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Tag: E-Commerce

  • Amazon listed as most valuable brand

    Amazon listed as most valuable brand

    E-commerce giant Amazon has clinched the top spot in the world’s most valuable brand ranking, surpassing Google and Apple, according to a recently released ranking of global companies.

    The Seattle-based retailer has been valued at US$315.5 billion, up 52 per cent on last year with tech giant Apple coming in second, valued at $309.5 billion and Google in third place at $309 billion, Brand Z’s Top 100 Most Valuable Global Brand 2019 ranking (compiled by WPP research agency Kantar) revealed.

    Google and Apple had spent a combined 12 years at the top of Brand Z’s list, with Google taking the top spot last year.

    “Amazon’s smart acquisitions that have led to new revenue streams, excellent customer service provision and its ability to stay ahead of its competitors by offering a diverse ecosystem of products and services, have allowed Amazon to continuously accelerate its brand value growth,” Brand Z’s report indicated.

    Chinese e-commerce company Alibaba has overtaken Tencent for the first time to become the most valuable Chinese brand, moving up two places to number seven, growing 16 per cent to $131.2 billion.

    Tencent dropped three places to number eight, declining by 27 per cent to $130.9 billion year-on-year.
    Social media platform Facebook has retained its sixth spot while Instagram, at number 44, was named as this year’s fastest riser, climbing 47 places with a massive 95 per cent growth in brand value with $28.2 billion.

    Athleisure retailer Lululemon was named the second fastest riser, showing a 77 per cent growth year-on-year to $6.92 billion.

    “We’re seeing a move from individual product and service brands to a new era of highly-disruptive ecosystems,” said David Roth, CEO of The Store WPP EMEA and Asia and chairman of Brand Z.

    “Brands need to understand the value this type of model can create and should embrace its approach to be successful in the future,” Roth said.

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  • Alibaba signs deal for AliExpress Russia

    Alibaba signs deal for AliExpress Russia

    Alibaba Group has formed a US$2 billion joint venture AliExpress Russia to create a major e-commerce venture in the Russian-speaking market.

    Alibaba and the Russian government-backed RDIF sovereign wealth fund will each invest US$100 million in the venture which will absorb Alibaba’s existing AliExpress business. Russian mobile phone network Megafon will sell its 9.97 per cent interest in internet group Mail.ru to Alibaba in return for a 24.3 per cent stake in the new JV.

    In return, Mail.ru will roll its Pandao e-commerce business into AliExpress Russia and contribute $184 million in cash for a 15 per cent share.

    AliExpress Russia has been created to expand the three companies’ e-commerce offer in both Russia and neighbouring countries.

    Documents to create AliExpress Russia were signed last week. The company will be jointly run by Alibaba and Mail.ru, each of which will appoint a CEO.

    “This partnership will enable the AliExpress Russia JV to accelerate the development of the digital consumer economy of Russia and CIS countries in ways that no one party could accomplish alone,” said Daniel Zhang, CEO of Alibaba Group. “Together, we are uniquely positioned to offer consumers in Russia and neighbouring countries an innovative shopping experience by combining social platforms with commerce, as well as enabling regional brands and SMEs to sell their products locally and globally.”

    He said Alibaba’s mission is to make it easy to do business anywhere. “This JV is an important part of Alibaba’s international expansion and step toward our goal of supporting 10 million small businesses reach profitability and serving 2 billion consumers around the world.”

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  • Love, Bonito to open in Funan Mall

    Love, Bonito to open in Funan Mall

    Online fashion retailer Love, Bonito is about to open its third and largest physical store yet, at Funan mall.

    Set to offer a “thoughtful and feminine” retail experience, the store will have customer touch points such as “Instagrammable” spots, and an express counter for click-and-collect orders.

    “More importantly, the store will hold dedicated and designated space for us to bring our community together to experience the brand, via workshops and events,” Rachel Lim, Love, Bonito co-founder said.

    The store will also offer personal stylists on demand who will be ready to give fashion advice to customers.

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  • Swee!’s celebration of Singaporean culture through creative branding lands RedMart global brand award recognition

    Swee!’s celebration of Singaporean culture through creative branding lands RedMart global brand award recognition

    Swee!, a hyper-local brand under the Private Label umbrella of RedMart, Singapore’s leading online grocery retailer, has been awarded Gold in the New Brand category at the 2019 Vertex Awards. The annual Vertex Awards celebrates and recognises the best in private brand packaging design across the globe.

