Dallas-based luxury department store Neiman Marcus is reworking its China strategy.
The company quietly moved into the Chinese market last year. With their recent launch of international shipping, Neiman Marcus will now be scaling back physical operations in China and shuttering the warehouse there, reports WSJ.
According to Neiman Marcus spokeswoman Gabrielle Papp, the company will continue selling goods in China through the Chinese website neimanmarcus.com.cn, but orders placed there will be shipped from the United States.
The decision to close the Chinese warehouse had more to do with a change in Neiman’s business model than concerns over the Chinese economy, de Papp said, “We think this is a better model.”
Neiman Marcus entered China in March 2012 with the help of Glamour Sales Holdings (which still operates the store’s Chinese website). Neiman owns a stake in Glamour Sales, which it recently boosted to 44 percent from 37 percent, de Papp said.
Neiman is not quite ready to make any bold moves in China after being hit hard by the recent recession. They have only started to recover and think about global growth.
photo credit: neiman marcus