US apparel maker Cherokee (Nasdaq: CHKE) made a strategic gamble last week when it largely circumvented China’s traditional retail store network and opened a shop on the Internet, highlighting an emerging new path for foreign mid-sized brands into the lucrative sector. (company announcement) Unlike real-world shops, online stores are much cheaper to set up and also target an e-commerce market set to become the world’s largest over the next decade.
Tag Archives: Best Buy
China Scandal Takes Bite Out of Yum 中国食品丑闻让百胜很受伤
Two news items from the retail space are showing how China remains a challenging and competitive market despite its huge potential, with KFC operator Yum Brands (NYSE: YUM) and German retailer Metro (Frankfurt: MEO) both suffering setbacks for different reasons. In Yum’s case, the company is quickly discovering the meaning of the word “saturation”, as its rapid expansion in China has forced it to open restaurants in less profitable locations that are ultimately hurting its performance. Adding to its woes, KFC recently found itself at the center of China’s latest food safety scandal, which I’ll discuss shortly. In Metro’s case, the company simply discovered that the Chinese retail market is quite competitive, especially in the electronics space where Metro was trying to find a niche in a partnership with the consumer products unit of Taiwanese manufacturing giant Hon Hai (Taipei: 2317).
News Digest: July 6, 2012 报摘： 2012年7月6日
The following press releases and media reports about Chinese companies were carried on July 6. To view a full article or story, click on the link next to the headline.
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◙ Apple (Nasdaq: AAPL) to Launch New iPad in China in Late July – Source (English article)
◙ Carlyle Acquires 49 Percent of China Mid-Tier Hotel Chain (English article)
◙ Jingdong Mall, Investors Agree to Delay IPO, Seek New Funding Round (Chinese article)
◙ Best Buy (NYSE: BBY) China Enters Mobile Retail (English article)
◙ Bloomberg Sites Blocked in China Days After Xi Family Wealth Story (English article)
