Alibaba to help US e-tailer launch in China
ShopRunner, in which Alibaba bought a 39pc stake last year, will offer American retailers low-risk access to mainland e-commerce market
ShopRunner, whose partners include Neiman Marcus and Nine West, will use Alibaba's domestic logistics infrastructure to launch in China later this year, ShopRunner chief strategy officer Fiona Dias said.
The move would offer a new way for US retailers to tap the world's second-largest economy, where many have stumbled in the past. It also allows Alibaba to cater to booming Chinese demand for authentic American products, in a market flooded with counterfeits.
"The history of US retailers going to China is one that's fraught with peril," Dias said. "This is a very low-cost way to do it that doesn't require them to go to China to figure it out."
In October, Alibaba paid US$202 million for a 39 per cent stake in ShopRunner, which launched four years ago and sells products from thousands of brands, like American Eagle Outfitters and Calvin Klein.
The startup, with over a million members, is still a minnow compared with Amazon or eBay, but a move into mainland China could afford a major boost to its growth. Alibaba and ShopRunner now aim to create a "joint brand" in China, Dias said.
The venture will be in addition to Alibaba's other websites, including the three marketplaces that make up more than 80 per cent of the e-commerce giant's revenue, according to the company's IPO filing on Tuesday.