Global Brands in Talk with JD.Com, Alibaba for Alliance
Published By : 12 Aug 2015 | Published By : QYRESEARCH
Global Brands Group Holding Ltd. is working for a possible strategic alliance with JD.com and Alibaba Group Holdings Ltd. with plans to tap the growing online market in China.
The deal may involve branded children’s wear, along with other products, which will be carried JD.com and Alibaba’s Tmall and also other online cooperation as commented in an offline interview by the CEO of the company. He also hoped to make the announcement of the deal in this year.
The CEO further commented to be in talks with JD and Alibaba for a strategic alliance. If the deal works out, it will create offline, online, and mobile solutions for the three companies which is not possible independently by any of the company.
The plans of Global Brands could help the company foray into a market wherein the Chinese government has projected the market to reach US$2.8 trillion this year. The statement from the CEO came after announcement from Alibaba with plans to spend US$4432714466.00 to acquire 19.99% of the largest online electronics retailer in China, Suning Commerce Group Ltd.
The CEO further stated that JD.com and Alibaba want to go to the next level of business, while both of the companies have platforms they lack content.
Alibaba confirmed to be in discussion with Global Brands for potential partnership for the effort to bring to bring premium and authentic goods to Chinese consumers.
However, JD.com refused to comment on the CEO’s remarks, quoting that the company is in talks with many brands regularly.
Global brands, which arose from Li & Fung Ltd. last year, increased by 3.6% to be valued at HK$1.75 at closing in the Hong Kong stock exchange, the highest rise of the company since July 30.
Li & Fung rose by 2.8%, though the Hang Seng Index of the company dropped by 2.4%.