Tag: China

  • Jack Ma Explains the key to Alibaba’s success

    Jack Ma Explains the key to Alibaba’s success

    Forbes Media has presented the Malcolm S Forbes Lifetime Achievement Award to Alibaba Group founder and partner Jack Ma, hailing his commitment to small businesses in addition to the impact that Alibaba has achieved since its launch 20 years ago.

    The annual award celebrates an individual who embodies and exemplifies the ideals of entrepreneurship championed by Forbes, the company said in a release.

    “Jack Ma not only created one of the most outstanding companies of the world but also a company that nourished the vibrant small-business community in China – and small businesses around the globe,” Forbes Media chairman and editor-in-chief Steve Forbes said. “He is indeed one of the most influential figures of our time.”

    Ma received the award at the 19th annual Forbes Global CEO Conference, held this year in Singapore, where he and Forbes talked for about an hour about Alibaba’s history, Ma’s thoughts on entrepreneurship and his philanthropy work. Forbes started by calling Ma “one of the greatest liberators in history, enabling people who wanted to … do commerce. You gave them the means to do it.”

    Ma explained how that came about: “We believed in the future and I believe the internet can empower people,” he said, speaking of Alibaba’s 17 other founders in 1999. “So, we do Alibaba because there are so many small businesses that don’t know when and how, where they can sell the products.”

    That led to the launch of B2B e-commerce platform Alibaba.com at first and later other sites, including Taobao, which has grown from a C2C marketplace to become China’s largest mobile-commerce destination. To enable payments on these platforms, Alibaba developed Alipay. The company also wanted to get products from sellerss to consumers quickly and efficiently, so Ma and his team turned their attention to logistics, eventually launching what is now Cainiao Smart Logistics Network. Alibaba also wanted to support small businesses in need of computing power, so Alibaba Cloud was born. And the company continues to build new businesses to address new demands as the market evolves.

    “So, it’s all about solving problems. I think this is what we did in the past 20 years,” Ma said. “We always think about what we can do to solve social problems instead of complaining. That’s the journey and … millions of people change their lives because [of our] efforts.”

    Ma expanded on the company’s mission to help small businesses, young people and women – those largely outside the traditional financial system – via Alipay, the largest mobile payments and lifestyle app in China. Traditional financial companies focus on the top economic levels of society, he said, not the bottom. But Alipay was always a bottom-up operation. While the wealthy elite wasn’t willing to test the technology when it was first made available, in 2004, many of China’s less wealthy consumers were.

    “They tried it, they loved it, they benefitted from it,” Ma said. “So, this is very, very inclusive.”

    “We feel that the financial system for the 21st century should be inclusive, should empower people,” he continued. All “people have the right to reach the money they need.”

    Alibaba has achieved tremendous success during its two decades, as it now serves 730 million annual active consumers in China and another 130 million overseas. Alipay parent Ant Financial, in which Alibaba holds a 33-per-cent stake, serves 900 annual active consumers in China and 1.2 billion worldwide, including active users of Alipay’s local e-wallet partners. The $456.4 billion Alibaba currently employs about 100,000 people globally, and its e-commerce platforms reach merchants and consumers in more than 200 countries and regions. This year, Alibaba will host its 11th 11.11 Global Shopping Festival, which has grown into the largest one-day shopping festival in the world.

    Ma said he would build on that success – and the money he’s made from Alibaba – to continue helping others. He has already worked through his namesake philanthropic organization, the Jack Ma Foundation, to help improve education and conservation efforts in China. But he has turned his attention to points outside of China as well. Most recently, Ma has focused his attention on supporting entrepreneurs in Africa. He has said that entrepreneurs are “the most important element to develop a society,” and therefore they will be central to Africa’s economic development in the decades ahead.

    “I have the money, I have the resources and I won’t go there, empower the entrepreneurs,” Ma told Forbes. “If we can be able to discover and help more Jack Mas, more Bill Gates or Warren Buffetts – more Steves – Africa will be different.”

    Next month, Ma will travel to Ghana to host the first Africa Netpreneur Prize competition. The $10 million initiative will award $1 million a year for the next 10 years to African entrepreneurs as a way to support the growth of the continent’s digital economy. Nearly 10,000 people from 50 of Africa’s 54 countries applied.

