2020.11.13
INDUSTRY NEWS - 2020.11.13
1、禁標記「香港製造」 商經局稱美國願磋商
【明報專訊】美國今年8月公布，要求本港出口到美國的貨品不可標記產地為「香港」，而要標記「中國」，有關規定昨日（10日）生效。港府上月底根據世貿爭端解決機制，要求與美方就新規定磋商，商務及經濟發展局表示，美國前日（9日）回覆，接受香港磋商要求，雙方將按機制磋商。
中華廠商會獲港府授權簽發「香港產地來源證」，廠商會表示，將按工貿署的指引簽發「香港產地來源證」。按工貿署發出的通告，若輸美貨品的原產地標示為「中國」而非「香港」，相關出口商申請「香港產地來源證」時須作特別聲明，說明貨品原產地標示為「中國」，僅為符合美國政府的規定。珠寶是本港主要出口貨品之一，珠寶製造業廠商會副主席葉美珠表示，新規定對代工生產的廠商影響不大，因買家已接受中國製造的產品，最重要品質不變。
資料來源：明報 (2020年11月11日)
2、回港易計劃｜廣東省或澳門港人返港 可申配額11月23日起豁免檢疫
政府今早（11日）舉行防疫措施記者會表示，將實施「回港易」計劃，身處廣東省或澳門香港居民回港可豁免14天檢疫。
「回港易」計劃由11月23日起開始，廣東省及澳門香港居民取得配額及符合條件可免檢疫，首階段深圳灣口岸配額每日3000人，港珠澳大橋配額每日2000人。
申請條件：
．香港居民
．14日內要身處香港、廣東省或澳門
．回港當日或前3天接受新冠病毒核酸檢測，結果呈陰性
．預先取得「回港易」計劃預約名額
計劃詳情按此：https://www.coronavirus.gov.hk/chi/return2hk-scheme.html
資料來源：明報 (2020年11月11日)
3、世界工廠變世界市場 雙循環倒逼平台監管
相較美國大選，內地民眾的注意力更放在一年一度的「雙十一」電商購物節上，不過，今年電商平台屢遭整頓，先是螞蟻IPO觸礁，而後在雙十一前晚，監管又推出針對電商平台的反壟斷規定，接連釋放對互聯網企業監管從嚴的訊號。
國家市場監管總局前天發布《關於平台經濟領域的反壟斷指南（徵求意見稿）》，明確一系列「壟斷行為」，包括近年備受詬病的，在大促銷期間強迫商家只能選擇一個平台參與的行為，以及利用大數據算法就同一貨品「按人定價」。
近年隨着互聯網經濟崛起，科技巨頭的壟斷化問題愈加受到關注。因互聯網的產業特點之一，就是馬太效應--大者恒大，贏者通吃。傳統產業或許能夠借助地域限制或物理區隔，讓數家規模相當的企業相安無事，但互聯網卻是不一樣的世界，企業的核心優勢是流量入口，靠規模致勝，並借助規模優勢構建自己的生態圈，以數據為武器不斷擴大疆域。
面對新生事物，監管總是會慢半拍，一方面是監管自身水平有限，難提前預判，另方面在新經濟模式誕生之初，減少干預令其自由生長，看它對經濟更有裨益還是風險。
今年初新冠疫情突如其來，傳統產業遭受重創，互聯網經濟的韌性和貢獻能力在極端情況下獲得印證。前三季度，社會消費品零售總額同比下降7.2%，而網上零售額逆勢增長9.7%。
疫情將互聯網經濟快速推向了「大到不能倒」和「大到不能亂」的風口，倒逼監管層不斷釋出給科技巨頭「上鎖」的訊號，這種訊號在阿里巴巴創始人馬雲批評監管的「外灘演講」之後格外強烈。前人民銀行行長周小川日前在博鰲亞洲論壇國際科技與創新論壇上就直言，科技創新在催生巨大動能的同時，也給社會治理和全球治理帶來巨大挑戰，互聯網科技巨頭掌控大量數據和市場份額，形成壟斷抑制公平競爭。
監管趨向從嚴，馬雲的講話至多是導火綫，其根本原因還要從剛結束的五中全會說起。面對疫情之後的情急復甦和中美大國博弈長期化趨勢，高層作出了「雙循環」發展戰略的大轉向，以擴大內需作為大危機時刻的戰略選擇。互聯網企業的電商平台在其中的作用，不容小覷。
電商助力雙循環 反壟斷監管
習近平在不久前進博會上的表態，能夠看出中國未來的戰略方向--「讓中國市場成為世界的市場、共享的市場、大家的市場，為國際社會注入更多正能量。」中國要擴大內需，不僅是未來經濟內循環的核心支撑，也要成為世界買主以讓全球經濟循環無法與中國脫鈎，拿下更大話語權。電商平台，一邊連接消費市場，另一邊也連接其產業和投資，實現雙循環的供需匹配，為科技巨獸套上「鎖鏈」，是監管層認為有益於互聯網產業可持續發展的必要措施。
科技行業的馬太效應與創新驅動的反監管天性，決定這將是一場長期博弈，這則「反壟斷指南」，也許只是一個開始。
資料來源：香港經濟日報 (2020年11月12日)
4、銀保監加碼挺大灣區 攻高科產業 長三角拓科創走廊 9城市簽產業鏈項目
內地區域經濟着力發展高科技，形成新競爭。銀保監會昨稱，將引導金融機構加大金融支持粵港澳大灣區內，包括新型顯示、新一代通信技術、5G和移動互聯網、生物醫藥等先進製造業和戰略性新興產業。
