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Tag: China

  • Starbucks appoints its new China CEO

    Starbucks appoints its new China CEO

    Starbucks Coffee Company announced the promotion of Belinda Wong from president to chief executive officer of Starbucks China. Wong has been instrumental in Starbucks unprecedented growth in China—from 400 stores in 2011 to over 2,300 stores today—by leading on the foundational values of Starbucks mission and driving meaningful innovation for Starbucks partners (employees) and local customers in China. In this role, Wong will oversee Starbucks plans to double its scale to operate 5,000 stores in China by 2021. Wong will continue to report to John Culver, group president, Starbucks Global Retail.

    “Over the past five years, Belinda’s vision, experience and push for innovation has elevated Starbucks in the hearts and minds of the Chinese people and created a strong foundation for Starbucks growth in China,” says John Culver, group president, Starbucks Global Retail. “Belinda embodies our mission and values as a company, and her promotion will help further propel Starbucks efforts in building the partner and customer experience for the China market over the long-term.”

    “It is a privilege and honor to be appointed to lead Starbucks business in China during this important time,” adds Wong. “There continue to be tremendous opportunities for Starbucks in China and I look forward to further elevating the mission and values of our company through growth and innovation for our Chinese partners and customers.”

    Wong joined Starbucks in January 2000 and has held a number of leadership roles across the Starbucks China and Asia Pacific region. In her elevated role, Wong will focus on the overall long-term growth strategy and lead the innovation pipeline for Starbucks China. She will be responsible for key areas, including the vast digital and e-commerce opportunities across the market and overseeing the opening of Starbucks first international Starbucks Roastery in Shanghai in 2017.

    As president of Starbucks China, Wong led the evolution of the Starbucks Experience in China with the opening of four unique flagship stores which put the coffee passion and craftsmanship of baristas at the forefront of the customer experience. Over the past five years, Starbucks also launched several initiatives to elevate the Starbucks partner experience, reflecting the company’s foundational belief in the importance of investing in partners’ futures to support their growth and professional aspirations. Partner initiatives include a housing allowance subsidy for full-time baristas and shift supervisors, ongoing training and development opportunities through the Starbucks China University program and the company’s first-ever Partner Family Forums which showcased Starbucks deep culture and values to parents of Starbucks partners so they could learn about the company.

    In September 2016, Wong was among 50 recipients to receive the Magnolia Award by the Shanghai Municipal Government in appreciation of her outstanding contributions and support of Shanghai’s development. Wong was also listed as one of the 50 people shaping the future of the U.S. and China relationship by Foreign Policy, and the Top 100 Chinese Business Women by Forbes China in 2015. Since 2012, Wong has been ranked one of the top 25 on Fortune China’s prestigious annual list of China’s most influential businesswomen.

    Leo Tsoi, who most recently has served as Starbucks China’s vice president of Store Development and Design, has also been promoted to the role of chief operating officer of Starbucks China. As COO, Tsoi will continue to scale and deepen Starbucks store footprint, transform the infrastructure in the market, implement key operational systems, and evolve the Food business to elevate the customer experience in China. As VP, Store Development and Design, Tsoi and his team accelerated Starbucks store growth to 550 new stores, including flagship stores, high profile coffee-forward stores, 75 Reserve bars and more than 380 Pour Over bars for Starbucks customers.

    Since joining the company in 2012, Tsoi has led several key areas of the business as chief marketing officer and VP, North China, to firmly define Starbucks coffee leadership position in the market.

    Both Wong and Tsoi’s roles are effective immediately.

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  • JD beats profit estimates after boost from partnership deals

    JD beats profit estimates after boost from partnership deals

    China’s JD.com beat analysts’ expectations for quarterly adjusted profit, as its partnership with global brands such as Louis Vuitton-owner LVMH helped it attract more shoppers to its e-commerce platform.

    The results come amid a crackdown on the tech industry by Chinese regulators that has led to an upheaval in sectors such as e-commerce, gaming, ride-hailing and cryptocurrency.

