Pinduoduo's Temu will shift its focus outside the United States; India could become the next luxury powerhouse; Domino's China expands again in May daily

(May 15, 2024)

Food and household goods

Domino's China expanded again in early May. Domino's China franchisee Domino's said it expanded again in early May, entering three cities in Taizhou, Huizhou and Jinhua within a week, and has expanded to 33 cities in China, operating more than 850 stores in China. The company said it plans to open its 1,000th store in China in the fourth quarter of 2024. Among them, the opening of the first stores in Huizhou and Jinhua broke the daily sales record of Dashi Co., Ltd. stores and reached a new high. At present, in the first 30 days of sales of Domino's global stores, Domino's shares occupy all the top 20 seats.

Shanghai Jahwa announced Lin Xiaohai as its new CEO. The board of directors of the company also nominated Lin Xiaohai as a candidate for the eighth board of directors, which will be submitted to the general meeting of shareholders of the company for deliberation. Pan Qiusheng, the former chairman of the board, resigned from the company's chairman, chief executive officer and other related positions for personal reasons. From 1995 to 2016, Lin Xiaohai worked for Procter & Gamble, where he was responsible for oral care and maternal and child care categories, key account team, channel management, e-commerce team, marketing department, etc., and served as vice president of Alibaba Group Holding Limited and general manager of Retail Connect Business Unit from 2016 to 2020. From 2020 to March 2024, he served as an executive director and chief executive officer of Sun Art Retail Limited.

Robust Medical: In the next 3-5 years, about 100 stores will be opened every year in the cotton era. Wenwen Medical said at the performance briefing that in 2024, there will be about 100 stores in the cotton era, and the franchise model has gradually matured after three years of exploration, and will be promoted in various regions in a planned manner, and will continue to maintain a rhythm of about 100 stores per year in the next 3-5 years.

Clothing & Beauty

The Shiseido Group reported a loss of 3.3 billion yen in the first quarter. Shiseido Group recently released its financial report for the first quarter of 2024, showing that sales increased by 3.9% year-on-year to 249.45 billion yen (about 11.58 billion yuan), and the net loss recorded 3.29 billion yen (about 150 million yuan). In terms of brands, the sales of its eponymous main brand Shiseido decreased by 5% year-on-year; IPSA sales down 22%; ANESSA's sales were no significant change compared to the same period last year; The rest of the brands all achieved growth, among which Drunk Elephant performed prominently, with sales soaring by 30% year-on-year, becoming the main growth point of Shiseido Group.

Tory Burch appoints three new executives. Tory Burch has officially appointed three new executives to strengthen its management team. Christophe de Pous will join Tory Burch on June 3 as president of North America, a new position. He will be responsible for the brand's retail, e-commerce and wholesale operations in the region. Emilia Fabricant has been promoted to President, Chief Sales and Global Supply Chain Officer. Effective June 3, Beverly Morgan will serve as Chief People Officer and will be responsible for driving all aspects of the company's recruitment, retention and employee engagement strategy and execution globally. All three executives will report to Pierre-Yves Roussel, CEO of the Tory Burch Group and husband of Tory Burch.

More than 10,000 Italian fashion stores closed in 4 years. Affected by the epidemic and the development of e-commerce, the Italian retail fashion industry has been hit hard. A total of 16,863 fashion stores have closed in the past four years, an average of 11 per day, leaving more than 13,000 employees unemployed. According to Giulio Felloni, president of the Italian Fashion Federation, about 70,000 fashion retail stores have closed in the last 10 years and 30,000 have been in a loss-making state.

India could become the next luxury powerhouse. According to a Barclays report, India, the world's most populous country, is poised to become the next frontier of luxury. Barclays expects luxury sales in India to grow by 15 to 25 per cent annually over the next seven years, to €23 billion to €38 billion, driven by a growing middle class, compared to about 2 percent of the global luxury market. Mumbai, New Delhi and Bangalore are home to about half of India's affluent population and have 90 percent of the country's luxury retail infrastructure, Barclays said. Locals have a clear preference for watches and jewellery over soft luxury.

Retail and e-commerce

In just over a year, Temu, an online shopping platform founded by a Chinese company, has become the most downloaded app in the United States. Temu, a low-priced goods app popular with U.S. consumers, will shift its focus outside the U.S. to the U.S. Temu, which is owned by Chinese e-commerce giant PDD Holdings, wants to manage risk and seek other sources of growth. TikTok's dispute with the U.S. government is one of the reasons for this shift. With slowing growth and increasing censorship of TikTok, Temu, a low-priced goods app based in China, is looking to reduce its reliance on American shoppers.

Alibaba Group announced its financial results for the fourth quarter and full year of fiscal 2024 ended March 31. The revenue in the fourth fiscal quarter was 221.874 billion yuan, a year-on-year increase of 7%. Among them, Taotian Group's quarterly revenue was 93.216 billion yuan, Cloud Intelligence Group's revenue was 25.595 billion yuan, International Digital Business Group's revenue was 27.448 billion yuan, Cainiao Group's revenue was 24.557 billion yuan, Local Life Group's revenue was 14.628 billion yuan, and Dawen's entertainment Group's revenue was 4.945 billion yuan. quarterly net profit was 919 million yuan, down 96% year-on-year; Non-GAAP, net profit was 24.418 billion yuan, down 11% year-on-year. The annual revenue was 941.168 billion yuan, the net profit was 71.332 billion yuan, and the net profit according to US generally accepted accounting principles was 157.479 billion yuan.

AliExpress: The South Korean market is growing rapidly, and 4 local leading logistics companies have been signed. According to AliExpress, with the rapid growth of AliExpress in the Korean market and the continuous influx of orders, AliExpress has expanded its cooperation with local logistics companies in South Korea and signed contracts with four leading logistics companies in South Korea, including CJ Logistics, Hanjin, Lotte Global Logistics, and Korea Post. These four logistics companies will be responsible for AliExpress's local delivery in South Korea for the next year.

Douyin e-commerce: Nearly 88% of orders in the past year have achieved fast refunds. The 2024 Douyin E-commerce Festival User Open Day announced that the overall delivery time of the Douyin e-commerce platform has been shortened by 11 hours in the past year, and nearly 88% of orders have achieved fast refunds. In 2023, more than 150,000 illegal products will be intercepted. In addition, Douyin Supermarket's next-day delivery "Late Arrival Must Compensation" has covered 102 cities across the country.

home

The Home Depot, a U.S. home building materials retailer, announced its results for the first quarter of fiscal 2024. Quarterly net sales of $36.418 billion fell 2.3% year-over-year, marking the sixth consecutive quarter of year-over-year sales declines as Home Depot struggles to overcome a weak housing market and declining demand for big-ticket goods. Net profit was US$3.600 billion, down 7.0% from US$3.873 billion in the same period last year.