Tag: China

  • Sprayground opens Chinese Stores

    Sprayground opens Chinese Stores

    Retailer Sprayground eyes global expansion

    “Creative rebel” travel-and-fashion label Sprayground opened three retail stores in China on May 1, and is eyeing global expansion.

    The brand presents niche offerings as limited-edition collectibles in its capacity as an “authority in fashion-forward backpacks and accessories”.

    With distribution to more than 30 countries and a growing fanbase, the new Chinese locations have already made an impact. The brick-and-mortar stores are in Beijing’s Xicheng district, Hefei’s Shushan district, and the Minhang District in Shanghai – and more than 100 retail stores are set to launch there over the next three years.

    Sprayground’s founder and creative director David Ben David will visit all three stores during the simultaneous grand openings and plans to greet team members and shoppers throughout the initial week before attending China’s very first Sneak-Con, which kicks off on May 18.

    Part of Sprayground’s mission is to expand the creativity to the “creative outcasts of the country” and elevate the game in China by infusing New York-style streetwear and hip-hop.

    Sprayground collaborations have featured some of hip hop’s favorites such as Saweetie, Young Dolph, Young Thug, and Dave East.

  • Brooks Running moves China footwear production to Vietnam

    Brooks Running moves China footwear production to Vietnam

    The chief executive of Brooks Running, part of Warren Buffett’s Berkshire Hathaway Inc, said his company will shed much of its presence in China by moving running shoe production to Vietnam, a result of the trade dispute between China and the US.

    Jim Weber, who has run Brooks since 2001, said in an interview that Brooks made the decision in January when US President Donald Trump was threatening to boost tariffs on the shoes to 45 percent from 20 percent.

    Weber said the tariff threat weighed “massively” because Brooks cannot simply raise prices on its shoes, which typically retail for US$100 to $160 a pair, and though trade tensions have cooled, the company could not wait for a resolution.

    “We’re going to pull most of our production out of China,” he said. “We’ve had to make a long-term decision on this picture. It’s disruptive, but the reality. So we’ll be predominantly in Việt Nam by the end of the year.”

    About 8,000 jobs will also move to Vietnam from China, Weber added.

    Việt Nam is emerging as a preferred destination for companies looking to move production because of tariff concerns.

    The country generates about 55 percent of Brooks’ running shoe production, with China accounting for the remainder. Brooks shoes are sold in 56 countries and account for the bulk of the Seattle-based company’s annual revenue, which grew 26 percent last year to $644 million.

    Revenue from January to April is up 22 percent in 2019, and Weber is targeting full-year revenue of just under $750 million. He hopes revenue will reach $1 billion by 2021. Brooks also sells apparel.

    Weber said Brooks may start shoe production in a third, yet-to-be-determined country next year. The eventual breakdown could be 65 percent from Việt Nam, 10 percent from China and 25 percent from the third country, he said.

    Brooks plans to continue research and development, as well as small production runs of shoes, in China.

    Weber also said Brooks hoped to “prototype small, custom personalized shoe runs” in the US within the next several years, but much of the company’s technical know-how and automation is in Asia. “Volume is a long ways away,” he said.

    Brooks became part of Berkshire in 2006 when Berkshire’s Fruit of the Loom unit bought its parent at the time, Russell Corp. Berkshire spun out Brooks as a standalone unit in 2012.

    Weber began reporting last year to Berkshire Vice Chairman Greg Abel, after previously reporting to Buffett.

  • China ends Lotte Markt Sanctions

    China ends Lotte Markt Sanctions

    Lotte sanctions imposed by the Chinese government two years ago have now been lifted.

    Authorities in Shenyang have allowed South Korea’s Lotte Group to resume work on a US$2.6 billion retail and leisure development in the region following the lifting of sanctions against the firm by the Chinese government last month.

    The Lotte sanctions were imposed two years ago after the group yielded land to a US anti-missile defense system.

    Shenyang, a capital city in China’s Northeast, has now permitted the resumption of work on the Lotte Town development, although Lotte has not yet formally indicated whether or not it intends to restart construction, which has been on hold while the sanctions have been in place.

    The first phase of the project was completed in 2014, while the theme park, flats, and hotel planned for the site remain unfinished following Lotte’s sale of land in Seongju county to the South Korean government to allow the deployment of the US Terminal High Altitude Area Defence system.