    Net revenue at JD.com rose about 26% to 253.8 billion yuan ($39.14 billion) in the second quarter ended June 30. Analysts had expected revenue of 249.27 billion yuan, according to IBES data from Refinitiv.

    JD’s annual active customer accounts jumped 27.4% to 531.9 million.

    JD’s strategy of holding inventory and having full control of its in-house delivery network has also helped it compete with larger rival Alibaba Group, which outsources its logistics operation to third-party firms.

    Sales in JD’s product segment, which includes online retail, rose over 23% to 219.69 billion yuan.

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  • JD launches online pet consultation services

    JD launches online pet consultation services

    JD.com launched its biggest ever 3,000-square-meter exhibition at the China Digital Entertainment Expo & Conference, a.k.a ChinaJoy2021, which is taking place from July 30 to August 2 in Shanghai.

    The exhibit is designed to showcase the latest gaming industry trends, what motivates China’s Gen-Z consumers, as well as the tremendous marketing opportunities arising from these developments, according to JD’s planning team for ChinaJoy.

    As China’s most well-known shopping platform particularly in the area of electronics products, JD will spotlight a number of new gaming products on site to bring a fresh experience for visitors. Beyond that, brands and products ranging from fashion and cosmetics to home appliances and furniture have also joined the bandwagon to introduce their co-branded offerings or tailored-made products in JD’s exhibit and via JD’s online platform.

    China’s e-sports market is expected to reach RMB 270 billion yuan by 2022, and will be an official event for the 2022 Asian Games in Hangzhou, China. In response, JD is ramping up efforts to tap the potential of this market and associated partners to incubate a wider industry ecosystem.

    During this year’s ChinaJoy, JD announced that it will update its JD Esports plan, which was launched at ChinaJoy 2020 in collaboration with device makers like Lenovo, gaming leaders like Tencent and livestreaming platforms like Huya, to develop a one-stop e-sports service platform encompassing hardware, software, content and events.

    As Gen-Z is driving much of the growth in this market, JD is also increasing its marketing outreach to younger consumers. A lineup of live shows, games and interactions with e-sport influencers will be rolled out during the three-day event to appeal to young visitors with interest in anime culture.

    Furthermore, JD’s efforts in cultivating the market have also included two gaming teams in recent years, both of which have gained wide popularity among young gamers and wider audiences: JD E-sports (JDE) for Peacekeeper Elite League (PEL) and JDG (JD Gaming) Intel e-Sports Club for League of Legends (LoL). The latter is one of the top-performing teams in the League of Legends Pro League (LPL). Plus, JD has organized the nationwide annual e-sports tournament JD Cup since 2014, in an effort to grow awareness of JD as a one-stop platform for everything related to e-sport, from gears, content to entertainment.

    Major Zhu, head of integrated marketing of JD Retail, said during the expo that JD will continue to deepen its investment in e-sports. Basing on the company’s strength in supply chain and big data, it can leverage its deep understanding in e-sports to bring partners together, presenting more high-quality products, services and entertainments for the growing e-sports fan base, and contributing to the development of China’s e-sports industry.

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  • China reopens border gate with Vietnam

    China reopens border gate with Vietnam

    China has reopened one of its border gates in Guangxi with Vietnam after closing it for several days due to Covid-19 fears.

    Trade resumed Wednesday at Tan Thanh Border Gate in the northern province of Lang Son after customs officials of both countries agreed on Covid-19 safety measures.

    There are over 1,000 trucks stuck at the gate and another major gate in the same province, Huu Nghi, said Nong Hai Thang, director of border gate management in Lang Son.

    “Trucks need to wait two days to pass the gate.”

    The delay is caused by China imposing more stringent examinations on vehicles and products to prevent Covid-19 contagion.

    There are 12 big and small border gates in Lang Son.

    Vietnam has recorded nearly 290,000 Covid-19 cases since the end of April.

    China was Vietnam’s second-largest export market in the first seven months with a value of $28.7 billion, up 24 percent year-on-year, according to the General Statistics Office.

