Macy’s coming to China via Alibaba
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One of America’s most iconic fashion retailers is coming to China.
A new joint venture agreement between Macy’s Inc. and Hong Kong-based Fung Retailing Limited was signed on Tuesday in Hangzhou to form Macy’s China Limited.
The new company will launch an exclusive online flagship store on Alibaba’s Tmall Global in late 2015., providing authentic, high-quality Macy’s merchandise to shoppers in China. It will be the first US department store to join Alibaba’s Tmall Global.
Tmall Global, on the other hand, will be the first and only third-party e-commerce platform in China providing apparel, fashion accessories and home products directly from Macy’s to consumers across China.
“Millions of Chinese tourists have come to know and love Macy’s when they travel to New York, San Francisco, Chicago and other American destinations,” said Terry J. Lundgren, chairman and chief executive officer of Macy’s Inc. “By making Macy’s accessible in China through Alibaba’s Tmall Global, we have an opportunity to deepen our relationship with international customers and to grow sales.”
Fung Retailing’s chairman, Dr. Victor K. Fung, said that with its affiliates, including LF Logistics, the company will fully support the activities of the Macy’s-Fung Retailing joint venture.
Questions & Answers
Q.What is the new company formed by the joint venture between Macy’s and Fung Retailing?
What is the new company formed by the joint venture between Macy’s and Fung Retailing?
The new company formed is Macy's China Limited. This entity will operate an exclusive online flagship store on Alibaba’s Tmall Global platform, launching in late 2015 to serve Chinese shoppers.
Q.Which specific product categories will Macy's offer directly to Chinese consumers via Tmall Global?
Which specific product categories will Macy's offer directly to Chinese consumers via Tmall Global?
Macy's will offer apparel, fashion accessories, and home products directly to consumers across China through Tmall Global. This marks the first time a US department store has joined Alibaba's platform.
Q.What role will Fung Retailing play in supporting the new joint venture with Macy's?
What role will Fung Retailing play in supporting the new joint venture with Macy's?
Fung Retailing, through its affiliates like LF Logistics, will fully support the activities of the Macy's-Fung Retailing joint venture. This backing aims to facilitate Macy's entry into the Chinese market.
Q.Why does Macy's CEO believe this partnership with Alibaba is a good opportunity for the company?
Why does Macy's CEO believe this partnership with Alibaba is a good opportunity for the company?
Macy's CEO believes making Macy's accessible in China through Alibaba's Tmall Global deepens relationships with international customers. He also sees it as an opportunity to grow sales, capitalising on Chinese tourists' existing familiarity with the brand.
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