Tag: Hong Kong

  • 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.

  • Tim Ho Wan Bangkok opens

    Tim Ho Wan Bangkok opens

    Famous Hong Kong dim sum restaurant Tim Ho Wan has opened its first Thailand eatery – in downtown Bangkok.

    Tim Ho Wan Bangkok is located in the Terminal 21 shopping centre at Asoke. When it opened its doors this week it drew queues of hundreds of people eager to try the famous dim sum creations of founder Chef Mak.

    Affectionately referred to as “the world’s cheapest Michelin-starred restaurant”, Tim Ho Wan Bangkok is offering meals it says are even cheaper than at its original branch.

    The restaurant features a menu of 25 dim sum dishes, including the four most popular: baked bun with barbecue pork, pan fried radish cake, fluffy steamed egg cake and vermicelli roll with pig’s liver – all priced between 80 and 120 baht ($2.20 and $3.35).

    Chef Mak opened the first Tim Ho Wan in Mongkok in 2009, a small eatery with just 30 seats located in a virtual back alley. It was later awarded a one star Michelin rating.

    He launched the venture after turning his back on a career with a three star fine dining restaurant at the Four Seasons Hotel in Hong Kong called Lung King Heen.

  • K11 mall founder to build 17 more centres

    K11 mall founder to build 17 more centres

    The founder of the K11 mall concept which debuted in Hong Kong and then was replicated in Shanghai is now planning 17 more centres in Mainland China.

    Chinese billionaire Adrian Cheng founded the nonprofit K11 Art Foundation in 2010,  and subsequently opened the K11 shopping centre in the heart of Kowloon, atop the Tsim Sha Tsui railway station.

    Like its successor in Shanghai, the K11 mall features frequently-changing art installations and exhibitions, merging art gallery with a retail and dining space. Works by artists including Olafur Eliasson, Damien Hirst and Yoshitomo Nara can be found in the malls.

    A spokesman for Cheng’s business New World Development Company says the grand plan is to have 19 K11 spaces – mostly retail centres but also offices.

    Cheng is ranked among the world’s top 20 billionaires aged under 35 with an estimated worth of US$1.4 billion.

  • Johnny Rockets to focus on Southeast Asia

    Johnny Rockets to focus on Southeast Asia

    US burger chain Johnny Rockets says Southeast Asia – particularly Vietnam and Thailand – will be the focus of its global expansion in the short term.

    Based on Johnny Rockets’ “all-ages appeal and current success in the region” the company is seeking area developers for expansion into both new markets.

    “The popularity of American culture and cuisine in Southeast Asian countries is the driving force behind our current success and growth in these markets,” said James Walker, president of operations and development with Johnny Rockets.

    “Due to Thailand’s and Vietnam’s customer base and proximity to other Southeast Asian countries where we operate, we see huge potential for the brand in those countries, and we are actively seeking franchise partners looking for development opportunities.”

    In addition to its Southeast Asia strategy, Johnny Rockets is also seek a partner in entering Hong Kong. Earlier this year, Johnny Rockets announced a 100-restaurant agreement in mainland China, the largest expansion in the company’s history.

    Walker says Southeast Asian consumers have “enthusiastically embraced” American restaurant franchises for years, and that has proven true for Johnny Rockets. The brand currently operates in Indonesia, the Philippines and Malaysia through 14 restaurants and has eight more in development.

    He says Johnny Rockets’ signature American menu, including cooked-to-order hamburgers, crispy fries, hand-spun shakes and sandwiches, coupled with its “Americana experience” appeals to Asians.

    “What we have found is that as the region’s middle class booms, that population segment is looking for and willing to spend more on premium burger concepts. They certainly find that with Johnny Rockets. They also discover and relish our experience and entertainment value.”

  • Roche Bobois to open in Hong Kong

    Roche Bobois to open in Hong Kong

    French luxury furniture retailer Roche Bobois is to open its first store in Hong Kong.

    The store will be the company’s eighth in Greater China and comes soon after the brand’s debut in the southern Chinese city of Chongqing.

