Retail News CRM

Tag: China

  • Xiaomi in US, Europe check

    Xiaomi in US, Europe check

    China’s market main smartphone firm Xiaomi is making what’s being interpreted as a tentative step into the US and Europe.

    The fast-growing younger firm, which sells extra telephones in China than another handset maker has but to open its first retailer outdoors Higher China – however final Friday, it quietly switched on an internet site promoting equipment and electronics – however not telephones – to People and Europeans.

    In line with a report on The Verge https://www.theverge.com stories, Xiaomi opened a website promoting restricted quantaties of simply 4 merchandise in a “beta check sale” to residents of the US, UK, Germany and France.

    This launch line-up of merchandise features a US$14.99 health tracker, a pair of US$79.99 headphones, and two sizes of USB energy packs: a $9.99 5,000mAh mannequin able to two full iPhone expenses and a bigger, 10,400mAh model that bought for $13.99.

    The corporate inspired guests to create their accounts on the location, clearly a way to start out constructing a database of potential clients in every market.

    Xiaomi, an organization now value US$46 billion, is scheduled to open its first retail retailer – dubbed a Mi Retailer – outdoors mainland China, in Hong Kong this week.

    In response to The Verge, Xiaomi’s VP Hugo Barra introduced a transfer into the US and Europe earlier this yr, however wouldn’t say when its low-cost, however feature-packed smartphones may go on sale.

    “On the time, Barra cited causes reminiscent of hardware certification, software program testing, and different logistical challenges as obstacles to entry for smartphones and tablets in US market,” The Verge reported.

    “Nevertheless, the corporate has but to shake the notion that it has additionally copied American corporations’ designs — a criticism that’s troublesome to disregard when taking a look at side-by-side comparisons of Apple’s and Xiaomi’s merchandise. Nonetheless, if the corporate can discover an viewers for its equipment, then its smartphone certainly gained’t be too far behind.”

  • JD.com strikes into gadget making

    JD.com strikes into gadget making

    Chinese language on-line retailer JD.com has chosen CES Asia to unveil two new devices to be bought by its JD Sensible division.

    JD Sensible is a just lately launched ‘sensible gadget platform and enterprise unit’ which has created what it describes as an ‘open ecosystem initiative’, integrating merchandise from a variety of producers seamlessly on a JD.com sensible platform.

    The brand new merchandise are a DingDong Sensible Speaker, developed in partnership with iFlyTech. It’s a voice-controlled gadget that may pull information, climate and round three million songs and four million hours of audio content material instantaneously from third get together sources on the Web and play them by way of the high-quality speaker system.

    The voice interface system may also help in schedule administration by establishing alarms, calendars and comparable planning instruments, all by way of voice instructions. The DingDong Sensible Speaker makes use of the JD+ tremendous app (referred to as “Jingdong Weilian” in Chinese language) to permit full voice management of all merchandise within the JD+ ecosystem, centralising the consumer expertise.

    JD Sensible additionally launched Changhong’s EleCloud Wi-fi Sensible Rechargeable Storage System to its JD+ ecosystem. The gadget, which equally leverages the Weilian app, is an exterior charger for cellular units that integrates the functionalities of wi-fi sharing and a excessive velocity flash drive, permitting customers to share paperwork, music and movies concurrently with as much as greater than 30 individuals.

    JD Sensible president Zhenhui Wang stated the brand new merchandise underscore JD Sensible’s shut relationships with producers and its concentrate on delivering a very built-in open platform for sensible units.

    “Leveraging JD.com’s unrivalled assets, we help our associate corporations all through the event course of, together with massive knowledge evaluation of consumer conduct, sensible cloud computing platform, fairness crowdfunding by means of JD Finance for start-ups, advertising help and entry to our greater than 100 million customers for market-ready sensible merchandise.”

    JD Sensible’s ecosystem supplies customers a handy single level of management over related sensible units from collaborating producers by means of its Weilian cellular tremendous app.

    “We’ve created an ecosystem that permits merchandise from totally different producers to work collectively on a seamless sensible platform, JD Sensible is ready to bypass the ‘ache level’ created when a consumer’s units can’t speak to one another,” stated Leslie Liu, JD Sensible’s CTO.

    “The DingDong Sensible Speaker leverages the Weilian app we now have developed to seamlessly combine into clients’ sensible house networks with a single voice command middle, avoiding the ‘bottleneck’ of closed platforms.”

