Worldview | Singles’ Day Uncertainty Follows China Stimulus Disappointment

🇨🇳 China’s largest e-tailers withhold key Singles’ Day results yet again. Neither of the country’s two largest e-commerce players disclosed gross merchandise value, a measure of sales, or the total number of transactions for the annual shopping festival. It is the third year running that Alibaba Group has withheld GMV figures. Alibaba, which operates Tmall and Taobao, simply said it recorded “robust growth” in sales this year and a “record number” of shoppers. JD.com reported a more than 20 percent year-over-year increase in shoppers. Independent tracker Syntun estimated transactions across all e-commerce platforms in the weeks running up to Nov. 11 rose 27 percent to 1.44 trillion yuan (nearly $200 billion). But many platforms began promotions much earlier than usual, meaning that spending was spread over as many as 29 days, versus 19 days in 2023. That’s the longest Singles’ Day festival on record. Investors for years have scrutinised business during the event as a barometer for Chinese consumption. But selective disclosures from tech leaders this year paint an incomplete picture of whether Beijing’s effort to ignite the sputtering economy is taking hold. Last week, Chinese policy-makers gave local governments a $1.4 trillion debt swap but stopped short of a new stimulus. Though the move underwhelmed markets, it left room for China to a deliver a fiscal response to a potential trade war next year when US president-elect Donald Trump takes office. [BoF, Bloomberg, Reuters, Financial Times]

🌎 Latin American e-tailer Mercado Libre loses $17 billion of market value. The Uruguay-based, Argentina-founded firm that provides e-commerce and fintech services to 218 million customers across 18 Latin American countries saw its shares fall 16 percent on Nov. 6, after the company reported net income that trailed estimates. However, most analysts remained broadly positive on the long-term prospects of the marketplace, which sells everything from electronics and cars to fashion and beauty products. The company reported gross merchandise value of $12.9 billion in the quarter with Brazil and Mexico growing 34 percent and 27 percent respectively. Even after the selloff, Mercado Libre remains Latin America’s most valuable company, with a market capitalisation of $89 billion. [Bloomberg]

🇧🇼 New Botswana president to repair relations with diamond firm De Beers. Duma Boko, who this month replaced Mokgweetsi Masisi said, “we have to try to safeguard the goose that lays for us the golden egg,” in reference to the South African-British diamond mining, trading and retailing giant. The African nation, one of the world’s top diamond producing countries by value, owns the 15 percent of De Beers Group that Johannesburg-listed Anglo American does not own, and also has a 50/50 joint venture with De Beers called Debswana, which supplies most of the group’s diamonds. Relations between Botswana and De Beers were strained under Masisi. [Financial Times]

🇵🇭 Archie Carrasco is appointed publisher of Vogue Philippines. The founder, chairman and CEO of media group AGC Power Holdings Corp., parent company of Vogue Philippines license partner Mega Global Licensing Inc., will now also serve as publisher of the title, further reinforcing his leadership of the magazine launched in 2022. Carrasco oversees AGC’s portfolio which includes Mega, Lifestyle Asia, Bluprint, The Business Manual, as well as local and regional franchises of international titles such as Nylon Manila, Billboard Philippines and titles that are set to launch in the coming months such as VMan Southeast Asia, Allure Philippines and Rolling Stone Philippines. [BoF Inbox]

🇮🇳 India’s Aditya Birla Fashion & Retail Ltd posts another quarterly loss. The group has reported a consolidated net loss of 214.70 crore rupees ($25.4 million) for the second quarter ended Sep. 2024, compared to a loss of 200.34 crore rupees for the same period last year. ABFRL’s holdings include Pantaloons, Sabyasachi, Tasva, multi-brand retailer The Collective and Galeries Lafayette India whereas a demerged listed entity called Aditya Birla Lifestyle Brands Limited includes brands and partnerships such as Louis Phillippe, Van Heusen, American Eagle, Forever 21 and Reebok. ABFRL said that Q2 financial results were “not comparable with previous quarters” due to the merger of TCNS Clothing and the acquisition of Tarun Tahiliani parent Goodview Fashion Private. [Economic Times]