    The new showroom will open in September in the ground floor of Horizon Plaza at 2 Lee Wing St.

    Roche Bobois works closely with renowned designers such as Ora Ito, Cédric Ragot, Sacha Lakic, Christophe Delcourt and Stephen Burks and with Haute Couture fashion houses such as Jean Paul Gaultier, Sonia Rykiel Maison and Missoni Home.

    It offers a broad range of exclusive made-to-order designs, manufactured with a high level of customisation in small European workshops. Its collection includes premium-quality furniture, including sofas, armchairs, cocktail tables, dining chairs, sideboards, beds, wardrobes, storage and accessories including lighting, cushions and rugs.

    The company has 250 showrooms worldwide.

    In Chongqing, Roche Bobois opened in the high-end furniture mall Redstar Macalline in the Yubei district, in the city’s northeast.

    In a taste of what Hongkongers can expect, the fit out features marble floors and a Paris skyline on the wall.

  • Hong Kong pop-up mall aims to ease tensions over mainland shoppers

    Hong Kong pop-up mall aims to ease tensions over mainland shoppers

    From London’s trendy Shoreditch to a downtown revitalisation project in Las Vegas, pop-up shopping malls have become all the rage among urbanites keen to sample craft beer and buy designer sneakers.

    But, in Hong Kong, plans for the first temporary mall are designed to assuage popular anger with visiting shoppers from mainland China — derided by locals as “locusts” — rather than cater to the whims of hipsters.

    As political tensions between Hong Kong and Beijing have risen, the semi-autonomous Chinese territory has seen a growing backlash against the thousands of “parallel traders” who come from the mainland every day in search of cheap baby milk, jewellery and other goods they can sell back home for a profit.

    Now two of Hong Kong’s biggest property developers have teamed up with lawmakers to turn a car park near the Chinese border into a mall made out of shipping containers that is meant to serve mainland visitors attracted by the city’s low-tax shopping.

    Wong Ting-kwong, one of the legislative council members promoting the project, said it would “reduce the nuisance brought by excessive mainland tourists and relieve the traffic inside the city”.

    Mr Wong is a member of the main pro-Beijing political party in Hong Kong, which has frequently come under attack for failing to defend residents’ interests in the face of pressure from the central government in China.

    He hopes that the mall, which will be about the size of two football pitches, according to a recently submitted planning application, will open for business early next year.

    The land for the pop-up mall is jointly owned by Henderson Land and Sun Hung Kai Properties, which are controlled respectively by Hong Kong billionaires Lee Shau-kee and the Kwok brothers.

    SHKP said that if the plan was approved by the government, they would lease the land for a nominal HK$1 ($0.13) per square metre to a charitable foundation, which would run the pop-up mall on a non-profit basis for two years.

    After that period, the developers expect to remove the shipping containers and start construction of a permanent mall on the same site.

    The initiative has succeeded in grabbing the headlines in Hong Kong, but those who have organised protests against mainland shoppers are far from convinced it will solve their problem.

    Ray Wong, a member of HK Indigenous, a group that campaigns against mainland Chinese influence in Hong Kong, said that while the pop-up mall could alleviate some pressures, it could also disturb local residents if it generated too much traffic.

    “I think the root of the problem is that mainlanders don’t trust Chinese goods so they have to turn to Hong Kong for guaranteed quality,” he said.

  • Chinese shoppers feel safer online

    Consumers across Southeast Asia and Greater China feel safer paying in a brick and mortar environment as opposed to online; sole exception is China

    According to the inaugural MasterCard Safety and Security Index, consumers across Southeast Asia and Greater China cited identity theft and ATM-related fraud as the top two security concerns when it comes to electronic payments.

    Some 42 per cent of consumers in Southeast Asia (Indonesia, Malaysia, Philippines, Singapore Thailand, and Vietnam) were most concerned with ATM-related fraud such as a stolen card, card cloning or skimming. In the Greater China markets (China, Hong Kong and Taiwan), this figure was 31 per cent.

