{"id":10026,"date":"2024-11-08T05:23:01","date_gmt":"2024-11-08T05:23:01","guid":{"rendered":"https:\/\/gsrra.com\/?p=10026"},"modified":"2024-11-08T05:23:02","modified_gmt":"2024-11-08T05:23:02","slug":"multinational-companies-surpass-expectations-in-chinas-3rd-quarter-operations","status":"publish","type":"post","link":"https:\/\/gsrra.com\/?p=10026","title":{"rendered":"Multinational companies surpass expectations in China’s 3rd quarter operations"},"content":{"rendered":"\n

“There is still a lot of untapped opportunity in China. If you go to second-tier and third-tier cities, it’s vastly different,” said San Yan Ng, Lululemon’s country managing director.<\/strong><\/p>\n\n\n\n

Yum China, which runs KFC, Pizza Hut, Taco Bell, and other fast-food chains in China, recorded total revenue of 3.07 billion U.S. dollars for the July-September quarter, up 5 percent year on year, Nikkei Asia reported Tuesday.<\/p>\n\n\n\n

Meanwhile, its operating profit rose 15 percent to 371 million dollars, pushing the operating margin up by a full point to 12.1 percent, and net profit was up 22 percent year on year to 297 million dollars, according to the report.<\/p>\n\n\n\n

Anne Ling, a Hong Kong-based analyst at Jefferies Group, said the quarterly sales “were in line” while the operating profit “beat market and our estimates.”<\/p>\n\n\n\n

Adrian Ding, Yum’s acting chief financial officer, called a recent string of stimulus measures by Chinese authorities “quite encouraging.” “Obviously, it will take time to influence consumer behavior and impact business like ours,” said Ding.<\/p>\n\n\n\n

Moreover, to cope with the headwinds, the company has been expanding its footprint rapidly by introducing new cheaper store models to capture cost-conscious consumers.<\/p>\n\n\n\n

The number of new stores increased by 438 in the third quarter to 15,861 with 11,283 KFCs and 3,606 Pizza Huts.<\/p>\n\n\n\n

The store count of Kcoffee — a cafe chain set up side by side with existing KFCs to minimize costs — reached 500 outlets. It serves a 9.9 yuan (1.4 dollars) combo of coffee and a hot dog, along with other “value for money” offerings. Pizza Hut Wow, a more affordable version of the classic pizza chain, reached 150 stores in less than half a year.<\/p>\n\n\n\n

Yum CEO Joey Wat described the two new chains as “breakthrough business models,” which have “enabled us to broaden our addressable market and capture new customer demand.”<\/p>\n\n\n\n

Canadian sportswear magnate Lululemon in China has picked up momentum in sales in the third quarter, following a slowdown in the second quarter, according to a BofA Securities analyst cited by Yahoo News.<\/p>\n\n\n\n

Data released by Meritco Services shows that Lululemon’s China sales increased 48 percent in August and 67 percent in September, with a 98.4 percent correlation to reported sales, marking a significant rebound from the second quarter.<\/p>\n\n\n\n

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People visit the Lululemon booth at the Consumer Goods Exhibition Area during the seventh China International Import Expo (CIIE) in east China’s Shanghai, Nov. 7, 2024. (Xinhua\/Zhang Cheng)<\/figcaption><\/figure>\n\n\n\n

Lululemon has long regarded China as a significant growth opportunity, and this positive trend reinforces their confidence in its diverse growth avenues, said the analyst.<\/p>\n\n\n\n

Lululemon’s long-term plan aims for a fourfold increase in international revenue by 2026, with China as a key component of this growth trajectory, the analyst added.<\/p>\n\n\n\n

The sports brand is looking beyond China’s big urban centers for growth, as it “bets on the country’s growing middle class” to counter a slowdown in the United States, according to a report by Bloomberg.<\/p>\n\n\n\n

“There is still a lot of untapped opportunity in China. If you go to second-tier and third-tier cities, it’s vastly different,” said San Yan Ng, Lululemon’s country managing director.<\/p>\n\n\n\n

“Chinese customers care more about the experience,” said Ng, adding that it’s no longer about buying a T-shirt for the sake of the T-shirt. There’s a “shift from material goods to experience.”<\/p>\n\n\n\n

Reference Link:- https:\/\/english.news.cn\/20241108\/09fad4a6aee74954946a2a9d272a0874\/c.html<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

“There is still a lot of untapped opportunity in China. If you go to second-tier and third-tier cities, it’s vastly different,” said San Yan Ng, Lululemon’s country managing director. Yum China, which runs KFC, Pizza Hut, Taco Bell, and other fast-food chains in China, recorded total revenue of 3.07 billion U.S. dollars for the July-September […]<\/p>\n","protected":false},"author":1,"featured_media":10027,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[2],"tags":[29,132,5835,5834,105,5832,5833,4381,5836],"class_list":["post-10026","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sample-category","tag-china","tag-economy","tag-encouraging-economy","tag-expectations-surpassed","tag-geopolitics-2","tag-multinational-companies-in-china","tag-multinational-enterprises","tag-stable-economy-2","tag-trade-business-environment"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/10026","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10026"}],"version-history":[{"count":1,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/10026\/revisions"}],"predecessor-version":[{"id":10028,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/10026\/revisions\/10028"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/media\/10027"}],"wp:attachment":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10026"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10026"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10026"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}