• Travel retail buoys The Estée Lauder Companies in final quarter

    Double-digit travel retail sales growth contributed to a strong quarter ended 30 June for The Estée Lauder Companies, and to a robust full-year performance for the US beauty house. For the year, the company achieved net sales of US$11.26 billion, up 4% year-on-year. Net earnings for the same period were ahead 2% to US$1.11 billion. For the three months ended 30 June, the company reported net sales of US$2.65 billion, a 5% increase year-on-year, posting sales gains in all geographic regions and product categories, except fragrance. SEE ALSO: Estee Lauder opens its largest travel retail store in China The company noted: “Fourth-quarter sales benefited from innovative new products and double-digit growth in several emerging and developed markets. The company also generated double-digit gains in its travel retail and online channels.” Net earnings for the quarter were US$93.5 million, compared with US$153.0 million last year.

  • Nestle to confirm Greater China head change

    Nestle has confirmed that its Greater China chairman and chief executive officer John Cheung will leave his current position and transfer to another important position in Nestle Group. Cheung previously held an important position in Wyeth nutrition business, which was acquired by Nestle, and boasted outstanding sales performance. In December 2012, Cheung joined Nestle due to the acquisition and in April 2014 he was appointed chairman and CEO of Nestle Greater China. Under Cheung's leadership, Wyeth nutrition business achieved continuous sales growth in China and reached CNY11 billion by 2015, making it the top provider in the Chinese infant formula industry. However, due to the depression of the macro economic environment, Nestle's Greater China performance was not equally as good as Wyeth over the past two years. Cheung's replacement is Rashid Aleem Qureshi, chairman of Nestle Indonesia. Qureshi also has market and sales background and previously worked in Egypt, Malaysia, and Singapore.

  • E-commerce to arrives for Chinese Ikea customers

    Ikea China announced that the company will launch its e-commerce business at the end of August 2016 and this business will first begin trial operation in Shanghai. With the new e-commerce service, consumers can login to Ikea's official website and purchase products via the shopping cart portal. Ikea's online and offline products will maintain the same categories and same prices. Prior to this, Ikea launched its e-commerce business in over ten overseas countries. In May 2016, Ikea China revealed to the local media that the company is expected to launch a multi-channel sales plan covering e-commerce in the second half of 2016. Ikea's e-commerce platform currently uses Ikea's own official website and the products will be delivered by Ikea's suppliers. As Ikea's entry point in China, Shanghai has three Ikea stores and relatively mature warehousing and logistics system. Therefore, the company will first implement trial operation in Shanghai and gradually expand its e-commerce business to more Chinese cities. However, no detailed timetable is available. In February 2016, Ikea China built its third large warehousing and logistics base in Tianjin. Zhu said that the Tianjin warehousing and logistics base can provide strong support for promoting e-commerce in northern cities in China. At present, Ikea has 20 stores in China and the company opened three new stores every year over the past two years. Ikea China also boasted outstanding performance in 2016 financial year. By August 10, 2016, Ikea stores received 83.46 million visitors, marking a growth of 20% compared with the previous financial year; and its sales reached CNY11.7 billion, an increase of 19.4% compared with the previous financial year. In addition, Ikea's individual store sales maintained double-digit growth in the Chinese market for five consecutive years.

  • Korea’s E-mart launches own brand in China

    E-mart announced August 22 that it has signed an agreement with Metro China to supply its private label items worth US$15,000. The largest discount seller in South Korea will introduce four items from its No Brand range, a no-frills lineup of its own, to be sold from September. This is the first time E-mart is exporting the range to an overseas offline store, not at E-mart branches, and the retail giant expects to be the stepping stone to diversify the distribution channels. E-mart’s private label products are already a hit in Mongolia and Vietnam, raising the hopes for the big box retailer. No Brand posted 600 million won ($533,000) sales in three weeks at its Ulaanbaatar branch that opened last month, accounting for about 7 percent of total sales. It contributed to 3 percent of sales at the Vietnamese outlet that opened in December. First introduced in April 2015 with nine items, No Brand now has over 300 products that range from butter cookies to car window wipers, and posted 63.8 billion won turnover in the first half of this year. Metro is a German retailer that dominates the global market as the third-largest franchise following Walmart and Carrefour. It operates over 2,200 outlets in 33 countries and has 88 in China.

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