Foreign retailers are attempting to open up new consumer markets in the Fast East by getting online to sell their wares, marketing site warc.com reports. Author: Chris Taylor
Foreign retailers are attempting to open up new consumer markets in the Fast East by getting online to sell their wares, marketing site warc.com reports.
U.S. department store juggernaut Macy’s is just one of several companies to have recognised e-commerce as the ideal realm in which to branch out into China’s increasingly affluent society.
Just recently it paid $15 million for a stake in VIPstore, a business which runs omei.com – a new site dedicated to the sale of luxury goods and a number of high-end fashion labels. VIPstore also operates jiapin.com, an already established flash sales site.
Terry J. Lundgren, chairman, president and chief executive officer of Macy’s, explained on businesswire.com: “Our relationship with VIPstore will allow us to gain additional experience in the fast-growing Chinese market, and to better understand how consumers across China interact with Macy’s and the products we sell.”
Besides website development, re-stocking and having decent merchant services, there are very few downsides to making an investment in a pre-existing internet company overseas.
Neiman Marcus, a similar retail department store, has also made moves in China; taking a share of online fashion retailer Glamour Sales Holding Ltd for a cool $28 million.
According to company CEO Karen Katz: “Anyone who sells luxury has to be looking at China today.”
Walmart is similarly attempting to get into the Chinese market, as it awaits regulatory approval to take a 51 per cent share in online grocery store Yihodian.