December 3, 2018 by Shinji
PVH Corp. operates as clothing and fashions dropshippers in North America and internationally. The company operates through six segments: Calvin Klein North America, Calvin Klein International, Tommy Hilfiger North America, Tommy Hilfiger International, Heritage Brands Wholesale, and Heritage Brands Retail. It designs, markets, and retails men's and women's apparel and accessories, including branded dress shirts, dresses, suits, neckwear, sportswear, jeans wear, performance and intimate apparel, underwear, swimwear, swim products, handbags, luggage products, footwear, golf apparel, sleepwear and loungewear, eyewear and fragrances, cosmetics, skincare products and toiletries, socks and tights, jewelry, watches, outerwear, small leather goods, and furnishings, as well as other related products.
Commonwealth of Pennsylvania Public School Empls Retrmt SYS reduced its holdings in shares of PVH Corp (NYSE:PVH) by 22.0% during the 3rd quarter, according to its most recent 13F filing with the SEC. The fund owned 6,295 shares of the textile maker’s stock after selling 1,772 shares during the period. Commonwealth of Pennsylvania Public School Empls Retrmt SYS’s holdings in PVH were worth $909,000 as of its most recent filing with the SEC.
A number of other institutional investors have also modified their holdings of PVH. CIBC Asset Management Inc lifted its stake in shares of PVH by 4.1% in the 2nd quarter. CIBC Asset Management Inc now owns 8,451 shares of the textile maker’s stock worth $1,265,000 after acquiring an additional 333 shares during the period. IFP Advisors Inc lifted its stake in shares of PVH by 9.0% in the 2nd quarter. IFP Advisors Inc now owns 4,760 shares of the textile maker’s stock worth $713,000 after acquiring an additional 395 shares during the period. Penserra Capital Management LLC lifted its stake in shares of PVH by 16.5% in the 3rd quarter. Penserra Capital Management LLC now owns 2,944 shares of the textile maker’s stock worth $425,000 after acquiring an additional 416 shares during the period. Lido Advisors LLC lifted its stake in shares of PVH by 26.8% in the 2nd quarter. Lido Advisors LLC now owns 2,062 shares of the textile maker’s stock worth $308,000 after acquiring an additional 436 shares during the period. Finally, Redpoint Investment Management Pty Ltd lifted its stake in shares of PVH by 4.2% in the 2nd quarter. Redpoint Investment Management Pty Ltd now owns 10,945 shares of the textile maker’s stock worth $1,639,000 after acquiring an additional 439 shares during the period. 97.93% of the stock is currently owned by institutional investors.
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Shares of NYSE PVH opened at $110.51 on Friday. The jewelry dropshippers usa have a quick ratio of 0.78, a current ratio of 1.72 and a debt-to-equity ratio of 0.52. PVH Corp has a 52 week low of $106.63 and a 52 week high of $169.22. The stock has a market capitalization of $8.42 billion, a P/E ratio of 13.92, a P/E/G ratio of 0.94 and a beta of 0.92.
PVH (NYSE:PVH) last announced its quarterly earnings data on Thursday, November 29th. The textile maker reported $3.21 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $3.14 by $0.07. PVH had a net margin of 7.20% and a return on equity of 13.07%. The firm had revenue of $2.52 billion during the quarter, compared to analysts’ expectations of $2.53 billion. During the same quarter last year, the business earned $3.02 earnings per share. The business’s revenue for the quarter was up 7.1% compared to the same quarter last year. As a group, research analysts anticipate that PVH Corp will post 9.27 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, December 21st. Shareholders of record on Wednesday, November 28th will be issued a dividend of $0.0375 per share. The ex-dividend date is Tuesday, November 27th. This represents a $0.15 annualized dividend and a yield of 0.14%. PVH’s dividend payout ratio (DPR) is currently 1.89%.
Several analysts have recently commented on the stock. Goldman Sachs Group upgraded shares of PVH from a “sell” rating to a “neutral” rating and reduced their target price for the stock from $142.00 to $130.00 in a research note on Friday, November 9th. Zacks Investment Research cut shares of PVH from a “buy” rating to a “hold” rating in a research note on Tuesday, August 21st. Credit Suisse Group reduced their target price on shares of PVH from $185.00 to $150.00 and set an “outperform” rating for the company in a research note on Monday, November 19th. Piper Jaffray Companies set a $150.00 target price on shares of PVH and gave the stock a “buy” rating in a research note on Friday. Finally, ValuEngine upgraded shares of PVH from a “sell” rating to a “hold” rating in a research note on Wednesday, October 17th. Six analysts have rated the stock with a hold rating, fifteen have given a buy rating and one has issued a strong buy rating to the stock. PVH currently has a consensus rating of “Buy” and a consensus price target of $161.10.
