Tesco Weighs Exiting Asian Retail Market October 30, 2014: 12:00 AM EST 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, © WantChinaTimes.com

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Unilever Says Weak Demand In China Hurts 3Q 2014 Sales October 23, 2014: 12:00 AM EST 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. John Ficenec, "Unilever warns on 'sharp' China slowdown", The Telegraph, October 23, 2014, © Telegraph Media Group Limited

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Unilever Paints Gloomy Picture Of World Economy October 23, 2014: 12:00 AM EST 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. Simon Zekaria, "Unilever Surprised by Extent of Global Slowdown", The Wall Street Journal, October 23, 2014, © Dow Jones & Company, Inc.

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Rejoice Launches Divorce-Themed Online Ad In China October 15, 2014: 12:00 AM EST 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, © Crain Communications Inc

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L'Oreal Tops List Of Cosmetics Brands With Largest Online Ad Spend In China October 14, 2014: 12:00 AM EST 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, © Incitez Pte. Ltd

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Costco Says Will Use Alibaba's Tmall Ecommerce Platform To Open Online Store In China October 14, 2014: 12:00 AM EST 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. Sruthi Ramakrishnan, "Costco to enter China through Alibaba's Tmall", Reuters, October 14, 2014, © Thomson Reuters

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Amore Pacific Seeks Bigger Sales In China; Aims To Rise In World Cosmetics Market Rankings October 6, 2014: 12:00 AM EST 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. Park Si-soo, "Amore Pacific bets big on China", Korea Times, October 06, 2014, © koreatimes.co.kr

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L’Oreal Allowed To Market Reconstructed Skin Tissue In China September 29, 2014: 12:00 AM EST L'Oréal was granted a business license in China that will allow it to market its reconstructed Asian skin models through Shanghai Episkin Biotechnology. L'Oréal began producing reconstructed skin in 2008, using several different technologies that rebuild human epidermis tissue from Asian keratinocytes. The reconstructed skin is used to test cosmetic products and ingredients for safety, eliminating the need for animal testing. The Chinese Episkin model is produced by the L’Oréal Advanced Research laboratories in China. "L’Oreal Obtains A Business License For Reconstructed Skin Models Episkin In China", News release, L’Oréal , September 29, 2014, © L’Oréal

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Wal-Mart Says It Will Open Its First Shopping Mall In China September 4, 2014: 12:00 AM EST 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. Wang Zhuoqiong and Jack Freifelder, "Wal-Mart to build shopping center in China", China Daily, September 04, 2014, © China Daily Information Co (CDIC)

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Wal-Mart Seeks Growth In China's Ecommerce Market August 28, 2014: 12:00 AM EST 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. Shelly Banjo and Laurie Burkitt, "Wal-Mart Looks Online for Chinese Growth", Wall Street Journal, August 28, 2014, © Dow Jones & Company, Inc.

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China Goes After Celebrities Endorsing Products They Do Not Use August 26, 2014: 12:00 AM EST 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, © China Daily Information Co (CDIC)

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Amazon Expands China Operations By Setting Up Facilities In Shanghai Free Trade Zone August 20, 2014: 12:00 AM EST 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. Larry Darrell, "Amazon Ramps Up China Presence", Bidness, August 20, 2014, © Bidness Etc

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Etude House Opens China Flagship Store In Shanghai August 19, 2014: 12:00 AM EST South Korean cosmetics company AmorePacific’s low-cost brand Etude House opened its China flagship store in Shanghai on August 8, 2014. Featuring the theme “Princess Palace,” the store includes a “pink carpet,” a “Princess Mirror,” and “Pink Castle” shelves. Also, the store features a professional make-up artist ready to help shoppers who want to have a taste of the latest Korean make-up trends. "Etude House opens flagship store in Shanghai", Korea Herald, August 19, 2014, © Herald Corporation

