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Adidas to build new Asia-Pacific headquarter in Shanghai Adidas announced a plan for Asia-Pacific market this month to build a new Asia-Pacific headquarter in Shanghai to grapple with ever-changing demands of shoppers and market trend, corralling The Great China, Japan, Korea and South-east Asia and Pacific region into a holistic Asia-pacific market. Adidas CEO Kasper Rorsted and Managing Director of the region are present at the opening ceremony with its brand ambassador David Beckham. The Shanghai location is playing as a base of the company’s Asia-Pacific region to help it expand the fastest-growing market with more shares than North-America. Adidas has planned 10,000 new openings in China this year, just as it has added in the country last year.
Hema Fresh is an amazing shop that Alibaba has explored for two years in the new retail. It is not only a leading brand in the new retail for Alibaba, but also the first to achieve a large scale profitability in the new retail. Hema Fresh, as a platform in new retail, has opened 13 stores covering Beijing, Shanghai, Ningbo, and one store traffic rose the highest point-20 thousand visitors for a day. Despite that it has been in operation only for 17 months, Hema Fresh has made substantial gains. Many renowned developers express the tremendous interest in Hema, making it in hot pursuit. You can have a taste in site scene of the processing and your food can also be delivered in 30 mins. Omni-Channel Layout,Unique Pattern One of the biggest issues driving the decline of retail store traffic is various choices for customers. So how to attract customers? How to cut the cost? What is the most effective way? It is important to find a way direct impacting on customers. Hema Fresh find his way. Hema Fresh is a new retail, not a traditional retail or O2O. Its overall developing pattern is clear: off-line store is working for acquiring customers, and online store as the key point is focusing on home delivery pattern. At present, its online and offline sales respectively accounted for 50%, and online sales performance will attributes more to the sales in the future. Offline shopping combining with online shopping: online store is quickly and easily for customers to search stores and commodities, while offline store can meet customer's good experience. Retail must reach store and home very well to insure that goods can be timely and efficient engaged with consumers. At present, the main path of transferring traditional retail into a new retail is to change the omni-channel, and smart phone APP will be the key for omni-channel. Over the last two years, hundreds of Hema workers spared no effort to design their own unique sale system and their own APP just for Hema. From shopping, Alipay to APP order, we called cashless self-payment, which is the leader in the new retail. Various Formats, Fresh Food Hema is a new retail platform of data and technology, setting supermarket,catering and market into a store. Hema adhere to “Original Oversea Food” and “Local Food” purchase directly. Original Oversea Food Hema introduces high-quality fresh oversea food everyday delivered by dozens of flights from all over the world, insuring fresh food with the fastest speed at customer’ hands. Local Food: “Fresh daily” Fresh daily food only need about 8-9 hours to prepare: pick vegetable (last night) - package - start selling, and fresh vegetable are dated and in different packaging colors (corresponding to different color every day) , and with the brand new concept, customers can enjoy the freshest food everyday. As to the localized straight mining, after picking vegetables in the various vegetable bases , then night packaging, they will be on sales next morning. It just takes 8 hours during the whole process. Fresh vegetable are dated and in different packaging colors (corresponding to different color every day) With that brand new concept, you can enjoy the freshest food. Eating after buying. In Hema, customers could select cooking methods after buying the fresh food, waiting for a moment, then enjoying your delicious in the store. Free Delivery in 3 Kilometers within 30 Minutes Hema Fresh integrates with large data, mobile Internet, smart Internet of things, automation and other advanced technology and equipment, achieving the optimal matching among people, goods and place, from supply chain, storage to delivery, Hema has its own complete logistics system, which greatly enhance the logistics efficiency. Hema District House According to the Hema relevant persons, official customer service have received more than 1000 calls from developers hoping to cooperate with it. A new word “Hema District House” appeared in Shanghai Morning News. In order to eat Hema fresh food, one Shanghai residence, who is a Hema loyal fans, move to a house nearby Hema. Hema Strong SKU provides a foundation of ingredients, condiments or staple food. Hema also supplies finished or semi-finished products for young customers who have no time or can’t cook, and Hema APP has lots of teaching videos.
