RICHEMONT INKS DEAL WITH ALIBABA TO BRING MORE ONLINE LUXURY RETAIL OFFERINGS TO CHINA
Richemont, the Swiss luxury goods group, and Alibaba Group today announce a global strategic partnership to bring the retail offerings of online luxury retailer Yoox Net-A-Porter Group (YNAP) to Chinese consumers.
Under the partnership, YNAP and Alibaba will establish a joint venture to launch two mobile apps for YNAP’s Net-A-Porter and Mr Porter multi-brand, in-season online stores for consumers in China. Alibaba will provide technology infrastructure, marketing, payments, logistics and other technology support to the joint venture. The partnership will also leverage YNAP’s strong relationship with leading luxury brands, some 950 of them being currently distributed through YNAP in China.
In addition, the joint venture will launch Net-A-Porter and Mr Porter online stores on Alibaba’s Tmall Luxury Pavilion, an exclusive platform dedicated to the world’s leading luxury brands. Launched in 2017, the Tmall Luxury Pavilion aims to create the same brand exclusivity and tailored shopping experience that customers shopping offline typically enjoy. It enables brands to deliver highly personalized shopping experiences through curated homepages, customized brand pages, product recommendations and exclusive VIP awards.
YNAP and Alibaba will also explore future offerings that enable the joint venture’s customers to enjoy unique and seamless online and offline shopping experiences through digitizing and fully integrating the retail value chain from merchandising and marketing to payments and last-mile delivery. The joint venutre will focus on serving consumers in China and will extend to Chinese consumers travelling abroad.
“Chinese customers at home and abroad are an increasingly important customer base for Richemont and for the broader luxury industry,” said Johann Rupert, chairman of Richemont. “Our digital offering in China is in its infancy and we believe that partnering with Alibaba will enable us to become a significant and sustainable online player in this market. Alibaba has become the preferred online destination in China, with world-class teams in technology, logistics and marketing. Through this joint venture, we look forward to opening the important Chinese market to Net-A-Porter, Mr Porter and the luxury brands they offer their clientele. To this end, we will work with Alibaba to ensure Net-A-Porter and Mr Porter’s continuing expansion as neutral, open and sophisticated platforms.”
“Yoox Net-A-Porter has always built long-term relationships with its brand partners, protecting and nurturing the finest luxury names online,” added Federico Marchetti, CEO of Yoox Net-A-Porter Group. “Together with Alibaba, we will offer our brand partners the same quality and reliability for the Chinese online market. Leveraging Net-A-Porter and Mr Porter, luxury brands can access a neutral and powerful platform to maximize China’s immense potential.”
Daniel Zhang, CEO of Alibaba Group, said: “This multi-faceted partnership will bring Chinese consumers unprecedented access to the world’s leading luxury brands. Chinese consumers are expected to account for nearly half of the global luxury market by 2025, and through this partnership, Alibaba and YNAP will be even better positioned to capture this compelling market opportunity. As Chinese consumers continue to upgrade their lifestyles, we want to meet the desires of Alibaba’s more than 600 million users. By integrating online and offline commerce through our New Retail technologies, we will be able to deliver a seamless experience to consumers as well as better enable these leading brands to engage their customers in new and innovative ways. We believe this announcement is just the beginning of a long-term partnership, and together we are committed to exploring many more opportunities to collaborate in the future.”
Images via Mr Porter