After a downturn between 2013 and 2015, China’s luxury market is booming, by 2024, Chinese will buy 40% of luxury items according to a Boston Consulting Group study.
An evolution carried by an ultra-connected millennial population, logo fans with a high purchasing power who love handbags, cosmetics, ready-to-wear and cars and not hesitant to buy luxury brands.
Chinese millennial represent more than 400 million people, more than the US population and they are more likely to purchase online than in store.
With sales of nearly $40 billion in its last financial year to March 2018, Alibaba and the Swiss group Richemont joint venture to launch luxury retail platform for Chinese client. The project is based on the creation of two applications Net-à-porter and Mr Porter.
It is necessary for the financial company to increase her online presence in the country as Chinese clients are considered as an increasingly important base for the group.
However, China is far from being an unexplored territory for luxury e-merchants. Richemont will have to deal with the Farfetch Marketplace, allied with the sworn enemies of Alibaba, JD.com and Tencent.