同時，長三角科創走廊以一體化高質發展促進雙循環政策發布會，昨則在上海進博會上舉行，其中騰訊、恒大新能源汽車、中國商飛等國內領先科企，昨與長三角9個城市簽訂合作協議。
民主黨拜登（Joe Biden）當選美國總統，外界預期美國在關鍵核心科技領域上，不會放鬆對中國的打壓，加上五中全會強調要把科技自立自強作為戰略支撑，內地區域經濟均着力發展高科技，形成新競爭。
銀保監會副主席黃洪昨在第三屆粵港澳大灣區金融發展論壇上表示，為鞏固和提升大灣區創新領先優勢，銀保監會將引導金融機構加大對大灣區內包括新型顯示、新一代通信技術、5G和移動互聯網、生物醫藥等先進製造業和新興產業的金融支持。
引導金融機構 支持大灣區5G等
此外，銀保監會亦會在大灣區內支持銀行開展知識產權質押融資，鼓勵保險機構創新發展科技保險，支持保險資金投資面向科技企業的創業投資基金，不斷拓寬戰略性新興產業的融資渠道。
不過，黃洪也表明，大灣區要處理好金融發展與金融安全的關係，牢牢守住不發生系統性金融風險的底綫。銀保監會將加強與港澳金融監管部門交流，探索建立與大灣區建設發展相適應的跨境風險監管模式，研究建立跨境金融創新的監管「沙盒」，搭建智慧監管平台。
而「長三角G60科創走廊以一體化高質量發展促進國內國際雙循環政策」發布會，昨就在上海進博會中舉行。長三角G60科創走廊內的9個城市，在會上簽署了跨區域產業鏈合作項目，而騰訊、恒大新能源汽車、中國商飛等國內領先科企，昨也分別與上述城市簽訂合作協議。
G60科創走廊包括上海、嘉興、杭州、金華、蘇州、湖州、宣城、蕪湖、合肥9個城市。其目標是建成長三角具獨特品牌優勢的協同融合發展平台，扮演區內更高質量一體化引擎的角色，成為區內「中國製造」邁向「中國創造」的主陣地。
此外，會上也發布了一系列政策扶持長三角科技發展，以鼓勵上述9個城市內的創新聯合體發揮帶動作用，最大化轉移轉化科技創新成果，並通過產業鏈整合、建立聯盟、關鍵技術掌控、股權併購等，強化區內頭部企業的引領作用。
資料來源：香港經濟日報 (2020年11月9日)
5、中國進博會 美參展商品最多
中國第三屆國際進口博覽會（進博會）正在上海舉行，中國國際進口博覽局副局長孔福安昨表示，截至昨日進博會已達861項合作意向。央視報道，此次會上共展出1,373件來自美國展商的商品，為列全球第一。
暫達成861項合作意向
孔福安表示，截至昨日，進博會綫上綫下合計共有來自64個國家的674家展商、1,351家採購商參會，達成合作意向861項。舉辦了10場投資推介會，截至前日，為各地方交易團、央企交易團、國家衞健委交易團提供76個檔期的簽約服務。
此外，數百項新產品、新技術、新服務在本屆進博會進行全球首發、亞洲首秀、中國首展，其中全球首發數量佔比達一半以上。從參展企業來看，日本參展企業最多，美國參展面積最大，全球各國企業積極參展。
央視則報道，雖然中美貿易戰已持續兩年多，但美企「參展熱情十分高漲，一些著名企業在參展同時，還將中國區總部落戶上海，體現出中美不可分割的經貿關係」。
報道稱，此次美國共有197家展商參會，展出商品1,373件，展商數排名位列第三，而展出商品數位列第一，「表明進博會對美企具強大吸引力，貿易保護主義行徑不符合中美人民根本利益，全球化大勢不可逆轉」。
報道以首次參加進博會的美國泰森食品集團為例，該集團在進博會上與南虹橋管委辦簽訂戰略合作框架協議，成首家在虹橋商務區核心區落地的世界500強地區總部。
資料來源：香港經濟日報 (2020年11月9日)
6、本地時裝亮相巴黎時裝周 虛實展示 香港創意力量
【明報專訊】「巴黎」與「時尚」，就像一個無形的等號。尤其每年巴黎時裝周，各方重量級的買手和傳媒匯聚，時裝設計師即使窮一生心力，都要達成在巴黎出show的心願。縱然面臨疫症打擊，早前8個香港時裝品牌仍排除萬難，在Fashion Farm Foundation（FFF）的帶領下成功於巴黎時裝周亮相，結合虛擬與實體的方式展出2021春夏時裝系列，向世界展示香港的創意力量。
營運一個時裝品牌，設計、質量做得好是基本，增加曝光率，讓潛在客戶看得見自己的存在才是成名關鍵，而年輕品牌要打響名聲，衝出國際，更加需要足夠的資源、金錢和人脈協助才能成事，所以香港非牟利機構FFF自2013年起，籌辦由創意香港（CreateHK）贊助的國際時裝企劃HKFG（前稱Fashion Guerilla），主力帶領本地品牌參與國際時裝周和商展，讓一眾設計師能接觸各國的時裝買手和傳媒，以助他們拓展業務。