Watsons owned by Li Ka-Shing plans to open 4 store everyday. Last years Watsons sales increased by 22% in China, which is the fastest growing market. Malina Ngai who is the CEO of Watsons said that we plan to open 1,400 health and cosmetic Watsons and Superdrug stores, which over a third stores will be located on China, because Watsons and Superdrug in China is so popular that we could recover the costs within one year. In stark contrast to Watsons, these luxury brands, like Mark& Spencer, LV, Burberry, is on the decline. The secret of success is site selection and rent. Watsons set up stores at the large traffic place, like train station and street, not the expensive shopping center, which is good for lowering the cost, more accurately, the rent. We all know that Chinese rent is a major concern for brands, and make retailing stores uncovering the cost within 2 or 3 years. Euromonitor, a research institution, reported that Watsons has more than 3000 stores in over 430 cities, accounting for nearly 30% of whole cosmeceutical market. But when it comes to online stores, the sale is overshadowed, which promotes Watsons to develop technology using＄160 million in the future 3 years, aiming to reach at least 40% growing rate each year for online stores.
The oversea road for Chinese restaurants is tough and struggling despite of the money future in oversea market. Wang Gang, the president of MeiZhou DongPo who just attended 2017 World Fashion Leisure Catering China Summit on June 25th, said although our American expansion is gradually putting on the right track, and 4 stores has already opened, over ＄20 million investment MeiZhou DongPo has lost to the amount of ＄100 thousand, so it’s not hard to see that the future for Chinese restaurants as ‘both promising and perilous’ Mr. Wang also mentioned that although American MeiZhou DongPo is 5 years old, still at a loss, so he would like to tell all Chinese restaurants that America has less tax rate ostensibly, but the high hidden cost exists, and many disputes are attribute to the differences in the cultural background between the work force and management, like recruitment and working taboos, employees’ age, marriage,appearance, height, etc. The management difference is so obvious that MeiZhou DongPo cannot use the same Chinese management system, whether it is training or product system, therefore, management cost is going high dramatically, for example, labor system in California clearly outlines that 1.5 times salary for 8 to 12 hours a day, 2 times salary for over 12 hours a day and 1.5 times salary for over 40 hours a week. Beverly store planned to open on July 1st of 2013, but have to delay on middle-December, because of the complex inspection from design drawing, decorative materials to all processes of construction , and all costs have to be taken by itself. Therefore, the difficulties can not be imagined for Chinese restaurants who want to go abroad, just because of the differences between east and west, and we could not simply copy brands and products.
Chinese shopping enthusiasm has attracted Korean retailing companies, like SHINSEGAE opened an official flagship store in TMALL recently. Although the variety of the goods ranges from garments,cosmetic, footwear, bags to electrical equipment and so forth, the selling products is limited in the flagship store, up to 441 products, including YADAH, Nokchawon, S．E．R, LABELLE, Ohui and so on. Caught up to 618 festival, but the sales was less than satisfactory, and the trading number of every product is not in high level, excepting for one of NOKCHAWON products which is up to 44 deals and another one product is 3 deals this month, others are between 1-2 deals, and most products are in zero situation. The data shows that Korean SHINSEGAE is the first department store in Korea, then changed its name into SHINSEGAE after acquired by Samsung. In the past few decades, SHINSEGAE was the leading brand in Korean department store industry. Brick-and-mortar stores are going down, the online expansion is the best steady and low-cost way for department store. Although Marks&Spencer withdrew from Chinese market, the online stores in JD.COM and TMALL are still running, so does Korea department store-e-mart.
Actually, this year, 618 will held his seventh birthday party, and not only his friend JD.COM, but also Alibaba, VIP,KAOLA,YMatou，etc, will join in this great party. Cao Lei, Director of the China E-Commerce Research Center(CECRC)sum up 6 characteristics and new tendencies: SERVICE: Changing from selling to meeting customers’ inner needs The slogan of TMALL was changed from “TMALL is Enough”to “Shopping in TMALL for A Good Life”, added the vision of trying their best to meeting customers inner needs. The first VR cinema hit the ground, which is the important symbol for GOME New Retail, and GOME is looking forward to open 100 VR cinemas in the future. CUSTOMER:Plebians to patricians In the past retail world, getting common people(plebians) gets the world, but now,after the New Retail appeared, every e-commerce is changing the customer orientation from common people to higher and higher people(patricians). SCOPE: From online to online plus offline In the past birthday party, 618 only invited online friends to attend, but now, he will invite more online and offline friends to join them in a big feast. Many offline stores are drived this year by the online promotion, like Sunning, more than 4000 stores will join in the 618 party. REGION: From home to abroad As more cross-border e-commerce join in, like Kaola, Mia,YMatou,etc, the party is given more international element,and more international brands are involved. PROMOTION：On to off turn into off to on In the past party, e-commerce(on) directed the brands(off) to promote, but this year, e-commerce makes use of the big date to direct the selling plan, category and inventory INFLUENCE:Catch up with and even surpass Double 11 Double 11 is the biggest shopping festival in China, and with TMALL’s attendance this year, 618 seems to be the second biggest festival in China.