    The Lotte sanctions prompted the South Korean company to announce its withdrawal from Mainland China last year, although it now insists that no final decision has been made.

  • AirAsia flies to Lanzhou and Quanzhou

    AirAsia flies to Lanzhou and Quanzhou

    AirAsia continues its expansion into China with two new services from Kuala Lumpur to Lanzhou and Quanzhou. These new services take the number of AirAsia destinations in China to 24, firmly cementing the airline’s position as the largest foreign carrier by capacity operating in China with over 400 weekly flights.

    “Malaysia and China are celebrating 45 years of bilateral relations this year. These exclusive direct services from Kuala Lumpur to Lanzhou in the north-west and Quanzhou in the south-east will deliver an additional 280,000 seats per annum to and from China, allowing us to forge even stronger ties between both nations,” said AirAsia X Malaysia CEO Benyamin Ismail.

    AirAsia China CEO Tassapon Bijleveld said: “AirAsia has grown its footprint in China for more than 14 years now, connecting millions of people from Asean to underserved second and third-tier Chinese cities at low fares.

    And China remains a key market for our future growth. Just recently, we launched our new Bangkok-Shenyang service and we continue to review a number of other potential Chinese routes that we hope to be in a position to announce soon.”

    Book all-inclusive AirAsia BIG member fares from as low as RM209 (one-way) to Lanzhou and RM129 (one-way) to Quanzhou on airasia.com or the AirAsia mobile app from now until May 5, 2019, for travel until Sept 30, 2019.

    Enjoy the award-winning premium flatbed to Lanzhou for all-inclusive AirAsia BIG member fares from as low as RM889 (one-way) during the same booking period.

  • The Motorola One Vision Will be Announced Soon

    The Motorola One Vision Will be Announced Soon

    Motorola has released a total of three Android One smartphones since 2017 – the Motorola One, One Power, and Moto X4 – but soon this list could expand with the launch of the Motorola One Vision.According to one Twitter user with a seemingly solid track record, the Motorola One Vision will make its official debut at an event held in São Paulo, Brazil on May 15th. To further back up his claim, an official-looking invite to the event was provided.

    Brazil isn’t typically the first place manufacturers head to for device announcements, but for Motorola it’s nothing out of the ordinary. Since mid-2014, the Chicago-based brand has been the second-largest smartphone vendor in Brazil behind Samsung. Most of this success is down to the budget Moto G and Moto E lineups, but from the look of things Motorola now wants to increase its sales in the mid-range segment.

    As specified by recent leaks, the Motorola One Vision should arrive equipped with a large 6.2-inch display that boasts a tall 21:9 aspect ratio and a small cut out in the top corner. It’s unclear at the moment what kind of selfie camera the latter will house, but rumor has it the smartphone will come equipped with a 48-megapixel sensor on the rear that’ll be paired with a dedicated depth sensor.

    On the internal side of things, the One Vision looks set to be Motorola’s first smartphone with a Samsung processor in side. Specifically, the Exynos 9610 that was recently used inside the Galaxy A50 was rumored. Performance-wise, this should be on par with the Snapdragon 660.

    Also to be expected is stock Android 9 Pie and a decent 3,500mAh battery. Additionally, 3GB of RAM and 32GB of storage are expected, although variants with 4GB of RAM and either 64GB or 128GB are said to be on the way too.

    Lastly, regarding the pricing and availability, the Motorola One Vision will apparently be sold in both Blue and Gold and could potentially be sold in the US in addition to Europe, Latin America, and China. The smartphone’s pricing currently remains a mystery, but this device could potentially replace the original Motorola One which means a $399 price tag seems likely.

  • Vodafone’s reveal keeps the pressure on Huawei

    Vodafone’s reveal keeps the pressure on Huawei

    In this week’s news is yet another story about Huawei and security as European telecommunications operator and regulators continue to scrutinize the gear in advance of 5G deployments. This one is historical though. Apparently Vodafone found security flaws in Huawei gear its Italian unit bought back in 2011 and 2012.

