Retail News CRM

Tag: China

  • Tse Sui Luen store network expands Again

    Tse Sui Luen store network expands Again

    Hong Kong-headquartered jeweller Tse Sui Luen has reported a 9.6 per cent increase in profit for the full year, despite a marginal 1.7 per cent drop in group turnover.

    Profit attributable to shareholders was HK$54.2 million (US$6.9 million) on sales of $4.065 billion ($521 million).

    The Tse Sui Luen store network grew by 56 during the year, to reach 473.

    Chairman Annie Yau said sales rose in the first half of the year, reflecting the continuing upturn of Hong Kong’s retail sector. “However, conversely, towards the end of the year, the group started to feel the trickle-down effects of the trade dispute between the US and China which has adversely affected the market sentiment and consumer confidence and resulted in the depreciation in the Renminbi – all leading to a slowdown in the global economy and in local retail sales performance.”

    She said the fluctuation of the Renminbi value inevitably brought adverse impact on the second half. “The group is responding to these challenges with unique signature products and reinforcement of our market positioning as ‘Wedding Expert’, all aimed to offset the negative effects…”

    During the year, the group has demonstrated its vision to optimise its retail network across Asia and broaden its international presence through new store openings in Hong Kong, Mainland China and Malaysia. Going forward, we will continue to seize the opportunities for developing existing and new business channels and expanding our retail network in all the regions where we operate, while being cautious and keeping a close watch on any and all changes as and when they occur in the market,” she says.

    Same-store sales growth in Hong Kong and Macau was 2.8 per cent, and as a result of gold product promotions and an expanded product assortment, the average amount per invoice rose by 5.6 per cent.

    Tse Sui Luen took advantage of a general downward trend in store rental rates to improve rental cost effectiveness. It expanded the size of its stores at Times Square in Causeway Bay and Plaza Hollywood in Diamond Hill and opened a new store in MCP Central (Phase II) in Tseung Kwan O.

    Self-operated Tse Sui Luen store growth continued to be a key driver of the group’s Mainland China business, accounting for 36.6 per cent of its turnover during the year. Twelve new self-operated stores and 43 new franchised stores were opened on the mainland, expanding the network from 380 to 435.

    “We will keep on expanding our retail network in Mainland China with the intention of opening an additional 100 new stores over the coming two years,” said Yau.

    In Malaysia, turnover was stable the jeweller opened one new store, at Genting, taking its network there to five.

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  • Tsui Wah Singapore to open second restaurant

    Tsui Wah Singapore to open second restaurant

    Tsui Wah Singapore will open a second outlet at Robinsons The Heeren, on Orchard Road.

    No official opening date has been set as yet, but the menu is expected to include signature items such as Swiss Sauce Chicken Wings, Crispy Bun with Sweet Condensed Milk, Kagoshima Style Pork Cartilage with Tossed Instant Noodles, and Milk Tea. Western food such as club sandwiches and French toast will also be available.

    The Hong Kong tea chain arrived in Singapore last June with an outlet at Clarke Quay.

    It is known for its mix of Cantonese cuisine and Western cafe-style fare.

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  • Japanese tax-free store operator Laox Expanding in China

    Japanese tax-free store operator Laox Expanding in China

    Japanese tax-free store operator Laox plans to raise US$94 million to expand its activities in China and boost its e-commerce footprint.

    The company will issue shares to Granda Galaxy (a wholly-owned subsidiary of Suning Appliance Group), and Global Worker (a wholly-owned subsidiary of Chuben Sangyo).

    Once the funds are in the bank, Laox will further increase its investment in the Chinese market and expand its e-commerce business worldwide. Since entering the Chinese market in 2011, Laox has introduced high-quality Japanese goods and services to China through Suning’s online and offline platforms and its Tmall flagship store. In the future, Laox aims to become one of the largest suppliers of “Made-in-Japan” goods to better serve more Chinese local consumers, and plans to promote more quality products and consumption experience to other countries and regions through the Belt and Road Initiative.

    Suning believes Laox will further strengthen its close cooperation with the company in overseas purchase, commodity procurement, marketing and logistics services, thus increasing the Suning’s international influence and attracting more customers who are looking for better-quality goods.