🇨🇳 Trump win prompts Steve Madden to drastically cut China imports. “We have been planning for a potential scenario in which we would have to move goods out of China more quickly,” the American footwear brand’s CEO Edward Rosenfeld on Nov 7. “And so, as of yesterday morning, we are putting that plan into motion.” Rosenfeld indicated that the firm would cut goods imported from China by up to 45 percent as it prepares for Trump’s tariff plans which include a proposal of a 60 percent tariff on Chinese imports. Imports account for about two-thirds of the company’s overall business and, of that amount, over 70 percent of those goods are from China. [Associated Press]

🇮🇳 Noel Tata joins the board of India’s Tata Sons board in power move. Tata Sons, the holding company of Tata Group’s diverse interests in sectors ranging from software and steel to travel and telecoms, has named Noel Tata as a board member. Chairman of the group’s apparel subsidiary Trent Limited since 2014, Noel Tata took indirect control of the group last month when he was appointed chairman of Tata Trusts (which has a 66 percent ownership of Tata Sons) following the death of his half-brother of former group chairman Ratan Tata. A major player in India’s fashion sector, Tata Group holds Tata Cliq, Tata International, Titan Company, Trent Limited, Westside and brands Zudio, Samoh, Utsa and Misbu. [Economic Times]

🇨🇳 Ralph Lauren Corp raises outlook, bucking China market slowdown. The US company is forecasting its annual revenue to increase between 3 percent to 4 percent, above analysts’ estimates. Reporting strong revenue growth in Asia in the most recent quarter, with sales in China up by what it said was a low-teen percentage increase. China has been a source of weakness for other high-end brands but at Ralph Lauren, growth this quarter was led by strong China performance. Revenue is still increasing in part because it has more room to grow: it only generates around 8 percent of sales in China versus more than 20 percent at other premium global brands. [BoF]

🇹🇷 Turkish supplier Akcanlar dropped by Inditex over workers’ rights. The Spanish fast fashion giant has ceased sourcing negotiations with the supplier after it confirmed allegations by Mehmet Turkmen, head of Turkey’s textile, weaving and leather workers’ union Birtek-Sen, that Akcanlar Tekstil has been involved in union busting activities. The supplier, which operates several yarn-spinning mills in Gaziantep, reportedly dismissed 90 workers without compensation, leading to subsequent protests over wages, hours and working conditions. Turkmen contrasted Inditex’s response to that of Levi’s, which he said was “never interested” in taking action against similarly accused apparel maker Ozak Tekstil in Urfa earlier this year. [Sourcing Journal]

🇮🇳 P&G India’s annual sales surpass $2 billion threshold. The local unit of the US-based personal care and FMCG multinational has reported net sales of 17,429 crore rupees in the 2024 financial year, reflecting an 8 percent year-over-year increase, against 1583 crore rupees in net profit, an increase of 10 percent. The firm, which sells brands like Olay, Pantene and Herbal Essences, has been operating in the country for more than three decades, but is still much smaller than competitor Unilever’s local unit Hindustan Unilever. [Economic Times]

🇰🇷 Farfetch’s Korean owner Coupang misses retail sales estimates. The New York-listed e-commerce giant founded in South Korea has posted net sales of $6.14 billion for the third quarter ended Sep. 2024, up from a year earlier but below analysts’ estimates of $6.24 billion. Operating income totalled $109 million, also slipping below projections. Net income fell in the quarter, reflecting losses at Farfetch, the online luxury company Coupang acquired in January. CEO Bom Kim said that Farfetch was near breakeven on an adjusted earnings before interest, taxes, depreciation and amortisation basis in the past quarter, a goal he previously targeted to reach by the end of 2024. [BoF]

