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Tag: tmall

  • Alibaba Revamping Ladies’ Rooms To Make Waiting More Fun

    Alibaba Revamping Ladies’ Rooms To Make Waiting More Fun

    Alibaba’s Tmall and shopping centre operator Intime have partnered to create a New Retail-driven model for restrooms.

    Last week, the two unveiled the first “Smart Ladies’ Room” at the West Lake Intime Shopping Mall in Hangzhou City. It’s the latest extension of New Retail by Tmall and Intime, after they last month showed off a smart nursing room for mothers shopping at malls.

    Consumers waiting in line can make use of technologies like a pair of ‘magic mirrors’, an augmented-reality-powered digital screen that lets shoppers virtually try on and purchase cosmetics, including a wide array of lipstick, blush, eyeliners and eyeshadow, and a vending machine offering beauty and feminine products from nearly 10 brands, including Shu Uemera, Lancome, Elizabeth Arden and Benefit, to lighten the load for ladies out shopping. All products can be purchased for RMB 0.01 each through the Alipay mobile wallet.

    The Smart Ladies’ Room at West Lake Intime Shopping Mall is already open to the public, while one at Hangzhou’s Wulin Intime is under construction. The company said its next steps involves reworking more restrooms at tourism sites, shopping malls and hotels.

    Alibaba’s plans to expand the model to more public restrooms coincides with China’s continued push for a “toilet revolution,” a national drive to improve sanitation and build more clean restrooms across the country.

    China intends to build or renovate 64,000 toilets at tourist sites between 2018 and 2020, by the end of which the country aims to raise tourism revenue to RMB 7 trillion – up from RMB 3.9 trillion in 2016, according to the Xinhua News Agency.

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  • Alibaba to thank New Retail for Its record sales

    Alibaba to thank New Retail for Its record sales

    Continuing momentum in Alibaba Group’s New Retail business helped drive a 56 per cent year-on-year growth in sales for the quarter to December 31.

    The performance of the New Retail category – which combines its online (non-marketplace) and fast-growing offline retail businesses, including investments in Sun Art Retail and other established businesses – was a core highlight of the quarter, according to CEO Daniel Zhang.

    “Alibaba had another great quarter driven by the continued strength of the Chinese consumer and the wide and innovative range of services we provide for merchants and consumers,” he said.

    “We are excited by the continued momentum in New Retail, which came to life during another record-breaking 11.11 Global Shopping Festival. We expanded the scale and footprint of our New Retail initiatives with the vision of delivering true convergence of the online and offline consumer experience through mobile and enterprise technology.”

    Maggie Wu, CFO, said the group’s core business generated significant free cash flow of US$7.1 billion during the quarter, “enabling us to invest in New Retail, cloud computing, digital entertainment and globalisation”.

    Revenue from core online commerce (marketplace) activities rose 57 per cent to US$11.257 billion and from cloud computing by 104 per cent to $553 million. Digital media and entertainment sales rose 33 per cent to $832 million.

    The number of annual active consumers on Alibaba Group’s China retail marketplaces reached 515 million, an increase of 27 million from the year to September 30.

    Net income was $3.586 billion with operating margin was 31 per cent and adjusted EBITA margin for the core e-commerce business 53 per cent.

    Group highlights

    Alibaba summarised group highlights in its earnings statement, including:

    Taobao: Artificial Intelligence (AI) drove user engagement, with the Taobao app’s intelligent personal recommendations and innovative content formats continuing to drive strong growth in user engagement, conversion and annual active consumers. “We continue to invest in machine learning technologies which we apply to use cases that match consumer intent and product selection to deliver the best consumer experience.”

    Tmall: Tmall recorded 43 per cent year-on-year growth in physical goods GMV during the quarter, reflecting robust growth across all major categories including apparel and accessories, consumer electronics (mobile phones) and FMCG. “Tmall continues to be the platform of choice for the world’s top brands, with Givenchy, Giorgio Armani Beauty and Volvo establishing Tmall flagship stores and Longines, Hennessy, Dom Perignon and Baccarat joining our Luxury Pavilion in this quarter.”

    11.11: Last year’s annual November 11 Global Shopping Festival exceeded the previous year’s records, with GMV settled through Alipay on Alibaba’s marketplaces up 39 per cent year-on-year to $25.9 billion. “The continuous success of this record-breaking event is enabled by our resilient and scalable technology, as well as payments and logistics infrastructure that is capable of operating at massive scale.”

