Alibaba.com (HKG:1688): Leading European Fashion Brand Bestseller To Open Online Flagship Shop on Taobao

Beijing, Oct 15, 2009 AEST (ABN Newswire) - Bestseller Fashion Group, member of the Danish Bestseller Group and one of the biggest clothing companies in China, has opened a flagship online store on Taobao's Taobao Mall, featuring Bestseller's popular Jack & Jones brand.

"E-commerce is clearly our next logical step in terms of better serving our existing customers while also reaching a broader geographic and demographic base, so the only question was how best to do it," said Dan Friis, co-founder of Bestseller Fashion Group. "Based on its continued strong growth and reach across the nation, reputation for focusing on customer satisfaction, and its dynamism in handling intellectual property protection, we felt Taobao was the obvious choice."

"We believe Bestseller will be a tremendous addition to Taobao Mall, particularly in terms of our focus on expanding Taobao users' access to quality brands and products in an environment dedicated to customer service and satisfaction," said Jonathan Lu, president of Taobao. "The continued expansion of Taobao Mall is part of our overall approach to broadening the platform into a lifestyle community where our users not only shop, but also work, learn and socialize."

Founded in 1975 in Denmark, Bestseller Group has presence in 41 countries around the world with more than 5,000 concept stores and 12,000 authorized retail locations. Bestseller Fashion Group was established in 1996 and has steadily grown into one of the largest fashion companies in China with brands such as Jack & Jones, Vero Moda, Only and Selected. Bestseller Fashion Group will build on its strong presence in the top three tiers of Chinese cities, where it has nearly 2,200 retail locations, and aims to reach more of its fashion-forward customers across China through an online presence on Taobao. The company plans to successively introduce its other fashion brands including Vero Moda, Only and Selected onto Taobao Mall.

Taobao Mall, launched in April 2008, was established as a B2C platform for corporate retailers to offer Taobao users greater shopping selection. Bestseller Fashion Group joins the ranks of major international and domestic brands such as Uniqlo, Procter and Gamble, Lenovo and Li Ning, who have all launched official online retail storefronts in Taobao Mall. Merchants on Taobao Mall undergo an authentication and verification process, in addition to agreeing to provide rigorous customer satisfaction and protection measures such as a seven-day, no-questions-asked refund.

Popularity of the heightened customer protection and satisfaction measures proffered by Taobao Mall stores among Taobao shoppers is reflected in the strong growth in sales volume since its launch. Monthly transaction volume on Taobao Mall tripled by the end of the first half of 2009 relative to the end of 2008 and more than 50 Taobao Mall stores currently report monthly sales exceeding RMB 1 million (US$ 146,000*).

According to market survey, nearly 60 percent of Chinese online shoppers have bought clothing online and apparel has long been one of the top selling categories on Taobao. The alliance between fashion industry and Internet has become a mainstream trend, and this strategic partnership between Bestseller and Taobao is a clear indicator that more and more multinational businesses have recognized the significance of e-commerce in the Chinese market. It further highlights the growing trend of online retailing becoming a key avenue for global brands to increase their breadth and depth of reach in China.

- End -

About Taobao

Launched in 2003, Taobao (www.taobao.com) is the largest Internet retail website in China with 78 percent of the Chinese domestic online consumer market**. It provides the most comprehensive product offering and serves nearly 145 million registered users. Transaction volume on Taobao (gross merchandise volume or GMV) reached nearly RMB80.9 billion (US$11.8 billion) in the first half of 2009, exceeding the largest retailer in China in transaction volume during the same period.

According to government statistics, Taobao's GMV equaled approximately 1.4 percent of China's total retail trade in the first half of 2009. Taobao is the primary online shopping destination for the largest online population in the world***.

Notes:

1] Based on currency exchange rate of US$1 = RMB6.834
2] iResearch China Online Shopping Research Report: 2008-2009. Shanghai: iResearch Consulting Group.
3] According to China Internet Network Information Center (CNNIC), China had 338 million Internet users as of June 30, 2009.

Contact

For media inquiries please contact: John W. Spelich Alibaba Group Tel: +852 2215 5129 Email: johnspelich@hk.alibaba-inc.com Justine Chao Alibaba Group Tel: +852 2215 5229 Email: justinechao@hk.alibaba-inc.com