Rocket Internet to bring 5 retailers under single global ecommerce flag

Friday 5 September 2014 13:39 CET | News

Rocket Internet, a German online startup incubator, has revealed plans to build a global ecommerce company by merging 5 of its existing regional retailers.

The new company, named the Global Fashion Group (GFG), will be made up of Dafiti (Latin America), Jabong (India), Lamoda (Russia & CIS), Namshi (Middle East) and Zalora (South East Asia & Australia), reports.

The new business will have a global reach, although the regional sub-divisions will keep their individual business models, inventories and branding. The 5 GFG companies will be focused on combining multiple business models, which entail the development of online brands (e.g. Dafiti in Brazil), building the necessary infrastructure including where necessary last mile delivery networks (e.g. Lamoda Express in Russia), creating private label brands (e.g. “Lara Karen” and “Sangria” by Jabong in India and ”Zalora” and “Ezra” by Zalora in South East Asia) and delivering mobile applications (e.g. Namshi in Middle East). Such a strategy aims at improving global best practice sharing across functions, deliver economies of scale in sourcing international brands and marketing with global media channels, strengthen the private label efforts, boost the development of technology platforms.

As of June 30 2014, GFG had 4.6 million active customers and over 7,000 employees. In H1 2014, GFG websites received 8.4 million orders and generated EUR 436 million of gross merchandise volume.

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Keywords: Rocket Internet, online startup, global ecommerce company, online retail, Global Fashion Group, Dafiti, Jabong, Lamoda, Namshi, Zalora
Categories: Payments & Commerce
Countries: World
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