driven by innovation rather than input and investment.”

    Apparel retail growth slowed. Total retail sales of garments, hats, footwear and knitwear in China recorded a 8.3 per cent year on year increase which was 0.4 percentage points lower than that of the corresponding period in 2014.

    “The overall retail market in China remained weak and consumer sentiment showed no sign of notable recovery. However, we are glad that China Fordoo Holdings was able to continue to grow at a stable and moderate pace during the period in terms of number of retail outlets, distributors and revenue.”

  • Corrupt Chinese supermarket exec jailed

    Corrupt Chinese supermarket exec jailed

    The former chairman of China’s Bright Food Group has been found guilty of embezzling US$31 million between 2000 and 2006 when he was chairman of Shanghai Lianhua Supermarket Holdings Ltd.

    Corrupt Chinese businessman Wang Zongnan was sentenced by the People’s Court in Shanghai on Tuesday to 18 years in prison for embezzlement and accepting bribes.

    According to the court hearing, Zongnan had accepted 2.69 million yuan in bribes, hiding the money through the purchase of two villas.

    In 2003, Wang’s parents bought two villas in Shanghai for 2.08 million yuan, 2.69 million yuan below the market price. The sellers were associated to a subsidiary of a company that had owed Wang a favor, according to the verdict. Wang sold the two villas in 2010 and 2013 for 14.8 million yuan in total.

    In the ruling, the court ordered that 1 million yuan of Wang’s personal property be confiscated and more than 12 million yuan in bribes and illegal earnings be returned.

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  • Profit falls as QKL Stores buys market share

    Profit falls as QKL Stores buys market share

    QKL Stores  a regional supermarket chain in Northeastern China and Inner Mongolia, has announced improved sales, but lower profit in the second quarter.

    Zhuangyi Wang, chairman and CEO, said the company had boosted its promotional activities in existing stores to strengthen its competitive position.

    Second quarter sales rose 9.2 per cent to US$56.4 million and gross profit decreased 4.3 per cent to $9.1 million.

    “The decrease in gross profit relative to net sales was due to competitions arising from the increasing challenge from the online shopping that have significant pricing pressure on our selling of high margin products.”

    Wang said QKL plans to slow down the pace of its new store openings this year.

    “Currently, we expect to open two new supermarket stores this year. We maintain confidence in our strategy of strengthening our store presence in Tier 4 and 5 cities in northeastern China as well as in our core region of operation around Daqing where the majority of our older stores are based.”

    Based in Daqing, QKL Stores sells a broad selection of merchandise, including groceries, fresh food, and non-food items, through its 40-odd retail supermarkets, hypermarkets and department stores; the company also has its own distribution centers that service its supermarkets.

    “As QKL expands its market presence in northeast China, we are uniquely positioned against our local competitors through our large product offering, strong supplier relationships, efficient distribution network and state-of-the-art IT system,” said Wang.

    “We are comfortable with our opportunities in the second half of the year and believe we’ll see an improvement in operating expenses and net result from the current quarter.”

  • China’s Jollychic.com branches into homewares

    China’s Jollychic.com branches into homewares

    Chinese eCommerce company Jollychic.com, an online global fashion destination, has unveiled a new line of homeware products called J.Home.

    “Increasing demand and lower prices have made Jollychic’s promotional furniture products a viable alternative for clients all around the world, according to Siwei Ma, furniture manager at JollyChic.com.

    “The growing public awareness about global eCommerce and other major advantages of the internet enables our customers to shop for more than 6000 products from different categories, including home decor, bed & bath, dining and pet care.”

    Jollychic.com is a global fashion destination, selling fast fashion and publishing a wide variety of fashion-related content, positioning the website as a growing fashion community. We sell over 50,000 branded and own-brand products through localized mobile and web experiences, delivering from our fulfillment centers in China to almost every country in the world. It runs sites in nine languages: English, French, Spanish, Arabic, Polish and Chinese.

    With the expansion into homewares, shoppers can take advantage of a free interior design consultation with dedicated customer service. An expanded customer loyalty program has been expanded to include a free gift offer that includes mugs and more.

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  • China lingerie boom pays off for Cosmo

    China lingerie boom pays off for Cosmo

    Chinese women are splurging more on their underwear, producing rich results for Cosmo Group.

    Cosmo, China’s largest branded intimate wear business in total retail sales and store numbers, says sales revenue soared 27.2 per cent in the six months to June 30. Profit rose 40.7 per cent.

