Neiman Marcus Group Inc., a Dallas-based retailer that sells high-end products at full price, is selling its 44 percent stake in Glamour Sales Holding Ltd., a Chinese fashion website that sells products at discount, the Wall Street Journal reported Tuesday.
A spokeswoman for the US company declined to disclose financial details, the newspaper said, adding that it paid US$28 million for the stake two years ago. Hong Kong-based Glamour Sales is buying back the stake, and it’s not disclosing the price either.
Neiman had hoped Glamour Sales would be able to sell its fashion items at full price. But “Chinese consumers are going online to get a good deal. If there’s no motivation on price, you can’t convert them”, Olivier Chouvet, co-founder and chief executive of Glamour Sales, was quoted as saying.
Nearly 75 percent of 10,200 internet shoppers surveyed in China said they preferred to shop online because prices were cheaper, the report said, citing a recent study from management consulting firm KPMG.
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