    Other Gold Award winners this year include renowned overseas retailers such as Woolworths Supermarkets in Australia, 7-Eleven in the US, Sobeys in Canada, Albert Heijn and SPAR in the Netherlands, El Corte Inglés in Spain, and German supermarket chain Aldi.

    Launched in February 2018, the Swee! brand is a celebration of Singaporean tastes and preferences, offering entry-level, everyday groceries and household items ranging from oyster sauce and sesame oil to sausages and scourers for Singapore shoppers. It is one of three brands under RedMart’s Private Label range, along with RedMart Label and World’s Cellar. Launched in May 2015, the three brands together house more than 320 products across 13 categories, all sold exclusively on RedMart.

    Richard Ruddy, Chief Retail Officer and Head of Grocery for Lazada Singapore, said, “We launched our RedMart Private Label range in May 2015 with the aim of delivering value for money to customers with no compromise on quality or innovation. Since then, the range has grown by leaps and bounds – we have experienced 80 percent year-on-year growth and more than tripled our Private Label revenue since June 2017, and almost 50 percent of RedMart shoppers now buy RedMart Private Label products.”

    Nupur Agrawal, Private Label Lead at RedMart, said, “We are thrilled to receive this award with Anthem Singapore for RedMart’s Swee! Label, which is under our Private Label umbrella. We will continue to expand our offerings to provide Singapore grocery shoppers with the best product range and quality regardless of price point, as well as look for ways to enhance the online-to-offline experience, such as through innovative and iconic packaging designs.”

    Anthem, the global creative agency responsible for Swee!’s packaging design, was challenged by RedMart to deliver a brand story with local relevance and ultimately attract more traditional shoppers who are more comfortable buying from their regular brick-and-mortar supermarket. RedMart and Anthem’s goal was to create a brand proposition that connects with the local consumer and answers their need for a range of simple, fit-for-purpose items.

    Spencer Ball, Creative Director of Anthem Singapore, said, “It is a proud moment seeing Swee!, a brand born out of Singapore’s heartland, being honoured on the world stage. This is a perfect example of the shared belief in a simple, strong idea, from a talented creative team and a bold client.”

    As a strictly online brand, packaging presentation and branding is paramount. RedMart and Anthem collaborated to create a brand with a ‘chirpy’ personality, but with a familiar simplicity. Drawing on inspiration from Singapore’s heartland, with a nod to the utilitarian aesthetics of high-rise public housing estates and the unpretentious language of the neighborhood wet market, Anthem landed with the brand name ‘Swee!’ – a Hokkien expression that roughly translates to ‘works perfectly’. Since its debut on RedMart, the line has continued to grow with a diverse range of products.

    Anthem is known for choosing to collaborate exclusively with retailers and brand owners who share their company values in ensuring the highest quality products. The brand development partnership with RedMart was a great fit, as RedMart’s Private Label is built on stringent quality guidelines with a deep commitment to supporting sustainably and responsibly sourced products.

    Anthem, part of SGK group, had previously won Vertex awards for other projects. This year, the group has also won Gold Vertex Awards for the work developed for Woolworths Supermarkets.

    The 2019 Vertex Awards received a record number of entries from 33 countries representing the absolute best in packaging design from across the globe.

    RedMart is fully owned by Lazada Group, Southeast Asia’s leading eCommerce and shoppertainment platform.

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  • Amazon cutting prices on thousands of online items

    Amazon cutting prices on thousands of online items

    Amazon Australia is holding its second mid-year sale, slashing prices on tens of thousands of products from Friday, May 31, through the month of June. The deals include up to 50 percent off select clothing, shoes and accessories from brands such as Calvin Klein, Berlei and Bonds; discounts on select TVs, video games and books; and 15 percent off household and pantry essentials when you spend $50 or more.

    Savings are advertised across all of Amazon’s 29 product categories, including kitchen, baby and pets.

    “With tens of thousands of products available at discounted prices and new deals going live every day throughout June, we hope our Mid-Year Sale provides something for everyone,” Rocco Braeuniger, country manager of Amazon Australia, said in a statement about the sale.

    Since launching in December 2017, Amazon Australia now claims to offer over 125 million products.