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Excessive Lead In Baby Cereal Sold In China Prompts Heinz Recall August 19, 2014: 12:00 AM EST Food safety officials in China’s Zhejiang province found “excessive amounts of lead” in 1,472 boxes of U.S. food maker H.J. Heinz’s AD Calcium Hi-Protein Cereal for babies, prompting a recall. The company, which issued an apology to customers, said it would recall four batches of the cereal as a precautionary measure. Safety officials urged Heinz to compensate customers who had purchased the tainted cereal. Sui-Lee Wee, "Heinz recalls four batches of infant food in China", Reuters, August 19, 2014, © Thomson Reuters

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Chinese Shoppers See California As An Exporter Of High-Quality Foods August 18, 2014: 12:00 AM EST Food shoppers in China and Hong Kong are paying closer attention to nutrition, sustainability, safety and – logically enough – country of origin, a fact that is driving demand for better quality food products. That’s good news for California food exporters, who are perceived by the Chinese as high quality producers. California has exported about $4 billion worth of food products – fresh produce, health foods, organic foods and premium wines – to Hong Kong and China so far in 2014, a nearly 20 percent increase over 2012. Forecasters see a similar double-digit increase by the end of the year. Stephen Las Marias, "Hong Kong, China Food Imports from California to Exceed $4B amid Mounting Food Scares", Asia Food Journal, August 18, 2014, © Contineo Media Pte Ltd.

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Amore Pacific Reports Record Sales Growth In 2Q 2014 August 13, 2014: 12:00 AM EST 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, © Xinhua, english.news.cn

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Shenzhen Authorities Accuse Walmart China Of Selling Expired Meat And Recycling Used Cooking Oil August 8, 2014: 12:00 AM EST 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. Laura He, "Walmart China accused of using old meat, oil", Market Watch, August 08, 2014, © MarketWatch, Inc.

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Walmart China Plans To Expand Operations In Shenzhen August 6, 2014: 12:00 AM EST 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, © IGD Services Limited

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Future Of China’s Bakery/Cereals Market Looks Rosy August 6, 2014: 12:00 AM EST Market researcher Canadean predicts that China’s bakery and cereals market will be the second most valuable – at $47 billion -- in the world after the U.S. by 2018. The market is already the largest in volume. Per capita consumption of bread and cereals is still low, according to the researcher, which notes that the average Chinese has only 92 bakery and cereals “occasions” a year, far lower than Europe. The average German has 731 such occasions a year. Cakes, pastries and sweet pies currently account for 43.9 percent of China’s market share. "China: second most valuable bakery and cereals market by 2018", Canadean, August 06, 2014, © Canadean Ltd. Part of Progressive Digital Media Group Plc

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Wal-Mart Unveils Strategy For Regaining Growth For International Business August 5, 2014: 12:00 AM EST 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. Shelly Banjo, "Wal-Mart's Strategy to Jump Start Growth in China", Wall Street Journal, August 05, 2014, © Dow Jones & Company, Inc.

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Henkel's China Packaging Facility Gains Government Certification As Training Center July 31, 2014: 12:00 AM EST 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, © Henkel AG & Co. KGaA

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China's FMCG Market Slows Down Further But Stabilizes In 2014 July 17, 2014: 12:00 AM EST China’s fast moving consumer goods market grew 5.6 percent in terms of value for the 52-week period ending June 13, 2014, compared with the same period in the previous year, according to data from market research firm Kantar Worldpanel. Lower-tier cities were a major driver for the FMCG market’s total growth, with counties experiencing 8.9 percent or higher growth rates. Growth slowed down from 15 percent in the second quarter of 2011 to 4.7 percent in the second quarter of 2014. Consumers’ move to slow down their trading up to premium products is cited as one of the factors that caused the lower growth rate. "FMCG Growth Showing Signs of Stabilizing in The Latest Quarter whilst Local Retailers Gain Share", Kantar Worldpanel, July 17, 2014, © TNS UK Limited

