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.
China’s JD.Com said on Monday it would invest $800 million in on-demand delivery platform Dada Group, following which the e-commerce firm will own about 51 percent of Dada.
The investment comes at a time when JD.com is spinning off its logistics business, the in-house delivery network that gave it competitive advantage over larger rival Alibaba Group .
JD had merged its online-to-offline unit, JD Daojia, with Dada in 2016. Dada-JD Daojia, a Chinese online grocery and delivery firm, then in 2018 raised $500 million from Walmart Inc and JD.
JD.com on Monday also agreed not to sell, transfer or dispose of any shares bought in the deal for six months after the closing.
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US-listed shares of Dada jumped nearly 19 percent, while those of JD.com were up 0.5 percent in trading before the bell.
By Eva Mathews; Editors: Shailesh Kuber and Anil D’Silva
With consumers tightening their belts in China, the battle between global fast fashion brands and local high street giants has intensified.
Investors are bracing for a steep slowdown in luxury sales when luxury companies report their first quarter results, reflecting lacklustre Chinese demand.
The French beauty giant’s two latest deals are part of a wider M&A push by global players to capture a larger slice of the China market, targeting buzzy high-end brands that offer products with distinctive Chinese elements.
Post-Covid spend by US tourists in Europe has surged past 2019 levels. Chinese travellers, by contrast, have largely favoured domestic and regional destinations like Hong Kong, Singapore and Japan.