18 Aug 2015
Two of the biggest department stores in China, Bailian Group Co and Wangfujing Department Store, have established a joint venture between each other and retail company Li & Fung Trading (China) Holding Ltd. The two department stores claim 40% ownership each, and 20% will be held by Li & Fung Holding. A unique venture in China, the three companies are taking advantage of setting up under the Shanghai Pilot Free Trade Zone.
The core reason for the joint venture is to leverage each other’s assets in global sourcing, logistics, retail power and brand management. Their main focus is to develop their private labels in men’s ware, infant/children’s products and household items.
Bailian Group’s Chairman stated “We’re aiming to win back consumers with high quality private labels and by offering them quality shopping experience and service”. With the dramatic change in consumer demand, legislations and market growth in China, clients expect cheaper, locally made products that still uphold quality. As trust from consumers in the previously dubious Chinese manufacturing market increase, the more we will see large joint ventures like these to provide Private Label brands in China and the rest of Asia.
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