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Tag: China

  • Foxconn eyes development of $319 million workers housing

    Foxconn eyes development of $319 million workers housing

    Taiwan’s Foxconn wants to build housing for workers in northern Vietnam and has made a proposal to the government. The world’s largest contract manufacturer, a contractor for Apple and other global giants seeks to develop three housing projects at a cost of about VND7.4 trillion (nearly $319 million), and has apprised the Ministries of Construction and Planning and Investment of its interest.

    Foxconn wants to build them near industrial parks where it has its plants so that its own workers can also be housed in them.

    If approved by authorities, a project in Viet Yen District in Bac Giang Province will be the largest at 16.7 hectares and have the highest investment of VND3.42 trillion (about $147.4 million).

    Up to VND2.93 trillion ($126.3 million) will be invested in a 6.3-hectare project in Bac Ninh Province’s Que Vo District and the rest of the total investment will be poured into a 9.9-hectare project in Vinh Phuc Province.

    The company said besides apartments they would also have healthcare facilities, schools and shops.

    Since current policies pose certain hurdles, it plans to sell the houses to companies in the industrial zones for them to lease or sell to their employees.

    Foxconn came to Vietnam in 2007, and has been operating mainly in the northern provinces of Bac Ninh, Bac Giang and Vinh Phuc, manufacturing computers and other electronic products and car parts. Last year it expanded to the northern province of Quang Ninh.

    Last week it said for the first time that Vietnam is its largest manufacturing hub in Southeast Asia.

    This year Foxconn expects its exports from Vietnam to double to $6 billion.

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  • China Regulator Issues Record-High Penalty

    China Regulator Issues Record-High Penalty

    China’s securities watchdog issued 3.6 billion yuan of penalties over a case of insider trading by a Shanghainese entrepreneur and his daughter – an all-time record-high regulatory fine.

    Wang Yaoyuan and his daughter Wang Chengcheng were fined 2.72 billion yuan ($380 million) for using inside information to build long positions on the shares of listed healthcare company Joincare Pharmaceutical Group. The two made a net gain of 906.4 million yuan ($128 million) which was also confiscated by the China Securities Regulatory Commission (CSRC).

    According to the CSRC, the two had obtained insider information that Joincare’s second-largest shareholder Hongxinhang would transfer a 4.8 percent stake to units controlled by two major investors: Tencent founder Ma Huateng and ZhongAn chief executive Ou Yaping. The elder Wang obtained insider information in 2015 through Ou and the controller of Hongxinhang via phone calls and physical meetings.

    Neither Tencent’s Ma nor ZhongAn’s Ou was fined or reprimanded by the regulator.

    China’s regulator has been increasingly active with issuing fines in a move viewed by onlookers as the end to the practice of immaterial penalties to further discourage unhealthy practices. Earlier this year, the People’s Bank of China imposed the first-ever fines of above 10 million yuan ($1.4 million) to China Minsheng Banking Corporation, China Everbright, and Huatai Securities.

    In the first quarter of 2020, the CSRC issued a total of 19 penalties accounting for a 35 percent year-on-year increase, involving mostly cases of insider trading, market manipulation and violation of disclosure rules.

    The 3.6 billion yuan fine on the Wangs reportedly surpassed the former leading fine of 3.47 billion yuan issued against the ex-controller of Shanghai Duolun Industry over price manipulation and disclosure breaches.

  • Chinese tea brand Nayuki opening in Japan

    Chinese tea brand Nayuki opening in Japan

    Chinese fruit-based cheese tea brand Nayuki is making its debut in Japan, opening its first cafe in the Zero Gate shopping complex in Osaka.

    The new 200sqm store features a teahouse experience similar to the brand’s locations in its home market, incorporating special details to match modern Japanese culture.

    “As a brand dedicated to becoming the innovator and promoter of the tea culture, we wish to deliver an exceptional experience for the local residents, one that reflects our passion for creating unique tea-based drinks for tea lovers worldwide,“ said Nayuki founder Peng Xin.

    The new outlet serves a wide range of tea drinks made by tea baristas as well as low oil and sugar-content soft-euro bakes.

    Nayuki operates nearly 400 stores in China, ranging from 1200–11,000sqft in prime locations across the country and also has stores in Singapore.

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  • Huawei opens its largest flagship store in Shanghai

    Huawei opens its largest flagship store in Shanghai

    The new Huawei Shanghai store, the Chinese smartphone and electronics brand’s largest yet, opened its doors this week. The three-story Huawei Shanghai flagship covers 50,000sqm – equivalent to the size of a small to medium shopping mall. It houses the full product range, experience zones and an exhibition area

    Construction of the flagship began during February and is said to have cost more than US$42 million to complete.

