This week's spotlight:
Shiseido opens a third research site in China
Skechers is considering an IPO of its Asian business in Hong Kong
Nike wants to sell sneakers in the virtual world
IKEA Group's sixth shopping mall in China opens in Nanning
Li Jiaqifang denied data fraud
Nongfu Spring Zhong Shuishan topped the Forbes Chinese mainland Rich List for the first time
A number of listed food companies responded to the price increase plan
Coca-Cola will acquire bodyarmor, a sports drink invested by the late NBA superstar Kobe Bryant
Oreo cookies will increase in price in the United States
PepsiCo appointed Changan Xie as CEO of Greater China
Mengniu, Yili, Guangming, Nongfu Spring, Arowana, Colgate, MK parent company, Weifu, puma, Estée Lauder, Ralph Lauren, Under Armour, Gaoxin Retail, Suning Tesco and others released financial reports
Hot topics this week
1 Zhong, the founder of Nongfu Spring, became the richest man in Forbes Chinese mainland for the first time
On November 4, Forbes released its annual list of Chinese mainland richest people. With the good performance of the stock prices of two listed companies, Nongfu Spring and Wantai Biological, Zhong Shui, the founder of Nongfu Spring, topped the list of the richest people in the Chinese mainland in 2021 with a wealth value of 424.4 billion yuan.
2 Coca-Cola launches all-plant-based beverage bottles
Coca-Cola has recently introduced its first 100% plant-based plastic beverage bottle, excluding caps and labels. Made from paraxylene (bpx) and corn candy, the plant-based beverage bottle is produced using a new technology developed by plant-based plastics company Virus, and about 900 prototype bottles have been manufactured so far. In 2009, Coca-Cola launched a plantbottle made from 30% plant material.
3 COFCO Coca-Cola, Caleby, Yoshinoya price increase
COFCO Coca-Cola, the retail price increased from November 1, 500ml bottle of Coke retail price of 3.5 yuan. In April this year, COFCO Coca-Cola took the lead in adjusting prices, but it has not yet affected retail products. The scope of the price adjustment is limited to the three canned products of Beijing catering channel customers, which is the company's marketing strategy for individual products in specific sales channels. COFCO Coca-Cola's move is considered by the industry to test the waters for future price increases, after all, the catering channels are less sensitive to prices, and tentative price increases can better control the market feedback after price increases and adjust the price adjustment strategies of enterprises in the retail market. In fact, this is not the first time that Coca-Cola has increased its price, in many cities with high consumption levels, 500ml Of Coca-Cola has been adjusted to 3.5 yuan.
Japanese snack maker Calebbee has announced an adjustment to the local price and portion size of some of its products. The company announced that starting January 24, 2022, the price of potato chips in the Japanese market is expected to increase by 7%-10%, while some products will also see a 5% reduction in serving size. The more well-known Jagariko fries product will also reduce the serving size by 5%. Calebbi said the reason for the price adjustment is that Hokkaido potatoes are expected to reduce production due to hot weather and insufficient precipitation this year. At the same time, soaring raw material and logistics costs also had a serious negative impact on the company's products.
For the first time in seven years, the Yoshinoya increased the price of beef rice in Japan. Japan's beef rice chain Yoshinoya announced a price increase for its main product, beef rice, which rose 39 yen to 426 yen, an increase of 10%. This is the first time the price of Yoshinoya's beef rice has increased in Japan since 2014. According to Yoshinoya, "Due to the recent surge in the price of imported beef and the rise in the price of crude oil, it has been difficult for companies to maintain the current price by their own efforts." The Nikkei Shimbun reported that in the context of the continuous depreciation of the yen, the price of imported meat and oil is running high, and Japan's catering industry may have adjusted prices.
4 Diageo announces ground breaking ground on the first malt whisky distillery in China
Diageo Eryuan Whisky Distillery, located in Eryuan County, Yunnan Province, will invest 500 million yuan in the project to produce its first batch of single malt whiskies of Chinese origin. Renewable and clean technologies will be used in the construction of the Diageo Eryuan Whisky Distillery, ensuring that the distillery is carbon neutral, water regenerated and zero waste.
5 Haidilao's market value evaporated by HK$360 billion during the year
Haidilao's share price fell nearly 5% at a low of 19.54 yuan per share on November 4, with a total market value of HK$107 billion. On September 26, 2018, the catering "aircraft carrier" Haidilao was listed on the Hong Kong Stock Exchange with an issue price of HK$17.8/share, which rose to HK$19.64/share during the session, with a market value of HK$100 billion. By February 2021, Haidilao's share price reached a record high of HK$85.75 per share, and the total market value was once close to HK$470 billion. As of now, Haidilao's stock price has fallen by 77% during the year, and its market value has evaporated by more than 360 billion hong kong yuan.