    The company says while it continues to focus on the affordable end of the market, it is expanding its range and reach in the high end of the market, to capture the increasing discretionary spending of China’s rising middle class.

    “The increase in the national per capita disposable income of China… and the increase in retail sales of China’s intimate wear industry in the past three years, according to Frost & Sullivan, entails enormous business potential for the group,” the company said in its earnings statement on Monday.

    “It is believed the group’s strategy of offering consumers with products of high quality standards at affordable prices has effectively rendered it one of the most popular intimate wear brands among the Chinese consumers.”

    For the six months to June 30, Cosmo recorded revenue of RMB2.207 billion and profit attributable to shareholders of RMB 270.35 million.

    In March of this year, Cosmo bought the lingerie brands Ordifen, Rubii and Ilsee, which aided its expansion into high-end intimate wear distribution channels in China, including department stores and shopping malls in tiers one and two cities.

    As at June 30, there were 578 retail outlets of the acquired brands – 344 franchised and 234 self-managed. The majority of these  are located in the shopping malls and department stores in tiers one and two cities in China.

    Immediately after the acquisition, the group launched several initiatives to realise the synergies of the integration and consolidation of the new brands into the group’s operation, including improving its retail capability, strengthening marketing, enhancing logistics, research and development and re-negotiation with suppliers for more favorable terms.

    “The group will improve the performance of the retail outlets on an on-going basis and will also consider establishing new retail outlets in places with high growth potential.”

    At the time of acquisition the new brand portfolio was trading at a loss. Cosmo says the business is already profitable.

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  • Ever-Glory sales slide

    Ever-Glory sales slide

    Chinese fashion retailer Ever-Glory International says its sales fell 11.6 per cent in the three months to June 30.

    Total sales for the quarter were US$75.7 million, the slide primarily due to a 6.8 per cent decrease in its retail business to $45.9 million and an 18.1 per cent decrease in its wholesale operation to 29.8 million.

    Ever-Glory had 1204 retail stores as at June 30, 49 more than at the same time last year.

    Total gross profit for the quarter increased 2.4 per cent to $30 million.

    Based in Nanjing, China, Ever-Glory retails branded womens fashion apparel through its own store network under the brands La Go Go, Velwin, Sea To Sky and Idole in China.

    Ever-Glory is also a leading global apparel supply chain solution provider with a focus on middle-to-high end casual wear, outerwear, and sportswear brands. Ever-Glory services well-known international brands and retail stores by providing supply chain management, fabric development and design, sampling, sourcing, quality control, manufacturing, logistics, customs clearance and distribution etc.

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  • Bulgari Macau’s new generation boutique

    Bulgari Macau’s new generation boutique

    Bulgari Macau’s new luxury boutique at the Galaxy features the new architectural design concept developed by Peter Marion.

    Following the renovation of the Via Condotti flagship in Rome, the new architectural design concept is being rolled out by the LVMH brand in the most prominent locations worldwide, mirroring the brand’s signature architectural elements and expressing its Mediterranean origins and Roman traditions with a classic Italian approach to modernity.

    The Galaxy Macau store, which began trading in July, is thus one of the first in the world to carry the new image.

    Bulgari says the dominant idea is expressed by “a classic geometry open to modern interpretation, in a continuous interplay between innovation and tradition”.

    The 290 sqm space encompasses the brand’s design key elements, such as the three institutional giant windows alternate with three Condotti showcases and the Condotti eight point star, still present in the original historical flagship in Rome Condotti 10.

    The boutique also houses some furniture selected by Peter Marino himself and conceived by the Italian designers who have had link with the Bulgari heritage, such as the product counters by Carlo Scarpa, the sales tables by Franco Albini, or the central Eros marble table by Angelo Mangiarotti.

    The brand touch is also provided throughout the areas transformed into a Bulgari art-gallery: walls are decorated with Vintage most famous endorsements of celebrities who have been truly fan or ambassadors of the brand’s Italian exciting lifestyle.

    The boutique features an exclusive Bridal, Men, Accessories and VIP area, where the most precious creations can be viewed in total privacy.

    Bulgari Galaxy Macau is located at Shop G094 on the ground floor.

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  • London retailers revel in Chinese influx

    London retailers revel in Chinese influx

    Hong Kong retailers wondering where those cashed up, big spending Mainland Chinese tourists have been unzipping their wallets… here is your answer: London.

    According to the Retail Gazette, spending by Chinese Visa card holders rose 44.5 per cent in the UK in July – outstripping spending by tourists from France and Australia.

    Inbound tourists from China now account for more spending than those from any country except the US which retains top spot.

