Weekly News Wrap: Shanghai boosts duty-free economy; Fast Retailing takes hit from Vietnam lockdown

And online classifieds business Carousell raises $100m in fresh funds.

From Reuters

The Shanghai government will support companies applying for approval to sell duty-free goods, and encourage duty-free shops to be set up at airports, hotels, malls, and other commercial venues, municipal authorities said.

The development of a "duty-free economy", which will encourage spending on imported products, including heavily taxed luxury goods, was outlined in a 2021-2025 consumption plan released on Saturday.

Presently, duty-free spending in China is largely concentrated in the southern island province of Hainan, where the annual limit on individual duty-free spending was hiked more than threefold to $15,467 (RMB100,000) last year.

Tariffs on imported consumer goods vary in China, with taxes on some luxury items such as perfumes and watches exceeding 30%.

Lured by the substantially lower prices, millions of domestic tourists flock to Hainan's malls each year, and the numbers have been boosted by restrictions on overseas travel resulting from the COVID-19 pandemic.

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From Reuters

Some clothing releases at Uniqlo stores will be delayed due to COVID-19 lockdowns at partner factories in Vietnam, Uniqlo's Japanese parent firm, Fast Retailing said.

The delays will affect four items of the company's Uniqlo U brand which were due to be released in Japanese stores in September and October, a company spokesperson said.

Most garment factories in Vietnam are full of orders now, but they are facing a shortage of workers, particularly facilities located in lockdown areas, according to an executive at a state-run garment firm in Hanoi who asked not to be identified.

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From CNBC

Southeast Asia’s online classifieds business Carousell on Wednesday said it raised $100m in fresh funds that value the company at more than a billion dollars.

South Korean private equity firm STIC Investments led the investment round.

The Singapore-based Carousell said it is now valued at $1.1b — which makes it Southeast Asia’s latest unicorn, a start-up worth more than a billion dollars.

“We believe that the accelerated adoption of digital experiences is an opportunity for us to double down on our recommerce efforts with a focus on convenience and trust, to unlock step-change growth in our community,” said Quek Siu Rui, co-founder and CEO of Carousell.

Recommerce refers to buying and re-selling previously owned products.

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