    This is the second time Amazon Australia has held a mid-year sale, joining many retailers in marking down stock for End of Financial Year (EOFY) sales during the month of June.

    Recent research from PayPal shows that EOFY sales are the most popular times for Aussies to pick up a bargain online, alongside Boxing Day.

    That same report also revealed that while some retailers are starting to move away from markdowns, most shoppers are still driven to purchase by discounts.

    PayPal found that 68 percent of Australian consumers are always on the lookout for an online sale or discount, and half of the consumers have waited for an item to go on sale before buying it online. Among Gen Z and Gen Y shoppers, that figure increases to 73 percent and 65 percent, respectively.

    But this doesn’t have to be bad news for retailers. According to PayPal, online sales present an opportunity for brands to build awareness and reach new customers: 39 percent of consumers have bought a brand online they wouldn’t usually buy because it was on sale, and 39 percent of retailers said online sales increase revenue.

    But it’s necessary to take a strategic approach. For instance, Amazon’s biggest sales – including its Mid-Year Sale, Prime Day sale, and Black Friday and Cyber Monday sales – are all about driving app downloads and Prime subscriptions. In turn, this drives more frequent purchasing on the platform.

    According to Retail Dive, Amazon saw more than 1 million consumers use its app for the first time on Prime Day 2018.

  • Online Spending on local sites strengthens

    Online Spending on local sites strengthens

    Spending on local online sites has strengthened, helping boost the country’s total online retail sales over the three months to April by 7 percent over the previous corresponding period.

    Spending on New Zealand sites is continuing a recent strong run, seeing an 11 percent increase over the three months to April 30 compared to the previous corresponding period.

    Continued strong growth in the food, clothing, electronics and department store categories was seen as the driving force.

    “Growth in online spending on food is particularly strong and is emerging as a key reason for stronger growth rates at domestic sites versus international,” said Gary Baker, director of institutional research at Bank of New Zealand.

    Baker said the country is continuing to see softer growth rates for purchases from offshore sites, which over the last three months were only 2 percent higher than in the same period the previous year.

    “One influence is the NZ dollar, which is tracking around 7 percent lower versus the USD than it was a year ago, making offshore purchases more expensive for Kiwis,” Baker said.

    “This will reduce spending if a fall in purchase volumes more than offsets the effect of paying higher prices.”

    According to Baker, another influence on the softening growth rates from spending in offshore sites is the ongoing maturation of the online channel.

    “In recent years we have seen online growth rates ease from double-digit levels and slowly trend down,” he said. “Online growth rates still exceed those of physical stores, but the gap is reducing.”

    In some categories, however, purchases from offshore sites are continuing to grow very strongly, such as in computers and entertainment media.

    Total online retail spending over the three months to April 30 was 7 percent higher than the previous corresponding period.

    Annual online spending across the retail categories covered is running close to $4.6 billion, excluding GST.

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  • Suning invests in Jack Ma-backed retail Fund

    Suning invests in Jack Ma-backed retail Fund

    Chinese retailer Suning has invested US$129 million into Jack Ma-backed Yunfeng Capital’s third fund.

    The funding represents 61.41 per cent of a committed $210 million to the private equity firm, which is set to raise $2.5 billion and has so far received commitments from 51 limited partners (LPs).

    The company stated that the funding will give it the opportunity to “deepen its smart retail strategy, further enrich the Suning ecosystem as well as achieve financial returns”.

    The firm is a current shareholder in Jack Ma’s e-commerce giant Alibaba, and vice versa.

    The Yunfeng Capital equity firm makes calculated investments in technology, media and communications, as well as a range of other consumer sectors.

  • Uniqlo shoppers Details Leaked Online

    Uniqlo shoppers Details Leaked Online

    Uniqlo parent Fast Retailing announced hackers may have gained access to personal information of 461,091 accounts registered on the company’s Japanese shopping websites.

    The retailer said in a statement Monday the hackers may have accessed customers’ personal information, purchase history and partial credit card numbers of some of the users of its Uniqlo Japan and GU Japan online stores from April 23 to May 10 by means of list type account hacking.

    List type account hacking is when user IDs and passwords are potentially leaked from other services or sites.

    The company said it is still investigating the breach and added the number of incidents and circumstances may change during the course of the investigation.

    In the meantime, the Japanese retailer advised its online store’s customers, the number of which the company has not disclosed, to use unique passwords and to avoid using passwords used from other websites to lower the chances of hackers accessing their accounts.