    The remaining 10 contestants – hailing from Egypt, Nigeria, Liberia, Rwanda and Cote D’Ivoire – will make their final pitches to Ma and a panel of judges during the Nov. 16 taping of “Africa’s Business Heroes,” a televised event scheduled to air Nov. 29 in countries across Africa.

  • Kipling releases a fresh collection with Chinese designer Angel Chen

    Kipling releases a fresh collection with Chinese designer Angel Chen

    Fashion brand Kipling has released a collaboration with contemporary Chinese designer Angel Chen.

    The embroidery designs constitute what the brand describes a fresh approach to some of Kipling’s classic bag silhouettes, presenting its Fall/Winter “Live. Light” collection to consumers.

    Angel Chen

    Chen has brought her East meets West aesthetic to the collection by borrowing the English phonemes “Do Re Mi” from the world of music and blending them with auspicious Chinese symbols. The result corresponds with the brand’s seasonal campaign of “Express Yourself with Music”.

    “Live. Light to me represents vitality, which is indispensable in life,” said Chinese designer Angel Chen. “I think it can bring hope and happiness. That is why I have chosen ‘Do Re Mi’ in bright and vivid colours for the bag’s pattern, drawing my inspiration from the music scale.”

    The collection comes in two distinct designs with different color combinations: a youthful pink-based design embroidered with crane and pine tree motifs and a denim-based design embroidered with a Chinese symbol in the form of a dragon.

  • Japan’s RMK aims for Chinese consumers with Tmall Global launch

    Japan’s RMK aims for Chinese consumers with Tmall Global launch

    Japanese cosmetics brand RMK has launched a flagship store on Chinese e-commerce platform Tmall Global.

    The move has been described as part of RMK’s broader focus to tap the lucrative Asia-Pacific beauty market and create a stable platform for beauty brands in China.

    Shagun Sachdeva, a consumer insights analyst at GlobalData, says RMK is already available in Japan, Taiwan, Hong Kong and South Korea.

    “The calculative move to tie up with Tmall Global has been made to indulge in omnichannel retailing with an aim to increase its presence in the high-value Chinese market and get access to a wider customer base,” he said.

    According to GlobalData, the Cosmetics and Toiletries market in China is growing at a steady pace and is almost double than that of in Japan last year.

    GlobalData’s 2018 fourth-quarter consumer survey revealed that 63 percent of Chinese consumers prefer online channels to buy beauty and grooming products.

    “The strategic decision to expand seems to be driven by rising popularity and growing demand of Japanese beauty products among Asia-Pacific consumers owing to perceived safety, better quality and multi-functionality,” said Sachdeva.

    “The brand has grabbed the opportunity of looking at the high intensity of J-beauty products being imported in China or bought by Chinese visitors in Japan. With the launch on Tmall Global, the company aims to target such customer base first and then include more products in its range soon.”

  • Citi Setting Up Wholly Owned Securities Unit in China

    Citi Setting Up Wholly Owned Securities Unit in China

    Citigroup, which earlier announced its decision to dissolve its investment-banking joint venture in China, is now setting up a wholly-owned securities business in the world’s second-largest economy.

    The New York-based bank may initially focus on brokerage and futures trading while expanding its custodian services in China, quoting sources familiar with the matter. This comes as China announced the removal of ownership caps for financial institutions.

    The people asked not to be identified because a final decision has yet to be made. It also plans to apply for a futures license as early as the first half of 2020.

    Earlier this year, Citigroup has agreed to sell its stake in its Citi Orient Securities joint venture to its Chinese partner, as it prepares to set up its own brokerage in the world’s second-largest capital market.

    In December, Citigroup Global Markets Asia informed Orient Securities that the bank intended to sell all of its shareholdings, the Chinese company said in an exchange filing. Orient said its board gave the green light for the acquisition of Citi’s stake, adding that the deal will be subject to approval from China’s securities regulator and state asset regulator.