今次參與的8個品牌為 ANAÏS JOURDEN、THE WORLD IS YOUR OYSTER、ARTO.、PabePabe、PONDER.ER、SWEETLIMEJUICE、VANN及YMDH。其中第6度在巴黎時裝周的官方日程中舉行時裝展的 ANAÏS JOURDEN，曾被知名買手店Opening Ceremony 「Year of China」企劃選出的唯一香港品牌THE WORLD IS YOUR OYSTER，以及剛剛起步一年已逐漸為人熟悉的新進品牌PONDER.ER，分別於巴黎霍夫頓酒店舉行數碼時裝小型放映會，並同步在網上展出品牌最新系列的時裝影片。
我們邀請了3個品牌的設計師，分享自己如何從零開始一路登上巴黎的時尚舞台，以及疫情對時裝周生態運作、消費模式轉變等影響的看法。
A：ANAÏS JOURDEN
W：THE WORLD IS YOUR OYSTER
P：PONDER.ER
數碼化發布 留下深刻印象
問：可分享一下如何登上巴黎時裝周？參與其中對你有什麼意義和得着？
A：畢業後成立品牌，頭兩年都是摸着石頭學習採購、生產、銷售、物流。2015年巴黎概念店Colette第一次購入我的作品，同年晉身LVMH Prize年輕設計師大選準決賽；2016年，我的系列獲得Barneys、Opening Ceremony、伊勢丹、連卡佛等百貨公司支持，銷售獲得重大突破，於是決定嘗試在巴黎舉行presentation，也開始跟造就了Vetements、Y/ Project等新生代品牌的公關公司Ritual Projects合作，直至2018年被編排於巴黎時裝周的官方日程內。當時公司包括我在內只有5個員工，即使在緊絀資源下，仍然可以帶着熱情和尊嚴展出創作，於我而言就是「終極夢想」。
W：我們首個系列在Joyce Boutique的pop-up shop售賣，然後在連卡佛的The Next New 企劃中勝出，在本地站穩陣腳後，第3季開始就一直有參與巴黎時裝周的showroom，跟不同國家的買手見面，開拓海外市場，也認識了很多買手、媒體和業內人士，幫助擴展品牌發展。
P：今年1月曾在British Fashion Council的支持下，於巴黎時裝周的showroom展出首個commercial collection。我們一直都知道HKFG這個項目，今次剛好時間上能配合便參與，這對新進品牌來說是很好的宣傳平台。
問：有別於傳統實體fashion show，你對數碼化的新品發布模式有何看法？
A：傳統天橋上的現場感、音樂響起一刻的心跳加速、衣服擺動的觸感、席上的明爭暗鬥、幕後團隊「明知不可為以為之」的魄力，都是可愛的生命力，我不希望把它的重量忘記得一乾二淨。但今季我們更着重去找一個比較沒那麼繃緊的籌備過程，選擇以電影感拍攝短片，這種呈現更能牽動人的情緒，感受到的熱情也令我獲得前所未有的驕傲。
W：以digital的方式發放作品，可以令更多的人從世界各地觀看，不受地區局限，而且可以一個更有故事的概念來表達作品系列的信息，令觀眾更加了解和留下更深刻的印象。但單從網上觀看衣服當然比現場遜色，無論是布料的質感、衣服的細節、現場的氛圍等，都不能只透過屏幕上感受。
P：透過屏幕始終少了human touch，但以數碼化的演示方式，設計師可以更靈活及更經濟的方式呈現自己的作品和概念，把資源投放在社交平台的宣傳上，而且能創作有內容和能被廣傳的影片或圖像，很可能比傳統的實體presentation或catwalk更有效建立自己的brand image。這次的數碼演示，國外媒體和買手的關注亦有增加，但始終受疫情影響，各地零售平台的buying budget也有收縮，歐美日的情况尤其嚴重，更別說放膽買新進品牌了。正面點思考，能在這個時候讓買手留下印象，也不是壞事。
問：可以分享一下今季系列及時裝影片的靈感和概念嗎？
A：這季翻箱倒櫃整理，解構和重塑過去10季以來，那些溺愛或是有所遺憾的舊作，借設計思考人與家的關係、人與自己的關係、人與天的關係，每個人演繹和活出自己的伸延就是最美麗的事。我同時希望透過系列為可持續出一分力。
W：今季系列名為New Wave，象徵在新常態下重塑時尚，游走於休閒和正式服裝，流露品牌經典的中性風格，也一如既往利用有質素的意大利和日本stock fabric，目的是希望不再生產新布料。短片則講述一個新世界的來臨，當中包含人與人之間和人與時間的關係，從而帶出希望和多元的信息。
P：系列融合了西部牛仔的元素，如傳統牛仔工作服的結構被放大及液化，以柔和透視的布料加上手染效果呈現，並首次加入首飾和皮帶等產品。短片以1950、60年代西方的煙草電視及平面廣告為靈感，透過老套過時的廣告標語及圖像融合品牌獨有的中性元素，解構和諷刺廣告媒體對性別定型的形象刻劃。
增值產品 迎接市場改變
問：疫情影響下，全球消費者對時裝的需求和步調正緩緩改變。作為香港品牌，你如何看待或應對這個市場趨勢?
