Strategic acquisition will help premium brands across Singapore and the rest of the world better penetrate China's flourishing e-commerce sector
SINGAPORE, Feb. 9, 2021 /PRNewswire/ -- Baozun Inc., China's leading e-commerce service firm, announced the acquisition of Full Jet Limited ("Full Jet"), a luxury-focused brand management company, as part of its move to strengthen its leadership in China's flourishing luxury e-commerce sector. Together, both companies will build on their strengths to better support luxury firms in scaling and capitalizing on the booming e-commerce market in China, enabling 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 a by robust e-commerce demand. Many premium and luxury brands opened online stores to capitalize on this surge. The appetite of Chinese consumers for luxury products will also continue to grow, taking 46% of the global market by 2025 according to Bain. At this rate, China is on track to be almost half of the world's luxury market.
But while the luxury market is growing fast in China, tapping into this takes significant cultural understanding. 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. International brands also find it costly to build their team from scratch.
The strategic acquisition aims to help global luxury brands address these China market entry challenges by offering greater end-to-end e-commerce capabilities, omni-channel coverage, and tech-driven solutions, as well as robust consulting and digital marketing services. From channel strategy, product selection, marketing tactics, operational and practical solutions, to multicultural understanding, consumer needs insights, source integration capabilities, and infrastructure, the combined entity will be able to empower brands to get the most out of China's booming luxury market.
"We are very much looking forward to this partnership with Full Jet," said Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun. "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. By leveraging our respective strengths, we are poised to unlock future growth potential in 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 (gross transaction volume) of RMB 20 billion over the next three to five years."
Ms. Sandrine Zerbib, Founder and Managing Partner of Full Jet, said, "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. 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."
About Baozun Inc.
Baozun Inc. is the leader and a pioneer in the brand e-commerce service industry in China. Baozun empowers a broad and diverse range of brands to grow and succeed by leveraging its end-to-end e-commerce service capabilities, omni-channel coverage and technology-driven solutions. Its integrated one-stop solutions address all core aspects of the e-commerce operations covering IT solutions, online store operations, digital marketing, customer services, and warehousing and fulfillment. For more information, please visit http://ir.baozun.com
About Full Jet Limited
Full Jet was founded by brand experts, with its founder of 27 years of experience in brand building in China. It started as a consulting agency advising fashion and sports multinationals with regards to their China development with a focus on positioning and distribution. It then developed its operational services starting with offline distribution assistance, brand management, and finally online e-commerce solutions. Leveraging its international perspective tailored for China, it has demonstrated its strengths in pitching and communicating with foreign premium and luxury brands entering China or developing their China business. For more information, please visit http://www.fulljet.com.cn/
SOURCE Full Jet