    Taking over the space once housing a giant Forever 21 store, the Huawei Shanghai flagship is built in an art deco-style building, incorporating modern design while preserving its original form.

    The store is adjacent to Apple and neighbor to Samsung and Gucci on the city’s oldest commercial street. Its location is part of the current Nanjing Road extension project, connecting the pedestrian mall to the Bund.

    Consumer products can be found on the first floor spanning 12 categories, from phones to smart wearables. Some 220 consultants work in the store, with skillsets including music, dance and v-logging. The theory is that by sharing common interests and hobbies with customers, they can offer suggestions on product use and technical support.

    Staff are able to provide services in more than 10 languages, including the local Shanghainese dialect. There are 19 checkout counters and 12 repair stations

    The second floor features a “Seamless AI Life Zone” encompassing smart experiences in different scenarios such as a smart home, mobile office, fitness and health, travel and entertainment. Products are placed in settings to enable guests to experience the Internet of Things paired with Huawei’s proprietary 5G technology.

    Meanwhile, the upper floor debuts a multi-functional experience zone as an exhibition space for films, paintings and art. Customers can also view Huawei’s first smart vehicle, HiCar.

    The flagship houses many public spaces with the patio of the building functioning as an atrium. Customers are invited to relax and roam around the store, socialise with friends and chat to consultant experts as part of the brand’s community-building initiative.

    More than 60 lectures every week will be available free, covering topics including video production, programming, fitness, and music. Creators and technology experts from around the world, as well as local artists, will be invited for art salons, sharing meetings, and developer talks every month.

    “Our relationship is not just a buyer-seller relationship. We have a deeper bond with our customers,” explains Richard Yu, CEO of Huawei’s consumer business group. “The flagship store is a place for consumers, customers, and developers to get together.”

    Tony Rong, global retail director of Huawei has hinted that more flagship stores will open in other major Chinese cities, including Beijing and Guangzhou. The brand will also soon debut in Germany, Russia and the UAE.

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  • Iconix Brand Group sells Starter China stores

    Iconix Brand Group sells Starter China stores

    American brand management company Iconix Brand Group has sold the Starter China business for US$16 million to an unnamed local investor.

    The Starter divestment is the second Chinese transaction by the US company this year following an agreement reached in April to sell the Umbro China business for $62.5 million to HK Qiaodan Investment Limited. Both deals will be settled by September 15.

    Iconix’s portfolio of international brands includes denim brand Lee Cooper, Mossimo, Mudd Jeans, Ed Hardy and Jay-Z’s streetwear label Rocawear. It also owns footwear brands including Ecko Unltd and ranges from Madonna.

    The new owners of Starter in China will assume distribution rights for Mainland China, Hong Kong, Taiwan and Macau.

    Funds raised from the sales are being applied to reduce Iconix’ debt and otherwise for general corporate purposes.

  • Chinese Bank Runs Pile Up

    Chinese Bank Runs Pile Up

    Signs of concerns continue to build up in China’s financial system with another two lenders affected by recent bank runs.

    The Local governments and police of Baoding city in Hebei province and Yangquan city in Shanxi province pleaded customers not to withdraw cash from local lenders Baoding Bank and Yangquan Commercial Bank, respectively.

    Last week, the Baoding city government reassured on its social media account that Baoding Bank was operating normally while urging the public against believing or spreading rumors. The police followed up with a statement claiming it had arrested two individuals for spreading rumors that led to «panic among the public».

    Yangquan’s government also issued a similar statement, adding that customers should be watchful of risks of holding a lot of cash.

    There are growing concerns from China’s public about the health of the domestic financial system evidenced by increasing bank runs. In April this year, the Bank of Gansu was hit by a bank run which led to regulator intervention. During a two-week period In November last year, depositors from Liaoning-based Yingkou Coastal Bank and Henan-based Yichuan Rural Commercial Bank swarmed to withdraw cash.

    Bank runs aside, China has also had to increasingly restructure banks including last year’s historic trio of bailouts which included Baoshang Bank, Bank of Jinzhou and Hengfeng Bank.

    At the end of 2019, Baoding Bank’s non-performing loan ratio was 2.12 percent, up from 2.09 percent in 2018. Yangquan Bank has not published data for 2019, but its ratio had more than doubled to 2.57 percent in 2018 from 1.03 percent in 2017.

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  • JD and Sony testing AR foot-measurement tool for online shoppers

    JD and Sony testing AR foot-measurement tool for online shoppers

    Chinese online e-commerce platform JD and Sony Semiconductor Solutions are working together to develop AR technology to measure foot size online.

    The JD and Sony solution requires customers to use their smartphone equipped with a distance-detecting camera and scan the front and sides of their feet in order to take an accurate measurement. The camera works by calculating the time it takes for a signal to bounce off the foot and return to the sensor.

