Home >

Baozun E-Commerce Acquires Gap Greater China Business Up To US $50 Million

2022/11/9 14:21:00 0

It is reported that the agreement has been signed and the benchmark consideration for this equity transaction is US $40 million. Depending on the final adjustment of the agreement, the total transaction amount is no more than US $50 million.

　　 On November 8, the official wechat of baozun e-commerce announced the acquisition of gap's Greater China business, opening a new business line of "brand management".

At the same time, several affiliated companies of baozun have also reached a series of business agreements with gap. Baozun is authorized by gap exclusively to produce, promote and sell gap products in Greater China, and has the right to design Chinese products. The relevant business agreement lasts for 20 years, with an initial period of 10 years; It can be renewed twice for 5 years each time.

Established in 2007, baozun e-commerce is an e-commerce service-oriented enterprise that provides IT solutions, store operation services, digital marketing services, customer service, logistics services, and data management services for brand and retail enterprises. On May 21, 2015, baozun e-commerce was listed on NASDAQ in the United States. On September 29, 2020, baozun e-commerce completed its secondary listing in Hong Kong. On November 1, 2022, baozun e-commerce officially became a dual major listed company on the Hong Kong Stock Exchange and NASDAQ.

As an e-commerce service provider, since December 2018, baozun has helped gap to carry out digital innovation and accelerate the layout of e-commerce, which may also pave the way for taking over the business of gap in Greater China.

According to public information, gap greater China is a wholly-owned subsidiary of gap group. Gap group focuses on women's and children's clothing, accessories and personal care products. It has six brands including gap, Old Navy, Banana Republic, and ATHLETA.

As one of the largest professional clothing companies in the United States, gap opened its first store in China in 2010, and has accumulated nearly 30 million members and a wide range of brand awareness. In 2020, the company's Old Navy withdrew from the Chinese market due to poor development.

In recent years, gap has fallen into a decline in the Chinese market. As one of the first fast fashion brands to enter the Chinese market, gap, like Zara and H & M, initially took the route of "holding high and fighting high". Opening big stores is the main strategy of gap in China's market layout.

Compared with Zara and H & M, gap has been unable to compare with Zara and H & M in terms of expansion speed and total number of stores since it has entered the Chinese market for more than ten years. Moreover, consumers have criticized its product design style and size.

Since 2022, gap is closing stores on a large scale in many cities across the country.

According to incomplete statistics, the shops were closed in Beijing, Shanghai, Guangzhou, Shenzhen, Changsha, Qingdao, Chongqing, Nanning, Nanjing, Foshan, Hangzhou, Nanchang, Kunming and Zhongshan. At that time, gap China headquarters responded that "the fashion industry is changing rapidly, especially in Greater China".

In 2021, according to a source quoted by the news agency, gap is considering potential options, including selling its business in China, to adjust its operations in China. Now the boot has been hanging in the air for a long time.