Recently, Bailian Group announced Alibaba became the second biggest shareholders with 18% of Lianhua Market. The current market capitalization values about RMB 630million. O2O makes people more convenient, which is the new layout of Alibaba. New Retail-Business Ecosystem Bailian Group is a local large-scale comprehensive company in Shanghai, has over 5000 retailing stores in China, including large-scale comprehensive supermarket, supermarket, shopping center and convenience store(C-store), etc. Lianhua Market is the second tier company of Bailian Group, and has 3618hypermarkets and supermarkets in China by the end of 2016. Before putting forward the New Retail, Alibaba has already cooperated with dozens of traditional retailers. March of 2014, Alibaba invested HKD 5.37 billion in Intime, became the biggest shareholders; in 2015, Alibaba put RMB 28.3 billion in Suning, became the second biggest shareholders. After the cooperation with Lianhua, Alibaba willtake a big step forward in product, membership and service systems through Internet and big data, aiming toestablishan business ecosystemthat‘offline’is in focus, lining up in product, payment, logistics, membership, etc. with‘offline’. Community Business in the Spotlight Community business is to people what water is to people just becauseof thehurried lifestyle today. Young people doesn’t cook today, so C-storesare catching on to meet their demands. Cheap, morehealthy and deliciousbento is on the top of the store data. In Shanghai, two parties exist. Japan C-store, based on family, focuses on fresh food and self-brand product, which is heavy asset mode; focusing on franchise expansion, local C-store is in light asset operation. Once C-store meets Internet, a new mode appears.CITIC Group and Guoan Group is testing the water.For the service purpose, they created an online and offline community platform using innovativetechnology, likeInternet, cloud computing, big data, etc, achieving 15-minute walking service circle, local 1-hour door-to-door service, 24-hour store, full line reservation service on the Internet. What is noteworthy is that Alibaba may bring us different retailing experience after Alibaba took shares of Lianhua Supermarket, cause QIUK C-store belongs to Lianhua, and has already opened 1513 stores in China.
On May 25, Walmart announced it will step into JD.com as the first try in China e-commerce. It will provide more than 1700 best sellers in JD.COM. With the warehouse, deliveryman,drone using in JD.COM, customers will receive the products that day if they pay it before 11am. Walmart will hold 5 percent of JD.COM, cause Walmart e-commerce operational department has been sold to JD.COM in June of 2016 after establishing joint venture with Yihaodian. Since then, with the help of JD.COM and Yihaodian, Walmart is developing very fast. December of 2016, Sam’s Club and Global flagship came online in JD.COM; the same time, Walmart invested 50million dollars in New Dada(Joint Venture of JD.COM and a logistics company); April of 2017, Asda appeared in China, specially selling UK brands. As the quick online development in China, the proportion of holding stocks in JD.COM is also increasing, from 5% to 10.8% to 12.1% until this February. The key factor for Walmart online development is just in China. According to Nielsen Data, in China, the e-commerce contributed to 11% retailing sales, but in America, just 8%; the growth rate of e-commerce sales in China is up to 53%, but only 12% in America. According to the feedback of Chinese market, many oversea retailers are trying to change the development strategy in China, or even leave China. Carrefour from France announced net loss of 58 million dollars in 2016 in China, and recently, it starts with small stores. 131 Tescos and Vanguard(The second supermarket chain in China) has merged, ending the 10-year independent operation in China. Marks & Spencer shut down 10 stores in China due to consistently lose money. So yes, it is the right way for Walmart to step into JD.com.
Mr. Zhou Meng CEO of Five Star Appliance, president of Best Buy (China) Co., Inc., SVP of Best Buy Co., Inc. 2014/7/1 9:57:50
Mr. Jian Wei General Manager of Commercial Properties Department, Longfor Group 2013/7/4 9:51:55
Mr. Motomichi Shibata Deputy Managing Director of Mitsui Fudosan Consulting (Beijing) Co., LTD 2013/6/28 14:17:00