    Retail Gazette reports the growth in Chinese spending was strongest in supermarkets (up 79 per cent) and in high street stores (up 40 per cent).

    Shopping accounted for 40 per cent of Chinese tourists’ spending in the UK

    “China is one of the fastest growing sources of tourism income for the UK and it looks set to become an important driver of growth for the sector,” said Kevin Jenkins, UK & Ireland MD with Visa Europe.

    “Spending on cards has seen a significant boost as Chinese tourists travel to the UK, confident in the use of plastic overseas.

    “With shopping a top attraction for Chinese travellers, UK retailers are likely to consider additional ways to appeal specifically to this audience,” Jenkins said.

    “Pre-travel marketing, multilingual staff and new product lines in store may be three things we see more of.”

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  • Global Brands in talks with Alibaba, JD.com

    Global Brands in talks with Alibaba, JD.com

    Global Brands Group is discussing a possible “strategic alliance” with Chinese eCommerce companies Alibaba and JD.com.

    The two e-tailers are declining to comment on the matter, but based on comments by Global Brands CEO Bruce Rockowitz, Bloomberg reports the alliance “could involve online sales of brand-name children’s wear, among other products, through Alibaba’s Tmall and JD.com, and co-operation offline”.

    Rockowitz said a formal announcement is likely later this year.

    “We are working with JD and Alibaba on a strategic alliance, joint venture,” he said. “It’s a relationship or joint venture together that can create a solution online, offline and mobile that none of us can do by ourselves.

    “Both of them want to do something. They don’t have the content, just platforms, but they want to go to the next level.”

    The comments came in the wake of Global Brands’ first full year results announcement earlier this week when it reported stronger margins as it continues to shed non-performing brands in favour of higher end products.

    Last December, Global Brands announced a joint venture with David Beckham and his business partner Simon Fuller. The joint venture, Seven Global, focuses on the continued development of the brand around David Beckham as well as on creating large scale brands in partnership with a select number of high‐profile sports and entertainment icons. The venture will cover all major consumer product categories.

  • UnionPay partners with Latitude19

    UnionPay partners with Latitude19

    Latitude19 Technology says its internet payment gateway is now registered with UnionPay Online Payment, a service for eCommerce transactions that enables UnionPay cards to be accepted over the internet with real-time transaction authorisation.

    The service brings the convenience of transacting over the internet to all Issuers, Acquirers, Merchants, and UnionPay cardholders in a simple and secure way, opening the way for holders of more than 5 billion UnionPay cards to shop online.

    Latitude 19 Technology CEO & founder, Timothy Moore said UnionPay registration is an important milestone in the company’s strategy to become the leading global offshore payment gateway.

    The deal makes Latitude19 the first provider for UnionPay in the Caribbean and Latin America.

    “Our partnership with the world’s largest card association, will fast track our growth and provide valuable solutions for our clients.”

    Latitude19 Technology’s UnionPay International credit card issuing program is based on a globally recognised platform that has been designed to rapidly launch and deploy new programs or expand existing programs in real-time versus taking months with other legacy platforms. It supports debit, credit, or emerging payment programs in plastic, virtual, or mobile form.

    Latitude19 Technology is a Cayman Islands-based secure, international, online payment gateway that offers competitively priced, custom credit card payment solutions for eCommerce merchants.

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  • AS Watson opens global flagship

    AS Watson opens global flagship

    AS Watson Group has opened its 12,000th store worldwide – in Hong Kong’s Causeway Bay.

    Perhaps fittingly, the store is a three-storey flagship, at 8000 sqft, the brand’s largest store in Hong Kong.

    Located on Yun Ping Rd, the new store features the latest Watsons store design concept internationally, a blend of “contemporary and elegant style”.

    “As an all-rounded health and beauty store, the flagship store provides customers with over 8300 unique products, including 840 healthcare and beauty brands of which 250 are Watsons exclusives,” the company said in a statement.

    The wide selection of products are categorised into different themes, such as organic skincare products, derma cosmetics, baby care area, men’s care area and health checks. Pharmaceutical and beauty consulting services, in-store nursery room and mobile charging stations are available to provide comprehensive customer services.

    At the store’s opening ceremony, Li Tzar Kuoi, Victor, the co-MD and deputy chairman of Watson’s parent CK Hutchison’s Group said Hong Kong has a special place in the company’s heart.

    “Last year, AS Watson Group opened and refitted 76 retail stores in Hong Kong; and for this year, the number is expected to amount to over 80. The capital investment involved would be approximately HK$620 million over these two years,” Li said.

