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Ayala Group-Global Fashion Group deal boosts ZALORA's e-commerce lead in PH

By Lionell Go Macahilig - on 1 Mar 2017, 4:48pm

Ayala Group-Global Fashion Group deal boosts ZALORA's e-commerce lead in PH

With the Philippines having a huge population, majority of which belonging to an emerging young market classified as digital natives, along with the heavy penetration of mobile devices and social media platforms in the market, more and more companies in the country are delving deeper into digital transformation in order to ensure success in the cutthroat business environment. At the forefront of digital transformation, the country’s oldest conglomerate, the Ayala Group, merged with the world’s leading online fashion destination for emerging markets, the Global Fashion Group (GFG).

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“With millions of Filipinos increasingly going online and with the average Filipino spending more time online per day than any other country in the world, there has never been a more exciting time for e-commerce in this country. This important partnership with the Ayala Group of companies will allow us to further accelerate the growth of our business from our leading position in fashion e-commerce in the country today,” ZALORA Philippines Co-Founder and CEO Paulo Campos added.

Now with a 49% ownership stake in GFG’s ZALORA Philippines, Ayala’s presence in the growing e-commerce segment in the country complements the company’s established reputation in banking, real estate, retail, and telecommunications. At the same time, the partnership also bolsters GFG’s presence in Southeast Asia, as the Philippines is one of the fastest growing markets in the region. Fifty-one percent of ownership stake in ZALORA Philippines still belongs to GFG and it still controls the operations of the business.

“We are proud of how ZALORA Philippines contributed to the development of e-commerce and fashion in the Philippines. This partnership with Ayala will allow us to further strengthen the leadership position of ZALORA Philippines, as we invest more into delivering the best online fashion shopping experience for Filipino consumers. We are excited by the journey ahead and the opportunity to bring more value and services to all Filipino shoppers,” GFG CEO Romain Voog said.

“This investment demonstrates how we, at Ayala, look at innovation and growth opportunities. We see the potential of e-commerce in the country and believe that the Ayala group can benefit and add tremendous value to ZALORA. With resources in banking, real estate and telecommunications, the investment presents new opportunities for Ayala to generate synergies throughout the e-commerce value chain. With the rising demands of the communities that we serve, we believe new business models such as ZALORA’s can provide alternative solutions and services that are complementary to our traditional brick and mortar operations,” Ayala Corporation Chairman and CEO Jaime Augusto Zobel de Ayala said.

ZALORA Philippines is part of GFG’s extensive network of fashion e-commerce platforms worldwide, namely The Iconic in Australia, Lamoda in Russia, Jabong in South Asia, Dafiti in South America, and Namshi in the Middle East. To date, ZALORA Philippines has more than 500 local and international brands, and over 300 home grown, independent brands, and fashion boutiques in its portfolio. Its e-commerce platform also houses more than 15,000 product offerings across apparel, shoes, accessories, and beauty products for both men and women. At present, it has distribution hubs located in Cebu, Davao, Paranaque, and Zamboanga, all equipped with delivery fleets.