Published Date : Aug 14, 2015
Today Macy’s Inc. declared that it has entered a join business venture with Fung Retailing Ltd. which is a Hong Kong based private enterprise. This has been a major step in the Chinese retail market, which is a rapidly growing one and also is also fast paced. In this joint business venture, Fund Retailing holds a 35% share whereas, Macy’s holds a whopping 65%. Both these companies will commence an e-commerce initiative.
While Macy’s is a very popular amongst the Chinese and the Chinese-Americans, the joint business venture will aim at examining and learning buying patterns and customer preferences in China. Macy’s, under this business venture will begin selling its products in China by the end of 2015 via Alibaba Group’s Tmall Global, which is an e-commerce portal. It is also a premier marketplace which connects several Chinese customers to international branded retailers.
In order to be known as Macy’s China Ltd. and also be Hong Kong based, this joint venture of Macy’s-Fung will aim at curating an online merchandise assortment of Macy which will mostly be for Chinese customers. The key channel of payment will be Alipay, which will be for the e-commerce offerings of Macy’s in China. It has been observed that many Chinese customers are quite attracted to Macy’s and they like the shopping experience at Macy’s whenever they visit the U.S.
The presence of Macy’s in China gives an opportunity to the company to build a strong relationship with international and domestic customers and also expand gradually. According to a senior official at Macy’s, the company has been observing the characteristics of consumers in the China market. And thus, it is anticipated that the partnership between Macy’s and Fung will be vital in carrying out the test to validate such an observation.