L'Oreal Names Rinderknech CEO Of China Business

L’Oreal appointed Stephane Rinderknech as CEO of L’Oreal China. He succeeds Alexis Perakis-Valat, who will remain as EVP in charge of the Asia Pacific zone and member of L’Oreal’s Executive Committee in Shanghai. Rinderknech will remain head of L’Oreal China’s Consumer Products Division.

"New appointment L’Oréal China", L'Oréal, February 25, 2016

Alibaba-Tencent Rivalry Now Reaches China's Energy Industry

China’s largest Internet companies, Alibaba Group Holding Ltd. and Tencent Holdings Ltd., expanded their rivalry to include the country’s oil and gas industries. Alibaba agreed to provide China National Petroleum Corp., the local oil and gas production giant, with Internet-based services. Alibaba’s deal came after Tencent signed in August 2014 a collaboration deal with China Petroleum & Chemical Corp., which operates more than 30,000 fuel stations across the country, in areas including mobile payments and media marketing.

"Alibaba and Tencent Extend Their Web Battle to the Gas Station", Bloomberg Business, March 10, 2016

Wal-Mart Bribery Probe Is Nearing Completion, U.S. Prosecutors Say

U.S. prosecutors are nearing completion of their international probe into bribery allegations against Wal-Mart Stores Inc. During the four-year investigation, which covered Mexico, Brazil, India, and China, U.S. Justice Department officials have faced various challenges, including in Mexico where results of investigation were too old to be used as evidence. In China, prosecutors saw their work hampered by the country’s disclosure rules and lack of evidence. Wal-Mart has promised to cooperate with U.S. authorities and spent almost $750 million on its own probe and on reorganizing its compliance operations.

"Wal-Mart Probe in Final Lap With Scant China Findings", Bloomberg, March 18, 2016

China Revises Taxation Rules For Imported Goods Sold Online

China is amending its tax rules for imported products sold online by removing a special tax, also known as parcel tax, previously imposed on such goods. Replacing the parcel tax will be value-added and consumption duties that are at present levied on most products sold in the country. According to China’s Ministry of Finance, however, the new tax will come with a 30-percent discount. In January 2016, China expanded a pilot program, which allowed a port district in the city of Hangzhou to trade imported goods at lower rates. Online sales of imported goods in China have expanded at a CAGR of 63 percent in the five-year period ending 2015 to reach 638 billion yuan, or $98 billion, accounting for 17 percent of the country’s total online retail sales, data from Mintel Group Ltd. revealed.

"China Changes Online Import Tax Rules, a Move to Help Cosmetics", Bloomberg Business, March 25, 2016

Walmart Unveils Expansion Plans In Southern China

Walmart plans to build eight new stores and a distribution center in China’s south region. Following the retailer’s signing of a cooperation memorandum with the local government of Dongguan, an industrial city near Hong Kong and Macau, the planned facilities are part of Walmart’s expansion in the region. According to the retailer, the planned expansion will create more than 3,000 new jobs in the city in the next five years.

"Walmart expands in southern China", Retail Analysis, March 07, 2016

Mobile Commerce Accounts For Bigger Part Of Ecommerce In China, Analysts Report

Mobile sales accounted for almost 50 percent of ecommerce sales in China in 2015, according to eMarketer. Data from Analysys International Enfodesk revealed mcommerce accounted for almost two-thirds of retail and consumer-to-consumer ecommerce sales in China in the fourth quarter of 2015, an increase of 55.5 percent from the previous quarter. In 2016, eMarketer predicts retail mcommerce sales in the country will grow 51.4 percent, accounting for 55.5 percent of retail ecommerce sales in China for the year.

"Ecommerce Turns into Mcommerce in China", eMarketer, March 23, 2016