Unilever Says Weak Demand In China Hurts 3Q 2014 Sales

Unilever said sales grew 2.1 percent in the third quarter of 2014, weaker than analysts' 3.7 percent growth forecast. According to the company, sales in China dropped 20 percent after retailers reduced their stocks due to slowing demand. The slowdown in China adversely affected the company's global sales, Unilever CEO Paul Polman said. Sales volume rose 0.3 percent, compared with the 1.8 percent growth expected by analysts.

"Unilever warns on 'sharp' China slowdown", The Telegraph, October 23, 2014

Wal-Mart Says It Will Open Its First Shopping Mall In China

Wal-Mart Stores Inc. said it plans to build its first community shopping center in China. To be built in the city of Zhuhai in Guangdong province, the shopping center will be named The Zhuhai Mall and is forecast to cost 600 million yuan, or $97.9 million. It will occupy a total area of 100,000 square meters and will include at least one Sam’s Club store, according to Walmart China.

"Wal-Mart to build shopping center in China", China Daily, September 04, 2014

Tesco Weighs Exiting Asian Retail Market

Tesco is planning to sell its Asian operations after seeing its profit and market share decline. Richard Broadbent resigned as chairman of the world's third-largest retailer following reports of a probe into the company's alleged accounting improprieties, which saw the company inflating profit announcements. Mistakes in international investments by Tesco, which posted a 41 percent drop in operating profits and more than 90 percent in pre-tax profits in the first half of 2014, also played a significant role in the company's existing problems, according to Planet Retail analyst David Gray. In May 2014, Tesco sold most of its China operations to state-owned China Resources Enterprise.

"Tesco may spin off Asian operations after ceding control of China arm", WantChinaTimes, October 30, 2014

Unilever Paints Gloomy Picture Of World Economy

Though Unilever has been ringing alarm bells about the worsening world economy for some time, it now acknowledges the situation is gloomier than it once thought. Chief Financial Officer Jean-Marc Huët says the company’s sales are sagging in every product category – including personal care, food, refreshment and household care – all over the globe. The glum assessments are echoed by policy makers. The International Monetary Fund trimmed its growth forecast by 0.002 percent while warning of the possibility of Europe re-entering a recession. China’s third quarter economy grew at the slowest pace in five years. “We are in a tougher environment. There is no other way to put it,” Huët said.

"Unilever Surprised by Extent of Global Slowdown", The Wall Street Journal, October 23, 2014

L'Oreal Tops List Of Cosmetics Brands With Largest Online Ad Spend In China

L'Oreal spent RMB12.9 million, or $2.1 million, in online advertising in China in August 2014, making the company the top online advertiser for the cosmetics market during the period. Overall online ad spending by cosmetics brands in the country reached over RMB120 million, or $19.55 million. The top 3 online advertising channels during the period were online video, web portals, and fashion websites.

"China Top 10 Cosmetic Brands by Online Ad Spend in August 2014", ChinaInternetWatch.com, October 14, 2014

Amore Pacific Seeks Bigger Sales In China; Aims To Rise In World Cosmetics Market Rankings

South Korea-based Amore Pacific aims to become the number 7 cosmetics  company in the world. Ranked 17th in terms of sales in 2013, according to Women's Wear Daily, the company hopes to achieve its goal by expanding its operations in China and the remaining parts of Asia-Pacific region. In the quarter ending June 30, 2014, the company saw sales jumped 21 percent year on year to 966.7 billion won, with operating profit ballooning 69 percent to 151.1 billion won. Also, the company plans to come up with more products designed for the China market, Amore Pacific chairman Suh Kyung-bae said.

"Amore Pacific bets big on China", Korea Times, October 06, 2014

Rejoice Launches Divorce-Themed Online Ad In China

Procter & Gamble's haircare brand Rejoice launched its “believe in love again” online video commercial in China. Shot in Hong Kong by director David Tsui, the video tells the story of a divorcing couple. Advertising agency Leo Burnett Hong Kong created the hashtag #IBelieveInLoveAgain to promote the marketing campaign.

"This Moving Chinese Film About Divorce Is Actually a Haircare Ad", Creativity Online, October 15, 2014

Costco Says Will Use Alibaba's Tmall Ecommerce Platform To Open Online Store In China

American retailer Costco Wholesale Corp. said it plans to open an online store in China using the Tmall online marketplace operated by Alibaba Group Holding Ltd. Aimed at offsetting slowing sales at its home market, the warehouse operator's Tmall store will sell branded products, including food and healthcare products, and own-brand products under the Kirkland Signature private label. Tmall features virtual storefronts and payment platforms for sellers, which encouraged several Western retailers, such as Inditex, Burberry, and ASOS, to join the online marketplace.

"Costco to enter China through Alibaba's Tmall", Reuters, October 14, 2014