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General Mills Sees China As A Bowlful Of Delicious Marketing Opportunities July 15, 2014: 12:00 AM EST General Mills says its new $15 million technical center in Shanghai, China, confirms its belief that the Chinese market presents a huge marketing opportunity for its cereals, snacks and other food products. The 75,000-square-foot center, one of several international technical centers it operates outside of headquarters in Minneapolis, Minn., gives the company the ability to take advantage of emerging consumer trends, build “bigger and better innovation pipelines”, and ensure food safety within its product lines. The center will develop snacks, convenient meals, yogurt and super-premium ice cream for Chinese consumers. Product R&D, food safety, nutrition research, and food sensory evaluation will all be housed there. Eric Schroeder, "General Mills opens technical center in China", BakingBusiness.com, July 15, 2014, © Sosland Publishing Co.

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China Arbitrator Rules Against Labor Complaint Against Wal-Mart June 26, 2014: 12:00 AM EST An arbitration committee in the city of Changde in China ruled against a labor complaint filed by the local chapter of All-China Federation of Trade Unions, a Community Party-sanctioned labor union, against Wal-Mart Stores, Inc. Union official Huang Xingguo said many of the complaining workers plan to appeal the arbitrator’s ruling, claiming they have not received fair compensation or timely notification about Wal-Mart’s closure of a store in the city in March 2014. Wal-Mart said it complies with China’s labor laws, treats its employees with respect, and appreciates that “the arbitrator has agreed through the decision.” Fanfan Wang and Laurie Burkitt, "China Panel Dismisses Labor Complaint Against Wal-Mart", Wall Street Journal, June 26, 2014, © Dow Jones & Company, Inc

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China's Consumers Lack Brand Loyalty, Study Reveals June 11, 2014: 12:00 AM EST Leading consumer brands are faced with low customer loyalty in China, according to a joint study by research firms Bain & Company and Kantar Worldpanel. Results of the study, which covered 40,000 households in mainland China, revealed a high churn rate among consumers, with the top 5 brands in each market segment seeing between 40–80 percent of new customers. Hair care brand Head & Shoulders, for example, saw its customer base expand 3 percent from 2011 to 2012; however, data revealed 45 percent of 2011 buyers did not return in 2012. Market penetration drives repurchase rates and market share, the study revealed. Tiffany Ap, "Chinese customers' lack of loyalty puts pressure on brands", South China Morning Post, June 11, 2014, © South China Morning Post Publishers Ltd.

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Coty Appoints Li & Fung As Distributor Of Some Brands In China June 3, 2014: 12:00 AM EST Coty Inc. appointed Li & Fung as distributor of some of its brands, including adidas, Rimmel, and Playboy, in China. Marking a change in Coty’s marketing strategy for mass-distribution brands in China, the deal will allow Coty to use Li & Fung’s expansive distribution network in the country, as well as the local distributor’s strengths in the go-to-market business. Coty also announced its plan to stop selling the TJoy brand and instead focus on its leading global brands, which have more potential for growth in the China market. According to the companies, the deal will take effect on July 1, 2014. "Coty Inc. And Li & Fung Announce A Distribution Agreement In China", PRNewswire, June 03, 2014, © PR Newswire Association LLC

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Wal-Mart Protests China Fines; Calls On Government To Do More To Ensure Food Safety April 13, 2014: 12:00 AM EST After being fined $9.8 million over the previous three years by Chinese authorities, U.S. retailer Wal-Mart told China’s regulators that they also need to improve their product safety rules and policies. Some of the retailer’s alleged violations include misleading prices, selling products that did not meet quality standards and selling donkey meat that was later discovered as fox meat. In China, unlike in the U.S. and most other countries, manufacturers are not accountable for food safety problems. Instead, foreign-owned retailers, Wal-Mart in particular, often bear the brunt of government regulators’ actions. In contrast, regulators do not frequently visit stores owned by local grocery companies or often issue fines against them. Some market analysts said Wal-Mart’s risky move has enough basis, especially after the retailer had implemented various steps to ensure the quality and safety of food products it sells in the country. Laurie Burkitt and Shelly Banjo , "Wal-Mart Cries Foul on China Fines", Wall Street Journal, April 13, 2014, © Dow Jones & Company, Inc.