November 29, 2018 by Shinji
Today’s business world is one of rampant change. While technology is driving much of this disruption, evolving customer expectations are dramatically altering the face of the financial services, payments and fintech industries.
As we move through the second half of 2018 and into 2019, B2B e-commerce expert Brandon Spear, president of MSTS, a global B2B payment and credit solutions provider, shares with PaymentsJournalreaders several insights and perspectives he believes will impact fintech in the near future.
What do you see as the leading fintech trend this year?
The leading trend is clearly the “Amazon effect”. With 100 million Amazon Prime members, a strong foothold into the smart speaker category and a deservedly solid reputation for customer service, what industry isn’t impacted by the “Amazon effect?” With reports saying the company is talking to banks about Amazon-branded checking accounts, financial services institutions and the payments industry are the newest members of the B2C ecosystem that are worried about Amazon. Millions of people already trust Amazon to facilitate their payments, so it is only natural to wonder whether Amazon is a large enough community that it does not need traditional credit cards at all. Could we see a credit card that works exclusively at Amazon?
How will the B2B market be impacted in the coming months?
You’ll see more “consumerization” of B2B purchasing in the next 6-18 months. Every employee is a consumer, and as many of them – particularly Millennials – hit the workforce, they are wondering why B2B purchasing is so complicated. While it’s true that B2B purchases are more complex than B2C purchases, with more approvals and procedures that need to be followed, this is not an acceptable excuse to not make the experience as frictionless as possible. In 2018, many payment and fintech companies are working hard to meet this challenge, though few have been able to produce a true consumer-like experience for business customers.
What can incumbent companies do to ward off threats from fintech startups and still be relevant in the marketplace?
The go-to answer for many has been to partner with or buy startups, and the financial services and payments
fintech executives said their goal was to partner with established players rather than challenge them.
industries are no different. Every major company now has an innovation lab, or similar structure, that allows for partnerships with up-and-coming tech firms. This seems to be a mutually beneficial arrangement with startups gaining access to capital, customers and potentially new markets and the incumbents gaining experience in the new fintech world. In a recent poll, 75 percent of fintech executives said their goal was to partner with established players rather than challenge them.
Will the move to a cashless society continue to affect the market?
consumer transactions last year were via credit cards
Consumers are continuing to move ever-closer to going totally cashless. In fact, there are places in the world like Scandinavia that already are cashless. It would seem the U.S. is headed in the same direction. Some 80 percent of consumer transactions last year were via credit cards especially spend on dropship phone cases. Among younger consumers, Venmo and Square’s Cash app are gaining traction, although smartphone-based purchases still only account for around 1 percent of the volume. We expect that momentum for a cashless society to build further as we move into 2019.
Is there a technology that you feel threatens or holds tremendous promise for the industry?
Blockchain is a consequential technology that will benefit our industry. As a distributed ledger that is said to be tamper-proof, Blockchain is best known as the technology underpinning cryptocurrencies like Bitcoin. Interestingly, Blockchain’s more lasting impact may be as a means of preserving long-term agreements that don’t change frequently. A prime example is titles or deeds of sale. If you buy a house, you will spend hundreds of dollars for title searches and if you get a mortgage, title insurance too. If your title is stored safely in a blockchain, you can save a lot of money to retrieve it or change it. Currently, Blockchain is a promising technology but its actual use cases are still evolving and it requires wholesale adoption to truly become transformative. However, we do see its use growing in financial services and payments in the coming years.
Overall, where do you see for the future of the fintech, financial services and payments market headed?
The overarching trend for these industries is related to user experience, choice and convenience. Financial services and payments is a means to an end, be it buying a replacement laptop dropshippers at work or buying a new television set. If we as an industry can find a way to remove the barriers, bring the consumer experience to the business world and use technology wisely to earn the trust and meet or exceed consumer expectations – then I see a bright future ahead for the industry.
