Macy’s buys into Chinese e-commerce firm VIPStore Co.
May 23, 2012 11:35 AM
Macy’s Inc. said today it will sell a selection of its private-brand merchandise to Chinese consumers through a Macy’s section on Omei.com, a new China-based online retailer of in-season luxury and fashion brands operated by VIPStore Co. Ltd.
Macy’s, No. 14 in the 2012 Internet Retailer Top 500, also made an equity investment of $15 million in VIPStore Co., a Chinese e-commerce firm. Macy’s joins other venture capital providers, including Intel Capital, in acquiring a minority stake in the company. VIPStore also operates Jiapin.com, a flash sales site offering apparel, accessories, wine and health products, among others.
“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,” says Terry J. Lundgren, chairman, president and CEO of Macy’s.
The Macy’s section on Omei.com aims to begin selling an assortment of its I.N.C. women’s and men’s fashions in spring 2013, with other private brands slated to roll out in the following seasons, Macy’s says. Visitors to the Macy’s section eventually will be able to link to the full merchandise assortment available to Chinese customers on Macys.com. Omei.com orders will be filled locally through that company’s facilities in China. Orders placed by Chinese customers on Macys.com will continue to be fulfilled through the U.S.
“This is an opportunity for us to share learnings with a world-class retailer and continue to deliver a first-class customer experience to the members of Omei.com and Jiapin.com, which serve 2.5 million members and continue to grow,” says Allen Yang, CEO of VIPStore.
Macys.com has been selling online in China and more than 100 other nations since last year through an agreement with FiftyOne Global Ecommerce, an international e-commerce provider.
International markets will be addressed at the Internet Retailer 2012 Conference & Exhibition next month by special guest speaker Fareed Zakaria in a presentation titled “How e-commerce is poised to lead the global economy.”