A：香港的溫室教育令人相信創作止於自我表達，但消費者的反應令我明白時裝是對話：可以是一問一答、是辯論、是投其所好、是駁嘴……種種富挑戰的溝通。疫情改變了人的生活和欲望，儘管心情哭笑難辨，我認為這是改變的重要機會。
W：顧客尋求更long lasting的產品，也希望更明白衣服背後的價值。如今次系列中採用了許多detachable的設計細節，使衣服可以multi-ways穿著，提高衣服本身的價值。
P：疫情絕對令經濟及零售業帶來很強大的衝擊，特別是高價位的時裝產品。但有疫情與否，luxury market都是一個過分飽和的市場，想闖出名堂的設計師很多，名設計學院畢業的學生也是每年遞增。作為香港品牌其實很需要放眼世界，要懂得把自己的產品推銷給世界各地不同市場。除要經營與別不同的identity外，現在的品牌很講究透明度，要讓觀眾明白你推銷的產品為何要這個價錢，以及背後的故事。
資料來源：明報 (2020年11月12日)
7、Do Fashion and Politics Mix? Gap’s Bipartisan Blunder Says Maybe Not
Fashion players seldom weigh in on political issues. And when they do, the risk rarely pays off.
Embattled basics brand Gap learned that lesson the hard way just days ago after an ill-advised social media missive on Wednesday morning, following a tense Election Day that left many Americans feeling uncertain and adrift.
The San Francisco-based apparel giant tweeted a photo of a hybridized red and blue hoodie featuring its signature logo, accompanied by the message, “The one thing we know, is that together, we can move forward.” Followed by corresponding red and blue heart emojis, the sugary sweet sentiment landed with a thud.
Twitter users came out en masse to ridicule Gap’s efforts to mend the nation’s ever-widening ideological gap (pun intended) with what they branded a marketing ploy. After one of the most harrowing years in U.S. history—and arguably, one of the most contentious election cycles on record—wading into the fray with a nebulous platitude seemed particularly tone deaf.
Twitter user @itsalexberg summed up the internet’s reaction with the simple tweet, “@Gap wow, thank you for solving our country’s political crisis with this sweatshirt. courageous.” Model and cookbook author Chrissy Teigen joked, “yay, we can just walk sideways depending on the city we’re in.”
Within less than two hours, Gap deleted the tweet from its feed, but its indelible imprint on the internet remained. “The intention of our social media post, that featured a red and blue hoodie, was to show the power of unity,” the company said in a statement obtained by the New York Times
“It was just too soon for this message,” Gap added. “We remain optimistic that our country will come together to drive positive change for all.”
Gap has also managed to wade, perhaps unknowingly, into turbulent waters with its recent partnership with presidential also-ran and cultural iconoclast Kanye West. The struggling all-American mall brand found itself need of invigoration amid multiple seasons of flagging sales and shuttered stores, and no star burns brighter than an artist who often compares himself to Jesus or Steve Jobs.
But it may have bitten off more than it could chew with the Yeezy creative director, who has railed against the normcore label as well as footwear partner Adidas in recent months for not offering him a seat on their boards.
West’s all-caps threats to leave labels high and dry have a real ability to spook shareholders, as evidenced by Gap’s six-percentage-point stock dip in July following the mogul and maverick’s inaugural campaign rally, where he told onlookers he was prepared to “walk away” unless the brand acquiesced to his demands. He doubled down on the threat with a tweet two months later.
What’s more, as a de facto Gap spokesperson with a decade-long contract with the brand, West’s words—not just as a public figure, but as a political one—carry weight. And while the artist launched his presidential bid a month after signing with the brand, his outspoken stance on myriad issues has already demonstrated the ability to polarize.
The current cultural landscape has provided nothing but rough terrain for brands to navigate, to be sure. Amazon recently released plans to double Black leaders throughout the company at the director level and above, and to do so again in 2021. Special programs for developing minority employees have been given hefty infusions of cash, while the company has also pledged to remove non-inclusive language, like the words “master” and “slave” from its software and documentation internally.
But despite its progressive internal stance, the massive marketplace has little control over the products that its shoppers prefer, or the ones that its network of third-party sellers chooses to offer. And according to new insights from Helium 10, a data firm that deals in data from Amazon sellers, President Donald Trump merch is winning out over former Vice President Joe Biden swag on the platform.
Numbers reviewed by Fox Business showed more than two million Trump-related product searches over the past 30 days, compared with about 800,000 searches for products related to his democratic challenger. Trump is besting Biden in estimated search volume, with 322,191 searches for the keyword “Trump”—a massive lead over the 40,204 searches for the keyword “Biden.”
The top three Trump-related product searches over the past month were “Trump hat,” with 126,018 searches, “Trump shirt,” with 116,191 searches, and “Trump 2020,” with 104,474 searches. Biden fans, on the other hand, gravitated toward a slightly different subset of items. “Biden Harris 2020 yard sign” generated 67,845 searches, while “Biden Harris Shirt” saw 36,444 searches and “Biden Harris Flag” inspired 30,786 searches.