    By way of its JD+ business companion program, JD Sensible builds partnerships with conventional and early-stage hardware producers across the open JD Sensible platform. Presently JD+ consists of over 100 producers, together with Haier, Hisense, Midea, TCL, Joyoung and Fotile, with a complete of greater than 400 JD Sensible-enabled merchandise. JD Sensible helps its associate corporations by means of a number of improvement levels, together with offering incubators, accelerators, technological help, go-to-market options, provide chain and cloud computing providers, in addition to entry to JD.com’s big base of upwardly cellular shoppers.

  • ​Disney opens its largest store in Shanghai

    ​Disney opens its largest store in Shanghai

    Disney’s first retail store in China is in the Pudong district of Shanghai.

    The Walt Disney Co. has opened its first Disney Store in China, a 9,257-square-feet store in Shanghai that is the company’s largest retail store in the world.

    The new store, opened May 20, comes as Disney strives to tap into China’s growing middle class. The store is in Shanghai’s Pudong district, where Disney plans to open a $5.5 billion theme park next year.

    Disney said an estimated 40 million tourists visit Pudong’s Lujiazui shopping area, where the store is located.

    “We couldn’t be more delighted to open our first Disney Store in China, in Shanghai,” Paul Candland, Disney’s Asia-Pacific region president, said in a statement. “Disney Store plays a critical role in how millions around the world experience our brand and allows kids, young adults and families to have a uniquely fun and immersive experience while shopping for their favorite Disney, Pixar, Marvel and Star Wars products.”

    The new Shanghai store showcases a 19-foot castle at the heart of the store, featuring an hourly musical and projection show, and a Marvel-themed area with hand-sculpted statues of superheroes. Its exterior includes a landscaped plaza and Mickey Mouse-shaped roof sculpted with 8,000 LED lights visible from key tourism points such as the Pearl Tower.

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  • Burberry bemoans Larger China problem

    Burberry bemoans Larger China problem

    Higher China has put a dampener on the in any other case stellar success story of revamped luxurious model Burberry.

    The corporate had earlier posted an 11 per cent rise in income to £2.5 billion and a seven per cent improve in pre-tax revenue to £456 million within the yr to March.

    However on Friday is warned that a beneficial fluctuation in foreign money would increase its backside line by £50 million would truly solely in reality ship £10 million, because of an increase in worth of the pound towards the Hong Kong and US dollars.

    Buyers have been spooked, maybe extra by the size of a monetary miscalculation which was by some means out by £40 million in simply 11 days as by any concern over the worth or efficiency of the model as an entire. Shares shed six per cent of their worth within the day’s buying and selling.

    Final yr’s pro-democracy protests in Hong Kong, together with the much-publicised shift within the demographic of mainland Chinese language vacationers hit Burberry arduous, given the territory accounts for 10 per cent of its international gross sales.

    So a gross sales drop in Hong Kong measured within the mid single digits can simply impression the underside line. So, too, wallet-tightening in China’s mainland. So whereas Burberry had anticipated some cushioning from beneficial trade price tendencies, additional evaluation since has apparently revealed much less constructive developments.

    The weakening of the euro has elevated what luxurious manufacturers confer with as ‘gray market gross sales’, the place inventory is purchased from wholesalers or shops in Europe on the market at a revenue in China and Southeast Asian markets. This prompted the model to extend Europe costs, and scale back them in Asia, affecting income at each ends, however defending the integrity of its provide chain.

    One vendor noticed that decreasing the 2016 steerage had harm Burberry, hinting the share worth influence was an unfair judgment.

    “Beneath, the numbers learn nicely and are forward of forecasts and the corporate is doing lots to make the enterprise sustainable,” one London supplier advised UK information media.

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  • Jumei gross sales soar

    Jumei gross sales soar

    Jumei Worldwide, the Chinese language on-line retailer of magnificence merchandise, has revealed a 61.eight per cent improve in first quarter gross sales to US$250.6 million.

    Gross merchandise quantity lept 20.three per cent because of a 14.three per cent improve within the variety of lively clients to five.6 million, and an 18.four per cent improve in complete orders.

    Gross revenue was US$78.7 million, a rise of 15.2 per cent from the primary quarter of 2014. However expressed as a proportion of gross sales it decreased from 44.1 per cent to 31.four per cent, largely because of the firm’s shift in technique from pure play magnificence market to a broader merchandise supply.

