Department stores are not doing as well as they once did, and this is due to the world of e-commerce making it easier for people to simply sit in their home and buy what they want or need, and many times at a discounted price than retail stores. That is why several department stores are looking at their options for ecommerce.
Macy’s, a department stores located in the United States, has announced that they are tackling the Chinese e-commerce market. They plan on partnering with Fung Retailing Ltd, of Hong Kong. The two are partnering up to offer their goods and products to the Chinese consumer market. They will be utilizing Alibaba’s Tmall Global as their platform, while also accepting Alipay as the primary method of payment.
The chairman and chief executive officer of Macy’s Inc stated:
“By making Macy’s accessible in China, we have an opportunity to deepen our relationship with domestic and international customers and to grow sales.”
The combination of Macy’s and Fung Retailing Ltd is going to create Macy’s China Ltd of Hong Kong. The venture is expected to cost around $25 million, of which 65% will be paid for by Macy’s. However, the department store expects e-commerce revenue in China to reach around $50 million by the end of next year. They believe that this investment now into the Chinese market is going to pay off in the end.
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And more than likely this will pay off in the future. The Chinese e-commerce platforms, whether this is associated with JD.com or Alibaba, are quickly becoming the way to purchase goods and products that people are interested in. Furthermore, Macy’s is going to have a reputation as providing quality clothing and home goods to customers, something that is going to be of great internet to Chinese consumers.
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It is the hopes of Macy’s that they will have their venture in China up and running towards the end of 2015. Chinese consumers could have Macy’s as their shopping destination in a few months, which is sure to excite those who are interested in high quality products.