The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
HANGZHOU, China — Metro AG, Germany's largest retailer, is forming an alliance with Alibaba Group Holding Ltd. to develop e-commerce on the Chinese online retailer's website.
Metro will sell private-label products to Chinese consumers through Alibaba’s site, the companies said Tuesday in a statement. The retailers will also explore ways to cooperate in sourcing and using data.
“Alibaba Group and Metro Group will work together to help more European consumer brands establish fast-track solutions for expanding into the Chinese market,” Alibaba Chief Executive Officer Daniel Zhang said in the statement.
Metro has been expanding in Asia and said last month it’s hunting further targets after agreeing to buy Classic Fine Foods Group, a Singapore-based supplier of gourmet products, for as much as $328 million.
By Thomas Mulier; editors: Matthew Boyle, Paul Jarvis, Phil Serafino.
Mainland shoppers have flocked to local tourism hubs like Macau and Hainan over Chinese New Year and are expected to visit Asian destinations like Thailand and Singapore before returning in droves to European fashion capitals later this year.
Beijing’s Covid-19 policy shift will give the sector a boost in 2023 but a surge in infections and sluggish economic growth could dampen the recovery after an uplift from Chinese New Year.
This week, China rolled back some strict zero-Covid measures, opening a road to recovery for luxury and retail. But the journey is likely to be long and bumpy, experts warn.
Despite disappointing Singles Day sales results, harsh Zero Covid restrictions and supply chain woes, international beauty conglomerates continue to see China as a growth engine.