    New Retail: Rapid expansion through partnerships and innovative technologies included the opening of five new Hema fresh grocery stores in Shanghai, Beijing, Ningbo and Suzhou, taking the network to 25 at year end. “Hema exemplifies the convergence of online and offline retail by leveraging our in-store proprietary technology, digitised supply chain system, consumer insights and mobile ecosystem to provide a seamless experience for consumers.”

    In November, Alibaba formed a strategic alliance with Sun Art Group, the leading hypermarket and supermarket chain by revenue in China with over 440 stores nationwide. “Through this partnership, we aim to equip traditional retailers with our proprietary technology and know-how in online offline convergence to implement their digital transformation. In addition, the partnership with Sun Art will also enable us to accelerate the expansion of our New Retail offerings with national scale.

    International:  Alibaba’s cross-border and international retail businesses continue to show strong growth. Revenue from international commerce retail business reached $727 million in the, representing 93 per cent year-on-year growth, driven by its Southeast Asian platform Lazada and its global retail marketplace AliExpress. “While the markets for Southeast Asia and cross-border commerce remain very competitive, they are in the early innings of the game. We are optimistic about the long-term secular growth prospects of our international markets and will therefore continue to make significant investments for market share growth and focusing on the best customer experience.”

    Cainiao Network: Alibaba’s logistics division, Cainiao Network, processed 812 million orders during the 11.11 event. Cainiao Network operates an electronic shipping label system that standardises shipping data into structured formats, which enables efficient pick-and-pack operations for merchants and sorting and routing operations for delivery partners. “The advantages of this system have resulted in broad adoption by merchants and logistics service providers, both on and off our platforms, putting us in position to serve the growing consumption economy in China and roll out our New Retail strategy.”

    Cloud Computing:  Cloud computing revenue grew 104 per cent year-over-year to $553 million, driven by both robust growth in paying customers and revenue mix toward higher value-add product.  “In the December quarter, Alibaba Cloud launched 396 new products and features and continued to introduce proprietary AI technologies to tackle real-world challenges, such as traffic planning and optimising efficiency in manufacturing and airport operations. Alibaba Cloud continues to expand its customer base across a variety of industries.”

    Alibaba Cloud customers include Watsons China, carmaker Geely, and Beijing Capital International Airport.

    Digital Media and Entertainment: During the quarter, Youku video’s daily average subscribers more than doubled year-on-year, driven by several original drama series and shows that became popular hits with users.

    AI and innovation: Alibaba says its AI-powered voice assistant, Tmall Genie, surpassed 1 million unit sales since its official launch in July and the end of the year. “Tmall Genie is supported by a growing collection of sales and services and is an effective vehicle for offering a comprehensive set of every-day living applications within the Alibaba ecosystem,” the company said.

    In January, Alibaba’s Institute of Data Science Technologies (iDST), its AI research arm, developed a deep-learning neural network for natural language processing that scored higher than humans on a Stanford reading-comprehension test, the first time a machine has outperformed humans on such a test. “This development underscores Alibaba’s commitment to technology research which we believe builds the foundation for our growth in the long run.”

    Ant Financial: Alibaba Group agreed to take a 33 per cent equity stake in Ant Financial that will strengthen its strategic relationship pursuant to the series of agreements reached with Ant Financial in 2014. “We believe deepening our relationship through an equity stake in Ant Financial will bring key strategic benefits to us, including advancing our New Retail strategy with mobile payments, increasing user acquisition and retention through collaboration with the Alipay digital wallet (Alipay Wallet), and enhancing the execution of our international expansion.”

    The number of Alipay Wallet’s daily active users more than doubled during the quarter on a year-on-year basis.

  • H&M hoping to recover profits from its Tmall launching

    H&M hoping to recover profits from its Tmall launching

    Stung by a profit slump, the H&M group is pinning its hopes on China by launching a store on Alibaba’s Tmall next month.

    As well, the Swedish fast-fashion retailer is targeting India, Saudi Arabia and the UAE with new digital stores this year.

    Releasing its full-year report yesterday, H&M admits it has been struggling to keep pace with evolving shopping habits that have depressed sales in its physical stores.

    Sales grew 4 per cent last year but profit after taxes slumped 13 per cent, with CEO Karl-Johan Persson saying the fashion industry is “changing fast”.

    “At the heart of the transformation is digitalisation, and it is driving the need to transform and rethink faster and faster,” he says.