    In the technical sense, this is hardly a surprise. Vulnerabilities and patches are an ongoing part of pretty much all software development, and in this case the problem came with the telnet protocol. There was a day when telnet was a thing for everyone, but these days it’s more a diagnostic thing. According to Vodafone, the flaw would not have been accessible via the internet and was quickly patched. All vendors have processes to handle exactly this sort of thing, and all have done so many times. So the fact that it happened eight years ago in this case is news today only because it was Huawei.

    But the pressure to block Huawei from 5G deployments continues unabated. The contention is that because China requires all its companies to help its national security apparatus and Huawei (like every major Chinese company) has deep ties to that apparatus. On the one hand, it’s easy to envision spies doing this sort of thing. On the other hand, it’s very hard to imagine such deliberate vulnerabilities remaining undetected for long in a suspicious world.

    The most recent development came a few days ago when KPN decided Huawei gear was fine for radios and antennas, but not when it comes to the gear in its core 5G network. They’ve got a deal in place, but with an exit clause in case regulators or lawmakers act to ban Huawei entirely. That seems to have emerged as the consensus response of European telcos to all this pressure, a way to keep Huawei in the mix while still mollifying critics and covering themselves legally.

  • Zwilling Shanghai flagship store Gets Rewarded

    Zwilling Shanghai flagship store Gets Rewarded

    Shanghai flagship store wins international retail design accolade. The Zwilling Shanghai flagship store has been selected as one of the world’s three best retail store designs in the annual EuroShop RetailDesign Awards.

    The store blends retailing with cooking classes and a restaurant, with a focus on traditional western and eastern themes combined with “a puristic and understated interior”.

    The store’s achievement was announced at a function in Shanghai coinciding with the C-star retail industry trade show. Organised by research and training company EHI and Messe Dusseldorf the awards select three stores out of 71 nominees, with all three equally recognised. The other winners this year were L&T Sport in Osnabruck in Germany and Jigsaw’s The Shop at Bluebird in London.

    Of the Zwilling Shanghai store, the judges said “dynamic changes in colours, materials and music provide contrast to differentiate individual areas of the store”.

    “Bathed in light, the ground floor features light oak and dark walnut, a sand-coloured terrazzo floor, and steel and brass frames, which all serve as a backdrop for the products, providing a warm, Mediterranean atmosphere. Dedicated to various food concepts, the upper floor is characterised by varying floor heights and seating.”

    With tabletops made of blue glass and lighting elements made of brass, the store’s overall design is reminiscent of Shanghai’s Art Deco heritage.

    A 36-metre-long wooden table with teal velvet chairs adds a rustic touch to a fine-dining area, where visitors are invited to enjoy a meal.

    “The customer encounters the brand’s product world authentically – through a culinary adventure or hands-on cooking school experience.”

    Surfing in the city

    L&T Sport’s store, created by German fashion house Lengermann + Trieschmann, features 5000sqm of retail space over five floors. One of the store’s main attractions is the Hasewelle, a wave pool where surfers can test the latest boards right there in the store. Polygonal lines form the basis of the store design. The railings, whose lines are shaped in accordance with this design, are staggered across the floors in such a way that each floor and each position provides a new view of the Hasewelle pool.

    In order to integrate the individual sporting goods brands into the design, the store refrains from the usual shop-in-shop brand solutions. Members can train in high-altitude conditions in an 800sqm Premium City-Gym. Separated from the store by nothing more than glass walls, the gym is part of the sporting goods store while also serving as an extension of its core business.

    A cabinet of curiosity

    The Shop at Bluebird is owned by British fashion company Jigsaw and specialises in high-end brands from the worlds of fashion, beauty, art and design. The concept store’s diverse offerings are housed in a heritage-protected 19th-century historical coach house on Floral Street in Covent Garden, London.

    “Striking, opulent decor and design elements combine to create a ‘cabinet of curiosity’,” the judges said.

    An atrium filled with natural light and a cobblestone floor creates an open-air ambience in the middle of the store. A custom-made, cube-shaped installation with 20 reflective surfaces hanging from the ceiling creates an artistic effect by reflecting and distorting its surroundings.

    “The design concept plays with geometric forms and curved lines, combining traditional and modern elements harmoniously. Wallpapers in coordinated colours and textures complement the multifaceted aesthetic, consisting of elegant Art Deco patterns and floral Victorian motifs.”

    The Zwilling Shanghai flagship store has been selected as one of the world’s three best retail store designs in the annual EuroShop RetailDesign Awards.

