Tag: Shanghai

  • Shanghai launches 5G trial district

    Shanghai launches 5G trial district

    The City of Shanghai has launched 5G trials in the Hongkou district, which also has the distinction of having a gigabit broadband network.

    The 5G trial, backed by China Mobile, involves providing full coverage of the district.

    During a commencement ceremony for the trial, a 5G video call was placed using the Huawei Mate X foldable 5G smartphone.

    The city plans to deploy over 10,000 5G base stations by the end of the year, and over 30,000 by 2021.

    As part of the trials, the city also plans to provide support for over 100 companies developing 5G-related application scenarios.

    The wide-scale trial follows Huawei’s deployment of trial 5G services at Shanghai’s Hongqiao Railway Station in February.

    Other Chinese cities are also investing in taking an early lead with 5G deployments, including Chengdu in the Sichuan province and Wuhan in Central China.

    The latter city has deployed a trial 5G network encompassing over 100 5G base stations to explore developments in autonomous vehicles, drones and satellite-based positioning, the report states.

  • Fat Brands China to open six stores More

    Fat Brands China to open six stores More

    Fat Brands China has announced the development of six new co-branded Fatburger and Buffalo’s Express restaurants throughout Shanghai with Bloomfield.

    The new locations will build on Fat’s existing presence in China, where the company currently operates multiple successful locations in both Beijing and Shanghai.

    “When expanding internationally, it’s important to identify a partner we can trust with our iconic brand,” said CEO of Fat Brands Andy Wiederhorn. “Markets such as Shanghai, where demand and crowds are large, magnifies this need even more. We’re thrilled to open more restaurants with the Bloomfield team. They’ve done an excellent job maintaining the integrity of our brand while providing a deep understanding of the Chinese consumer.”

    Fat Brands currently owns seven restaurant brands that have more than 300 locations open and 200 under development around the world.

  • Shanghai La Chapelle Fashion seeking profitability

    Shanghai La Chapelle Fashion seeking profitability

    Shanghai La Chapelle Fashion warns it will report an operating loss for last year, for the first time in its trading history.

    In an update to a profit warning issued last December, the company says total revenue dropped by about 2.5 per cent last year and costs accelerated.

    “Revenue from La Chapelle and Puella, which are our main women’s wear brands, is estimated to have decreased by approximately 11.94 per cent and 13.35 per cent year-on-year, respectively, and the growth in sales of the women’s wear brand Candie’s and that of children’s wear and men’s wear brands could not make up for the decrease in sales of La Chapelle and Puella,” the company said in a regulatory filing.

    With a slowdown in consumption growth and a decline in customer flow at physical stores, La Chapelle’s sales at brick-and-mortar stores in the second half of last year were lower than expected. As a result, revenue in the third and fourth quarters decreased by 7 per cent and 6 per cent, respectively, year on year.

    The company also reported a continuing decline in revenue from concessions at department stores. Last year, that revenue was estimated at about RMB4.893 billion (US$729 million), down 7 per cent, and department stores’ share of total sales fell from 50.4 per cent to 48 per cent year on year.

    In the second half of last year, the company closed down 179 loss-making and inefficient stores, and launched a joint-venture “franchise and trusteeship cooperation business model”. It ended the year with 9269 stores.

    The company estimates it will post a net loss attributable to shareholders of about RMB156 million, representing a decrease in net profit attributable to shareholders of the company of RMB654 million (US$23.256 million).

  • Karma queues up 3 vehicles for Shanghai auto show

    Karma queues up 3 vehicles for Shanghai auto show

    Karma Automotive is prepping three vehicles — a concept car developed with Italian design house Pininfarina, the next-generation Revero electric car and the Karma Vision concept – that it hopes will propel the brand in a new direction.

    They will debut next month at the Shanghai auto show.

    “Taken together, Karma’s Shanghai Big Three represents our transformation from an old-value car manufacturer to a company building long-term value in part by becoming an open-platform luxury high-tech automotive incubator,” Karma CEO Lance Zhou said in a statement.

