Gap sells its China business after 12 years
In a move to better connect its retail brand to Chinese consumers, Gap has agreed to sell its local online business to Baozun, an eCommerce retailer in China.
The company said it will be selling its eCommerce operations in Taiwan and China for up to $50 million, according to a Tuesday (Nov. 8) press release.
Gap has operated its online platform in Greater China for over 12 years, but hopes that by selling to Baozun, the local company will help the Gap brand to expand and resonate more with its Chinese customers, the release stated.
“The growth that we are unlocking through local partnerships with market experts like Baozun is allowing us to not only connect with new and existing customers, but to provide them with personalized, service-oriented experiences,” said Gap President and CEO Mark Breitbard in the release.
Since December 2018, Baozun has been Gap Greater China’s eCommerce service partner, according to the release.
Baozun also announced in the release that it is launching Baozun Brand Management, a new business line to help manage and grow retail brands in the region, with the Gap acquisition representing a huge step forward for the brand engagement service.
In the November PYMNTS report, “Digital Economy Payments: The Rise of Mobile eCommerce,” it was found that a projected 44% of all digital sales will come from mobile devices by 2025.
The eCommerce market is on the rise, and Gap’s sale of its region-specific business to a company that can make decisions catered to that region could give the retailer an edge over its competition.
Gap has been working to reshape its retail business over the last few months, updating its logistics services in September when it debuted GPS Platform Services. The launch comes at a time when ideas about how to control logistics operations have become more crucial due to pandemic-fueled supply chain slowdowns, which have put inventories in limbo and led to lost sales.