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Tag: Shanghai

  • Lanvin Group Narrows First-Half Loss to €34.6 Million as Store Closures Bite

    Lanvin Group Narrows First-Half Loss to €34.6 Million as Store Closures Bite

    Shanghai-based Lanvin Group narrowed its first-half adjusted EBITDA loss to €34.6 million as store closures and restructuring outpaced a 12.9 per cent revenue drop to €100.8 million.

    The New York-listed luxury group cut its adjusted EBITDA loss from €52.2 million a year earlier, achieving its first period since listing where operating cuts exceeded top-line decline. The prior-year base excludes Italian tailor Caruso, which the company sold in February to Abu Dhabi-backed MondeVita.

    Management closed 23 directly operated stores during the six months to June 30, bringing its active boutique network down to 151 sites. Over the past 18 months, the company has eliminated 74 stores from a peak of 225, cutting its physical footprint by a third to curb overhead.

    Mixed fortunes across four fashion houses

    St John overtook the namesake maison to become the group’s largest revenue contributor, generating €35.5 million. While that represented a 10.5 per cent decline in euros, sales fell roughly 5 per cent in US dollars, helped by a 31 per cent jump in e-commerce. Chief commercial officer Mandy West, promoted in March, will roll out two capsule collections during the second half.

    Austrian skinwear label Wolford delivered €31.0 million, down 6 per cent. Direct-to-consumer sales slipped 2 per cent while e-commerce expanded 22 per cent, lifting gross margin four percentage points to 60 per cent following the resolution of earlier supply chain bottlenecks. Marco Pozzo took over leadership of the brand in February.

    Revenue at flagship house Lanvin slid 17.9 per cent to €22.9 million, making it the group’s third-largest unit. Barbara Werschine took charge as chief executive in May following stints at Hermès and Eric Bompard, while designer Peter Copping presented his winter 2026 collection in Paris. Footwear brand Sergio Rossi remained the weakest unit, tumbling 28.6 per cent to €10.9 million after artistic director Paul Andrew departed in January and the business phased out third-party manufacturing contracts.

    Asset-light transition across global operations

    Chinese luxury groups that expanded through European acquisitions have spent the past two years paring down overhead to adjust to weaker global wholesale demand. Greater China generated 8.1 per cent of Lanvin Group’s sales last year, leaving the company heavily exposed to European and American department store channels where foot traffic has softened. Trimming company-owned real estate while shifting brands toward licensing mirrors the defensive posture adopted by mid-tier European fashion houses.

    Chairman Zhen Huang expects the broader corporate transformation to wrap up before the end of the year. The group is now preparing second-half wholesale deliveries and expanding asset-light franchise partnerships across Sergio Rossi and Lanvin.

  • Asia-Pacific Takes 42.5 per Cent of Global E-Commerce Market Heading to $19.8 Trillion

    Asia-Pacific Takes 42.5 per Cent of Global E-Commerce Market Heading to $19.8 Trillion

    Asia-Pacific captured 42.5 per cent of the global e-commerce market in 2025, leading an industry projected to reach $19.83 trillion by 2035. The worldwide sector stood at $7.65 trillion in 2025 and is tracking toward $8.42 trillion in 2026, driven by mobile internet adoption and direct-to-consumer digital channels.

    China, India, and Southeast Asia anchored the regional share, outpacing North America at 24.3 per cent and Europe at 20.1 per cent. Electronics and media formed the largest single product category globally, generating $1.98 trillion in 2025, while fashion and apparel climbed at an 11.3 per cent annual rate.

    Mobile Checkouts and Direct Sales

    Consumer shift to mobile devices altered checkout dynamics across major platforms. Mobile internet access passed 5.5 billion users in 2025, pushing retailers to redesign storefronts around single-screen purchase funnels. Data from platform operator Shopify showed 73 per cent of transactions took place on mobile devices, helping reduce cart abandonment below 55 per cent.

    Brand-owned direct-to-consumer platforms generated $1.42 trillion in 2025, accounting for 18.5 per cent of total e-commerce revenue. Retailers spent more than $22 billion on artificial intelligence recommendation engines during 2024 to lift conversion rates by 15 to 25 per cent. Marketplace platforms retained the largest transaction volume, with projections pointing to 10.6 per cent annual expansion through 2035.