    Karma Automotive, headquartered in Irvine, Calif., was founded after the demise of Fisker Automotive, created by noted designer Henrik Fisker. The company’s sole product was the gasoline-electric Fisker Karma luxury car. Chinese supplier Wanxiang Group bought Fisker Automotive in a bankruptcy auction and put a revised version of the Karma back into production as the Revero in 2016.

    Karma plans to introduce a revised version of the Revero this year. The car is sold through a network of 19 stores in the U.S., Canada and Chile.

    The company released little information about the three vehicles scheduled for the Shanghai auto show, which opens April 16.

  • China retail earnings up 8.5% during new year holiday – ministry

    China retail earnings up 8.5% during new year holiday – ministry

    China’s retailer and catering enterprises earned over 1 trillion yuan ($148.3 billion) during the Lunar New Year holiday, defying an economic slump to rise 8.5% from last year, the country’s commerce ministry said late on Sunday. The increase was down to the rapid growth in sales of new-year gifts, traditional foods, electronic products and local speciality products over a six-day holiday period ending on Saturday, the Ministry of Commerce said in a notice on its website.

    Domestic tourism during the new year break generated total revenues of 513.9 billion yuan, up 8.2% on the year, with the number of trips rising 7.6% to 415 million, the official Xinhua news agency said on Sunday, citing official data. ($1 = 6.7426 yuan)

  • From Gucci to Dolce & Gabbana: racism in fashion continues?

    From Gucci to Dolce & Gabbana: racism in fashion continues?

    Luxury fashion is all about breaking codes, creating a new, irresistible message that captivates consumers. But some of the globe’s top brands have raised eyebrows with designs that have seemingly racist undertones. The latest instance of that was Italian fashion designer Gucci, which produced a black wool balaclava jumper with an oversized collar that pulls over the chin and nose. It includes a slit where the mouth is, ringed with what look like giant red lips.

    Its similarity to blackface prompted an instant backlash from the public and forced the company to apologise publicly on Wednesday.

    Gucci also withdrew the offending garment from sale on websites and stores. It said the incident would be “a powerful learning moment for the Gucci team and beyond”.

    But the question persists: how can fashion houses that thrive on detail miss such critical social cues?

    Prada similarly withdrew a monkey bag charm that recalled blackface in December, saying it “abhors racist imagery.” And Dolce & Gabbana issued a video apology after one of the designers made insulting remarks about Chinese people in a private chat discussing the questionable depiction of a Chinese model in a campaign.

    “Luxury brands used to be able to get away with provocative and eccentric ads that push the boundaries of our society and culture in the name of being creative and cutting edge,” says Qing Wang, a professor of marketing at Warwick Business School in the United Kingdom.

    “However, a long list of recent incidents have caused public outrage, suggesting that era is now gone, or that luxury brands have lost touch with public sentiment. What used to be considered ‘creativity’ has now turned into ‘bad taste’ or even ‘racist’.

    He cited other fashion fails that evoked stereotypes, including Dolce & Gabbana’s “slave sandal” in its spring-summer 2016 collection and a recent Burberry campaign for the Chinese New Year that was compared to Asian horror films.

    While many of these incidents have caused immediate social media backlashes, the longer-term impact will take time to measure, and will depend on the brands’ reaction and future sensitivity.

    Dolce & Gabbana was forced to cancel its Shanghai runway show after the insulting remarks were publicised, top Asian influencers backed out of campaigns and Chinese websites dropped their line – a warning sign from a region that holds great sway in global luxury sales.

    The blackface images have particular resonance in the United States, where the governor of Virginia and his attorney general have been caught up in a scandal over blackface incidents from their college days in the 1980s. The offensive depictions are reminiscent of travelling entertainers from the 19th century, who would paint their faces black to portray African characters in a ridiculous and mocking fashion, spreading racial stereotypes along the way.

    Italian sociologist Michele Sorice at Rome’s Luiss university says that the evocation of blackface by Italian fashion houses signals “a mixture of good faith, and ignorance”. He notes that Italian society still isn’t fully aware of the racial charge in some words and images.

    “I imagine that they don’t truly think they are racist,” Sorice says. “I think they didn’t have the instruments to understand that these images are archetypes that were used to contrast the concept of blackness and make them ridiculous. I think that many simply don’t know. It is a cultural issue.”