November 24, 2018 by Shinji
Birmingham's historic drop shipping wholesalers and markets are set for significant disruption after Brexit, it has been revealed.
Traders are only just getting used to their new £50m facility in Witton after they were relocated from the city centre Smithfield site earlier this year.
But now they have been warned they could be due for upheaval after the UK leaves the European Union, because of the implications for perishable foods and potential restriction of movement for lorry drivers.
There would likely be knock-on effects for the scores of restaurants, hotels, takeaways and retailers supplied by the market, which was first established in the twelfth century.
It has come following the long-awaited release of the Brexit impact report for Birmingham and the West Midlands.
What does the Brexit report say about Birmingham's markets?
The report reveals that the wholesale websites, which is the largest integrated market in the country, welcomes 400 HGVs a day, of which nearly one in five (19 per cent) are from the EU.
Outside of the UK the market gets most of its fruit and vegetables from the Netherlands as well as Spain and Italy, while fish comes in from France and Belgium supplies meat and animal products.
Traders could be faced with the challenge of having to stockpile food while the drivers may need to jump through hoops just to get into the country.
The impact report states: "With 400 goods vehicles arriving at the Wholesale Market nightly, there could be significant vulnerabilities to disruption after Brexit, with a just in time supply chain operation in the UK, holding between three and five-days stock at one time – as obviously fresh produce has a limited shelf life.
"Disruptions at the border would be a significant issue for fresh produce providers, but also the supply of labour from the EU – both in the UK agricultural industry and the logistics industry."
"Will we need to stockpile perishable foods?'
Lloyd Broad, head of European and international affairs at Birmingham City Council, admitted that the consequences for the market outlined in the report had come as a surprise.
He said: "The case study (for the markets) links to the customs arrangements, it is also linked to the status of EU nationals, whether they are permanent, semi-permanent or have temporary access visas.
"We have 400 vehicles coming into the wholesale markets daily, and one in five (19pc) are from the EU.
"They're bringing in things like foods, so there are issues about their ability to bring that in, the issue around just in time, and the frictionless or not borders.
"Will we need to stockpile perishable foods? It is not that easily done when you get fresh fruit and vegetables coming in to the markets every day.
"That is something local people will resonate with, because it is on their doorstep, they see it, that is one area that was a surprise for us.
"We hadn't quite appreciated something that we see and that is there on our doorstep, would be so dependent on the free-flow of lorries and goods coming over the borders on a daily basis."
Deputy council leader Cllr Brigid Jones (Lab, Bournbrook and Selly Oak) added: "If you think of the people who drive those lorries and their visa situation, at present in order to settle in the UK you need to have an income over a certain threshold and so on.
"You would need a whole new set of arrangements to make sure people who make frequent short trips to the UK, to drive from Dover to Birmingham essentially, are able to do that, let alone what it's in their lorry."
November 19, 2018 by Shinji
On the Macro
For the Dollar . Stats for the week ahead include October housing sector data on Tuesday and Wednesday, along with October durable goods orders numbers, the weekly jobless claims and finalized November consumer sentiment numbers due out on Wednesday, with November's prelim private sector PMI numbers on Friday to also provide direction. Outside of the stats, Trade talks, FOMC member commentary and geo-political risk in Europe will also influence. It's a shortened week with the Thanksgiving holidays. The Dollar Spot Index ended the week down 0.49% to $96.427.
For the EUR , Key stats for the week ahead include prelim consumer confidence figures out of the Eurozone on Thursday and November's prelim private sector PMI numbers due out on Friday, with china wholesale inflation numbers out of Germany unlikely to have a material impact on Tuesday. Outside of the stats, the ECB policy meeting minutes and EU Commission decision on Italy will be of greater influence. The EUR/USD ended the week up 0.70% to $1.1415.
For the Pound , Economic data for the week ahead is limited to November CBI Industrial Trend Order numbers on Tuesday that will have a relatively muted impact on the Pound, with BoE governor Carney and the inflation hearings in the spotlight on Tuesday. While Carney and inflation may provide some direction, it will continue to come down to progress on Brexit and Theresa May's survival through the week. The GBP/USD ended the week down 1.06% to $1.2834.
