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Comvita not going to increase stores in China due to ecommerce business model

Friday 9 September 2016 10:25 CET | News

Comvita has announced it will not increase stores in China as ecommerce was the main driving force in growing its business.

Since 2004, Comvita has created 35 branded stores and 400 kiosks within department stores. Staff numbers have climbed to 200 as the business has experienced 30% year-on-year growth.

In announcing a deal to buy a majority share in its Chinese distribution partner, Shenzhen company said it was the preferred way forward because it would provide a higher margin and bring the company closer to consumers.

The new arrangement will not see an increase in Comvita-branded stores or kiosks. The growth area was in ecommerce and would allow the company to capture an increased margin on sales.

Under the deal, Comvita will buy 51% of the Shenzhen company by transferring 2.83 million shares at USD 10.60 per share to it.


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Keywords: Comvita, US, ecommerce, stores, China, sales, online sales
Categories: Payments & Commerce
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Countries: World
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