But the president’s lead on Amazon hadn’t not translated to the polls, where both the popular and Electoral College vote ultimately clinched a contentious White House race for Biden.
Source: www.sourcingjournal.com (8 Nov 2020)
8、Bankruptcy Court Approves J. C. Penney Sale
Bankrupt J.C. Penney walked away from Monday’s marathon hearing with long-awaited court approval on its sale to first-lien lenders and landlords.
Witness testimony emphasized the “economic reality” of Penney’s precarious financial position if the proposed sale failed to garner the court’s green light.
“Our goal from the beginning of this process has been to ensure J.C. Penney will continue to serve customers for decades to come and this court approval accomplishes that objective,” Penney’s CEO Jill Soltau said Monday after the court granted its sale approval. “With the 2020 holiday season in full swing, we are excited to operate under the new ownership of Brookfield and Simon outside of Chapter 11 and under the J.C. Penney banner.
“We appreciate the efforts of the court and the support of our creditors in this process and putting us in a strong position to build on J.C. Penney’s long track record of taking care of our associates, customers, vendor partners and communities,” she added.
Under the sale terms, ownership of 160 stores and six distribution centers will go to the majority-group lenders via two separate real estate investment trusts, and the operating company, known at OpCo, will be sold to Simon Property Group and Brookfield Asset Management.
The master lease agreement between the OpCo and PropCo owners is expected to be finalized in the coming days while many expect the sale to close later this month. A confirmation hearing on the reorganization plan is set for Nov. 24.
Penney’s bankruptcy saga
Much of Monday’s court testimony debated possible alternatives to a Penney’s sale, like the ad-hoc equity committee’s proposed reorganization that would have vacated debtor-in-possession financing. A reorg, though unorthodox, would have returned some of the equity shareholders’ investment, though the proposal was untenable from the start and simply allowed the bankruptcy process to leave no stone unturned.
By contrast, Judge David Jones branded the OpCo-PropCo proposal as a viable plan with approval from both sides that would preserve Penney’s 60,000 vulnerable jobs—and marked the best financial offer benefiting landlords and vendors with a vested interest in keeping the mass merchant as a going concern.
Addressing the ad-hoc plan, Judge Jones said it “would take a lot” to vacate the DIP order and there was little reason to opt for such a “drastic measure.” And while he empathized with equity shareholders and their losses, the value in their investments was “already gone” a long time ago.
Court testimony painted a stark picture of Penney’s finances. Its DIP financing is set to expire Monday without an extension, and even that funding hasn’t given Penney’s sufficient bandwidth to flow inventory into stores.
Penney’s bankruptcy counsel Jonathan Sussberg of Kirkland & Ellis told the court that after 178 days in bankruptcy, “Our singular focus and goal was making sure J.C. Penney survived…as a going concern.”
Sussberg also said settlements are in place with the minority group of lenders and the Committee of Unsecured Creditors, with the Ad Hoc Committee of Equity Holders dispute the sole exception.
“This company has outstanding claims of more than $7 billion [and] unless all are satisfied in full or in cash [or other treatment], there’s no economic reality for equity,” Sussberg said.
Given Penney’s calamitous cash position, the sale must proceed as “time is of the essence for these debtors to move forward on an expedited basis,” he said. “We do not have enough unencumbered cash to repay the DIP. We do not have it unless the [asset-based loan] is paid down in full.
“Our vendors are hanging on by a string,” Sussberg said. “Unless an order is entered, in short order, we will not return to normalcy.”
Many of Penney’s vendors have either short-shipped, deferred shipments, or suspended orders, Sussberg said.
“Absent approval of a sale, I fear this company will move to a liquidation,” he added.
Penney’s finances
How dire is it?
While the DIP provides for cash on delivery, roughly “70 percent” of vendors “have us on cash in advance. We have to prepay for those willing to ship goods,” James Mesterharm, managing director and head of the restructuring group at Penney’s financial advisor AlixPartners, said in court testimony Monday.
If a deal doesn’t close by Nov. 20, then the buyers have the right to walk away when the DIP facility expires next week, Mesterharm said. “Those factors are working against us the longer the company stays in bankruptcy,” he added.
Mesterharm told the court that many private-label suppliers do not plan to ship for 2021 under current conditions, and though Penney’s had nearly $700 million in factoring support in 2019, “Right now, we have zero.”
Chapter 11, he added, “is not a healthy place for companies to stay,” noting the expenses related to the court process. Plus, vendors demanding cash on delivery or in advance drains liquidity, and Penney’s asset-based loan formula hinders its ability to pay for needed goods.
“It’s not a healthy sign for a retailer that we are unable to get inventory,” Mesterharm said, noting that Penney’s hasn’t been able to tap into some of its DIP financing.
If the court failed to approve the OpCo-PropCo deal, then Penney’s has “no wherewithal to pay that DIP,” David S. Kurtz, head of the global restructuring practice at investment banking firm and Penney’s banker Lazard Frères & Co., testified Monday. In such an instance, lenders would likely push to liquidate.
“I just don’t know how we will be able to pull this together,” he said, describing the bankruptcy case as a “melting ice cube.”