    But the biggest surprise was in confidence in shopping online. The Index showed that in general, consumers across Southeast Asia, and the markets of Taiwan and Hong Kong still feel safer paying in a bricks and mortar environment than buying online. China differed, being the only market where consumers felt paying online was safer than in a physical store; even more so than in Singapore.

    Almost every consumer polled in the Greater China markets had made an online payment in the past year. Consumers in China (62 per cent) particularly favored the use of digital wallets in online electronic payments over those in Hong Kong (14 per cent) and Taiwan (29 per cent).

    Consumers across Southeast Asia (35 per cent) and Greater China (32 per cent) were almost as equally concerned about identity theft in relation to data breaches. This includes personal data such as bank details, personal IDs, addresses, and signatures that are stolen or compromised through websites. In both regions however, it appears that these concerns do not directly stem from consumers’ own personal experiences but rather, as a result of the perceived severity of fraud based on what was reported in the media.

    MasterCard chart1

    Meanwhile, the Index also reinforced that banks continue to play a critical role in ensuring payment safety and security for consumers in Southeast Asia. This is both, because of the high levels of trust consumers place in banks as well as the reliance that consumers have on banks to help them resolve issues that crop up in this area.  Banks are often the first line of defense and recourse for the affected consumer – nearly half of all consumers in Southeast Asia who experienced ATM fraud first approached their card-issuing banks for advice.

    “The fact that most cardholders have a primary relationship with their banks, has an obvious and deep-rooted correlation to their sentiment, around who they trust most when it comes to ensuring the safety and security of electronic payments,” said Ari Sarker, oo-president, Asia/Pacific, with MasterCard.

    “This was emphatically reflected in the feedback from all the markets in Southeast Asia and Greater China. However, in Singapore in particular, in addition to banks, consumers also placed significant trust in the government, which is a natural outcome given the country’s strong regulatory environment and overall reputation around safety and security.”

    None of the respondents surveyed in Southeast Asia placed any trust in local websites, suggesting that there is still a lot of work to be done by local eCommerce merchants to ensure that they meet global security standards for payments and build consumer confidence on this front.

    In Greater China, aside from banks and governments, merchants were also seen to have a growing responsibility in ensuring payment safety and security, with 28 per cent of consumers in these markets going to merchants as their first recourse in seeking resolution for payment safety and security issues. Furthermore, merchants in these markets were instrumental in solving 40 per cent of all online electronic payment disputes.

    These and other key findings of the MasterCard Safety and Security Index will be discussed at the MasterCard Global Risk Leadership conference in Singapore on August 26 – 27. The 20th edition of this conference will gather global payment risk leaders to share best practices in fighting fraud together, as an industry. The conference demonstrates MasterCard’s commitment in helping partners and customers fight fraud using the latest tools, processes, and technologies so there is no one weak link in the payments ecosystem.

    The survey was carried out across in six markets in Southeast Asia (Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam) as well as three markets in Greater China (China, Hong Kong, and Taiwan). A total of 6600 consumers and 100 merchants were polled online and face-to-face between January and May 2015 on questions relating to the payments security landscape, payments in brick and mortar and online, safety and security payment concerns and experience with payment fraud, among others.

  • RedMart Singapore raises $26.7m

    RedMart Singapore raises $26.7m

    Singapore online grocer RedMart has raised more capital and appointed a former Amazon executive to drive regional expansion.

    RedMart Singapore has previously indicated an interest in expanding into Vietnam, Thailand, Manila, Hong Kong, Indonesia, Malaysia and Taiwan – but it has not disclosed which markets it sees as a priority with its newly secured funds.

    RedMart has secured US$26.7 million in a round of funding tapping existing shareholders Garena, Softbank Ventures Korea, Visionnaire Ventures and Facebook co-founder Eduardo Saverin. It has also attracted a new investor – Far East Ventures, part of Singapore property developer Far East Organization which is diversifying its investment portfolio eyeing startups and tech ventures.

    The funds will be used to expand into regional markets outside Singapore, a move to be led by new recruit Colin Bryar, a former VP of US eCommerce giant Amazon.

