Amore Pacific Reports Record Sales Growth In 2Q 2014

Amore Pacific reported operating profit jumped 69 percent to 151.1 billion won, or $147 million, in the second quarter of 2014, driven by strong sales in China. Revenue increased 21 percent to 966.7 billion won, compared with the same quarter in the previous year. Chinese consumers accounted for 25.9 percent of its second-quarter sales, compared with 20.6 percent in the first quarter of the year.

"Amore Pacific's operating profit surges in Q2 on brisk sales in China", English.news.cn , August 13, 2014

Henkel's China Packaging Facility Gains Government Certification As Training Center

Henkel was named as a China Packaging Industry Training Base by the China Packaging Federation, becoming the first multinational company to have received the recognition. Highlighting the company’s prominence in the country’s packaging industry, the distinction means the company’s packaging facility at Henkel’s China and Asia Pacific main location in Shanghai is now a government-certified packaging training center. Most of China’s packaging industry training centers are operated by academic institutions and government-owned packaging organizations.

"Henkel named China Packaging Industry Training Base", Henkel, July 31, 2014

China Goes After Celebrities Endorsing Products They Do Not Use

China plans to revise the country’s Advertising Law by banning celebrity endorsers from promoting products and services they themselves have not used. According to the proposed revisions, an endorser’s push for products being advertised “must be based on facts” and does not violate the country’s advertising law and other related rules and regulations. Also, if the endorser is found having knowingly endorsing a subpar product, the endorser shall be held jointly legally liable with the manufacturer. Also, his or her endorsement fee shall be confiscated, and will be fined 1–2 times the endorsement fee.

"China tightens rules on celebrity advertising", China Daily, August 26, 2014

Shenzhen Authorities Accuse Walmart China Of Selling Expired Meat And Recycling Used Cooking Oil

A Wal-Mart Stores Inc. branch in China’s Shenzhen City was accused by the state-owned Shenzhen City Channel broadcaster of selling expired meat and of recycling used cooking oil in preparing food. A video broadcast by the TV channel and allegedly recorded by an employee at the Walmart store showed “unhygienic practices” encouraged by the store management. Shenzhen city regulators took samples of meat and oil from the Walmart store, according to a report by the Oriental Morning Post newspaper.

"Walmart China accused of using old meat, oil", Market Watch, August 08, 2014

Amazon Expands China Operations By Setting Up Facilities In Shanghai Free Trade Zone

Amazon.com, Inc. is expanding its operations in China by establishing its presence in the Shanghai Pilot Free Trade Zone. Based on its deal with the zone operator, Shanghai Information Investment Inc., Amazon will set up its China headquarters in the free trade zone. Also, the company hopes its move will enable it to increase its customer base in the country. Amazon will also establish a warehouse so it can increase exports from Chinese companies, Shanghai Municipal said. Amazon, however, faces strong competition from Alibaba’s ecommerce stores Tmall and Taobao.

"Amazon Ramps Up China Presence", Bidness, August 20, 2014

Wal-Mart Unveils Strategy For Regaining Growth For International Business

Wal-Mart has to create a “platform for sustainable growth in China” and revive its operations in Brazil in order for the world’s largest retailer to regain growth mode for its international division, according to Wal-Mart international CEO David Cheesewright. During an interview with the Wall Street Journal, the CEO also said Wal-Mart’s international growth strategy should also involve reenergizing its Mexico business and becoming a leader in the ecommerce segment. Cheesewright acknowledged the problems encountered by the retailer, including the slowdown in sales growth at its 6,100 international stores to 1.3 percent in the year ending January 31, 2014. Wal-Mart also has to deal with slowdowns in consumer spending in Mexico and China and regulatory uncertainties in India and China.

"Wal-Mart's Strategy to Jump Start Growth in China", Wall Street Journal, August 05, 2014

Wal-Mart Seeks Growth In China's Ecommerce Market

Yihaodian, majority owned by Wal-Mart Stores Inc., is moving to expand its online retail operations in China. As part of its expansion moves, the online retailer increased the number of products it sells on its website, expanded its supply chain, and improved the usability of its mobile site to increase sales. Wal-Mart looks at online retail as a means of achieving growth in the country, something that it has so far failed to achieve with its brick-and-mortar business in China. Yihaodian, however, needs to compete with Alibaba, which accounted for more than half of the country’s online business-to-consumer market as of the second quarter in 2014.

"Wal-Mart Looks Online for Chinese Growth", Wall Street Journal, August 28, 2014

Walmart China Plans To Expand Operations In Shenzhen

Walmart China plans to expand its business operations in Shenzhen, location of the retailer’s headquarters, according to the company’s president and CEO Sean Clarke. Included in the company’s planned expansion moves are a pilot of its Online to Offline retail model, which includes leveraging its majority-owned online grocer Yihaodian. Also, Walmart plans to double the number of stores it operates in Shenzhen from the current 24 Supercenters and two Sam’s Club.

"Walmart to pilot O2O in Shenzhen", Retail Analysis, August 06, 2014