The importance of the Chinese market for high-end brands that are seeking a way out of the novel coronavirus induced slump was underscored by the decision of the global fashion label Gucci to open up two flagship stores on Alibaba’s online luxury shopping platform.
Owned by the French group Kering and one of the largest profit makers of the group, Gucci is also one of the largest brands that have joined the Tmall Luxury Pavilion platform. Created in 2017, the online platform currently touts to have more than 200 luxury brands ranging from apparel to high-end cars.
The two companies said in a joint statement on Friday that fashion and leather goods collections from Gucci will available to consumers in the first flagship store of the brand and is slated to open on the platform on December 21. In February next year, the luxury brand will launch a second store that will offer beauty products. Gucci’s license partner Coty will operate the second online store.
So far this year, despite the pandemic hitting the global luxury products market, the only bright spot had been China. Chinese consumers are known to make more purchases on their mobiles through mobile apps compared to their counterparts the United States or Europe. The Chinese market has also seen a surge in demand and sale of luxury products since the easing down of lockdown measures, imposed to curb the spread of the pandemic, in the country since the spring.
According to consultancy Bain, with a total of around 35 per cent of luxury goods purchases even prior to the pandemic hit, Chinese customers are now expected to gobble up about half of the total global sales of high-end clothes, handbags, jewellery and other luxury products by 2025.
The pandemic has forced a large number of luxury brands to shift more of their business on the web which includes selling their products through third parties, whereas those very brands were previously quite reluctant to sell their products online. The luxury brands are also focusing on targeting the younger consumers who, according to many analysts, will drive the recovery of the global economy from the pandemic induced recession.
Its own Chinese website, gucci.cn, already exists for Gucci and products of the brand are also available on all major Chinese social media platforms such as Weibo and WeChat.
Alibaba said Tmall Luxury Pavilion has a consumer base of 750 million people.
(Source:www.thehindubusinessline.com)
Owned by the French group Kering and one of the largest profit makers of the group, Gucci is also one of the largest brands that have joined the Tmall Luxury Pavilion platform. Created in 2017, the online platform currently touts to have more than 200 luxury brands ranging from apparel to high-end cars.
The two companies said in a joint statement on Friday that fashion and leather goods collections from Gucci will available to consumers in the first flagship store of the brand and is slated to open on the platform on December 21. In February next year, the luxury brand will launch a second store that will offer beauty products. Gucci’s license partner Coty will operate the second online store.
So far this year, despite the pandemic hitting the global luxury products market, the only bright spot had been China. Chinese consumers are known to make more purchases on their mobiles through mobile apps compared to their counterparts the United States or Europe. The Chinese market has also seen a surge in demand and sale of luxury products since the easing down of lockdown measures, imposed to curb the spread of the pandemic, in the country since the spring.
According to consultancy Bain, with a total of around 35 per cent of luxury goods purchases even prior to the pandemic hit, Chinese customers are now expected to gobble up about half of the total global sales of high-end clothes, handbags, jewellery and other luxury products by 2025.
The pandemic has forced a large number of luxury brands to shift more of their business on the web which includes selling their products through third parties, whereas those very brands were previously quite reluctant to sell their products online. The luxury brands are also focusing on targeting the younger consumers who, according to many analysts, will drive the recovery of the global economy from the pandemic induced recession.
Its own Chinese website, gucci.cn, already exists for Gucci and products of the brand are also available on all major Chinese social media platforms such as Weibo and WeChat.
Alibaba said Tmall Luxury Pavilion has a consumer base of 750 million people.
(Source:www.thehindubusinessline.com)
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