    Founder and CEO Leo Chen stated the expansion price was stronger than anticipated for the primary quarter.

    “We efficiently accomplished our transition for magnificence merchandise from market gross sales to merchandise gross sales on the finish of 2014, and our new enterprise initiative – Jumei International, took off early this yr and skilled excessive progress when it comes to gross sales quantity. Jumei is at present one of many main gamers in cross-border eCommerce in China.

    “We expanded into cross-border child and maternity class in mid-April, 2015 and shortly achieved market main place on this new class in China. Our goal for 2015 is concentrated on prime line progress and enlargement into different cross-border classes as we glance to broaden our buyer base and considerably develop our order numbers. We’re assured that we will obtain our quarterly and yearly gross sales goal for 2015,” he concluded.

    For the second quarter of 2015, the corporate tasks complete internet revenues to be between US$270.1 million and US$277.eight million, representing a year-over-year progress fee of between 75 per cent and 80 per cent.

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  • Carrefour Taiwan, China open shops

    Carrefour Taiwan, China open shops

    French hypermarket operator Carrefour has additional prolonged its footprint in Taiwan and China, with three new shops opening their doorways in current weeks.

    Carrefour Taiwan has opened its 73rd retailer – the Xi Ke retailer in Hsi Chih science park. The only degree retailer has a complete 6864 sqm gross sales space and stands above the Taiwan Railway Xi Ke station by means of which 70,000 commuters move day-after-day.

    Within the Xi Ke retailer, Carrefour makes use of digital units to supply product info and work together with clients. A video wall on the entrance attracts clients in from the exterior mall.

    Carrefour Taiwan additionally launched the primary ‘Pure and Healthful’ merchandising space in its grocery part to supply extra HOPE (Wholesome, Natural, Premium and Eco-Nature) merchandise whereas selling traceability, natural options and high quality recent strains.

    Different retailer options embrace  a sports activities space the place clients can truly shoot basketball hoops and check health or biking gear.

    Carrefour China lately opened two new hypermarkets.

    The primary retailer to be opened within the north-east of China. With a gross sales space of greater than 7000 sqm, it has 22 checkouts and parking for 750 automobiles. This hypermarket anchors a purchasing centre of 25 shops.

    The second retailer – Hefei Mingbang Retailer – has a 7761 sqm gross sales space, 22 check-outs and parking for 780 automobiles. It’s situated in a big buying centre made up of 48 shops.

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  • Competitors eats into Nation Fashion gross sales

    Competitors eats into Nation Fashion gross sales

    China QSR operator Nation Type Cooking Restaurant Chain says same-store gross sales slumped 7.three per cent within the first quarter of this yr.

    The corporate, which is on monitor to open 60 new eating places this yr, reported first quarter revenues of RMB353.5 million ($57 million), a rise of 1.9 per cent on the identical quarter in 2014. The corporate had 245 eating places buying and selling in each quarters, however as on the finish of March had 344 buying and selling, in 29 Chinese language cities, 77 beneath the Mr Rice model.

    Its eating places working margin was 12.9 per cent, a lower of 170 foundation factors from the identical quarter of 2014.

    Internet revenue for the quarter was RMB8.three million ($1.three million), in comparison with RMB11.6 million in the identical quarter of 2014.

    Xingqiang Zhang, CEO, stated the corporate was happy with continued income progress and community enlargement within the first quarter.

    “Through the quarter, we targeted on additional enhancing meals security and vitamin through the use of high-quality uncooked supplies like non-GMO oil, sea salt and cage-free chickens to our product choices. We consider these efforts to enhance meals high quality is in keeping with the evolving eating habits of our clients, can higher differentiate CCSC from its rivals and should result in greater per-order spending over time,” he stated.

    “We’re additionally engaged on modifying our picture and the eating setting in our eating places to strengthen buyer notion of CCSC eating places as a perfect location for younger individuals and households who recognize an distinctive buyer expertise and a spot for socialising.”

    The corporate stated growing competitors had led to the discount in gross sales, together with a rise in meals and packaging prices and wages.

    CCSC expects second quarter revenues of between RMB 360-380 million ($58.1-$61.three million), representing a year-over-year progress of between roughly four.four per cent and 10.1 per cent.

  • Futuristic Chengde mall planned

    Futuristic Chengde mall planned

    Sunlay Design Group has created a stunning, futuristic design for the planned Chengde mall in China’s Hebei province.

