(Yicai Global) Sept. 19 -- Many well-known fashion brands have adjusted their strategies or business operations and closed their stores on JD.com, the e-commerce marketplace of JD.com Inc. [NASDAQ:JD].
Some 44 brands including ones from clothing firms JNBY Design Ltd. [HK:3306], Ningbo Peacebird Fashion Co. [SHA:603877], Jeanswest Corp. and Ningbo GXG Co. exited the market, Chinese newspaper Nanfang Metropolis Daily quoted JD.com as saying today.
All 44 are well-know and influential clothing brands, and most of them have achieved rapid sale growth on the e-commerce site. Sales of Peacebird and Jeanswest on JD.com rose 90 percent and 40 percent, respectively, in the first eight months of the year, and GXG posted 120 percent sales growth, JD.com data show.
Zhejiang Semir Garment Co.'s [SHE:002563] Semir, Heilan Home Co.'s [SHA:600398] Heilan Home and Jeanswest were among the seven best-selling menswear brands that left the site, JD.com said.
The firms did not retreat from all electronic retail platforms, and their stores on Tmall.com, an e-commerce site operated by Alibaba Group Holding Ltd. [NYSE:BABA], are still online.
Given the fierce competition on the online clothing market, it is possible that a third party has pressured the brands to close their JD.com shops, said Cao Lei, head of the China Electronic Commerce Research Center.
Tmall is the dominant player on China's apparel market claiming an 80.7-percent share of the market, and it is followed by JD.com with an 8.7-percent share, per an Analysis Ltd. report.