    RedMart Singapore increased sales to US$9.43 million in 2014, but massive investment in infrastructure saw its losses balloon to $29.4 million – a not uncommon scenario of eCommerce startups.

    Bryan will oversee engineering, marketing and operations, taken over from co-founder Vikram Rupani, who takes on the title of President of RedMart.

  • Telent to open Malaysia stores

    Telent to open Malaysia stores

    Chinese outdoor apparel brand Telent says it plans to set up retail points of sale in Malaysia as a first step in a broader Southeast Asian push.

    Telent specialises in the design, manufacture, marketing, brand management and distribution of branded outdoor apparel, footwear and equipment. It is China’s second largest outdoor wear brand measured by retail sales value.

    Telent is undertaking an IPO in Malaysia, issuing 103.39 million new shares at ten US cents each.

    The first new store will open in Kuala Lumpur with other Southeast Asian stores will follow as early as the third quarter of this year, in part funded with the funds raised in the IPO

    Telent Group executive director Hui Tang Tat says the product sales mix percentage in outdoor apparel and outdoor footwear respectively posted 43.8 per cent and 49.5 per cent sales growth last year, while equipment products grew by a more modest 6.7 per cent.

    As of October, Telent had 817 retail points of sale and 23 network distributors across China.

    “The Malaysian market is competitive and building our presence there will offer us a platform and opportunity to expand in this region,” Hui said during a media conference.

    “Perhaps in the next five to 10 years, we can go down the road to tap other Asian markets as we want our brand to be globally recognised,” he said.

  • London retailers revel in Chinese influx

    London retailers revel in Chinese influx

    Hong Kong retailers wondering where those cashed up, big spending Mainland Chinese tourists have been unzipping their wallets… here is your answer: London.

    According to the Retail Gazette, spending by Chinese Visa card holders rose 44.5 per cent in the UK in July – outstripping spending by tourists from France and Australia.

    Inbound tourists from China now account for more spending than those from any country except the US which retains top spot.

    Retail Gazette reports the growth in Chinese spending was strongest in supermarkets (up 79 per cent) and in high street stores (up 40 per cent).

    Shopping accounted for 40 per cent of Chinese tourists’ spending in the UK

    “China is one of the fastest growing sources of tourism income for the UK and it looks set to become an important driver of growth for the sector,” said Kevin Jenkins, UK & Ireland MD with Visa Europe.

    “Spending on cards has seen a significant boost as Chinese tourists travel to the UK, confident in the use of plastic overseas.

    “With shopping a top attraction for Chinese travellers, UK retailers are likely to consider additional ways to appeal specifically to this audience,” Jenkins said.

    “Pre-travel marketing, multilingual staff and new product lines in store may be three things we see more of.”

  • Global Brands in talks with Alibaba, JD.com

    Global Brands in talks with Alibaba, JD.com

    Global Brands Group is discussing a possible “strategic alliance” with Chinese eCommerce companies Alibaba and JD.com.

    The two e-tailers are declining to comment on the matter, but based on comments by Global Brands CEO Bruce Rockowitz, Bloomberg reports the alliance “could involve online sales of brand-name children’s wear, among other products, through Alibaba’s Tmall and JD.com, and co-operation offline”.

    Rockowitz said a formal announcement is likely later this year.

    “We are working with JD and Alibaba on a strategic alliance, joint venture,” he said. “It’s a relationship or joint venture together that can create a solution online, offline and mobile that none of us can do by ourselves.

    “Both of them want to do something. They don’t have the content, just platforms, but they want to go to the next level.”

    The comments came in the wake of Global Brands’ first full year results announcement earlier this week when it reported stronger margins as it continues to shed non-performing brands in favour of higher end products.

    Last December, Global Brands announced a joint venture with David Beckham and his business partner Simon Fuller. The joint venture, Seven Global, focuses on the continued development of the brand around David Beckham as well as on creating large scale brands in partnership with a select number of high‐profile sports and entertainment icons. The venture will cover all major consumer product categories.

