The Week in Brief

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Challenger brand On reports record sales as Asia Pacific demand lifts 74 percent

On Holdings reported sales of CHF 567.7 million (USD 667.44 million) for the second quarter, up 27.8 percent, thanks to surging sales across the Swiss sneaker firm‘s markets, especially in Asia Pacific.

For the second quarter, On sales in Europe, the Middle East and Africa increased 21.8 percent, while the Americas rose 24.8 percent.

However, the biggest growth was seen in the Roger Federer-backed firm’s Asia Pacific market, up 73.7 percent. By category, sales from shoes, apparel and accessories increased by 26.7 percent to CHF 542.5 million, 63 percent to CHF 21.9 million, and 23.6 percent CHF to 3.3 million, respectively. Read the full article here.

Gen Alpha customers are shaping the future of South Korea’s consumption and payment landscape

According to Euromonitor’s database Passport – Consumer Finance, the number of debit cards in South Korea has been decreasing since 2022 and is expected to continue decreasing in 2024, with an expected CAGR of -0.8 percent for the number of cards in circulation during these years.

One certain reason for the decrease in debit card issuance is the decline in the main users: teenagers.

Another reason for the decrease in teenage users is the introduction of other options, such as credit cards issued based on their parents’ credit.

And Korean teenagers use credit cards the most at retailers such as convenience stores and Daiso, a variety store in South Korea, studies show. With a high education rate, teenagers – Generation Alpha – in South Korea spend most of their days engaged in extracurricular activities, which lead them to be on the move frequently. Read the full article here.

Starbucks finds a new CEO in Brian Niccol

In a sweeping restructuring move, Starbucks Corporation has unveiled significant changes to its upper echelon, with key appointments and departures shaking up the coffee giant’s executive landscape.

Brian Niccol, the current chairman and CEO of American food company Chipotle, is set to take the reins as the new chairman and CEO of Starbucks from September 9, 2024.

Laxman Narasimhan, the outgoing CEO of Starbucks, is stepping down not only from his chief executive position but also as a director on the Starbucks board with immediate effect. Read the full article here.

JD.com, Alibaba revenues miss expectations on cautious Chinese spenders

E-commerce giants JD.com and Alibaba reported sales last quarter that missed expectations, with both firms offering an increased focus on discounts and lower-priced goods, as Chinese shoppers become more cautious about spending.

JD.com said total revenue rose 1.2 percent to CNY 291.40 billion (USD 40.71 billion) in the second quarter, missing estimates of CNY 292.89 billion, according to LSEG data. While sales did miss, JD.com’s second-quarter profit rose 73.7 percent to CNY 9.36 per share, excluding items, beating estimates of CNY 6.07.

In a similar result, arch rival Alibaba Holdings reported revenues of CNY 243.24 billion (USD33.98 billion) for the quarter ended June 30,? up 4 percent, compared with analysts’ average estimate of CNY 249.05 billion yuan, according to LSEG data. Read the full article here.

SEE ALSO:

• Singapore-based womenswear brand Love, Bonito enters the Philippine market with its first physical store in Ayala Malls’ Greenbelt 3
• Tapestry, the owner of Coach, Stuart Weitzman, and Kate Spade brands, said sales in Greater China plunged 13 percent in the quarter, alongside a 9 percent decline in Japan
• Blue Bottle Coffee makes its debut in Southeast Asia with a pop-up in Singapore
• Marimekko aims to focus on APAC, its second-largest market, as a key area for international growth

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