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Tag: China

  • Toyota Establishes Research Institute In China To Study Hydrogen

    Toyota Establishes Research Institute In China To Study Hydrogen

    Japan’s Toyota Motor said on Sunday it was setting up a research institute in Beijing in partnership with Tsinghua University to study car technology using hydrogen power and other green technologies that could ease environmental problems in China. The initiative, outlined by Toyota’s President and Chief Executive Akio Toyoda in a speech at Tsinghua University, is part of the Japanese carmaker’s efforts to share more technology with China as it seeks to expand its business in the country by beefing up manufacturing capacity and distribution channels, a source close to Toyota said.

    The Tsinghua-Toyota Joint Research Institute will conduct research into cars and new technology to solve environmental problems in China, including reducing traffic accidents, Toyota said in a statement.The institute will “cooperate in research not only related to cars for Chinese consumers, but also in research related to active utilization of hydrogen energy that can help solve China’s energy problems,” the company said.

    The move dovetails with Toyota’s announcement this month that it would offer carmakers and suppliers around the world free access to nearly 24,000 patents for electric vehicle technologies.

    Executive Vice President Shigeki Terashi told Reuters earlier this month that the automaker intended to become a tier 2 supplier of hybrid systems and that it had already received enquiries from more than 50 companies.

    Later on Monday, Toyota said that it had started to supply fuel cell vehicle parts to Chinese commercial vehicle maker Foton and SinoHytec, without giving financial details of the deal. The company said in a statement that it hopes to cooperate with more companies in China to promote fuel cell vehicle penetration in China.

  • JD takes major stake in Five Star Appliances

    JD takes major stake in Five Star Appliances

    Chinese online retailer JD is to buy nearly half the shares in electrical goods retailer Jiangsu Five Star Appliance, for US$189 million. Jiayuan Chuangsheng currently holds 93 per cent of the Five Star business and after divesting a 46 per cent stake to JD will remain its largest shareholder with 47 per cent.

    Analysts say the investment will allow JD to boost its online profile and provide consumers with a network of about 300 Five Star Appliance storefronts, in much the same way as archrival Alibaba is building physical retail networks in Mainland China, blurring the boundaries between online and offline retailing.

    With stores primarily located in central and southern China, Five Star Appliances has annual sales of about US$2.7 billion.

    Last year, JD accounted for nearly 40 per cent of China’s home appliance sales, making it the largest retail in the space. Partnering with a brick-and-mortar retail network is likely to boost sales for both parties and protect JD from fast-growing Suniung.com which now accounts for 30 per cent of the market. Tmall is also building a share of the appliance sector, its sales now nudging 25 per cent.

  • FCC may ban China Mobile from US market

    FCC may ban China Mobile from US market

    The chairman of the US FCC has urged the agency to reject China Mobile’s applications to provide telecom services in the US market on national security grounds, in the latest salvo in the telecom trade war between China and the US.

    Federal Communications chairman Ajit Pai has released a statement urging his fellow FCC executives to vote for an order that would deny China Mobile’s application during the scheduled vote at its May Open Meeting.

    “Safeguarding our communications networks is critical to our national security. After reviewing the evidence in this proceeding, including the input provided by other federal agencies, it is clear that China Mobile’s application to provide telecommunications services in our country raises substantial and serious national security and law enforcement risks,” Pai’s statement reads.

    “Therefore, I do not believe that approving it would be in the public interest. I hope that my colleagues will join me in voting to reject China Mobile’s application. ”

    The draft order proposed by Pai would stipulate that China Mobile has not demonstrated that its application is in the public interest, but more importantly it would assert that “China Mobile is vulnerable to exploitation, influence, and control by the Chinese government.”

    China Mobile first applied back in September 2011 for a license to provide facilities based and resale telecommunications services between the US and overseas destinations.

    After a long review of the application, agencies within the US government’s Executive Branch recommended in July 2018 that China Mobile deny that application, citing “substantial national security and law enforcement risks that cannot be resolved through a voluntary mitigation agreement.”

    The proposed objection comes the month after Chinese vendor Huawei revealed it was taking the US government to court over an order banning federal agencies from buying its products due to national security fears.

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  • Amazon to close China mainland store

    Amazon to close China mainland store

    Amazon China is about to stop selling local goods to local shoppers. According to multiple financial-news services, the global e-commerce giant is about to announce the closure of its dedicated Mainland China store, however Chinese consumers will still be able to order goods from Amazon’s global store.