  • Starbucks Launches Bar Mixato in Starbucks Reserve Roastery Shanghai

    Starbucks Launches Bar Mixato in Starbucks Reserve Roastery Shanghai

    Starbucks today announced the new addition of Bar Mixato to the Starbucks Reserve Roastery in Shanghai, further elevating the multi-sensory experience of China’s coffee wonderland. Starbucks unique interpretation of the modern café and bar experience, Bar Mixato brings together the craftsmanship of specialty coffee and the artistry of cocktail concoctions to offer a novel nighttime third-place experience that will enthrall coffee lovers and bar-goers alike. It features a full bar menu, which includes the global debut of 11 innovative coffee- and tea-based cocktails specially created and available only at the Shanghai Roastery.

    “The Roastery has been at the forefront of innovation since its opening two years ago, epitomizing Starbucks relentless efforts to create imaginative new experiences that exceed customers’ expectations,” said Belinda Wong, chairman and chief executive officer, Starbucks China. “The launch of Bar Mixato elevates the nighttime third-place experience with the exquisite fusion of coffee and cocktail art, to delight customers with unique Starbucks Experiences throughout the day. As Starbucks Innovation Lab in China, we will continue to leverage the Starbucks Reserve Roastery to pilot and gradually scale new products and offerings that our Chinese customers love.”

    Bar Mixato extends Starbucks passion for coffee to the theater of cocktail mixology, conjuring new creative expressions of coffee, while adding a novel dimension to cocktails to meet the discerning tastes and growing thirst for unique experiences among consumers in China. Customers at the Starbucks Reserve Roastery may now enjoy Starbucks ReserveTM Coffee expertly handcrafted by Starbucks Coffee Masters by day, and connect over coffee- and tea-inspired cocktails mixed with precision by Starbucks Mixologists by night. Altogether, Starbucks has launched seven Bar Mixatos at Starbucks Reserve stores across Shanghai, Beijing, Tianjin and Shenzhen since the concept was first introduced in China in May.

    Located on the second floor of the Starbucks Reserve Roastery, the bar was personally designed by Starbucks global design officer, Liz Muller. It is helmed by Timothee Becqueriaux, winner of the globally prestigious 2019 Chivas Bartender Competition (China region), and his team of more than 20 talented Mixologists, who are not only experts in cocktail mixing, but also coffee and tea aficionados. From the use of ingredients to mixing techniques, they have reinterpreted traditional cocktails to create drinks with unique taste and aesthetic profiles, providing an unprecedented sensory experience for customers.

    Headlining the comprehensive bar menu are 11 unique coffee- and tea-based cocktails specially created by Starbucks China in collaboration with leading bartenders in the industry. Classic cocktails, Italian aperitivo, wine, draft beer and mocktails are also available, as is a thoughtfully curated selection of complimentary food choices that customers can pair with their favorite cocktails. The menu will be refreshed quarterly based on the flavors of new Starbucks Reserve coffees.

    Since opening in December 2017, the Roastery has played a leading role in Starbucks retail innovation, incubating new offerings such as Modern Mixology, a new beverage category boasting natural fruit ingredients. With the addition of Bar Mixato, the Roastery will expand to serve as the hub for Starbucks cocktail innovation, before launching to other Bar Mixatos locations nationwide.

  • Wumart wins bidding war for Metro China

    Wumart wins bidding war for Metro China

    Chinese retail group Wumart has won a lengthy bidding process for the Metro China business.

    The German grocery and hypermarket retailer commenced a search for a buyer for the business in March, with various sources reporting an asking price of between US$1.5 billion and $2 billion. As many as eight bidders were in the running with a short list culled several times before non-binding bids were due in June.

    “This partnership includes the sale of Metro’s entire indirect participation in Metro China to a subsidiary of Wumei for an enterprise value of approximately US$2.1 billion,” Metro said in a statement.

    However, Metro will retain a 20-per-cent stake in the Metro China-Wumart joint venture. The deal is subject to regulatory sign-off.

    Metro China has 95 stores in the territory as well as real estate assets in several major cities, including Beijing and Shanghai.

  • BNP Paribas Expands Gold Market Activities in China

    BNP Paribas Expands Gold Market Activities in China

    The bank can now participate in listed gold contracts, gold leasing and other gold derivatives business, and provide more services to its domestic and international client base.

    BNP Paribas (China) has been granted membership of the main board of the Shanghai Gold Exchange, which will allow the bank to fully participate in the Chinese gold market by offering deeper liquidity and broader product scope, it announced in a press release on Tuesday.

