E-commerce service company Baozun has acquired a 100 per cent equity interest in luxury-focused brand management expert Full Jet.
The acquisition is part of Baozun’s strategy to strengthen its position in China’s luxury e-commerce sector, as Full Jet specialises in developing go-to-market strategies for high-end brands entering the Chinese market.
“Our common goal is to help our international luxury and premium brand partners quickly capture the market opportunities in China,” said Vincent Qiu, chairman and CEO of Baozin.
“We believe that the premium and luxury business will be a strong growth driver for Baozun and predicted to generate an annual [gross transaction volume] of RMB 20 billion over the next three to five years.”
According to a report by Bain & Co., the personal luxury market in China recorded a 45-per-cent growth last year, spearheaded by robust e-commerce demand.
The appetite of Chinese consumers for luxury products will account for 46 per cent of the global market by 2025.
“This acquisition provides a gateway to many opportunities for both parties,” said 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.”