Retail News CRM

Tag: China

  • JD E-Space reopens Chongqing store with strict precautions

    JD E-Space reopens Chongqing store with strict precautions

    Chinese e-commerce giant JD has reopened its E-Space business in Chongqing.

    The 50,000sqm mega experience store, which retails small household appliances, computers, digital products, and mobile phones, has been shuttered since late January due to the current coronavirus epidemic.

    E-Space allows customers to purchase items within the store on the JD app with a single click to be delivered to their home address – although many shoppers elect to carry smaller items home themselves. With many students in the territory now studying from home, computers, printers, and projectors are currently among the store’s fastest-selling items.

    “After we re-opened, many customers came into the store to shop,” said JD E-Space GM operations Xuefei Li. “We didn’t do any advertising of the re-opening besides posts on our own WeChat and Weibo accounts, showing that consumers are following the store closely.”

    Employees at the store have been required to quarantine themselves for 14 days before returning to work, where they must wear masks at all times and undergo daily temperature checks. Customers are subject to the same restrictions within the store.

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  • JD tops the China’s online appliances market

    JD tops the China’s online appliances market

    E-commerce giant JD has taken the lead in China’s online appliances market.

    The finding was part of a new report on the industry within China prepared by the China Electronic and Information Industry Development Research Institute, which showed JD’s market share stands at 22.39 percent in a sector that raked in RMB891 billion (US$128 billion) last year with a 41.17-per-cent penetration of online sales.

    The lead online product in the category by an overwhelming margin was the air conditioning unit, bringing in RMB 216 billion ($31 billion) in total sales and taking up nearly a quarter of all household appliances traded via the internet. Other popular goods include TVs, fridges, washing machines, kitchen appliances, and household appliances.

    While the recent coronavirus outbreak has had a markedly negative impact on online sales as well as offline trading, normal market conditions are expected to return once the crisis passes.

    “When the epidemic subsides, consumer demand will return,” said JD Retail CEO Lei Xu.

  • Taiwan’s Chun Fun How opens new outlet in Singapore

    Taiwan’s Chun Fun How opens new outlet in Singapore

    Taiwanese bubble-tea chain Chun Fun How is preparing to launch a flagship store at the Esplanade in Singapore this month.

    The floral-themed store will offer takeaway drinks only in its new outlet – mostly premium fruit tea blends in attractively designed “Instagrammable” cups – with a heavy emphasis on sanitization as the coronavirus outbreak continues. The brand is expected to be offering new drinks and menu items exclusive to the Singapore market.

    The brand is known for its low profile in Taiwan, with the majority of its stores targeting students and local business people rather than tourists.

    Chu Fun How has 14 outlets within Taiwan, a franchise outlet in both Hong Kong and Canada, and plans to expand in Indonesia as well as Singapore.

  • Carrefour China achieves its first quarterly profit in seven years

    Carrefour China achieves its first quarterly profit in seven years

    Carrefour China has achieved its first quarterly profit in seven years according to the Tian Rui, CEO of Suning Group, which bought the former French hypermarket group last September.

    During the past five months, the Carrefour China business has improved its operating efficiency through the digital transformation of its stores and the accelerated integration with the Suning ecosystem.

    Tian Rui says post-acquisition, Carrefour China’s management team focused on consumer needs and strengthening marketing, operations and membership management. The business was integrated into the Suning FMCG’s supply chain, strengthening the range and supply of merchandise.

    And the company’s stores and product offering were integrated into the Suning Convenience Store app on February 6. Since then, the average daily order volume of Carrefour Flash Delivery has increased by 202 per cent month on month. On February 21, the average daily order volume was up 329 percent month on month.

    This digital transformation has seen the 209-strong store network deliver goods to customers living within 3km of a store within one hour, and for those within 10km of a store within half a day.

    “Carrefour China is the core business of Suning FMCG matrix. In 2020, we will accelerate store upgrades, supply chain construction, and other ecological integration with Suning to recreate the glory of Carrefour like seven years ago,” said Tian Rui.

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  • Chinese bubble-tea chain Naixue Tea eyes IPO

    Chinese bubble-tea chain Naixue Tea eyes IPO

    Chinese bubble tea chain Naixue Tea – also known as Nayuki – is eyeing a listing in the US.

    The move could raise around US$400 million in capital, although many important details of the potential offering remain in flux as private discussions continue between the firm and its advisors.