  • The Lanesborough Reopens After 18-Month Renovation

    The Lanesborough Reopens After 18-Month Renovation

    The Lanesborough, the latest masterpiece hotel of Oetker Collection, has opened its doors following an extensive 18-month renovation project by late interior designer Alberto Pinto. Located just moments from Knightsbridge, Buckingham Palace and Hyde Park, The Lanesborough is London’s finest residence and one of the city’s most iconic hotels. The new hotel emulates the style and impeccable service of its French sister Le Bristol while staying true to the hotel’s strong British roots.

    Having closed its doors on 20th December 2013, the Grade II* listed building was taken back to its shell and has been totally transformed by Cabinet Alberto Pinto. The renovation honours the building’s architectural heritage as one of London’s most revered Regency landmarks. The hotel comprises 93 rooms and suites including The Royal Suite, which extends to seven bedrooms. Executive Chef Florian Favario oversees The Lanesborough’s new restaurant, Céleste, hailing a new culinary era for the hotel. Strengthening the relationship with Le Bristol, Favario is the former Head Chef of Le Bristol’s three-Michelin starred restaurant Epicure and the protégé of Chef Patron Eric Frechon who will oversee the menu. French inspired, the cuisine is modern and imaginative, using only the best of British ingredients. Daily afternoon tea is a traditionally British affair, with a Tea Sommelier on hand to guide guests through an extensive tea menu.

    To add to the extensive services offered to all guests, 23 private butlers are on call day and night to care for the individual needs of every guest, while a fleet of 14 luxury cars including a Rolls-Royce Phantom can chauffeur residents around London in impeccable style. Each one of The Lanesborough’s seven new private dining rooms possesses a character and atmosphere of its own – from the intimate feel of The Wine Cellar to the palatial setting of The Belgravia.

    With a sizable collection of Cuban and pre-Castro cigars as well as rare Cognacs dating back to 1770, The Garden Room is the ideal setting for a night of relaxed sophistication. With a celebrated walk-in humidor and knowledgeable team, this garden terrace is a favourite amongst cigar connoisseurs. For cocktails, The Library Bar offers a touch of grandeur in a warm and welcoming setting. A live pianist plays each night from 6-9pm creating an intimate, club-like atmosphere.

    A team of artisans using age-old techniques, often used in decorating Palaces, were entrusted to deliver a distinctive form of luxury, befitting for The Lanesborough. The craftsmen were all specialists in their fields and include embroiderers, crystal specialists, cabinetmakers, bronzers, lacquerers, gilders, mirror specialists, and makers of decorative trimmings. Over 300 people were involved in the day-to-day transformation of the hotel’s 93 rooms, allowing for exceptional time and care to be taken into each detail. Everything is handcrafted to perfection, with over 2,000 hours of stenciling in the public areas of the hotel as well as 5,500 original stencils showcased throughout guest rooms and within The Library Bar.

    Particular focus has been paid to the ceilings through restoring original detailing such as ceiling roses, coffering, cornicing and fresco painting. Award-winning British artisans in plaster produced a unique plasterwork design for each room upon Cabinet Alberto Pinto’s request and control. 2,100 books of 23 ¼ carat gold leaf were used to elaborately dress the ceilings of public areas and guest rooms, reimagining the Regency period and reflecting the heritage of the building. The majority of suppliers used for the renovation are British with over 95% made bespoke for The Lanesborough. Every trimming and finishing is made to measure, before going through specialist procedures to meet hotel safety standards.

    The Royal Suite has been reinstated as The Lanesborough’s largest suite, extending across 4,485 square feet, with seven bedrooms and bathrooms, two living rooms and a dining room exuding exquisite taste, impeccable British craftsmanship and attention to period detail. The Lanesborough Suite carries every hallmark of its distinguished designer, with four bedrooms and five bathrooms, two living rooms and a dining room as well as a kitchen and private entrance for the butler.

