from the May 2015 issue

Representative of Nike and HP in China

In its amended prospectus, Baozun explains that it plans to allocate $32 million of the money it raises for marketing and sales, $26 million for R&D and technological infrastructure, and $13 million for expanding its warehouses and the physical infrastructure necessary for its business.

Founded in Shanghai in 2007, Baozun provides logistics services for e-commerce. It represents international brand names in China, such as HP and Haagen Dazs. These companies wish to outsource at least some of their online business, and Baozun assumes responsibility for the logistical, marketing, making connections, and strategy in this area.

According to figures published by the company, the e-commerce market for brand name companies in China has grown from $4 billion in 2010 to $129 billion in 2014 - average annual growth of 145.7% - and expectations are that the market will reach $379 billion in 2017. The market for accompanying services for e-commerce in brand names is expected to grow from $4 billion in 2014 to $16 billion in 2017.

The largest shareholder in Baozun is Chinese Internet giant Alibaba, which held 23.5% of Baozun's share capital before the offering.

Baozun's revenue totaled $255 million in 2014, and the net loss attributed to its shareholders was $25.1 million.

Reprinted from the Israel High-Tech & Investment Report May 2015

Click HERE to request further information.
Click HERE to go BACK.