    The dedicated Amazon China platform will close in July, meaning shoppers will no longer be able to buy goods listed by third-party local suppliers.

    According to “people familiar with the matter” quoted by Bloomberg, exiting the intensively competitive Mainland China market will allow Amazon to shift its focus to more lucrative businesses selling imported goods to Chinese and developing its successful cloud services operation.

    The withdrawal comes 15 years after Amazon entered China, purchasing local online store Joyo.com for US$75 million. Seven years later it rebranded the site under its own banner.

    The company estimates it will take about three months to close down its mainland fulfilment centres and delist local vendors as appropriate.

    With Alibaba and rival JD accounting for a combined 82 per cent of the Mainland China online market, there was little room for Amazon to eke out a commercially viable market share within a reasonable time frame.

    Michael Pachter, an analyst at Wedbush Securities, said Amazon was pulling out of the Chinese domestic market, “because it’s not profitable and not growing”.

    “The domestic Chinese online retailers just have huge advantages that Amazon can’t compete with.”

    Amazon has yet to officially confirm the China plan.

  • Hamley’s set to be sold to Indian Toy Retailer

    Hamley’s set to be sold to Indian Toy Retailer

    Toy retailer Hamleys is set to have its fourth owner in 15 years since it was taken private by an Icelandic investor.

    According to multiple Indian news media reports, Reliance Retail is in the final stages of negotiations with China’s C.Banner International, which has been trying to find a buyer since last October, after three years of ownership.

    C.Banner bought the business in 2015 for US$130 million, but has struggled to produce a profit. The company reportedly lost $15.6 million in 2017 on sales down 2.5 per cent to $86.5 million.

    Sources in India are speculating Reliance Retail will pay between $36 and $50 million, representing a substantial loss for C.Banner on exiting the brand.

    Reliance Retail, a subsidiary of the giant Indian conglomerate Reliance Industries, is in acquisition mode as it tries to expand its business by 30 per cent annually for a decade, an ambition on a scale probably only realisable in India right now. As at the end of last year it operated 9907 stores across 6400 Indian cities with a combined retail area of more than 21 million sqft. Its retail licenses and partnerships include Marks & Spencer, Diesel, Steve Madden and Kenneth Cole.

    “Due diligence for the Hamley’s deal is at an advanced stage,” a source told Money Control, itself a subsidiary of Reliance Industries. “Reliance Retail is aggressively pursuing the deal.”

    Reliance Retail is already the Indian licensee of Hamley’s and operates 50 stores under the banner, representing the toy brand’s largest market by store numbers. There are plans to open 150 more.

    Toy retailer Hamley’s was founded in 1760 as Noah’s Ark. It has about 129 stores globally, including a Regent Street, London flagship and stores in China, Germany, Russia, South Africa and the Middle East. A foray into Vietnam in 2015 ended in failure, however the company still sells toys online there.

    If the acquisition proceeds, it will help boost Reliance Retail’s portfolio. “Reliance can scale up Hamley’s business with its capabilities in supply chain management and strong distribution network.”

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  • Yonghui boosts stake in Chinese grocery Zhongbai

    Yonghui boosts stake in Chinese grocery Zhongbai

    Dairy Farm Group-backed Yonghui Superstores is to boost its interest in Central Chinese regional supermarket chain, Zhongbai Holdings.

    According to a stock exchange filing in Shanghai, Yonghui is offering RMB8.10 per share to take its stake in the company from 30 per cent to 40 per cent. The deal is worth RMB559 million (US$83.3 million) and the shares will be bought from a state investment fund.

    Zhongbai, based in Wuhan, has 1255 stores, mostly in central China, including supermarkets, convenience stores, neighbourhood fresh-produce shops, foodmarkets and a premium grocery concept.

    Dairy Farm Group has a 20 per cent stake in Yonghui and has continued to invest in the business to maintain that shareholding as other investors, including Tencent and JD have invested in the retailer’s growth. Jardine Matheson executive chairman Ben Keswick is Yonghui’s chairman.

    Yonghui currently has just a single store in Hubei province, which means the investment will give it instant critical mass in the region. The company has more than 950 supermarkets in 22 Chinese provinces, its strongest representation in Guangdong.