    With physical stores in 69 markets, H&M has an online presence in 43.

    Full-year global sales (to November 30) including VAT increased by 4 per cent to SEK231 billion (US$29 billion). This was a 3 per cent rise in local currencies. Sales excluding VAT reached SEK200 billion.

    Gross profit increased to SEK108 billion, corresponding to a gross margin of 54 per cent, down from 55.2 per cent the previous year.

    Profit after financial items amounted to SEK20.8 billion, down from SEK24 billion. The group’s profit after tax amounted to SEK16 billion, down from SEK18.6 billion.

    Final-quarter fall

    For the fourth quarter, H&M group sales including VAT were down 4 per cent to SEK58.4 billion (2 per cent in local currencies). Sales excluding VAT fell from SEK52.7 billion to SEK50.4 billion.

    Gross profit fell to SEK27.9 billion from SEK30 billion, corresponding to a gross margin of 55.4 per cent (57 per cent). Profit after financial items amounted to SEK4.8 billion, down from SEK7.4 billion.

    Profit after tax was SEK3.9 billion, down from SEK5.9 billion.

    Weak store sales led to increased markdowns and handling costs, impacting the quarter’s results.

    During the year H&M opened 479 stores (497 the previous year) and closed 91 (70), resulting in a net addition of 388 outlets. Eight online markets were launched and the brand entered five new markets. It ended the year with 69 sales markets, 43 of them including an online presence.

    This year the group plans to add about 390 stores to its network and close about 170, a net addition of about 220 stores. On Tmall it will have both H&M and H&M Home.

    At home in Sweden it will also introduce the Afound brand, an off-price marketplace offering products from fashion and lifestyle brands.

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  • H&M to close stores and expand on Tmall

    H&M to close stores and expand on Tmall

    It is normal practice to use Tmall to test the Chinese market. Is H&M tinking of using Tmall to replace its physical stores?

    As inventories rose and sales tanked in the fourth quarter, H&M announced it is picking up the pace on a transformation plan.

    Q4 sales fell 4% to $5.97 billion from the same period a year ago and foot traffic to stores declined, according to a company press release.

    CEO Karl-Johan Persson said the company would scale back its physical expansion and close some stores, but its collaboration with Alibaba is expanding.

    H&M and H&M Home brands will begin selling on Tmall and the company is in “far advanced discussions” to sell the rest of H&M’s brands through the Chinese e-commerce marketplace, according to another press release.

    Also last week, H&M rival Inditex reported a net sales rise of 10% to €17.96 billion ($21 billion) in the first nine months of fiscal 2017.

    The Spanish apparel company, owner of Zara, also announced the rollout of same-day delivery, automated in-store pick-up points for online orders and next-day delivery in six markets, including in Spain, France, the U.K. and China.

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  • Volvo’s XC60 makes China debut on Tmall

    Volvo’s XC60 makes China debut on Tmall

    Volvo, the Chinese-owned automaker founded in Sweden, debuted the latest iteration of its best-selling XC60 model on Tmall, Alibaba’s B2C shopping platform.

    The online offer meant that Chinese consumers can buy the new crossover SUV from Volvo, which is a unit of Hangzhou-based Zhejiang Geely Holding Group, a day before it goes on sale through all of Volvo’s other distribution channels in China.

    The XC60 comes in about a dozen colors depending on the market, but the blue version will be available only to Tmall shoppers. All 288 exclusive blue models offered in the initial round of sales on Tmall, starting at RMB 429,900, were sold out within the first 75 seconds.

    Also, 40 of the new cars will be available to Alibaba Super Members for a Super Test-Drive, a service introduced last week as part of Alibaba’s soon-to-launch Auto Vending Machines.

    The announcement is the latest in a series of initiatives from Alibaba in the auto space. Earlier this month, the Chinese technology giant announced a partnership with Ford Motor in which the two companies said they would leverage artificial intelligence, cloud computing, the Internet of Things and e-commerce via Tmall to “redefine the consumer journey and user experience for automobiles.”

    SEE ALSO : Alibaba’s Singles’ Day Sales Hit $10 Billion in one hour

    Tmall is also slated to open its car vending machine next month, although the location has yet to be disclosed. Consumers will browse cars stored in a massive garage-like structure on their smartphones, make their purchase, and then the cars will be delivered to them at ground level. The cars, including the XC60, will also be available for a test-drive.

