After purchasing a 44 percent stake nearly three years ago for a reported $28 million, Neiman Marcus is pulling out of China's Glamor Sales Ltd. The Chinese company, which made a name for itself selling high-end fashions at a discount, was supposed to function as Neiman's entry point to the world of the high-end Chinese consumer- but ultimately Chinese consumers online are shopping for discounts and just do not pay full price.
"Chinese consumers are going online to get a good deal. If there's no motivation on price, you can't convert them," said Glamour co-founder and CEO Olivier Chouvet reports the Wall Street Journal.
Neiman Marcus had recently planned to expand their operations in China with a warehouse and logistics operation that would allow for the quick deliver of luxury goods to online shoppers nationwide. Neiman's still plan to try and serve the Chinese luxury customer, but will return their efforts to a U.S. base of operations instead of pursuing working from the inside.
Glamour will buy back Neiman Marcus' stake, thought for what sum remains unknown at this time. Neiman's pull out follows luxury brand Burberry's entrance into the Chinese eCommerce ecosystem with their new presence on Alibaba's Tmall.
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