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  • First 5G smart hotel launched in China

    First 5G smart hotel launched in China

    InterContinental Shenzhen, Shenzhen Telecom Engineering and Huawei have signed a strategic cooperation agreement to create the world’s first 5G smart hotel.

    By introducing the hotel industry’s first end-to-end 5G network with integrated terminals and cloud applications, the project will enable InterContinental Shenzhen to provide guests with an innovative luxury experience and open the door for digital transformation of entire hotel industry through 5G technology.

    Shenzhen Telecom is deploying Huawei’s 5G network equipment in the InterContinental Shenzhen to achieve continuous indoor and outdoor 5G coverage, which will serve as the platform for a new generation of hotel services.

    Guests will experience 5G hotel applications through 5G smartphones and customer-premises equipment (CPE) terminals, including 5G welcome robots, 5G cloud computing terminals, 5G cloud games and 5G cloud virtual reality (VR) rowing machines.

    For the project’s kick-off ceremony, Shenzhen Telecom and Huawei jointly deployed a 5G Digital Indoor System on the hotel’s first floor and in the presidential suites.

    In the hotel lobby, guests can access the 5G network through CPEs or their smartphones to experience high speed 5G downloads and uploads. Service efficiency is improved with 5G intelligent robots that provide services including guest information, destination guidance, and delivery.

    The presidential suites covered by the new network provide guests with 5G hotel services such as cloud VR rowing machines, cloud games and 4K movies.

    Dr. Peter Zhou, chief marketing officer of Huawei Wireless Solution, said: “5G is here – from the 4K ultra high-definition live broadcast of CCTV’s Spring Festival Gala early this year to today’s 5G entertainment and business transformation of the InterContinental Shenzhen’s presidential suites, 5G technology has penetrated into different industries.”

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  • AuMake in trading halt

    AuMake in trading halt

    Shares in daigou-focused retailer AuMake have been placed in a trading halt pending an announcement on an acquisition and related capital-raising.

    The company, which last month extended its bricks-and-mortar presence beyond Sydney, has requested the halt be lifted before the open of markets on Wednesday April 17, or when its anticipated announcement is released to the market.

    AuMake sells Australian skin care, supplements and milk formula to Chinese tourists and personal exporters.

    It has 17 stores across Sydney, Brisbane, and Auckland and is aiming for a bigger bite of the $2 billion cross-border commerce market.

    In February the company announced it had halved its losses after more than doubling its sales in the space of a year, with its internal sales forecast upgraded 30 to 40 per cent in March after it flagged the expansion of its stores.

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  • DBS Partners Sinosure for BRI Projects

    DBS Partners Sinosure for BRI Projects

    DBS Group has signed a cooperation agreement with China Export & Credit Insurance Corporation, adding to the list of banks that are partnering Sinosure for projects under the Belt Road Initiative.

    DBS Group Holdings on Monday announced that it has partnered with Sinosure, the only state-funded Export Credit Agency conducting export credit insurance business in the People’s Republic of China. It joins OCBC Bank, who last week announced a similar partnership agreement.

    «Through signing the cooperation agreement with Sinosure, we will strengthen our partnership and increase the depth of our business with mainland China by facilitating project finance, and investment and trade opportunities especially with partners in ASEAN. We look forward to helping companies capitalize on the numerous business opportunities offered under BRI,» said DBS Singapore Country Head Shee Tse Koon.

    Under the cooperation agreement, DBS and Sinosure will collaborate on projects under the Belt and Road Initiative, especially those from ASEAN, by leveraging each other’s strengths in trade and investments and in-market experience.

    Sinosure will provide credit insurance for DBS’ mid and long-term financing activities for projects in the fields of marine engineering, infrastructure construction, energy, chemicals and textiles, aerospace, as well as services and technology.

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  • China raids Ericsson after license fee complaints

    China raids Ericsson after license fee complaints

    Last Friday, Chinese investigators raided Ericsson’s offices in Beijing after receiving complaints about the licensing fees that Ericsson charges phone makers.

    Amid the background of increased global tension over Chinese vendors’ 5G technology being banned by the US and other countries, officials from China’s State Administration for Market Regulation (SAMR) are looking into Ericsson’s patent licensing practices after receiving complaints.

    In an email to FierceTelecom, an Ericsson spokesman confirmed that the company was under investigation by SAMR.

