Jingdong Will Set Up Luxury Online Shopping Platform To Help Luxury Electric Business

According to the world clothing shoes and hat network, the United States August 14th local time, the Jingdong published the 2017 second quarter report.

Jingdong's net income in the quarter was 93 billion 200 million yuan (US $13 billion 700 million), an increase of 43.6% over the same period last year, and net profit of 976 million 500 thousand yuan (US $144 million 100 thousand).

What concerns the industry is that Liu Qiangdong announced the opening of his financial results.

Although the plan for online shopping platform has not given further details, the Wall Street journal commented that

The move will intensify competition and compete with Alibaba, a bigger rival, for high-end consumers in China.

Prepared Jingdong

Jingdong announced the creation of luxury online shopping platform, not without warning.

At the beginning of this year, Jingdong moved fashion business from its original membership.

Separate from the home business department and set up a separate fashion department, laying the foundation for strong luxury from the organizational structure.

During the period of 6 / 18, Jingdong launched the service of "Jing Zun Da". The courier brother no longer wore T-shirt, helmet, sweaty and dark skin, but drove electric cars, suits, and white gloves to deliver goods.

It can be said that the service has already delivered the door to the last link of logistics for the distribution of luxury goods.

Then, in June 22nd, Jingdong announced the establishment of a strategic partnership with the shopping platform Farfetch, which collects more than 700 top buyer stores and brand partners in the world, and has many grocery stores that can not or will not enter the department store, as well as many niche designer brand products.

Jingdong invested $397 million in Farfetch to become one of its largest shareholders. Liu Qiangdong has also become a member of Farfetch's board of directors.

And one of the goals of this cooperation is to build a national luxury online shopping platform.

Jingdong wants to be a luxury business platform.

Although Jingdong does not compete with Ali in terms of trading scale, it has unique advantages in the luxury industry.

In April this year, Jingdong apparel officially became an official member of the AAFA (American clothing and Footwear Association), while rival aliif was not a member, but was also included in the "notorious market" list by AAFA for two times because of fakes. This made Jingdong reputation better than Ali.

After all, the luxury industry is a supplier led format. The trust and favor of the brand is an intangible asset for Jingdong.

Zhang Zetian as honorary director of Jingdong charity foundation, Jingdong attended AAFA activities.

But Ali also began to pform, in the "Taobao mode" and luxury goods industry can not be coordinated under the contradiction of the choice of "detour."

In early August this year, Ali launched a luxury Channel Luxury Pavilion, Burberry, Hugo Boss, La Mer and Martha Lahti, including 17 luxury brands have products on the channel sales.

Unlike other channels, Luxury Pavilion is not open to all users, but is based on users' luxury purchase records.

Luxury brands: enter the business platform, or self built e-commerce business?

When overseas luxury brands enter China, they are faced with the retail pattern under the tide of electricity supplier.

Electronic commerce is a must, but in what way to open up e-commerce channels, how to allocate resources between the e-commerce platform and self built e-commerce business, which has been testing the innovative adaptability of luxury brands to the Chinese market.

E-commerce will help luxury brands to take the Chinese market.

According to McKinsey's report, although online shopping is an important feature of Chinese consumers, only 7% of China's luxury goods sales come from online official channels. It is estimated that only 16% of the wealthy customers will increase online luxury spending in 2017.

Obviously, online luxury sales are hard to pick up by relying on the official electricity supplier and the existing e-commerce platform.

To break through this bottleneck, we must jump out of a blind alley between the two.

The breakthrough point may be the new business platform that has been innovated by new retail.

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How can luxury goods be electronic?

For example, Taobao and Tmall seem to have changed little in the eyes of consumers.

But in fact, content production has changed the format of the electricity supplier.

The most powerful evidence is that micro-blog, the country's largest producer of content, has become Taobao's biggest traffic owner, and the content of many fashion bloggers and net red fans lets fans watch and buy.

No interactive and disseminated commodity display pages are out of date. Luxury brands are content production.

"In China, bloggers have filled the gaps in the Internet and are far ahead of the action of luxury brands and fashion magazines."

A luxury analyst at Paris Bank Securities Department concluded.

On its ten largest fashion blogger list in China, the third ranked "Mr. Bao" claims to have 3 million fans in Sina micro-blog and chat and e-commerce platform WeChat. According to FT reports, this year, he sold 80 of the Givenchy limited edition pink Horizon handbags by WeChat within one day, creating a sales of 170 thousand US dollars.

Fans of fashion bloggers and volumes are amazing.

In addition to content, how to achieve interaction between online and offline to promote pformation is another way to play the luxury brand.

For example, with the help of the highly selective channels on the electronic business platform, we can increase the exposure of some single products, or get the accurate information of "1000 faces and thousands of faces" from the flagship store of the electronic business platform, thus promoting the sale of single products and precision marketing under the line.

Brand can also create more content through a series of offline activities, with search and sales on the line.

Although the electricity supplier has already been a top priority for the luxury market to win the Chinese market, the electricity supplier itself is not the purpose, brand influence and sales volume are the only ones.

More interesting reports, please pay attention to the world clothing shoes and hats net.