    SGE was set up in by the People’s Bank of China in 2002 as a center for gold, silver and platinum trading, growing to become the second-largest gold exchange globally by volume by 2018. BNP Paribas (China) started bilateral gold trading on SGE’s international board in 2017, and now conducts spot, swaps and options trading.

    Through our participation on the mainboard, we hope to position China as a global center for gold trading, Mikko Russi, BNP Paribas head of FX, Local Markets & Commodity Derivatives for Asia Pacific, said in the statement.

  • PayPal to Enter Chinese Digital Payments Market

    PayPal to Enter Chinese Digital Payments Market

    With the acquisition of GoPay, PayPal will become the first foreign firm to enter China’s digital payments market.

    The People’s Bank of China has approved the acquisition of a 70-percent stake in Guofubao Information Technology Co. (GoPay) by Yinbaobao, a local subsidiary of payments platform PayPal, GoPay announced in a statement earlier this week.

    Foreign players have found it tough to break into China’s digital payment space to compete with local giants, though Beijing has promised to open up this market. With the acquisition, PayPal will be the first foreign firm to receive an online payments license in China, ahead of the likes of Visa and Mastercard, who have yet to get their licenses approved.

    We look forward to partnering with China’s financial institutions and technology platforms, providing a more comprehensive set of payment solutions to businesses and consumers, both in China and globally, PayPal CEO Dan Schulman said in a statement posted on its website, adding that the deal is expected to be finalized by the end of the year.

    GoPay, founded in 2011, is a joint venture between the China International Commerce Center (CIECC) and HNA Retailing Holding, a subsidiary of HNA Group.

  • Thai Cafe Ama​zon opens first China outlet

    Thai Cafe Ama​zon opens first China outlet

    Thai coffee chain Cafe Amazon has launched its first outlet in China.

    The new cafe has opened at a Sinopec-branded petrol station in the Guangxi provincial capital of Nanning.

    Cafe Amazon is owned by Thai petrol firm PTT Oil and Retail Business (OR), which is aiming to expand the chain globally. The Chinese operator is OR subsidiary PTT OR China (Shanghai), which will roll out the chain at other Sinopec petrol stations nationally.

    China is the 10th market in which the brand has launched.

  • Ingenico launches full suite of Chinese payment options for e-commerce players

    Ingenico launches full suite of Chinese payment options for e-commerce players

    Ingenico is one of the very first international payment service providers (PSP) to support all use cases for WeChat Pay, including the capability to integrate into WeChat Official Accounts and Mini-Programs. This is a crucial advantage that allows the 1.1 billion WeChat users to complete their purchase without leaving the WeChat environment.

    Additionally, Ingenico offers an upgraded Alipay integration to its customers, enabling these businesses to reach the vast majority of online consumers in China, while also allowing them to offer real-time payments, both on desktop and mobile devices. Furthermore, Ingenico supports UnionPay’s (UPI) SecurePay and ExpressPay solutions as part of a comprehensive payment solution designed to cater to a greater range of local payment preferences in China. Through Ingenico, merchants can offer Chinese Yuan (CNY) to consumers via these payment methods, which is critical for conversion and customer experience.

    The new China is a huge opportunity for western businesses. It is the world’s largest and most dynamic e-commerce market and a pioneering force in a digital and mobile culture. In total, it has an internet penetration rate of 57%, representing 25% of internet users worldwide. However, it is a more challenging market to operate in than many others, as the unique domestic e-commerce ecosystem often demands specific solutions tailored to local preferences.

    “Our long-time presence and activity in China means that we are perfectly positioned to partner with merchants wanting to access the truly local consumer market. Our expertise here, combined with this new set of payment capabilities, will allow international merchants to reach Chinese consumers that were previously difficult to access,” explains Gabriel de Montessus, SVP Global Online (Retail BU) for Ingenico Group. “Our merchants will be able to offer all the relevant local Chinese payment methods in local currency denomination as part of their digital experience, which will help increase conversion.”

  • Chinese tourists are embracing ‘themed travel’

    Chinese tourists are embracing ‘themed travel’

    Themed travel is a fast-growing trend among Chinese tourists – with more than two in three from mainland cities prepared to try it as a hobby.

    Themed travel is a relatively new tourism category identified by markers, including concepts such as health and wellness, wedding photography and self-drive tours.