    For retailers across Asia, these numbers reflect a structural transition from basic marketplace storefronts to proprietary apps and conversational commerce tools. Brands that relied entirely on third-party aggregators five years ago are redirecting capital into unified backends that handle social shopping, mobile web, and offline inventories together.

    Payment Infrastructure and Regulatory Hurdles

    Instant payment networks accelerated transaction volumes throughout emerging markets. India’s Unified Payments Interface processed more than 14 billion transactions monthly by late 2024, while digital wallets accounted for over half of all online payments globally.

    Operating costs and compliance mandates continue to squeeze vendor margins. Last-mile logistics represented 41 per cent of total supply chain expenses, amplified by urban fuel and labor costs. Tightening data protection rules, including India’s Digital Personal Data Protection Act, added compliance expenses equivalent to two to five per cent of digital marketing budgets.

    Cross-border sellers now face tighter platform vetting as international agencies track counterfeit goods, which totaled $509 billion in worldwide trade. The next operational test comes as national customs authorities implement revised digital tax rules across regional trade corridors through 2027.

  • Toyota to Build Next Lexus EV in China Ahead of Japan Launch

    Toyota to Build Next Lexus EV in China Ahead of Japan Launch

    Toyota Motor plans to manufacture its next-generation Lexus electric vehicle in China ahead of Japan, deploying gigacasting technology in Shanghai to cut production costs.

    The decision breaks with the ¥36.9 trillion automaker’s established practice of debuting new Lexus platforms at domestic Japanese assembly plants before rolling them out overseas.

    Gigacasting and Supply Chain Shifts

    Toyota will base the new manufacturing operations in Shanghai to shorten production lead times and align output with local buyers. Adopting gigacasting techniques allows the factory to cast large single-piece structural components, reducing assembly steps and altering Toyota’s global cost structure for future battery-electric models.

    Targeting China first concentrates advanced manufacturing where volume demand for premium electric cars is concentrated. The rollout forms part of Toyota’s plan to use internal battery investments and tighter plant efficiency to protect profit margins as its electrified vehicle ratio rises.

    Price Pressures in Shanghai

    Lexus contends with severe retail rivalry across China from Tesla, BMW and local electric brands that continue to push aggressive discounting across the luxury segment. Building inside China removes import overheads and shortens delivery cycles, helping the brand defend showroom pricing and aftersales service value.

    The next operational milestone will be the integration of the gigacasting lines at the Shanghai facility as Toyota works to bring the platform into commercial production without straining operating cash flows.

  • China and India Lead Global Quick Commerce with Adoption Past 80 per Cent

    China and India Lead Global Quick Commerce with Adoption Past 80 per Cent

    Quick commerce adoption in China reached 83 per cent and 82 per cent in India, creating a multi-trillion-yuan grocery delivery market that outpaces Western peers. The channel is on track to surpass 1 trillion yuan in China this year, backed by a logistics network that handled 199 billion parcels in 2025.

    Data compiled by consumer intelligence firm NIQ shows ultra-fast delivery has become standard consumer behavior across major Asian economies. The global average adoption rate sits at 48 per cent, dragged down by Western markets where 34 per cent of European shoppers and only 3 per cent of North American consumers use quick commerce platforms.

    India Builds Dark Store Networks

    India represents the fastest-accelerating market for ultra-fast delivery. The sector grew 68 per cent year over year in the fourth quarter of 2025, powered by operators expanding an urban dark-store network projected to exceed 5,000 facilities. Individual micro-fulfillment hubs in the country now process up to 1,800 transactions per day.

    Shoppers in India are also changing how they use the apps. Instead of relying on 10-minute delivery purely for emergency top-ups and late-night snacks, consumers are migrating toward full grocery baskets, driving higher repeat purchase frequencies and larger ticket sizes.

    The structural divergence between Asia and the West comes down to city density, cheap local couriers, and deeply entrenched super-app ecosystems. In China and India, retail platforms solved local delivery economics early by pairing dark stores with dense residential zoning, whereas Western operators struggled with high labor overheads and sprawling suburban delivery routes that broke unit economics after 2022.

    Profitability Lags Channel Expansion

    Surging transaction volumes do not guarantee profitable sales for consumer brands selling through rapid channels. While brand manufacturers allocate an average of 27.4 per cent of their marketing spend to social commerce and related rapid channels, 58 per cent still report a return on investment of less than $1 per dollar spent.

    Growth is accelerating, but sustainable value will come from understanding which consumer missions truly benefit from immediacy.