    “Fast Retailing sincerely apologizes for the trouble and concern this has caused to its customers and all others involved,” the company said.

    “Going forward, the company will further strengthen its security measures and take steps to ensure safety, in order to prevent similar incidents in the future.”

    The retailer said information that was potentially accessed includes:

    • Customer name (last name and first name)
    • The customer address (postal code, address, and apartment number)
    • Customer phone number, mobile phone number, email address, gender, date of birth, purchase history, and clothing measurements
    • Receiver name (last name and first name), address, and phone number
    • Customer partial credit card information (cardholder name, expiration date, and a portion of credit card number). The credit card numbers potentially accessed are hidden, other than the first four and last four digits. In addition, the CVV number (credit card security code) is not displayed or stored.

    In its announcement, Fast Retailing said it has identified the origin of the communication from which the unauthorized logins were attempted and has blocked access. The company added it is strengthening monitoring of other access points.

    The Japanese retailer said it has already disabled the passwords for the 461,091 user IDs that were compromised and is sending individual e-mails to each person affected, requesting that they reset their password.

    Fast Retailing has also filed a report of damages regarding the unauthorized logins with the Tokyo Metropolitan Police.

    Online sales made up 9.9 percent of Uniqlo sales in Japan and 20 percent in China in the company’s first-half report. The company said overall online sales rose 30.3 percent in that report.

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  • Boomtime ahead for chatbots in E-commerce

    Boomtime ahead for chatbots in E-commerce

    New data from Juniper Research predicts consumer interaction with chatbots in retail will reach 22 billion by 2023.

    The figure represents a sharp increase over an estimated 2.6 billion interactions this year.

    According to the new research report “AI in Retail: Segment Analysis, Vendor Positioning & Market Forecasts 2019-2023”, chatbots in retail will enable effectively automated customer interactions for both online and offline vendors.

    A crucial enabler of this development will be improvements in NLP (Natural Language Processing), which will dramatically reduce the failure rate of chatbot interactions, by making them more natural and valuable for customers.

    Juniper anticipates that retailers who do not adopt chatbots will face strong challenges from more technologically-adept disruptors, who will use chatbots as an extension to the crucial omnichannel retail experience.

    The research also found that chatbots used for customer service have a strong potential to reduce costs; with deployments realizing annual savings for retailers of US$439 million globally by 2023, up from just $7 million this year.

    These potential savings will act as a key “pull” factor, given the margin pressure that many retailers are presently feeling.

    “By embracing automated customer service with chatbots, retailers can act in a more flexible and efficient way,” explained research author Nick Maynard. “The wider retail market means that chatbots are no longer a luxury, they are essential.”

    Meanwhile, sales resulting from interaction with chatbots in retail will reach $112 billion by 2023, up from $7.3 billion this year; representing an annual growth rate of 98 percent.

    The research found these sales will largely be a result of migration from other channels, rather than a new revenue stream. Accordingly, the research emphasized that while retailers must adopt chatbots for ease of use (and to reduce consumer churn), their return on investment will come from efficiencies, rather than new income.

  • Pricing Tactics to Boost Sales in E-Commerce

    Pricing Tactics to Boost Sales in E-Commerce

    More than 80% of the purchasing decision depends on price. Especially in the ultra-fast e-commerce arena where businesses showcase and change their prices every 3 to 6 hours. But before changing prices out of the blue you must know that there are certain conditions to do that. Decrease your prices to very low and you’ll leave a lot of money on the table raise them up high and you’ll end up hunting flies.

    The Importance of Pricing

    Let’s start by going through each insight down below to understand why pricing needs more attention ever than before.

    • 90% of consumers invest their time to hunt the best online deals.
    • 80% of “first-time” consumers say it’s important to be able to see and compare prices from different sellers.
    • 70% of consumers believe they’ll get a better deal online than in brick&mortar stores.
    • 50% of consumers will purchase products left in shopping carts if those products are offered at a lower price.

    As you can see pricing is very, very important.

    Let’s get into some tactics on how you can approach pricing to increase your profits margins and sales numbers.

    Charm Pricing

    Have you ever heard about the power of 9s? That is the strategy, where you end a price with a “9” instead of a “0” on the price tag. This is a very common tactic especially in physical stores, but you may also come across it in online stores as well.

