G.jpg (Photo : Reuters )
JD.com, China's second largest online retailer next to Alibaba, has inked a deal with prominent American brand Gap Clothing as part of its ongoing efforts to partner with the world's top brands for both prestige and profits within its homeland.
The Gap agreement has arrived just in time for Christmas, and JD can add it to a significant list of major overseas brands, after scoring partnerships with Quiksilver, Levi's and Skechers USA Inc. earlier in the year.
Although Gap continues to benefit from a pre-existent deal with JD's rival, Alibaba Group Holding Ltd., the relationship did not affect the new announcement, and a joint press release was reported by the media on Dec. 18, Thursday.
In an email message to Reuters, the chief executive of JD Mall explained that "demand for international brands in China has always been tremendous," a statement that is reaffirmed by similar business activities elsewhere in the East Asian nation.
Aside from Gap, Alibaba also sells products for Costco Wholesale Corp, Uniqlo and Burberry Group, among others, while foreign media will also become available in China, including the television programs of famous U.S. broadcaster HBO.
As Tencent Holdings' recently attained position as the Chinese distributor for Warner Music Group and Sony Music Entertainment indicates, the online realm is the most attractive option for international brands.
JD Mall CEO Shen Haoyu further explained to Reuters that the type of bottom line that is preferable becomes clear once businesses weigh up a group of brick-and-mortar stores on the one hand against an online retailer that can reach "tens of millions of consumers" on the other.
