Weekly News Wrap: Posh ice cream, smart appliance in vogue in China; Indian economy awaits shopping season boost

Reliance is in talks to acquire Germany-based Metro’s India business.

From Reuters:

Chinese consumers are typically known for lavish spending on high-end handbags, clothes and accessories that sustain Western luxury brands.

This year, however, economic ill winds have sapped much of their urge to splurge and it's the littler luxuries in life - artisanal food and drinks as well as smart trendy appliances - that have caught their eye.

Sales of gaming gear and home devices from water-saving shower heads to smart toothbrushes to printers surged as much as four times last year's levels during JD.com's mid-year 618 shopping festival, data from the e-commerce giant showed.

The shift in consumer trends, one that has seen some segments of the population go ultra-frugal, comes amid much economic gloom.

READ MORE: Weekly News Wrap: New Shibuya awaits tourists in Japan; Naver buys US-based Poshmark $1.2b deal

From Bloomberg:

India’s economy showed signs of slowing-but-steady growth last month, with businesses holding on to optimism that domestic demand will revive as the peak shopping season approaches.

Four of the eight high-frequency indicators tracked by Bloomberg News showed activity eased in September, while two showed improvement and two held steady. Still, the needle on a dial measuring so-called animal spirits was unchanged from a month ago, as the gauge uses the three-month weighted average to smooth out volatility in the single-month readings.

The reading belies expectations of blockbuster retail sales in the run-up to ‘Diwali,’ the festival of lights, which this month will herald India’s peak shopping season. S&P Global India said weak external demand weighed on overall sales, while the World Bank separately cut India’s growth forecast for the year to March by a full percentage point to 6.5%, citing rising borrowing costs and global risks.

From Bloomberg:

Reliance Industries is in advanced discussions to acquire German firm Metro AG’s wholesale operations in India, said people familiar with the matter, as the conglomerate led by billionaire Mukesh Ambani seeks to dominate India’s retail sector.

Charoen Pokphand Group Co. is no longer actively in talks with Metro, leaving only Ambani’s Reliance to pursue the so-called cash-and-carry business, the people said, asking not to be identified as the information is private. A final decision could emerge as early as next month, one of the people said.

A deal could value the business at $1b to $1.2b including debt, a different person said. Discussions between Reliance and Metro regarding details including the valuation are ongoing and could fall apart, the people said.