What happened in the sale process
Kurtz said Simon and Brookfield plan to “make a lot of money” and return Penney’s to profitability. He debunked the idea that majority lender group member H/2 had controlled the sale strategy, noting that “they wanted us to try” to find a buyer for Penney’s real estate assets and would have been willing to walk away if no suitor materialized.
Lazard had spoken with private-equity firm Sycamore Partners, which wasn’t “willing to put any skin into the game” and instead was looking to be hired to run the business, Kurtz said. Richard Baker’s Hudson’s Bay had been in dialogue with the company throughout August, but also seemed more interested in running the business than acquiring it. In the end, only Simon and Brookfield were willing to put $300 million in equity into a deal.
Chief financial officer Bill Wafford stressed the importance of finalizing “the sale of the company now instead of at the confirmation hearing,” which would offer vendors, employees and landlords a measure of certainty just weeks before Black Friday.
The OpCo sale represents the “highest and best bid” for Penney’s, Wafford added. “We presented the company to over 100 potential acquirers and this was the highest and best offer that arose out of that.”
Source: www.sourcingjournal.com (10 Nov 2020)
9、Simon CEO: JCP Ownership ‘Will Be a Win-Win For Everybody’
Simon Property Group is still trying to battle back from the nationwide closures of its properties during the Covid-19 pandemic, with third-quarter revenues falling 25 percent to $1.06 billion and total funds from operations reaching $2.05 a share, well below the $2.28 per share expected by Wall Street analysts polled by FactSet.
Regardless of the mall REIT’s quarterly results, all eyes have been on Simon’s finally approved acquisition of bankrupt J.C. Penney. In an earnings call on Monday, CEO David Simon pulled back the curtain on the real estate investment trust’s new co-ownership of the bankrupt department store, and what this may mean for the merchandising mix at its nearly 600 remaining stores.
In a Nutshell: Simon confirmed that Authentic Brands Group, which partners with Simon Property Group under the venture Sparc and was previously reported as a possible bidder for J.C. Penney, will be joining the shopping center operator alongside Brookfield Property Partners in their joint acquisition of the retailer.
ABG will invest at the same price as Simon and Brookfield, but will not be an equal partner, according to Simon. Simon is currently looking at ABG’s collection of brands to determine which brands could be introduced in J.C. Penney stores.
“We’re going through the vendor matrix now,” Simon said during the call. “Eventually, I think Penney will end up distributing those kinds of brands that Authentic Brands Group controls, in the J.C. Penney department store. So it will be a win-win for everybody.”
As an example, Simon named Juicy Couture—a women’s apparel brand that is controlled by ABG but one which J.C. Penney does not currently sell—as a label with “store potential,” but did not confirm which brands would ultimately feature on the retailer’s racks and shelves.
“We do think that with the combination of our relationships with the direct-to-consumer crowd as well as all the brands that either we control or that ABG does, those products will find a home in Penney,” Simon said.
Simon and ABG already teamed up to acquire Brooks Brothers and denim retailer Lucky Brand Dungarees in August. Previously, the Sparc venture bought two teen retail chains out of bankruptcy: Forever 21 in February and Aeropostale in 2016.
All of Simon’s U.S. retail properties are currently open expect for its Cielo Vista mall in El Paso, Texas, which was forced to close again amid rising local Covid-19 cases. As of Nov. 6, Simon has collected 72 percent of its net billed rents from its U.S. retail portfolio for the second quarter, and has realized higher net billed rent collections for the third quarter, with a collection rate of 85 percent.
Simon also said that shopper traffic and total sales volume with the company’s properties continue to improve with each sequential month, with third quarter sales at its shopping centers dropping 10 percent compared to the third quarter of 2019.
Occupancy was 91.4 percent as of Sept. 30, down from 92.9 percent as of June 30 and down from 94.7 at this point last year. Simon said the future of the occupancy rate would depend largely on potential retail bankruptcies in the coming months.
Base minimum rent per square foot was $56.13, an increase of 2.9 percent year over year.
As of Sept. 30, Simon had more than $9.7 billion of liquidity consisting of $1.5 billion of cash on hand, including its share of joint venture cash, and $8.2 billion of available capacity under its revolving credit facilities and term loan.
Simon’s liquidity has put it in much better than many other shopping center operators that were ravaged by the store closures of the pandemic. Earlier this month, Pennsylvania Real Estate Investment Trust and CBL Properties became the first and second mall operators, respectively, to restructure operations under voluntary Chapter 11 bankruptcy filings. REIT rival Macerich, meanwhile, is seeing signs of recovery.
Net Sales: Net revenues for the third quarter reached $1.06 billion, down 25 percent from last year’s total of $1.42 billion and also missing the $1.16 billion consensus expected by Wall Street analysts.
Net Earnings: Net income for the quarter was $145.9 million, or 48 cents per diluted share, a significant dip compared to $544.3 million, or $1.77 per diluted share in 2019. The current year period includes a non-cash impairment charge of $91.3 million, or 26 cents per diluted share, related to the company’s interests in four unconsolidated joint ventures.
Simon revealed that its portfolio net operating income for the period declined 22.4 percent to —attributed in part to reduced revenues from agreed-upon rent abatements with some of its retail tenants and lower sales-based rents, which were partially offset by cost-reduction initiatives.
The company did not amortize any rent abatements; instead, abatements were expensed in the period granted.
