The Alibaba Group, the big name in China e-commerce, is investing $100 million in a site for daily deals on luxury items and high-end fashion brands according to Reuters. The website is Mei.com, a “flash sales” platform for luxury and fashion good.
Earlier this month, Alibaba said it would form a team within its Tmall business-to-consumer platform to help Mei.com expand its user base, product offerings, logistics and IT infrastructure, but did not disclose the size of its investment.
Alibaba currently offers multiple e-commerce platforms, including its own “flash sales” site, Juhuasuan. However, its market share in luxury brands has been limited so far.
The $100-million investment can aid Alibaba expand its luxury goods offerings in China and increase its reputation with foreign brands, especially luxury makers. Friction over intellectual property-infringing products on the Chinese group’s e-commerce sites has been frequent with popular brands.