Neiman Marcus may be giving up on its China-focused partnership with Glamour Sales Holding Ltd., but the Hong Kong company sees a future in its offerings where the Dallas-based luxury retailer apparently didn’t.
Glamour Sales, which holds so-called flash sales that give consumers a short window buy discounted products, will focus on expanding in Chinese cities and zeroing in on mobile phones as a way to pursue growth, said Olivier Chouvet, the company’s co-founder and chief executive.
With 3.6 million members in Japan and China, Glamour Sales aims to extend its flash sales to 2,000 Chinese cities, up from its current 1,100, by 2017, and aims to reach $500 million in sales for its operations in both countries by 2017, said Thibault Villet, Glamour’s other founding partner.
With new stakeholders Hong Kong investment firm Chow Tai Fook Enterprises Ltd. and London asset-management firm Investec Bank PLC investing $65 million for a stake in the company, Glamour Sales also expects to bring more offline business online and add more brand partners to its current stable of 3,200, said Mr. Chouvet.
Mr. Chouvet didn’t disclose the size of the stake for Chow Tai Fook and Investec.
Chow Tai Fook Enterprises is the controlling shareholder of property, infrastructure and transportation New World Development Co., which runs luxury shopping malls and announced plans to open 19 such malls across China in the next five years.
Read more at The Wall Street Journal.