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Tag: China

  • Google to ban Huawei’s access to Android

    Google to ban Huawei’s access to Android

    Huawei’s consumer business has been dealt a potentially devastating blow to its future prospects after US president Donald Trump formally added the vendor to a list of companies that American companies cannot trade with if they don’t obtain a license.

    Huawei was added to the entity list of banned companies covered by the national emergency Trump declared last week, which gave him the power to regulate commerce to ostensibly protect national security.

    In the wake of Huawei being added to the list, Google has barred Huawei from receiving some updates to Android, announcing that it is “complying with the order and reviewing the implications”.

    US Chipmakers including Intel, Qualcomm, and Broadcom also reportedly told employees that they will cease supplying Huawei until further notice.

    But the US Commerce Department has subsequently issued a three-month exemption allowing Huawei to continue to purchase and access American products in order to maintain existing networks and provide software updates to existing devices.

    The exemption will not Huawei to purchase US components for new products. On the bright side for Huawei, the Commerce Department has announced it may extend the exemption further than the initial 90 days.

    In various communications including one sent to Globe Telecom in the Philippines, Huawei has pledged to continue providing security updates and after-sales services for its devices.

    Huawei founder and CEO Ren Zhengfei has meanwhile taken a bullish stance over the impact of the ban, telling Japanese media that the company’s growth “may slow, but only slightly.”

    The vendor had been anticipating the ban for some time, and has been investing in producing homegrown chips and further developing its own operating system in preparation.

    Ren has rejected the prospect of building manufacturing facilities in the US – even if the government asks Huawei to.

     

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  • Wolverhampton Wolves to open Shanghai Football Store

    Wolverhampton Wolves to open Shanghai Football Store

    English Premier League football team Wolverhampton Wanderers is opening a retail store in Shanghai.

    The July 15 opening, timed to coincide with the Premier League Asia Trophy in which the club is participating, will see the Wolves Megastore become one of the first anchor tenants of the Bund Financial Centre Mall. The location is situated on the Shanghai Bund near the headquarters of the club’s Chinese owner Fosun.

    “We see China as a key market for us, both in terms of fan acquisition and also developing the commercial aspirations of the club,” said Wolves MD Laurie Dalrymple, “and timing the store opening for when the first team and staff are in Shanghai was a natural fit.”

    The store will stock Wolves-inspired fashion lines unique to the Chinese market along with replica products.

    A series of Wolves pop-up stores will also be opening in Nanjing, Hangzhou and Chengdu.

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  • 10 Corso Como Leaving Shanghai

    10 Corso Como Leaving Shanghai

    Italian fashion concept store 10 Corso Como is withdrawing from China.

    The firm’s Shanghai retail outlet, which has been open since 2013, will be shuttered late this month in the absence of interest in a license and lease renewal from its local partner Trendy Group.

    The Milanese brand launched its early version of the concept store format at the beginning of the 90s, leading to global popularity and continuing global expansion – its New York location opened just late last year.

    Trendy Group is a late 90s fashion conglomerate that operates more than 3000 retail locations in almost 300 cities worldwide, and holds brands such as Ochirly, Five Plus, Coven Garden, Trendiano and Miss Sixty.

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  • China driving global cellular IoT adoption

    China driving global cellular IoT adoption

    An “exceptional adoption” in China has lifted the global number of cellular IoT subscribers by 70% to reach 1.2 billion in 2018, says a report released by Berg Insight.

    The research firm predicts that there will be 9 billion IoT devices connected to cellular networks worldwide by 2023.

    China, which accounted for 63% of the global installed base in 2018, is expected to continue to be the key driver for IoT adoption, as the Chinese government is actively driving adoption as a tool for achieving domestic and economic policy goals.

    “China is deploying cellular IoT technology at a monumental scale”, said Tobias Ryberg, principal analyst and author of the report.

    According to data from the Chinese mobile operators, the installed base in the country increased by 124% year-on-year to reach 767 million at the end of 2018.

    China has overtaken Europe and North America in penetration rate with 54.7 IoT connections per 100 inhabitants, Ryberg said.

    He said the role of the government is the main explanation for why China is ahead of the rest of the world in the adoption of IoT.

