Gucci is the latest luxury brand to open stores on Tmall’s Luxury Pavilion which now hosts more than 200 brands as online demand for luxury goods booms in China.
Why it matters
- Gucci’s decision is a vote of confidence in the ability of third-party platforms to address counterfeit concerns and to offer an appropriate consumer experience.
- Tmall and similar platforms are becoming important channels as international travel by Chinese consumers stalls.
- Tmall parent Alibaba, along with Swiss luxury business Richemont, recently invested $1.1 billion in online luxury fashion retailer Farfetch and its new marketplace in China.
“In the West, we assume exclusivity means only being accessible in one place, but research shows that the Chinese consumer will have at least 16 touchpoints before committing to a purchase” – James Hebbert, managing director of Chinese digital agency Hylink Digital Solutions.
Sourced from Vogue Business, Reuters