6Shiseido opens a third research base in China
The new research base "China Innovation Center" is located in the characteristic industrial park "Oriental Beauty Valley" established in Shanghai in 2015. In the future, Shiseido will conduct joint research with local Chinese companies and research institutions to develop cosmetics that meet the preferences of Chinese consumers. In order to develop cosmetics for the Chinese market, Shiseido established its first research base in Beijing in 2001. Since 2015, it has had two research bases in China.
7 Li Ning Group released a new premium sports fashion brand
On the evening of November 4, Li Ning Group officially launched the new independent high-end sports fashion brand li-ning 1990 (Li Ning 1990, the world's first store will be located in Beijing Parkview Yerba Buena Cao cao on November 6, and the first store in southwest China Chongqing Raffles City store will be opened on November 13. The group said that the classic return of li-ning 1990 (Li Ning 1990) will carry the valuable cultural and spiritual assets in the development process of the brand for more than 30 years since its establishment, and reflect the brand's classic - eternal style concept.
8 Nike wants to sell sneakers in the virtual world
Nike may soon sell you a pair of sneakers that you can't wear. The company filed a trademark application indicating that it wants to sell digital versions of sneakers, clothing and other goods printed with the company's logo in virtual worlds such as video games or other online platforms. For Nike, a trademark application could be a way to protect its brand in the virtual world — as it already does in the real world — and prevent counterfeits from appearing in games. Virtual worlds are a new frontier, and this could be a source of revenue for Nike.
9 Skechers is considering an IPO of Asian operations in Hong Kong
Skechers, a well-known U.S. footwear brand, is considering strategic options for its Asian business, including the possibility of listing in Hong Kong. The company could raise about $1.5 billion through an IPO. Plans may include Skechers' acquisition of shares in its joint venture partners. The company founded Skechers China in 2007 with Luen Thai Enterprises. The company's joint ventures in Asia also include subsidiaries in South Korea and Southeast Asia. These considerations are still in their early stages, and Skechers may decide not to pursue other strategic options.
10 Li Jiaqifang denies data fraud
In response to rumors such as "the team behind Li Jiaqi was caught" and "Fat Ball made data for Li Jiaqi", Li Jiaqi's official Weibo released a statement saying that this false information was posted and forwarded by some netizens, causing serious damage to the reputation of Meijian (Shanghai) Network Technology Co., Ltd. and Li Jiaqi, and has been suspected of defamation, reputation infringement and other illegal acts. In a statement, Mei Wrist said that it has retained relevant evidence and filed a complaint and report to the platform where the rumor is located. We will maintain communication with relevant departments and reserve the right to pursue the legal responsibilities of relevant rumor publishers and disseminators in accordance with the law.
11 Alipay launches "Double 11" for the first time in Hong Kong
Alipay announced the launch of the "Double 11" shopping festival in Hong Kong for the first time to stimulate the local retail market, reflecting the company's determination to expand the electronics consumer market in Hong Kong. Over 40 local online and offline merchants have joined the "Double 11 Multiple Rewards" campaign. Alipayhk e-Wallet is a joint venture between Alipay's parent company Ant Group and Cheung Wo to support payments from more than 100,000 retail households in Hong Kong. The company is also one of four operators selected by the Hong Kong government to assist in the distribution of e-consumption coupons totaling HK$36 billion.
12 IKEA Group's sixth shopping mall in China opened in Nanning
On October 29, Ingka Shopping Center unveiled Guangxi's first gathering experience center, Nanning Huiju, in Nanning. As the sixth gathering experience center operated by Ingeka Shopping Center in China, Nanning Huiju and IKEA Nanning Shopping Center are deeply integrated, with a total investment of 1 billion yuan and a total construction area of about 70,000 square meters, and more than 80 Chinese and foreign brands gathered in the 18,000-square-meter gathering experience center to create a meeting place for Nanning consumers to enjoy food and shopping pleasures. Ingka Shopping Centre, part of the ingka group, which also includes IKEA Retail and Ingka Investments. In China, the brand name of The Ingeca Shopping Center is "Huiju".
acquisition
Coca-Cola will acquire bodyarmor, a sports drink invested by the late NBA superstar Kobe Bryant. Coca-Cola will gain full control of the sports drink brand Bodyarmor for $5.6 billion, valuing bodyarmor at about $8 billion. After the deal closes, competition between Bodyarmor and Gatorade is expected to intensify. Coca-Cola already owns a 30% stake in Bodyarmor. The late NBA star Kobe Bryant, an early investor in Bodyarmor, holds more than 5 percent of Bodyarmor's stake in Kobe's estate and will be able to rack up more than $400 million for the acquisition. In addition, Coca-Cola carefully chose to acquire Bryant's stake at 8:24, which is also to commemorate the former NBA superstar.