For the Loonie , it's a busier week ahead with September wholesale sales figures to provide some direction ahead of Friday's October inflation and September retail sales figures that will be the key driver through the week. Outside the stats, we can expect some direction from crude oil prices and general market risk appetite. The Loonie ended the week up 0.48% to C$1.3148 against the U.S Dollar.
Out of Asia , it's a quiet week ahead.
For the Aussie Dollar , there are no material stats scheduled for release through the week, leaving the RBA meeting minutes release on Tuesday the main area of focus, though we can U.S - China trade talks and sentiment towards the global economy in general to influence, private sector PMI numbers out of Europe and the U.S to provide some sense of where the economies are heading in the 4 th quarter. The Aussie Dollar ended the week up 1.47% to $0.7332.
For the Japanese yen , key stats through the week are limited to October trade figures on Monday and October inflation figures on Thursday, a trade deficit unlikely to be too alarming following the natural disasters and storms that plagued productivity. The inflation figures are also unlikely to give too many surprises, which should leave the Yen in the hands of risk sentiment. Outside of the numbers, BoJ Governor Kuroda is scheduled to speak at the start of the week. The Japanese Yen ended the week up 0.88% to ¥112.83 against the U.S Dollar.
For the Kiwi Dollar , stats are limited to 3 rd quarter wholesale shoes china inflation numbers due out on Monday that will provide direction, with moves through the rest of the week likely to be hinged on U.S - China trade talks. The Kiwi Dollar ended the week up 2.09% to $0.6878.
Out of China , there are no material stats due out, leaving the markets to focus on trade talks with the U.S.
Brexit : The Pound continues to bounce around as Brexit chatter swings from hopes of a deal to no deal, parliament now seeming to be the biggest threat to Britain being able to depart the EU with some form of a deal. We can expect another major move in the Pound in the week ahead. Could the British PM, who took the job that no one wanted, be ousted this week as a threat of a no confidence vote lingers?
U.S - China Trade War : U.S President Trump hints of a possible trade agreement that may well be in everyone's best interest, talks of an agreement likely to boost risk appetite and ease demand for the Greenback, with the recent progress suggesting that the January 2019 tariffs may be put on ice.
Italy : The EU Commission decision on Italy is due on Wednesday and, with the Italian government seemingly unwilling to compromise, could there be sanctions and more that could see yield spreads between German and Italian government bonds break through 400 bps to rock the markets?
Saudi Sanctions : Sanctions on 17 officials linked to Kashoggi's murder were announced last week. It remains to be seen whether that's where it stops, Democrats likely to call for more than a slap on the wrist, particularly if the Crowned Prince is implicated.
Mueller Investigations : Mueller gets the green light from newly appointed acting Attorney General Whitaker to proceed, with the investigation reportedly reaching its final stages, which could give the markets some angst ahead of any final findings release, particularly with the Democrats now running the House.
On the monetary policy front , the RBA and ECB monetary policy meeting minutes, due out on Tuesday and Thursday respectively will have an impact on the respective currencies, economic growth prospects for both in question at present, any dovish sentiment and expect a reversal of last week's gains. For the greenback, we can expect some more FOMC member chatter, some dovish comments having crept in of late that has weighed on the Dollar.
November 15, 2018 by Shinji
One of Northern Ireland’s largest garden nurseries nestled in the heart of Dundonald has unveiled its newly expanded facilities following a significant investment with support from First Trust Bank.
Dundonald Nurseries’ £1million expansion programme has seen the business increase its garden centre and warehouse capacity, open a new ‘Secret Garden’ gift shop and expand its wholesale sites for nursery offering following investment in industry-leading technology, including automated potting equipment. The company’s ongoing success has seen its workforce expand from three employees in 2013 to 60 employees within the past five years.
Supplying Tesco, the Henderson Group and independent outlets and florists across Northern Ireland, 98% of all the plants sold are grown on-site in Dundonald. Dundonald Nurseries was founded by the McCully family in 1963 as interest in gardening programmes grew. The business quickly diversified into growing plants and cut flowers to keep up with an ever-changing marketplace
The family also run an award winning 125-seat restaurant on site and due to the growing popularity of its gift shop, a 3,000sf expansion was created to facilitate a children’s shop, ladies and gent’s wholesale boutique clothing and an extensive range of gifts, crafts and homewares.
