No one is letting the opportunity to capitalize on China’s expanding e-commerce demand pass them by—Macy’s said it would use Internet behemoth Alibaba to make its entry into the Chinese market and Global Brands Group says it’s in talks with Alibaba and JD.com for a possible strategic alliance that would allow it to tap that demand too.
According to Bloomberg, the deal could include online sales of branded children’s wear through Alibaba’s Tmall platform and on JD.com, China’s second largest e-commerce company after Alibaba.
“We are working with JD and Alibaba on a strategic alliance, joint venture,” Global Brands CEO Bruce Rockowitz told Bloomberg. “It’s a relationship or joint venture together that can create a solution online, offline and mobile that none of us can do by ourselves.”
China’ government said e-commerce transactions in the country are slated to reach 18 trillion yuan ($2.81 trillion) this year alone and growth is expected to continue.
Both Alibaba and JD.com are looking to “go to the next level” Rockowitz said, adding that they have the platforms but not the content, which is what is giving rise to the flurry of partnerships.
Alibaba announced earlier this week that it would spend 28.3 billion yuan ($4.6 billion) to buy nearly 20 percent of electronics chain Suning Commerce Group, making it the company’s second largest shareholder. The company also said it would start partnering with duty-free retailers in South Korea and Thailand airports to offer a service that lets shoppers buy items in advance and then collect them at the airport stores when they travel. In May, Alibaba increased its shares in online retailer Zulily to 9.3%.
The e-commerce leader announced results Wednesday for the quarter ended June 30, and though revenue rose 28 percent to $3.27 billion, it was less than investors anticipated and the company’s stock fell more than 5 percent on the news. To shore up the share price, Alibaba said it would authorize a $4 billion share repurchase program over a two-year period to offset dilution.
Alibaba confirmed that it is in talks with Global Brands, which was spun off from sourcing company Li & Fung last year, for a “potential partnership,” but according to Bloomberg, JD.com declined to comment, noting that is regularly in talks with many brands.