    Cabinet Alberto Pinto imagined guest rooms being grouped into five design schemes, reflecting the Regency period, with each group consisting of three rich jewel colour ways to create warmth, harmony and comfort. 14 different types of bed canopies hang within the rooms, with over 3 million hand stitches and bespoke tailoring using the highest quality fabrics. Each marble block for the new bathrooms was individually chosen and acute attention was given to ensure that each slab was perfectly book matched. World-renowned British perfumer Roja Dove has created bespoke fragrances and bathroom amenities for every guest room.

    The Lanesborough is recognised as a building of special architectural and historic interest with a Grade II* listed status.  ReardonSmith acted as Lead Design Consultant and Architect with responsibility for coordinating the renovation of the hotel in close collaboration with the interior designer, Cabinet Alberto Pinto.

  • Coca Cola’s China rise

    Coca Cola’s China rise

    Coca-Cola has been a symbol of Western commercialism since its founding in the late 19th century, with one of the world’s most highly recognizable logos.

    Forty years ago, it was unthinkable that Coca-Cola would ever be available in what is now one of the brand’s biggest markets: Communist China. The story of its entry into China is not only inspiring, but can also still provide valuable lessons to foreign brands trying to enter the world’s fastest-growing market today.

    Coca-Cola’s factories were nationalised in 1949 under order of Chairman Mao Zedong, who deemed the drink a ‘bourgeois concoction’. After Deng Xiaoping opened the Chinese economy in the late 1970s, the company was eager to return. Its rival, PepsiCo, had just won the bid for the Soviet Union, putting pressure on Coke not to lose the world’s other communist giant.

    It all started when Peter Lee, now known as the first President of Coca-Cola China, received a call from former Coca-Cola Chairman J. Paul Austin asking him to try to launch the brand in China. Lee got to work right away, telexing the China National Cereals, Oils and Foodstuffs Corporation (currently known as COFCO). After a six-month wait, he was finally sent a message saying he was “welcome to come to Beijing for negotiations”.

    Once in China, Lee managed to convince his Chinese counterparts to sign an agreement under the premise that since the country was finally open to tourists from all over the world, “we have a product we believe most tourists will love.” They signed the agreement on Dec. 13, 1978, though the deal was not publicized until after US President Jimmy Carter announced the mutual recognition of the US and China and the re-establishment of diplomatic ties between the two nations two days later on December 15, 1978.

    As the first foreign FMCG-company to enter the Chinese market, Coca-Cola faced various challenges. The company was limited to selling only to tourists with their first shipment in 1979, while under strict supervision of Chinese officials. Coca-Cola, however, wanted to reach Chinese consumers and was punished with a 12-month ban after holding an illegal street promotion in Beijing in 1980. After the restriction was eased, Coca-Cola built its first production facility on Chinese soil, which was wholly owned by COFCO. In 1988, the company had another breakthrough when it launched its first Shanghai cooperative joint venture. From then onwards, it could be said that Coca-Cola truly had entered China.

    After Coca-Cola’s entry to China, its subsidiary brands soon followed in its footsteps. The most successful brand was Minute Maid, which entered China in 2004 with the flavors orange and grapefruit. This decision was very deliberate: Although the Chinese didn’t know Minute Maid very well, it had a strong reputation in the global beverage industry. And by positioning Minute Maid as a “global brand”, it was easier to generate buying confidence among Chinese consumers.

    The Coca-Cola Company started a revolution in China, as well, by focusing not on the brand name Minute Maid in commercials, but on the flavor of the product itself: “Fruit Pulp Orange.” This decision to name the product benefit before the brand name turned out to be a great success: Minute Maid became the first billion-dollar brand to emerge in the Chinese market for Coca-Cola. The success of “Fruit Pulp Orange” also came at a cost—it sparked a huge number of copycats and counterfeits. The lesson learned was that the IP-holder Coca-Cola needed to keep an eye out for counterfeit products in order to protect its trademark.

    Coca-Cola is a model for “first-in-market advantage”. It was the first foreign brand to move into China, and is therefore ingrained in the collective Chinese memory and consumer market.

