"The Race Is On: China's Jingdong Starts 3-Hour Delivery in Major Cities" (Tech In Asia)

Jingdong Mall, formerly known as 360Buy.com, is one of China's largest online shopping platforms and a direct competitor to Alibaba's Tmall. While both virtual malls vie for B2C dominance, Jingdong's recent expansion of delivery options reveals a fundamental distinction between their business models: unlike Tmall, it actually carries inventory and operates its own urban distribution facilities. The platform has just announced two new delivery options — same night delivery for orders placed before 3PM and a three-hour expedited delivery — effective in the cities of Beijing, Shanghai, Chengdu, Wuhan, Shenyang and Guangzhou. Pending successful implementation, the service could expand to additional Mainland cities. This focus on "last-mile" service is a potential game changer in the third-party online retail space. Should Jingdong successfully scale its own courier network to prod competitors towards faster delivery times, it will essentially become the localised equivalent of Amazon. How many Chinese would opt for the convenience of a "Jingdong Prime" membership?

"China To Cut Duties On Swiss Watches As Part Of Free Trade Deal" (Reuters)

A free-trade pact between Switzerland and China was announced last week. Once signed in July, the agreement will significantly reduce import duty on more than 84 percent of Swiss exports into China, including key categories such as timepieces, apparel and fashion accessories. First year tariffs will be cut by 18 percent, followed by an additional 5 percent each year for a total reduction of 60 percent over ten years. In turn, Switzerland will move to eliminate tariffs on nearly all Chinese imports. China is currently Switzerland's third largest trade partner after the European Union and the US. It becomes the first continental European nation to sign such an agreement, which will no doubt provide a boon to Swiss conglomerates such as Swatch Group and Richemont.

"China: Presidential Couple Leaves Mark on Business of Luxury" (Financial Times)

In advance of the upcoming Obama-Xi summit meeting in California, as the Chinese presidential delegation makes its way through three Latin American countries, the international media is once again tracking the fashion cues of First Lady Peng Liyuan. Perhaps more interesting than the actual brands in the spotlight is the Administration’s refusal to condone any form of “style stalking.” The presidential couple’s clean, unbranded style does indeed “personify Beijing’s preferred vision for luxury in China” — accessible, logo-free, inconspicuous — better than a top-down policy approach ever could. In starkly contrasting ways, the White House’s habit of confirming Mrs. Obama’s sartorial choices and Beijing’s mum’s-the-word approach have achieved similar results: admiration for presidential style and a generous dose of renewed interest in the domestic fashion industry.

"Location, Location, Location: Beijing or Shanghai as Brand Headquarters?" (Red Luxury)

Until very recently, foreign brands eyeing the China opportunity still weighed the benefits of basing their operations in Hong Kong — which offered lower barriers to entry than a base on the Mainland and were often extensions of a Greater Asia operation already headquartered in the city. Due to the dynamic growth of the Mainland market, however, brands are now running comparative analysis between headquartering in Beijing or Shanghai.

Commercially-driven Shanghai is considered the nation’s fashion capital and the industry’s preferred choice. With accessibility to manufacturing, a host of supporting professional services and a resident base with more developed fashion taste, the city is frequently chosen for an initial Chinese flagship and as a base for a local management team. Alternatively, Beijing culture trades in power and social influence. As inland and northern cities gain importance in expansion strategies, the capital city is gaining favour for its more centralized position and proximity to the country’s media industry.

"Change Afoot for Investors in China's Retail Sector" (Wall Street Journal)

Private equity investors are wary of the unpredictable Chinese retail sector and becoming more selective about domestic targets. Rather than prioritising rapid store expansion, they are showing interest in restructuring opportunities and retailers and brands that cater to more sophisticated consumer tastes. According to Shanghai-based Bain & Co consultant Weiwen Han "pure growth capital has hit a wall." Instead, the focus has shifted to fine-tuning a target company's management line-up, streamlining its supply chain and trimming its product ranges. Case in point: Li Ning, the former sportswear giant that was overexposed in both stores and inventory when it was overtaken in domestic market share by incoming brands like Nike and Adidas, is currently undergoing a three-year restructuring plan under investor TPG Capital. Investors without such liabilities may want to narrow their targets to categories with strong domestic demand and fewer foreign entrants such as childrenswear or underwear and lingerie.