US retailer Macy’s is joining forces with Hong Kong-based Fung Retailing Limited to establish an e-commerce pilot in China.
The tie-up will sell Macy's products at the end of this year through Alibaba Group’s Tmall Global, an online marketplace that connects overseas retailers to Chinese consumers.
Called ‘Macy’s China Limited,’ the Macy’s-Fung joint venture will be based in Hong Kong and will curate online merchandise for the Chinese market.
Terry J. Lundgren, chairman and chief executive of Macy’s, said: “By making Macy’s accessible in China, we have an opportunity to deepen our relationship with domestic and international customers and to grow sales. We have been closely following the development of the Chinese marketplace for many years and have learned that success requires that we have the right partners to help us navigate the unique needs and characteristics of consumers in China.”
The venture is 65 per cent owned by Macy’s and 35 per cent owned by Fung Retailing. The two are expected to invest roughly $25m in operations over the next year and a half, of which Macy’s will fund 65 per cent.