AGP Executive Report

Japan’s Retail Squeeze: Rising prices are pushing shoppers away from convenience stores and toward discount supermarkets; convenience-store visits fell for a 15th straight month in September. China Retail: Starbucks’ Q4 revenue fell 4% to $9.1 billion as it restructured its China business, despite a 7.2% rise in global comparable sales. Adidas, meanwhile, posted its 14th consecutive quarter of sales growth in China, with revenue up 13%. India’s Consumer Market: Quick-commerce platforms are moving beyond groceries into medicines, beauty, fashion and electronics. Godrej Consumer reported 19% revenue growth in Q2, with pricing gains helping offset cost pressures. Tourist Shopping: From November 1, Japan’s tax-free system switches to pay-now, claim-refund-later, changing how visitors shop. New Products: Mars is bringing Celebrations gift packs to India, while New Zealand beauty brand Only Good is entering the market through Kiwiyāna.

Retail Expansion: William Grant & Sons has entered Andhra Pradesh with Glenfiddich, Monkey Shoulder and other spirits, starting in major retail and hospitality channels. Brand Backlash: Sanrio apologized and scrapped its VIVANT tie-up after criticism in China over the drama’s portrayal of Chinese characters, showing how partnerships can put consumer trust at risk. Product Innovation: Canton Fair exhibitors are showcasing smart, green and customized goods, from companion robots to mobility-assist devices; new products make up a record 23.2% of exhibits. Consumer Costs: India’s Finance Ministry warned that crude prices and El Niño could keep inflation under pressure. Onion prices were up 108% year on year, adding to household cost concerns. Online Shopping: A Delhi consumer commission held Flipkart liable after a buyer received soap instead of a smartphone, rejecting the company’s intermediary defence.

Food Costs: Japan faces another wave of food price hikes as Middle East turmoil pushes up packaging and shipping costs; Indian consumers may also see sugar prices rise. India Retail: Industry leaders say FMCG growth will depend on both affordability and premium products. Quick commerce is creating new categories, but traditional shops remain key to reaching shoppers. Brand Trust: Tanishq is bringing diamond-testing equipment into UAE boutiques so customers can check stones for themselves. Asia Brands: Heineken’s third-quarter sales grew on stronger Asian volumes, while Coca-Cola India reported strong volume growth with affordability in focus. China Market: The Mbappé controversy prompted Chinese brands to cut ties, underscoring the risks for global brands of alienating local consumers. Manufacturing: India approved a ₹1,856 crore scheme to support sports-goods production, innovation and exports.

Food & Beverage: Heineken’s Asia-Pacific volumes jumped 17.3% in the third quarter, led by Vietnam, China and India; its alcohol-free beer also posted double-digit growth in 26 markets. India Retail: Hyundai expects SUVs to make up as much as 75% of domestic sales within 12–18 months, even as quarterly profit fell 24% amid higher costs. Consumer Technology: Jio Platforms surged 21% on debut after India’s record IPO, valuing the telecom and digital-services business at about US$131.5 billion; it serves more than 530 million subscribers. Manufacturing: India approved a 1,856-crore-rupee scheme to develop sports-goods production, support smaller businesses and boost exports. Food Safety: An investigation in China found chicken byproduct paste being made for dumplings and sausages at some sites with poor hygiene and missing production licences. Consumer Trends: A study of Indian university students found environmental concern and personal attitudes shaped Gen Z interest in organic food, while higher prices and social pressure complicated buying decisions.

Food Costs: Japan’s egg prices hit a record ¥312 a pack as lingering bird-flu supply constraints, holiday demand and a weak yen push up household grocery bills. Chicken and imported beef prices are also near record highs. Mobile Services: Vi has launched India’s first prepaid family plan with data sharing, letting up to four subscribers transfer 500 MB at a time while keeping their existing plans. Online Retail: Coca-Cola retained “eCommerce Brand of the Year” at the Asia eCommerce Awards for a second year, with wins spanning shopper marketing, direct-to-consumer and retailer engagement. Heritage Products: Artisans in China’s Yunnan province are turning Yi embroidery into items such as fridge magnets and hairbands, creating new sales opportunities while helping sustain the traditional craft. Consumer Tech: Apple’s iPhone 18 Pro sales rose 29% in China in their first three weeks, despite declines in the US and Japan, lifting global sales growth to 3.1%.