    By the end of last year, Laox had 38 retail stores in the Japanese market, which had attracted nearly 2.5 million shop visitors in the year and achieved annual sales of about $1.12 billion.

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  • City Chain parent records another loss

    City Chain parent records another loss

    Same-store sales by watch retailer City Chain improved last year – but parent Stelux Holdings still recorded a loss of HK$34.6 million (US$4.4 million).

    That deficit would have been a lot higher but for the one-off gain of $111.8 million ($15.2 million) from the sale of the company’s optical business in June last year. The company says without the gain, and various other one-off adjustments, the company would have lost $117.5 million ($15 million). However, both figures were lower than the previous year’s loss of $123.7 million. On the positive side, inventory fell 16.6 per cent to $559.8 million ($71.7 million) as of March 31.

    Group turnover for the last financial year was down 3.4 per cent to $1.458 billion ($186.8 million).

    The City Chain Group operates around 220 stores in Hong Kong, Macau, Mainland China, Singapore, Thailand and Malaysia together with on-line stores under the City Chain and Solvil et

    Titus brands. It also has exclusive rights to the Seiko and Grand Seiko watch brands in Hong Kong, Singapore and Malaysia.

    Stelux International sold its Optical 88, Egg and Thong Sia Optical businesses last year for $400 million ($51.2 million). The purchaser was an entity controlled by Stelux CEO and chairman Joseph CC Wong, also known as Chumphol Kanjanapas.

    Wong said the company achieved same-store sales growth and profit in the first half of the financial year thanks to a refresh of the City Chain branding and house brand portfolio, store closures and cost reductions. However this was undermined in the second half as the trade dispute between China and the US intensified, Renminbi remained weak, tourist and domestic spending in regions where the company operates slowed down and consumer sentiment took a dive.

    For the full year, City Chain’s turnover fell 5 per cent to $1.167 billion ($149.5 million) as its store network reduced by 13 per cent.

    Turnover at City Chain’s Greater China business fell by 6.5 per cent, with a 19 per cent reduction in store numbers. Pre-tax loss there grew from $53 million ($6.8 million) last year to $98.9 million ($12.7 million) this year.

    “Despite the challenging operating environments in the second half, year-on-year same-store sales in Hong Kong and Macau remained stable,” said Wong. Operating costs fell by 9.8 per cent.

    Despite a generally weaker market environment, City Chain’s operations in Southeast Asia reported an increase in sales per shop of 8.9 per cent, with turnover remaining relatively stable, despite a 5.4 per cent reduction in the store network. However currency depreciation against a strong Hong Kong dollar say pre-tax earnings down from $4.2 million ($538,000) last year to just $800,000 ($102,000) this year. Excluding exchange losses the result was $3.4 million .

    Wholesale division turnover (including Seiko) grew 3.5 per cent to $291.2 million ($37.3 million) and together with improved operational efficiencies contributed to a profit of $40.1 million, a substantial improvement on the previous year’s loss of $4.6 million.

    Wong says that while uncertainties surround the completion of a trade deal between China and the US, retail sentiment is likely to remain subdued for the remainder of the 2020 year.

    “Refreshment of stores will continue and capital expenditures will be prudently managed.

    However, as part of the group’s long-term strategy to improve its competitiveness to adapt to changes in the consumer landscape, the group has prioritised investment in infrastructure and brand development to enhance customer interaction through omni channels so as to improve synergies between the online and offline businesses of the City Chain Group.”

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  • Octopus’ retail management solutions now implemented in Asus stores across China

    Octopus’ retail management solutions now implemented in Asus stores across China

    Octopus Retail Management (Octopus), the retail technology provider used by leading businesses to make retail smart and personal, today announced that its cutting-edge point-of-sale (POS) suite of solutions has been successfully implemented in Asus locations across China.

    Octopus’ solutions have been rolled out for Asus stores across 16 cities in China — including Beijing, Shanghai, Guangzhou, Shenzhen and Hangzhou, among others — creating a connected infrastructure and eliminating the complexity of managing its network of stores. Octopus’ smart retail technology gives Asus real-time visibility over the cloud to monitor sales, run promotions and manage inventory more efficiently.