    The modern shopping center has heavy ties to China’s ancient cultural influences, inspired by classical dragon mythology and the principles of feng shui.

    Named the Chengde Tianshan Retail Center, it will offer the Hebei province a mixed-use shopping experience that fuses contemporary form with traditional methodology. Construction is scheduled to commence within a few months.

    In creating the mall’s exterior design, Sunlay faced a major challenge: such is the mountainous nature of the site, a conventional building would have lacked visibility from the street. Whatever design they settled on, the had to also maximise the centre’s usable area.

    The result is best described as “a fluid form” that defines the site’s perimeter and creates a natural flow from indoor to outdoor food and beverage and retail tenancies.

    Sunlay says that by wrapping the building around the site’s edges, the mall gained elevation necessary for it to become a landmark and focal point for the neighbouring city.

    A tall cantilevered wing rests about 20 meters above the mall.

    Besides a retail tenancy mixing local and international brands, Chengde mall, on a 27,535 sqm site, features a cinema complex, restaurants, a karaoke bar and a hotel.

  • Komehyo Hong Kong opens showroom

    Komehyo Hong Kong opens showroom

    Used luxurious items retailer Komehyo Hong Kong has opened a downtown showroom as a part of its Japanese mum or dad’s regional enlargement technique to succeed in out to consumers outdoors Japan.

    President of Komehyo Hong Kong, Toshio Sawada, stated the showroom will assist the corporate set up a robust presence within the territory and join with abroad consumers.
    The showroom will supply second-hand jewelry, watches, branded luggage and equipment to related enterprises.

    “Hong Kong is properly related with the world and Mainland China,” stated Sawada. “It’s a handy and strategic location for Komehyo to serve its abroad consumers who’re principally from Mainland China.

    “We anticipate that the Hong Kong workplace will assist our firm increase its gross sales channels and supply higher customer support to abroad consumers outdoors Japan.”

    Sawada stated that through the previous few years, Komehyo has been actively buying and selling its second-hand jewelry and watches via commerce festivals in Hong Kong.

    “We have now seen robust demand for luxurious watches and diamond jewelry from abroad consumers. The opening of the showroom exhibits our rising confidence in Hong Kong.”
    Affiliate director-general of funding promotion, Jimmy Chiang, stated, with its free port and low tax regime, Hong Kong stays a really perfect location to overseas corporations wishing to showcase and market high-end high quality items to Mainland Chinese language and different Asian clients.

    “Establishing a everlasting location in Hong Kong facilitates commerce with worldwide consumers all year long. Komehyo, with its robust branding within the business, will simply discover a foothold in Hong Kong. I want its enterprise each success.”

    Based in 1947, Komehyo Co buys and sells second-hand and new merchandise by means of 33 retail shops in Japan. The corporate trades in recycled and new merchandise together with jewelry, valuable metals, watches, branded luggage, clothes, kimonos, cameras and musical devices in Japan. Komehyo is listed on the second part of each the Tokyo Inventory Change and the Nagoya Inventory Trade.

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  • Transit tasks to rework international cities

    Transit tasks to rework international cities

    A collection of things are converging to create international alternatives for Transit Oriented Developments (TODs) which might be metropolis altering in scale based on a brand new report from CBRE.

    Transit oriented improvement includes larger density, combined use tasks which might be adjoining to, or built-in with, public transport hubs. These tasks are sometimes master-planned to create interfaces with transport providers and have the power to revitalize underutilized precincts whereas bringing vital financial and social advantages to the broader group.

    CBRE’s report examines a variety of profitable TOD tasks across the globe, together with the Hong Kong Station redevelopment, Perth Metropolis Hyperlink in Western Australia, the King’s Cross regeneration challenge in London;,Transbay Transit Centre in San Francisco and One North Precinct in Singapore.

    The report highlights a variety of things which are creating alternatives for TOD tasks, together with growing charges of urbanisation, declining productiveness linked to elevated journey occasions, a rising authorities concentrate on public transport/decentralisation and higher sophistication in venture and infrastructure funding.

    Key findings embrace the essential position that authorities our bodies play in profitable TOD outcomes, the attraction these developments have for each residents and the enterprise group, and the alternatives inherent in a lot of these tasks.

