Ho Chi Minh City-based Nguyen Kim Trading JSC, in which Thailand’s Central Group
holds a 49% stake, has bought out Zalora
Vietnam, a fashion-oriented e-commerce site owned by Zalora Group.
“We’ve built a strong foundation for the two ventures, and as they start a new chapter in their journey to serve fashion consumers in Thailand and Vietnam, we are confident that Central Group and Nguyen Kim Trading can steer them to new heights,” said Michele Ferrario, CEO of Zalora Group, in a press release.
The exit from Thailand and Vietnam assets will help Zalora focus on other Asian markets such as Singapore, Malaysia, Taiwan, Hong Kong, the Philippines and Indonesia, according to the statement.
According to Tech Crunch, Central Group acquired the country businesses from Zalora for around $10 million each.
Industry insiders said that the acquisition of Zalora Vietnam will help boost Central Group’s strengths in online and offline retail sales in the country.
Zalora was chosen because it is a leader in online fashion shopping in Southeast Asia, Central Group was quoted by Bangkok Post as saying in a statement.
“This is expected to double Central Online’s sales while customers can still choose to shop for fashion items under the Zalora brand, as Zalora will become the flagship fashion e-commerce platform for Central Group,” the statement said.
Central Group and Nguyen Kim Group on April 29 announced the buyout of the grocery chain Big C Vietnam from France’s Casino Group
for around $1 billion, after beating a number of rivals such as TCC Holding, Lotte, Aeon, Masan and Saigon Co.op mart.