    Importantly, Octopus’ customizable solutions have been integrated with the Alibaba iStore system, including Customer Relationship Management (CRM) integration and payment integration.  This seamless integration allows Asus to drive omnichannel sales and enhance the customer experience both in store and online.

    “The retail space is transforming rapidly. We wanted a retail software solution that would integrate with Alibaba CRM and allow seamless promotions and inventory management across our network of stores in China. Partnering with Octopus will enable us to achieve that and deliver an enhanced shopping experience for our customers,” said Wu Rui, Project Director at Asus.

    “We are proud to be selected by Asus to deliver our software solutions to drive their retail business forward,” said Ong Whee Shiong, Managing Director of Octopus. “More than ever, customers expect retailers to provide a personalized and seamless shopping experience across all channels. Octopus’ smart retail technology will enable Asus to manage their store network across China to enhance their business productivity and drive store experiences that exceed their customers’ expectations.”

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  • Orders treble just 13 days into JD’s 6.18 shopping festival

    Orders treble just 13 days into JD’s 6.18 shopping festival

    Thirteen days into the 20-day 6.18 shopping festival, JD has already achieved a three times the turnover of last year’s event, and double the orders.

    More than 90 per cent of Hong Kong purchases have been conducted through mobile devices, and geographically, consumers from New Territories accounted for nearly 40 per cent of sales.

    The top five categories in sales and volume so far (not in order) are computers, smartphones, household electronics, digital appliances and groceries. JD singled out smartphones and household electronics as the biggest-moving categories compared with last year.

    Electronics attracted the greatest number of Hong Kong consumers with orders showing quadruple growth. Besides smartphones, products like electric fans, vacuum cleaners, air purifiers and dehumidifiers are proving popular.

    Food and beverage is another hot category, tripling in order size, with turnover up 50 per cent. This includes groceries such as instant hotpots, snacks, dried nuts and biscuits.

    Despite the high volumes, JD says the sales and growth rate for the first 13 days were “in line with expectations”.

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  • Telegram CEO blames China for cyber attack

    Telegram CEO blames China for cyber attack

    One of the top ten most popular messaging apps in the world is Telegram, available for iOS and Android. Not as widely used in the U.S., the app offers end-to-end encryption and group chats for as many as 200,000 people. The app also can share videos, even those with large file sizes, and documents of any type. A tweet from Telegram CEO Pavel Durov blames China for a cyberattack that hit the Telegram app and affected its subscribers earlier this week.

    Durov says that a large Distributed Denial of Service (DDoS) attack originated from internet addresses inside China. These DDoS attacks sent huge amounts of requests at one time to Telegram, clogging up the app and making it unusable for many subscribers. The executive called it a “powerful,” targeted attack that was related to the protests taking place in Hong Kong. Huge throngs of protestors are complaining about a new law that will allow people in the city to be extradited to China. Durov said that in the past, similarly sized DDoS attacks coincided with protests in Hong Kong,

    Because of the encryption used to hide the content of messages, Telegram is popular among protestors in any country, allowing them to coordinate plans with up to 200,000 people out of the eyeshot of authorities. A DDoS attack on Telegram would prevent the protestors in Hong Kong from making arrangements to gather at a certain place and time.

    The Chinese government denied that it was responsible for the attack. Chinese foreign ministry spokesman Geng Shuang said at a briefing yesterday that he was unaware of the incident.

  • Ecmoho Pharmacie plans US$100 million IPO

    Ecmoho Pharmacie plans US$100 million IPO

    Chinese online pharmacy Ecmoho is seeking to list on the New York Stock Exchange in order to raise US$100 million for expansion.

    According to sources cited by Bloomberg, the IPO may take place as early as this year.

    The company has declined comment on the matter and sources say the exact timing and the target to be raised may yet change.

    Based in Shanghai, Ecmoho distributes supplements and pharmaceuticals online. As well as selling direct it has stores on JD and Alibaba’s platforms.

    Ecmoho launched in 2002 as an online marketing service, transitioning into e-commerce in 2006, before sharpening its focus on the health sector in 2011. It sells products from domestic manufacturers and global brands.

    Besides Mainland China and Hong Kong, the company operates in the US, Europe and Asia Pacific.

