DANWEI - The last week brought a new wave of food safety scares in China, as well as news about poisons and pollutants in consumer products. There's lead in skin care products, formaldehyde in cars, mercury in health supplements, pirated books on Amazon.cn, and a dead mouse in yoghurt!
China’s largest department store operator has struggled to adapt to shifting market dynamics and is losing popularity as a result, according to our survey.
A successful rebranding programme has enabled New World to outperform its department store rivals in terms of sales growth, but its stores remain less productive, while the competitive threat posed by shopping malls remains significant.
China’s fourth largest department store operator reported its weakest revenue growth for a decade last year, but its strong presence in inland cities leaves it well positioned to tap into growing demand in these less-competitive markets.
A wide range of retail and leisure services under one roof has enabled the aggressively expanding chain to emerge as the most popular shopping destination among Chinese consumers, according to our survey.
Recent sluggish performance by mainland- and Hong Kong-listed department store operators is an indication that the era of strong-double-digit sales growth may be a thing of the past.
DANWEI – Additional travel over the May 1 holiday did not result in increased rates of reported bird flu H7N9 infections, but stories about quality problems with consumer brands circulated in the Chinese media. A study by a Chinese university this week found that six brands of whitening toothpaste contained 'carcinogenic sulfites'. The China Oral Health Products Industry Association cast some doubt on the methodology of the study, but the news caused a spike in social media conversations in China on the six brands.
Consumer spending and confidence moderated further in April, according to China Confidential’s latest monthly survey of 600 urban consumers, conducted between April 17 and April 24. However, improving household finances should provide a solid basis for faster spending growth in the coming months, so long as the broader economy improves.
DANWEI - This week's Danwei Bulletin focuses on two feature reports from the Chinese media: massive piracy in the market for sanitary pads; and a look at China's so-called 'Moocher Kings', i.e. state-controlled, domestically-listed companies that received the largest government subsidies in 2012.
The Taiwanese beverage maker posted above-average sales growth last year and has refrained from entering into a price war with aggressive rivals, focusing instead on bolstering its brand image.
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