    Henry Chin, Hong Kong-based head of analysis, Asia Pacific, with CBRE, stated TOD tasks have the capability to deal with most of the challenges dealing with main cities in developed economies because of a speedy improve in urbanisation.

    “A profitable TOD will obtain a considerable shift from personal automobiles to public transport, whereas enhancing livability and native employment alternatives.”

    CBRE’s report highlights that authorities imaginative and prescient and sponsorship is essential in facilitating TOD tasks given the position that public transport performs in addressing the long run sustainability of main cities – particularly points corresponding to visitors congestion, journey occasions, housing affordability and air pollution.

    Chin added: “Whereas TOD tasks are extra complicated than typical brownfield or greenfield mixed-use tasks, the advantages clearly warrant the trouble in addressing the challenges. Authorities facilitation is crucial and may take numerous types, together with the supply and rezoning of applicable websites, offering improvement certainty, immediately funding transport infrastructure and coordinating points with the related authorities. “

    The power to draw enterprise occupiers is one other key component of a profitable TOD venture, therefore the essential want for linkages to public transport.

    “Companies are requiring work environments which each appeal to and retain staff. The mixed-use nature of TODs creates activated precincts with retail and leisure providers for workers. TOD places additionally scale back enterprise demand for automotive parking, which in flip reduces challenge development prices and leasing prices for occupants,” Chin stated.

    Nevertheless, CBRE’s report spotlight that incentives can also be required to draw tenants, as illustrated by the long run tax incentive schemes and rental subsidies provided in Singapore to facilitate the One North Precinct.

    One other discovering is that TODs in established markets inside inside and center ring suburbs have a larger probability of success.

    Chin concluded: “Going ahead, TODs may have a dramatic influence on shaping cites, in Asia and at a worldwide degree, as governments give attention to crucial public transport infrastructure initiatives.”

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  • China’s on-line cross-border buying growth

    China’s on-line cross-border buying growth

    Guangzhou has taken the lead in a pilot cross-border purchasing eCommerce scheme, offering each challenges and large alternatives for Hong Kong companies.

    Cross-border on-line purchasing is more and more in style on the Chinese language mainland. Generally known as haitao, the apply permits shoppers to order merchandise by way of abroad on-line buying platforms, and have their purchases dispatched by worldwide couriers or collected and shipped to China by forwarding brokers. Its reputation has been spurred by the comparatively restricted vary of abroad items out there throughout the mainland and the premium costs of such gadgets when obtainable.

    A number of mainland cities have been authorised to hitch the pilot program for cross-border e-commerce. However solely six cities – Shanghai, Chongqing, Hangzhou, Ningbo, Zhengzhou and Guangzhou – have been assigned the proper to undertake complete import-export actions. This has given these cities the prospect to determine typical retailers designed to facilitate abroad on-line purchasing. Guangzhou has been on the forefront of maximising this chance.

    Three cross-border eCommerce companies – MeijoyBest (Guangzhou MeijoyBest E-commerce Co Ltd), zero20 (Guangzhou Lingerling Cross-Border E-Commerce Co) and Ieasy (Guangzhou Yangxitai E-Commerce Co Ltd) – lately commenced operation within the metropolis. A fourth, Nansha Cross-Border Direct Purchasing Expertise Centre, will open shortly. On its first day of buying and selling, almost 100,000 individuals visited MeijoyBest’s 230 sqm retailer, a transparent indication of the large demand in Guangdong for imported items.

    1. Decrease costs

    General, costs are typically some 30 to 60 per cent cheaper than comparable items obtainable elsewhere. In line with the procedures for basic commerce, imported items are required to pay three taxes – a customs tariff, VAT and a consumption tax.

    The tax charges differ in line with the class of the products. The tax price for cosmetics, for instance, might be as excessive as 50 per cent. Moreover, each logistics step within the distribution of a product, from the importing agent to wholesalers and retailers, provides to the general value.

    As abroad on-line bodily shops place orders on-line and gather items offline, the one tax payable is on baggage and private postal articles, thus significantly decreasing the general tax burden. Moreover, these shops are entitled to supply tax exemptions for single purchases valued beneath Rmb50. This, along with the shortage of a day by day ceiling (although every buy might not exceed Rmb1000 in worth and the unit worth of indivisible commodities might not exceed Rmb1000), drastically boosts shopper’s inclination to spend.

