Macy’s will sell an assortment of its private brand merchandise directly to consumers in China through a Macy’s section on omei.com, a newly established China-based online retailer of in-season luxury and fashion brands operated by VIPStore.
Macy’s has made an equity investment of US$15 million in VIPStore, a Chinese e-commerce firm and parent company of omei.com, together with other venture capital providers including Intel Capital.
“Our relationship with VIPStore will allow us to gain additional experience in the fast-growing Chinese market, and to better understand how consumers across China interact with Macy’s and the products we sell,” said Terry Lundgren, chairman, president and CEO of Macy’s.
“We continue to believe there is significant long-term opportunity internationally for both Macy’s and Bloomingdale’s. But we need to be certain that our future decisions in this regard are based on fact and experience. Omei.com is an online retailer that appeals to style- and trend-conscious consumers. We believe it is a good match for our current interests in selling to Chinese consumers and understanding the market.”
VIPStore CEO Allen Yang commented: “Macy’s is one of the world’s most respected retailers with 153 years of experience. We are delighted to enter into a relationship with them. This is an opportunity for us to share learnings with a world-class retailer and continue to deliver a first class customer experience to the members of omei.com and jiapin.com, which serve 2.5 million members and continue to grow.”
The Macy’s section on omei.com is expected to begin selling an assortment of I.N.C. women’s and men’s fashions in spring 2013. Other Macy’s private brands are planned to roll out in the following seasons.
Visitors to the Macy’s section of omei.com can link to the full merchandise assortment available to Chinese customers on macys.com. Orders placed through omei.com will be filled locally through that company’s facilities in China while orders placed by Chinese customers on macys.com will be fulfilled through the US facilities, as they are today.
Macys.com first started selling online in China and more than 100 other nations in 2011 through a collaboration with FiftyOne, an international e-commerce provider.
Macy’s, with corporate offices in Cincinnati and New York, achieved a fiscal 2011 sales of US$26.4 billion. The company operates about 840 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy’s and Bloomingdale’s, as well as the macys.com and bloomingdales.com websites.
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