AliExpress Reaches Strategic Partnership with Brazilian Retail Giant Magalu
On June 24, 2024, Chinese cross-border e-commerce platform AliExpress (速卖通) announced a strategic partnership with Brazilian e-commerce leader Magazine Luiza (Magalu) to sell AliExpress’s “Choice” series of products. Following this announcement, Magalu’s stock price surged by 12%.
Starting next quarter, Choice products on AliExpress will be sold simultaneously on Magalu. At the same time, Magalu will also open a store on AliExpress to sell local products.
This partnership brings together the strengths of both companies. AliExpress offers a wider variety of products in categories like computer accessories, fashion items, tools, and baby products. Magalu, a leader in the Brazilian retail market, boasts significant advantages in logistics and omnichannel sales.
The collaboration is expected to unlock greater growth potential for both e-commerce giants, which boast the largest audiences in Brazil. Combined, the two companies see over 700 million monthly visits. Consumers can expect a diverse product mix with high-quality curation and services.
In addition to selling AliExpress products on Magalu’s platform, Magalu’s “1P” products (items sold directly by manufacturers or brands to consumers via the e-commerce platform) will be distributed across Brazil through the AliExpress platform.
Magalu CEO Frederico Trajano believes the partnership will complement both companies’ products and sales channels. He highlighted that Magalu’s leadership in the Brazilian market, particularly in logistics and omnichannel sales, will boost the online sales of Magalu’s “1P” products through this collaboration.
The news was met with enthusiasm by investors, with Magalu’s share price rising by more than 12% after the announcement.