    Naixue, which sells fresh fruit tea, cold-brew tea and cheese-tea blends as well as bakery items, operates more than 230 locations within China. The firm was launched in 2010 by Shenzhen Pindao Restaurant Management.

    Sources familiar with the transaction asked not to be identified, as the potential listing is still being discussed in private. Any plans may be impacted by the current coronavirus outbreak, which is still having a major effect on business within the country.

  • Tesco to stop Chinese investment

    Tesco to stop Chinese investment

    British multinational groceries and general merchandise retailer Tesco has sold its shares in a Chinese joint venture, ending its operations in the country.

    According to Retail Gazette, the firm’s 20-per-cent shareholding in the Gain Land business has now been sold to a unit of its regional partner, Chinese state-owned conglomerate China Resources Holdings (CRH). The shares were sold for £275 million (US$356.6 million).

    The share transfer, set to take effect on Friday, completes Tesco’s six-year exit strategy from China, which began when the firm merged its 131 branded stores in the country with CRH’s Vanguard outlets. CRH operates close to 3000 Vanguard locations.

    Following the retreat, Tesco will focus on its core business, using the funds from the share sale for general business purposes. The firm has also announced a review of its operations in Malaysia and Thailand.

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  • Chinese Startup Fundraising Plunges

    Chinese Startup Fundraising Plunges

    The ongoing coronavirus outbreak has caused capital flows into mainland China’s startups to plunge 60 percent year-to-date.

    Year-to-date, Chinese startup fundraising registered $1.79 billion from a 6-year low of 168 deals – a major plunge from last year’s $4.18 billion and 440 deals in the same period, according to alternatives data provider Preqin. Venture capitalists have only closed six funds thus far, raising $300 million.

    The capital slowdown will likely drag the broader outlook for private equity in the region. Within Asia Pacific, China accounted for around half of all private equity investments and 80 percent of the nearly 3,000 country-specific deals Preqin tracked since 2016.

    A partner at major Chinese venture capital firm SB China Capital, Zhao Chenxi, warned startups to brace for the potential of receiving no venture capital for all of 2020 in his social media account. Wu Shichun, founding partner of Plum Ventures, called the current period a test of the «hell model» for small and medium-sized enterprises that continue to bleed costs with no income.

    Despite assurances from Beijing and regulators about providing financial buffers, data signals a bleaker reality. A report by Tsinghua University and Peking University said that 85 percent of the 1,506 SMEs surveyed in early February expect to run out of cash within three months with one-third of respondents expecting a more than 50 percent cut to annual revenue.

    More mature startups have been the exception to the rule thus far as fundraising activities were relatively less affected. This is especially the case for businesses with strong digital capabilities to navigate around an outbreak that has created a market of 50 million homebound consumers in Hubei province.

    According to a China TH Capital survey, over 81 percent of the 40 late-stage private equity and venture capitalists saw no impact with the remainder seeking to cut back on investment plans for the year ahead.

  • PepsiCo plans to buy Chinese snack Be & Cheery

    PepsiCo plans to buy Chinese snack Be & Cheery

    PepsiCo is poised to purchase Chinese online snack vendor Be & Cheery owned by Haoxiangni Health Food Co.

    PepsiCo had proposed the Be & Cheery acquisition before the coronavirus outbreak began in China.

    Valued at US$705 million, the acquisition will help PepsiCo strengthen its position in Mainland China as the company suffers slowing business growth globally.

    “Be & Cheery adds direct-to-consumer capability, positioning us to capitalize on continued growth in e-commerce, and a local brand that is able to stretch across a broad portfolio of products, through both online and offline channels,” said Ram Krishnan, CEO of PepsiCo Greater China.

    “We also expect to leverage Be & Cheery’s innovation and consumer insights capabilities to drive innovation in other key PepsiCo growth markets.”

    The acquisition still needs approval from Haoxiangni’s shareholders and other customary conditions, according to the company.

    Founded in 2003, Be & Cheery is one of the China’s largest online snack companies. Its products include nuts, dried fruits, meat snacks, baked goods and confectionery.

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  • China Jo Jo Drugstores turns to profit in December quarter

    China Jo Jo Drugstores turns to profit in December quarter

    Online and offline pharmaceutical and healthcare retailer and wholesaler China Jo-Jo Drugstores boosted revenue by 7.9 percent in the December quarter

    “We delivered outstanding financial results for the third quarter of 2020, with revenue recording $33.36 million,” said chairman and CEO Lei Liu.