    The tax on baggage and private postal articles is a type of import tax levied by the Chinese language customs on baggage and articles carried by incoming travellers, in addition to on private postal articles. This tax has 4 tax bands – 10 per cent (meals, toys, and books and periodicals), 20 per cent (textiles, residence electrical home equipment and audio-visual gear), 30 per cent (high-end watches and golf golf equipment), and 50 per cent (tobacco, wine and spirits, and cosmetics).

    2. Peace of thoughts and authenticity

    There have been some situations of eCommerce websites promoting counterfeit items in recent times. There have additionally been many instances the place individuals didn’t obtain items that they had paid for. These incidents have prompted shoppers to return to bodily retail channels, that are perceived as decrease danger. Sometimes, shoppers have larger religion in items they will contact and look at and that they will pay for on the spot.

    Gross sales at abroad on-line bodily shops are monitored in real-time by the related authorities departments. The sources and high quality of products and the monitoring procedures are extra clear than is the case with online-only buying, thus they’re extra dependable. Guangdong shoppers appear to have welcomed these abroad on-line buying bodily shops as a most popular and extra reliable buy route.

    three. On-site assortment

    In accordance with Tao Zili, chairman of Meijoybest E-Commerce Co, on-site pick-up is simply attainable on the firm’s bodily retailer within the Guangzhou Bonded Space. Its Guangzhou Pearl River New Metropolis retailer nonetheless has to dispatch on-line orders to shoppers. Upon customs approval, the acquisition is dispatched from the bonded space and delivered by the suitable logistics corporations. This course of takes as much as 48 hours, quicker than the prevailing supply association for items bought at abroad on-line buying web sites. The corporate is constructing a 50,000sqm abroad on-line purchasing bodily retailer within the Guangzhou Bonded Space, which is because of open subsequent month. This new retailer will permit on-site pick-up and supply buyers with an expertise similar to that of typical purchasing. The power is predicted to offer a further increase to the uptake of abroad on-line purchasing within the metropolis.

    The bodily retailer at Pearl River New Metropolis is, actually, primarily a promotional outlet for its abroad on-line shopping center within the bonded zone. To draw clients, the Pearl River New Metropolis retailer has a “obligation paid part”. All items bought right here have the three taxes pre-paid and can be found for instant on-site assortment. The disadvantage is that costs are similar to typical market costs elsewhere within the metropolis.

    four Eradicating language and transaction obstacles

    Most abroad eCommerce websites, sometimes that includes an English interface, will not be obtainable in Mandarin. If shoppers encounter issues with their purchases, they need to make long-distance calls and talk with the seller who typically doesn’t converse Chinese language. As well as, most of the bank cards issued by mainland banks are usually not accepted by abroad purchasing web sites. Establishing abroad on-line buying bodily shops on the mainland addresses each of those issues.

    When it comes to Hong Kong companies, the emergence of those shops has two clear implications:

    1. Fewer cross-border purchasing journeys by Guangdong residents

    Whereas costs for many items at these shops are greater than these for comparable items in Hong Kong (after taking the tax on baggage and private postal articles under consideration), if journey time and prices are factored in, it’s nonetheless cheaper than buying immediately in Hong Kong. This can inevitably have an effect on Hong Kong’s retail enterprise and scale back commerce between the 2 cities. It might, nevertheless, assist to alleviate Hong Kong’s gray market items drawback.

    2. Larger entry to home gross sales channels

    Provided that there are not any restrictions on the sorts of products bought in these shops, there’s appreciable scope for Hong Kong-sourced gadgets.  Tao, for example, welcomes the chance for elevated cooperation with Hong Kong suppliers. As MeijoyBest will maintain points referring to taxation, promotion, advertising and logistics, this provides Hong Kong companies that haven’t any advertising community in Guangdong a streamlined route into the huge mainland market.

    When it comes to the operation of those shops, Tao believes there are three key parts required for fulfillment – a vendor system (administration of provide and suppliers); a gross sales system (eCommerce platform and cost system); and a logistics system (administration of dispatch and transportation of products). These all require customs approval and should adjust to the related customs monitoring techniques.

    Whereas Tao was reluctant to reveal the precise quantity of funding required to ship this, he did point out that an eight-figure sum went into creating these three techniques over the previous two years.

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  • Esprit warns of “substantial loss”

    Esprit warns of “substantial loss”

    Esprit has issued a surprise profit warning to investors saying it expects a “substantial loss” in the full year to June 30.

