Tmall'S Best Springboard For SMCP Expansion In China Market

According to the world clothing and shoe net, France was bought by Chinese buyers.

group

Tmall is regarded as the best springboard for further expansion of the Chinese market.

SMCP group was purchased by Shandong Ruyi group for 1 billion 300 million euros last year, benefiting from the minimalist French style and high cost performance. Its Sandro, Maje and Claudie Pierlot are three.

Deeply loved by Chinese consumers.

In order to better tap the potential of the Chinese market, Sandro, Maje and Claudie Pierlot have entered Tmall's flagship store since last year.

According to SMCP Group Asia Pacific CEO St e phane Ledru, with the support of Tmall big data, three brands joined Tmall quickly and gained a large number of consumers, stimulating SMCP Group sales in the first half of last year surged by 104%.

Although Sandro and Maje are the core brands of SMCP group, the smaller Claudie Pierlot is the fastest growing brand in the past three years, with a compound annual growth rate of 30%. Last year, sales exceeded 100 million euros, accounting for 16% of the group's total sales.

It is reported that Claudie Pierlot has accelerated the expansion process in Korea, Hongkong and Mainland China in the past year. The brand general manager Isabelle Allouch emphasized that China will be one of the areas where the brand will develop in the future.

After tasting the sweetness of Tmall, Sandro Men and Claudie Pierlot first appeared in the 2017 Tmall double 11 Fashion Festival in November this year, and got a response beyond expectations.

It is reported that SMCP group plans to hold more activities next year's double 11 Shopping Festival, and will continue to carry out strategic cooperation with Tmall in the future.

St e phane Ledru emphasizes that China is always a key market for SMCP both now and in the future. In the future, it plans to further expand the retail network and visibility of the brand in the Chinese market in order to attract more Chinese consumers.

It is noteworthy that, with the change of Chinese consumers' shopping behavior relying on the number of monthly active users of Tmall over 500 million, Tmall has become the most convenient and effective way for all major brands to expand their business in the Asia Pacific region. More and more luxury brands are choosing to join Tmall mall.

According to statistics, as of March 2017, 75% of the world's most valuable consumer brands released by Forbes were stationed in Tmall.

Since this year, Tmall has set up the five major brands of LVMH group, including wine, spirits, fashion leather, perfume, cosmetics, watches and jewellery and retail, and luxury brands such as upper and lower, Tod's, HOGAN and so on.

In August 1st, Tmall luxury virtual APP Luxury Pavilion was formally launched. This is the world's first virtual App customized for luxury brands, enabling Tmall's luxury brands to be targeted to display and touch up high-end users of Tmall 500 million users.

Tmall plans to build the App into the world's largest brand self catering luxury online platform.

In an interview with reporters, Meng Gu, deputy general manager of Tmall clothing, said that in the early days of online shopping, consumers generally bought products that could not be bought under the line through e-business, such as smaller brands or cheaper products, but as Chinese consumers gradually became dependent on online shopping and became accustomed to them, the price of products was no longer the first consideration for their online shopping, which laid a good foundation for luxury brands and light luxury brands to enter Tmall.

She stressed that from the platform value, whether Tmall or Taobao, has been following the development of China's fashion apparel industry, so there is a large number of mature online shopping costumes consumers.

From the consumer perspective, Ali big data provides hundreds of thousands of consumers with a shopping experience of 1000 faces, and continuous personalized content output and highly interactive participation form is the best tool for Tmall to help cooperative brands attract more target consumers.

When it comes to the performance of Sandro, Maje and Claudie Pierlot after entering Tmall, Meng Gu admits that although the three brands have harvested a large number of fans and the number of specific users has been increasing, the users in China are not big enough to know the names of these brands, so Tmall will continue to cooperate with SMCP brand to help them attract more new consumers, not just to consume some existing Tmall users.

Due to the discrepancy between the consumer portrait of luxury goods and the shopping decisions of consumer dress groups of ordinary women, Tmall thinks that for Sandro, Maje and Claudie Pierlot, it is more important to enhance the visibility by using short video and KOL marketing methods, so as to impress more potential consumers.

In view of the ideal results achieved by Sandro and Maje in Tmall mall this year, Sandro and Maje also launched the official website and official electricity supplier for the mainland market in China this year.

Data show that from 2011 to 2020, the number of middle-class families in the mainland of China will increase from 33 million to 85 million, and these consumers will have the potential to become the new target consumers of SMCP group.