E-commerce Logistics: Amazon and Tata Motors will deploy 3,000 electric trucks across Amazon’s India network, starting in Delhi and expanding to major freight corridors. Retail Automation: Malaysia’s Striding AI unveiled robots for shelf restocking, inventory checks and customer assistance, aiming to automate routine store work. Brand Fallout: Three Chinese companies, including beverage maker Dongpeng and dairy giant Mengniu, have ended deals with Kylian Mbappé after comments about Mao Zedong triggered backlash. Consumer Protection: The EU has approved Temu’s plan to strengthen checks for illegal products, including reviews of listings and recommendation systems. India’s Consumer Market: Tata Consumer Products reported a 16% rise in second-quarter profit and 14% revenue growth. China Trade: Vietnamese cooperatives are showcasing agricultural products at a Tianjin trade fair to find buyers and business partners in China.

China’s Smartphone Market: Apple’s new iPhone Duo is already selling below launch prices on Chinese resale platforms, as durability complaints and softer demand cool the initial rush. India’s Tech Launches: Apple’s new OLED iPad mini starts at ₹82,900, with pre-orders opening October 28. Festive Shopping: Myntra orders nearly doubled in key categories as shoppers beyond India’s major metros powered seasonal demand. Asian Beauty: Chinese and Japanese cosmetics brands are pushing into overseas retail, challenging Korean labels for shelf space. China’s Luxury Slowdown: Weak spending continues to weigh on global fashion houses, with major groups reporting sharp declines among Chinese shoppers. Food Trade: Japanese seafood exports to Malaysia rose about 40% in the first eight months of 2026, as demand for premium products grows. Consumer Rights: An Indian consumer commission ordered Amazon to refund a Prime subscriber after ads appeared during an active membership, ruling the change an unfair trade practice.

Food & Drink: Japanese seafood exports to Malaysia rose about 40% in the first eight months of 2026, reaching ¥5 billion as demand for premium products and Japanese cuisine grew. Tata Consumer Products reported a 16% rise in quarterly profit and 14% revenue growth. Festive Retail: Myntra nearly doubled order volumes for several fashion segments during its Big Fashion Festival; new customers from non-metro markets rose 74%. Deal Flow: India’s consumer and retail sector logged 127 deals worth $1.92 billion in Q3, with strong interest in branded businesses. Shopping Tech: L Catterton invested in Glance to support the AI shopping platform’s US expansion. China Brands: Chinese beauty companies are seeking global shelf space as domestic demand remains subdued. Japan’s new airport-based tax-refund process for tourists starts November 1.

Cinema Expansion: PVR Inox plans to grow to a high-single-digit number of cinemas in Sri Lanka over three to five years, with Jaffna a likely next location and local partnerships helping drive expansion. Value Retail: Chinese shoppers are shifting from brand-only stores to membership warehouse clubs, with Walmart’s Sam’s Club gaining as consumers seek value, variety and bulk deals. India Beauty: L’Oréal is betting on quick commerce and locally tailored products to build on a turnaround in India. Halal Foods: Japan’s Sugiyo is working with Malaysian retailers to broaden its seafood range after securing halal certification, targeting growth across ASEAN. Customer Experience: Starbucks Taiwan’s new NT$15 fee to top up no-ice drinks has prompted complaints from customers who see it as losing a service they once got free. Made in India: India’s government has set October 2028 as a target for a domestically designed, manufactured and branded smartphone. Festive Marketing: MTR Foods is pairing a sweets range with an illustrated book and digital film celebrating regional expressions and the role of sweets in sharing affection.

Auto Competition: Japanese carmakers are shortening development cycles to catch Chinese rivals. Nissan plans shared platforms across models, cutting development time by up to 40% and parts variety by 70%. Halal Foods: Japan’s Sugiyo is partnering with Malaysian retailers to grow its seafood range, using new halal certification to target Malaysia and other ASEAN markets. Vietnam Spending: With consumer demand sluggish despite strong GDP growth, food producer Vissan is cutting costs and offering discounts of up to 50% to lift sales. Customer Value: Starbucks Taiwan’s new NT$15 charge to top up drinks ordered with little or no ice has prompted a backlash, with customers questioning the value of its premium prices. China Consumption: Beijing’s 2030 retail-sales target is proving difficult to reach: consumer-goods sales rose just 1.1% year on year in January–August, as household spending remains a weak spot. Festive Retail: India’s Prime Minister Narendra Modi urged shoppers to prioritise locally made goods for Diwali, saying purchases can support artisans and help take Indian products to overseas markets. Luxury Slowdown: European luxury groups have lost about €250 billion in market value this year as Chinese demand weakens and major brands miss expectations.

