Our Corporate team advised Jessica Rudd on the sale of her business Jessica’s Suitcase to eCargo Holdings Limited for $15 million.
Jessica’s Suitcase operates an eCommerce store on Alibaba’s Tmall Global Platform, offering quality Australian and New Zealand products to Chinese consumers. eCargo is a China-based eCommerce technology and specialist execution group. The acquisition provides eCargo a platform and leverage to meet strong Chinese consumer demand for foreign products through the Daigou channel, a growing new export and eCommerce channel. The Daigou channel is where a person outside China buys commodities (usually luxury goods but also groceries) for a customer in mainland China. A 2015 survey of Chinese online luxury shoppers found that 35% have used daigou to purchase luxury goods online. Approximately 80% of Chinese luxury purchases are made abroad. Some commentators have estimated sales of $100 billion annually across the retail sector.
Thomson Geer Partner, Eugene Fung said:
“Jessica’s Suitcase has in depth operational and market knowledge of participating in Alibaba’s Tmall Global Platform. It will complement eCargo’s expansion into the Daigou to consumer channel (D2C), yet another phenomenon fuelled by demand from the rapidly growing Chinese middle class. This is a further example of the China-driven work that Thomson Geer has been involved with over the last few years, in addition to property development, energy and resources and agribusiness”.