    The store blends retailing with cooking classes and a restaurant, with a focus on traditional western and eastern themes combined with “a puristic and understated interior”.

    The store’s achievement was announced at a function in Shanghai coinciding with the C-star retail industry trade show. Organised by research and training company EHI and Messe Dusseldorf the awards select three stores out of 71 nominees, with all three equally recognised. The other winners this year were L&T Sport in Osnabruck in Germany and Jigsaw’s The Shop at Bluebird in London.

    Of the Zwilling Shanghai store, the judges said “dynamic changes in colours, materials and music provide contrast to differentiate individual areas of the store”.

    “Bathed in light, the ground floor features light oak and dark walnut, a sand-coloured terrazzo floor, and steel and brass frames, which all serve as a backdrop for the products, providing a warm, Mediterranean atmosphere. Dedicated to various food concepts, the upper floor is characterised by varying floor heights and seating.”

    With tabletops made of blue glass and lighting elements made of brass, the store’s overall design is reminiscent of Shanghai’s Art Deco heritage.

    A 36-metre-long wooden table with teal velvet chairs adds a rustic touch to a fine-dining area, where visitors are invited to enjoy a meal.

    “The customer encounters the brand’s product world authentically – through a culinary adventure or hands-on cooking school experience.”

    Surfing in the city

    L&T Sport’s store, created by German fashion house Lengermann + Trieschmann, features 5000sqm of retail space over five floors. One of the store’s main attractions is the Hasewelle, a wave pool where surfers can test the latest boards right there in the store. Polygonal lines form the basis of the store design. The railings, whose lines are shaped in accordance with this design, are staggered across the floors in such a way that each floor and each position provides a new view of the Hasewelle pool.

    In order to integrate the individual sporting goods brands into the design, the store refrains from the usual shop-in-shop brand solutions. Members can train in high-altitude conditions in an 800sqm Premium City-Gym. Separated from the store by nothing more than glass walls, the gym is part of the sporting goods store while also serving as an extension of its core business.

    A cabinet of curiosity

    The Shop at Bluebird is owned by British fashion company Jigsaw and specialises in high-end brands from the worlds of fashion, beauty, art and design. The concept store’s diverse offerings are housed in a heritage-protected 19th-century historical coach house on Floral Street in Covent Garden, London.

    “Striking, opulent decor and design elements combine to create a ‘cabinet of curiosity’,” the judges said.

    An atrium filled with natural light and a cobblestone floor creates an open-air ambience in the middle of the store. A custom-made, cube-shaped installation with 20 reflective surfaces hanging from the ceiling creates an artistic effect by reflecting and distorting its surroundings.

    “The design concept plays with geometric forms and curved lines, combining traditional and modern elements harmoniously. Wallpapers in coordinated colours and textures complement the multifaceted aesthetic, consisting of elegant Art Deco patterns and floral Victorian motifs.”

  • La Chapelle sales Slump Again

    La Chapelle sales Slump Again

    La Chapelle sales slumped 21 per cent in the first quarter to RMB2.372 billion (US$352 million) as the Hong Kong-listed fashion retailer continued its restructuring.

    The troubled retailer has closed 1877 loss-making and inefficient stores in the past year, leaving it with 9540 at the end of March, and representing the shuttering of one in five directly operated outlets.

    Net profit attributable to shareholders plunged 94.4 per cent to RMB9.751 million (US$1.44 million).

    In a shareholder update, La Chapelle said weak consumer confidence and the continued overall negligible growth of apparel spending compared with the second half of last year had also impacted on sales in the March quarter.

    According to the National Bureau of Statistics data, Mainland China sales of shoes, hats and apparel grew by just 3.3 per cent year on year, a rate five percentage points less than the growth rate of all consumer goods sales.

    “Furthermore, the Chinese New Year holiday of 2019 was 11 days earlier than that of 2018, which had an adverse effect on the sales of winter products for the first quarter. The revenues of the ladies’ apparel brands such as La Chapelle, Puella, 7 Modifier as well as La Babite for the first quarter had a year-on-year decrease of 26.65 per cent, 29.76 per cent, 22.91 per cent and 23.06 per cent respectively, which is mainly due to the decrease in direct-sale stores, the change in numbers of ultimate consumers, and the increase in proportion of sales of obsolete inventories,” the company said.