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L'Oreal Buys Chinese Cosmetics Firm Magic Holdings International April 8, 2014: 12:00 AM EST L’Oreal acquired Chinese cosmetics company Magic Holdings International Limited, which marks the beauty company’s largest investment in the country so far. L’Oreal chairman and CEO Jean-Paul Agon said the deal strengthens the company’s leadership in China’s cosmetics market, currently the world’s third largest. Magic, which is China’s leading facial mask manufacturer, reported revenue grew 14 percent to €166 million in 2013. Currently the world’s number 1 beauty brand, L’Oreal reported its sales in China grew 10.2 percent to 13.28 billion yuan in 2013, marking the company’s 13th consecutive year of double-digit growth rate in the country. "L'Oreal's acquisition of Magic Holdings marks firm's biggest investment in Chinese beauty market", L'Oreal, April 08, 2014, © L’Oréal

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L'Oreal Opens Maison Lancome Store At Beijing Airport's Terminal 3 March 31, 2014: 12:00 AM EST L’Oréal Travel Retail Asia Pacific opened its Maison Lancôme store at the Beijing Airport’s Terminal 3, the world’s biggest airport terminal. Described by the company as an “important milestone,” the store features a podium design aimed at promoting the cosmetics company’s leading brands Advanced Génifique, Absolue, and Absolue L’Extrait. Featuring a high-tech skincare analysis machine, the store also includes the company’s first Wonderland merchandising showcase in Asia. Rebecca Mann, "L’Oréal Travel Retail opens Maison Lancôme at Beijing Terminal 3", The Moodie Report, March 31, 2014, © The Moodie Report

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Wal-Mart Sets Renovation Plans For China Stores March 25, 2014: 12:00 AM EST After opening stores in 28 shopping centers and two Sam’s Club stores in China in 2013, Wal-Mart plans to upgrade 55 existing retail stores in the country in 2014. In Anhui, a market the company entered in 2005 and where it operates 17 stores at present, Wal-Mart plans to invest 18 million yuan in renovating the nine-year-old Shuguang Hefei store. Also, Wal-Mart’s corporate social responsibility efforts in the region have helped it win many government honors and become the internship partner for both the West Anhui Institute and the Science and Technology of Defense Institute. "Wal-Mart invests in renovation of Chinese stores", FreshPlaza, March 25, 2014, © FreshPlaza

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China’s Lax Food Safety Enforcement Drives Western Retailers To Take Action March 20, 2014: 12:00 AM EST Inadequate government oversight of the food processing industry in China has forced Western food retailers like Walmart and Carrefour to take inspection matters into their own hands.  Walmart, for example, is boosting supplier inspections after a recent donkey meat recall – the meat turned out to contain fox DNA – and now conducts more DNA tests of meat in China than it does anywhere else in the world. The company expects to spend $16 million over three years to increase food safety in China after being stung by previous scandals there. The FDA is beefing up its inspection presence in China as well. The best solution, however, would be for the Chinese food processing industry to take more responsibility in food safety and for the government to strengthen its enforcement of standards. Liza Lin , "Keeping the Mystery Out of China's Meat", Bloomberg Businessweek, March 20, 2014, © Bloomberg L.P.