    Suppliers are now overhauling their inventory allocations to defend margins. The key metric to watch across Asian platforms this year is whether operators can push average order values high enough to offset rising fulfillment costs as dark store networks reach saturation in tier-one cities.

  • Domino’s China Operator DPC Dash Adds 235 Stores as Revenue Hits RMB3.13 Billion

    Domino’s China Operator DPC Dash Adds 235 Stores as Revenue Hits RMB3.13 Billion

    DPC Dash added 235 net new Domino’s Pizza stores in China during the first half of 2026. Group revenue rose 20.8 per cent.

    Revenue for the six months ended June 30 reached RMB3.13 billion (US$440 million). Net profit rose 22.9 per cent year on year to RMB81 million, supported by a 7.1 per cent lift in same-store transactions.

    That buildout took the chain’s network to 1,550 stores across 75 cities. The operator entered 15 new municipal markets during the period.

    Pushing Into Lower-Tier Markets

    Lower-tier Chinese cities now make up the bulk of the brand’s footprint. The operator runs 1,018 stores outside Tier 1 hubs, compared with 532 locations across primary metropolitan areas.

    DPC Dash holds exclusive master franchise rights for Domino’s in mainland China, Hong Kong and Macau. Chief executive Aileen Wang said the company will focus on lifting average transaction value and expanding customer volume as third-party food delivery subsidies diminish across the sector.

    Western fast-food chains in China have redirected capital expenditure away from saturated top-tier cities to capture cheaper real estate and consumer demand in secondary markets. While quick-service competitors battle heavy price discounting on aggregator apps, Domino’s relies on its own delivery network and lower operating costs to protect unit margins.

    Pipeline Toward 350 Openings

    Between June 30 and August 14, the operator launched another 27 stores across the country.

    Another 38 locations are under construction, with 36 additional leases signed or approved. Those sites keep the business on track toward its full-year target of approximately 350 net new store openings.

  • Asia-Pacific Diaper Market to Reach $19.9 Billion as Pant Formats Gain

    Asia-Pacific Diaper Market to Reach $19.9 Billion as Pant Formats Gain

    The Asia-Pacific baby diaper market reached USD 11.3 billion in 2025, heading toward USD 19.9 billion by 2035. Revenue across the region will hit USD 12.1 billion in 2026, expanding at a 5.9 per cent annual compound rate over the ten-year period.

    Unicharm Corporation led the regional sector with more than 21 per cent market share in 2025. Together with Procter & Gamble, Hengan International Group, Kao Corporation, and Kimberly-Clark Corporation, the top five players controlled 58 per cent of total diaper revenue across Asia-Pacific.

    Shift to Pants and Digital Channels

    Taped diapers generated 52 per cent of sales in 2025, anchored by newborn demand and premium lines such as Pampers Premium Care and Huggies Platinum. Pant-style diapers accounted for the remaining 48 per cent. Rising demand for mobile infant formats will push pant diapers to 56 per cent of the total market by 2035, expanding at a 7.2 per cent annual rate.

    Digital storefronts captured 44.9 per cent of total regional revenue in 2025. Diaper sales through online platforms are climbing at 7.5 per cent annually, led by recurring orders on Tmall, JD.com, Flipkart, Lazada, and Shopee. High price transparency on these marketplaces is forcing brand owners to rely on bundle promotions and subscription models rather than standard shelf markups.

    Volume Split Between East and South Asia

    China remains the largest market by revenue, while India is expanding the fastest. Mature metropolitan markets in Japan, South Korea, and Tier-1 Chinese cities reward high-specification components, including multi-layer superabsorbent polymer cores, breathable backsheets, and wetness indicators. Suppliers in these markets face tighter environmental policy, including South Korean producer-responsibility rules and Japanese resource-circulation guidelines targeting nonwoven plastic waste.

    In contrast, revenue growth across India, Indonesia, Vietnam, and the Philippines relies on converting households from cloth to disposable products. That conversion hits income ceilings in areas where household earnings stay below USD 5 per day. Sourcing volatility in polypropylene nonwovens and elastic attachments leaves little room for price increases in mass-market packs.

    Regional manufacturers are running split production lines to balance these distinct market demands. The strategy separates high-speed, cost-optimized conversion for Southeast Asian distribution networks from thin-core premium lines destined for East Asian e-commerce channels.

