Luxury Group LVMH Announces Embracing Tmall

The picture shows Wu Yue, President of LVMH group Greater China.

In less than three months,

They are also gathering strength against Ma, including Michael Kors and Gucci, who have announced their withdrawal from IACC and oppose Alibaba's accession to IACC.

But now, the direction of the wind is undergoing subtle changes. Unlike the Gucci parent company Kai Yun group, the world's largest luxury goods giant LVMH recently announced its high-profile embrace of Alibaba.

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In September 7th, LVMH and its luxury brand Guerlain GUERLAIN officially landed on Tmall to open the pre-sale. The 188 year old Guerlain took the post of 90's Yang Yang to open the Tmall Guerlain official flagship store in the form of live broadcast.

LVMH group's Guerlain, Guerlain up forever, and up group began to embrace Tmall.

"I represent the largest luxury group in the world.

It is a warm congratulation to our Guerlain brand on Tmall. "

Wu Yue, President of LVMH group Greater China, did not conceal his praise of Tmall platform in the press conference of Guerlain's entry to Tmall: "today, Tmall represents China, reflecting the progress of China and the development of China, attracting the Chinese fashion crowd, so it is natural for the brand to enter Tmall in luxury.

In today's information age, online and offline interaction has become an inevitable trend, and for our luxury brands, it is no exception.

The French Guerlain has settled in Tmall, and I believe it is a spur for the whole group.

The e-commerce platform, once resisted by luxury brands, has now become an important channel for its marketing.

McKinsey consulted the Italy Luxury Association Fondazione Altagamma.

"Predicts that the online luxury goods sales market will double to 12% in 2020, and this proportion will rise to 18% in 2025, which will make the electricity supplier the third largest luxury market in the world after China and the United States.

With luxury brands getting electric shock, the new era has been launched without mercy.

It has been revealed that in about one hour's live broadcast, Tmall has captured 50 thousand young new consumer groups for Guerlain, breaking the single hour member recruitment record in Guerlain history, and 50% of the participants aged 18 to 25 years of age participated in the interaction, approaching 4 million people.

Wu Yue, President of LVMH group Greater China, explained the importance of the electricity supplier to luxury goods in the live broadcast of Tmall. In his view, when the Chinese electricity supplier just appeared, it was technology driven, and it was very clear, traditional and non-traditional, online and offline. But today, the development of China's electricity supplier has already made the market and consumers digitalized.

In this case, the cooperation between the brand and the product with the electric business is not a simple network channel problem, but the 360 degree for consumer service, in essence, to create a new way of communication and service.

As the luxury industry entered a slow growth period in 2014, the embrace of e-commerce has become increasingly urgent.

According to the Wall Street Journal reported in June this year, suffer from the decline of performance and the news of Shimonoseki store and other news, luxury brands repressing the Chinese market have accelerated the embrace of the three party platforms such as Tmall. The most radical luxury brand Burberry in the digital field even predicted that the income from the electronic business platform in the next 3 years will account for 1/3 of the company's total revenue.

Last month, Italy luxury group Prada SPA released its financial data in the first half of fiscal year 2016. The chairman of Carlo Mazzi said in an analyst conference call that the company will continue to push forward the development of e-commerce business, reduce advertising expenses of traditional media, and invest these funds into the data media.

He said that the group will launch an e-commerce platform in all major markets within two years, and the mainland and Hongkong and Singapore will be the first countries and regions to launch.

Once the news was released, the stock price of Prada group rose 15%.

In the past one or two years, Western luxury group and high-end brands have adjusted their respective Chinese market strategies, and Tmall has always been the preferred e-commerce platform because of the absolute dominance of market stations.

According to official disclosure, Tmall has ushered in many high-end luxury brands such as Burberry, Estee Lauder, Ferragamo, Jaguar Land Rover, Martha Lahti and many other European and American luxury high-end brands, including Y-3, Clot and other top brands, covering clothing, luggage, cosmetics, cars and other popular consumer products.

In the same period, the sale of the attractive investment of Ali investment includes 3000 authorized high-end cards, such as Dolce&Gabbana and Trussardi.

When asked why Guerlain's exclusive luxury brand was exclusively Tmall, Wu Yue, President of LVMH group Greater China, said: fashion brands must be integrated with young and fashionable consumers.

It is reported that the live broadcast of Guerlain Tmall has gained nearly 4 million interactions in one hour, 5 million new fans, and 18~25 years old users account for more than 50%.

The average age of Guerlain cosmetics is 30 years old, and the average age of consumers is 33.

Alibaba platform 434 million young consumers are the most valued luxury group.

It is noteworthy that Wu Yue also expressed that the LVMH group embraced the electricity supplier not only for the sales volume but also for the brand operation.

As a global brand operating position, Tmall provides platforms and innovative marketing tools to enable luxury goods to display their brand tonality and reach their target audience directly.

Apart from LVMH, Tmall has long regarded Tmall as a luxury brand in the long term strategic partnership of the Chinese market. Recently, it has launched a potential target consumer activity.

Through data analysis, it is found that Ali APASS members and Tmall T4 members who are eligible for online shopping "black gold card" are significantly more powerful than ordinary members in showing Burberry's purchasing power and loyalty, which are generally 18-35 years old.

The effectiveness of digital interaction with consumers determines the future of luxury goods.

Luca solca, a luxury analyst from Paris bank, said that luxury brands in China need a strong third party platform to support them if they want to enter the field of Internet sales. Tmall is a professional platform in this field. It is expected that luxury brands will enter Tmall's three party platform for sale in the coming years.

Some analysts say that LVMH now sells beauty products on Tmall platform. It is foreseeable that more luxury brands such as clothing, leather products, wine, watch and jewellery will enter the Chinese market from the Internet.

Only LVMH group, which owns Louis Vuitton, Givenchy, Fendi, Dior, Moet and Chandon, Hennessy and so on, has covered the above categories. Besides the beauty cosmetics, the main selling camp of fashion leather products is also in the Asian market.

For the future positioning, Burberry has publicly stated that it will shift its target to younger consumer groups, and this goal will be achieved through digitalization and consumer interaction.