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‘Macy’s has avoided having to create a Chinese site’

Isabel Cavill

Last month, Macy’s acquired a stake in Chinese luxury etailer VIPStore, allowing the US department store chain to enter China’s thriving online market without the complication of creating its own locally enabled site.

Last month, Macy’s acquired a stake in Chinese luxury etailer VIPStore, allowing the US department store chain to enter China’s thriving online market without the complication of creating its own locally enabled site.

Chinese shoppers will be able to buy Macy’s brands without the high delivery costs and waiting time of the Macy’s international site.

Already a well-known name among China’s affluent shoppers through their foreign travels, Macy’s will use the site as a testing ground for its mid-priced own brands, starting with fashion-forward INC.

It will be interesting to see how an unknown but mid-range brand fares in this market. While there is a boom in China in luxury clothing, mid-market players are cautious. Average incomes are cited by some retailers as still too low to sustain a business at this price point.

Nevertheless, mid-market clothing is surging in popularity as younger, urban Chinese shoppers start to seek quality without the high prices of luxury. Many local Chinese brands are targeting this segment, as well as GAP and C&A, which are growing their store count here.

Other international brands not willing to open bricks-and-mortar stores just yet will surely be replicating Macy’s strategy in China.

  • Isabel Cavill, Senior retail analyst at Planet Retail

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