    Production economics now hinge on how fast producers adjust material formulations before municipal packaging and nonwoven waste rules take effect in Northeast Asian retail networks.

  • Panpuri Opens First Mainland China Store in Shanghai in 16-Outlet Asian Push

    Panpuri Opens First Mainland China Store in Shanghai in 16-Outlet Asian Push

    Thai niche fragrance brand Panpuri opened its first Mainland China store at Shanghai’s HKRI Taikoo Hui shopping centre, anchoring a 16-store regional expansion across Asia this year.

    The Bangkok-based label is entering high-end retail developments in China and Japan to build scale outside Southeast Asia. At the Shanghai boutique, Panpuri is selling its full range of perfumes, home ambience goods and body care products, supported by custom fragrance blending and bespoke gift-wrapping stations.

    Expanding From Shanghai to Tokyo

    Thai entrepreneur Vorravit Siripark founded the business in 2003, pairing traditional Thai herbal and oil treatments with modern skincare formulations. The Shanghai debut follows an Asian expansion plan outlined in May that aims to establish footprint in prime shopping destinations.

    In China, Panpuri is focusing its initial store pipeline on Shanghai and Beijing. In Japan, the company plans to launch its first boutique in Tokyo before adding locations across other major metropolitan areas.

    Southeast Asian beauty and wellness operators have increasingly looked north to East Asian department stores and malls, where consumer spending on niche perfumery and premium personal care remains resilient. Entering prime properties such as Swire Properties’ HKRI Taikoo Hui places the Thai label in direct competition with established European and domestic Chinese fragrance houses fighting for department-store foot traffic.

    Targeting Top-Tier Asian Capitals

    Siripark stated that shoppers in both Japan and China place heavy value on product craftsmanship, atmospheric retail design and emotional brand resonance, making them natural priorities for international growth.

    Attention now turns to the delivery of the remaining pipeline locations across Beijing and Tokyo as the brand works to complete its 16-store regional target before year-end.

  • European Luxury Houses See China Rebound as Burberry Sales Climb 9%

    European Luxury Houses See China Rebound as Burberry Sales Climb 9%

    European luxury groups are tracking a tentative rebound across mainland China, led by high-net-worth spending and demand for premium beauty and apparel.

    July retail sales across the country’s top 25 luxury labels dropped more than 10 percent under tighter scrutiny on offshore wealth, but corporate earnings forecasts point to an autumn turnaround. Household spending on cosmetics has begun to stabilize, while quarterly reports from fashion houses reveal pockets of early momentum.

    Divergence Across Brands

    Burberry Group posted a 9 percent increase in Greater China retail sales during its latest quarter, helped by younger shoppers and localized campaigns. The British fashion house partnered with Chinese National Geography magazine on documentary marketing to lift brand engagement among Gen Z consumers.

    Gucci parent Kering expects sales in the region to return to positive growth by the fourth quarter of 2026. Chief Executive Luca de Meo called the country a strategic priority as trading conditions improved steadily through the latest reporting period.

    LVMH reported steadying demand in mainland stores, citing improving figures for its Sephora retail chain and cognac labels. Swiss group Richemont captured higher tourist spending across Hong Kong and Macau, while Moncler gained ground in market niches.

    Uneven Recovery Profile

    The rebound remains concentrated among high-net-worth buyers rather than broad middle-income households. That divide keeps the pace uneven across retail categories and price points.

    Hermes continues to accelerate sales in the region, while Danish jeweler Pandora is seeing sales declines narrow. For retail operators across Asia, the test will be whether luxury spending broadens beyond top-tier VIP clients before fourth-quarter results land.

  • Drugmakers Turn to Gyms and Metros to Drive China Weight-Loss Sales

    Drugmakers Turn to Gyms and Metros to Drive China Weight-Loss Sales

    Global and local drugmakers are plastering Chinese metro stations, gyms, and sports stadiums with obesity campaigns to capture a 30 billion yuan weight-loss market. China bans direct-to-consumer advertising for prescription medicines, forcing pharmaceutical companies to sell lifestyle interventions rather than brand names to a population where overweight rates could top 65 per cent by 2030.

    Eli Lilly, Novo Nordisk, Pfizer, and domestic group Innovent Biologics are vying for early dominance in once-weekly GLP-1 injections. In the second quarter, Lilly took the top spot in sales on Alibaba’s Tmall and JD.com, according to Jefferies data. To sustain demand, companies place unbranded warnings about sleep apnoea and fatty liver disease in high-traffic public transit hubs and fitness chains.

