The Luxury Industry May Be The Next Battleground Of E-Commerce.

Seeking Alpha, a well-known US financial website, pointed out that in the second quarter of 2017, Jingdong passed several international

Brand cooperation has expanded the supply of its products, including Swiss luxury watch brand Zenith, Austria brand Swarovski, French luxury hair care brand Rene Furterer, and Italy luxury.

Brand Armani.

According to the world clothing and shoe net, in June 21, 2017, Jingdong spent $397 million to become a luxury item in the UK.

Major shareholder of platform Farfetch, Jingdong said it would support Farfetch, in logistics, Internet Finance and technology capabilities, as well as social media resources, including cooperation with WeChat.

In July 31, 2017, YSL, a luxury brand in France, CO operated with Farfetch to sell products on the online platform jointly established by Farfetch and Jingdong.

In August 17, 2017, Chopin, the Swiss luxury jewellery watch brand Chopard, announced that it had officially opened its own brand flagship store in Jingdong. It is worth noting that this cooperation is the first attempt of Chopard Chopin in the field of Chinese electric business.

Jingdong founder, chairman and CEO Liu Qiangdong also revealed in the two quarter of this year's earnings conference that the company will launch a luxury sales platform.

Liu Qiangdong said the luxury platform will be measured in the three quarter and is expected to be launched before the fourth quarter. The platform will not conflict with the company's previous investment mainly through cooperation with luxury brand Chinese officials.

Analysts say the strategic expansion of the luxury market has had a profound impact on the company's core e-commerce business.

Data show that China's share of potential luxury goods market is huge and growing rapidly.

In 2006, Chinese consumers bought more luxuries than any other country, accounting for more than 1/3 of global sales.

But only 7% of sales occur in mainland China, and most Chinese consumers buy personal luxury goods in the US and Europe.

(2016 global luxury personal consumption market)

To better target Chinese consumers, global luxury brands are changing their distribution channels.

In mainland China, consumers can enter the global luxury market through three channels: buying products in the US or Europe, buying abroad, and buying directly through online stores or offline stores in mainland China.

According to the financial times data, the first two channels account for 80% of the total purchases of Chinese shoppers, and the main reason for them to choose these two channels is the high tax and fees involved in the sale of luxury goods on the mainland.

According to Bain, a market analysis firm, luxury sales in mainland China will grow by 6% to 8% in 2017.

According to data from DDT (Deloitte), online retail accounts for 13.5% of China's total retail sales, far above the global average of 8.6%.

There is no doubt that China has become one of the most developed electricity supplier markets, which has also promoted the development of luxury brands in China's online market.

At this time, Jingdong is the best candidate to gain market share in the personal luxury industry.

When Chinese consumers buy luxury goods, the biggest worry is the authenticity of the products.

In April 2017, Jingdong became an accreditation member of the American Apparel and Footwear Association (AAFA).

It is reported that the United States clothing and Footwear Association (AAFA), representing more than 1000 clothing and footwear brands, and the United States Trade Representative Office jointly issued half a year or so to update a list of clothing restricted substances, its supervision is very strict, and has a very important significance for the safety development of the entire apparel industry.

During this year's Jingdong 618 Shopping Festival, as the company began offering thousands of luxuries and fashion products, the number of new female customers almost doubled.

In the past, due to various kinds of electronic products and fast delivery services, most of the people who shoped in Jingdong were male shoppers, while female shoppers preferred Alibaba.

"By adding luxury products and fashion products to product lines, Jingdong will become an increasingly popular online shopping website for female consumers, which will also change their product mix from low margin electronic products to higher margin products.

The two quarter earnings report released by Jingdong shows that the GMV of the general merchandise business of the company has surpassed the group's 3C products and is growing faster.

Analysts pointed out.

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