    “Having new experiences is important when it comes to traveling,” explains Saskia Zhao, travel and leisure analyst at Mintel China Reports. “In light of this, companies in China’s travel industry are moving beyond simply offering traditional travel products and are introducing themed travel to the market.

    “There are two ways in which themed travel is commonly defined in China: by travel method, for example, self-drive tours, or travel itinerary, for example, photography or wedding theme. Our research shows that hobbies and in-depth travel experiences are what’s motivating Chinese consumers to try themed travel,” she said.

    “To appeal to these consumers, customization and offering experiences of superior quality are key. The focus of innovation in themed travel can be expanded from new routes and destinations to selling hobby-based experiences like food and outdoor activity tours. This will also allow consumers to meet with like-minded individuals, seeing how socialization is another key driver for the themed travel market.”

    Research by Mintel suggests a desire for new experiences seems to be what’s driving interest in the category.

    Three in five urban Chinese respondents (of 3000 surveyed online aged 20-49) say they are motivated to try themed travel because it would make a suitable hobby (66 percent) and is an in-depth travel experience (64 percent). Opportunities for socializing is another driver with 45 percent of respondents saying the desire to meet people with similar interests is a reason why they would like to try themed travel.

    Popularity of self-drive tours

    While still a relatively new concept, self-drive tours are picking up in China. According to Mintel research, 52 percent of urban Chinese respondents have taken the more common self-organized tour (eg excluding RVs and self-drive tours) for their personal leisure travels in the last 12 months*, while 49 percent say that they have taken self-drive tours. Self-drive tours are especially popular among the post-80s generation with 57 percent of respondents having tried this way of themed traveling. This is followed by 48 percent of post-90s and 41 percent of post-70s consumers.

    Health-and-wellness-themed travel

    Finally, Mintel research reveals an opportunity for travel suppliers with health and wellness-themed travel. As many as 74 percents of Chinese respondents cited enjoying a slower-paced lifestyle as the most important reason to try health and wellness-themed travel; while 67 percent associate health and wellness-themed travel with a nice environment and being beneficial to physical health, respectively.

    For health and wellness-themed travel, the top activities consumers are willing to pay more for include hot springs (67 percent) and body-care services, such as massages or a spa, (63 percent).

    “Healthy lifestyles are trending in China, opening up an opportunity for travel suppliers to explore health and wellness-themed travel,” said Zhao.

    “Consumers say that enjoying a slower-paced lifestyle is important when it comes to health and wellness-themed travel – likely because they long to relieve the stresses of daily life.

    “Companies in the health-and-wellness travel space can also motivate consumers with claims such as improving physical health and living in pure and healthy environments that are free from pollution. When premiumising their health and wellness-themed travel offerings, companies should look at capitalizing on natural elements such as hot springs and forest ‘oxygen zones’, as well as self-indulgent experiences like spas,” Zhao concluded.

  • Alibaba Group eyes 1 billion users within the next five years

    Alibaba Group eyes 1 billion users within the next five years

    Alibaba Group says it aims to serve more than 1 billion consumers and exceed RMB10 trillion gross merchandise volume by 2024.

    Unveiling the Chinese tech giant’s five-year plan to the investment community, Alibaba Group executive chairman and CEO Daniel Zhang said the company remains “true to the mission it laid out over 20 years ago” of making it easy to do business anywhere. He said empowering merchants with data technology and cloud intelligence is essential to fulfilling this mission in the digital era.

    “Today, we are creating and fulfilling new consumption needs with a view to focus on growing our digital consumer population as a whole. We can unlock tremendous synergies between our various consumer-facing businesses to convert and harvest incremental customers across the Alibaba digital economy,” said Zhang.

    In the year June 30, Alibaba Group had 730 million annual active consumers in its China consumer business, which includes its China retail marketplaces, digital media and entertainment, as well as local consumer services.

    Together with 130 million annual active consumers in its cross-border and global retail-commerce business, Alibaba has about 860 million annual active consumers globally.

    Its payments division Alipay, meanwhile, had about 900 million annual active users in China. Zhang said that while 85 per cent of Chinese people living in developed areas have tapped into Alibaba’s China retail marketplaces, the penetration rate is only 40 percent in less-developed areas, offering a tremendous opportunity to reach underserved consumers there and improve their lives.