    “The car vending machine reflects our efforts in New Retail, and we hope working together [with Volvo] to develop this innovative business model can help drive the transformation of the auto industry,” Bo Liu, marketing director of Tmall, said.

    First unveiled at this year’s Geneva Motor Show, the new mid-size SUV replaces Volvo’s highly successful original XC60. The model, which has been around for nearly a decade, represents about 30% of Volvo’s total global sales today.

    Volvo said that the second-generation XC60 is one of the safest cars ever made. It features the latest in safety technology, such as a new Oncoming Lane Mitigation system, which uses a steer assist to help mitigate head-on collisions. The SUV recently captured Japan’s most prestigious automotive award, the Japan Car of the Year, beating finalists including BMW 5-Series and Lexus LC.

    Automakers worldwide have been investing in innovative approaches to auto retail, as China’s automotive market expects significant growth. According to a September McKinsey report, China will contribute over half of global car sales growth through 2022, while the growth in the luxury car category is expected to outpace the rest of the market.

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  • What Will the Giorgio Armani-TMall Partnership Bring About?

    What Will the Giorgio Armani-TMall Partnership Bring About?

    Giorgio Armani will launch a flagship e-tail store on TMall to sell its high-end cosmetic products in China, the company announced at the end of December last year. It will also partner with Luxury Pavilion, a subsidiary of TMall featuring luxury brands, to provide customers with first-hand, exclusive sales called “TMall Super Brand Days” this month. It seems that in recent years, Western luxury brands have become increasingly eager to join China’s e-commerce platforms.

    So what will the Giorgio Armani-TMall partnership bring about this time? Here are some Jing Daily’s concerns and takeaways:

    More exclusivity?

    In August when the Luxury Pavilion was first launched, only 17 brands, including LVMH’s Zenith, Guerlain and Rimowa; La Mer; Burberry; Hugo Boss; and Maserati, were invited to participate in the platform’s first-phase sales. As for consumers, the access to the Luxury Pavilion was also invitation-only, which means Alibaba has filtered out customers in advance based on their previous transactions on Taobao. The more one has spent on Taobao, the more likely one will be invited to the Luxury Pavilion. Therefore, even though joining TMall may help Giorgio Armani expand its presence in China, the effort might be limited, given that such an e-tail store will only be available to select luxury consumers. Of course, differentiating individual shoppers is the best way to maximize profits and is in fact quite popular in the industry. But doesn’t this also indicate routine profiling and discrimination from the retailer? Will it be a good policy in the long run?

    More convenience?

    Western high-end cosmetics brands usually cost more in China due to import tariffs, and sometimes certain brands are not even available in local brick-and-mortar stores, which forces many Chinese customers to turn to daigou (shopping agents), who go abroad to buy goods to resell in China, for cheaper deals and purchases. By launching a flagship store on TMall, Giorgio Armani will make it easier for Chinese customers to order products directly from its authorized e-retail website – otherwise, these Chinese customers might step up their purchases through daigou in other countries or from other platforms. However, it’s still not clear the pricing Giorgio Armani will offer to TMall customers. If prices are not competitive compared to the price that a daigou can offer, customers may very well avoid using the platform.

    More anti-counterfeiting efforts?

    Despite e-commerce platforms’ relentless efforts to fight against counterfeit goods, it is impossible to make each e-commerce site completely fake-free. Hence, selling products through a flagship store directly from the brand will help provide a quality local resource for Chinese fashionistas – in this case, the Giorgio Armani fans. However, even if Giorgio Armani manages to deal with the fake goods issue, it may still face another challenge: how to combat against counterfeit goods. Look-alike goods are often hard to examine and can exist in all corners of the e-commerce world. For example, Kering, which owns brands including Gucci and Yves Saint Laurent, has filed law suits against Alibaba for allegedly selling counterfeit (note: not fake) goods on the platform.

    More consumers?

    The post-90 generation, who have grown up and matured with mobile technology, is now a driving force for the online luxury purchase industry, according to the latest report on China’s e-luxury market by Secoo and Tencent. Giorgio Armani’s e-tail will certainly cater to such groups, but will it appeal to all customers? Many consumers from older generations still prefer visiting brick-and-mortar stores, especially when it comes to luxury cosmetics shopping. In all fairness, most consumers still want to try on lipsticks or find the perfect foundation color match before any expensive purchase.

  • H&M will start selling on China’s Tmall in spring 2018

    H&M will start selling on China’s Tmall in spring 2018

    H&M China will open on Alibaba’s Tmall during spring next year.