Dundonald Nurseries owner Malcolm McCully explains that their business success is down to diversifying its offering to meet changing customer needs and cultivating long-term relationships with clients and suppliers. He said;
“Having started out with one small van, the wholesale nursery aspect of our business now requires four large lorries to service our wholesale customers across the country, reflecting the focus we have placed on a high-quality service and products.
“Over the past 55 years, the business has expanded steadily because we are continuously innovating to keep up with changing consumer requirements. We are proud of our growth and recently purchased additional land off-site to build a new-state-of the-art glasshouse complex, equipped with the latest growing technology for plants. We also host fashion shows, gardening talks with afternoon tea, and seasonal evenings such as candlelit Christmas suppers – all with a view of making Dundonald Nurseries a destination for a great day out.
“This is just the latest stage in our investment programme and with the support of First Trust Bank, we have additional growth plans in place to renovate the basement of our restaurant into a function room to offer a new private space for hire.”
Speaking about the expansion, Catherine O’Keefe, Business Manager, First Trust Bank added;
“With a focus on quality, provenance and innovation, Dundonald Nurseries continues to thrive, and we are delighted to support Malcolm and his wife Anne through the expansion of the business. The new gift shop and extended garden centre enables the McCully family to offer customers an even greater range of products and services, making the business an asset to the local area – and the perfect destination for Christmas shopping!
“The ongoing expansion programme has led to almost 60 jobs being created in the last five years and it’s great to see a family business become such an inspiring success story. We wish the McCully family the best of luck for the future.”
November 13, 2018 by Shinji
Yiwu County in Zhejiang Province is part and parcel of China’s reputation as a manufacturing powerhouse.
After all, the small city houses the world’s largest buy wholesale from china market for small commodities, according to official pronouncements by the United Nations and World Bank in 2005.
The Yiwu International Trade City operates like a mega-warehouse, where vendors representing factories from all over China sell their wares—mostly inexpensive household items such as shoes, toys, hardware, and clothing—to customers from around the world.
The 4-million-square-meter (about 43 million square feet) Trade City has room for 75,000 vendors within five shopping districts. But this once hustle-and-bustle hub is now shrinking as more and more merchants exit, vendors told the Chinese-language Epoch Times.
There are various reasons for the decline in business—demonstrated vividly in photos that netizens recently posted online of the Trade City, looking barren and deserted. For one, the Trade City’s second district sent out a notice on Oct. 16 notifying vendors that their rents will be going up.
A jewelry vendor in the Trade City’s fourth district, Ms. Liu, told The Epoch Times that rent is roughly 300,000 yuan (about $43,000) per year for a 20-square-meter (215 square foot) storefront.
“In the jewelry district, for a nice storefront … taxes would be roughly 100,000 yuan [about $14,300]. Business is really hard. It’s been very quiet around here,” she said.
Zhejiang China Commodities City Group Co., the publicly listed company that operates Trade City, released a report in April with the latest numbers: Cash flow from operations declined by 7.5 billion yuan ($1.07 billion) year-on-year.
A business manager in the handicraft industry, who frequently travels to Yiwu for business, told The Epoch Times that a downturn in Yiwu started about three years ago.
“The export volume of small commodities dropped by about 60 percent between 2013 and 2015. It’s mostly because the overall economy wasn’t good. It continued going down. Plus, there were some policies put out by the authorities—and the current trade war, too,” said the business manager, who only identified himself by his surname, Lu.
According to statistics released by Zhejiang China Commodities City Group, the Trade City saw about an average of 1,039 stores close monthly from September 2014 to August 2016, while adding only about 700 new stores during that period.
A former commodities trader, Mr. Chen said business has been lackluster because the Trade City keeps adding vendors who sell similar goods—resulting in overlap.
Meanwhile, a string of government regulations has further restricted business. Last year, Chinese authorities launched a crackdown on environmental pollution by auditing factories across the country.
In August, Zhejiang factories involved in “environmentally impactful” manufacturing activities, such as die-casting, painting, plating, and printing were shuttered in order to comply with government regulations. Because these factories supplied parts to hardware and jewelry vendors, many were forced out of business.
Others believed it was the advent of e-commerce that has rendered the Yiwu Trade City obsolete.
Mr. Ji, who works in the handicraft business, said there were more customers who visited the Yiwu shops to look at goods before e-commerce became a popular platform.
“Now, my old customers all make orders directly through the phone or the computer. It’s no wonder the Trade City is empty these days,” he said.