    “The most distinctive characteristic of the Chinese IoT market is however the way that the government is systematically using new technology to implement its vision for urban life in the 21st century,” Ryberg said.

    “At the same time the private sector also implements IoT technology to improve efficiency and drive innovation.”

    China has witnessed widespread adoption of connected cars, fleet management, smart metering, asset monitoring and as well as new consumer services like bike sharing.

    The report also analyses the IoT business KPIs released by mobile operators in different parts of the world and found significant regional differences.

    While China has the world’s highest IoT penetration rate, Europe seems is doing better job in terms of monetizing the IoT business.

    According to the report, the monthly ARPU for cellular IoT connectivity services in China was only €0.22 ($0.25), compared to € 0.70 in Europe.

    Global revenues from cellular IoT connectivity services increased by 19% in 2018 to reach €6.7 billion. The ten largest players had a combined revenue share of around 80%.

  • China Mobile is world’s most valuable telco brand

    China Mobile is world’s most valuable telco brand

    China Mobile is the most valuable telecoms brand in Asia-Pacific, and the third most valuable in the world, according to Brand Finance’s latest Telecoms 300 brand value report.

    China Mobile’s brand value has increased 4.6% in 2019 to $53.22 billion, cementing its position behind AT&T ($87 billion) and Verizon ($71.15 billion) on the top 20 leaderboards.

    Other Asia-Pacific operators in the top 20 include Japan’s NTT Group (5th with a brand value of $41.67 billion), China Telecom (9th, $20.63 billion), Japan’s SoftBank (10th, $19.29 billion) and au (11th, $16.62 billion), Australia’s Telstra (14th, $10.5 billion), and China Unicom (16th, $10.23 billion).

    But with the exception of China Mobile and au, whose position on the leaderboard remained unchanged, all the Asia-Pacific operators in the list fell either one or two places.

    Further down the list, Vietnam’s Viettel had a strong performance, with its brand value increasing by 36% to $4.3 billion, while Ooredoo increased to 41st on the top 50 rankings with a 12% increase in brand value to $3.78 billion.

    The report also ranked telecoms brands by relative strength based on metrics including marketing investment, stakeholder equity, and business performance.

    By these criteria, Thailand’s AIS was named the world’s strongest telecoms brand, overtaking China Mobile. Malaysia’s Digi was ranked as the third largest brand, while relative newcomer Reliance Jio Infocomm from India was named fifth. Telkom Indonesia (8th) and Singtel (9th) also made the top 10.

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  • BoConcept Asia continues Expansion

    BoConcept Asia continues Expansion

    Furniture and homewares retailer BoConcept has opened new stores in three Asian countries in recent months as it continues to expand its footprint in the region.

    The new stores are in Kyoto, Japan, Zhengzhou, China; and Ho Chi Minh City, Vietnam.

    BoConcept already has about 300 stores in more than 65 countries and is seeking to more than double its network within the next few years.

    The Kyoto store, which opened in March, is the brand’s 16th store in Japan and its 71st in Asia.

    The Zhengzhou store, in Henan Province, marks its 24th in China and the Vietnamese stores it’s sixth in the market. Both opened last month.

    The store is located in the suburb of Thao Dien, a popular area for expats.

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  • ZTE opens first cybersecurity lab in China

    ZTE opens first cybersecurity lab in China

    ZTE has launched the first in a series of planned dedicated cybersecurity labs aimed at reassuring customers of the security of its solutions, and developing end-to-end security products and services.

    The new lab in Nanjing, China will help ZTE provide customers with end-to-end security products and services.

    It also aims to help ZTE increase transparency and enhance trust with all third parties, including customers and global regulators, in light of the national security concerns that are prompting several countries to ban the use of equipment from Chinese vendors in 5G rollouts.

    The lab will provide security assessment and audit services such as source code review on ZTE products including 4G and 5G solutions.

    It will also offer security design audit, procedural document review, black box testing and penetration testing services, and facilitate research and development collaborations with other industry stakeholders and academia.

    Moving forward, the company plans to collaborate with major security organizations to jointly conduct security assessment, certification, training and consulting.

