NetEase Kaola deepens commitment to broaden Chinese consumers' access to French brands with newly signed partnership agreement

Ahead of Singles Day on November 11, the world's largest online shopping holiday by sales, NetEase Kaola CEO Lily Lei Zhang visited Paris to highlight the importance of French brands for the company. Despite being perceived by Chinese consumers as the global capital of style and home to businesses with a strong cultural heritage, France is the sixth leading origin of products on the NetEase Kaola platform, slightly behind the European countries of Germany and the Netherlands.

Ms. Zhang stated, "France and French brands are icons of fashion, quality and style, but a majority of these brands remain inaccessible to Chinese consumers due to challenges in cross-border trade. With our unique approach to cross-border e-commerce, we are dedicated to helping French brands increase their exposure in China, and connect them with fashion-forward, well-educated young women who are searching for high-quality products that complement their individual style. In addition, we are committed to becoming the leading partner for French brands in China, with one-stop services for suppliers and further developing our wholly-owned European Operations Center." 

As a leading Chinese online e-commerce company, NetEase Kaola aims to forge partnerships with French retail chains and department stores to introduce Chinese consumers to desirable French maternity and infant, cosmetics, apparel, handbags and luggage, health and food products. The number of French brands available on the NetEase Kaola platform will increase to 500 by early 2018, pointing to a growing demand for French products among China's younger consumers.  

Rémy Arthus, Director General of the Paris Chamber of Commerce, said, "The rapid development of cross-border e-commerce in China will undoubtedly bring more opportunities for French brands. In particular, the advantages of cross-border e-commerce in terms of efficiency and cost will have practical implications for small and medium-sized French brands, as well as iconic French brands, as their business expands in China. As a leader in China's cross-border e-commerce industry, NetEase Kaola has a strong track record of collaboration with well-known French brands, and also achieved excellent sales performance."

Currently, there are over 330 French brands available on NetEase Kaola. To improve ease of access for suppliers, the company has established a wholly-owned French subsidiary, and also operates one warehouse near the Charles de Gaulle Airport. Leading product categories for the company include beauty and cosmetics, maternal and infant, handbags, health foods, personal care and apparel, with popular French brands such as Kidiliz, Parashop and Biocyte being well-represented on the platform.   

Gael Estublier, International Group Director of Kidiliz, said, "Kidiliz Group and NetEase Kaola began collaborating in late 2016, and today, NetEase Kaola has become one of the largest sales channels for Kidiliz brands in China. We plan to expand the scale and depth of our collaboration with NetEase Kaola, and more brands from the Kidiliz portfolio will be introduced to China through the NetEase Kaola platform. The success of this expansion will focus on online distribution supported by offline physical stores across China, which will launch later this month."

As Singles Day celebrates its ninth anniversary in 2017, millennial Chinese consumers are increasingly choosing well-recognized and trustworthy brands, even indicating their willingness to pay a premium for such products. This trend has served as the foundation for NetEase Kaola's remarkable growth, and the company is continuing to increase the percentage of products sold from France. In addition, NetEase Kaola has announced a plan to purchase US$3 billion worth of products from U.S. brands over the near future.

NetEase Kaola is owned by NetEase (Nasdaq: NTES), a leading internet technology company in China which listed on Nasdaq in 2000, and one of the most profitable Chinese technology companies worldwide with approximately 800 million users. With a market cap of US$36.8 billion currently, NetEase is ranked No. 31 on the 2017 Forbes List of Growth Champions, and No. 191 on the 2017 Forbes List of Top Regarded Companies. E-commerce serves as one of the main growth engines for NetEase, and NetEase Kaola's per customer transaction value is more than double the average transaction value in the cross-border e-commerce industry.

About NetEase Kaola

NetEase Kaola is China's leading cross-border e-commerce platform. It provides a platform for international brands to sell their products securely to Chinese consumers and for Chinese consumers to purchase safe, quality international premium goods in a convenient way. Launched in 2015, it carries over 5,000 brands from 80 countries. The transaction value per customer is double the average transaction value in the cross-border e-commerce industry.

About NetEase, Inc.

NetEase, Inc. (NASDAQ: NTES) is a leading internet technology company in China. Dedicated to providing online services centered around content, community, communication and commerce, NetEase develops and operates some of China's most popular PC-client and mobile games, advertising services, e-mail services and e-commerce platforms. In partnership with Blizzard Entertainment, Mojang AB (a Microsoft subsidiary) and other global game developers, NetEase also operates some of the most popular international online games in China. For more information, please visit: http://ir.netease.com/.

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