What: a reported joint-venture between Ali Baba and Dufry

Why is it important: at a time when international travel rebound is still a far sight and Chinese expected to keep on travel nationwide or regionally, this is a potentially mutual good bet for both players.

Alibaba is reported to take 10% of Swiss travel retail based Dufry, as well as to create together a joint venture in China. This comes at a good moment for Dufry, which has been particularly hit hard during the pandemic, and had to announce a drastic plan of layoffs up to a third of its workforce. According to the FT, its revenue is said to have dropped -70% this year, across its 2,500 locations worldwide. This new venture could prove mutually beneficial:

• For Dufry, having a privileged access to a 720m customer base, avid of duty free goods, and benefit from the digital-savvy platforms of Alibaba, including Alipay to be deployed at all Dufry’s locations
• For Alibaba, team up with an international company who has, by Chinese law, the right to sell goods online at a lower tax rate, as well as the access to a portfolio of international brands replacing unreliable intermediaries

Alibaba to take up to 10% of Dufry

Alibaba/Dufry: line of duty

Related item:

• Upswing for domestic travel retail in China