Yum Brands Faces Double Food-Safety Whammy In China

Yum Brands reported operating profit at its China operations feel 41 percent year over year in the first quarter of 2013, which contributed to an 8 percent drop in earnings per share. Publicized reports about food safety problems at the end of 2012 focusing on excessive use of antibiotics by the company's suppliers in China caused most of the revenue decline. Although shares of the company stock rose 7 percent after the public had forgotten much of the scandal, an outbreak of avian flu in China's Yangtze River Delta region poses another serious problem for the fast-food giant.

"Yum Fights the China Flu", Wall Street Journal, April 24, 2013

Hardcore Customers Lift Bottomline Of China's Biggest Online Retailer

China's online retailer Taobao reported that 1.08 million out of its 500 million registered customers are considered hardcore customers. According to data from the company, hardcore customers, also referred to as "hands-chopping customers", make at least 10 online transactions each month. These customers buy goods worth over 50,000 yuan or $7,981 each year. Men outspend women customers online one-to-two, according to Taobao manager Li Yan. In addition to hardcore online shoppers, there are 11 other types of customers who buy from Taobao, the company said. These include the 22.8 million people who usually shop online between 11:00 in the evening and 5:00 in the morning and are referred to as "night fighters" and the 1.3 million who are called "hoarders" and who like to buy goods enough to last for a year.

"Taobao's hardcore fans support company's growth", China Daily, April 11, 2013

P&G And Hong Kong Cancer Fund Partner To Launch Women's Health Campaign

Procter & Gamble partnered with the Hong Kong Cancer Fund to launch the P&G 6 Min Protects a Life campaign encouraging Hong Kong women to be more concerned with their health. The campaign also calls on women to have regular medical check-ups and to seek early treatment if cancer is detected. Some of P&G's leading brands, including Pantene, Olay, and Whisper, will take part in the campaign, which offers free breast and cervical cancer screenings for women aged 50 or older from low-income groups. Taiwanese model and actress Lin Chi-ling, who has represented the campaign in Taiwan for the last 18 years, will also be the Hong Kong campaign's ambassador.

"P&G and Cancer Fund launch awareness campaign in Hong Kong", Campaign Asia , April 09, 2013

Men In Asia Increase Use Of Cosmetics, UK And US Men Follow Suit

Men account for 51 percent of the personal grooming market in India and 41 percent in China. In contrast, men account for 22 percent of the makeup and skincare market in the UK and 23 percent in the United States. Market observers claim that men's concern about how their looks can affect their career opportunities is driving the market for men's grooming products. South Korean men, for example, see using cosmetics as a means of improving their looks and enhancing their career. Korean Air even sponsors cosmetics training sessions for its male employees. Although the UK and US markets for male grooming products are currently limited to hand creams and a few facial creams, there are signs of possible market expansion in the future, such as new moisturizers, scrubs, and flash bronzers from Clarins and L'Oréal.

"Why men are wearing make-up to get ahead at work", New Statesman, April 29, 2013

Cosmetics Giants L'Oréal And Estée Lauder Expand In China, Focus On Smaller Cities

Luxury cosmetics companies L'Oréal and Estée Lauder are expanding their operations into China's tiers 2 and 3 cities and smaller urban centers. Expansion into China's secondary cities, where 75 percent of the country's urban population lives and which account for two-thirds of retail sales, helped Estée Lauder grow its retail sales by 28 percent in the second quarter ending December 2012. Consumer companies find China's smaller cities more attractive than their larger counterparts because of their higher average disposable income per head.

"Cosmetics groups move deeper into China", The Financial Times, April 23, 2013

Wal-Mart Faces Growing Labor Unrest In China

Wal-Mart is faced with increasing employee activism demanding for workplace rights and an end to what workers claim are unfair labor practices in China. After opening its first store in the country in 1996, Wal-Mart now has 400 stores in 147 cities across China. Sales in China account for only 2 percent of Wal-Mart's global revenue; company executives, however, believe that the country is key to the company's future growth. Labor leaders have found that although the "Wal-Mart culture" encourages employee empowerment, along with it comes allegations of abuses that follow the retailer from the United States and almost all other parts of the world the company is operating. Former employee Wang Shishu, who was dismissed after he joined protests against the retailer's labor practices, symbolizes the growing employee opposition to Wal-Mart's alleged violations of labor laws.

"As Wal-Mart Swallows China's Economy, Workers Fight Back", The American Prospect, April 23, 2013

China's Cosmetics And Personal Care Markets Maintain Blistering Growth

China's cosmetics and personal care market expanded at a compound annual growth rate of 10.3 percent in the last five years to reach $15.2 billion in value, according to market research firm IBISWorld. Data revealed government regulations introduced by the State Food and Drug Administration in 2011, restricting the use of ingredients and additives, have forced vendors to reformulate or discontinue products. Rise in Chinese consumers' disposable income also helped grow the market; however, the low-base nature of growth means vendors have to compete in the lower-end market. Very few China companies compete in the high-end market, which has remained a near-exclusive territory of large Western companies, such as L'Oréal and Estée Lauder.

"China market continues to power ahead, but remains fragmented", Cosmetics Design, April 08, 2013