Hong Kong - Global Brands Group Holding Ltd is in talks with Alibaba Group Holding Ltd and JD.com for a possible strategic alliance, Chief Executive Officer Bruce Rockowitz said.
The deal could involve online sales of brand-name children’s wear, among other products, through Alibaba’s Tmall and JD.com, and co-operation offline, Rockowitz said in an interview today, adding he hopes to make an announcement of a deal within this year.
“We are working with JD and Alibaba on a strategic alliance, joint venture,” he said. “It’s a relationship or joint venture together that can create a solution online, offline and mobile that none of us can do by ourselves.”
He added: “Both of them want to do something. They don’t have the content, just platforms, but they want to go to the next level.”
JD.com declined to comment on Rockowitz’s remarks, saying the company is in ongoing talks regularly with many brands. Alibaba declined to comment immediately.
Rockowitz’s comments come after Alibaba announced it will spend 28.3 billion yuan ($4.4 billion) to buy 19.99 percent of Suning Commerce Group Ltd, China’s largest listed electronics retailer. The companies will partner on logistics and online sales, aiming to make deliveries in as little as two hours.
Global Brands, which was spun off from sourcing company Li & Fung Ltd last year, rose as much as 2.4 percent in Hong Kong trading after falling as much as 3.6 percent earlier. Li & Fung surged as much as 7 percent. The city’s Hang Seng Index dropped 1.7 percent.
Beckham venture
Global Brands has more than 350 brands that it owns, designs and licenses, including characters from blockbuster movies by Walt Disney Company such as Frozen. It also set up a joint venture to develop David Beckham-branded consumer products globally.
The Hong Kong-based company aims to reach $1.5 billion sales in five years for the venture with the former British soccer player and plans to sell his products across China, the US and Europe. Further development of the deal will be announced “soon”, Rockowitz said.
The company will focus on acquisitions in Europe and new categories that it currently lacks such as denim, the executive said.
Global Brands reported on Tuesday first-half net loss narrowed to $35 million from $98 million a year earlier.
* With assistance from Angie Lau, Adrian Wong and Lulu Yilun Chen in Hong Kong
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