CHINA/FRANCE. In major breaking news, ecommerce giant JD.com and leading Chinese state-owned fund JIC are investing in Lagardère Travel Retail’s North Asia business which encompasses travel retail & duty free activities in Mainland China, Hong Kong and Japan.
Recognising the value of Lagardère Travel Retail’s extensive presence in key transportation hubs, leading market position and growth prospects, JD.com and JIC will invest a combined CNY720 million (US$111.4 million) in Lagardère Travel Retail’s North Asia business and hold 22.36% of the company’s post-offering share capital.
The transaction is subject to the customary closing process and is expected to be completed in September 2021.
Lagardère Travel Retail said that the partnership will position it for accelerated growth in China. It will also contribute to the evolution of its business model “in an increasingly digitalised world where consumers expect an omnichannel customer experience driven by supply chain performance, consumer insights and loyalty recognition”.
Lagardère Travel Retail and JD.com will cooperate in areas including omnichannel retail, smart supply chain, logistics and analytics. Lagardère Travel Retail will leverage JD’s digital expertise to enable new customer experiences and services throughout its retail network in airports and railway stations.
The partners will develop omnichannel duty free and duty paid shopping offers aimed at travelling consumers with a focus on high-quality customer engagement across product categories. JD Worldwide, the global import platform of JD.com, will join forces with Lagardère Travel Retail to further develop its duty free business.
JD.com is a leading ecommerce company transforming to become a technology-driven supply chain and service provider. The company’s cutting-edge retail infrastructure enables consumers to buy whatever they want, whenever and wherever they want it. Its capabilities in logistics allow it to offer same-day and next day delivery to almost all of China’s population, a strength that will complement Lagardère Travel Retail’s leading position in domestic duty paid travel retail and a growing presence in Asia duty free,
Lagardère Travel Retail Chairman & Chief Executive Officer Dag Rasmussen 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.
“Beyond commercial opportunities, Lagardère Travel Retail, JD.com and JIC have a shared commitment to making positive contributions to society through inclusiveness and sustainability which makes this partnership even more meaningful.”
Lagardère Travel Retail CEO for North Asia Eudes Fabre added: “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.
“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 digitalisation of the travel experience are powerful and positive trends for our business in the years to come.” [Eudes Fabre will speak on the subject of digitalisation in travel retail at the forthcoming Virtual Travel Retail Expo in October].
Simon Han, Vice President of JD.com, who supervises JD Worldwide said: “Our strategic cooperation with Lagardère Travel Retail can enhance our respective strengths and bring mutual benefits, allowing us to explore more opportunities in the travel retail sector. At the same time, we will join hands to develop a comprehensive cooperation that will create richer shopping choices and a better experience for customers.”
JD.com Vice President and Head of Strategic Investment Zhengwei Hu added: “We are pleased to become a strategic partner of Lagardère Travel Retail, a global leader in its sector. 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.”
Having launched operations in Mainland China in 2007 and Japan in 2020, Lagardère Travel Retail is now present in 32 airports and 28 high-speed railway stations in North Asia, with a network of 480 stores across categories including luxury, duty-free, travel essentials, specialty retail and food & beverage.
Lagardère’s mission is to enrich the journey of travellers and maximise the performance of the commercial assets of airport and rail operators through an innovative portfolio of retail & food service concepts and a commitment to operational excellence.
ABOUT LAGARDÈRE TRAVEL RETAIL
One of the two divisions of the Lagardère group, Lagardère Travel Retail is a global leader in the travel retail industry. Operating over 4,850 stores across Travel Essentials, Duty-Free & Fashion and Foodservice in airports, railway stations and other concessions in 39 countries and territories, Lagardère Travel Retail generated €5.5 billion in sales in 2019 (managed 100%).
ABOUT JD.COM
JD.com is a leading technology driven ecommerce company transforming to become the leading supply chain-based technology and service provider. The company’s cutting-edge retail infrastructure seeks to enable consumers to buy whatever they want, whenever and wherever they want it. The company has opened its technology and infrastructure to partners, brands and other sectors, as part of its Retail as a Service offering to help drive productivity and innovation across a range of industries.