Meanwhile, the Chinese regime has been pushing policies to upgrade itsmanufacturing sector to produce higher-tech devices, instead of cheap goods.
China wholesale has lost its competitive edge as the “world’s factory” as laborer wages, taxes, property prices, and other production costs increase. Many companies have begun moving their production lines out of China and into Southeast Asia or back home.
November 9, 2018 by Shinji
Azerbaijan’s second Wine House in China opened in Shanghai this week, Azerbaijan’s Economy Ministry said in a message Nov. 8.
Azerbaijan’s Wine House located in Shanghai Waigaoqiao Free Trade Zone, which is the International Trading Operation Center (ITOC) of Shanghai, will host exhibitions, china wholesale and retail sales, as well as product tasting.
In Azerbaijan’s Wine House, there are more than 120 types of grape and fruit wines, other alcohol beverages, fruit distillates produced by Azerbaijani companies.
Speaking at an event timed to the opening of Azerbaijan’s Wine House, Economy Minister Shahin Mustafayev noted that the successful development of Azerbaijani-Chinese relations based on mutual respect and friendship is gratifying.
He stressed the importance of political will, mutual high-level visits and agreements reached by the heads of two states in strengthening relations between the countries.
It was noted that Azerbaijan attaches great importance to the expansion of economic ties with China, as well as to the implementation of mutually beneficial joint projects.
Cooperation in the trade sector is one of the important areas of economic cooperation between Azerbaijan and China, Mustafayev said, noting that in 2017, the trade turnover between the two countries increased by 20 percent and China ranks fourth in the foreign trade turnover of Azerbaijan.
The countries are carrying out comprehensive measures to further expand trade cooperation, the Trade Representation of Azerbaijan operates in China, a trade delegation was organized to Hong Kong, Guangzhou, Shanghai and Urumqi in order to promote Azerbaijani products and the Made in Azerbaijan brand in China best wholesale sites.
Besides, Azerbaijan’s Trade House was opened in Luzhou city, and Azerbaijan’s Wine House was opened in Urumqi city, products made in Azerbaijan are presented at various international exhibitions in China.
The minister said that the export of Azerbaijani wines to China, which are distinguished by their special taste and high quality, will be increased.
He noted that Azerbaijani wines received the highest award at the International Wine Challenge in June this year in Shanghai. It was reported that the first Azerbaijan’s Wine House abroad was opened in September this year in China, Urumqi. Azerbaijan’s trade houses and wine houses are planned to be created in other regions of China as well.
Deputy General Manager of the Shanghai company Shanghai Waigaoqiao Free Trade Zone Group Co Ltd. Zhang Hao said in his speech that the Azerbaijani-Chinese relations are successfully developing in various fields.
Azerbaijan’s Wine House opened in Shanghai will not only contribute to the development of trade and economic relations, but will also play a significant role in terms of promoting Azerbaijani products among Chinese buyers, he noted.
Then the participants of the event familiarized themselves with Azerbaijan’s Wine House. Representatives of companies represented in the Wine House informed about wines and other alcoholic beverages.
The Azerbaijani delegation also visited the Direct Imported Goods (DIG) sales center.
The sale of Azerbaijani wines and other alcoholic beverages has already started in the DIG of the Shanghai ITOC.
On the same day, Azerbaijan’s Economy Minister Shahin Mustafayev met with Deputy Head of the administration of the Shanghai ITOC Li Jinsong.
At the meeting, the Azerbaijani delegation was informed about the Waigaoqiao Free Trade Zone, the single window system created there, services provided in line with the legislation, customs, finance and logistics, residents of the zone, and an exchange of views on China’s experience in this area was held.
Mustafayev informed about the visit of the Azerbaijani delegation to China, product demonstrations in the pavilions of Azerbaijan at the first China International Import Expo, as well as about the Baku International Sea Trade Port, and noted that it is planned to create a free economic zone including the port area.
November 7, 2018 by Shinji
Alibaba Group Holding said it will help bring US$200 billion worth of products from more than 120 countries into China over the next five years to help meet the rising demand of Chinese consumers for high-quality international goods.
Between 2019 and 2023, Alibaba will help import from businesses of all sizes in countries such as Germany, Japan, Australia, US, and South Korea, the Hangzhou, China-based company said in a statement.