  • Victoria’s Secret joins JD with store

    Victoria’s Secret joins JD with store

    Victoria’s Secret is expanding its online presence in China with the launch of a flagship store on JD, the e-commerce platform.

    A representative from JD’s underwear business said the collaboration of the two companies not only expands JD’s cooperation with international fashion brands, but also provides additional choices for JD’s customers pursuing high-quality products.

    The JD flagship store offers Chinese customers Victoria’s Secret’s full range of classic bras, panties, lingerie and T-shirts. The launch came in time for the Chinese Valentine’s Day when sales are expected to boost as local consumers buy gifts for their loved ones.

    The online flagship follows the opening of the brand’s first China duty store in Hainan Tourism Duty-Free Shopping Complex earlier this month.

    The US lingerie brand closed its high-profile Victoria’s Secret flagship store in Hong Kong last year after two years of operation.

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  • Ikea’s malls arm branches out into housing with new China centre

    Ikea’s malls arm branches out into housing with new China centre

    Ikea’s shopping malls business – one of the world’s largest – has kicked off the sales process for some 500 flats at its first-ever mixed-use retail and residential development, in Changsha, southern China.

    Cindy Andersen, MD at Ingka Centres since February, said in an interview she expected flat buyers to start moving in during March next year, after the adjacent mall opened last month following pandemic-related delays.

    Ingka Centres has 45 malls, or “meeting places” as it calls them following a strategy tweak a few years ago, anchored by Ikea furniture stores across Europe and Russia, and in China where they are branded Livat.

    The company has shifted towards more entertainment and social spaces in its developments as consumers, in China in particular, increasingly shop online, visiting malls more for food or movies. Andersen told Reuters a third of tenants at the Livat Changsha mall were retailers currently.

    With housing, it is testing yet another income leg, banking on the rapid urbanization in China. Livat Changsha’s residential building, besides the flats, also sport common living and workspaces designed and decorated in co-operation with Ikea that it hopes will appeal to people working from home.

    Andersen said the Livat Changsha mall – Ingka Centres’ fifth in China and its first development across markets to also offer housing – had around 95-per-cent occupancy in July, with tenants ranging from restaurants and sport and entertainment outlets to around 350 retailers including Decathlon and Uniqlo across 130,000sqm.

    “I think we had a really relevant strategy even before the pandemic, and now the trends we saw already then have accelerated.”

    The atrium of the Livat shopping centre in Changsha, China. Image: Ingka Centres.

    She said that Ingka Centres, along with parent Ikea, still has great belief in a future of physical shopping, including in China, as long as it is tailored to consumer expectations around services, omnichannel and convenience.

    “There is a need to include retail experiences in the meeting places also going forward. We have a lot of confidence this is a need for the consumer also in China,” she said, adding that Ingka Centres had added 50 international retail brands to its portfolio in China over the past year.

    “I think it very much comes down to the fundamental needs of people. We like to be with other people and we like to be in environments where we can experience, where we can touch and feel,” she said.

    Across markets, Ingka Centres is trying various omnichannel models and digital services at its malls with tests ranging from local e-commerce platforms to live shopping events.

    At Livat Changsha – where it has invested more than US$616.8 million to date – the focus initially will be on a loyalty scheme app that is connected to Chinese social media WeChat, sporting services such as virtual reality centre navigation, online restaurant queuing and cinema ticket purchases.

    Andersen said the program currently has around 2.3 million members in China, compared with 1.5 billion in May last year.

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  • OCBC Deputy President Retires

    OCBC Deputy President Retires

    OCBC’s deputy president will retire after 22 years with the Singaporean bank. OCBC deputy president Ching Wei Hong will retire at the end of September, according to an exchange filing.

    Ching first joined OCBC in November 1999 as head of transaction banking and has since held various senior roles including chief financial officer, chief operating officer and chairman of Bank of Singapore before being named deputy president in early 2020.

    I am deeply grateful to Wei Hong for building a strong foundation upon which our wealth management and consumer banking businesses will grow from strength to strength. Please join me in wishing him a healthy and happy retirement, according to a report citing an email from chief executive Helen Wong.