    Sidestepping the Ban on Drug Ads

    Regulations permit pharmaceutical brands to discuss disease symptoms publicly, provided they omit specific prescription product names. Lilly ran subway displays in Shanghai’s Jing’an district alerting commuters to the links between snoring and excess weight, while Innovent partnered with delivery giant Meituan on transit billboards highlighting fatty liver reversal. Innovent also promoted weight management messages during football matches in Suzhou and featured a mascot named Madudu, echoing the generic name of its mazdutide injection.

    Pfizer collaborated with gym chain Supermonkey on public workout events in Shanghai. State broadcaster CCTV worked with Novo Nordisk on a public health exhibit in Beijing featuring group dancing. These street campaigns drive consumers directly to hospital consultation rooms. Doctors at clinics in Shanghai and Guangzhou report that patients increasingly ask for specific treatments by name, shifting from Novo’s semaglutide to Lilly’s tirzepatide and Innovent’s mazdutide.

    The Race for a Four Billion Dollar Market

    China’s prescription weight-loss segment generates between 3 billion and 4 billion yuan today. JP Morgan projects that total will hit 30 billion yuan, or roughly $4 billion, within five to seven years. Novo Nordisk started the race with a late 2024 rollout, Lilly entered in January 2025, Pfizer issued its first prescriptions in April, and Innovent rolled out its drug in July 2025.

    RetailNews Asia notes that healthcare brands across East Asia have long used subtle educational pushes to bypass medical marketing restrictions, but the intensity in China now mirrors consumer FMCG marketing more than traditional clinical outreach. Competitors are actively adjusting their public phrasing to match consumer vocabulary, moving budget away from purely hospital-focused sales representatives.

    Regulators in the region are watching the grey area closely. Lilly paused an obesity awareness campaign in India earlier this year after local authorities raised concerns that public outreach coincided directly with the market launch of Mounjaro. In China, market regulators will determine whether mascot branding and metro displays cross into unlawful prescription drug promotion as rollout volumes climb through the end of 2026.

  • PDD Profit Falls 12% as Price Wars and Overseas Tariffs Bite

    PDD Profit Falls 12% as Price Wars and Overseas Tariffs Bite

    PDD Holdings posted a 12 per cent drop in second-quarter net profit to 27.2 billion yuan as domestic price discounting squeezed margins. Revenue at the Chinese e-commerce group rose 8 per cent to 112.36 billion yuan ($15.7 billion) in the three months ended June 30, missing the 116.35 billion yuan consensus collected by LSEG.

    Adjusted earnings per American depositary share reached 19.33 yuan, beating analyst expectations. Shares rose 2.3 per cent in early New York trading following the release.

    Domestic price wars and margin compression

    The company operates discount platform Pinduoduo in China, where it trades against Alibaba Group’s Taobao and Tmall, JD.com, and ByteDance’s Douyin. Weak consumer confidence, real estate market weakness, and persistent employment worries kept shoppers cautious through the peak ‘618’ shopping festival in June. Platform operators responded with direct subsidies, price-matching guarantees, and merchant incentives, pushing profitability down across the sector.

    Management told analysts that platform governance spending will increase as the fight for market share continues. PDD increased spending on logistics and merchant support programmes during the quarter to lower consumer prices and protect seller retention.

    For retailers across Asia, PDD’s slowing topline growth shows the limits of low-price customer acquisition when competitors match subsidies yuan for yuan. Alibaba and JD.com have reoriented their core marketplaces around low-price algorithms over the past year, stripping Pinduoduo of the uncontested cost advantage it held during its initial expansion.

    Cross-border tariff friction in Western markets

    Temu, the group’s international marketplace, confronts tightening import policies in its core Western territories. The platform built its market share by dispatching low-cost parcels directly from Chinese factories to consumers, using de minimis customs exemptions to bypass import duties.

    Policy changes in the United States have eliminated duty-free status for low-value Chinese parcels, while the European Union introduced a customs fee on small inbound packages in July. Rising shipping and compliance overheads have forced marketplace merchants to lift retail prices, slowing cross-border parcel volumes.

    “In the short term, cross-border orders in the affected markets will face slower fulfilment efficiency and higher costs which will have a considerable impact on those parts of our business,” said PDD co-chief executive Chen Lei.

