E-commerce platform JD.com and investment firm JIC are taking a minority stake in Lagardère Travel Retail Asia.
WHO: Lagardère Travel Retail Asia spans the North Asia zone, including Mainland China, Hong Kong, and Japan. It operates in 32 airports and 28 high-speed train stations, with a network of 480 stores that trade in travel essentials, duty free and fashion, and food services.
WHY: This minority stake is part of a strategic partnership that will accelerate Lagardère Travel Retail's development in Asia, particularly through digital distribution channels. Lagardère Travel Retail Asia will draw on the digital expertise of JD.com to develop best practices in supply chain and data analytics, and provide new customer experiences and services throughout its retail network, with the expansion of omni-channel shopping offers.
IN THEIR OWN WORDS: JD.com Strategic Investment Vice President and Head Zhengwei Hu said, "We will use the synergies generated by our respective advantages to jointly promote the digital transformation of the duty-free and travel retail industries, creating a supply chain system with higher efficiency and a better shopping experience."
“Our strategic partnership with JD.com and JIC reflects our ambition to play a leading role in the development of China's dynamic travel retail sector and contribute to the expansion of the domestic duty free industry," Eudes Fabre, CEO for North Asia at Lagardère Travel Retail, said. "The expertise of our partners will help position us for the next phase of growth in the region while creating exciting new possibilities for our customers and partners in the region. The growth of domestic consumption in China and the digitalization of the travel experience are powerful and positive trends for our business in the years to come.”
Dag Rasmussen, Chairman & Chief Executive Officer of Lagardère Travel Retail, said, "We are very pleased to announce this strategic alliance with prestigious partners which will be transformative for our operations in China and will benefit our global travel retail network through increased digitalisation, omni-channel shopping experiences and best practices in supply chain management.”
- JD.com and JIC will pay CNY720 million ($111.5 million) for 22.36% of Lagardère Travel Retail Asia, of which JD.com will hold 18.63% and JIC 3.73%.
- Lagardère generated a total of €148 million ($175 million) in revenue last year.
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