    Here’s why! Our brain perceives $50.00 and $49.99 as different values. According to consumer perception, $49.99 seems closer to $40.00, which is cheaper than $50.00 and product prices ending with a “9” are considered “the” deal to not miss.

    Prestige Pricing

    This is suitable for high-end, luxury, emotion-triggering products, where you should apply round prices such as $500, $750, opposite of charm pricing. Setting round prices on products which evokes emotions converts better.

    A study by Kuangjie Zhang and Monica Wadhwa, claims that “A rounded price ($100.00) encourages consumers to rely on feelings when evaluating products, while a non-rounded price ($98.76) encourages consumers to rely on reason. When a purchase is driven by feelings, rounded prices lead to a subjective experience of feeling right,”

    Bundle Pricing

    This psychological trick makes online shoppers search for getting an extra item with the purchased product at the same price. This presents a golden opportunity for the wise e-commerce seller. To reduce this pain and encourage online shoppers to buy your products, use bundling, set your prices accordingly and get these customers to reach deeper into their pockets.

    For example, Amazon has an advanced bundling strategy; it always suggests two or three related items that you may want to purchase at the same time. Most of the online shoppers jump onto these types of offers because they’re amazed by the simplicity of purchasing them all at the same time. Bundle two or three items together with a single price set an adequate discount, and you can start selling less-popular items.

    What’s Next?

    All of the tactics above are some part of the common approaches laid out from the people of Prisync. To learn more about other pricing strategies take the time to read most of their blog posts. When you’ve successfully implemented a strategy, you’ll either address your customer’s emotions or logic. Either way, you will start winning and boosting your conversion rates, sales, and eventually revenue. And if you want to automate that, we recommend you start using a pricing software sooner before its too late.

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  • Tigerlily launches local e-commerce Platform

    Tigerlily launches local e-commerce Platform

    Resortwear brand Tigerlily is expanding further into New Zealand. It has just unveiled a New Zealand-specific e-commerce site, and will soon open a new store at the upmarket Newmarket precinct, which is currently undergoing redevelopment.

    The Newmarket Tigerlily physical store will feature the brand’s new store design, which came into play around six months ago.

    “Our stores used to be a real habitat, almost like lifestyle stores in that they were created to look like a bazaar – there was lots of furniture and loads of things on the walls,” explained Gareth Connolly, merchandise and supply chain director at Tigerlily.

    “Now we’ve done some decluttering – we wanted the product to be a hero. The Sydney Westfield store is a lot cleaner than what you may have seen before. Now, we embellish stores with just a beautiful living palm tree, instead of a bird cage and map of the world. It’s got a cleaner atmosphere … you’re not distracted by the rug, cushions and maps. It’s just about telling people that this is what we sell – not furniture.”

    Capturing the customer

    Meanwhile, the brand is also working on increasing its omnichannel presence in Australia, with plans to introduce several new services to customers, including click-and-collect, ship-from-store, endless aisles and floor-to-door.

    According to Connelly, floor-to-door is available for customers who enter a Tigerlily shop but find that the item they want is not available in-store in their size. It can be sent to them instead.

    “I don’t think Australians have done click-and-collect that well yet, but that’s the next thing we’re working on. We want to make sure there’s no reason for a customer to not get a product tomorrow,” he said.

    “If there’s not a particular item in our Bondi store for our customer, we’ll get it to her somehow. That’s an expectation created internationally and we’re not that good at it because we’re such a big country. Getting something from Sydney to someone to Perth is hard, but doing floor-to-door or ship-from-store will make things easier for us.”

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  • Alibaba ranked China’s most valuable brand by BrandZT

    Alibaba ranked China’s most valuable brand by BrandZT

    Alibaba’s rise to the top resulted from growing its brand value by 59%, year-on-year, to $141 million. In the past five years, Alibaba has outperformed the WPP/Kantar Top 100 overall, with its brand value climbing 136%, compared to the Top 100’s 92% rise.

    Alibaba’s number-one spot for 2019 “reflects the growth of a brand which has contributed to transformational changes in the Chinese market,” the Top 100 publishers said.  In BrandZ’s “Brand Power” metric of brand equity, Alibaba’s score was particularly strong “for being ‘Meaningful,’ suggesting the brand known for coining the term ‘New Retail’ has successfully created closer connections with its consumers.”

