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Getting Fit in China: Fitbit’s Alibaba Partnership Driving Sales

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Fitbit Blaze and Fitbit Alta drove revenues in 1Q16

In May 2016, Fitbit (FIT) announced the availability of its flagship products—Fitbit Blaze and Fitbit Alta—in China (FXI). Fitbit also partnered with Alibaba (BABA) to organize a health and fitness event as part of its “China is Getting Fit” initiative.

In order to drive sales in China, Fitbit’s devices will be available on Alibaba’s online platform known as Tmall.com. According to Fitbit, Tmall is China’s largest third-party platform for brands and retailers.

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James Park, Fitbit co-founder and CEO (chief executive officer), said, “Alibaba is the perfect partner to help us expand our reach to millions more Chinese consumers and show how Fitbit can help them take small steps to be more active, exercise more and sleep better, which can lead to improvements in overall well-being.”

Blaze and Alta accounted for 47% of revenues in 1Q16.

Language and localization customization

Fitbit previously stressed the importance of language and localization customization to compete in China, Japan, and Korea. The company announced that some of these customizations will be launched in 2Q16.

As sales of Blaze and Alta stabilize in the United States, revenues generated from China for these products are expected to drive revenues in 2Q16.

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