🇮🇳 Indian personal care major Emami Limited sees 19 percent profit rise in Q2. The company has reported net profit of 213 crore rupees ($25.2 million) for the second quarter ended Sep. 2024, against revenue from operations of 891 crore rupees, up 3 percent from the comparable period in the previous financial year. The Kolkata- based personal care, beauty and wellness firm is owned by Emami Group, a multinational conglomerate founded by Radhe Shyam Agarwal and Radhe Shyam Goenka in 1974 as a cosmetics brand whose diversified holdings now range from retail and real estate to paper and food. Its portfolio also includes skincare and body care brands BoroPlus, Navratna and Germany-founded Crème 21 and hair care brand Kesh King among others. [Economic Times]

🇨🇳 Fashion leaders network at the China International Import Expo. LVMH, Kering, Richemont and L’Oréal brands as well as Burberry, Coach, Uniqlo, Zara and Nike were among the multinational companies taking part in the seventh edition of CIIE, the Shanghai trade event held from Nov. 5-10, in a bid to strengthen relationships with Chinese officials, partners and suppliers. “We are committed to keeping investing in China to unlock further growth potential here,” said André Maestrini, Lululemon’s executive vice president of international, noting his expectations for China to become the Canadian athleisure brand’s second-largest market worldwide by 2026, increasing its store count from 120 to 200. [Shanghai Daily, Jing Daily, BoF Inbox]

🇮🇳 Indian jeweller Titan reports 23.1 percent decline in quarterly profit after tax. The country’s largest watch and jewellery group, whose portfolio includes its namesake brand alongside Tanishq, Zoya, Mia and CaratLane, has reported PAT of 704 crore rupees ($83.4 million) in the second quarter ended Sep. 2024, down from 916 crore rupees in the same quarter last financial year. Tata Group-owned Titan Company managing director CK Venkataraman blamed the decline in part on customs duties relating to importing gold and “operations relating to the diamond jewellery business.” [Economic Times]

🇮🇳 India’s Raymond Lifestyle reports 69 percent profit decline in Q2. The company, one of the world’s largest producers of suit fabric and a maker of men’s shirting fabric and men’s branded apparel, recorded consolidated net profits of 42.18 crore rupees ($4.9 million) for the quarter ended Sep. 2024, against 139.33 crore rupees in the comparable period in the previous financial year. Managing director Sunil Kataria attributed the firm’s financial performance to “subdued demand, weaker consumer sentiment and higher inflationary pressures.” [Economic Times]

🇮🇳 Tata Group’s fashion firm Trent sees Q2 profit surge 46.9 percent. The Indian firm reported consolidated net profit of 335.06 crore rupees ($39.6 million) for the quarter ended Sep. 2024, up from 228.06 crore rupees in the comparable period a year earlier. Trent’s holdings include joint venture partnerships with international brands like Zara, Westside department store chain, fashion brands Zudio, Samoh and Utsa and beauty brand Misbu. [Economic Times]

🇮🇳 India’s Safari Industries posts 25.4 percent profit decline in Q2. The company behind the Safari luggage and accessories brand has reported consolidated net profit of 29.66 crore rupees ($3.5 million) in the quarter ended Sep. 2024, against 39.76 crore rupees in the comparable period a year earlier. [Economic Times]

🇿🇦 E-tailer Takealot expands deliveries to South African townships. The Naspers-owned, Cape Town-based e-commerce major said it plans to recruit 1000 last-mile delivery drivers through both its own network and sister company Mr D, an on-demand delivery firm, in a bid to boost business to the country’s under-developed residential areas, starting with those in Mpumalanga province. [Business Live]

🇮🇳 India’s Relaxo Footwears posts 17 percent profit decline in Q2. The producer and retailer of shoe, sandal and slipper brands including Maryjane, Sparx and Flite has reported consolidated net profit of 37 crore rupees ($4.3 million) in the quarter ended September, against 44 crore rupees in the comparable period a year earlier. [Economic Times]