    Following the establishment of the Nanjing lab, ZTE plans to also launch cybersecurity labs in Italy and Belgium respectively in the near future as it builds out a global network.

    “The security lab is an open and cooperative platform for the industry,”  ZTE CSO Zhong Hong said during a speech at the opening of the new lab.

    “ZTE plans to gradually achieve the cybersecurity goals through three steps: first, meeting the requirements of cybersecurity laws, regulations and industry standards as well as certification schemes; second, conducting an open dialogue to enhance transparency and establishing cooperation with customers as well as regulatory agencies; and third, sustaining the open cooperation mechanism to contribute to cybersecurity standardization.”

  • Starbucks China opens Signing Coffee Store in Guangdong

    Starbucks China opens Signing Coffee Store in Guangdong

    Starbucks China has opened its first Signing Store, staffed entirely by deaf or hearing-impaired people.

    The store is in Guangzhou, in Guangdong Province which is home to about 4 percent of China’s deaf population. It is Starbucks’ third Signing Store, following outlets in Washington DC and Malaysia.

    Sign language symbols are printed on umbrellas in front of the store, and there are indicators throughout the store. Deaf baristas will wear aprons with the word “Starbucks” embroidered in sign language. The store is equipped with a customized ordering system. Customers and partners will be able to communicate using notepads and two-way digital displays. For customers new to sign language, there will be a dedicated area for customers to write down their orders on an electronic board and wireless vibrating pagers will notify customers when their orders are ready.

    The cafe also features exclusive artwork and unique merchandise designed by deaf artists.

    The initiative aims to offer employment and career-advancement opportunities for the deaf and hard-of-hearing community as well as “a welcoming hub for those passionate about improving accessibility and experiences for all”. It is located near the Guangdong Disabled Association and Guangdong Deaf People Association.

    “Starbucks is committed to creating equal opportunities for everyone, as well as a unique third-place experience that addresses a wide range of community needs,” said Belinda Wong, CEO of Starbucks China. “The new Signing Store is an example of how we are building inclusive environments and careers for our partners.”

    Store staff, who have been recruited from across China, are fluent in Chinese sign language.

    To create an inclusive environment and encourage customers to learn more about the deaf community, the store will also offer sign-language lessons and coffee workshops in sign language.

    “The Guangdong Deaf People Association is proud to partner with Starbucks to provide training and opportunities for the deaf and hard of hearing community,” said Yitao Fan, vice chairman, China’s Deaf People Association and president of Guangdong Deaf People Association. “Thanks to Starbucks, deaf partners are empowered to develop their careers in a vibrant and supportive environment, while the store provides a strong platform to drive societal awareness around deaf culture and the needs of the community.”

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  • Alibaba Acquires 104 million monthly Active Users

    Alibaba Acquires 104 million monthly Active Users

    Alibaba Group added 104 million monthly active users to its Chinese online retail marketplaces during the year to March 31.

    That stellar growth, driven by successful user-acquisition programs such as referrals through the Alipay app, took the total to 721 million. At the end of last year, the figure was 654 million, while quarter-on-quarter growth was 22 million.

    A standout feature of the growth is that Alibaba is cutting through into lower-tier, less developed cities which accounted for 70 percent of user growth last quarter.

    The figures were included in the company’s annual results, which, as reported earlier, included revenue growth of 51 percent during the year to March 31 to US$56.2 billion and net income up 31 percent to $13.1 billion.

    Chinese marketplaces recorded total gross merchandise volume (GMV) of $853 billion last year, up 19 percent on last year, which keeps the company on track to achieve its US$1 trillion total GMV target by the end of 2020.

    The company said its Taobao platform continues to grow fast. This year, a new interface was launched aimed at improving the user experience through content innovation and intelligent personalized recommendations.

    “It delivers a customized shopping experience by segmenting users based on behavior data and providing them with more recommendations to enhance product and content discovery,” the company said in a statement. “The new interface also includes Taobao’s innovative content, such as curated posts, short-form videos, and live-broadcast events. These initiatives drove strong growth in user engagement, purchase conversion, and annual active consumers.”

    Meanwhile, Alibaba’s mainstay Tmall is gaining wallet share and growing faster than the sector average, the company said.