    The warning is a surprise, because just 11 days earlier the Hong Kong-listed fashion retailer said its turnaround program was “on track” with a good customer response to new ranges and positive traing improvements.

    “We remain fully confident that our current strategies will enable us to turn around Esprit and to establish a strong foundation for future long term growth.”

    However, in a document filed with the Hong Kong Stock Exchange yesterday (Monday May 18), Esprit appears to have reconsidered its position based on figures for the 10 months to April 30.

    “The anticipated loss is mainly attributable to the following non-recurring provisions and impairments resulting from management’s assessment of the fair values of the assets of the group, as well as an expected operating loss:

    “Due to the significant underperformance of the group’s operations in China in the past two years (turnover decline of 28.3 per cent and 21.6 per cent year-on-year in local currency for 2014 year and for the first half of 2015 respectively), there is an impairment of the goodwill in association with the China business estimated to be in the range of HK$2,500 million to HK$2,700 million. This impairment is a non cash item. A number of factors, both external and internal, have led to such weak performance in China, mainly the year-on-year reduction in total controlled space (down 24.3 per cent in 2014 and 23.1 per cent in the first half of 2015) which results from our decision to close unprofitable retail stores and the large decline of controlled wholesale space; and Inventory clearance by wholesale partners, including the special return agreements to solve our long time problems with aged inventory in the wholesale channel; and a challenging operating environment and softer domestic economic growth.”

    Esprit says the necessary restructuring of the operations in China is now complete and it is beginning to work on growth development in the country.

    Furthermore, due to the weaker than expected sales performance of directly managed retail stores, there are provisions and impairments, which are non-cash items for 2015, resulting from provisions for store closures and onerous leases, estimated to be in the range of HK$280 million to HK$300 million and impairment of fixed assets of directly managed retail stores, estimated to be in the range of HK$160 million to HK$170 million.

    Finally, the company is expecting an operating loss, as a result of higher than expected decline in the group’s turnover, especially during its Autumn/Winter 2014 season, and the corresponding operating deleverage effect.

    The company said final results for the year to June 30 are expected to be released in September 2015.

    Esprit reiterated its “good progress” in various fronts of the transformation plan.

    “In anticipation for continued improvement in product performance, we will be increasing our efforts in marketing as well as in implementing an ambitious omni-channel model that will enhance the customer experience across our multiple distribution channels.

    “The group remains confident our current strategies will enable us to turnaround Esprit and to establish a strong foundation for future long term growth.”

  • Metro China builds eCommerce reach

    Metro China builds eCommerce reach

    Metro China has upgraded its eCommerce platform metromall.cn, which it says integrates online, offline and mobile channels for “a seamless customer experience”.

    “eCommerce is one of our strategic channels to drive for growth in China market,” said Jeroen de Groot, president of Metro China at a launch function.

    “We are determined to enhance customer experience and further expand business through leveraging the power of e-commerce.

    “Our Metromall not only integrates online-to-offline, but also incorporates an innovative mobile function. We are confident this platform will enable us to provide more exciting solutions and seamless purchasing experience to our core target professional customers, helping them to be more successful in the market.”

    With an optimised user interface and location-based services, Metromall synchronises with the wholesaler’s offline stores, covering over 20,000 products. Metro delivers all online orders directly from local wholesale stores, shortening delivery time and ensuring product quality. The platform offers customers convenient and efficient choices of goods receiving, such as home delivery or in-store pick-up.

    When it first entered China back in 1996, Metro adopted a membership system, and has since collected data from over 4 million shoppers in order to offer them customised solutions and services. Today, by tapping into this rich database, the upgraded e-commerce platform will further strengthen Metro’s customer relationship management.

    The Metro eCommerce platform currently covers 39 stores in 21 cities in China, and will unroll across all Metro stores in China by the end of 2015.

    Taking advantage of the rapid development of mobile communications and popularity of smartphones, Metromall also features an accompanying mobile app. Customers can use the app to scan barcodes and identify product features, build shopping carts, place orders, and check-out. The app’s database includes product barcodes of all articles in offline stores except for fresh and ultra-fresh products. Customers can also follow Metro’s WeChat to obtain promotional information of Metromall and place orders on their cell phones.

    Leveraging its global procurement network, Metro Group is set to enter the free-trade zone this year, partnering with China’s renowned cross-border e-commerce platforms, to provide consumers with an even broader range of high-quality imported goods.

