1. Adidas Closes Its Only Factory in China – Adidas yesterday announced that it was closing its only company-owned factory in China ( situated in Suzhou ), although the country would continue to be its “ main global production site “ via subcontractors.
2. Second Airport for Beijing – The final proposal for a second airport in Beijing is expected to be handed to the State Council by the end of this year and to come into operation by 2017. The delayed timetable for the stop-start project, originally slated to come into operation by 2015, means the overloaded Beijing Capital International Airport will have to cope with growth in passenger traffic to 110 million before the new airport is opened — one-third above its designed capacity.
The existing airport handled 82 million passengers last year and is poised to surpass Hartsfield-Jackson Atlanta International Airport as the world’s biggest airport in terms of passenger traffic.
3. Louis Vuitton Seeks to Cement Exclusive Luxury Status in China with Made-to-Order Concept – Louis Vuitton is courting China’s wealthy with one-of-a-kind shoes and bags it is branding as unique works of art to reclaim its exclusive cachet in the luxury market.
” The made-to-order concept is the ultimate luxury, “ Louis Vuitton chief executive Yves Carcelle said during a tour of the new store, to be opened in Shanghai on July 21, which the company calls a “ maison “.
China is the world’s third-biggest market for personal luxury goods, worth at last USD25 billion. In the next three years, it is expected to Leapfrog over Japan and the United States to take the top spot, with the luxury segment expanding to USD29 billion.
4. Inflation Worries Hit Consumer Sentiment in Hong Kong – Consumer confidence in the economy and livelihoods dropped to a four-year low in Hong Kong in the second quarter, a survey by City University shows.
The consumer confidence index fell to 77.5 in the quarter, the lowest since the quarterly study was launched in 2008. The reading in the previous quarter was 80.7.
5. Slow Growth Crimps Profits – Some of China’s biggest companies are warning of unexpectedly sharp falls in earnings of up to 80%. Some 233 companies with shares traded on the mainland’s two exchanges expect to report losses for the first half, while another 449 expect lower profits compared with a year earlier, according to Xinhua.
Meanwhile, growth in retail sales has declined steadily, a setback for government efforts to reduce reliance on exports and investment by creating consumer-driven growth.