    “We are very happy to be able to make H&M even more accessible in mainland China,” said  Karl-Johan Persson, CEO of the Swedish fast-fashion retailer.

    “Tmall is an important complement to our existing physical and digital stores. We see great potential for substantial future growth and Tmall will be an important part of this.”

    After opening its first store in mainland China 10 years ago H&M China sales now amount to SEK 11 billion (approximately US$1.3 billion) in over 500 physical stores and online.

    H&M said subsidiary brand Monki has had strong development in China since its launch on Tmall and the collaboration between the two groups is now being extended to include both the H&M brand and H&M Home.

    There are also far advanced discussions regarding the launch of the remaining brands in the H&M group on Tmall.

    “As one of the world’s most innovative fashion companies, H&M is a perfect fit for Alibaba’s Tmall platform,” said Michael Evans, president of Alibaba Group.

    “We are honoured to expand our cooperation with H&M and host their flagship store, enabling H&M brands to engage with our half a billion consumers.”

    However it’s not been all positive news for H&M recently, after the fast fashion giant saw sales slow over the last three months, sending its shares down 13 per cent to its lowest level since 2009.

    In the fourth quarter of 2017, sales excluding VAT amounted to SEK 50,390m (52,720), a decrease of 4 per cent compared to the corresponding quarter last year. In local currencies, sales decreased by 2 per cent.

    Persson said although the group continued to grow during the year, “growth was dampened by the fact that the sales development in the fourth quarter was significantly below the company’s own expectations.”

    “The H&M brand’s online sales and sales of the group’s other brands continued to develop well,” he said.

    “Meanwhile, the quarter was weak for the H&M brand’s physical stores, which were negatively affected by a continued challenging market situation with reduced footfall to stores due to the ongoing shift in the industry. In addition, there have been imbalances in parts of the H&M brand’s assortment composition.

    “In order to respond even quicker to customers’ fast-changing behaviour the company’s ongoing transformation journey is being accelerated. Among other things, this includes continued integration of the physical and digital stores, and intensifying the optimisation of the H&M brand’s store portfolio – leading to more store closures and fewer openings.”

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  • Ford Looks to ‘Auto Vending Machine’ in China During Talks with Tmall

    Ford Looks to ‘Auto Vending Machine’ in China During Talks with Tmall

    Ford Motor Company in China is in talks with Alibaba’s Tmall that could see itmay soon be selling cars through Tmall and an “Automotive Vending Machine” concept.

    The “Automotive Vending Machine” is a multi-storey parking garage that partly resembles a giant vending machine which allows consumer to use their phones to browse through the cars and choose to either test drive or buy a vehicle.

    Once they’ve made their choice, the vehicle is delivered to them on the ground floor.

    According to the Detroit News, the US automaker has signed a three-year agreement signed with Alibaba Group to expand its footprint in China, following a visit to Alibaba headquarters by Ford CEO Jim Hackett and executive chairman Bill Ford Jr.

    Just last month Ford inked a $756 million partnership with Anhui Zotye Automobile Co to build electric vehicles, and more recently Hackett and Ford announced plans to bring 50 new vehicles to market in China by 2025 – including five new models in China.

    This plays well with Alibaba’s efforts to “redefine” the retail experience.

    Their first priority is to come up with new ways for people to buy, maintain and own vehicles using the internet, computers or other technology.

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  • T2 opens Alibaba Tmall store

    T2 opens Alibaba Tmall store

    Australian tea retailer T2 Tea has opened an online storefront on Alibaba’s Tmall Global marketplace to cash in on Chinese demand for Australian products.

    Tmall Global enables international brands to sell to Chinese consumers online, simplifying the export and retail process.

    A curated range of products will be available to Chinese shoppers at t2tea.tmall.hk including homegrown tea blends such as T2 Tea’s Bondi tea, which includes lemon myrtle and native berries.

    “It’s T2’s curiosity for taking the ancient tradition of tea culture in China and giving it a modern twist that we think is both intriguing and exciting for the Chinese consumer,” said Nicole Sparshott, T2 Global CEO.

    First launched in Melbourne 20 years ago, T2 now has 100 stores across five markets. It entered the Asia market in January 2017 and now has four stores in Singapore.

    “For a company that came from humble beginnings in Melbourne, launching on Tmall Global marks a key milestone in our mission to build a generation of tea lovers on every continent,” Sparshott said.

