Huawei is going to sell cosmetics

Recently, Hong Kong cosmetics retailer Bonjour Holdings announced on the Hong Kong Stock Exchange that its wholly-owned subsidiary Bonjour Technology Services Co., Ltd. had entered into a non-binding memorandum of understanding with Hong Kong Huawei International Limited on the same day.

It is reported that the cooperation between the two parties is to apply new retail technology service innovation to support the business transformation and sustainable development of Joyo Holdings, and to initiate cooperation between Joyo Holdings and Huawei in joint brand marketing. Huawei will establish smart retail stores and provide technical support for Joyo through big data analysis, electronic payment, WiFi 6 and other solutions. Joyo hopes that the number of stores in the mainland will reach 3,000 in 2 to 3 years.

It is understood that Hong Kong Huawei International Co., Ltd. is a subsidiary of Huawei and is responsible for the purchase and sales of communication products.

Regarding the cooperation with Huawei's subsidiary, Bonjour Holdings stated in the announcement that the COVID-19 pandemic has brought about changes in the sales channel structure, and the group has taken advantage of the situation to develop a new retail innovation platform, upgrading from traditional retail dominated by cosmetics to an omni-channel platform e-commerce retail model with diversified products. Bonjour Holdings further pointed out that if the cooperation goes smoothly, it will enable it to further optimize e-commerce retail and related developments and improve its profitability.

According to the annual report released by Chow Tai Fook Holdings in March, as of the end of 2020, the company's annual turnover was HK$539 million, and its full-year turnover in 2019 was HK$1.459 billion; the loss in 2020 was HK$258 million, and the loss in 2019 was HK$131 million.