    Metro China is committed to providing safe and high-quality products, and is the only wholesaler inChina with all stores to operate in accordance with HACCP (Hazard Analysis and Critical Control Points) standards to ensure that the processes of receiving, processing, storing and selling goods are hazard-free.

    Metro has also developed a complex traceability system, which records all processes from farm to market. Simply by scanning product barcodes, customers can view the entire product lifecycle, including where it was grown, how it was certified, and the logistics involved.

    The newly-upgraded eCommerce platform has enabled Metro to create a closed, online-to-offline loop for safe and traceable food, making Metro truly a multi-channel specialist.

    Metro Cash & Carry operates in 26 countries with over 750 self-service wholesale stores. Metro China has 80 outlets in 56 cities.

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  • VIP shop doubles revenue

    VIP shop doubles revenue

    Chinese online discount retailer Vip shop Holdings says it doubled its net revenue in the first quarter.

    The cmpany says a 75 per cent year-on-year increase in customers helped it achieve net revenue of  RMB8.6 billion (US$1.4 billion).

    Some 12.9 million people shopped on VIPshop over the last year, amassing 38.5 million individual orders.

    Gross profit increased by 99.6 per cent to RMB2.1 billion (US$345.4 million).

    Eric Shen, chairman and CEO of the NYSE-listed company, described the first quarter of 2015 as “robust”, thanks to improved brand recognition and new mobile initiatives.

    “Specifically, the mobile contribution of our platform as a percentage of gross merchandise volume climbed to approximately 72 per cent in the first quarter, which is more than double the average figure across the broader Chinese online shopping industry. Going forward, we will continue to scale our business with a greater focus on further enhancing the shopping experience for customers across multiple devices, attracting new customers and expanding our product offering.”

    Donghao Yang, CFO of Vip shop, added: “We are very proud of our first quarter 2015 financial results, which saw our revenue grow by 100 per cent year over year and the expansion of our operating and net margins. Additionally, our warehouse capacity, both leased and built, reached approximately 1.1 million sqm as of March 31, 2015, up from approximately 350,000 sqm a year ago.

    “Looking ahead, we are confident that by emphasizsng operating discipline, strategically investing in fulfillment and technology, and continuing to offer great shopping experiences to our growing customer base, we will be able to capitalise on the growth opportunities ahead and continue to deliver sustainable value for our shareholders.”

    For the second quarter of 2015, the company says it expects its total net revenue to be between RMB8.7 billion and RMB8.9 billion, representing a year-over-year growth rate of between 71 per cent and 75 per cent.

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  • Korean cosmetics a hit in China

    Korean cosmetics a hit in China

    Korean cosmetics products are expanding their presence in China on the back of the ‘Korean Wave’.

    Korea is the second biggest source of cosmetics sold in Asia’s second-largest, but fastest growing beauty market, according to data out this week.

    Out of $686.2 million worth of cosmetics China imported in the January-March period, South Korean products accounted for 19.1 per cent, or $131.2 million, coming next to France’s 33.6 per cent market share, according to the data compiled by the Korea International Trade Association (KITA).

    Japanese cosmetics took third with 15.3 per cent, followed by American brands with 11 per cent, KITA said.

    Korea moved up two notches from last year’s spot as China’s imports of Korean cosmetics more than tripled in the first quarter from a year ago, while French and Japanese products surged 10.2 per cent and 37.2 per cent, respectively, in the same period.

    Thanks to strong sales in China, total exports of Korean cosmetics nearly doubled to $582 million in the first three months of this year, which in turn improved their earnings.

    Amore Pacific, the nation’s leading cosmetics firm, posted 320.7 billion won in operating profit in the first quarter, a 50 per cent hike from a year earlier, its regulatory filing showed.

    Operating profits of Kormar, a smaller local rival, jumped 62.9 per cent over the period, far exceeding market expectations.

    LS Cosmetics, which is well-known for face mask sheets, logged 17.5 billion won in operating profit, recording an over 100 times on-year surge. Its shares, which are traded on the secondary KOSDAQ market, jumped 338 per cent this year to become one of the top earners in the local stock market.

    “Korean companies are showing stellar performance in the Chinese market based on the Korean Wave and competitive price ranges and brand lineups,” Na Eun-chae, a researcher at Korea Investment & Securities, said.

    “The outlook for Korean cosmetic makers is positive in the mid- and long- term.”

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