    “Benefiting from the growth in retail drugstores and online pharmacy businesses as well as our strong competitive position in the industry, all of our core businesses performed in line with our expectations.”

    Liu said China Jo Jo was preparing for the coronavirus outbreak by trying to optimize its inventory and ensure it had effective distribution channels to meet the strong domestic demand of pharmaceutical and other healthcare products and services.

    China Jo Jo’s gross profit increased by 2.1 percent to $7.28 million for the quarter, but gross margin decreased by 1.3 percentage points to 21.8 percent.

    Net income for the US-listed company was $460,000, compared to a loss of $2.21 million during the same period a year earlier.

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  • Apple China reopens stores slowly

    Apple China reopens stores slowly

    Apple China has reopened 10 more stores in China, as the business begins to return to normal despite the ongoing coronavirus outbreak.

    The 10 reopened outlets, which are located in Shanghai, Chengdu, Dalian, Guangzhou and Qingdao Vientiane City, will operate with limited business hours, according to stores’ websites.

    It is not yet clear whether or not the 10 Apple China stores will apply the same measures to prevent coronavirus transmission as five stores in Beijing which reopened last week with protection, including temperature checks of customers upon entry

    Meanwhile, Apple warned of global iPhone supply shortages earlier this week, and said it would be unlikely to meet quarterly revenue targets while its Chinese factories remained shut.

    “Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated,” the company said in a statement. “As a result, we do not expect to meet the revenue guidance we provided for the March quarter.”

    Although the iPhone manufacturing partners outside Hubei have resumed production, “they are ramping up more slowly than we had anticipated”.

    Meanwhile, archrival – Samsung – has launched its latest smartphone in Vietnam, saying its factories in the country are running at full capacity during the coronavirus epidemic.

    Nguyen Tri Thong, corporate marketing director at local smartphone unit Samsung Vina Electronics, told the Nikkei Asian Review that Samsung’s new products have been available for delivery as the company has a clear production schedule.

    “The outbreak of the coronavirus did create challenges to many businesses globally. However, we have been mobilizing our backup plans in order to maintain our position,” Thong said. “We don’t see any serious issues in our supply chain at the moment,” he said without giving further details.

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  • Beijing Auto Show Delayed Due To Coronavirus

    Beijing Auto Show Delayed Due To Coronavirus

    Organizers of Beijing auto show, which is scheduled to be held in late-April, said on Monday the event will be delayed event due to the coronavirus outbreak.

    Across mainland China, officials said the total number of coronavirus cases rose by 2,048 to 70,548, with 1,770 deaths.

  • Tesla Seeks Approval To Build Longer Range Model 3 Cars In China

    Tesla Seeks Approval To Build Longer Range Model 3 Cars In China

    Tesla Inc is seeking approval from Chinese regulators to offer a new China-made Model 3 variant, a government document shows.

    The variant would have a longer driving range, a source familiar with the matter said.

    Tesla shares overvalued: strategist

    National Securities’ Art Hogan says don’t buy Tesla at current levels because the stock has “gotten ahead of itself.

    Like the current China-made Model 3, which has a standard driving range of more than 400 kilometers, it would be a rear-wheel-drive vehicle, the source said, who was not authorized to talk about the matter and declined to be identified.

    Tesla, which started delivering cars in December from its $2 billion Shanghai factory, also sells longer-range imported Model 3s with an all-wheel-drive in China.

    The electric vehicle maker restarted production in Shanghai on Monday after the government ended an extended holiday that had been put in place due to the new coronavirus outbreak.

  • Global brands continue to shutter stores across China as coronavirus spreads

    Global brands continue to shutter stores across China as coronavirus spreads

    Widespread temporary store closures continue across China as the coronavirus continues to spread throughout the country.

    Officially, China’s New Year holiday – extended by the government for a week to help reduce the spread of the virus – ended yesterday, but office staff was encouraged to work from home.

    Tech giant Apple said on Friday it hoped to reopen corporate offices and contact centers later this week, but the closure of its physical stores would continue indefinitely.

    As at 10am ICT on Tuesday, February 11, 43,108 cases of coronavirus had been confirmed, and 1018 fatalities, almost all of those in Mainland China. However, in an encouraging sign, 4048 people had been confirmed as recovered. The mortality rate has edged up slightly to 2.3 percent with most deaths due to underlying respiratory conditions or pneumonia.