“We believe this partnership represents the beginning of a new chapter for New Retail,” Zhang said in the statement.
Alibaba’s New Retail strategy seeks to integrate the online and offline shopping experiences for consumers across a number of products and services. This approach reflected the increased competition Alibaba faces on multiple fronts in China, where its ecosystem of services rival those of Tencent Holdings.
Alibaba vs AliExpress is always discussing by customers from the world. Alibaba will hold its annual Singles’ Day shopping festival on November 11 and expects to achieve a record 1 billion orders in 24 hours. This year is the 10th edition of the retail promotion, which has grown to become the biggest online shopping event in the world and in recent years has included traditional bricks-and-mortar retailers as well as more merchants and consumers outside China.
“We not only want to achieve sales innovation behind the US$200 billion, but also want to achieve the innovation of the digital supply chain,” Daniel Zhang Yong, Alibaba’s chief executive, said in a speech on Tuesday at the Global Import Leadership Summit in Shanghai. “Through the combination of cooperating with partners in the digital supply chain and the consumer market, we will realise the dream of from grass to glass, from farm to table, and the dream of digital and innovative imports.”
US-China trade war ‘most stupid thing in the world’, says Jack Ma
Alibaba’s pledge for step up imports comes a day after China’s president Xi Jinping made fresh promises to open the world’s second-biggest economy to the outside world, including lowering import tariffs and broadening market access, and voiced support for economic globalisation.
US President Donald Trump has blamed China for “unfair trade policies”, which he claims to have caused a huge trade deficit for the US. On Monday, Alibaba executive chairman Jack Ma, an outspoken critic of the trade war, again slammed the conflict as the “most stupid thing in the world.”
“Trade is to communicate … nobody can stop free trade,” he told a business forum held on the sidelines of the China International Import Expo in Shanghai.
As part of its commitment to boost imports into China, Alibaba on Tuesday announced a strategic partnership with privately held Hong Kong trading group Fung Retailing to bring more international lifestyle brands in the world’s second largest economy.
Fung Retailing, which has an international network of more than 3,000 stores, and Alibaba said in a statement on Tuesday that they will join forces in global brand recruitment as well as in merchandising, marketing and omnichannel distribution services to meet the needs of Chinese consumers. Their collaboration could potentially expand to other regions, riding on Alibaba’s various retail platforms.
The company will have 1 million square metres of bonded warehousing space, equivalent to about 140 soccer fields, through the Cainiao logistics network for the event this year, according to Alvin Liu, general manager of Tmall Import and Export. A total of six procurement centres will be set up in regions including Europe, North America, Japan and South Korea, he said on Tuesday in Shanghai.
This year, Alibaba’s Southeast Asian subsidiary Lazada Group, also other wholesale dropshippers usa, will jointly hold for the first time Singles’ Day promotions across Singapore, Malaysia, Thailand, Indonesia, the Philippines and Vietnam.
Alibaba said in September that it plans to invest 100 billion yuan (US$15 billion) to strengthen its global logistics network over the next five years after becoming the controlling stakeholder in its affiliate logistics arm Cainiao Network. This month, Rwanda become the first African nation to join the Alibaba-led Electronic World Trade Platform, following similar initiatives in Southeast Asia.
Alibaba is the parent company of the South China Morning Post.
November 2, 2018 by Shinji
When U.S. tariffs were levied in September on $200 billion worth of Chinese imports, some apparel companies saw the writing on the wall even if they wanted to erase it.
The 10 percent tariffs did not cover apparel or footwear, but it did include fabric and handbags along with a threat for more tariffs.
The changings of tariffs policy, also take strong impacts on Chinese shipping methods, like China ePacket, EMS, China Post, etc.
Now a new round of tariffs spearheaded for early next year on $257 billion in trade with China will undoubtedly include clothing. And those 10 percent tariffs are expected to shoot up to 25 percent on Jan. 1.
With change in the wind, clothing manufacturers such as Michael Weisberg decided not to wait for new tariffs to kick in. This year, he started shifting production of his BeBop and Gypsies & Moondust juniorswear labels from China to Vietnam. Last year, 60 percent of that production was done in China. This year it is down to 40 percent, with most of that manufacturing shifting principally to Vietnam and then Cambodia and India.