  • Chinese KFC restaurants struggles as chicken prices Increases

    Chinese KFC restaurants struggles as chicken prices Increases

    Chinese KFC restaurants have begun serving parts of chickens not used before in response to rising costs.

    According to Yum China CEO Joey Wat, the KFC brand introduced new chicken cuts in the first quarter from “a part of the chicken that we somehow have not used in the last 30-some years”. The cut is a portion between the wing and the breast.

    The elevated poultry costs are largely attributed to a spin-off effect from the impact of African Swine Fever on the pork market as well as the current trade war with the US.

    The costs have seen KFC’s operating margin reduced to 18.7 per cent from the previous 20.6 per cent, despite a rise in same-store sales of 5 per cent. KFC has faced commodity inflation of 5 per cent in the first quarter, according to the company’s earnings call.

    “We expect poultry inflation to weigh on margins for the rest of the year,” said Yum China CFO Jacky Lo.

    Wat stated that the chain may be turning to new technology to save its declining margins in the hope that such technology can provide “another way to cut out chicken.”

    The brand may also introduce “some sort of ingredient” other than chicken “that probably has not been used before.”

  • Suning.com’s Online Sales Soars

    Suning.com’s Online Sales Soars

    Suning.com’s first-quarter online sales soared 40.87 per cent as the company’s smart-retail strategy continues to drive the rapid growth.

    Operating income of RMB 62.2 billion (US$9.2 billion), represented a 25.44 per cent increase on the same period last year. First-quarter net profit was RMB 136 million.

    In a statement, Suning.com said during the first quarter of this year, the overall domestic consumer market in Mainland China still exhibited potential for growth.

    “Despite the softer market environment, Suning’s online and offline businesses maintained relatively rapid growth.”

    Off-line, Suning continued its large-scale expansion, its network comprising 9758 self-owned stores and 2571 franchise stores as at March 31. A standout was the Redbaby store, whose sales increased by 15.7 per cent year on year.

    “In the online market, with the enhanced industrial synergy and the improved efficiency brought by resource integration, the growth rate of Suning’s sales clearly outpaced the industry average,” the company said.

    During the quarter, the company set up five major product groups including household appliances, consumer electronics, FMCG, clothes and accessories, and international items to streamline product management.

    In the FMCG sector, Suning strengthened its brand and achieved dual online-offline growth through centralised procurement, purchasing directly from the manufacturer and strategic cooperation, which helped grow its network of offline stores.

    “In the same period, Suning has further optimised the supply chain management of online and offline stores through the acquisition of 37 Wanda stores, marking a significant success for Suning’s all-categories product portfolio operational strategy.”

  • Gome profit warning issued to Shareholders

    Gome profit warning issued to Shareholders

    Another Gome profit warning has been issued as the company’s massive restructuring program continues.

    However the group says the reforms are beginning to show results and while a loss is anticipated for the latest quarter, it will be less than that of the previous period.

    According to a stock exchange filing, Gome says its loss attributable to owners is expected to range somewhere between RMB20 million (US$3 million) and RMB90 million ($13.4 million), as compared with a profit of RMB113 million for the corresponding period last year. The loss will be “significantly reduced” compared with the loss for the December quarter, the company said. Last full year, Gome lost RMB4.887 billion ($728 million).

    The group says it continued to actively pursue its transformation into an integrated home solution, service solution and supply chain provider based on its strategy of ‘Home • Living’. It expects the group’s total GMV for both online and offline to grow about 5 per cent year on year for the March quarter.

    Of that, GMV from Me Shop is expected to grow by more than 200 per cent, service GMV by more than 30 per cent, GMV from smart products by more than 50 per cent; and GMV from new businesses such as home solution and integration of kitchen cabinets with electrical appliances, by more than 100 per cent.

  • Low-cost imports challenge Furniture Retailers

    Low-cost imports challenge Furniture Retailers

    The furniture retailing industry may face a tough trading environment in 2019-20 with revenue expected to decline by 3.3 per cent during the period, according to IBISWorld analysts.

    Mounting internal and external competition is expected to continue to threaten the viability of furniture operators in the current year, with revenue expected to decline to $890.0 million as the industry continues to struggle with a challenging operating environment.

