Jing Daily | Jing Daily

Chinese e-commerce retailers are struggling As sales growth slows, pricing pressures intensify, and platforms adopt aggressive policies to attract cost-conscious shoppers. Once thriving on shopping bonanzas and celebrity galas, the industry is now facing a shaky economy, extreme discounting, and high return rates, which are squeezing profit margins for both large platforms like Alibaba and JD.com and small businesses. Enthusiasm for sales festivals is waning, and vendors are paying the price of generous return policies and grappling with the costs of attracting high traffic and working with influencers. Many small retailers are losing money, facing intense competition and shrinking margins, signaling a tough new normal for China’s e-commerce industry.

Canadian retail brand Aldo has opened flagship store in Shanghai Global Harbor in June and plans to open about 75 stores over the next decade, expecting the Chinese market to account for up to 10% of its global revenue. Before that, Aldo launched its flagship online store on Tmall in April this year. It currently operates about 2,000 stores in 110 countries around the world, with the United States being its largest market. About 70% of the brand’s sales in China will be through e-commerce channels.

Amorepacific Ap’s luxury skin care brand entered the mainland Chinese market on July 13 with an opening ceremony at its first store in Shanghai’s Jing An Jiuguang Department Store. Executives including President Kim Seung-hwan and Chinese President Park Tae-ho were present. Actress Jung Soo-jung (Krystal) and Chinese actress Zeng Li attended the event.

Japanese brand of outdoor sandals Shaka entered the Chinese market by opening a store in Taikoo Li, Chengdu. Founded on January 8, 2024, the brand is managed by Shaka Brand Management Co., which acquired the operating rights from Bluemoon Company in 2013 and relaunched the brand. Its product range includes sandals, flip-flops, and hiking boots, with prices ranging from RMB 813 ($127) to RMB 1,235 ($193).

China Duty Free Group published its 2024 interim report showing a 12.81% decline in total operating income to RMB 31.26 billion (USD 4.87 billion) and a 14.94% decline in net profit attributable to shareholders of the listed company to RMB 3.29 billion (USD 513 million). The gross profit margin from the core business in the second quarter was 33.29%, up 0.82 percentage points year-on-year, indicating a continuous improvement in the gross profit margin from the company’s core business.

French luxury jeweler Boucheron opens its first boutique in Wuhan China, July 13. The boutique is located in Wuhan SKP. This is Boucheron’s fourth collaboration with SKP in mainland China. Boucheron currently operates 17 boutiques across China.

B2B e-commerce platform Alibaba.com signs French-American basketball star Tony Parker as a brand ambassador ahead of the Paris Olympics. Parker will appear in ads across Paris to attract foreign entrepreneurs to the platform. The move is part of Alibaba’s strategy to expand internationally in the face of sluggish domestic demand, with Europe a key target.

Burberry has unveiled a new swan motif known for symbolizing love and loyalty, ahead of the Qixi Festival. This artistic design features swans entwined in a heart shape, presented on a range of pieces including T-shirts, shirts, silk scarves, dresses and cardigans. The collection also introduces the iconic Rocking Horse bag in a new soapy white color for the season. Filmmaker Chan Ka-yin drew inspiration from this pattern to create a film featuring two swans standing face to face in a heart-shaped silhouette.

Bulgari has launched a new visual campaign ahead of the Qixi Festival, showcasing its iconic ribbon against a pink dawn to create a heart-shaped motif. The campaign, titled “Moment of Eternity,” highlights the themes of courage and lasting love, showcasing artisanal creations that convey sincere feelings and make meaningful vows. The specially designed Qixi necklace from the Divas’ Dream series features luminous mother-of-pearl, symbolizing pure and flawless love, embellished with diamonds and pink sapphires to add a touch of romantic charm.

In June, there was an increase in the overall prices of luxury wristwatch brands fell. According to the Subdial Watch Index, luxury watches continued to fall on the secondary market over the past month, with the 50 most frequently traded models falling less than 1% in June and seeing an 8% drop over the past year and a 23% drop over the past two years, reaching their lowest level in almost two years. In particular, Patek Philippe and Audemars Piguet saw further price declines on the secondary market, Rolex prices remained stable, Tudor saw a small decline, and Omega and Cartier saw price increases, with Cartier rising 2% over the past 12 months.

China’s exports are expected to show strong growth in June, likely the fastest pace in 15 months, as manufacturers accelerated deliveries ahead of anticipated tariffs from key export markets. Analysts are forecasting an 8% year-over-year increase in the value of exports, up from 7.6% in May, driven by increased demand for finished goods. Imports are also expected to rise 2.8%, reflecting increased purchases of parts for production. Despite the positive export data, China’s economy faces challenges, including falling housing prices and concerns about consumer confidence, prompting a reliance on exports to support growth goals amid rising global trade tensions and new tariff threats from various countries.

The Hong Kong government launched the E-commerce Easy program yesterday to support businesses in expanding into the mainland market through e-commerce. Secretary for Commerce and Economic Development Yau Ying-wah announced that the program provides up to HK$1 million for e-commerce projects, helping companies tap into the growing mainland market.

China has declared 2025 as the “China Visit Nepal Year”, aiming to boost tourism from China to help Nepal achieve its target of attracting 2 million foreign tourists per year by 2025, up from 1.1 million in 2023. Tourism is key to Nepal’s economy, contributing almost 8% of GDP and supporting more than 1.2 million jobs. China has also invested in Nepal’s infrastructure, including the Pokhara International Airport, financed through a loan agreement. However, tensions with India over access to airspace have hampered international flights to the airport, affecting tourist flows. Nepal’s tourism industry has welcomed China’s initiative, stressing the need to improve infrastructure, air connectivity and tourism services to capitalize on the potential growth.

In early July, Chinese electric vehicle manufacturer BYD opened its first factory in Southeast Asia in Thailand’s Rayong province, a $486 million plant and a price cut for local buyers, lowering the price of the Atto 3 SUV by up to 340,000 Thai baht ($9,234). It reflects fierce competition amid an economic slowdown and rising car loan rejections in Thailand. The plant, with an annual capacity of 150,000, will export mainly to Southeast Asia and Europe. Electric vehicle sales in Thailand rose 32% between January and May, while overall vehicle sales fell. BYD, which had a 40% share of Thailand’s electric vehicle market last year, benefits from low trade barriers and government incentives.