Food Safety: Maharashtra’s FDA suspended a Blinkit unit’s licence after alleging it held expired food products worth ₹32.71 lakh. China’s Shoppers: Nike’s China sales fell 26% as local brands gained ground, while the country’s retail sales grew just 1.1% in January–August—well short of its 2030 consumption ambitions. India’s Retail Market: Sales rose 8% in September ahead of the festive season. Smartphones: India shipments dropped 20% in the third quarter to a decade low, with budget phones hit hardest; Apple India’s FY26 revenue, by contrast, rose 32% to cross ₹1 lakh crore.

Festive Spending: India’s retail sales rose 8% in September ahead of the holiday season, though Delhi traders warn a planned rally could disrupt shopping and deliveries around Diwali. Phones: India’s smartphone shipments fell 20% in the third quarter, with high memory costs squeezing demand; Samsung led the market. Apple, meanwhile, reported a 32% rise in India revenue to more than ₹1 lakh crore in FY26. Consumer Watch: Britannia was fined ₹1 lakh over its “100% Whole Wheat Bread” claim; the regulator found the loaf contained 62% whole wheat flour and ordered the ads stopped. China’s Luxury Slowdown: Affluent shoppers are cutting back, weighing on global luxury brands including Hermès and Cartier. Starbucks is investing US$45 million in its China stores as it introduces a flexible rule asking customers to buy before sitting down. Home Energy: India’s Arkannect launched locally assembled hybrid inverters and battery storage for homes and small businesses, with sales expected to begin shortly.

China Retail: Starbucks now requires customers to buy before using seats across its China cafés, while investing nearly US$45 million to improve stores amid fierce competition. Luxury: Weak Chinese demand is weighing on Hermès, LVMH and Kering as cautious shoppers pull back. Smartphones: China’s shipments hit a 14-year low in the third quarter, while India’s fell 20% year on year as memory costs squeezed demand; Apple gained share in China. Fashion: Japanese streetwear label AAPE has opened its first Indian store in New Delhi, with plans to expand to other major cities. Online Shopping: Shein agreed to pay US$100 million to settle a US investigation into delivery delays and customer complaints. Autos: Chery says slow-moving luxury rivals leave room for its technology-focused premium brands in Australia. India Retail: Sales rose 8% in September ahead of the festive season, pointing to stronger consumer spending.

Customer Data: Japan’s Sagawa Express says names, addresses and phone numbers tied to as many as 53.23 million shipments may have been exposed in a breach; payment details and passwords were not affected. Smartphones: India’s market hit a decade low in the third quarter, with shipments down 20% as memory costs squeezed demand. Samsung took the lead, while shipments below ₹20,000 fell 47%. Beauty & Luxury: L’Oréal beat sales forecasts as shoppers continued to spend on premium beauty, while Gucci’s sales fell 5% amid weak Chinese demand. Shopping Rules: Japan will overhaul tax-free shopping for foreign visitors from November 1, shifting to airport refunds. In China, Starbucks has introduced a seating rule for customers who buy drinks, with flexible implementation. Food Standards: India’s food regulator issued notices to Nestlé, Abbott and Zydus over product claims, including infant nutrition.

Southeast Asia E-commerce: The region’s digital economy is forecast to grow 17% to US$368 billion this year, with AI-driven personalisation and shoppable video reshaping how brands reach consumers. Japan Tourism Retail: From Nov. 1, foreign visitors will pay sales tax upfront and claim refunds when leaving, a change aimed at curbing resale that could affect tourist shopping. India Retail: The NBA plans its first Indian store in 2027 and is expanding online merchandise sales through partner Suditi. Food Safety: India’s FSSAI has flagged infant-nutrition product claims at major manufacturers, putting marketing and compliance under scrutiny. Consumer Products: JAKKS Pacific reported third-quarter sales growth of 20%, with toys and consumer products up 23% year on year.

Festive Offers: OnePlus is discounting phones, tablets and audio products in India, with bank deals and no-cost EMI. Smartphone offers run through Oct. 25; tablet and audio deals end Oct. 27. Food Claims: India’s food regulator has issued notices to Nestlé, Zydus Wellness and Abbott over product claims, including infant-nutrition claims. Nestlé has responded to questions about a Lactogen Pro 1 digestion claim. China Retail: Authorities have urged major e-commerce platforms to tighten product quality and consumer protection, sending Alibaba shares sharply lower. Auto Sales: Maruti Suzuki reported a 35% rise in festive-season retail sales, with SUV sales doubling. Luxury Demand: Hermès’ third-quarter sales growth slowed to 4.3%, as ready-to-wear and accessories sales fell 2% amid weak Chinese demand.