In Asia in general and in particular China, the luxury market reappears with force. Chinese consumers also have their own distribution giants that compete face to face with those we know in the West. The Chinese Amazon is called Alibaba, a company that trades on the NYSE – the New York Stock Exchange – for several years and that was one of the most successful IPOs.
Alibaba sells everything in a market of 1,100 million consumers -chinos- where they are practically a monopoly. Many buyers of Western products and 400 million millionaires looking for European and American brands as a status symbol. Perhaps for this reason, after years of trying to break the online sales market in China, the Richemont group has decided that it is better to join the “enemy” for the common good of all. And because losing the Chinese online market – the fastest growing along with the US – is not a decision that companies in the sector can afford.
To the “war of the authorities”, raising taxes and chasing the corruption of recent years, has added the difficulty of competing in the network with copies and counterfeits of the products of brands such as Cartier. For all this, an orderly sales channel was needed. The alliance between the online platform and the French-Swiss luxury giant will be the first joint test to see if sales in the country with the highest growth in luxury consumption, including in the millennial sector, are increasing. “when it comes to buying according to various network behavior studies.
The partnership between both giants is carried out through an agreement between Yoox-Net-a-Porter, the luxury portal of Richemont and the luxury applications of Alibaba, TMall and Taobao.
Chinese consumers represent one third of all luxury and super luxury purchases in the world. 33% of this market is in their hands, and in their portfolios, and they increasingly use the online department stores to carry out their purchases. Entering the Chinese market for European or American companies is practically impossible without a local partner.