    Bao Vuong, IBISWorld senior industry analyst, said the rising volume of low-cost furniture imported into New Zealand is also forecast to hinder the industry’s performance in the current year.

    “The availability of low-cost furniture imports is projected to heighten industry competition,” Vuong said.

    Industry revenue is also likely to be suppressed by slower growth in residential building construction, which will reduce retail demand for furniture items.

    An IBISWorld furniture retailing industry report last year showed it has faced a tough trading environment over the past five years, with revenue growth stifled by increasing competition.

    Within the industry, players typically compete on the basis of price and product range.

    External competition comes from a range of other operators that sell furniture as part of their operations, including department stores, auction websites and online-only players.

    In the next five years through 2023-24, IBISWorld analysts forecast the furniture retailing industry to be operating within a challenging environment .

    “Mounting internal and external competition is projected to continue threatening the viability of operators over the period,” analysts said.

    The report also showed softer real household discretionary income growth could hinder retail demand for furniture products during the period.

  • Four Bidders shortlisted in Metro China sale

    Four Bidders shortlisted in Metro China sale

    Germany’s Metro has shortlisted four prospective bidders for its China business, including two of Mainland China’s largest retail groups.

    The Metro China sale has been in planning since last September, with formal bids invited in March as the German retail giant looks to quit the challenging market.

    Metro AG has invited Suning Holdings, Yonghui Superstores, Wumart stores and Meicai to submit bids before a deadline of late May, early June. Some of the bids may be lodged in partnership with private equity investors.

    Meicai is an unexpected inclusion in the shortlist. A local startup that acts as a conduit between farmers and restaurants, Meicai was founded by Liu Chuanjun, a local entrepreneur in 2014. According to a Bloomberg News report last October, the startup last year raised at least $600 million in a funding round led by Tiger Global Management and Hillhouse Capital, which would have valued the business then at about $7 billion.

    The Metro China sale is expected to net the Germany owner about $1.5 billion. The cash-and-carry business has 95 stores and reported $3 billion last financial year.

  • China Unicom brings 9 investors to IoV subsidiary

    China Unicom brings 9 investors to IoV subsidiary

    China Unicom said a group of automobile OEMs have invested in its Internet of Vehicle (IoV) unit China Unicom Smart Connection Technology.

    Nine strategic investors, including major automobile companies FAW, Guangzhou Automobile Group and Dongfeng Motor Group, among others have picked up a combined 31.2% in Smart Connection Technology.

    The financial terms of the transaction were not disclosed.

    Following the introduction of strategic investors, Unicom now directly owns 68.8% of shares in the IoV unit, the Chinese telco said in a company statement.

    The divestment of stakes is part of the 5G business strategy of Unicom, which aims to launch commercial 5G services in 2020.

    Unicom said the new investors have strong strategic synergy with Smart Connection Technology in fields such as automobile manufacturing, industrial internet, technology and resources, and capital investment.

    The tie-up will enable Smart Connection Technology to secure better industry resources and competitive advantages to provide connected vehicle and service operation solutions and tap the business opportunities brought by 5G, the company added.

    Smart Connection Technology, established in 2015, provides services to major automobile OEMs in both domestic and international markets. According to Unicom, Smart Connection Technology has an over 70% share of the IoV market in China.

  • China Telecom formally signs Philippines JV agreement

    China Telecom formally signs Philippines JV agreement

    China Telecom has formally signed the agreement to create Mislatel, the joint venture that will become the Philippines’ third mobile operator, committing to invest $5.4 billion in the venture.

    The agreement with local conglomerate Udenna Corporation was signed last week in Beijing.

    China Telecom teamed up with Udenna Corporation, consisting of businesses owned by local tycoon Dennis Uy, to jointly submit an application in the Philippines’ new major player selection process in 2018.

    A company owned by Uy, also known as Mislatel, was granted a congressional telecommunications franchise in 1998, and the joint venture plans to use this franchise to operate.

    The joint venture’s entry in the market had the support of president Rodrigo Dutertre, but doubts were raised over the validity of this franchise due to Mislatel’s failure to launch services within the required window. But in February, the Philippines’ senate approved the transfer of the franchise to the joint venture.

    But due to delays receiving the required approvals to operate, Mislatel last week revealed plans to postpone its planned launch date from late 2020 to early 2021.