Glamour Sales, online luxury private sales destination in China and Japan, just announced a $65 million investment deal with Chow Tai Fook Enterprises and Investec Bank plc., according to a statement released by company officials.
The company has seen an annual growth of 92 percent over the past four years and forecast revenue of $155 million in 2014 versus its earnings if $82 million in 2013.
“This is a significant move for Glamour Sales and we are thrilled to partner with a prominent Asian family and an international financial investor,” Olivier Chouvet, co-founder of Glamour Sales, said. “Chow Tai Fook Enterprises is synonymous with luxury and success for all Chinese, and we are looking forward to dramatically growing Glamour Sales together.”
Although this may seem like a pretty good deal- at least on the company’s Asia front- one of its heavy U.S. supporters, Neiman Marcus, recently sold all of its Glamour Sales stock.
All Image Credits: Glamour Sales
In a statement recently released by Glamour Sales company executives, the company boasted numbers of an average of 18 flash sales events per day, 560 per month and 6,700 in 2014 and 3,200 brand partners with 3.6 million members between Japan and China, but Neiman Marcus seems to remain unconvinced that Glamour Sales is good fit for their Asia aspirations.
After purchasing a 44 percent stake close to three years ago for a reported $28 million, Neiman Marcus is pulling out of the company which made a name for itself selling high-end fashions at a discount, and was supposed to function as Neiman’s “entry point to the world of the high-end Chinese consumer- but ultimately Chinese consumers online are shopping for discounts and just do not pay full price”, according to a PYMNTS article.
“Chinese consumers are going online to get a good deal,” Chouvet said to the Wall Street Journal. “If there’s no motivation on price, you can’t convert them.”
Neiman Marcus had recently planned to broaden their operations in China with a warehouse and logistics operation that would allow for the quick deliver of luxury goods to online shoppers nationwide, according to PYMNTS. Neiman Marcus still plans to try and sell to the Chinese luxury customer, but will return their efforts to a U.S. base of operations. (PYMNTS, Wall Street Journal)
The post China-based Online Luxury Destination Glamour Sales Just Nabbed a $65 Million Investment, but it May Not Be a Good Thing appeared first on FashInvest.
