Alibaba Group (NYSE:BABA) has entered an exclusive agreement with Macy's China Limited—a joint venture between Macy's (NYSE:M) and Chinese retailer Fung Retailing Limited. Through the partnership, Macy's Limited will launch an online flagship store on Alibaba's Tmall, providing Macy's products to shoppers in China.
Macy's will be the first U.S. department store to join Tmall. The exclusive online flagship store will open late in 2015, bringing premium imported goods to China. Tmall will be the only third-party, e-commerce platform in China providing apparel, fashion accessories and home products directly from Macy's to Chinese shoppers. Rumors that Macy's was eyeing a deal in China began this past spring.
"Millions of Chinese tourists have come to know and love Macy's when they travel to New York, San Francisco, Chicago and other American destinations," said Terry Lundgren, chairman and CEO of Macy's. "By making Macy's accessible in China through Alibaba's Tmall Global, we have an opportunity to deepen our relationship with international customers and to grow sales."
Growing business internationally is a priority for Alibaba. The increasing number of international agreements in the past few months reflect Chairman Jack Ma's intentions to help bring brands to a growing consumer class in China. E-commerce in the Asia-Pacific market is expected to grow 25 percent this year.
"Macy's is one of the most iconic brands in the world and we are honored Macy's China Limited has chosen us as their exclusive partner to grow their business in China," said Daniel Zhang, CEO of Alibaba. "Macy's exclusive Tmall Global flagship store is a major win for consumers across China. It reinforces Tmall Global's status as the premiere solution for brands and retailers in their strategic online presence and direct engagement with customers in China."
-See this Alibaba press release
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