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  • E-commerce giants report record results for 6.18 shopping festival

    E-commerce giants report record results for 6.18 shopping festival

    China’s e-commerce giants JD and Alibaba turned in record-breaking results for the 6.18 shopping festival on June 18.

    Total sales transaction volume during JD’s 6.18 trading reached a new high this year of US$29.2 billion. Key drivers leading to the breakthrough results were new products as well as Chinese consumers’ continued interest in and pursuit of higher quality.

    Alibaba Group’s Taobao and Tmall shattered multiple records during the Mid-Year Shopping Festival, stating a rising demand from consumers in less-developed cities for quality products. More than 200,000 brands took part, using campaigns and tools provided by Alibaba’s core platforms to help more than 110 brands each generate gross merchandise volume in excess of RMB100 million ($14.5 million).

    New products were a strong focus of JD’s retail strategy overall this year. JD has launched an exclusive channel within its platform to socialise and promote these products as well as bring them to market, making them easier for consumers to find, and helping brands to strategically reach new consumers. Consumers from lower-tier cities are also “trading up” showing greater interest in brands traditionally more coveted by consumers in higher-tier cities.

    Transaction volume growth was twice as high in lower-tier cities than the overall growth on JD. The percentage of new users from lower-tier cities was also much higher than the percentage of new users overall. Two campaigns involved participation from more than 100 million users. One was an innovative “birthday red envelope” campaign, which encouraged and rewarded consumers for sharing on social platforms. Another campaign engaged users to share, vote for and win shared rewards for their cities.

    The firm’s recent C2M initiative employs big data and consumer insights, providing insights to brands to adjust their manufacturing and marketing approaches with the goal of providing consumers with products they want before they even know they want them. Transaction volume of new products and C2M products during 6.18 increased 289 per cent compared with the same period last year. One out of every three monitors sold during this year’s 6.18 campaign were C2M products. HP saw a 100 per cent increase in sales of its Zhan 66 laptop, a C2M product, during 6.18.

    Several new brands also launched on JD during 6.18. Most recently, Italian designer brand Prada, as well as Miu Miu and Car Shoe – two sister brands under the Prada Group – launched authorised flagship stores on JD. Farfetch also launched a flagship store on JD during the period, enabling JD consumers to access more than 3000 brands through Farfetch’s network of more than 1000 brand and boutique partners.

    JD also worked with the world’s top hotel brands to empower subscribers of its premium membership program, JD Plus, with exclusive privileges at 15,000 high-end hotels around the world, marking the first time JD Plus benefits can be enjoyed outside of China. During this 6.18, shopping festival JD sold more than 2.8 million JD Plus memberships.

    Technology continues to be key to improving the consumer experience and exceeding expectations during the sales festival. 91 per cent of orders coming from JD fulfillment centers were delivered same-or next-day. During this year’s 6.18, JD’s smart customer service robot fielded more than 32 million inquiries, of which it solved 90 per cent of those independently, freeing up human customer service for more complicated inquiries.

    Flash sales crash records

    Alibaba’s flash sales channel, Juhuasuan, which aids brands in attracting new customers via discounts, added over 300 million new consumers. During the festival. More than 180 products topped RMB10 million ($1.45 million) in sales, and 4700 products achieved sales of more than RMB1 million ($145,000). This was a record-breaking number for brand participation in Juhuasuan.

    The firm’s Taobao live-streaming platform helped generate GMV of more than RMB13 billion ($1.88 billion).

    “The results of the ‘6.18 Mid-Year Shopping Festival’ are encouraging,” said president of Taobao and Tmall Jiang Fan. It has proven to be a celebration that can match the enthusiasm and scale of the ‘11.11 Global Shopping Festival.’ More than 100 brands achieved a new sales record that surpassed the result from last year’s 11.11.

    “We are very pleased to see that our strategy to help brands penetrate the less-developed markets has paid off. Customers in the emerging cities are very receptive to innovative products and promotion campaigns such as programs on the Juhuasuan platform. The number of customers and GMV from third- to fifth-tier cities both hit 100 per cent growth. We believe this group of customers will continue to grow into a strong and sustainable force for brands who are looking at further developing the Chinese market,” he added.

