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Subject:
CHINA BUSINESS
Period: December 1, 2017 to February 1, 2018
Geographies:
Worldwide
Categories:
Comment & Opinion or Companies, Organizations or Consumers or Controversies & Disputes or Deals, M&A, JVs, Licensing or Earnings Release or Finance, Economics, Tax or Innovation & New Ideas or Legal, Legislation, Regulation, Policy or Market News or Marketing & Advertising or Other or People & Personalities or Press Release or Products & Brands or Research, Studies, Advice or Supply Chain or Trends
Contents
 

FMCG Spending Grows In China, Report Shows

Consumer spending on fast-moving consumer goods in China grew 5.5 percent during the 12-week period ending November 3, 2017, compared with the same period in the previous year, according to Kantar Worldpanel. Data from the market research firm revealed modern trade expanded 3.1 percent during the period, faster than the same period in the previous year. Also, smaller-store formats grew the fastest, with supermarket and convenience stores growing by 3.9 percent and 4.8 percent, respectively, data showed. Among China's largest retailers, Yonghui grew the fastest at 11 percent, while Sun Art group, owner of the RT-mart brand, grew 5.7 percent, reinforcing its market-leading status.

"FMCG in China reported new record recovery", Kantar Worldpanel, December 20, 2017

L'Oréal To Tap Into Strong Chinese Demand For Premium Cosmetics

Acknowledging a rise in demand for high-end cosmetics in China, L'Oréal’s luxury beauty and skincare brand Giorgio Armani Beauty plans to open an online store on the Alibaba Group’s Tmall platform this month, along with a separate store on Tmall's invite-only "Luxury Pavilion." The online stores will offer product browsing as well as interactive digital experiences such as scheduled in-person makeup sessions with beauty advisers.

"Even Giorgio Armani is Launching an E-Commerce Flagship on TMall", Jing Daily, January 02, 2018

 
Comment & Opinion  

Asahi Sale Of Stake In Tsingtao: Not A Good Deal For Investors

The Financial Times says investors in Chinese brewery Tsingtao and Japan’s Asahi will be disappointed that Asahi sold its near 20 percent stake in Tsingtao at a third below its closing price on December 21 to Chinese investment group Fosun. Investors had been monitoring the possible sale of Asahi’s stake, and were excited when Carlsberg had indicated interest. Carlsberg would probably have paid more for the stake because of the possible synergies, and would have created China’s second largest brewer with a quarter of the market. Fosun, on the other hand, is not likely to improve Tsingtao’s fortunes, and should have paid more for the stock.

"Asahi/Tsingtao: Falling Flat", Financial Times, December 21, 2017

Companies, Organizations  

Coca-Cola Invests $76 Million In New Chinese Bottling Plant

Coca-Cola has opened a new $76 million bottling plant in Hebel province in China. Plant, a joint venture with China partner COFCO Coca-Cola Beverages, is the 45th Coca-Cola plant in the country and the largest in northern China. Coca-Cola CEO James Quincey and COFCO Chairman Zhao Shuanglian attended the plant’s opening ceremony.

"Coca-Cola Opens Its 45th Bottling Plant in China, Investing $75.5m", FoodBev Media, December 06, 2017

China’s Fosun Group Looks Homeward: Acquires Asahi’s Stake In Tsingtao Brewery

China’s Fosun Group, which has been on an overseas buying spree lately, is turning its attention back to the homeland as it buys out Asahi’s stake in domestic brewer Tsingtao for $844 million. The buyout makes Fosun the second biggest shareholder in century-old Tsingtao with 18.1 percent. State-owned Tsingtao Brewery Group owns the rest. The deal is said to be consistent with Fosun’s major business areas and its focus on China’s expanding middle class. The deal also reflects a shift in direction resulting from government pressure on asset buyers to adhere to government strategies on infrastructure projects, rather than acquiring “frivolous baubles” like football clubs and entertainment companies.

"Fosun Buys out Asahi’s Stake in Tsingtao Brewery as it Turns its Acquisitions Back to its Home Turf", South China Morning Post, December 20, 2017

Chinese Now Buying as Much as Americans

The Straits Times, January 13, 2018

China’s VIP.com Lures Beauty Giants

L2 Inc., January 22, 2018

To battle Amazon, Kroger eyes Alibaba alliance

New York Post, January 24, 2018

Deals, M&A, JVs, Licensing  

Tingyi To Supply Its Products To C-Store Chain

Tingyi (Cayman Islands) Holding Corporation, which sells instant noodles, baked goods, and beverages in China, has agreed to supply its products to “Family Mart” convenience store chain operator Ting Chuan for the next next three years. Ting Chuan will provide sales promotion services for Tingyi's products under the agreement. Ting Chuan is a unit of Taiwan’s Ting Hsin International Group, a major (33.58 percent) shareholder of Tingyi.

"Tingyi (Cayman Islands) Holding Inks Deal To Supply Products To Ting Chuan", Nikkei Markets, December 14, 2017

Marketing & Advertising  

Alibaba Opens E-commerce Platform To Liquor Sales, With Suntory’s Help

Chinese e-commerce giant Alibaba is launching online sales of distilled spirits in partnership with Japanese brewer Suntory Holdings, which has opened a store on the Tmall e-commerce platform. Suntory’s U.S. distillery and group member Beam Suntory has begun selling Jim Beam and Maker's Mark bourbon whiskey, and Courvoisier cognac, on the site. Alibaba is also selling whiskey and other liquors in its physical stores, including RT-Mart superstores and Hema supermarkets, following its strategy of blending online and brick-and-mortar shopping. Beam Suntory opened a liquor store in China in July 2017.

"Suntory to Team with Alibaba to Sell Booze Online in China", Nikkei Asian Review, January 27, 2018

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