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Online Retailers In China Close Stores Selling Brand-Name Cosmetic Knockoffs March 20, 2014: 12:00 AM EST In response to customer complaints and a Chinese television report, Amazon China and online retailer China Dangdang have closed online stores purportedly selling fake brand-name skincare products. Dangdang shut two stores and refunded customer payments unconditionally.  Amazon said it had closed the stores in February after receiving complaints from customers. The fake products were knockoffs of L'Oréal and Estée Lauder cosmetics that were priced far lower than the real things. A representative of one of the closed stores admitted that the knockoffs came from a wholesale market in Beijing. Yang Jing, "Amazon, Dangdang shut down online stores selling fake skincare products", Global Times, March 20, 2014, © The Global Times

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Foodservice Traffic Up And Down Around The Globe March 19, 2014: 12:00 AM EST Foodservice traffic fell slightly in Canada, Italy, Spain, China and the U.S. in the last calendar quarter of 2013, mainly because of “challenging economies” and “low consumer confidence”, according to researcher NPD Group. The opposite was true for Russia, Great Britain and Australia, where foodservice traffic rose in the same period, due to nice weather, improved economies and “a burgeoning foodservice market”. (Traffic in Russia rose a healthy seven percent.)  NPD said quick service restaurants, on-premises dining, and chains powered growth in the strongest markets. Many markets were held back by a weak quick service segment. "Russia, Great Britain, and Australia Lead in Foodservice Traffic Growth in Last Quarter of 2013", NPD Group, March 19, 2014, © The NPD Group, Inc.

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Supermarkets In China Lose Market Share To Online Retailers March 18, 2014: 12:00 AM EST Supermarkets in China are facing growing competition from online retailers for their business, according to a report by the Communist Party-managed “Beijing Youth Daily” newspaper. According to the report, e-commerce has changed Chinese consumers’ buying behavior, adversely affecting traditional retailers’ business, with at least 80 percent of supermarkets and other retailers reporting higher management costs and declining gross margins. Since 2012, foreign-owned retailers, such as Wal-Mart, Carrefour, and Tesco, have seen sales slowdown, forcing them to close some of their stores. These companies have focused on selling refrigerated and frozen products, which attract customers and offer higher gross margins; however, online retailers are also seeking to expand their presence in this segment. "Supermarkets fighting losing battle with China's e-commerce", WantChinaTimes.com, March 18, 2014, © WantChinaTimes.com

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Asia-Pacific Set To Outpace Rest Of World Again In 2014, Euromonitor Says March 17, 2014: 12:00 AM EST Asia-Pacific is forecast to be the world’s fastest-growing region in 2014, the 10th consecutive year the region will hold the distinction, according to market research firm Euromonitor. Data revealed the region’s economy has grown 73 percent, with China alone adding $5.705 billion to its GDP, and the region’s population has expanded by 10.4 percent. This trend is expected to continue in the next 10 years, with the region’s population forecast to reach more than 4.3 billion. With China becoming the world’s largest economy, the region is likely to again outpace the rest of the world, with consumer spending rising above $4,000 per capita. While China has been the main factor driving growth in the region, other countries, such as India, Philippines, and Bangladesh, have also made it to the world’s list of the top 5 fastest-growing large emerging markets. Sarah Boumphrey, "Asia-Pacific: Set to Become the World’s Fastest-Growing Region for 10 Years Running", Euromonitor International, March 17, 2014, © Euromonitor International

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Tate & Lyle Acquires Chinese Polydextrose Fiber Producer March 13, 2014: 12:00 AM EST British food ingredients supplier Tate & Lyle PLC announced it is acquiring China’s Winway Biotechnology Nantong Co. Ltd, a producer of polydextrose specialty fiber. Polydextrose is a low-calorie bulking agent and dietary fiber. The acquisition provides Tate & Lyle with “an excellent platform” for accelerating the growth of its specialty fibers business in Asia Pacific. Tate & Lyle said it will invest in the factory and laboratories in Nantong (Jiangsu Province) over the next two years to expand capacity. The Nantong factory will be the company’s third polydextrose facility. The transaction is subject to governmental approval which is expected later in the year. "Tate & Lyle Acquires Winway Biotechnology, a Leading Chinese Polydextrose Business", News release, Tate & Lyle, March 13, 2014, © Tate & Lyle