Marks & Spencer intends to acquire Shandong Ruyi's high-end menswear brand. After taking down fashion retailer Jaeger, Marks & Spencer recently said that the group intends to acquire British menswear brands gieves & hawkes and aquascutum, both of which are owned by Shandong Ruyi, but have not assigned specific executive consultants. Founded in 1771 with 58 stores worldwide, Gieves & hawkes acquired the brand for around £32.5 million in 2012. In 2017, Shandong Ruyi Group acquired ownership of the brand by holding another HK$2.215 billion in Libang Group. But due to Shandong Ruyi Group's recent debt problems, Gieves & hawkes was forced into bankruptcy liquidation.
Earnings
Mengniu's revenue in the first half of this year reached 45.9 billion yuan, an increase of 22.3% year-on-year, and profit reached 2.95 billion yuan.
Yili co., Ltd. released the first three quarters of 2021 performance report, the company achieved a total operating income of 85.007 billion yuan, an increase of 15.23% year-on-year; net profit of 7.967 billion yuan, an increase of 31.82% year-on-year.
Bright Dairy's third quarterly report shows that the company achieved revenue of 22.057 billion yuan and net profit of 445 million yuan, completing 81% and 67% of the annual target respectively.
Nongfu Spring's revenue and net profit in the first half of the year reached 15.175 billion yuan and 4.013 billion yuan respectively, achieving a high growth rate of more than 30% and 40%.
Arowana released its third quarter report for 2021. According to the report, the revenue of Arowana in the third quarter was 59.494 billion yuan, an increase of 12.21% year-on-year; the net profit attributable to the mother was 711 million yuan, a year-on-year decrease of 65.86%.
In the first three quarters, Haitian Flavor Industry achieved revenue of 17.994 billion yuan and net profit of 4.708 billion yuan.
Colgate-Palmolive announces third quarter 2021 results. Quarterly revenue was $4,414 million, compared to $4,153 million for the year-ago quarter, and net income was $634 million, compared to a net profit of $698 million for the year-ago quarter.
Ralph Lauren turned a profit in his second fiscal quarter. Ralph Lauren sales surged 26% year-over-year to $1.5 billion, up 25% at constant exchange rates, gross margin of 67.5% and net profit of $193 million, a significant improvement from a net loss of $39 million in the year-ago quarter. By region, ralph Lauren's sales in the U.S. surged 30 percent to $703 million, while the Asian markets, where Europe and China are located, also recorded 38 percent and 14 percent growth to $496 million and $270 million, respectively.
Mihcael Kors parent company revenue surged 17 percent in the fiscal second quarter. Michael Kors' parent company Capri Group surged 17% year-over-year to $1.3 billion in fiscal second-quarter revenue and recorded a strong 27.5% increase to $195 million, representing an operating margin of 15%. During the reporting period, Versace, Jimmy Choo and Michael Kors recorded strong sales growth of 45%, 12% and 11%, respectively, to US$282 million, 137 million and 881 million. After the earnings report, capri Group shares rose 14.41% to $63.54, with a market capitalization of about $9.6 billion.
V.F. Corporation reported a financial report showing that the company reported a net profit attributable to common shareholders of the parent company in the middle of fiscal 2022 of $788 million, an increase of 2828.52% year-on-year; operating income was $5.393 billion, up 46.36% year-on-year.
PUMA's profit soared more than 5 times in the first three quarters. In the third quarter, puma's sales surged 20% year-on-year to EUR 1.9 billion, gross margin increased to 47.4%, and net profit surged 26% to EUR 144 million. In the first nine months of this year, puma's sales surged 39% to 5.038 billion euros, gross margin was 47.8%, and net profit soared 5.5 times to 302 million euros. In light of this positive trend, PUMA CEO Bjorn Gulden had previously expected PUMA's annual sales to exceed the €10 billion mark in the future.
Under Armour reported third-quarter earnings, with quarterly net income rising to $113.4 million, compared to $38.9 million in the year-ago quarter. Revenue increased 8% year-over-year from $1.43 billion in the year-ago quarter to $1.55 billion.