    “Ericsson can confirm that the Chinese SAMR has formally initiated an investigation due to complaints against Ericsson’s IPR licensing practices in China. Ericsson is fully cooperating with the investigation and will refrain from further comments while it is ongoing.

    “At Ericsson, we license our industry leading patent portfolio on FRAND (Fair, Reasonable and Non-Discriminatory) terms and conditions and have always been committed to these FRAND principles.”

    Last month Ericsson claimed to have 49,000 patents, while Huawei counted 87,805 in its 2018 annual report.

    The Wall Street Journal said that roughly 20 SAMR officers raided Ericsson’s Beijing offices on Friday. Earlier this year, Chinese mobile phone makers complained about Ericsson’s licensing practices. Chinese media reports implied that licensing fees paid to Ericsson would increase with the rollout of 5G technologies and services.

    China’s People’s Posts and Telecommunications News said in an online report that Chinese smartphone vendors were concerned that Ericsson would impose 5G patent fees on top of the current fees for 3G and 4G technologies.

    China-based Huawei is battling Apple as the world’s second-largest smartphone maker behind Samsung.

    Last month, Huawei filed a lawsuit against the US government challenging a recently passed law that bans federal agencies from buying Huawei products.

    Huawei was the top vendor globally in the wireless packet core (WPC) market last year while rivals Ericsson and Nokia rounded out the top-three spots. A February report by Dell’Oro said that Huawei was the largest global equipment service provider last year with more than a 30% market share.

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  • Tmall Reinforces Go-to Platform Status for Product Debuts

    Tmall Reinforces Go-to Platform Status for Product Debuts

    Alibaba Group’s Tmall today announced it will launch a dedicated gateway for customers to discover new products through the Taobao mobile app, looking to cement its position as the “go-to” platform for such launches.

    From Wednesday, customers clicking on the “Tmall” icon in their Taobao app will be directed to the “Tmall New Products” channel, which includes a full array of new features, such as Tmall’s “Most Sought-after New Items,” “The Next New Things,” “Limited Editions” and “New Flagships.” Working with brands and key opinion leaders, the channel will provide customers with in-depth information and recommendations on new products.

    Tmall has long been an effective platform for showcasing new products, a one-stop shop for consumers to find the hottest new items online, and a creative, experiential channel to interact with and learn more about new products.

    The new channel for product launches is powered by Tmall’s already impressive suite of marketing tools, such as “Hey Box” and the Tmall Innovation Center (TMIC). In the past year, 82% of new products tailored by TMIC became a top-three “hot” item in its category within 30 days of launch. TMIC has also reduced the product development cycle by half, to an average of nine months.

  • Rebecca Feng buys LK Bennett

    Rebecca Feng buys LK Bennett

    UK-based affordable-luxury fashion-brand LK Bennett has been sold to its Chinese franchise partner Rebecca Feng.

    Rebecca Feng, who operates the label’s business in China under a franchise agreement, competed with several interested buyers following the fashion retailer’s entry into administration last month, including founder Linda Bennett.

    The purchase reportedly places stores in Britain and Ireland in some danger of closure, which could affect up to 500 staff. It will also involve a review of the firm’s operations in Europe and the US, which filed bankruptcy proceedings earlier this month. The firm has some 200 locations globally.

    The brand was founded by Bennett in 1990 with the vision of bringing “a bit of Bond Street luxury to the High Street”. Initially known for its signature ‘kitten heels’ favoured by celebrities, the label grew to become a destination for feminine footwear. Ready-to-wear collections were introduced in 1998 establishing LK Bennett as a fashion house offering complete wardrobe solutions for all occasions.

    All of the label’s collections are designed in house with a theme that combines signature detailing with strong colours, distinctive prints and a flattering fit.

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  • Selected unveils Future You store concept

    Selected unveils Future You store concept

    Retail design agency Dalziel & Pow has created an elevated retail experience for Bestseller Fashion Group China’s “Selected” brand.

    The new premium Future You store concept is to be launched initially in a series of stores in Beijing, delivering a space “ready to connect, change, and dress the future consumer”. The design is an attempt to raise Selected’s profile as the destination for on-trend, quality workwear, as well as building an aspirational lifestyle model around the brand.

    Integrating a dynamic, hyper-connected experience to impress China’s digital natives, the store includes projections, kinetic signage and a live social media feed behind the cash desk to evoke a sense of change and “newness”. A “magic mirror” within the fitting rooms area allows customers to swipe through products to find their perfect outfit, which once chosen can then be shared via WeChat.