    Investors now await third-quarter customs clearance data from European ports and the platform’s upcoming gross merchandise volume figures during the year-end holiday shopping cycle.

  • Dingdong Lifts Second Quarter Profit to $40 Million Ahead of Meituan Deal

    Dingdong Lifts Second Quarter Profit to $40 Million Ahead of Meituan Deal

    Dingdong boosted second-quarter net income by 153 per cent to $40 million, lifted by higher domestic order frequency and an accounting adjustment on assets designated for sale.

    Revenue rose 8.6 per cent to $956.1 million for the three-month period, while gross merchandise value increased 11.8 per cent to $1.07 billion.

    Accounting Shift Drives China Earnings

    Net profit from operations in China surged 155 per cent. That increase stemmed primarily from the cessation of depreciation and amortisation charges on long-lived assets classified as held for sale under US GAAP rules. Overseas operations moved in the opposite direction, with net losses widening 166 per cent despite a 36.2 per cent rise in international revenue.

    The divergent performance comes as Dingdong prepares to hand over its domestic operations. In February, the grocer agreed to divest its China business to on-demand delivery giant Meituan. That transaction remains pending regulatory and closing conditions.

    Summer Peak Drives Daily Volumes

    Chief executive Song Wang credited higher order frequency among loyal members for driving the gains. Dingdong has now recorded non-GAAP profit across 15 consecutive quarters, alongside 10 straight quarters of year-over-year revenue expansion and positive GAAP net income.

    Trading accelerated further as the platform entered its summer peak in July. Monthly gross merchandise value hit a record high, with single-day sales exceeding RMB 100 million multiple times during the month.

    China’s instant-grocery sector has shifted decisively toward consolidation after years of heavy cash burn, forcing independent warehouse networks to integrate into larger delivery ecosystems or redirect resources abroad. Dingdong’s run of GAAP profitability shows the frontline warehouse model can deliver positive margins once promotional subsidies recede.

    Market attention now centers on the completion date for the Meituan transaction, which will determine how quickly Dingdong pivots its core focus toward international expansion.

  • Borsalino Opens First China Boutique at Shanghai Plaza 66

    Borsalino Opens First China Boutique at Shanghai Plaza 66

    Borsalino opened its first permanent boutique in mainland China at Shanghai’s Plaza 66, launching the 170-year-old Italian luxury hatmaker’s direct retail presence in the country.

    The Shanghai debut anchors the company’s broader expansion push across Greater China and key international retail destinations.

    Mauro Baglietto, managing director of Borsalino, led the ribbon-cutting ceremony alongside Alec Hou, chief executive of Essence Group, joined by representatives from the Italian government and Plaza 66 leasing management. To accompany the launch, the brand unveiled a limited-edition jewellery collection featuring a Fedora finished with an 18-carat gold logo set with rubies, sapphires and diamonds.

    Heritage and Pop-Up Operations

    Plaza 66 hosted a Borsalino pop-up installation from 22 to 27 August to support the boutique opening. The temporary space showed archival vintage headwear, demonstrations of Italian millinery craft, and bespoke personalisation services for local shoppers.

    Giuseppe Borsalino established the company in Alessandria, Italy, in 1857, making it the country’s oldest operating luxury hatmaker. The business currently pairs its own-brand boutiques and wholesale accounts with global distribution networks, fashion collaborations and film-industry styling partnerships.

    Niche Luxury in Prime Retail Malls

    Heritage European craft houses continue to seek dedicated real estate across top-tier Chinese commercial centers to engage high-net-worth buyers directly rather than relying solely on multi-brand stockists. Placing a standalone store inside Plaza 66 gives Borsalino immediate access to Shanghai’s most concentrated luxury customer base.

    The next metric to watch is whether Essence Group and Borsalino follow this flagship opening with additional retail leases in secondary luxury hubs such as Beijing and Chengdu.

  • Lululemon Combines China and Apac Under New Leadership

    Lululemon Combines China and Apac Under New Leadership

    Lululemon has consolidated its China and Asia-Pacific operations under a single regional leadership team, naming San Yan Ng regional president.

    Ng joined the retailer in January 2018. She spent eight years directing its mainland China business as the country grew into one of the company’s largest international revenue drivers.

    Luxury retail veteran to lead Apac

    Under the revised structure, Jeffrey Hang joins the apparel company as senior vice president and general manager of Asia-Pacific. He reports directly to Ng and will manage regional teams across markets outside mainland China.