    With an increase in discretionary income, consumers in China’s less-developed areas are quickly becoming a crucial driver of China’s solid consumption. These consumers were a main engine powering this year’s 6.18 Shopping Festival. According to Tmall, 48 per cent of the newly launched products on the platform during the event were purchased by customers outside first- and second-tier cities.

    Demands and preferences from lower-tier cities consumer were diverse, ranging from high-end electric products from Apple to imported fruit, such as durian from Malaysia, and daily necessities, including socks and toothbrushes.

    Tmall’s Luxury Pavilion sales more than doubled from last year, boosted by customers in emerging cities and shoppers born after 1995. Premier brands hit better-than-expected results. Sales of Versace jumped 20 times compared with last year.

    This year, Taobao’s Daily Deals, a channel which allows consumers to order customised products straight from the manufacturers, generated more than 420 million orders. With Alibaba’s big data and IoT technology, the Daily Deals service has effectively digitised the manufacturing industry by initiating a direct manufacturer-to-consumer model.

    Sales generated from consumers in third- and forth-tiers cities on cross-border trade platform

    Tmall Global increased by 153 per cent from a year before. The top five countries on Tmall Global were Japan, the US, South Korea, Australia and Germany.

  • Toys“R”Us Asia brings smiles to kids and families in China through their record-breaking Children’s Day Toy Festival

    Toys“R”Us Asia brings smiles to kids and families in China through their record-breaking Children’s Day Toy Festival

    Celebrating Children’s Day with families and kids across China, through a vast offering of experiential offsites, special promotions and exclusive toy ranges, Toys”R”Us Asia announces a record-breaking Y-o-Y sales growth of over 25% in China, on the first weekend of June.

    The strong business results for Toys”R”Us Asia in China on June 1 can be attributed to millions of happy in-store customers, as measured through a record-breaking number of transactions. Kids and families got to enjoy a significant increase in exclusive product ranges offered through Toys”R”Us China’s vast network of over 180 permanent stores and over 100 experiential offsites, set up specifically to celebrate Children’s Day.

    Nicholas Green, Managing Director of Toys“R”Us China, said, “Toys“R”Us is the ultimate destination for kids of every age. Our top priority is to support families with fun and interactive shopping experiences so they can access the very best products for entertainment and learning. The recent record-breaking business results for Toys“R”Us China over the weekend of International Children’s Day is a strong sign that customer demand in this market is on the rise and is a testament to the company’s success and growth, both in the offline and eCommerce space. We plan to open over 50 new stores in China in 2019 alone, and we are confident that our offering to customers will only continue to strengthen.”

    Andre Javes, President and CEO of Toys“R”Us Asia, commented, “In the coming year, Toys“R”Us Asia is planning to open over 65 stores across Greater China, Japan and South East Asia, to meet the growing demand for imaginative and educational play. We will be rolling out even more immersive experiences and inspiring content to showcase the infinite possibilities of toys – offering up the most relevant toy choices for every development stage of childhood.”

    At the end of the previous fiscal year, Toys”R”Us Asia posted strong business results, as well as growth in their STAR CARD loyalty program and several investments in new stores, store renovations, eCommerce and IT infrastructure.

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  • Kerry Logistics Continues Winning Streak at 2019 AFLAS Awards withBest 3PL and Best Logistics Service Provider

    Kerry Logistics Continues Winning Streak at 2019 AFLAS Awards withBest 3PL and Best Logistics Service Provider

    Kerry Logistics Network Limited (‘Kerry Logistics’; Stock Code 0636.HK) proudly continued its winning streak at the 2019 Asian Freight, Logistics and Supply Chain Awards (‘AFLAS’) by receiving the titles of Best 3PL for the fourth year running and the Best Logistics Service Provider – Air Freight for the fourth time. The awards presentation ceremony was held on 17 June 2019 in Hong Kong.

    Robert Berger, Executive Director – Fashion & Lifestyle of Kerry Logistics (Hong Kong), said, “We are thrilled to win the titles again and deeply grateful to the AFLAS organisers and readers of Asia Cargo News for their votes of confidence. Kerry Logistics has been steadily expanding its global network coverage and broadening its range of international freight and logistics solutions, working hard to help its customers to respond to the changes in the international logistics landscape. Leveraging our established network in Asia to take advantage of the booming intra-Asia trade, we are set to continue our business growth in Asia. The AFLAS accolades prove the industry’s trust in us and that, in times of trouble, we are the logistics provider for our customers to call on.”