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Unilever Buys Majority Stake In Chinese Water Purification Firm March 9, 2014: 12:00 AM EST Unilever says it has acquired a majority interest in Qinyuan, a high-tech Chinese water purification company founded in 1998. Unilever says the purchase is its biggest in China in 10 years. Qinyuan is one of the big players in China’s rapidly-expanding water purification market (20 percent annual growth since 2011). The company’s 2013 sales were 140 million euros ($194 million). With 2,500 employees, Qinyuan makes water purifiers, drinking water equipment and water treating membranes. A Unilever spokesman said the deal would double its water purification business. "Unilever buys majority share in China water business", Yahoo! News, March 09, 2014, via Agence France Presse -- English, © Agence France Presse -- English

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Walmart Closes Store In China March 5, 2014: 12:00 AM EST Walmart Stores closed a store in Chongqing, China, due to poor sales. With poor site selection being blamed for the store’s anemic turnover, the store closure marks the first for Walmart in the city, which the retailer entered 10 years ago. In November and December 2013, Walmart closed 10 stores across the country, due to poor sales and growing competition from online retailers. China’s online retail market accounted for less than 10 percent of total sales of consumer goods in 2013; however, the market posted 1.89 billion yuan worth in transactions during the year. Also, Walmart is facing serious competition from Chinese retailers. "Walmart closes store in China", Business Standard, March 05, 2014, © Business Standard Ltd.

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Tesco Stops Using Brand Name In China After Merger Of Local Operations With CRE February 25, 2014: 12:00 AM EST UK’s retailer Tesco will stop using its brand name in China following the merger of its operations in the country with state-supported retailer China Resources Enterprise Ltd. According to local media reports, the merger would combine Tesco’s stores and shopping centers in China with CRE’s 2,986 stores under the Vanguard brand name. Tesco, which began operating in the country in 2004 but failed to secure a strong position in the market, will hold 20 percent of the joint venture, while CRE will control the company through its 80 percent stake. The merged business will have an 8.6 percent share of the retail market in China. Wang Zhuoqiong , "Tesco brand reportedly to be dropped", China Daily, February 25, 2014, © China Daily Information Co (CDIC)

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Wal-Mart Revises Approach To Doing Business In China February 21, 2014: 12:00 AM EST Wal-Mart is changing its business strategy in China by closing some of its big-box stores and focusing on private-label products and imported goods. China is an important component of Wal-Mart’s international expansion goals, but the world’s largest retailer lags behind market leader Sun Art Retail Group Ltd. and state-owned China Resources Enterprise Ltd. The retailer forecast full-year profit that is lower than what analysts had expected for fiscal 2015. Factors that drove down the company’s revenue included weaker international sales, which fell 0.4 percent to $37.67 billion; the November–January operating income, which dropped 45.8 percent due to store closures in Brazil and China, and a charge related to the company’s termination of business deals in India. Walmart’s failure to understand Chinese consumers, who prefer foreign brands for reliability and quality, and its emphasis on “everyday low prices” concept hampered its ability to grow its business in the country, market analysts said. Nandita Bose and Adam Rose, "Wal-Mart's China syndrome a symptom of international woes", Reuters, February 21, 2014, © Thomson Reuters

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Avon Faces $132 Million Bill To Settle U.S. Bribery Invetigation February 13, 2014: 12:00 AM EST Cosmetics company Avon Products said it may have to pay up to $132 million to settle a bribery investigation by the U.S. government into its overseas expansion. In 2011, the U.S. Securities and Exchange Commission and the U.S. Department of Justice began a probe into allegations of improper payments in China. Conducted under U.S. law as defined by the country’s Foreign Corrupt Practices Act, the investigation has caused Avon at least $300 million so far. Avon reported sales declined 10 percent to $2.7 billion while operating losses rose to $17 million, driven by weaker sales in North America and in emerging markets including Mexico, Russia, and China. "Avon Products may face £80m bill to settle bribery investigation", The Guardian, February 13, 2014, © Guardian News and Media Limited