    The growth of physical goods GMV, excluding unpaid orders, accelerated to 33 percent year-on-year in the quarter to March 31, compared to 29 percent in the previous quarter.

    “This robust growth was driven primarily by a strong performance of fast-moving consumer goods (FMCG), apparel, electronics, and home furnishing categories during the March quarter.”

    Its premium Luxury Pavilion channel boosted its brand lineup to more than 100 luxury brands, all of which have also opened Tmall flagship stores

  • Parkson Retail to open store above Chinese railway station

    Parkson Retail to open store above Chinese railway station

    Parkson Retail Group is preparing to occupy a complex above Nanjing Railway Station in Chinese Jiangxi.

    The group, a Hong Kong-listed firm controlled by Malaysian Parkson Holdings Bhd, won its US$6.1 million bid for the tenancy of buildings above the Bayi Guan Station of the Nanchang Rail Transit Line 1 in the city.

    The 12-year tenancy will allow a 42,903sqm retail space for the firm, although no formal agreement on the tenancy has been signed as of yet.

    A statement from the firm read: “The tenancy, if materialised, may constitute a discloseable transaction for PRGL,” given its alignment with the firm’s development strategy for the province.

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  • Restaurant Brands International eyes massive China expansion

    Restaurant Brands International eyes massive China expansion

    Restaurant Brands International, parent of the Burger King, Tim Hortons and Popeyes Louisiana Kitchen brands, is eyeing significant expansion in China despite current trade tensions.

    The firm is aiming to surpass 40,000 locations in the territory within 10 years, making the firm one of the world’s largest restaurant chains.

    “Our view is that we want to be there, and we will be there for the long term,” said company CEO Jose Cil. “It’s an amazing consumption market, growing tremendously.”

    The firm is making its intentions known in an atmosphere of a deteriorating trade relationship between China and the US. Before tensions heightened last week, China was already on track to experience its worst GDP growth in 29 years.

    Restaurant Brands is aiming to launch 1500 Tim Hortons locations within China within the next decade as the brand’s growth is slowing in its home Canadian market. There are currently just four Tim Hortons in the territory, compared to more than 1000 Burger King restaurants.

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  • Bern’s Intersport partners with Suning in China

    Bern’s Intersport partners with Suning in China

    Bern retailer network Intersport has entered into a franchise agreement with major Chinese omnichannel retailer Suning.

    The move gives Intersport a more significant presence in the huge Chinese sports market both in the offline and online arenas. It enables Suning to launch Intersport stores in specified provinces and municipalities in China, distributing Intersport products within the territory.

    “Intersport’s global expansion is progressing,” said Intersport International CEO Steve Evers. “We are proud to announce our partnership with Suning, the leading Chinese retailer, to boost our sports retailing business in this rapidly growing market. This alliance of two strong partners with complementary businesses and competencies will form the basis for long-term success in the Chinese sports retail market.”

    “Football, fitness, and a penchant for a healthy lifestyle are increasingly popular in China,” said Suning VP Gary Gong. “For this reason, Suning took the strategic decision to extend its retail business into the sports equipment market.”

    Suning has 12,871 stores in more than 600 cities in China. Its e-commerce platform claims more than 407 million registered users.

  • Alibaba not affected by the Trade War

    Alibaba not affected by the Trade War

    Alibaba executive chairman Joe Tsai told analysts the company’s position as “China’s number-one platform for overseas brands” puts it on the right side of the trade war between the US and China.

    While discussing the group’s recent full-year results, which saw Alibaba grow revenue 51 per cent during the year to March 31, 2019, to US$56.2 billion (RMB376.8 billion) and net income 31 per cent to $13.1 billion (RMB80.2 billion), Tsai said he wanted to address the “elephant in the room”.

    “First, the reduction of the US trade deficit. China’s commitment to purchase more American products means China will over the next several years become a net importing country,” Tsai said.

    “We are the platform of choice for global producers of products and brands selling into China because we have the reach and deep insights on over 650 million active Chinese consumers on our platform. The scale and effectiveness of our access to Chinese consumers is simply unrivaled.”

    Alibaba’s active customers grew to 654 million over the year to March 31- an increase of 104 million year on year.

