Baozun Inc., the brand e-commerce service partner that helps brands execute their e-commerce strategies in China, announced a strategic alliance with Fosun Fashion Group (Cayman) Limited, a subsidiary of Fosun International Limited, an innovation-driven consumer group, to capitalize on the emerging demand for luxury brands in China.
Leveraging the strong momentum of China’s consumer market, FFG manages Fosun’s portfolio of luxury and fashion assets, while seeking investments in global retail brands. Baozun and Fosun share a belief in the China market as one of the brightest spots in the global luxury market, with prospects for exponential growth, together with a faith in the critical importance of China e-commerce to global brands.
Under the terms of the Strategic Business Cooperation Agreement, Baozun and FFG will work together to develop best practices and achieve best results for FFG’s brands in China e-commerce, while exploring opportunities to introduce new brands to the Chinese market. Baozun will become the preferred one-stop e-commerce solutions provider for all brands in FFG’s portfolio, as well as FFG’s preferred partner in exploring new business models and solutions for brand e-commerce.
Baozun will become a minority shareholder in FFG, along with other strategic investors and seasoned industry players, by participating in FFG’s financing, in which Fosun will serve as the lead investor. The Company believes that, the SBCA and Baozun’s minority investment in FFG will create a unique opportunity for the two partners to work closely to capture this potential.
Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun commented, “We are pleased to have established a strategic alliance with Fosun Fashion Group and are excited about the opportunities ahead. Fosun Fashion Group not only brings us an extended portfolio of luxury brand partners, but also gives us deeper insight into the global luxury sector. The alliance helps to extend our value chain in the luxury segment, taking advantage of Fosun Fashion Group’s strong understanding of the brands and track record in brand building. China is on its way to becoming the main growth driver of the global luxury market. We believe our unique position in the sector will bring added value to our brand partners while at the same time contributing in a healthy and sustainable way to our top and bottom lines within the next three to five years.”
“As the global landscape of e-commerce changes, there is no doubt that it is changing faster in China than any other market,” Joann Cheng, Chairman of FFG said.
She added, “We made a strategic decision to collaborate with Baozun, with its cutting-edge expertise, to introduce our brands to this very dynamic market. We have been impressed by Baozun’s leadership in providing technology-empowered infrastructure, serving brand e-commerce in an integrated, digitalized and holistic ecosystem, as well as its omni-channel capabilities and innovation. We believe this strategic alliance is the first step in a deeper and broader long-term relationship with Baozun while continuing a successful journey with our brand partners in China’s e-commerce industry.”