“This year, our production in China started to decrease as soon as Trump started trumpeting tariffs,” said Weisberg, who is chief executive of Second Generation, the labels’ parent company, headquartered in Vernon, Calif., just outside Los Angeles. “But it is tough because there isn’t enough capacity for everybody to go to Vietnam.”
Because the BeBop and Gypsies & Moondust customer is a more price-sensitive consumer, Weisberg felt the company needed to move to factories outside China to keep prices down. He calculates that additional tariffs will increase the wholesale price by 50 cents to $1 a garment if they go into effect next year. “Our business is moderate and sensitive to any price increases,” he said. “It is not a risk worth taking. Unfortunately, you sacrifice reliability and speed by not being in China. Until this thing blows over, we have to be careful.”
Other Chinese wholesale manufacturers are waiting before the tariffs take effect to move their production because China is an efficient place to make clothing. All the raw materials and inputs are there as are well-managed factories with decades of experience.
David Vered, president of Los Angeles–based YMI Jeanswear Inc., said about 60 percent of his denim pants and non-denim pants are made in China and the rest are produced in Vietnam. “China is really good at having everything [raw materials],” he said, noting that most of the fabric used for his production in Vietnam comes from China. “But if the tariffs come into play, we will have to move a lot of our production to Vietnam.”
However, Vietnam doesn’t have the capacity to produce the outerwear and swimwear that YMI’s licensees make in China. “That would be a big issue if it comes to tariffs,” he noted.
Another manufacturer waiting to move production is Stony Apparel Corp., whose labels include Eyeshadow and Love on a Hanger. About 80 percent to 90 percent of the Los Angeles company’s collection of dresses, T-shirts, tops and pants for juniors and girls is produced in Chinese factories, said company co-founder Steve Maiman.
But he does have to keep costs down for his price-sensitive customers. “We are looking into alternatives to supplement what we do,” he said. “If we move, it would have to be within a reasonable distance from China, such as Vietnam or Cambodia, because most of the fabric we use comes out of China.”
Moving production can’t be done with the snap of a finger. Most apparel production is planned 12 months to 18 months ahead of schedule, said Elise Shibles, a member of the international law firm Sandler, Travis & Rosenberg. “So current consideration of product placement likely wouldn’t be evident in trade data until over a year from now,” she noted.
To have tariffs or not have tariffs
No one is too clear about whether the Trump administration will expand its tariffs on Chinese products. There will be a clearer indication of what will happen after the mid-term elections on Nov. 6 and after a critical meeting in late November in Buenos Aires, Argentina, of the Group of 20, an international summit of governments and central-bank governors. Chinese President Xi Jinping and U.S. President Donald Trump are expected to meet there and discuss the escalating trade war.
But many are pessimistic about an immediate solution. “We are on track for this thing to happen,” said Steve Lamar, executive vice president of the American Apparel & Footwear Association, a Washington, D.C., trade group that represents the biggest and most important apparel and footwear manufacturers in the United States. “It doesn’t seem like the groundwork has been laid for a breakthrough.”
He has been hearing from manufacturers, both big and small, that they are worried and are seriously considering shifting production to other countries. Vietnam is the preferred country for production, but the country’s factories right now can’t accommodate a sudden big influx of business. “All the new businesses going into Vietnam may drive up costs and create a capacity restraint,” he said.
Taking a more sanguine approach on impending tariffs is Julie Hughes, president of the U.S. Fashion Industry Association, a Washington, D.C., group representing apparel and fashion-goods importers. She doesn’t believe new tariffs are necessarily a done deal. “I don’t think they are going to do anything until the two leaders [of China and the United States] meet. The Chinese are pretty smart,” she said. “I suspect they have a strategy.”
The mid-term elections, she said, will also help to interpret the future of more tariffs. If the Republicans keep the U.S. House and Senate, there will be nothing to hold Trump back from adding more tariffs on Chinese goods. If the Democrats win the House and the Republicans keep the Senate, it may slow things down. If the Democrats win both the House and the Senate, expect a big opposition to tariffs.
But if tariffs are imposed after that November meeting in Buenos Aires, expect the Trump administration in early December to draw up a list of more goods to be added to the more than 5,000 items already on the tariff list. Those new tariffs could go into effect as early as January or February.
“This could be a devastating blow to our industry,” said Vered of YMI Jeanswear. “I hope it is not going to happen.”