Global Brands looks to Alibaba for opening into China

Global Brands Group is in talks with Alibaba Group and JD.com for a possible strategic alliance as the company plans to tap the rising online demand in China.

The deal could involve online sales of brand-name children's wear, among other products, through Alibaba's Tmall and JD.com, as well as other co-operations offline, chief executive Bruce Rockowitz said in an interview.

The executive hopes to make an announcement of a deal within this year, he said.

“We are working with JD and Alibaba on a strategic alliance, joint venture,” Rockowitz 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.”

Global Brands’ plan could help it make inroads into a market where e-commerce transactions are projected by the Chinese government to reach 18 trillion yuan ($2.8 trillion) this year.

Rockowitz's comments come after Alibaba said it will spend 28.3 billion yuan to buy 19.99 per cent of Suning Commerce Group, China's largest listed electronics retailer.

Alibaba and JD.com “want to do something. They don’t have the content, just platforms, but they want to go to the next level,” Rockowitz said.

Alibaba confirmed it’s in discussions with Global Brands for a “potential partnership in bringing authentic and premium international goods offered to Chinese consumers,” according to the company’s statement.

JD.com declined to comment on Rockowitz’s remarks, saying the company is in ongoing talks regularly with many brands.