    Brands across fashion, technology and almost every other non-essential retail category continued to shutter stores on the mainland.

    VF Corporation, which owns Timberland, Vans, The North Face and Dickies, says 60 percent of its outlets in Mainland China are closed and those still open have seen “significant declines in retail traffic.”

    Muji and Uniqlo have shut about half of their store networks.

    Japanese makeup company Shiseido estimates its China sales were down 55 percent over Lunar New Year, traditionally a peak selling period. Sales to foreign tourists through Japanese retail outlets were down by 40 percent. The company has launched the Relay of Love Project, “in the hope that everyone affected may return to health and safety as soon as possible”.

    In addition to 1 million CNY (US$143,000) already donated to the Charity Federation of Wuhan, Shiseido will donate a further 10 million CNY ($1.43 million) to the Shanghai Charity Foundation and 1 percent of sales from Asian markets will be reserved for other assistance.

    UK luxury-fashion label Burberry has closed 24 of its 64 stores in China and says those still trading – under reduced hours – have experienced “significant footfall declines”.

    The parent of Kate Spade, Coach and Stuart Weitzman, Tapestry, says it has closed the majority of its stores in China.

    Capri Holdings says that about 150 of its 250 stores trading under the Michael Kors, Versace and Jimmy Choo banners are closed.

  • Yum China launches contactless delivery services

    Yum China launches contactless delivery services

    Yum China, which operates Chinese KFC and Pizza Hut networks, has launched a contactless food-delivery service.

    The move is a response to concerns about transmission of coronavirus between customers and delivery staff – but will also give confidence to consumers who are increasingly buying from food-delivery services to avoid public contact in supermarkets, shopping centers, and restaurants.

    “The health and wellbeing of our employees and customers is our top priority,” said the firm in a written statement to Business Insider, “and the innovative new services will help reduce the risk of person-to-person transmission of the coronavirus and protect our employees and customers”.

    Customers who elect for the contactless service will be instructed to remain at least 10 feet from the masked delivery personnel, who will remove the boxed food from its thermal pouch and place it on an agreed pick-up surface only after visually confirming the receiving party.

    Delivery staff is expected to disinfect their hands before and after every transaction.

    Food may also be picked up in-store in hygienically sealed packages.

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  • Paris starts to suffer as Chinese tourists disappear

    Paris starts to suffer as Chinese tourists disappear

    As the hordes of mainland Chinese tourists who used to descend on the prime shopping districts of Paris have dried up within just a fortnight, luxury brands are beginning to plan staff layoffs and other strategies to reduce costs.

    With the rapid spread of the coronavirus across Mainland China, outbound tour groups have been suspended and airlines all over the world have curtailed or canceled all services to the area. In 2018, about 2.2 million Chinese people visited France. But this week, stores they would normally frequent around Paris were almost empty.

    In just one example of the coronavirus’ impact on the city is the manager of cosmetics store Paris Look, Chomphunut Supraditapron, who told Thomson Reuters she fears for her job since the steady daily stream of Chinese shoppers stopped arriving in her store.

    “We need Chinese customers because it is Chinese customers who buy the most,” she said.

    The world-famous Avenue des Champs-Elysees is home to flagship stores for a variety of luxury European brands, including a giant Louis Vuitton Maison and one of the world’s largest Sephora stores.

    LVMH, which owns Louis Vuitton and Sephora, among other luxury retail brands, has seen its stock price fall 9 percent since January 17 – entirely due to fears over the coronavirus’s impact on retail spending. The company’s Paris flagship reportedly attracts 37 million visitors every year.

    Footfall in Paris Maisons has plummeted since the Chinese stopped coming, although, until recently, some of those brands said they are noticing a compensatory upturn in Mainland China sales. That outcome is now in doubt as many retailers have been forced to close more than half of their Chinese stores as authorities try to restrict the spread of the virus.

    The timing of the virus’ outbreak – on the eve of the busiest trading period of the year for any retailer targeting Chinese – Lunar New Year – has exacerbated the problem.

    Regional Tourism Board data shows Chinese shoppers spend an average of €1024 (US$1136) on a five-night stay in Paris – significantly more than the average of tourists from other countries which is around €640

    “The crisis is deepening and we are witnessing some kind of hysteria,” Didier Kling, the head of the Paris chamber of commerce told Thomson Reuters.

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