Allbirds Announces Agreement with Belle Fashion Group in China

Rhea-AI Summary

Allbirds Inc. (BIRD), a global lifestyle brand known for its innovative, naturally derived footwear, has announced an exclusive distribution agreement with Belle Fashion Group for mainland China, Macau, and Taiwan. This strategic move, effective June 28th, marks a shift from Allbirds' direct go-to-market model to a third-party distributor approach in international markets. Belle Fashion Group, an industry giant with thousands of stores and a strong online presence, will oversee the distribution of Allbirds products across retail, online, and wholesale channels. The partnership aims to leverage Belle's local expertise to drive long-term, scalable growth in the region where Allbirds has been popular since its 2019 launch. This collaboration is expected to significantly enhance Allbirds' brand presence and reach in the Chinese market.

Positive

• Exclusive distribution agreement with Belle Fashion Group, a major player in the Chinese market
• Shift to third-party distributor model aligns with Allbirds' strategy for long-term, scalable growth in overseas markets
• Potential for increased brand reach and presence in China, Macau, and Taiwan through Belle's extensive retail network and online presence
• Leveraging Belle's local knowledge and expertise to enhance market penetration

Negative

• Transition from direct go-to-market model may impact short-term control over brand representation and customer experience
• Potential dependency on Belle Fashion Group for success in the Chinese market

News Market Reaction

-8.74%

1 alert

-8.74% News Effect

On the day this news was published, BIRD declined 8.74%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Footwear brand signs exclusive deal with industry giant

SAN FRANCISCO, Aug. 02, 2024 (GLOBE NEWSWIRE) -- Allbirds Inc., a global lifestyle brand that innovates with naturally derived materials to make better products in a better way, announced that Belle Fashion Group has been appointed its exclusive distributor and licensee in mainland China, Macau and Taiwan, effective June 28th.

The shift from a direct go-to-market model to a third-party distributor model internationally is a critical component of Allbirds’s strategy to drive long-term, scalable growth in overseas markets.

Allbirds first launched in China in 2019, where Belle Fashion Group already operates thousands of stores and boasts a broad online presence for an expansive portfolio of footwear, apparel and accessories brands.

“China is a key part of our global business, and we’re proud to be partnering with industry leader Belle Fashion Group to elevate our brand presence in the region,” said Annie Mitchell, Chief Financial Officer of Allbirds. “We’ve enjoyed great popularity locally since launching there five years ago and, utilizing Belle’s local knowledge and expertise, we look forward to further extending our brand reach in this important region.”

Belle Fashion Group will oversee the distribution of Allbirds products across retail, online and wholesale channels and will allocate dedicated brand and marketing resources to the partnership.

About Allbirds, Inc.
Based in San Francisco, with its roots in New Zealand, Allbirds launched in 2016 with a single shoe: the now iconic Wool Runner. In the years since, Allbirds has sold millions of pairs of shoes, and has maintained its commitment to incredible comfort, versatile style and unmatched quality. This is made possible with materials like Allbirds’s sugarcane-based midsole technology, SweetFoam™, and textiles made with eucalyptus fibers and Merino wool – so consumers don't have to compromise between the best products and their impact on the earth. www.allbirds.com

About Belle Fashion Group
A leading soft fashion company and the largest fashion footwear company in China, Belle Fashion Group operates a diversified portfolio of 19 core self-owned brands and partner brands, with product categories encompassing footwear, apparel and accessories for women, men, and kids. With a direct-to-consumer retail model, Belle Fashion operates an extensive omni-channel retail network including over 8,000 offline stores as well as online operations across various e-commerce platforms and social media platforms. https://www.bellefashion.com.cn/en

Contact
press@allbirds.com

FAQ

What is the new distribution agreement Allbirds (BIRD) announced for the Chinese market?

Allbirds (BIRD) announced an exclusive distribution agreement with Belle Fashion Group for mainland China, Macau, and Taiwan, effective June 28th, 2024. Belle Fashion Group will oversee the distribution of Allbirds products across retail, online, and wholesale channels in these regions.

How long has Allbirds (BIRD) been operating in China before this new agreement?

Allbirds (BIRD) first launched in China in 2019, meaning they have been operating in the Chinese market for about five years before entering into this new distribution agreement with Belle Fashion Group.

What is the strategic significance of Allbirds' (BIRD) partnership with Belle Fashion Group?

The partnership with Belle Fashion Group is a critical component of Allbirds' (BIRD) strategy to drive long-term, scalable growth in overseas markets. It allows Allbirds to leverage Belle's local knowledge, expertise, and extensive retail network to further extend their brand reach in the important Chinese market.

How will the new distribution agreement affect Allbirds' (BIRD) operations in China?

The agreement shifts Allbirds (BIRD) from a direct go-to-market model to a third-party distributor model in China. Belle Fashion Group will now oversee the distribution of Allbirds products across retail, online, and wholesale channels, and will allocate dedicated brand and marketing resources to the partnership.