    According to Alibaba, more than 14,500 international brands from 63 countries and regions sell on Tmall Global. For more than 80 per cent of those brands, their Tmall Global virtual store was their first foray into the China market.

    The number of imported product categories on Tmall Global climbed nearly 50 per cent to 3,700 this year.

    “The opening of T2 Tea’s Tmall Global store reflects the growing diversity in demand for premium Australian products,” said Maggie Zhou. “We’re excited to be working with such an iconic Australian brand to help them expand on the success they’ve already seen in Australia.”

    So far there are 1,300 Australian and 400 New Zealand brands on Tmall and Tmall Global. The Chinese demand for Australian products was demonstrated during the company’s 11.11 sale last month.

    Australia recorded its best performance to date ranking as the third highest selling country (outside of China) behind the United States and Japan. Last year, Australia ranked fourth, and fifth in 2015.

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  • Ford China partnership possibility with Tmall

    Ford China partnership possibility with Tmall

    Ford Motor China may soon be selling cars through Alibaba’s Tmall and via an “auto vending-machine” concept.

    The US automaker yesterday signed a three-year agreement signed with Alibaba Group to expand its footprint in China. It is the latest partnership in a series in China in recent months, and follows a visit to Hangzhou, where Alibaba has its headquarters, by Ford CEO Jim Hackett and executive chairman Bill Ford Jr.

    Last month the company announced a $756 million partnership with Anhui Zotye Automobile Co to build electric vehicles, and earlier this week Hackett and Ford announced plans to bring 50 new vehicles to market in China by 2025, and to build five new models in China.

    Hackett says Ford is collaborating with technology leaders to build on its vision for smart vehicles in a smart world.

    Meanwhile, the Alibaba partnership is based on the companies jointly finding new ways to sell vehicles, which could include an online component. They aim to “redefine” the retail experience and explore sustainability concepts, working together in the fields of mobility, connectivity, cloud computing, AI and digital marketing.

    Their first priority is to come up with new ways for people to buy, maintain and own vehicles using the internet, computers or other technology.

    The partnership will be part of Ford’s efforts to overhaul its China strategy to revive the growth momentum it has lost in recent months, Reuters reports. The agreement could mean that cars bought online are delivered to buyers by franchised Ford retail stores, which would maintain and repair the vehicles.

    Ford could also use Tmall’s new retail concept, the “Automotive Vending Machine”, a multi-storey parking garage that partly resembles a giant vending machine. Alibaba says buyers can use their phones to browse through the cars and choose to either immediately test drive or buy a vehicle, which would be delivered to them on the ground floor.

    Shoppers with good credit would be able to drive away after a 10 per cent down payment, then make monthly payments through Alibaba’s affiliate Alipay.

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  • L Catterton Asia to form JV sportswear

    L Catterton Asia to form JV sportswear

    LVMH-backed private-equity firm L Catterton Asia has launched a JV between two of its portfolio companies, Chinese menswear fashion group GXG, and Australian compression activewear company 2XU.

    The strategic partnership will enable both companies to capitalise on the growing fitness and sportswear market in China.

    Established in 2007, GXG has a portfolio of four brands – GXG, gxg.jeans, gxg.kids and Yatlas. Its lines are available in more than 2100 stores across China, as well as online through third-party platforms such as Tmall and VIPshop. Its e-commerce GMV is expected to surpass RMB2.5 billion (US$378.5 million) this year, an increase of more than 50 per cent over last year. The company also achieved record sales of RMB485 million in this year’s Tmall 11.11 shopping festival.

    Since acquiring a controlling stake in GXG last year, L Catterton Asia has been working with the company’s management team to expand into new categories. It has supported GXG by offering extra collaboration opportunities and helping with global expansion.

    “GXG and 2XU are led by seasoned management teams with deep understanding and complementary knowledge of the fashion and retail industries, and we look forward to continuing to work alongside and support both teams,” says L Catterton Asia chairman/managing partner Ravi Thakran.

    Founded in 2005, 2XU produces technical athletic wear that is endorsed by elite athletes internationally.

    “Since L Catterton Asia’s investment in 2013, 2XU has experienced significant growth and I am grateful for their partnership as we continue to expand into attractive markets around the world,” says 2XU CEO Paul Higgins.

    With more than $14 billion of equity capital across six fund strategies in 17 offices globally, L Catterton has a team of more than 140 investment and management professionals. L Catterton Asia (previously L Capital Asia) was launched in 2009 and manages more than $ 1.6 billion across two private equity funds, and more than $2 billion including co-investments. It has offices in Singapore and Mauritius, with a regional advisory presence in Hong Kong, Mumbai and Shanghai.