    JD launched an AR feature on its app earlier this year for online customers to virtually try on shoes, a function is now available for more than 1000 sneaker SKUs on the platform and which is also available to external partners as a service, along with the firm’s other AR applications.

    “We hope to use innovations in technology to give all consumers equal access to efficient and convenient purchase and service,” said JD’s head of AR/VR Mingqiang Ye.

    “JD will continue to promote innovations in the area of AR and benefit both our customers and industry partners.”

    The firm is now planning to further develop its AR offerings in additional scenarios such as AR skin evaluation and AR live streaming.

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  • Carrefour China set to open 100 more restaurants

    Carrefour China set to open 100 more restaurants

    Supermarket operator Carrefour China plans to open 100 restaurants at its existing stores.

    The first outlet of Carrefour restaurant chain Mr Fu has opened at its Gubei branch in Shanghai, followed by a second in Chongqing.

    “With more than 2000 products in a self-run goods pool, Mr Fu will introduce at least 30 new products each month,” said Li Yijiang, head of catering business division at Suning Carrefour China.

    The renovation work will be launched at selected Carrefour branches and will not be outsourced to a third party.

    “We will have more independence to promote food and drinks according to different festive occasions and promotional activities, and we also offer customized decoration styles at consumers’ requests,” Li told the Shanghai Daily.

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  • Superdry exiting Mainland China

    Superdry exiting Mainland China

    British clothing label Superdry is set to quit the Mainland China market after five years of mounting losses.

    Several Chinese-language fashion industry news channels on the mainland are reporting clearance sales in Superdry stores – a rare event in itself – with merchandise discounted by 25 or 30 percent.

    A staff member of a Superdry Xiamen store told Interface Fashion that sold stock was not being replenished. “We have received a notice from the Shanghai company that we will withdraw from the Chinese market in July,” she said, in a comment translated from traditional Chinese.

    News of Superdry’s withdrawal from Mainland China was confirmed by Azoya, which monitors multiple Chinese-language sources, in a LinkedIn post overnight. Azoya said steep discounts of the brand’s merchandise were also being offered on e-commerce platforms such as Tmall, JD and Vipshop.

    Superdry launched in China in September 2015 with a catwalk show at the British embassy in Beijing. In partnership with Trendy International Group which has around 3000 stores on the mainland, Superdry originally planned to open two to five stores in the first year. Each of the two companies pledged to invest £9 million each over 10 years to develop the brand.

    A spokesperson for Superdry’s Chinese partner neither confirmed or denied a decision for the brand to quit China in a note sent to Interface Fashion.

    “At present, due to the impact of the epidemic, Superdry and Trendy Group are currently reviewing the joint venture business and Superdry China operations.”

    Meanwhile, other sources have reported via Weibo that since April 1, about 90 percent of Superdry China employees, from store roles to head office, have been under pressure to take unpaid leave, while management and directors have accepted a 25-per-cent salary reduction.

    Ker Zheng, marketing & partnerships executive with Azoya said that Superdry failed to stand out as a brand in China.

    “Streetwear is trending upscale these days – while the prices at Superdry are high, I don’t think the brand has invested enough in marketing to really differentiate itself from other competitors. It’s not a popular brand,” he said.

    “Apparel is a tough and competitive industry and not many other foreign players besides Uniqlo and Zara have succeeded in China. In the past Chinese males have been less likely to splurge on shopping and prefer to buy simpler clothes, but this is starting to change, so there is hope.”

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  • China retail sales decline eases in May

    China retail sales decline eases in May

    The decline in China retail sales sparked by the advent of Covid-19 slowed substantially in May as the country continued to reopen for business.

    The consumer goods retail sector in China saw a year-on-year decline of 2.8 percent last month, according to the National Bureau of Statistics.

    That decline was a significant improvement on April, when China retail sales fell by 7.5 percent.

    Retail takings hit US$451 billion during May.

    However, the mainland’s catering industry remained heavily affected by the pandemic, with sales down by 18.9 percent year on year last month. That was still better than the 31.1-per-cent decline of April.

    Statistics show that online shopping is continuing to boom, with a 4.5 percent increase during the first five months of this year over last year’s results.

  • Muji convenience-store concept trials at JD HQ

    Muji convenience-store concept trials at JD HQ

    Following the launch of Muji Hotel and Muji Infill (a home-renovation service) in China, the Japanese home and lifestyle retailer has branched into convenience retailing.

    Located inside JD’s Beijing headquarters, the Muji convenience-store concept, called Mujicom, takes up 605sqm and has 71 seats for dining.

    Stocking essential daily goods along with books, food, and beverages, the store serves employees of JD.

    The Muji convenience store actually made its initial debut at Musashino Art University in Tokyo with an additional workshop space for students to use as a working and creative collaborative space.

