E-commerce in China: Tmall released a luxury strategy, the first transcription came out - China Fashion Market Service - Chinabogeda.com
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E-commerce in China: Tmall released a luxury strategy, the first transcription came out

On April 11th, more than 70 of the top luxury brand executives worldwide, gathered in Shanghai to participate in the meeting of the Luxury Pavilion brand held by Tmall. They included TOD’s, Burberry, Ralph Lauren, Zenith and so on. 


Luxury Pavilion fullly Upgraded in the Tmall lLuxury Platform

At the meeting, Liu Xiuyun, the general manager of Tmall’s apparel business unit, announced the future development strategy for luxury goods. In order to serve more new middle class with the strong desire for consumption in China, Luxury Pavilion as the first exclusive platform for luxury goods in the worldwide, will be fully upgraded. Luxury Pavilion will launch the first luxury financial consumer solution in the world including phased interest free, temporary increase in credit limit, and reservation guarantee. They will also release the first genuine traceability function based on blockchain technology, set up a dedicated customer service team to serve high-end users, and launch the first luxury brand global marketing and operations solution to explore the possibilities of new retail with global luxury brands.


Jing Jie ,the president of Tmall , talk about the new retail with global luxury brands. The Pavilion Club as the example, is the latest launch of the Luxury Pavilion. It will provide priority purchases, exclusive offers and one-on-one dedicated customer service for the high-end users.  to It provides limited boutique purchases, offline experience and other services to help brands achieve the full channel for their member through linking with the luxury brands. At the same time, Tmall will build a dedicated customer service team with thousands employees to solve the customer problems quickly with one key.

Additionally, with the Ali Cloud blockchain technology, the first luxury-based genuine source tracing function in the world will also log into Tmall. Tmall will integrate the information about the raw material production process, circulation process and marketing process into the blockchain. Thus, each piece of information of the brand has a unique block chain “ID card” with the digital signature and time stamp in order to query and verify for consumers.


In the future, consumers only need to find the purchase order on the Luxury Pavilion, click on “One-click trace source” or directly scan the source code on the product to see the corresponding blockchain code, know about the information of the product such as the origin, the entry declaration number and the time of entry declaration and so on.

Meanwhile Tmall also released the first luxury financial consumer solutions and global solutions for luxury goods in the world. Tmall and Ant Financial Services Group customize the three financial services, such as “phased interest free”, “temporary increase in credit limit” and “pre-authorized debit reservation” for high-end users. It Helps brands to attract and retain more potential customers.

Interestingly, the Luxury Pavilion will also transform into a better-reading “fashion magazine”. In conjunction with the main products of luxury brands, Luxury Pavilion will collaborate with the prestigious fashion magazine Vogue to launch a weekly featured theme. This is also the first time Vogue has tried to produce high quality content in a third-party online channel.

Luxury Goods focus on Opening New Retail 

The data shows that the annual consumption of Luxury Pavilion has exceed one million and has neally 100,000 high-end members after it started more than half year. It has attracted the nine global luxury goods groups to cooperate together, such as LVMH, Estee Lauder Group, Swatch Group, L’Oreal Group, PVH Group and so on. At the same time, 50 global luxury brands including Burberry, Baccarat, Bonpoint, Givenchy, Guerlain, Hugo Boss and Hennessy have been established, it covers the products from heavy luxury to light luxury, spans all categories of clothing, leather goods, beauty and watches.


Except the Luxury Pavilion platform, more luxury brands are also accelerating cooperation with Tmall in the form of brand flagship stores and virtual flash stores. In the first quarter of 2018, there are more than 10 luxury brand concentrated on Tmall, such as Marni, Armani, Givenchy and YSL.


The new retail conception of Tmall is also attracting the global luxury goods, exploring new ways to practice in the world’s largest luxury consumer market in China, and then transform their new experiences to the other market around the world for the luxury goods to other markets.

At the end of last year, Tmall open a one-month flash shop, digital marketing and other services for luxury goods to provide brand display with Stella McCartney of Kering Group. Most of products on the line were sold out in a short time. This kind of innovative mathed will become the “standard” for online operation and marketing of luxury brands in the future.

In February of this year, Christopher Bailey, creative director of Burberry for 16 years, moved the last originally London Fashion Week shows on Tmall and launched buy while watching. This is the first time of more than 160 years of Burberry’s history which the products was sold while the big show implemented simultaneously.

For the new retail conception, many brands such as Yuan Liwei, general manager of Shiseido Group Digital Marketing, have their own understanding. It is that “the strategic partnership between Zishengtang and Alibaba will enter a new step. We are full of confidence and full of expectation. Except the common sales target, we are expect to work with Tmall on banking, the integration of digital marketing, and new retail.


Tmall has became the first platform for luxury goods

According to the 2018 New Generation Luxury Consumers Insight Report , among the entire luxury consumers of the Taobao series, the 90s new generation of young people have accounted for nearly 50%, and they completed a luxury deal up to 45%. At the same time, more than 100 million consumers have viewed, collected, add to shopping cart, or purchased luxury goods in the nearly one year. They are the potential users that luxury goods most want to attract.


Online luxury core users and potential users are experiencing explosive growth. No matter viewing from scale, growth rate, brand coverage or amounts of users, Tmall has became the first platform for luxury goods and brand operation.

At the press conference on the same day, the president of Tmall also announced a small goal for the next three years: Tmall will continue to build a conmunicate bridge between the luxury brand and the new generations of 90s and even 00s, serving 100 million new middle class customers. This number is equivalent to 4-5 times of the current Chinese luxury consumers.

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