    Paolo Cillo, a marketing professor at Milan’s Bocconi University, says the designer’s intent may have been taken out of context and amplified, and she credits Gucci with acting swiftly to quell the controversy.

    “I wouldn’t stigmatise fashion,” Cillo says, comparing the fashion designer process to artistic pursuits like filmmaking, painting or music. “There are artists in the world of culture that did more outrageous things and no one ever said a thing. There is a perception that fashion is ephemeral, or commercial. But from my point of view, it is not. It reflects the times, like all other artistic forms.”

    While the fashion world has been at the forefront of addressing sexual norms – Gucci has been redefining genderless dress codes under Alessandro Michele – it has lagged behind other industries in taking on social issues such as racial tolerance, climate change or women’s empowerment, according to Larry Chiagouris, a marketing professor at Pace University, US.

    “It is not clear why this is,” Chiagouris says, “but the evidence clearly points to the fashion industry’s need … to catch up with the rest of the world.”

  • Pronovias enters China with Shanghai store opening

    Pronovias enters China with Shanghai store opening

    Spanish bridalwear firm Pronovias has launched its first Chinese location in Shanghai. The 500sqm store is opening in luxury shopping centre Plaza 66, which hosts a range of high-end brands including Chanel and Dior. The move sparks off a greater strategy for the region, in which the Shanghai location will serve as Pronovias’s flagship.

    The brand was founded by BC Partners explicitly to tackle the difficult Chinese and American markets. China is the world’s largest producer of wedding dresses, and local custom is often to hire rather than buy the dress.

    The firm is simultaneously moving to expand in the US, with eight openings planned for the American East Coast.

  • New commercial landmark set to open at Huaihai Road

    New commercial landmark set to open at Huaihai Road

    Chinese mall operator Bailian is merging two disused department stores on Shanghai’s Huaihai Road in partnership with urban renewal firm URF to create Theatre X. The two malls on the city’s prime retail street were formerly trendy shopping destinations. Huating Isetan on 527 Huaihai Road M was the first Japanese Isetan outlet in China, while Bailian’s No.1 Department Store next door once enjoyed great popularity – both commercial gems of the 1990s.

    The new Theatre X shopping mall will merge the two sites, according to an announcement, and offer “interactive and immersive experiences” to consumers. The 25,000sqm property will offer popular international brands, shared spaces for pop-ups, and exhibition stages for Ted Talks – with developers expecting the venue to become a “pilgrimage site for trendsetters.” It will feature a 40m-high waterfall and giant digital screens.

    Theater X is set to open in September, with further developments in the immediate vicinity expected to follow.

  • Retail project “Taikoo Li Qiantan” Shanghai opens door

    Retail project “Taikoo Li Qiantan” Shanghai opens door

    Swire Properties and Lujiazui Group officially announced the naming of their joint-venture retail project as “Taikoo Li Qiantan”. Located in the heart of the Pudong Qiantan International Business District, this project embodies Swire Properties’ “Taikoo Li” concept, which is well-known for its distinct open-plan, lane-driven architectural design.

    Taikoo Li Qiantan will offer a gross floor area of approximately 1.3 million sq ft (120,000 sqm) and was created in accordance with a ‘naturalism’ design concept; blending elements found in nature with contemporary architecture. The project is a major component of a larger mixed-use development, which will also feature a 56-floor Grade-A office tower – “New Bund Centre” as well as a five-star luxury hotel – “New Bund Shangri-La Hotel”, both invested by Lujiazui Group.

    Qiantan is a new international business district and a rapidly developing hub for art and culture, business, entertainment, residential and world-class sporting facilities. The area is fast-becoming known for its high quality of life and excellent accessibility thanks to the well-developed transportation infrastructure. Qiantan is already home to many multinational corporations and global institutions, including New York University Shanghai and Wellington College International Shanghai. The project will be directly connected to the Oriental Sports Centre metro station which comprises three metro lines – offering direct access to major residential and commercial districts including Lujiazui, Xujiahui, People’s Square and Disneyland.

