Baozun & FFG team up to capitalise on luxury brands in China

FFG manages Fosun’s portfolio of luxury and fashion assets, while seeking investments in global retail brands. Baozun and Fosun believe that China is one of the biggest players in the global luxury market and has potential to grow exponentially, the companies said in a press release.

As per the terms of the Strategic Business Cooperation Agreement (SBCA), 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 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, while Fosun will serve as the lead investor.

“The alliance helps to extend our value chain in the luxury segment, taking advantage of FFG’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,” said Vincent Qiu, chairman and chief executive officer of Baozun.

“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, digitalised 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,” said Joann Cheng, chairman of FFG.

Fibre2Fashion News Desk (KD)