In April, the Chinese government denied the allegations of human rights abuse in Xinjiang after the US, EU, Britain and Canada imposed sanctions. The Chinese state media singled out Swedish fashion retailer H&M for posting on social media about its concerns in Xinjiang last year.
Puma is also struggling with shipment delays due to congestion at ports and container shortages. Meanwhile, the cost of freight has doubled, which will likely remain for another 12 months, according to Gulden. However, the business remains optimistic about its FY21 sales, expecting it to grow in the “mid-teens” and bring more profitability compared to FY20.
Deloitte: Indian consumers prioritise health over retail
More Indian consumers are prioritising health and safety purchases over discretionary items, and also preferring to buy online due to the country’s high Covid-19 infection rate in recent weeks, according to Deloitte’s Global Consumer Tracker.
According to the report, Indians are spending their money on healthcare products (48 per cent), medicine (33 per cent), household goods (44 per cent) and groceries (47 per cent), as they start preparing for an ‘at-home economy’.
“Individuals are not looking to venture out as they do not feel safe about going to a store, restaurant, engaging in in-person activities, staying in a hotel, returning to a workplace, taking a flight, etc.,” Deloitte’s report read.
The report showed 67 per cent of consumers prefer to buy locally despite the higher pricing, while 71 per cent of consumers prefer brands that are responding well during the Covid-19 pandemic.
In an article from The Economic Times, Retailers Association of India (RAI) urged finance minister Nirmala Sitharaman to extend the emergency credit line for retailers affected by the pandemic.
“Retail businesses across the country are among the worst hit as several states have mandated lockdown of malls and shopping complexes where most modern retailers operate,” RAI said in a statement. “The industry is finding it hard to survive through the immense financial stress that is threatening to derail businesses.”
The RAI said that if there is a failure to support the industry, it could risk three million jobs in the retail sector. RAI CEO Kumar Rajagopalan said almost 80 per cent of stores are shut down due to lockdown restrictions, while the shops currently open do not have enough foot traffic.
Naked Brands to divests Bendon for NZ$1
New Zealand’s Naked Brands Group is letting go of lingerie chain Bendon and selling it to Naked’s chairperson and CEO Justin Davis-Rice and Bendon’s CEO Anna Johnston for NZ$1. This will forgive a $40 million loan and provide $7 million to maintain its inventory and product design, the NZHerald reported.
The divestment is expected to free up available capital for Naked Brands while it closes its unprofitable stores to focus on its e-commerce strategy.
“With available cash of $270 million, a clean balance sheet with no debt and a re-invigorated management team and board of directors, I could not be more excited to execute on our business strategy to ultimately drive revenue growth with positive free cash flow,” said Davis-Rice.
“[Last Friday’s] vote closes the chapter on the company’s underperforming bricks-and-mortar business and now positions Naked for the next cycle of growth initiatives that we expect to reward shareholders in 2021 and beyond.”
Bendon is sold at David Jones and has a number of stores in New Zealand.
Gucci, Facebook file lawsuit on alleged counterfeit goods
Gucci and Facebook have filed a joint lawsuit against an individual in California for allegedly selling fake Gucci products on the social media platform, according to Reuters. The companies said the person was using different Facebook and Instagram accounts for their international online counterfeit business.
“More than one million pieces of content were removed from Facebook and Instagram in the first half of 2020, based on thousands of reports of counterfeit content from brand owners, including Gucci,” a statement from the brand said.
Last year, the luxury brand’s in-house intellectual property team took down four million online counterfeit products, confiscated 4.1 million fake goods and disabled 45,000 websites and social media accounts.
Deliveroo Singapore beef-up delivery service
Deliveroo Singapore has partnered with Dairy Farm to provide customers with access to groceries from 30 Giant and 25 Cold Storage stores. Consumers can now purchase more than 1400 grocery items online, which can be sent to them (on average) within 32 minutes, according to a statement from Deliveroo.
“Giant and Cold Storage are well-loved household names, and we are delighted to partner with them exclusively to deliver their great variety of goods right to our customers’ doorsteps,” said Sarah Tan, general manager at Deliveroo Singapore.
“As Singaporeans continue to embrace cooking up culinary creations at-home, Deliveroo’s new partnership with the Dairy Farm Group aims to provide even more convenience by giving them the opportunity to purchase fresh produce and daily household essentials via the platform whenever they need them, and even ready-to-eat meals perfect for nights off from the kitchen.”
Online and in-store prices for the products are the same. Customers will be charged for delivery based on distance, although the service is free for Delivery Plus and Plus subscribers.
“We understand that our customers, in addition to amazing prices and value, seek convenience,” added Lee Yik Hun, marketing director of Southeast Asia Food at Dairy Farm Group. “This partnership with Deliveroo reinforces our commitment in giving them what they want, from the comfort of their homes.”
Deliveroo’s current partners include Marks & Spencer, Blu Kouzina Mart, Ryan’s Grocery, Kuriya Japanese Market and The Providore.