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Tag: greater china

  • Apple sales plummet in Greater China

    Apple sales plummet in Greater China

    Plummeting Apple sales in China have prompted the company to warn shareholders of a US$5 billion hole in its first-quarter revenue forecast. “While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China,” Apple CEO Tim Cook wrote in a letter to investors.

    “In fact, most of our revenue shortfall to our guidance, and over 100 per cent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad,” he said.

    The Apple sales decline in China, Hong Kong and Taiwan would most likely exceed $4.3 billion, roughly equal to the company’s overall drop in revenue.

    Previously, Apple had forecast revenue of between $89 billion and $93 billion. Now it expects the figure will be closer to $84 billion, but notes final figures will not be calculated for several weeks.

    Cook said the rising tension between the US and China played a part in the declining sales, with traffic to Apple stores in the region declining as the quarter progressed. This, in turn, led to lower than expected iPhone revenue in the region, which was compounded by the stalling iPhone upgrades seen in other markets.

    “We believe there are other factors broadly impacting our iPhone performance, including consumers adapting to a world with fewer carrier subsidies, US dollar strength-related price increases, and some consumers taking advantage of significantly reduced pricing for iPhone battery replacements,” Cook explained.

    In response to these trends, the business is seeking to make it easier to trade in used iPhones at Apple stores, as well as allow payments to be made over a longer period.

    “This is not only great for the environment, it is great for the customer, as their existing phone acts as a subsidy for their new phone,” Cook said.

    Despite the slowing traffic, Apple’s other categories grew over the period, with the company’s wearables category growing by almost 50 per cent due to the popularity of Apple Watch and AirPods.

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  • America’s bebe stores to enter Greater China

    America’s bebe stores to enter Greater China

    US-based global specialty retailer of contemporary women’s apparel and accessories – bebe stores, inc. has announced that it has signed a strategic cooperation agreement with Longgoal LLC, a leading Shanghai-based agency of international high-end brands.

    In a press statement, it said the agreement includes a five-year exclusive license to open between 60 and 150 retail and wholesale bebe points of distribution in Greater China, Hong Kong, Macau and Taiwan. The first boutique is expected to open in the summer of 2016.

    “As we continue to expand our international footprint, our entrance into Greater China is a significant opportunity to accelerate that growth and reinforce bebe as a global lifestyle brand for women. We look forward to working closely with the Longgoal team, who have a proven track record of success and operational experience in introducing high profile retail brands to this key market,” said Jim Wiggett, CEO of bebe stores, inc.

    As a part of the agreement, Longgoal will open a minimum of 60 points of sale in Mainland China, including free standing boutiques and bebe shop-in-shops and identify third party retailers in certain provinces of China to sublicense the brand for retail operations. Longgoal is currently identifying potential locations in Shanghai and Beijing, including flagship boutiques. After the five-year exclusive term, Longgoal retains an option for an additional 10 year partnership with bebe based on performance.

    “bebe is truly an iconic affordable luxury brand and one that we are honored to have the opportunity to introduce to women across Greater China in a variety of ways. As style and design are among the top priorities for sophisticated woman in China, we are confident that bebe’s bold design and contemporary fashion will appeal to the ever-changing lifestyle of the confident and sexy modern Chinese woman,” said Madam Celine Chen, Chairwoman of Longgoal LLC.

    bebe plans to locally design and develop up to 30 per cent of the product for China to create trendy fashion styles to reflect the local fashion and suit the bebe woman’s lifestyle in China. In addition, the company anticipates expanding further into licensing agreements for handbags, shoes and intimates in the initial partnership phase.

    bebe complements Longgoal’s current portfolio of retail brands, including GANT, the original American Sportswear brand launched in China nearly a decade ago, and Thomas Pink, the luxury British shirt brand under the LVMH Group.

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  • Tod’s rues anti-graft program

    Tod’s rues anti-graft program

    China mainland’s anti-corruption campaign has taken its toll on Italian luxurious footwear model Tod’s’ Hong Kong gross sales.

    So, too, the altering demographic of mainland vacationers, which rival trend manufacturers have additionally blamed for softening gross sales.

    Tod’s says mixed China gross sales fell 15 per cent noting buyer visitors in its shops, and spending, skilled a “giant lower” within the quarter.

    Larger China gross sales accounted for 20.1 per cent of the corporate’s complete international turnover of euro 257.7 million, up one per cent on the identical quarter in 2014. China gross sales have been thus euro 53.9 million.

    Gross sales in Italy accounted for 34.eight per cent of its complete gross sales.