    “We will continue to invest in the city. ”

    Founded back in 1941 as a small dispensary, the AS Watson Group was the 14th company to register in Hong Kong. Now it is the world’s largest international health and beauty retailer and one of the world’s fastest-growing retailers. Watson plans to open 1300 new stores around the world in 2015 – nearly three per day.

    Fortune Centre Watsons Hong Kong Flagship Store has the widest selection of natural & organic skin care products of nine international brands, including the Anumi, a well-known Australian brand with international organic certification, and American brand Burt’s Bees.

    Derma cosmetic products from 12 brands are on sale, including the French cosmetic brands Uriage and Filorga, which will have their exclusive counter, and Watsons’ exclusive brands such as Skin Advanced, CNP. Customers can also enjoy skin analysis and derma cosmetics consulting services.

    A wide range of cosmetic brands, including Clio, Luna and Peripera, etc, from Korea will be exclusively offered in this biggest cosmetic zone among all Watsons stores. Nail brands like Sally Hansen and Depend 7Day will also be available here. Customers can even enjoy makeup or manicure services.

    The Baby Zone offers a large variety of baby products, ranging from diapers, baby wipes, milk powders, etc, giving babies full care and protection. The Men’s Zone offers men’s grooming and health products selections of 14 brands, including Men’s Biore, L’Oréal Men Expert and Za Men, which is a Watson’s exclusive.

    As the Asia’s largest health and beauty retailer, Watsons aims to make customers ‘Look Good, Feel Great’. Nine professionals, including two pharmacists, one dispenser, three health and fitness advisors and three beauty consultants will station in-store to provide customers with professional health consulting and assessment services, such as the Ultrasound Bone Density test as well as measurements for blood pressure and BMI (Body Mass Index).

    The Flagship Store provides customer services such as free wireless internet access, mobile charging stations, baby nursing room, and washrooms.

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  • 361 Degrees sees fast recovery in China

    361 Degrees sees fast recovery in China

    Chinese sports brand 361 Degrees says its sales and gross margin improved in the first half year to June 30.

    361 Degrees, listed in Hong Kong, operates 7404 retail stores across Mainland China. It says store productivity continued to be a central theme in future profitability.

    “The current store count of outlets is not likely to increase substantially in the foreseeable future as the retail landscape is fast changing with a new generation of consumers adopting different buying habits,” the company said in its half year statement.

    “The group is very much attuned to these developments and has intensified efforts to promote various initiatives in internet and mobile sales. However, the days for the traditional bricks and mortar store are far from over and particularly in our case, where over 70 per cent of our outlets are in the tier-3 and smaller cities, strong local connections with schools and sports clubs are an inherent advantage, especially as increasing numbers turn to sport as a form of recreation and lifestyle.”

    The group reported its turnover improved by 5.7 per cent year on year, and by 22 per cent over the preceding six months, to register RMB2.2 billion. Gross margin gained a further 1.6 percentage points to 41.3 per cent on the back of lower material costs.

    Operating profit reached RMB485.5 million – 34.4 per cent higher than in 2014.

    Ding Wuhao, president and executive director, said 2015 promises to be “a very good year for the group” as the sportswear industry experiences a steady recovery and the 361 Degrees brand gains further acceptance in the market place.

    Footwear turnover rose 16 per cent as a new portfolio of performance products gained a positive reception from retailers. Apparel turnover fell 3.5 per cent because of a higher comparative base, which was boosted by late deliveries in the fourth quarter of 2013. 361° Kids continued to show growth momentum as it differentiated itself from the regional brands.

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  • Global Brands chases higher margins

    Global Brands chases higher margins

    Li & Fung spinoff Global Brands has reported stronger margins as it continues to shed non-performing brands in favour of higher end products.

    The group’s total margin continues to rise, growing as a percentage to turnover from 29.7 per cent to 31.7 per cent in the first half of the current financial year.

    Turnover of US$1.282 billion was down five per cent due to “the tail end of the discontinuation of underperforming businesses” and a weak euro. Excluding those factors, turnover actually grew by about six per cent.

    CEO Bruce Rockowitz said as the company marked its first year as a standalone, listed business it continued to build on a solid foundation “as the partner of choice for American power brands in the affordable luxury space”.

    “We have sharpened our organisational focus around our product categories, as we continue to improve our business mix towards higher margin areas while at the same time driving operational synergies across the organisation. Today, we have a strong portfolio of brands and an excellent platform to take them global through either licensing, ownership or brand management,” he said in a statement.