    Mr Xu Erjin, General Manager of Shanghai Lujiazui Group said, “Following the success of The Bund and Lujiazui, we are confident that the Qiantan International Business District will become yet another remarkable CBD, and our plan is to create a ‘Lujiazui 2.0’, which builds on the successful elements from Lujiazui.

    “Qiantan is quickly becoming a landmark area in Shanghai, and Taikoo Li Qiantan will be a valuable addition to this district, offering unparalleled retail, F&B and leisure experiences to local communities and the greater Shanghai population.”

    Mr Han Zhi, Director-Retail of Swire Properties, said, “Taikoo Li Qiantan marks our third ‘Taikoo Li’ project in Mainland China building on the success of Taikoo Li Sanlitun in Beijing and Sino-Ocean Taikoo Li Chengdu. We are delighted to bring this distinct retail experience to Shanghai. By once again combining local elements with the Taikoo Li concept, we are confident that our second major investment in Shanghai, after the successful launch of HKRI Taikoo Hui in 2017, will become a new retail landmark for residents and visitors.”

    Taikoo Li Qiantan has commenced the leasing process, and is scheduled to open in phases beginning from the end of 2020.

  • Taoyuanming Shanghai tests automated stores

    Taoyuanming Shanghai tests automated stores

    Swedish-Chinese firm MobyMart is expanding its automated store format in China in collaboration with Shanghai fruit retailer Taoyuanming. Two stores are operating, one in Hefei and one outside Shanghai. While expansion in the region is the firm’s priority this year, its long-term sights are set on Europe and North America. According to brand co-founder Per Cromwell, MobyMart initially opened a corner-store-format mobile vending platform for coffee, which evolved into MobyMart, a mobile platform for “vending everything”.

    “We found a very visionary fruit retailer in the suburbs of Shanghai, Taoyuanming, and basically they had physical stores but they wanted to have unmanned stores,” said Cromwell.

    “We saw that we didn’t actually need to make too many adjustments to our existing system because basically what we had to do was pre-pack all the fruit — we needed to have fixed units and not have people buying by weight … and when we opened it up to the public it was an instant success.”

    The store carries around 50 SKUs at a time.

    Taoyuanming is reportedly so pleased with the results that two more automated stores are scheduled to open early this year, which may be followed by staffless stores if successful.

    The firm’s strategy is to provide a platform to small retailers.

    “If you are for instance a fruit store outside Shanghai and you want to expand from a few stores to 10 stores in your neighbourhood, then you can’t really start buying BingoBoxes because it’s quite complicated and expensive technology,” says Cromwell.

    The MobyMart model relies on customers scanning their product, while cameras and sensors serve as a back-up. This  “very simple technology” allows for opening “a lot of stores at a very low cost,” Cromwell says.

    “It won’t be 100-per-cent staffless because you still need someone circulating the store and making sure everything’s fine and restocked, but one person in one day can operate eight to 10 stores depending on how spread out they are. So you have much more efficiency with the staff you do have.”

    He added that AI and big data will help store operators know what products will be needed at what locations and at what time.

    “If we have a request of some sort, that is something that will also solve the last mile problem,” he said.
    The whole store and system is expected to retail for around US$15,000. MobyMart also has a prototype mobile store with automated driverless vehicle capacity – although its rollout is restricted by legislation around the technology.

  • SimplyBrand blockchain platform launches token pre-sale

    SimplyBrand blockchain platform launches token pre-sale

    SimplyBrand, the world’s first blockchain-based e-commerce verification platform, launched a token pre-sale this week with strategic partner Cobinhood, a cryptocurrency service platform. By integrating blockchain, AI and crowdsourcing, SimplyBrand aims to end online counterfeiting through a safe and trustworthy digital commerce ecosystem.

    With the expansion of e-commerce, brands are finding it more difficult to trace counterfeit goods and prove authenticity in the highly fragmented internet space, leading to massive revenue losses and often damaging brand reputation. In addition, consumers continue to suffer from fraudulent traders of copied products.