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JD.com's IPO Prospectus Comes With Too Much Candor February 4, 2014: 12:00 AM EST Chinese online retailer JD.com filed the prospectus for its planned $1.5 billion U.S. public offering with the Securities and Exchange Commission. Apparently, the paperwork came with too much honesty, according to some observers. It detailed the company’s lack of experience in doing some of its businesses, such as Internet finance. It highlighted losses suffered by the company and warned potential investors it might not be able to make money. Also, the company admitted it is huddled by weak internal fraud controls and its financial reports may not be accurate. Its very strong sales growth, however, is expected to attract US investors. That is, if the company could overcome potential legal roadblocks and could actually get its shares listed in the country. Heather Timmons , "This Chinese online retailer’s IPO documents could be a bit too candid", Quartz.com, February 04, 2014, © Quartz.com

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China's Number 2 Online Retailer JD.com Files For U.S. IPO January 30, 2014: 12:00 AM EST China’s second-largest online retailer JD.com filed for an initial public offering of its shares in the United States. Formerly known as 360Buy, JD.com has raised $2.23 billion in the past six years, with notable investors including the Ontario Teachers’ Pension Plan and Saudi Arabia’s billionaire Prince Alwaleed bin Talal’s Kingdom Holding Co. Company founder and CEO Richard Liu controls about 46 percent of the company’s shares. In 2012, local media reports put a $7.3 billion for the company, which has tried to differentiate itself from rival ecommerce companies, including market leader Alibaba, by operating its own network of delivery providers and warehouses. Aman Shah, "Alibaba rival JD.com files for U.S. listing", Reuters, January 30, 2014, © Thomson Reuters

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Alibaba Reports Strong Net Profit Gain, Slower Revenue Growth In 3Q January 29, 2014: 12:00 AM EST Chinese ecommerce company Alibaba Group Holdings Ltd. reported net profit of $792 in the third quarter. Revenue increased 51 percent to $1.78 billion, significantly slower than the 61 percent growth reported in the previous quarter. For the third quarter of the previous year, Alibaba reported a net loss of $246 million, due to the $550 million charge to purchase some of its shares from Yahoo Inc., which currently owns 24% of the Chinese online company. Alibaba, whose coming IPO is expected to value the company at more than $100 billion, outpaced its competitors Tencent Holdings Ltd., which grew 34 percent; and Amazon.com Inc., which reported revenue grew 24 percent. Juro Osawa, "Alibaba Swings to a Profit but Revenue Growth Slows", Wall Street Journal, January 29, 2014, © Dow Jones & Company, Inc

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Advertising Spend Reaches Record High In Hong Kong In 2013 January 28, 2014: 12:00 AM EST Advertising spending in Hong Kong rose 9 percent to reach a record high of HK$43.1 billion in 2013, driven by the strong recovery in ad campaigns in the second half of the year. Data from media monitoring firm admanGo revealed banking and investment services was the top industry in terms of ad spending, while Procter & Gamble was the territory’s largest advertiser. In February 2013, the Hong Kong Advertising Association predicted a modest annual growth for the market, citing persistent factors affecting the economy, such as Samsung Electronics’ reduction of its advertising budget. Ad spending by cosmetics and skincare companies grew 10 percent to HK$3.6 billion, while the pharmaceuticals and healthcare industry’s ad spending rose 12 percent to HK$3.3 billion. Bien Perez , "Hong Kong advertising spending hits record on second-half rebound", South China Morning Post , January 28, 2014, © South China Morning Post Publishers Ltd

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Wal-Mart Plans Upgrades For Vendor Compliance In China January 28, 2014: 12:00 AM EST Wal-Mart Stores Inc. said it plans to upgrade its vendor compliance process in China, after it was accused by state-owned China Central Television of violating the country’s vendor permit policies to jack up its profits. As part of its compliance efforts, Wal-Mart will expand its inspection of vendors’ fulfillment documents for products sold at its stores and will collect more documents to verify product labels, test results, and product claims. Wal-Mart defended its compliance practices, saying accelerated product approvals are only for current suppliers. The company has encountered various obstacles in China, an important growth market for the U.S. retailer. Laurie Burkitt, "Wal-Mart Boosting Compliance in China", Wall Street Journal, January 28, 2014, © Dow Jones & Company, Inc.

