Weekly News Wrap: Chanel duels South Korean resellers; Dingdong apologizes over expired food products
And Indian beauty company Nykaa is eyeing physical retail expansion.
From Reuters:
As COVID curbs cut travel and duty-free shopping, South Koreans are driving a luxury goods boom at home that has left Chanel barring nearly a third of would-be shoppers to stop bulk buyers snagging $10,000 bags for resale with markups of 20% or more.
The storied French fashion and luxury company told Reuters it has seen traffic to its boutiques in South Korea skid since it began screening for customers it believed might be stocking up purely to flip to others in the resale market.
"We were able to identify them (bulk buyers) after having analysed their buying patterns. Since this policy was implemented, the traffic in our boutiques has decreased by 30%," Chanel told Reuters in a statement. It didn't disclose exactly how it deemed those customers to be potential bulk buyers, and the privately owned business doesn't disclose sales numbers by country.
Chanel's strategy, implemented since July last year, came as global demand for luxury goods was picking up after the worst of the coronavirus pandemic.
Read more here.
From Reuters:
Chinese e-commerce firm Dingdong (Cayman) Ltd has apologised for selling expired food products after the firm was summoned by Beijing's market regulator following a report on food safety by Beijing News.
Dingdong said it has suspended operations at the site where out-of-shelf-life vegetables were relabelled with new expiry dates, and frozen fish products were labelled as fresh, it said in a statement posted on its official Weibo account.
"We sincerely apologise to our customers who have trusted us for a long time. We will identify problems and rectify (them) to avoid a similar situation from happening again," it said in the statement.
The market supervision bureau of Beijing's Haidian District said it had launched an investigation into Dingdong after Beijing News uncovered the irregularities.
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From CNBC:
Whilst Nykaa started as an e-commerce platform, founder and CEO Falguni Nayar is a “big believer” in physical retail and said there is demand from consumers.
“The last two years have been very much impacted by Covid-19 and what it does to physical retail. However, we do believe that if you look at the math and statistics, e-commerce penetration is only 8%,” Nayar told CNBC.
“A lot of beauty is sold offline and Nykaa has become such a big brand that we cannot ignore our offline channel as well as offline consumers. There will be greater emphasis on stores, but I think we will continue to be a dominant e-commerce player.”
Read more here.
https://www.cnbc.com/2022/03/18/indian-beauty-company-nykaa-looks-to-physical-retail-expansion.html
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