Dive Brief:
- Global Brands Group is exploring a strategic alliance with Alibaba Group and JD.com to market its range of licensed children’s apparel and other goods.
- Based in Hong Kong, Global Brands markets more than 350 brands and owns the licensing rights to Walt Disney movies such as Frozen and a forthcoming line of David Beckham-branded products.
- E-commerce sales in China are expected to reach a total of 18 trillion yuan ($2.8 trillion) this year.
Dive Insight:
Global Brands, Alibaba, and online marketplace JD.com are discussing a venture that could help the companies unlock billions in sales in the fast-growing Chinese marketplace and beyond. Expected to feature expanded online sales of Global’s multiple lines of brand-name and licensed children’s apparel through online shopping sites Tmall and JD.com, a deal is likely to be coming soon.
Global Brands is also looking to grow sales for David Beckham-branded products, its newest license, to $1.5 billion worldwide in five years. Chinese e-commerce giant Alibaba has confirmed it is in talks with Global Brands, and is seeking partnerships and acquisitions that help bring such premium goods into Chinese shoppers. Alibaba chairman and founder Jack Ma says his goal is for the company to reach $1 trillion in annual sales by 2020.