    “For the past years, SimplyBrand has used data intelligence to successfully protect brand image and drive business results for Fortune 500 and renowned clients, including Asus and popular luxury brands,” said Shanghai-based Kaufman Chang, the founder and CEO of SimplyBrand.

    “As we usher in a new era powered by blockchain and AI technology, we believe the whole retail economy will benefit from this organic platform, which truly makes every purchase matter.”

    Chang says SimplyBrand is already a well-established company with a proven business model and trusted customers using big-data anti-counterfeiting services. Now it is expanding its expertise in machine learning and AI to a more innovative, comprehensive solution.

    “We are able to identify and verify products sold on all the major e-commerce platforms with high efficiency based on data including images, prices, locations, product description, etc. An immutable “blacklist” of counterfeit product will then be created on the blockchain for public reference.”

    Chang says this allows brands to remove offending product pages responsively and continuously help to improve AI accuracy. Within this ecosystem, crowdsourced participants who report fake products through the SimplyBrand app can earn token rewards to purchase brand privileged items or sell them on exchange, while brands can buy tokens from the exchange and use them to buy brand-protection services.

    “As a result, a virtuous cycle of loyal consumers, companies and other enforcement agencies will be created to eradicate the online scourge of counterfeit products for good.”

    SimplyBrand was co-founded by Chang and Ronnie Ng, both alumni of University of Chicago Booth School of Business. Chang is a startup entrepreneur with ventures in cloud computing software and big data security software and Ng is an entrepreneur and marketing specialist.

  • CapitaLand forms JV to acquire prime CBD in Shanghai for RMB2.75 billion

    CapitaLand forms JV to acquire prime CBD in Shanghai for RMB2.75 billion

    CapitaLand has formed a 50:50 joint venture with an unrelated third party to acquire approximately 70% of Pufa Tower in Shanghai, China, for RMB2,752 million (about S$546.3 million). The operational office property has been identified as a seed asset for a value-add fund which CapitaLand is setting up to invest in commercial real estate in key gateway cities in Asia. The acquisition also marks the Group’s first office property in Shanghai’s core Lujiazui central business district (CBD) in Pudong New Area.

    Pufa Tower is 34-storey tall with three basement levels of car park. Post transaction, CapitaLand and its joint venture partner will own levels 8 to 19 and levels 21 to 32 with a total gross floor area (GFA) of 41,773 square metres (sq m), as well as 61 car park lots with property title. Pufa Tower’s ground floor lobby and refuge floor on level 20 are co-owned with Shanghai Pudong Development Bank, which owns the rest of the building.

    Lujiazui CBD, where Pufa Tower is located, is Shanghai’s most coveted office location for financial and professional services companies. With an unabating demand for office space and limited new supply, Lujiazui CBD commands the highest office rents in the city. In view of a sharp decline in Pudong’s office supply from 2019, office rents in Lujiazui CBD are expected to continue trending upwards over the next few years.

    Mr Lucas Loh, President (China & Investment Management), CapitaLand Group, said: “We are pleased to enter Shanghai’s core Lujiazui CBD soon after securing our third Raffles City development in the city. Shanghai is the top investment destination in China, with strong end-user demand for commercial properties. The acquisition of Pufa Tower, an operational asset, will immediately contribute to the Group’s recurring income. It will also strategically diversify CapitaLand’s commercial portfolio into a key CBD to capture new growth, while entrenching the Group’s leadership as the foreign developer with the largest portfolio under management in Shanghai.”

    Mr Loh added: “Continual high demand for quality commercial properties in China’s top tier cities, coupled with low supply, have made the renewal of ageing commercial assets a compelling investment strategy in these markets. Pufa Tower is a prime asset to be seeded into the commercial value-add fund we are raising. We see significant potential in enhancing its asset value by upgrading specifications, tenant mix and improving operational efficiencies. By tapping on third party equity, we are driving capital efficiency to provide CapitaLand with the financial impetus to further accelerate our growth.”
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    Mr Puah Tze Shyang, Chief Investment Officer, CapitaLand China, said: “Pufa Tower has not had a major renovation since its completion in 2002. While the building is properly maintained, the interior finishes offer room for improvement. After acquisition, we will focus on extracting greater value from the property through a comprehensive asset enhancement initiative. Leveraging CapitaLand’s asset enhancement capabilities and track record, we are confident of rejuvenating Pufa Tower in ways that will increase and maximise the efficiency of this well-located property.”