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China Tightens Rules For Country's Online Market January 27, 2014: 12:00 AM EST China plans to implement stricter rules governing the country’s fast-growing ecommerce market. Driven by the millions of Chinese consumers who are discovering the online market for the first time, China’s ecommerce sector grew from $3 billion in 2009 to $64 billion in 2012, according to a report by the “South China Morning Post” newspaper. With the country set to become the world’s second-largest online retail market, with the business-to-consumer submarket forecast to expand by an average of 34 percent each year, the government was compelled to flex its regulatory muscles. Several laws covering the market will take effect on March 15, 2014. Sophie Song, "China E-Commerce: Regulations For Protecting Consumers And Fighting Counterfeit To Take Effect In March", International Business Times, January 27, 2014, © IBT Media Inc.

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Doing Business In China Gets Harder, Becomes Less Attractive For Foreign Companies January 25, 2014: 12:00 AM EST Foreign companies are finding it harder and less attractive to do business in China as economic growth slows down and costs rise. China’s government is expanding its restrictive economic policies to include more industries in addition to banking, brokerage, and Internet. As competition heats up further, with local brands developing high-quality and innovative products, some foreign companies, such as Revlon, Best Buy, and Media Markt, have left the country. Others reduced their exposure and operations, such as L’Oreal’s decision to stop selling its Garnier brand of cosmetics and retailer Tesco’s joint venture with a state-owned enterprise. Some companies that chose to stay are facing difficulties, such as IBM, which reported a 23 percent drop in China revenue in the last quarter of 2013; and French drinks company Remy Cointreau, which said sales of its Remy Martin cognac dropped by 30 percent in the first three quarters of 2013. "China loses its allure", The Economist, January 25, 2014, © The Economist Newspaper Limited

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Alibaba Poses Most Serious Threat Yet To Amazon's Business Model January 21, 2014: 12:00 AM EST China’s online retailer Alibaba poses the most serious challenge yet to Amazon.com and its business model, which is based on the so-called three pillars —operating with low margins, helping customers find deals easily, and creating a lineup of customer-oriented services. Alibaba threatens Amazon with its no margins business; it earns money not from sales but from advertising and premium services. Unlike Amazon, Alibaba keeps its customers and operations away from online search engines. Also, Alibaba creates revenue no matter what kind of customers is accessing its online store. There are two ways that Amazon can respond to Alibaba’s disrupting effect: first, the online retailer can ignore the challenge and instead continue focusing on its most profitable customers and, second, it can create an independent business unit that would adopt Alibaba’s revenue model. Juan Pablo Vazquez Sampere, "Alibaba: The First Real Test for Amazon’s Business Model", Harvard Business Review, January 21, 2014, © Harvard Business School Publishing

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L'Oreal Stops Selling Garnier Cosmetics In China January 8, 2014: 12:00 AM EST L’Oreal SA stopped selling its Garnier brand of cosmetics in China and will instead focus on its other brands. Citing the slowing market in China as the reason behind its move, L’Oreal said it will continue pushing its L’Oreal Paris and Maybelline New York brands in the country. A week before L’Oreal’s announcement, its American rival Revlon Inc. said it plans to withdraw completely from the China market. Currently valued at $25.9 billion, China’s cosmetics market is the world’s third largest and is forecast to grow 63 percent in the five-year period ending 2015 by market research firm Euromonitor. While it remains L’Oreal’s third largest market where it holds a 17 percent share, China’s cosmetics market is “slowing, although still dynamic,” the company said. "L'Oreal ends Garnier sales in China amid slowdown", Reuters, January 08, 2014, © Thomson Reuters

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