    Tsai said the ongoing trade negotiations also create an opportunity for other markets to do more foreign business within China, satisfying growing demand from the Chinese public as the country’s economy shifts from an “export economy to a domestic consumption economy”.

    “As we look at the evolution of the Chinese economy, Alibaba is on the right side of all of the issues,” Tsai said.

    Alibaba was recently ranked as the world’s most valuable retail brand outside of the US by research firm Kantar earlier this week, which valued the brand at US$131.2 billion, up 48 per cent on last year.

    Partly, this was due to the group’s New Retail strategy, which this year saw Alibaba partner with Starbucks to enable on-demand coffee delivery across 35 cities throughout China.

    “If you want to see the future of retail, look to China,” the report said.

    “In many ways, it is leading the world… Chinese consumers are using mobile in every aspect of their lives.”

  • FamilyMart is suing its Chinese partner

    FamilyMart is suing its Chinese partner

    FamilyMart is suing its Chinese partner in a dispute over royalties which could spell the end of the joint venture.

    With 2500 stores across China, FamilyMart has the second-largest network of foreign players, but the highest market share at around 8.4 per cent, according to Euromonitor data. The Chinese business, owned by Taiwan-based Ting Hsin International Group, is considered a mainland entity having had a presence there since the late 1980s.

    Japan’s FamilyMart UNY has lodged a suit in the Cayman Islands, where both companies are registered, seeking to force Ting Hsin to relinquish its 60 per cent stake in the venture, according to documents sighted by Bloomberg. It claims the Chinese company has not been fairly sharing the profits from the chain’s expansion in China.

    But Ting Hsin counters that familyMart is seeking royalty fees three times higher than rival chains such as 7-Eleven, which is also Japanese owned.

    A FamilyMart spokesperson says the company cannot comment on matters of litigation. Ting Hsin cited confidentiality agreements for not commenting.

    However FamilyMart UNY is alleging that Ting Hsin sought to reduce the royalty fee it pays for using the brand from 1 per cent of sales to 0.3 per cent or less. At one point, it allegedly withheld royalty payments for seven months.

    Ting Hsin has also been accused of failing to adequately disclose transaction data which would allow familyMart UNY to gain an accurate picture of the business’ performance in China.

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  • New outlets boost Koufu Sales

    New outlets boost Koufu Sales

    Singaporean food court and coffee shop management firm Koufu has reported 12.3 percent net profit growth for this year’s first quarter to S$7 million (US$5.13 million) on higher contributions across its business segments.

    The growth in net profit outpaced the 4.9 percent growth in Q1 revenue to $57.8 million compared to $55.1 million during the same period last year.

    “We are pleased to have achieved a strong start for the year,” said Koufu’s executive chairman and CEO Pang Lim. “We remain firmly focused on the expansion of our market share in food courts and coffee shops, growing our F&B concept stores, and bringing new food options and varieties to consumers both locally and in the region, leveraging on our distinct portfolio of brands.

    “We are encouraged by the strong reception of our R&B Tea brand and will continue to nurture this fast-growing brand in Singapore and in the region. Overseas, we have opened our second tea-beverage kiosk at Macau University this quarter and are currently negotiating terms with potential partners to operate both the R&B Tea and Elemen brands abroad. In Singapore, we will continue to seek and secure new premises to expand the number of F&B outlets in pursuit of sustainable growth.”

    Koufu’s synergistic business segments – outlet and mall management as well as F&B retail – both registered increased contributions during the period. The outlet and mall management segment, which contributed 51.4 percent of the group’s revenue, achieved a 9.2 per cent rise in segment revenue during the period. F&B Retail, which contributed 48.6 percent of the group’s revenue, saw a 0.7 percent growth to SGD28.1 million. The improved performance from both segments was due to new openings and overall robust revenue growth from all outlets that outweighed store closures during the quarter.

    The group’s islandwide network numbers 49 food courts, 15 coffee shops, a hawker center and a commercial mall under the outlet and mall management segment, while the F&B retail segment constitutes 73 self-operated F&B stalls, 16 F&B kiosks, eight quick-service restaurants, and three full-service restaurants.

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