    With more than 1,300 multinational companies headquartered in Shanghai, the city continues to power ahead as China’s financial and business centre. In 2017, Shanghai became the first Chinese city to top GDP of RMB3.0 trillion1, of which contribution from Pudong accounted for about 30%2. The continual expansion of Shanghai’s financial sector is expected to drive the demand for prime office space in Pudong2.

    Including this latest acquisition, CapitaLand now owns/manages 21 commercial properties in Shanghai that span close to 1.9 million sq m in GFA. Shanghai is part of the five core city clusters under CapitaLand’s China strategy, which comprises Beijing/Tianjin, Shanghai/Hangzhou/Suzhou/Ningbo, Guangzhou/Shenzhen, Chengdu/Chongqing/Xi’an, and Wuhan.

    In 2018, CapitaLand actively reconstituted its portfolio to enhance its readiness to seize new growth opportunities. During the year, CapitaLand divested close to S$2 billion worth of assets in China, including a group of companies that held 20 non-core retail assets. CapitaLand subsequently redeployed the capital into a mixed-use site Chongqing, one mixed-use site and two residential sites in Guangzhou, as well as a stake in Shanghai’s tallest twin towers – the Group’s third Raffles City development in the city – through Raffles City China Investment Partners III.

  • Shanghai Tang goes back to its roots

    Shanghai Tang goes back to its roots

    Shanghai Tang, recently acquired by Chinese entrepreneur Chen Danxia and Lunar Capital, goes back to its roots with the appointment of Victoria Tang-Owen, the daughter of the visionary founder David Tang, as Creative Director.

    Together with the appointment of Victoria to rebuild on her father’s legacy, the brand will continued to be led by the CEO Maurizio De Gasperis, former Managing Director of the brand.

    The headquarters will remain in Hong Kong, and has just welcomed a new General Manager of Global Retail, Elisabetta Bazzini, with extensive experience in Asia working with a number of luxury fashion companies including Gucci, DFS, Versace and Max Mara.

    Leveraging the heritage of the Chinese luxury brand, Victoria is set to reinterpret Shanghai Tang’s unique brand aesthetics.

    Shanghai Tang is the first Chinese authentic contemporary luxury brand founded in 1994 by Sir David Tang, and thereafter under Richemont’s ownership for almost two decades.

  • Louis Vuitton personalisation service launches in Asia

    Louis Vuitton personalisation service launches in Asia

    Luxury retailer Louis Vuitton is offering a personalisation service for a selection of men’s ready-to-wear items in a limited number of global stores. The My LV World Tour Louis Vuitton personalisation service offers clients the opportunity to customise their purchases with a variety of patches and embroideries inspired by vintage travel labels and varsity lettering of the kind Gaston-Louis Vuitton used to adorn his own luggage. The service was previously limited to leather goods.

    The patch themes include world-famous cities and heritage LV graphics, some of which will be available seasonally as limited-edition items.

    The Louis Vuitton personalisation service is available in only eight Asian stores: Hong Kong’s Canton Road and Pacific Place; Shanghai’s Plaza 66; Beijing’s Shin Kong; Japan’s Omotesando and Shinsaibashi; Singapore’s Marina Bay Sands and Seoul’s Shinsegae Main.

  • Ikea China biggest project revealed

    Ikea China biggest project revealed

    Swedish furniture group Ikea will build a US$1.2 billion, 430,000sqm shopping complex in Shanghai, to be completed by 2022. The new Ikea China centre will house an Ikea store and an additional 120,000sqm in retail area, hosting more than 300 businesses. It will also include 60,000sqm of office space.

    The move represents the largest single investment the firm has made in one location, and is its sixth complex to be announced or built in China. It will be constructed near the Hongqiao airport as the Shanghai Linkong Project.

    Ikea has completed three Livat-branded shopping centres in China, and has 26 stores across the country. Two other shopping center projects have been announced within the territory.