Chinese e-commerce giant, Alibaba has entered into an agreement with renowned furniture retail platform, Red Star Macalline. This decision comes soon after the e-commerce giant invested $635 million in Red Star. The acquisition has given Alibaba a 10% stake in the home furnishings company. The firm has also purchased about 3.7% of Red Star Macalline’s publicly-traded shares on the Hong Kong Stock Exchange. The strategic contract between the two is part of a larger push into ‘new retail’ by Alibaba and covers the retail, e-commerce payments, logistics as well as consumer finance segment.
The Home Furnishings leader mentioned that ‘the company can introduce advanced operating philosophies and bring in the technical support of Alibaba in the new-retailing areas to the company’s main business operations in home improvement and furnishing shopping malls. This will enhance the company’s operational efficiency and further encourage the integration of online and offline business of the industry.’