China's Vipshop investing in Brandalley UK
Chinese private sales giant Vipshop has reportedly invested several millions of pounds in UK e-tailer BrandAlley, the former subsidiary of the eponymous French website. A minority stake that will allow for British labels to enter China through online sales.
Meanwhile, according to Drapers, Brandalley will use the investment to fuel the growth of its UK business. Indeed, it recently launched a vast advertising campaign in the UK, notably featuring tv adverts. Simultaneously, BrandAlley CEO Rob Feldmann told the British publication that its mobile business is very strong and that the goal is to make the company be mobile first.
Launched in 2009 as a joint-venture between France's Brandalley and the UK's New Corp International, separated since, the sales site is still waiting to be profitable. The 11.8 million pounds in turnover it saw for the last three quarters of 2014 conceal operating losses amounting to £3m.
The Chinese group, Vipshop, listed on New York's stock exchange, has a catalogue of more than 14,000 brand. Last year, it generated $3.8 bn (£2.5bn) in sales and shipped out 107 million orders. A few weeks ago it invested 30 million euros in the European private sales site ShowroomPrivé, earning itself a seat on the board of directors.
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