E-commerce solution provider Baozun has agreed to acquire specialty apparel maker Gap Greater China for US$40 million.
Since it opened its first China store in 2010, Gap Greater China has grown in reach and brand awareness with nearly 30 million loyalty members. The Gap-owned subsidiary started partnering with Baozun in December 2018 to expand its e-commerce business.
As part of its strategic plan to drive sustainable growth, Baozun has established Baozun Brand Management (BBM) as a new business line that intends to leverage its dominant portfolio of technologies at the service of brands, to engage in longer and deeper relationships with brands. The substantial size and scope of Gap Greater China make this acquisition a significant step in developing BBM.
Baozun believes that the combination of its China-for-China strategy and technology and data-driven approach in product and consumer operations will empower Gap Greater China for sustainable future growth.
“This acquisition accelerates our evolution into a technology-driven, omni-channel commerce player. Technology is at the centre of our strategy, and it is our competitive advantage. With Gap’s brand equity and significant size in Greater China, BBM will start at a higher point to bridge the digital commerce/brick-and-mortar divide at scale and do what few have done in retail,” said Vincent Qiu, Chairman and Chief Executive Officer of Baozun.
“With its best-in-class omni-channel technology and deep expertise in data management and digital business, Baozun has helped drive impressive results in our online growth and penetration of the Greater China market in the past four years, and we feel confident about our partner’s future value-creating China-for-China plans for Gap Greater China,” said Mark Breitbard, President and CEO of Gap Brand.
Affiliates of Baozun and Gap have entered into a series of business arrangements through which Gap grants Baozun the right to manufacture, market, distribute, and sell Gap products in Greater China with local creation capabilities on an exclusive basis.
Photo: Nataliya Vaitkevich