    This paved the way for other well-known brands: Coke’s main competitor, PepsiCo, entered China in 1981. PepsiCo’s current CEO, Indra Nooyi, remembers her first time in China for PepsiCo where she saw local Chinese eating Lay’s potato chips with chopsticks. Nooyi believes that corporations that want to be successful in China need to behave in a way that also benefits the country. PepsiCo signed a Memorandum of Understanding with the Chinese Ministry of Agriculture in 2011 to “promote sustainable agriculture projects and accelerate the development of the Chinese countryside”. In order to fulfill its promise, PepsiCo has opened eight sustainable demonstration farms in order to educate Chinese farmers how to grow sustainably. Also, they invested in partnerships with more than 10,000 rural Chinese households in the last 15 years.

    In 1995, Red Bull followed Coke’s lead by forming an alliance with the Thai-Chinese Reignwood group to enter China. Today, Red Bull has five manufacturing hubs in China: Beijing, Hubei, Jiangsu, Guangzhou and Hainan, with over 10,000 employees. Its share of the vitamin drink market is also increasing by 20 per cent every year. Just like Minute Maid, Red Bull was able to leverage its global brand to make a successful launch in China. This has also come with the same problem of counterfeit products, but Red Bull maintains it is taking the problem seriously by monitoring the Chinese market attentively and checking cans regularly to protect its trademark from any infringements.

    The five key lessons for building a beverage brand in China are:

    1. Get a ‘first-mover-advantage’ in your beverage category.
    2. Leverage your global brand equities.
    3. Form strategic partnerships that bring scale.
    4. Behave in a way that benefits ‘China’.
    5. Get local with production facilities on Chinese soil.

    Coca-Cola’s entry to China can serve as a model for all FMCG companies that want to enter China. Besides this, it reveals a country with a dynamic market that requires patience, expertise, and adaptability, but in exchange offers the opportunity to grow beyond a company’s imagination.

  • After 165 years, Lane Crawford looks forwards

    After 165 years, Lane Crawford looks forwards

    To mark its 165th birthday, luxury department store Lane Crawford invited its community of leading and emerging brands and creative talents to share their vision of the future.

    Their perspectives are transformed into a series of exclusive designs, capsule collections, artistic installations and uniquely curated product showcases that engage customers to imagine what the future may bring.

    With more than 600,000 square feet of retail space, Lane Crawford has 11 points of sale across Hong Kong, Beijing, Shanghai and Chengdu. With an online store, purpose built for China while also shipping globally, Lane Crawford is China’s first luxury omni-channel fashion retailer. Featuring the largest designer portfolio across Womenswear, Menswear, Cosmetics, Home and Lifestyle, and Fine Jewellery in the region, Lane Crawford showcases more than 1000 international brands.

    Innovative Beijing-based architecture and design firm People’s Architecture Office presents its vision of the future of modern living through giant twisting metal tubular structures that customers can climb inside to explore a whole other landscape. Hong Kong-based architectural design studio Sky Yutaka has created a mesmerising kinetic installation where the future is a haunting rendition of machine-made beauty, featuring robotic rain flowers that gently furl and unfurl their petals in response to a flowing stream of water. Musical wunderkinds Mimi Xu and Rosey Chan continue to inspire the future of sound with their distinctive take on classical electronica music accompanied by a stunning multisensory visual narrative. Other creative luminaries such as Li Lihong, Angel Chen and Alan Chan have also contributed their visions of what the world will look like in 165 years.

    Limited Editions

    The store has also collaborated with an array of brands to offer a selection of exclusive editions as part of the 165 celebrations. Womenswear designer and Chairman of the Council of Fashion Designers of America, Diane Von Furstenberg has redesigned her signature wrap dress with a Chinese twist. There are also capsule collections from T by Alexander Wang, MSGM, Ms Min and Chictopia Fine Jewellery exclusives come from Nathalie Melville and Tasaki, and there is an exclusive watch design from Mad.

    Menswear designers including Haider Ackermann, Neil Barrett, Paul Smith, Rick Owens, Uma Wang and Ziggy Chen have been invited to develop the Silk Capsule collection, incorporating the traditional Chinese fabric in refreshing styles.