Funds From Operations (FFO), which describe the cash flow of a real estate investment trust, totaled $723.2 million, or $2.05 per diluted share, as compared to $1.08 billion, or $3.05 per diluted share, in the prior year period. FFO is a commonly used metric for REITs, often taking net income and adds back items such as depreciation and amortization.
FFO in the current year period was negatively impacted by $1.10 per share due to reduced revenues caused by the impact of the Covid-19 pandemic, partially offset by approximately 23 cents per diluted share from cost reduction initiatives.
CEO’s Take: In reaction to the Cielo Vista closure, the CEO expressed disappointment over what he says is the inconsistent treatment of enclosed malls.
“Obviously, the level of inconsistency has been very frustrating. It’s been state by state, city by city, county by county,” Simon said. “It is a testament and often overlooked that we’ve been able to deal with this as well as we have…But we can only deal with what we can deal with. I don’t know if further restrictions will be in order. We have yet to see any evidence that our environment spreads anything.”
Source: www.sourcingjournal.com (10 Nov 2020)
10、Alibaba moves deeper into offline with Chinese smart apparel factory
Robots whirr around, shifting fabrics and clothing, on the evening before Singles’ Day at the Hangzhou site for Xunxi, Alibaba’s first wholly-owned smart factory.
The site is one of three plants Alibaba has launched under its manufacturing division, which marks the company’s latest foray into the offline world as it seeks to diversify from e-commerce.
Speaking at a media briefing during Alibaba’s annual shopping festival, CEO Alain Wu said Alibaba established Xunxi to help China’s small merchants respond to consumer demand more quickly.
The division will expand, not by opening more factories but by getting more companies to use its services and by finding out which parts of its technology can be scaled up, Alain Wu, Xunxi’s CEO, said.
Together with Taobao, one of Alibaba’s main e-commerce sites, Xunwi will serve the “long tail” of the apparel industry - which is made up of brands that blossom online but lack access to advanced manufacturing services, Wu said.
“A lot of these small-and-medium-sized brands, their advantage is that they can adapt to changes in the market and meet consumer demand, but their disadvantage is in manufacturing because their technology and skills are limited,” he said.
As part of its diversification, Alibaba also runs a supermarket chain called Freshippo, launched in January 2016, which has grown to operate more than 100 store fronts.
In addition, it runs a programme to help small convenience stores with product-sourcing and data analytics services and has opened a mall and a hotel in Hangzhou, both of which serve as pilot projects to test its new retail technology.
Source: www.reuters.com (10 Nov 2020)
11、EU-US Trade War Heats Up With $4B Tariffs on American-Made Goods
The European Union is making good on threats to increase tariffs on U.S. exports to the region with new duties going into effect on Tuesday.
According to a statement from aircraft manufacturer Boeing, which has been at the center of the increasing trade tension between the allies, countermeasures against the U.S. have been agreed upon by EU member states, and are set to move forward immediately.
In 2019, Washington imposed duties worth $7.5 billion on EU products as the result of a World Trade Organization arbitration decision that ruled in favor of the U.S. and American aircraft manufacturer Boeing. At the time, the WTO confirmed U.S. lawmakers’ charges that European multinational aerospace corporation Airbus, a direct competitor, benefitted unfairly from subsidies, negatively impacting Boeing’s business. Legislators moved swiftly to impose tariffs on EU goods that would pay down the damages.
In September, though, the WTO granted the EU and Airbus license to hit back, giving the green light to impose tariffs on U.S.-made goods worth $4 billion. On Oct. 26, the intergovernmental trade organization formally authorized the implementation of countermeasures against subsidies that have benefitted Boeing.
“We have made clear all along that we want to settle this long-running issue,” Valdis Dombrovskis, European commissioner for trade and executive vice president for Economy that Works for People said in a statement. “Regrettably, due to lack of progress with the U.S., we had no other choice but to impose these countermeasures.”
According to Dombrovskis, the EU is exercising its legal rights under the WTO’s decision, but is calling upon the U.S. to agree to both sides abandoning their respective countermeasures immediately.
“Removing these tariffs is a win-win for both sides, especially with the pandemic wreaking havoc on our economies,” he said. “We now have an opportunity to reboot our transatlantic cooperation and work together towards our shared goals.”
Dombrovskis said that the proposed countermeasures from the EU bring it to “equal footing” with the U.S., with sizable tariffs on each side related to the aircraft subsidies. Those duties include additional 15 percent tariffs on aircrafts as well as 25 percent tariffs on a range of agricultural and industrial products imported from the U.S.
In 2019, the U.S. imposed punitive duties on a number of EU imports including handbags over $20, wool sweaters and vests, cashmere, cotton, men’s and boys’ suiting, and women’s and girls’ cotton pajamas. But in August, the Trump administration appeared to take a placatory stance, removing Greek and German cheeses and Scottish shortbread products from the list, likely because the U.S. was working toward a bilateral trade agreement with the U.K.
However, French and German jams were added to the list, sending a thinly veiled message to the leaders of both countries to heed America’s trade demands. The Trump administration implemented new 25 percent duties on $1.3 billion in goods from France in July, including luxury handbags, as a response to the country’s Digital Services Tax.
Notably, in September, William Reinsch, a former senior U.S. Commerce Department official and trade expert at the Council on Strategic and International Studies, said that the WTO’s decision on the EU’s behalf would “set the stage for negotiation.”