    The Top 100 results show how digitization and the growing sophistication of Chinese consumers is creating a unique marketplace of products and services available with unprecedented speed and convenience – long a sweet spot for Alibaba. Innovators in AI, e-commerce, New Retail performed strongly.

  • 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.”

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  • Amazon doubles Quarterly Profit

    Amazon doubles Quarterly Profit

    Global online marketplace Amazon has grown its net income 118 per cent during the first quarter of 2019, from US$1.6 billion to US$3.56 billion ($2.28 billion to $5.07 billion).

    The three months to March 31 2019 also delivered operating income of US$4.4 billion ($6.27 billion), compared to US$1.9 billion ($2.7 billion) the year prior. These increases come off the back of a 17 per cent growth in sales to US$59.7 billion ($85.09 billion).

    However, while the company grew its North American operating income over the period to US$2.28 billion ($3.25 billion), its international performance led to a US$90 million loss ($128.2 million) – though this can be positively compared to the same period last year, during which Amazon’s international business lost US$622 million ($886.5 million).

    Research firm eMarketer estimates that Amazon holds almost half of the US e-commerce market, which is set to grow 20 per cent to US$282.5 billion ($402.6 billion).

    EMarketer principal analyst Andrew Lipsman said the quarter was fuelled by the strength of Amazon’s cloud and advertising business, which continues to inflate the company’s margins.

    “While AWS’s momentum continues unabated and is clearly the bigger driver of this profit story at the moment, the advertising flywheel now appears to be in full effect for Amazon and will only be a bigger part of the growth story over the near term,” Lipsman said.

    Amazon’s AWS segment saw net sales grow 40 per cent year-on-year, from $5.4 billion to almost US$7.7 billion ($7.7 billion to $10.97 billion), contributing US$2.2 billion ($3.14 billion) in income to the business’ quarterly results.

    Looking ahead, Amazon notes it expects second quarter sales to land between US$59.5 and US$63.5 billion ($84.8 and $90.5 billion) – an annual growth of between 13 and 20 per cent.

    The business is leaving room for its operating income to decline over the period, however, expecting between US$2.6 and US$3.6 billion ($3.7 and $5.1 billion) – compared to the US$3 billion ($4.28 billion) earned in the second quarter of 2018.

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  • Forever 21 China Closes Down Online Stores

    Forever 21 China Closes Down Online Stores

    Fashion retailer Forever 21 will close its Chinese e-commerce website amist indications of possible physical store closures to come.

    While an April 25 notice on the brand’s home page confirms the e-commerce shutdown, the retailer has declined to issue any official comments, despite the confirmed shuttering of one physical outlet and major discount sales reportedly underway in other stores. It has been operating in the territory since 2011.

    Tmall and JD have released statements indicating that the fashion retailer will cease trading on their platforms from today onward.

    The brand’s last remaining store in Taiwan closed last month, while stores in other markets have reportedly been closing down as well, including France. Forever 21’s multi-storey flagship in Hong Kong closed in 2016, with the space being taken over by Victoria’s Secret. It opened a smaller store on Mong Kok in its place.

    A report in Retail Dive suggested that the possible withdrawal accords with a slowing retail environment within China for international goods, pointing to the withdrawal of Amazon from the territory after investing in the market for 15 years.

    “Overall this is a big and tough market to compete for non-Chinese brands, given strong domestic competition and unique consumer demands,” said China practice lead at global public policy consultancy Access Partnership Xiaomeng Lu. “Domestic e-commerce giants such as Alibaba, JD.com, and Pinduoduo compete fiercely against each other as well as edge out smaller brands.

    “Chinese customers are used to shopping on apps, expect low-cost same-day shipping, and tend to have little brand loyalty.”

    The report also quotes Euromonitor International analyst Arianna Zhai as commenting “Alibaba and JD alone have taken about 70 per cent market share. The strong presence and different strategic positions of both e-commerce retailers leave limited room for others.”

    “The reasons for the shutdown of operations are unclear, but it is likely that Forever 21 has struggled to cut through in what is an increasingly competitive market,” said GlobalData Retail MD Neil Saunders. “Although the Chinese retail market is still growing strongly and offers enormous potential, the proliferation of Western and indigenous brands means it can be hard to stand out from the crowd. There are also concerns that activity is slowing down, although growth remains well above that available in Western markets.”