    In addition, there are limited editions from a number of cosmetic and lifestyle brands. Shanghai Tang presents an exclusive lacquer box set with its signature women’s fragrance collection, including a personalised engraving service. Valmont offers the Elixir Tribute to Lalique in a sublime red lacquer box topped with Lalique crystal.

    On the local front, Tom Dixon brings another global exclusive to the party with the launch of his new coffee range, “Brew”, and the maverick British product designer also curates the “Living Room of the Future” installation, which offers a vision of home entertainment in years to come. Another iconic British brand, Fortnum & Mason has created the exclusive Lane Crawford 165 tea blend special edition. Other home products include a limited-edition “165” scented candle from L’Objet; a specially made game table by Chinese architect and designer Naihan Li; a digital printed rug from Dutch brand Moooi; neon light décor with Chinese characters meaning ‘prosperity’, ‘fortune’ and ‘home’ from Italy’s Seletti; and an Asia-exclusive launch of a new lamp in taupe and brass from Anglepoise.

    Lane Crawford will hold its 165th Anniversary Celebrations Party at the IFC Mall store on September 9. The festivities continue with a weekend of shopping privileges and anniversary-themed prizes across all Lane Crawford stores in Hong Kong from September 11 to 13.

    Who Is Nick Wooster

    Having worked with highly respected fashion brands and renowned retailers around the world, street style guru Nick Wooster demonstrates his flair for fashion and eye for detail by co-curating a dedicated space for modern men’s wardrobe essentials at Lane Crawford IFC Mall, where Wooster + Lardini, his eclectic collaboration with Italian brand Lardini, is also showcased.

    The dapper Wooster will also make a personal appearance at Lane Crawford ifc mall for an exclusive styling session and cocktail party on August 13.

  • Prada Japan flourishes

    Prada Japan flourishes

    Prada Japan has posted a strong sales lift in the first half thanks to a burgeoning number of inbound tourists.

    Sales in the Japanese market grew by 12 per cent year on year current exchange rates and by five per cent on constant exchange rates. Tellingly, growth was stronger in the second quarter than in the first.

    In its half year results issued Friday, Prada reported net revenue for the six months to July 31 of euro 1.823 billion, a four per cent increase over the corresponding period in 2014. Wholesale sales fell 14 per cent, reflecting Prada’s strategy of rationalising its network of retail partners in favour of selling from its own stores.

    While Japan was a standout market, sales in Asia Pacific fell, offset by a positive rate exchange effect.

    “Hong Kong and Macau remain the main drivers affecting the performance in this geographical area,” Prada said.

    At current exchange rates, sales increased 15 per cent in both the Americas and in the Middle East.

    The European market has continued to grow with revenues up at both current exchange rates up 12 per cent and constant exchange rates up 11 per cent, thanks to a steady flow of tourists together with a recovery in consumption by domestic customers.

    By brand, Prada recorded five per cent growth at current exchange rates which is entirely attributable to the exchange rate effect, mainly because of the adverse economic situation in the Asian market.

    Miu Miu continues to grow with revenues up at both current exchange rates up 19 per cent and constant exchange rates up six per cent, showing an acceleration in the second quarter of the year. Church’s achieved sales growth of 19 per cent, with the volumes trend also remaining largely positive. Car Shoe has performed broadly in line with prior year.

    Prada Group CEO Patrizio Bertelli said sales in the first half of 2015 reflect an economic and exchange rate landscape that remains “rather volatile with the continuing weakness of important markets like Hong Kong and Macau and the uncertainty that is looming on other Asian markets”.

    “Our distribution structure, which has achieved an appropriate global presence, together with our awareness of the specific needs of the various markets, has enabled us to compensate for the drop in sales in Asia Pacific thanks to growth on markets which are currently more dynamic like Europe and Japan. We will continue to prioritise measures intended to sustain long-term growth focusing on our manufacturing tradition and innovation, as again confirmed recently by the success of our latest collections.”