    The retailer is set to open three new stores in China this month atop of Mujicom, including outlets at Hangzhou and in Shenzhen Airport.

    Muji also recently opened its largest Hong Kong flagship store, expanding its food and catering range with fresh-baked goods and a new coffee and tea bar.

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  • Saucony opens first store in Shanghai

    Saucony opens first store in Shanghai

    Heritage running shoe brand Saucony has opened its first store in Shanghai at Super Brand Mall.

    The company says the opening represents an important milestone in the brand’s development in China.

    The 122-year-old brand is actively expanding its Chinese retail network by entering major cities in order to cater to burgeoning demand from the country’s growing elite class.

    The start of business also marks a transition in Saucony’s marketing strategy from online stores to physical stores in the market, while raising awareness of the brand’s shoes and apparel in China. The company intends to follow through with more brick-and-mortar stores in other Chinese cities.

    The store was launched by management from Saucony and its local partner Xtep.

  • China Auto Sales Growth Seen For Second Straight Month

    China Auto Sales Growth Seen For Second Straight Month

    China’s vehicle sales are estimated to rise 11.7% on year in May, its top auto industry body said on Tuesday, cementing hopes of a recovery in the world’s biggest auto market with the first back to back monthly sales increase in about two years. The China Association of Automobile Manufacturers (CAAM), in a post on its official WeChat account, said vehicle sales were estimated to rise to 2.14 million in May. It said the numbers were based on sales data it had collected from key companies, without giving further details.

    China’s vehicle sales are estimated to rise by 11.7 percent on-year in May,

    CAAM expects January to May auto sales in China to fall 23.1% year on year to 7.9 million units.

    As the global auto industry is hit hard by the coronavirus pandemic, China has become a ray of hope for automakers including Volkswagen and General Motors

    In April, China’s auto sales hit 2.07 million units, up 4.4% from a year earlier, the first monthly sales growth in almost two years, CAAM data showed.

    China is expected to see a drop of 15 percent in auto sales, even if the COVID-19 outbreak is contained effectively

    It cautioned last month that even if China contains the outbreak effectively, its auto sales are expected to drop 15% this year, from over 25 million vehicles in 2019. If the pandemic continues, the annual sales contraction will likely be by up to 25%.

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  • JD plans US$4.05 billion Hong Kong exchange listing

    JD plans US$4.05 billion Hong Kong exchange listing

    Chinese e-commerce giant JD is looking to raise up to US$4.05 billion in a secondary share listing in Hong Kong.

    The new 133 million shares, priced at $30.45 each, most likely will make the listing among the largest in the territory this year.

    US regulations for Chinese firms listed in the US may tighten, with one bill in the US Congress proposing delisting Chinese firms that do not submit to substantial auditing requirements. JD is listed in the US on the Nasdaq.

    The company will start taking investor orders around this Thursday, with the listing set for June 18 to coincide with its annual shopping festival.

    Joint sponsors of JD’s Hong Kong listing include Bank of America, UBS Group and CLSA.

  • JD.com fosters local stalls and small stores in China

    JD.com fosters local stalls and small stores in China

    Chinese e-commerce giant JD is moving to stimulate small and medium enterprises nationally by providing supply chain and service support for the employment of more than 5 million people.

    The firm is accumulating around 50 billion goods as a part of its “Spark” economic support plan designed to benefit SMEs, stall owners, and shopkeepers.

    The plan is focused on three areas: ensuring supply, assisting operations, and promoting employment. The firm will also provide each small shop with US$14,000 in interest-free credit to make purchases.

    “JD has already comprehensively accumulated rich experience in supporting the ‘stall economy’ and the ‘small shop economy’,” said JD Retail CEO Lei Xu. “The impact of the epidemic will accelerate the digital transformation of the real economy, and stalls and small shops are no exception. JD has both the ability and the responsibility to use digitization to support and make the economy of small stalls and shops more dynamic, helping to further invigorate the overall economy and stabilize employment.”

    JD is now set to work with nearly 10,000 brand manufacturers and more than 4000 joint warehouses to provide offline retailers with access to low-cost, high-quality supplies. The firm will also help offline retailers to expand their online operations.

    In poor regions, JD will provide flexible employment, work-from-home, and farm-to-table opportunities including positions such as logistics order collection, warehouse management, inventory management, and packaging. It will also establish start-up projects and provide support in the fields of catering retail, regional logistics agencies, and freight transportation.

    Data collected by the company shows that, right before its 6.18 promotional event this year, the transaction volume of JD New Markets in Beijing, as well as Hubei and Anhui provinces increased more than fivefold. The number of orders placed on the JD Convenience Store Go mini program was more than 10 times the previous daily average.

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