    Aimed to commend top industry players for demonstrating leadership and consistency in service quality, innovation, customer-relationship management, and reliability, the AFLAS is presented annually by Asia Cargo News, the shipping and supply chain industry news platform for the Asia-Pacific region. The recipients of the awards were determined through the nominations and voting by over 10,000 Asia Cargo News readers, representing the consensus of the regional logistics industry.

    Kerry Logistics has been named the Best 3PL by AFLAS since 2016, and has previously won the Best Logistics Service Provider – Air Freight title in 2015, 2017, and 2018. In the ranking published by Transport Topics and Armstrong & Associates, Inc. for 2019, Kerry Logistics places sixteenth among the Top 50 Airfreight Forwarders and seventh among the Top 50 Ocean Freight Forwarders.

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  • Alibaba management shakeup not Ended yet

    Alibaba management shakeup not Ended yet

    The most significant Alibaba management shakeup since founder Jack Ma revealed he would step aside next September 10 sees high-profile CFO Maggie Wu take on a new role.

    Wu will take over responsibility for strategic investments by the group, charged with finding new growth streams for the technology and retail giant as its growth in the e-commerce sector begins to slow. She will oversee a team focused on investment, taking over that responsibility from executive vice-chairman Joe Tsai.

    The Alibaba management changes were revealed via the company’s official WeChat account by CEO Daniel Zhang.

    “To guarantee innovation, invest in our future, Alibaba is undertaking an organisational upgrade,” he said.

    Wu has been Alibaba’s CFO for six years.

    In other changes, Alibaba said its supermarket chain Freshippo – also known as Hema and now numbering 160 stores – will become a standalone business. DingTalk, the group’s enterprise software business unit, will be merged into the Alibaba Cloud business unit.

    These changes come ahead of a planned IPO in Hong Kong later this year which could raise as much as US$20 billion in fresh capital for expansion via investment.

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  • Antipodes and Alibaba form strategic partnership

    Antipodes and Alibaba form strategic partnership

    New Zealand skincare brand Antipodes has announced a strategic partnership with Chinese e-commerce giant Alibaba.

    Announced at the Alibaba E-commerce Expo in Auckland last week, the partnership will see the two companies work together to bring a targeted range of skincare products to Chinese consumers via Alibaba’s Tmall Global e-commerce platform.

    Antipodes has been working with Alibaba to access the China market for the past five years, and it recently co-developed a product with the company, which has debuted exclusively on Tmall.

    “This is such a special product,” Elizabeth Barbalich, the founder and CEO of Antipodes, said about the Kiwi Seed Gold Luminous Eye Cream.

    “[I]t is made using 23K gold, a formulation that is soft and dissolvable. This means it is absorbed straight into the skin to calm, soothe and illuminate, instead of sitting on the skin’s surface as a 24K gold product would.”

    Antipodes has developed a devoted following both at home and abroad for its high-performance, organic skincare products. And Chinese consumers have responded well to its “green” reputation.

    “We have worked with Antipodes for more than five years and over this time the brand has developed a number of ‘hero products’ popular with Chinese consumers,” Maggie Zhou, Alibaba Group’s managing director of Australia and New Zealand, said.

    “With New Zealand’s pure and green image, Kiwi products continue to grow in popularity with Chinese consumers and on Alibaba’s marketplaces.”

    Tmall is a premium online retailer for the China market. The company has been seeking the best local brands to partner with via its Australia and New Zealand operations recently.

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  • Operation Octopus cracks down on counterfeit dolls in claw machines

    Operation Octopus cracks down on counterfeit dolls in claw machines

    Hong Kong Customs has conducted a territory-wide operation to combat counterfeit dolls in claw machines.

    Codenamed “Octopus”, the operation proceeded from June 5–13 and resulted in the seizure of about 2700 suspected counterfeit dolls and other relevant items with an estimated market value of about HK$300,000 (US$38,322).

    Customs had earlier received information alleging that the presence of counterfeit dolls in claw-machines shops was widespread in the market. Officers later conducted patrols in different districts.

