China News Brief
    March 28, 2024

    China’s e-commerce titans on track for stratospheric growth; iPhone exports to China seen shrinking; Jordan Brand lands in Beijing.
    Overseas expansion will propel China's e-commerce giants, forecasts HSBC. Photo: Shutterstock

    China’s e-commerce titans on track for stratospheric growth#

    By 2027, Chinese e-commerce giants  like Temu, AliExpress, Shein, and TikTok will each surpass $100 billion in Gross Merchandise Value (GMV), according to a new HSBC forecast. Overseas expansion is driving growth, with global GMV projected to hit $500 billion by 2025. Temu’s GMV is forecasted to reach $140 billion, AliExpress' $118 billion, Shein's $100 billion, and TikTok's $111 billion by 2027.

    iPhone exports to China seen shrinking#

    According to media estimates, iPhone shipments  to China were approximately 2.4 million units last month, a 33% decrease from last year, continuing the trend of declining shipments since the beginning of the year. In January, Apple’s shipments in China were estimated at 5.5 million units, a 39% YoY decrease. Apple’s top management seems to be attempting a comeback in China. Apple CEO Tim Cook visited the country earlier this month, toured the latest flagship store in Shanghai, and attended the China Development Forum held in Beijing.

    Jordan Brand lands in Beijing#

    Jordan Brand this week opened  a high-end concept store, dubbed World of Flight, in Beijing’s Taikoo Li. It’s the brand’s fourth such store, and joins locations in Milan, Tokyo, and Seoul. The store spans four floors, featuring seasonal new products and the limited-edition luxury series Wings, and pays homage to basketball culture.

    Wtaps expands in Shanghai#

    Japanese brand Wtaps today announced  the opening of a new store in Shanghai on Saturday this week. Founded by Tetsu Nishiyama in 1997, the brand has been at the vanguard of Japanese streetwear.

    Luxury malls a bright spot for Hang Lung Properties#

    Hang Lung Properties’ latest annual report shows  revenue declined 1% YoY in 2023 to $1.39 billion (HK$10.88 billion), attributed to exchange rate factors and reduced property sales income. Leasing income increased by 2% YoY to $1.39 billion (HK$10.88 billion). The firm’s mainland China business rebounded, with tenant sales and leasing income rising by 23% and 7% YoY, respectively. Strong growth was seen in high-end shopping malls, including Shanghai Plaza 66, which saw revenue climb 10% YoY. Other locations in Wuxi, Dalian, Kunming, and Wuhan also experienced growth.

    Mainland buyers drive Hong Kong luxury home sales#

    Since the removal of property curbs in Hong Kong last month, mainland Chinese buyers have flocked  to purchase luxury homes in the SAR valued at $3.9 million (HK$30 million) or more, comprising 70% of primary sales, up from less than 50% previously. This surge, aided by the Top Talent Pass Scheme, follows the government’s scrapping of decade-old property market curbs, including stamp duties targeting non-permanent residents. Additionally, the Hong Kong Mortgage Authority relaxed measures, now allowing 70% mortgage financing for homes valued under $3.9 million (HK$30 million).

    Industrial profitability rebounds in China#

    China’s industrial profits surged  by 10.2% in the first two months of the year compared to the same period last year, rebounding from a 2.3% decline in 2023, according to National Bureau of Statistics data. This uptick follows positive indicators earlier in the month, indicating a stabilizing economy, although challenges persist in the property market, suggesting a divergence in China’s recovery. While state-owned firms saw a modest rise and foreign companies experienced significant gains, concerns remain about global demand uncertainty, energy price fluctuations, and supply chain disruptions.

    Supreme x MM6 Maison Margiela unveils collection#

    The Supreme x MM6 Maison Margiela collab’s clothing and accessories collection will be released  in Asia on Saturday this week. The partnership pairs MM6 Maison Margiela’s design philosophy with Supreme’s skateboard aesthetic. Deconstruction techniques are employed on baseball jackets, creating a patchwork visual effect; T-shirts and tank tops similarly feature deconstruction for a faux-layered look; work jackets, hoodies, and cargo pants are adorned with paint splatter elements.

    Canada Goose slashes workforce#

    Canada Goose has announced  that, in response to slowing sales, the brand is implementing global layoffs, with the proportion as high as 17% of its workforce. As of April 2023, Canada Goose had a total of 4760 employees, meaning approximately 800 employees will be affected. Sales growth for Canada Goose in the first two quarters of the previous fiscal year exceeded 20%, but slowed to single-digit growth in the latter two quarters. Brand CEO Dani Reiss stated that the purpose of the cuts is to better scale the brand. Though the Asia-Pacific region was the only area where the brand saw revenue growth in the third quarter of last year, company CFO Jonathan Sinclair indicated that the Chinese market is not immune to the effects of the slowdown.