    Separately, the bank has appointed Sunny Quek as acting head of global consumer financial services, effective October 1, as well as director of OCBC Securities, subject to regulatory approval.

    Quek will report to Wong and Bank of Singapore CEO Bahren Shaari. Quek is currently OCBC’s head of consumer financial services in Singapore.

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  • Adidas hit by China boycott, Vietnam factory closures

    Adidas hit by China boycott, Vietnam factory closures

    Adidas felt the impact of a Chinese boycott of Western brands on its second-quarter results and is also suffering from the closure of factories in Vietnam due to Covid-19 infections.

    The German sportswear company still raised its outlook for full-year sales and profitability as it said it has seen demand recover in China since calls for a boycott in late March, and said it hopes to restore production in Vietnam soon.

    But Adidas shares were down 4.1 percent by 9:50 GMT as analysts noted that its growth was lagging rivals Nike and Puma, which both reported that sales nearly doubled in recent earnings releases.

    Second-quarter sales at Adidas rose 52 percent to 5.077 billion euros ($6 billion), while operating profit came in at 543 million euros, ahead of analysts’ average forecasts.

    Adidas raised its 2021 outlook to predict sales will grow up to 20 percent, and net income from continuing operations will reach 1.4-1.5 billion euros. That compared to Puma’s forecast for sales to rise at least 20 percent for 2021.

    Adidas already saw online sales return to growth in China in June, Chief Executive Kasper Rorsted told journalists, adding he expects the country to record strong growth for the full year and he welcomed a government drive to promote youth sport.

    The company hopes to be able to restart production in Vietnam after the scheduled end of a coronavirus lockdown on Aug. 15 and is working on reallocating production to other centres in the meantime.

    Vietnam usually accounts for 28 percent of Adidas sourcing and its factories mostly make shoes for the company, with a lag of three to four months before products hit the shelves.

    The combined impact of supply chain problems, new Covid-19 lockdowns in Asia and tensions with China could amount to more than 500 million euros in lost sales in the second half, said finance chief Harm Ohlmeyer.

    Ohlmeyer added he expects Adidas to seal a deal to divest the underperforming Reebok brand by the end of the summer.

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  • Car dealers’ profits soar

    Car dealers’ profits soar

    Auto dealers reported three- and even four-digit growth in net profits year-on-year in the first half of the year amid a surge in demand.

    Saigon General Service Corporation (Savico) reported profits of more than VND140 billion, a 487-percent rise, on consolidated revenues of over VND7 trillion ($304.3 million).

    Hang Xanh Motors Service Joint Stock Company (Haxaco), a major dealer for Mercedes-Benz, merely said profits grew in triple digits to VND61.5 billion.

    Truong Long Auto & Technology Joint Stock Company reported growth of 650 percent.

    Ford dealer City Auto Corporation said profits were up 3,300 percent at VND17 billion.

    TMT Motors Corporation reported profits of VND21 billion, up 1,650 percent.

    The strong profit growth somewhat reflected a recovery in the market, with Hang Xanh saying sales in the second quarter rose by 20 percent year-on-year.

    According to the Vietnam Automobile Manufacturers’ Association, its members sold over 135,600 vehicles in the first half, up 32 percent. The numbers do not include the sales of Audi, Jaguar Land Rover, Subaru, Volkswagen, Volvo and some others, who did not reveal their numbers.

    According to the General Department of Vietnam Customs, the country imported over 81,100 complete built-up vehicles in the six-month period, a 100.5 percent increase.

    But dealers expect a gloomy market in the second half, mainly due to the impact of Covid-19.

    Saigon General Service Corporation said the pandemic would have a strong impact on sales in the third quarter.

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  • Chinese smartphones have 50 percent market share

    Chinese smartphones have 50 percent market share

    With Vietnamese phone brand Vsmart stopping production, Chinese smartphones grabbed a 50 percent market share in the second quarter of this year, according to Counterpoint Research.

    Of five prominent Chinese brands, Xiaomi, Oppo and Vivo accounted for a 45 percent share, according to the global research firm that specialized in technology, media and telecom. South Korea’s Samsung from and the U.S.’s Apple account for another 44 percent.