    Hang brings more than twenty years of Asian retail experience to the post. Most recently, he served as managing director for Bulgari across Southeast Asia, India, Australia and New Zealand after working as senior vice president and chief executive officer at Louis Vuitton China.

    Together, their strong leadership and track records of success will help us to strengthen our local relevance in the region and grow our community of guests around the world.

    André Maestrini, interim co-chief executive, president and chief commercial officer at Lululemon, confirmed the appointments to align operations across regional markets.

    Shared management across regional hubs

    Unifying China and Asia-Pacific under one command structure reflects how global sportswear and premium apparel brands are adjusting regional operations. Many international labels previously ran mainland China as a standalone division separate from the rest of Asia. That split created duplicate resources in supply chains, regional merchandising and digital marketing.

    This combined reporting line lets the company share store-level lessons and inventory strategies across borders. It connects mature hubs such as Hong Kong, Tokyo and Sydney with fast-expanding cities across mainland China.

    Leadership changes take effect immediately. Lululemon now heads into its next round of quarterly financial disclosures and store expansion plans across East and Southeast Asia.

  • Chinese EV Makers Face Rising Component Costs as AI Drains Supply

    Chinese EV Makers Face Rising Component Costs as AI Drains Supply

    Chinese smart electric vehicle manufacturers are battling component deficits of up to 30 per cent, driving steep price surges across circuit boards and basic electronic parts.

    Prices for printed circuit boards and multilayer ceramic capacitors have more than tripled over the past twelve months as global semiconductor makers reallocate production capacity to artificial intelligence data centres.

    Surging Hardware Prices

    Printed circuit boards now cost roughly 330 yuan ($49) per sheet, up threefold in a year according to data from the India Printed Circuit Association. Multilayer ceramic capacitors, essential for regulating electrical currents across vehicle power systems, jumped from 10 yuan per 1,000 units to 40 yuan in early 2026.

    Memory chips needed for autonomous driving features are delivering the heaviest financial blow. Nio chief executive William Li reported that rising raw material expenses, led by memory chips, added 20,000 yuan to the build cost of every single vehicle.

    Carmakers cost pressure mainly comes from memory chips. But a lack of PCBs and MLCCs disrupts production and prevents assemblies from running smoothly.

    Supply Chain Squeeze

    Component makers in manufacturing hubs like Zhejiang province are giving order priority to AI data centre operators over automotive assemblers because computing chips yield higher margins. Carmakers must now pay hefty premiums to keep assembly lines running.

    Geely Auto, China’s second-largest automaker, confirmed that while small passive components represent a modest fraction of total expenditure, physical shortages threaten assembly continuity. The bottleneck across global component production lines will take at least twelve months to resolve.

    The margin squeeze arrives just as Chinese carmakers rely on software and autonomous driving capabilities to win buyers in an increasingly crowded domestic auto market. Nio and Geely are renegotiating vendor contracts to lock in deliveries for the second half of 2026.

  • ALO Enters China with Tmall Debut After RMB10 Million First-Minute Sales

    ALO Enters China with Tmall Debut After RMB10 Million First-Minute Sales

    Alo Yoga entered the mainland Chinese market on August 12 through an exclusive storefront on Alibaba Group’s Tmall platform, generating over RMB10 million in its opening minute.

    Pre-sales opened at 12:30 a.m., setting a record for the fastest launch sales in Tmall’s sports and outdoor category.

    Targeting high-spend shoppers

    The premium activewear label is retailing women’s and men’s apparel, footwear, accessories and wellness products through the flagship store. The partnership gives Alo direct access to Tmall’s 88VIP program, an active pool of more than 62 million top-tier spenders across the platform.

    “The partnership reinforces Tmall’s position as the go-to choice for global brands in China seeking high-value customers and scalable growth,” said Gu Di, general manager of sports and outdoors at Taobao and Tmall Group.

    Digital-first route into activewear

    Selling online first allows Alo to test product demand across Chinese provinces without committing capital upfront to prime shopping mall leases. Rival athletic apparel brands established their presence in China by building city-by-city community hubs before opening physical stores, whereas Alo is relying on Alibaba’s customer database to build scale immediately.

    The Chinese online rollout follows Alo’s wider expansion across Asia-Pacific, which recently included a physical store launch in the Philippines. The next test for the company is whether early online demand will translate into brick-and-mortar locations in tier-one retail hubs.