    L Catterton Asia draws on its strategic relationship with Groupe Arnault and LVMH across the investment process. Its investments include Jorya Group, Marubi, Pepe Jeans, Sasseur, Trendy International and YG Entertainment.

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  • Danone links with JD to grow west China business

    Danone links with JD to grow west China business

    Danone Waters China, a subsidiary of Danone Group, is tapping into the distribution network of China’s largest retailer and e-commerce giant JD.com as the French company expands its coverage of Southwest China.

    A shared warehouse will be built in Chengdu, the capital of China’s southwestern Sichuan province, that will store and manage inventory, merging Danone’s online and offline operations.

    “China is a market with both huge opportunities and major challenges when it comes to managing distribution across our many sales channels,” said Hanbin Lyu, vice president of Danone Waters China. The company has seven factories in China across six regions.

    Lyu said JD.com’s in-house logistics network and supply chain management technology would help Danone improve demand planning, inventory placement, warehouse and transportation management to increase efficiency across different sales channels.

    The Danone tie-up furthers JD Group’s push into the logistics business following the creation of JD Logistics earlier this year as a stand-alone business unit. JD operates China’s largest in-house fulfillment and last-mile delivery network with 405 warehouses.

    As part of the joint effort, JD will leverage its big data capabilities through the analyzing of billions of data points. The technology enables JD to help suppliers more accurately predict the ebb and flow of demand, and more efficiently manage stock. JD’s expertise in the area can help limit stock outs, waste, and higher logistics costs for last-minute replenishment that have traditionally plagued retail as a result of multiple layers of handling by a mix of third-party providers.

    “We believe our infrastructure and technology will benefit shippers and industries, including those that don’t sell directly on our platform,” said Wei Tang, vice president of logistics at JD. “Online retailers like JD can lead the way to more efficiency, transparency and reliability in commerce, benefitting both customers and suppliers.”

    A rapidly developing trend in China is the fast-growing demand for fresh products. During its Single’s Day promotion, JD.com sold over 20,000 tons of fresh products that included highly perishable items such as 500,000 tiger shrimp from Thailand and 2 million hairy crabs. There was also huge demand for Australian sirloin, Chilean frozen salmon, and Vietnamese base fish.

    The efforts in logistics are part of JD’s broader “retail as a service” strategy. As changing consumer demands force changes throughout global retail models, large-scale e-commerce companies are working on the development of an efficient and advanced supply chain.

    The need for efficiency is crucial to facilitate the growing cross-border e-commerce sales in China that are expected to reach $100.17 billion by the end of 2017, with the average spend per cross-border digital buyer at $882, according to eMarketer research. Average spend per buyer has increased because of growing awareness of overseas brands in China, as well as better logistics and the perception that foreign goods are of better quality.

    “The factors fueling the trend toward greater cross-border shopping are nothing new, as the average Chinese consumer is now more tech savvy, more exposed to foreign brands through overseas travel and the internet and, crucially, more willing to spend,” said Shelleen Shum, senior forecasting analyst at eMarketer.

    “With shopping sites such as TMall Global, JD Worldwide, and Kaola adding more brands to their offerings and improving cross-border logistics and processing times, there is an opportunity for foreign brands to tap into the demand for high-quality products, especially in categories like baby, maternity, health, and beauty.”

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  • Dooney & Bourke launches on Tmall Global

    Dooney & Bourke launches on Tmall Global

    American heritage handbag and fine leather-goods brand Dooney & Bourke has launched into China via Tmall Global.

    With more than 1000 retail stores throughout the US and 60-plus boutiques internationally, its foray online in China could be a hint at a physical presence to come.

    Dooney & Bourke is known for its designs, materials and craftsmanship, says director of advertising and PR Liz Kane.

    She describes the Tmall Global opening as a major milestone for the company.

    In its new online store, the brand will offer Chinese shoppers a range of handbags and leather accessories such as wallets, phone cases and wristbands.

    Founded in Connecticut in 1975, the brand has a client list including celebrities Indian actress Freida Pinto, singer Lady Gaga and actress Zooey Deschanel.

    Formerly Taobao Mall, Tmall Global was launched by Alibaba in February 2014 as a crossborder marketplace for foreign brands and merchants to sell directly to Chinese consumers.