    Integrated throughout the store on the perimeter rails are pocket-sized screens, called “Debriefs” which showcase bite-sized snippets of product information, education on materials and fashion inspiration.

    The design language for the store was developed to create a feeling of “one space”, a concept designed for people and not for genders; a fluid space creating flow between categories and reflecting the fact that Chinese couples often shop together. A single product rail flows through the whole store, symbolically unifying the space.

    Selected’s fitting rooms form a key architectural feature as well as a social space, as is the cash desk. There are also separate shop-in-shop areas for Chinos and Denim, enhanced by miniature screens detailing fit and fabric qualities.

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  • Singapore retail sales plunge due to Chinese New Year

    Singapore retail sales plunge due to Chinese New Year

    Singapore retail sales plummeted 10 per cent year on year in February – but the sudden drop was largely due to the timing of Chinese New Year celebrations.

    After excluding motor vehicles from the figures, sales dropped by a slightly higher 10.7 per cent.

    Chinese New Year fell in the middle of the month last year, and early in the month this year, resulting in a shifting of some seasonal spending back into January this time around. Figures combining January and February sales in both comparable periods were not released.

    According to Statistics Singapore, sectors such as food retailers, apparel & footwear, supermarkets & hypermarkets, department stores, furniture & household goods, and medical goods & toiletries registered declines in retail sales of between 10.4 per cent and 24.8 per cent this year.

    Sales of watches & jewellery, optical goods, and books fell by between 7.2 per cent and 9.2 per cent.

    Statistics Singapore estimated total retail sales in February this year at $3.3 billion, with online retail sales comprising about 5 per cent of those.

    Sales of food & beverage services decreased 2.3 per cent year on year. The total sales value of food & beverage services in February was estimated at $855 million, compared to $875 million in February last year.

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  • Greater China and South Korea drive Massive Uniqlo sales

    Greater China and South Korea drive Massive Uniqlo sales

    Heavy discounting necessary to offload winter stock has hit Uniqlo sales. Parent Fast Retailing has struggled with a shortage of popular winter items in the past, and overcompensated last winter by ordering too much inventory ahead of what proved to be an unusually warm season.

    As a result, the Japanese retailer’s first-quarter profit took a hit which in turn impacted of first-half results issued yesterday.

    The company reported declines in both revenue and profit in the first half of the current financial year, with revenue totaling ¥491.3 billion, (US$4.397 billion) down 5 per cent from the previous corresponding period, and operating profit totaling ¥67.7 billion ($606 million), down 23.7 per cent from the previous year. Same-store sales fell 9 per cent, however online sales, which now account for 9.9 per cent of Uniqlo sales in Japan and 20 per cent in China, rose 30.3 per cent.

    The weak first quarter for Uniqlo sales was in part compensated for by a double-digit increase in sales and profit in China, which helped the brand turn in a better-than-expected rise in operating profit to ¥68 billion ($609 million) for the three months to February.

    The company said it now expects an operating profit of ¥260 billion for the financial year through August, compared to its previous forecast of  ¥270 billion in January. The revised outlook would still be a record high and represent a 10 per cent year-on-year rise.

    Uniqlo re-stated its medium-term vision of becoming the world’s number one apparel retailer.

    “In pursuit of this aim, we are focusing our efforts on expanding Uniqlo International and our GU casual fashion brand,” said Tadashi Yanai, chairman, president and CEO of Uniqlo. “We continue to increase Uniqlo store numbers in each country in which we operate, and open global flagship stores and large-format stores in major cities around the world to further develop Uniqlo as a global brand.”

    He said that within the company’s international division, Greater China and Southeast Asia are entering “a new stage of growth as key drivers of operational expansion”.

    Uniqlo Greater China generated double-digit growth in both revenue and profit in the first half of the year despite the dampening effect of the mild winter weather.

    “Within that region, our operation in Mainland China continued to report strong growth in revenue and profit of approximately 20 per cent year on year. Uniqlo South Korea also reported increases in both revenue and profit. Uniqlo Southeast Asia & Oceania generated significant rises in both revenue and profit thanks to strong increases in same-store sales in every single one of the region’s markets.

    Meanwhile, the company plans to open more GU stores in Japan, while expanding the brand’s international presence, primarily in Greater China and South Korea.

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