Estee Lauder announces financial results for the first quarter of fiscal 2022 ended 30 September 2021. Quarterly net sales of $4,392 million, an increase of 23% year-over-year, net income of $692 million, an increase of 32% year-over-year, and operating profit of $935 million, an increase of 33%. Net sales of Estée Lauder skincare products increased by major product category to US$2,449 million, up 20% year-on-year; cosmetics net sales of US$1,174 million, up 20% year-on-year; net sales of perfume products increased 50% year-over-year to US$609 million; and net sales of hair care products increased 9% year-on-year to US$148 million.
Gaoxin Retail, a subsidiary of Alibaba that operates hypermarkets on the mainland, announced interim results. Interim net profit for the six months ended September 2021 plummeted by 86% year-on-year to RMB117 million, while revenue decreased by 5% to RMB41,534 million. At the end of September, Gaoxin Retail owned 491 hypermarkets, six medium-sized supermarkets and 68 small supermarkets in 236 cities on the Mainland. Alibaba holds 78.7% of the issued share capital of Gaoxin Retail through Taobao China.
Suning Tesco released its third quarter report for 2021. In the third quarter, Suning Tesco's revenue was 21.968 billion yuan, a decrease of 64.82% year-on-year; the net loss attributable to the mother was 4.116 billion yuan, a year-on-year profit and loss. In the first three quarters, the operating income reached 115.574 billion yuan, the sales scale of retail cloud goods in the third quarter increased by 33.38% month-on-month, and the sales revenue of core business in September increased by 30% compared with August.
Bubble Mart's first quarterly earnings report saw its revenue surge 75% in the third quarter. In the third quarter, the group's overall retail revenue soared by 75% to 80% year-on-year, of which retail store revenue increased by 40% to 45% year-on-year, Bubble Mart box machine revenue soared by 130% to 135%, e-commerce platform revenue soared 125% to 130%, wholesale and other channel revenue increased by 125% to 130%.
Personnel changes
PepsiCo has appointed Changan Xie as Ceo of Greater China. PepsiCo announces the appointment of Ms. Changan Xie as Chief Executive Officer of Greater China, with full responsibility for all aspects of the Beverage, Snack and Cereals categories in Greater China from 1 November 2021, which will be reported to Mr. Chen Wenyuan, Chief Executive Officer of PepsiCo Asia Pacific. Ms. Xie graduated from Northwestern University Business School with a Master of Business Administration. He joined PepsiCo in 2010 and has served as Senior Vice President and General Manager of the Food Business in Greater China. Prior to joining PepsiCo, Ms. Xie served as Chief Executive Officer of Wanning China and Associate Director of McKinsey & Company.
Meituan's preferred business leaders began to turn to Guo Wanhuai, vice president of Meituan and head of the fast donkey business department, to report. The heads of various businesses preferred by Meituan began to turn to Guo Wanhuai, vice president of Meituan and head of the fast donkey business department, and Guo Wanhuai reported to Chen Liang, senior vice president. Previously, Meituan handed over the three businesses of preferring, fast donkey and buying vegetables to Chen Liang, and Guo Wanhuai assisted Chen Liang in management. These three business segments still exist as independent business units, but there will be more synergies in the future. One preferred person said that on the logistics side, for example, the various businesses can share transportation teams. Meituan also lowered its expectations for order volume and gmv (transaction value).
Kyo Tokyo has become an independent business group, at the same level as JD Retail. Liu Qiangdong began to pay attention to the construction of its own brand, Jingdong has recently adjusted the organizational structure, the Beijing Tokyo manufacturing separate business group, become an independent business unit, and Jingdong retail is currently at a level, on an equal footing. It is understood that Jingdong's own brand business was officially launched in January 2018, and has been developing in Jingdong for a long time, relying on the advantages of Jingdong's supply chain, and has built a multi-brand matrix such as Beijing Tokyo Manufacturing, Huixun, and Jiabai.
LVMH appoints CEO of the Watches and Jewelry Division. Lvmh, the world's largest luxury goods group, has announced that Stéphane Bianchi is the CEO of the Watch and Jewellery Division and a member of the Group's Executive Committee, and he will be responsible for leading the Group's watch and jewelry brands to achieve further improvements, excluding Lvmh's newly acquired tiffany. According to the data, Stéphane Bianchi joined lvmh in 2018 as CEO of TAG Heuer and the watch division, and in June last year, the scope of responsibility was expanded to two major jewelry brands, Fred and Chaumet.
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