    Tod’s additionally famous in its report that rents are “too excessive” in Hong Kong.

    The group has 79 of its personal outlets in higher China, together with 67 within the mainland, 11 in Hong Kong and one in Macau. It has one other 25 franchised shops throughout the area.

    This yr the corporate expects to open new shops in Chongqing and Zhengzhou underneath its personal possession and one other, franchised, outlet in Sanya.

  • Burberry bemoans Larger China problem

    Burberry bemoans Larger China problem

    Higher China has put a dampener on the in any other case stellar success story of revamped luxurious model Burberry.

    The corporate had earlier posted an 11 per cent rise in income to £2.5 billion and a seven per cent improve in pre-tax revenue to £456 million within the yr to March.

    However on Friday is warned that a beneficial fluctuation in foreign money would increase its backside line by £50 million would truly solely in reality ship £10 million, because of an increase in worth of the pound towards the Hong Kong and US dollars.

    Buyers have been spooked, maybe extra by the size of a monetary miscalculation which was by some means out by £40 million in simply 11 days as by any concern over the worth or efficiency of the model as an entire. Shares shed six per cent of their worth within the day’s buying and selling.

    Final yr’s pro-democracy protests in Hong Kong, together with the much-publicised shift within the demographic of mainland Chinese language vacationers hit Burberry arduous, given the territory accounts for 10 per cent of its international gross sales.

    So a gross sales drop in Hong Kong measured within the mid single digits can simply impression the underside line. So, too, wallet-tightening in China’s mainland. So whereas Burberry had anticipated some cushioning from beneficial trade price tendencies, additional evaluation since has apparently revealed much less constructive developments.

    The weakening of the euro has elevated what luxurious manufacturers confer with as ‘gray market gross sales’, the place inventory is purchased from wholesalers or shops in Europe on the market at a revenue in China and Southeast Asian markets. This prompted the model to extend Europe costs, and scale back them in Asia, affecting income at each ends, however defending the integrity of its provide chain.

    One vendor noticed that decreasing the 2016 steerage had harm Burberry, hinting the share worth influence was an unfair judgment.

    “Beneath, the numbers learn nicely and are forward of forecasts and the corporate is doing lots to make the enterprise sustainable,” one London supplier advised UK information media.

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  • Magento companions with Razorfish in Higher China

    Magento companions with Razorfish in Higher China

    Magento, an e-commerce platform owned by eBay’s Enterprise division, on Thursday stated it has partnered with Razorfish in Larger China to function a gateway for retailer progress within the booming Asia-Pacific market.

    As a part of the brand new partnership, Magento will present Razorfish in Higher China with market improvement instruments and assets to construct Magento Enterprise Version storefronts for retailers in search of to swiftly seize shopper gross sales and capitalize on the huge market alternative.

    Magento offers e-commerce software program and platform options worldwide. It provides merchandise comparable to Enterprise Version, Group Version in addition to e-commerce answer for small companies. Magento’s Enterprise Version is an e-commerce answer for giant companies which helps retailers to drive extra visitors to their shops, convert browsers into consumers, and increase on-line income.

    “Social commerce has quick grow to be the spine of brand name constructing in Higher China. China is now main the world in social commerce, ours is a area getting used as a check marketplace for main international manufacturers creating leading edge social commerce options,” stated Alex Misseri, SVP APAC, Head of Retail & Commerce, Razorfish. “Magento’s open structure, flexibility and modular strategy to customization provides the differentiated shopper experiences that manufacturers search for when establishing commerce operations in Higher China.”

    On-line purchasing in China is rising quicker than anybody initially anticipated. Forrester’s newest on-line retail forecast for China tasks that the nation’s on-line market (B2C and C2C) will move USD670 billion by 2018.

    Digital Dopamine, Razorfish’s 2015 International Digital Advertising Report, exhibits that ecommerce is an plain powerhouse in Larger China. The overwhelming majority of Chinese language shoppers would like to do all their buying on-line. Shopper choice to buy on-line in China is nearly double that of US counterparts. The research exhibits 82 % of Chinese language buyers want they might make all their purchases on-line, in comparison with simply 49 % of these within the US.

    Magento boasts the most important open commerce ecosystem of greater than four,300 Magento licensed professionals and 260 confirmed Answer Companions worldwide. Powering greater than 240,000 websites globally, it stays the preferred platform available on the market based on a 2015 international commerce share report by Hivemind. eBay Enterprise, together with Magento, was additionally acknowledged because the main ecommerce platform for the 2015 Web Retailer Prime 500

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