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Baozun Inc., a Chinese e-commerce service firm, announced the acquisition of Full Jet Limited, a luxury-focused brand management company.
The move comes as the two brands attempt to capitalize on the growing Chinese e-commerce market. Together they aim to enable global brands across Singapore, London, Tokyo, Korea, and more to better penetrate the market.
According to a 2020 report by Bain & Co., China’s personal luxury market grew by more than 45% in 2020, spearheaded by strong e-commerce demand.
The appetite of Chinese consumers for luxury products is also projected to grow, taking 46% of the global market by 2025 according to Bain. China is on track to be almost half of the world’s luxury market.
China’s e-commerce market is represented by a much younger luxury consumer population (50% of luxury purchases in China are made by those under 30), fierce competition, and rapidly evolving e-commerce platforms. For international brands, it can be costly to build their team from scratch.
“We are very much looking forward to this partnership with Full Jet. Our common goal is to help our international luxury and premium brand partners quickly capture the market opportunities in China. With our excellent performance in e-commerce operations, deep insight into the luxury market, and strong infrastructure, coupled with Full Jet’s brand and business development expertise, we will be able to empower more international brands to succeed in the Chinese market,” said Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun.
“By leveraging our respective strengths, we are poised to unlock future growth potential in the premium and luxury sectors. We believe that the premium and luxury business will be a strong growth driver for Baozun and predicted to generate an annual GMV of RMB 20 billion over the next three to five years.”
According to a release, the acquisition aims to help global luxury brands address these China market entry challenges by offering end-to-end e-commerce capabilities, omni-channel coverage, and tech-driven solutions, as well as consulting and digital marketing services.
“We look forward to starting this new journey with Baozun. This acquisition provides a gateway to many opportunities for both parties. We have been impressed by the broad vision and great execution that Mr. Vincent Qiu and his team have shown, which has helped make Baozun an undisputed leader in China’s rapidly growing e-commerce operation and service market,” said Ms. Sandrine Zerbib, Founder and Managing Partner of Full Jet.
“As we share the same vision as Baozun, we expect this acquisition to take the international premium and luxury e-commerce industry to the next level.”
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