    After further investigation with the assistance of a trademark owner, Customs officers raided six claw-machine shops in Chai Wan, Lam Tin, Mong Kok, Tuen Mun and Tin Shui Wai as well as a storage facility in San Po Kong. Some 2700 suspected counterfeit dolls and other suspected counterfeit goods, 15 claw machines and five token changing machines were seized.

    During the operation, three men and three women were arrested, including three shop owners and three staff members, aged between 26 and 50.

    The investigation is ongoing.

    Divisional commander (IP general investigation) Peggy Tam told press that Customs would continue to step up inspection and enforcement to fight against the use of counterfeit goods for the purpose of trade. She reminded consumers to check with the trademark owners or their authorised agents if the authenticity of a product is in doubt.

    She also reminded traders to be cautious and prudent in merchandising since the possession of counterfeit goods for any purpose of trade is a serious crime and offenders are liable to criminal sanctions.

    Under the Trade Descriptions Ordinance, any person who sells or possesses for the purpose of trade any goods with a forged trademark commits an offence. The maximum penalty upon conviction is a fine of HK$500,000 ($63,870) and imprisonment for five years.

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  • L’Occitane profit rose after Restructuring

    L’Occitane profit rose after Restructuring

    Hong Kong-listed beauty-products retailer L’Occitane is reaping the benefits of a restructure with profit up 21.8 percent last financial year to €117.6 million.

    And chairman Reinold Geiger says even better results are in the pipeline. “The group now operates as a multi-brand entity, where unique brand identities are celebrated and common values shared — respecting nature, creating authentic and genuine experiences, promoting entrepreneurship, and bringing a human approach to beauty,” he said in a statement.

    “The group encourages its brands to stay agile and autonomous, yet synergies are also being identified and capitalized. With the material improvements delivered by the core L’Occitane en Provence brand, combined with the largely accretive consolidation of Elemis, the group expects to see enhanced profitability in 2020 and beyond.”

    Group net sales were €1.427 billion for the year to March 31, up 8.7 percent at constant exchange rates. Gross margin remained high at 83.2 percent and operating profit rose by 6.9 percent.

    L’Occitane’s Hong Kong net sales were €137 million, an increase of 9.9 percent year on year, or 8.6 percent at constant exchange rates. However, same-store sales fell 2.6 percent.

    “Macroeconomic uncertainties continued to erode consumption sentiment, reflected in a marked downturn in the Hong Kong retail market after the first quarter of {last year}, notably in the average ticket value,” the company said in its earnings review. “Meanwhile, the increase in mainland tourist traffic brought by new infrastructure did not uplift Hong Kong retail sales.”

    Sales in China reached €178.1 million, an increase of 11.9 percent, or 12.1 percent on a constant-exchange-rate basis.

    “Sales momentum in China was dynamic throughout the whole year,” the company said. “Sell-out sales remained strong even though trading with seven fewer stores than last year, posting a growth of 9.6 per cent at constant exchange rates, and with same-store sales growth at 6.9 percent. The marketplace channel continued to drive growth, with impressive performances recorded during key festivals such as Singles’ Day, Chinese New Year and Women’s Day. Sell-in sales also posted encouraging results, with the growth of more than 30 percent, thanks to the launch of JD and dynamic B2B sales.”

    In Japan, net sales rose 1.5 percent to €222.1 million, however in the local currency, the growth was just 0.1 percent. “The flattish performance was due to a sluggish retail market. Nonetheless, retail sales of L’Occitane en Provence grew at a low single-digit rate as compared to last year, thanks to the new stores opened, the large-scale “Balloon Journey” marketing event and successful face care campaigns during the year.”

    Taiwan net sales of €38.2 million represented a decline of 3.2 percent at reported rates, or 2.7 percent at constant exchange rates.

    “The Taiwan retail market remained competitive,” the company said. “The decrease in sell-out was largely explained by the negative 2.7 percent same-store sales growth, together with the typhoon hits and poor weather during the summer season. Web sell-out channel, however, recorded double-digit growth, thanks to the revamped own e-commerce platform as well as the development of the marketplace.”

    Most other markets remained static for L’Occitane, with the exception of Brazil, where sales fell by 4 per cent, and the US, where they soared 35 per cent.

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