    Smartphone sales grew by 11 percent year-on-year in the second quarter. Pent-up demand and a new user base coming from the feature phone segment largely contributed to this growth, according to Counterpoint’s Monthly Vietnam Channel Share Tracker.

    Samsung topped with a 37-percent share riding on the Galaxy M31, Galaxy A12 and Galaxy A02s.

    Xiaomi was in second spot with 17 percent driven by the Redmi 9 and Note 10 series. OPPO and Vivo took third and fourth spots.

    The OPPO A series was the volume driver for the brand and it was the Y series for Vivo. Apple continued to do well in Vietnam and became the fifth-largest brand in the market.

    Six of the 10 best-selling smartphones at FPT Shop in the second quarter were Chinese, including Oppo the A15, Oppo Reno 5 and Vivo Y20.

    5G-capable smartphones have a 14-percent share of the market, and it will grow as mwobile phone operators are gearing up to launch 5G services, according to Counterpoint.

    Vietnam has already started 5G trials, with Viettel becoming the first company to do so.

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  • Alibaba misses revenue estimates during regulatory crackdown persists

    Alibaba misses revenue estimates during regulatory crackdown persists

    China’s Alibaba Group Holding missed analyst estimates for first-quarter revenue on Tuesday, as its e-commerce business was hurt by rising competition from smaller players such as JD.Com and Pinduoduo I.

    Alibaba’s results mirror those of e-commerce giant Amazon.com in the United States, as the easing of pandemic-related restrictions has led to more consumers visiting physical stores rather than ordering online.

    Core commerce revenue for Alibaba rose about 35% to 180.24 billion yuan in the quarter, compared with estimates of 184.23 billion yuan. In the fourth quarter, the unit’s revenue surged more than 70%.

    Overall, revenue rose about 34% to 205.74 billion yuan ($31.83 billion) in the first quarter ended June 30, below estimates for 209.39 billion yuan, according to IBES data from Refinitiv.

    Net income attributable to shareholders fell to 45.14 billion yuan, compared with 47.59 billion yuan a year earlier.

    On an adjusted basis, the company earned 16.60 yuan per share, above estimates for 14.43 yuan.

    Ant Group, the fintech affiliate of Alibaba Group, recorded a profit of about 13.48 billion yuan in the quarter ended March, according to the Chinese e-commerce giant’s filing.

    Alibaba, which holds about a third of Ant, posted a profit of 4.49 billion yuan for the quarter ended June 30 from its investments in the financial conglomerate.

    Revenue in Alibaba’s cloud computing division grew 29% year-on-year, reaching 16.05 billion yuan ($2.49 billion)

    The results come amid an ongoing Chinese regulatory crackdown on the industry, during which Alibaba has become one of the main targets.

    Late last year, regulators halted a planned $37 billion IPO of Ant Group in Shanghai and subsequently called for a restructuring of the financial unit.

    In April, China’s anti-monopoly regulator fined Alibaba $2.75 billion for engaging in anti-competitive practices.

    During an earnings call with investors, Alibaba CEO Daniel Zhang said the company would continue to monitor the impact of ongoing regulatory changes on the company’s business.

    He cited a recent regulatory crackdown on community marketplace platforms letting sellers offer items below market price as one example of a sector the company is monitoring, in addition to the Data Security Law and an investigation from the Ministry of Industry and Information Technology into open links between rival platforms.

    “We are in the process of studying the regulatory requirements, evaluating the potential impacts on our relevant businesses and we will respond positively with actions,” Zhang said.

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  • China’s Electric Vehicle Makers Report Strong July Sales

    China’s Electric Vehicle Makers Report Strong July Sales

    Electric vehicle sales at China’s Li Auto and Xpeng Inc more than tripled in July from a year ago, while they doubled at Nio Inc, helped by robust demand for new energy automobiles in the world’s biggest auto market.

    The rise in July deliveries comes at a time when electric car makers have been expanding manufacturing capacity in China, encouraged by the country’s policy of promoting greener vehicles.

