Weekly News Wrap: JD posts slowest growth in 618 event; Shopee cuts jobs in shopping and food
And Reliance is mulling buying out bankruptcy-hit US cosmetics giant Revlon.
From Reuters:
Total sales by JD.com rose 10.3% over the 18 days of its first major shopping festival since a recent COVID-19 outbreak, the company said, sharply down from the 2021 event's growth of 27.7%.
This year's figure was the slowest for the retailer, showing how consumer appetite in the world's second-largest economy has been hit by lockdowns to halt the Omicron variant of coronavirus and slowing economic conditions.
Chinese shoppers purchased $56.48b (RMB379.3b) of goods on JD's platform over the "618" period, it said on its official WeChat account.
"We are further improving delivery services in urban and rural areas," it added in a statement, referring to efforts during the event that built on its supply chain infrastructure and digital intelligence technology.
The 618 event is China's second-largest shopping festival after Singles Day in November, and was initiated in 2004 to mark JD.com's founding anniversary.
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From Bloomberg:
Sea Limited is making its first major job cuts in areas spanning shopping and food, joining other tech firms downsizing this year in anticipation of the unprecedented market and economic volatility.
Southeast Asia’s largest tech firm plans to let employees go across its e-commerce division Shopee, Chris Feng, the unit’s chief executive, said in an email to employees seen by Bloomberg News. It will reduce headcount across its ShopeeFood and ShopeePay divisions in Southeast Asia.
The cuts will also extend across its Mexico, Argentina, and Chile teams, as well as the cross-border team supporting Spain.
Sea faces increasing pressure to slash costs as growth in its main commerce business comes off a pandemic-era high.
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From Reuters:
Indian conglomerate Reliance Industries is considering buying out Revlon Inc in the United States, days after the cosmetics giant filed for bankruptcy, according to a media report.
The report comes as Revlon filed for bankruptcy earlier this week after global supply chain disruptions drove up raw material costs and prompted vendors to demand upfront payments.
Reliance has pushed its way into the fashion and personal care space in recent months as it diversifies away from its mainstay oil business. It has already established a foothold in the telecom and retail sectors.
Shares of Revlon jumped 20% to $2.36 in premarket trade following the report.
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