  • Abercrombie launches on Alibaba’s Tmall

    Abercrombie launches on Alibaba’s Tmall

    Abercrombie & Fitch has announced it is launching both its Abercrombie & Fitch and Abercrombie Kids brands on Alibaba Group’s Tmall this month. Abercrombie & Fitch Tmall is China’s largest platform for brands and consumers.

    Through Tmall, Alibaba reports reaching 454 million annual buyers. The core consumer is under 35 and shops primarily on their mobile devices. Abercrombie’s target customer is in their 20s and shops digitally.

    Pairing up with Tmall is a data driven move that should result in much needed financial success for Abercrombie as it continues to rebrand.

    Moving onto Tmall reveals insight into Abercrombie’s plans for chasing the Chinese consumer. Abercrombie recently opened a new retail concept flagship in Hong Kong’s Harbour City. Additionally, Abercrombie operates 10 retail stores across China.

    Abercrombie’s rebranding began with a revitalization of its retail concept. The brand describes its new retail concept as intimate and service oriented. To that end, Tmall offers the capabilities to make online shopping more individualized through marketing tools.

    Tmall offers live streaming options and big data options designed to personalize and streamline the shopping experience.

    “Alibaba Group places a strong emphasis on consumer engagement, which aligns with our focus on creating a unique online brand experience for our customers, as well as facilitating a seamless and frictionless shopping experience” said Fran Horowitz, Chief Executive Officer of Abercrombie & Fitch Co.

    Tmall has sold the Hollister brand since 2014. This month is the first time Abercrombie has put its namesake brands on the platform.

    Jessica Liu, President of Tmall Fashion, Alibaba Group said consumers both online and in China have “sought [the brand] out for some time.”

    Abercrombie will begin selling a full assortment of men’s, women’s and kid’s product on Tmall starting July 26.

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  • Grana expands into Mainland China, opens store on Alibaba’s Tmall

    Grana expands into Mainland China, opens store on Alibaba’s Tmall

    Today Grana, one of Asia’s fastest growing eCommerce disruptors in the apparel industry, with US $16 million in funding, announced its official launch into mainland China opening an online store on Alibaba’s Tmall – the largest business-to-consumer (B2C) retail platform in Asia.

    The Hong Kong-based startup has also announced global shipping, adding more than 50 new countries across Asia Pacific, Southeast Asia and Europe to introduce its obsession with high-quality fabrics and bring affordable luxury basics to millennial consumers. This expansion comes from direct consumer demand to ship Grana’s modern essentials cross-border into their countries.

    With today’s official entry into the Chinese market, the young startup aims to meet demand from the emerging middle-class seeking trusted quality goods at a lower price-point from online luxury and fast-fashion retail brands currently in the market.

    To drive its market penetration, Grana’s increasing brand awareness in the US – it’s biggest growth market and traction with celebrities including Gigi Hadid, Jessica Alba and Lily Collins, wearing its products for everyday looks to red carpet appearances, will be important factors to attract the Chinese consumer.

    “We appreciate the strong and strategic partnership with Alibaba supporting our expansion plans onto Tmall. It’s a pinnacle time for the company right now and it’s promising to see Chinese millennial consumers and online shoppers around the world becoming more sophisticated in how they shop, encouraging brands to disrupt the cost of quality goods across all sectors.

    It’s great, since this is our sweet spot. We now ship cross-border to over 60 countries and are well positioned to further drive the projected total revenue of eCommerce in Asia to double, over the next five years to US $1.4 trillion”, said Luke Grana, CEO & Founder at Grana.

    Grana’s flagship store on Tmall has been localised to provide the Chinese consumer with detailed information on product description pages that focus on its trusted and best-selling fabrics, garment production and key styles.

    Given the consumer preference for more guidance on size and fit, online shoppers will soon have access to customised size guides with measurement details sharing recommended sizing to purchase its modern essentials. This customised size guide is different to the size guide available on grana.com and more tailored for Chinese consumers.

    “We’ll be introducing our unique value proposition to Chinese consumers focused on sourcing the finest luxury fabrics from around the world, affordable pricing and direct shipping from Hong Kong.

    This will be crucial to break out amongst fast-fashion and luxury brands. On the Hong Kong front, our team can now introduce Grana to Chinese tourists who already visit our showroom and communicate that we ship to their city. It means they can try items offline, place an order and have it delivered by the time they get home – the aim is to bring these offline customers, online for their second purchase”, says Grana.

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