    Global Brands’ business is always stronger in the second half of the year due to back-to-school sales and a higher concentration of holidays during this period, and the fact that some of the brands, such as Frye and Spyder, together with product categories like winter accessories, are more skewed towards the fall and winter seasons.

    “We continue to invest in and strengthen our business,” said Dow Famulak, president and COO. “Within Licensed Brands, the characters and kids fashion areas continued to perform well. This strong performance comes as we leverage our unrivalled global platform and our position as one of the largest licensees of all major kids entertainment franchises.

    “On the Controlled Brands side, we have added Jones New York to further strengthen our women’s fashion and apparel brands portfolio. We also continue to grow our key Controlled Brands, such as Frye, Spyder and Juicy Couture and have bolstered our management teams across several brands.”

    Added Rockowitz added: “Consumer appetite for leading American affordable luxury brands remains strong, especially as consumers’ demand for these brands has been fuelled by the widespread access to the online arena that makes these brands more popular than ever globally. Looking ahead, we expect our leading businesses to continue to perform well and maintain the course of their growth trajectory. At the same time, we will continue to increase our geographic footprint and look for strategic opportunities to add to our existing platforms, through both licenses and acquisitions.”

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  • Li Ning completes resurrection

    Li Ning completes resurrection

    Just a year ago, sports retailer Li Ning seemed down for the count, battling to stem the red ink.  This week it released its half year results to June 30: Revenue rose 16 per cent and it has finally returned to profit.

    The once beleaguered Chinese sports brand – which peaked in brand awareness about the time of the Beijing Olympics in 2004 – has recovered its mojo: Sales are up, it is expanding its store network once more, all the result of a root and branch review of the whole business, from the way it sources and designs products to the way it operates its stores and how it disposes of end of season stock.

    Li Ning has recorded total sales of RMB 3.641 billion – about US$567.5 million. Its profit may have been a modest RMB 260 million (US$40.5 million), but this year both profit and cashflow turned positive. In the same six months last year, Li Ning lost RMB 350 million, or US$54.6 million at today’s exchange rate.

    Significantly, the second quarter was a better one for the business than the first. Li Ning says same store sales in retail registered growth in the high teens on a year on year basis. “The entire store network registered low teens year on year growth,” the company said.

    As at the end of June, Li Ning had 5745 stores, including flagships, conventional stores, factory outlets and discount stores – 119 more than six months earlier.

    During the first half the company “vigorously implemented clearance of obsolete inventory,” optimizing its stock structure to lay a solid foundation for the growth in the second half of the year and into the next.

    Li Ning has also approached senior management of nine leading shopping mall groups in China – including Parkson, Bailian, Grandbuy, RT-Mart, Rainbow and Maoye – to discuss partnerships and expansion plans.

    “In 2015, we have opportunities for opening over 100 new points of sale and renovating over 30 [more] in the premises of these groups,” the company said in its trading results overview.

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  • Luk Fook opens Causeway Bay flagship

    Luk Fook opens Causeway Bay flagship

    Luk Fook Holdings has opened a three-storey Lukfook Jewellery flagship store in Causeway Bay.

    The group held a ribbon-cutting ceremony for the new store this week, inviting Japanese cartoon character Rilakkuma to join in the celebrations.

    Wong Wai Sheung, chairman and CEO of Luk Fook said the three storey shop is located in the central area of Causeway Bay, “a shopping hotspot with high pedestrian flow”.

    “We believe that the opening of new shop at a prominent location not only expands our sales network, but also brings convenience to the tourists and local customers for their leisure shopping in Hong Kong. As a globally renowned jewellery brand, the group will continue to optimise the retail network in Hong Kong and provide high-quality jewellery products and excellent services for customers.”
    Featuring prominent three storey tall mega billboard advertising, the store is decorated with luminous materials, such as mirrors and metal steel, with leather interspersed throughout the shop to create a more distinct three-dimensional and multi-layered effect and “a soft yet noble and elegant shopping environment”.

    The first floor of the shop features a ‘Western Wedding Zone’ in the warm, romantic pink tone to display a wide variety of wedding jewellery products. New couples and their families can select wedding jewellery in a comfortable and spacious environment. In addition, our professional sales team offers professional advice, and provides caring value-added services including providing shawl of Chinese-style dress to match with the selected gold jewellery, and free on-site engraving services, etc, for customers to enjoy a superior shopping experience.

    The store is located on the Ground, 1st and 2nd floors of 499 Hennessy Rd.