    However, while absolute consumer numbers continue to rise, Zhang said it is just as important to view consumer needs holistically and serve them across all platforms in the Alibaba economy.

    Alibaba’s five-year goals for its China consumer business put it on the path of meeting its longer-term global ambitions to serve 2 billion customers, support 10 million profitable SMEs and help create 100 million jobs by 2036.

    Underpinning the company’s projected growth is the Alibaba Business Operating System, a full suite of digital tools that marries Alibaba’s commerce ecosystem and its cloud intelligence technology to empower brands and companies to reach more customers, better understand their needs and deepen engagement with them.

    “We have always viewed technology through the lens of real business applications. We don’t view technology in isolation,” said Zhang. “We believe in the marriage of commerce and technology. This has always been Alibaba’s unique value proposition.”

  • Alibaba Acquires One-Third of Ant Financial

    Alibaba Acquires One-Third of Ant Financial

    Alibaba Group has bought a 33 percent equity interest in Ant Financial, pulling the financial tech giant closer to mainland China.

    Following the acquisition, Ant will no longer be required to pay 37.5 percent of its pre-tax profits to the e-commerce behemoth.

    The profit transferal agreement was brokered in 2011 following a dispute Alibaba and Yahoo which consequently led the former’s co-founder Jack Ma to shift Ant Financial – formerly known as Alipay – into a separate entity he controlled. Concerns about conducting business in China with a foreign-owned entity was the cited for the move.

    Every year we generate new stuff and we acquire new stuff. We never stop,» Alibaba chairman Daniel Zhang said at its annual investor conference in Hangzhou. «Payment and financial services are very important pillars in Alibaba’s system.

    The latest deal places the value of Alibaba’s global portfolio at $83 billion with investments into diverse high tech industries including artificial intelligence and augmented reality, according to group CFO Maggie Wu.

    Ant, valued at $150 billion, offers a full range of financial services and products including micro-lending, insurance, credit scoring and China’s largest money market fund. It is also in the midst of foreign acquisitions in India and Thailand. Its flagship digital payments platform currently boasts 900 million users.

  • JD expands into social etail

    JD expands into social etail

    Chinese internet services giant JD has launched a social e-commerce platform named Jingxi, providing discounts on team purchases to target users in small to medium-sized cities in China.

    The business model, which invites buyers to share deals with friends to score significant discounts, emulates those of rivals Pinduoduo and Juhuansuan.

    “We’re going to diversify and enrich our WeChat ecosystem and provide a new model to attract lower-tier cities, especially female users and low-income users,” said JD Retail CEO Lei Xu about the new Jingxi platform.

    “We’ll continue to enhance our user experiences and also gain more potential customers from third to six-tier cities,” added JD.com chairman and CEO Richard Liu.

  • Coach, Kate Spade parent strikes strategic alliance with Tmall China

    Coach, Kate Spade parent strikes strategic alliance with Tmall China

    US-based luxury retail company Tapestry has entered into a strategic alliance with Alibaba’s Tmall platform to boost the sale of its Coach, Kate Spade, and Stuart Weitzman products online in China.

    The partnership, announced last week, will see Tapestry unveil flagship stores for its suite of luxury brands on Tmall later this month, where it will offer exclusive products and personalized content and services to Chinese shoppers.

    The partnership reflects a step forward in Tapestry’s ChinaNext strategy, which aims to grow the company’s China business and gather digital learnings that can be leveraged in other markets.

    Currently, less than 20 percent of Tapestry’s revenue comes from China. The company is looking to increase that figure by tapping into Tmall’s active user base of over 750 million shoppers.

    “Tapestry is committed to the Chinese market. We have a leadership position in China and all of our brands have a tremendous opportunity for further growth,” Jide Zeitlin, Tapestry CEO and chairman, said in a statement.

    “Given Tapestry’s focus on customer experience, creating innovative strategic partnerships with leaders such as Tmall helps us to connect our unique lifestyle brands with the important fashion and digitally savvy Chinese consumer,” he said.

    Beyond the new digital flagships, Tapestry is also working with Alibaba on intellectual property rights protection. Coach is a member of the Alibaba Anti-Counterfeiting Alliance and leverages the e-commerce company’s tools, technology and cooperation initiatives to protect its brand.