“Everybody’s been waiting for this,” he said at the time.
Source: www.sourcingjournal.com (9 Nov 2020)
12、3 Top Considerations to Build an Apparel Supply Chain ‘Fit For Purpose’
Covid-19’s constant disruptions to global apparel supply chain have forced businesses on their heels to adapt to new processes, communication tools and technologies at a rapid clip, but how adaptive have they truly been?
According to Gartner research, 80 percent of companies still base their strategic planning cycles on an annual calendar. With the fashion calendar already considered outdated, hewing to such a rigid structure was undoubtedly ripe for external disruption, particularly as the habits and consumption patterns of social-distancing shoppers have evolved.
During the opening keynote of the Gartner Supply Chain Symposium/Xpo, Tom Enright, vice president analyst with the Gartner Supply Chain practice, said companies building a truly adaptive strategy must continuously monitor and identify trends.
“Supply chain leaders should make it a regular exercise to learn about, and evaluate, the current trend landscape. They must focus on those trends that will impact their business and present opportunities to grow and gain an advantage over competitors,” Enright said. “It’s crucial to regularly update the strategy to reflect changes. Adaptive strategic planning is an always-on activity to navigate and succeed through any turn, in any version of the future.”
Later in the virtual event, Gartner analysts said that organizations that outline their function’s “fit for purpose” and choose a corresponding organization design will improve their results and be better aligned to the overall business.
The term “fit for purpose,” as defined by Gartner, describes an approach where planning leaders focus on what they should be doing, instead of benchmarking what others are doing, but may not necessarily work for them. Essentially, while everyone is largely aware that a “one size fits all” strategy doesn’t work, they can’t just blindly look to other businesses to take inspiration for what may make sense to them.
To design a fit-for-purpose planning organization, supply chain leaders must consider three factors, according to Gartner: their companies’ business and operating model, their operational mindset and whether a decentralized, center-led or centralized model is the best fit.
Understanding the operating model is fairly simple, and stems from knowing factors such as customer base, products sold and serviced markets, all while determining the extent to which those factors are changing.
Flexibility drives successful go-forward operational mindsets
The second factor is a little more in-depth, in that it considers what is important to the company’s operations and decision-making going forward. For example, mindsets related to cost-focus, customer experience, innovation, agility, resilience and risk have a significant impact on how planning leaders organize.
In this case, adaptive investments to carry out future decisions are often difficult. According to Gartner research, 72 percent of supply chain strategists say slow budget reallocation is the biggest barrier to a more adaptive plan.
The research and advisory firm says that one step towards achieving an adaptive investment approach is through capability funding, in which supply chain leaders can allocate blocks of funds to several initiatives. This allows them to remain flexible in directing additional funds to initiatives when priorities change.
During the keynote, Lisa Callinan, vice president team manager with the Gartner Supply Chain practice, posed a second option.
“Mimic the approach that venture capital firms use when assessing whether to fund early-stage startups,” said Callinan. “Success with a prototype or trial is the basis for developing more accurate estimates on how much further funding is needed. Teams feel less constricted and feel less pressure to present a solution that guarantees returns from the start.”
Decentralized, center-led or centralized?
After understanding both the operating model and the mindset required to discover the right purpose, supply chain planning leaders can then evaluate if a decentralized, center-led or centralized model is the best design for their function.
In a decentralized model, all planning roles report into the separate business unit leaders. This approach makes sense for large portfolio companies with mostly independent business units, such as retailers with various brands under one roof. As more apparel retailers look to manufacture garments locally and even turn to an on-demand production model, decentralized supply chains may be more of a fit in that realm.
The center-led model leaves planning operations within the business units but creates roles at a global level that focus on planning processes and long-term planning. Finally, in the centralized model, all elements of supply chain planning report into an integrated planning leader who is running all aspects of planning across the different regions.
The latter is becoming more popular in an era when transparency and traceability are now bigger factors in the apparel buying process for the end consumer.
Lux Research: Sensors are still underused
What would adapting the supply chain to modern times be without implementing new technologies designed to improve enhance transparency and connectivity?
One recent report from technology research and advisory firm Lux Research indicates that the answer to the disruptions in the retail and manufacturing supply chain comes in the form of IoT sensors that can alert companies to problems and help them address these issues, sometimes even before they become a problem. These issues usually arise at one of four critical areas of the supply chain, including point of origin, warehousing, transit and destination.
“Things that go wrong in the logistics process include pilfering, asset misplacement, and physical damage due to improper storage conditions and unexpected events,” said Lisheng Gao, Ph.D., analyst at Lux Research and lead author of the report. “It’s now more important than ever to ensure the right goods are transported in the right quantities, under the right conditions, and delivered to the right place at the right time. Only then will it be possible for society to remain functional and ensure that abundant resources are available to fight the pandemic.”
Gao highlighted the sensors’ ability to enhance data visibility and transparency across the entire process and facilitate planning, optimizing, and uncovering other invisible insights. All without needing a network connection, these sensors can be used to monitor environmental conditions, prevent misplacement, identify damages, avoid accidents, ensure compliance, track location and reveal real-time conditions.
Source: www.sourcingjournal.com (9 Nov 2020)