    U.S.-listed shares of Xpeng surged as much as 8.9% to a near two-week high of $44.12, Li Auto rose as much as 6.1% to a one-month high of $35.44, while Nio gained as much as 4.7% at $46.78.

    Nio, Li Auto and Xpeng compete with U.S. electric car maker Tesla, which dominates the EV market in China.

    Nio, the maker of the ES8 and ES6 electric sport-utility vehicles, said it delivered a total of 7,931 vehicles in July, up 124.5% from a year earlier. Deliveries had more than quadrupled in July 2020.

    Xpeng, which makes the P7 sedan and G3 sport-utility vehicles, said its July deliveries jumped 228% to 8,040 vehicles.

    Li Auto, the producer of Li ONE SUVs, said it delivered 8,589 Li ONEs last month, an increase of about 251%.

    The strong sales numbers for the EV makers come as a global recovery in auto sales is being threatened by chip shortage that has forced automakers around the world to adjust assembly lines, cut productions and shutter factories.

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  • Nokia secures first 5G contract in China

    Nokia secures first 5G contract in China

    Nokia secured a 5G RAN contract for China Mobile on Monday, making this the company’s first 5G contract in the country.

    Nokia was awarded a 10% share in one of three contracts tendered by China Mobile, while Ericsson obtained 9.6% of another contract. The total tender for all three contracts reached about $6 billion, with Nokia being awarded 4% of the overall tender. Comparatively, Ericsson was awarded 2%, dropping from about 11% last year.

    Together, Huawei and ZTE won the majority share in all three contracts to build 5G 700 MHz base stations for China Mobile and China Broadcasting Network. This is followed by a smaller local company Datang Corporation.

    China Telecom and China Unicom will also be disclosing awards of their respective 5G contracts.

    Currently, China is ahead of other countries in 5G deployments. According to data from the Ministry of Industry and Information Technology, China had deployed 820,000 5G base stations by the end of March.

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  • Avaloq Names New Regional Directors

    Avaloq Names New Regional Directors

    The Swiss-based banking software provider has announced a pair of senior promotions at its Asia-Pacific business.

    Avaloq has appointed Gery Dachlan as managing director for South Asia and Australia, and Pascal Wengi as managing director for the North Asia region, according to an announcement on Wednesday.

    Based in Singapore, Dachlan joined Avaloq in 2013 and was previously its market head of South Asia and Japan, responsible for driving business development and expanding key relationships in the region.

    Wengi, based in Hong Kong, joined Avaloq in 2020 as head of sales for Greater China.

    The appointments reflect the region’s growing prominence in its growth strategy, Avaloq said in the announcement.

    The moves follow the firm’s acquisition by Japanese tech giant NEC in December 2020. In March 2021, Juerg Hunziker stepped down as CEO, with product chief Martin Greweldinger and technology boss Thomas Beck (below, right) taking over from him as co-CEOs.

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  • Bank of China to Open Geneva Branch

    Bank of China to Open Geneva Branch

    Bank of China, the country’s most globalized bank, is giving Geneva a second chance and opening a branch there again, but this time the focus will be different.

    Bank of China Geneva Branch was registered on the Commercial Register on June 15 and listed as an authorized bank by Swiss financial regulator Finma on July 9, the bank said in a press release Monday.

    Bank of China is the most globalized and integrated Chinese bank. The bank is ranked among the «Fortune Global 500» for 31 consecutive years and among the global systemically important banks for nine consecutive years. Its overseas service network covers 62 countries and regions, the press release said.

    It added that with the establishment of its bank in Switzerland, the Bank of China would work to build a bridge for Sino-Swiss trade and investment, providing comprehensive trade finance products and commodity trade financial services to Swiss enterprises doing business with China and Chinese enterprises in Switzerland.

    The bank previously opened a branch in Geneva in 2008 and intended to operate a classic wealth management model. It was unsuccessful and closed eight years ago, with the business sold to Julius Bär. The new branch’s focus, by contrast, will be on corporate clients. Bank of China employs around 300,000 people globally.

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