In order to better help its brands to achieve globalization, SMCP Group officially raised 127 million euros in Paris stock exchange in October 20th this year. It is the second largest IPO in Paris stock market this year in October 20th.

After completion of the financing, Shandong Ruyi controlling stake will be reduced to 51%. Sandro founder and art director Evelyne Ch e trite and Maje's founder and art director Judith Milgrom, respectively, hold 2.2% and 2% of the shares.

In the third quarter ended September 30th, group sales surged 17.7% to 218 million euros, and 20% by fixed exchange rate.

During the period, Sandro sales increased by 26% over the same period last year, while Maje sales increased by 6%, of which Claudie Pierlot sales increased the most, with 29%.

As the three brands of Sandro, Maje and Claudie continuously expand their business in China, during the reporting period, the group's sales in the Asia Pacific region, including the Chinese market, surged by 26%, while sales in EMEA, America and France increased by 27%, 3% and 1% respectively.

It is reported that accessories will be the core business of SMCP group, thanks to Maje's new shoe and leather products series, sales of group accessories department in fiscal year 2016 surged 41%.

In addition, the group's brand Maje and Sandro have signed a six year licensing agreement with the eyewear manufacturer distributor Mondottica to plan to enter the field of luxury glasses.

Apart from glasses, accessories and clothing including handbags and shoes will be the focus of brand development in the near future.

Daniel Lalonde, chairman and chief executive of SMCP, has predicted that the group's total sales will enter the euro 1 billion club in 2019.

However, as the market competition becomes more and more intense, whether the brand of SMCP group can accurately lock the target consumers and maintain freshness will be a great challenge.

A few days ago, the reporter discussed the development strategy and objectives of SMCP group in the Chinese market and the new retail cooperation with Tmall, and discussed in detail with SMCP CEO St phane Ledru and Tmall clothing deputy general manager Meng Gu.

Reporter: Sandro and Maje officially entered Tmall mall last year. Can you share the advantages of online revenue growth data and Tmall's accurate data marketing for brands?

St e phane Ledru: online platform is an important channel to contact Chinese customers.

Sandro and Maje's entry into Tmall mall helps brands establish relevant customer groups and expand brand networks.

Reporter: Tmall flagship store is not only a sales channel for SMCP group, but also a carrier of brand communication, and links with Chinese consumers. What kind of attempt will be made in new retail?

St e phane Ledru: our digital strategy is the key to contact with Chinese customers.

The first step is to enter Tmall mall, the next step is to provide full channel services. Tmall has given the brand important help in the global marketing, so that the brand can digitize its customers' assets and make the brand's new retail strategy more perfect.

{page_break}

Reporter: according to the relevant data, China's regional sales account for 10% of the total sales of the group. Can we disclose the group's development plans and targets for the Chinese market after Shandong's Ruyi acquisition?

St e phane Ledru: in the current and future years, China is also a key market for SMCP.

Our brands are also popular in the world and the Chinese market.

Our goal is, of course, to expand the brand network, enhance visibility, and continue to attract Chinese customers.

We are satisfied with the achievements this year in Tmall. Next year, we will have corresponding planning and upgrading goals.

The picture shows SMCP Group Asia Pacific CEO St e phane Ledru.

Reporter: it is reported that SMCP group plans to add glasses Department. Will there be any new category in the future?

St e phane Ledru: accessories are the main business of SMCP. We are committed to producing leather products, including bags and shoes.

We will also launch the first franchise glasses series of Sandro and Maje.

These accessories and clothing series are our short-term priorities.

Reporter: what is the layout of SMCP group's brand in China? Is the 100 shop the initial target?

In St phane Ledru:2017, we expanded our brand network in mainland China and other major regions.

The Paris fashion style of Sandro, Maje and Claudie Pierlot has caused the co production of Chinese customers, so they are very popular in the mainland of China. So we believe that brands still have much room for growth in the mainland of China.

Reporter: Although the brand clothing of SMCP group is very popular with Chinese consumers, is it also facing the price challenge as a medium and high-end fashion brand priced around 200 euros? How will you improve the competition threshold?

The price of St e phane Ledru:Sandro, Maje and Claudie Pierlot is competitive and fashionable.

Our brand combines luxury and fashion. Every brand and series has luxurious designs, and the trend products of special stores will also be updated regularly.

In addition, specialized shops will provide customers with a good shopping experience, while providing personalized service and modeling suggestions.

Reporter: the most convenient and fast access for light luxury and luxury brands to enter the Chinese market is Tmall. Do you agree? Will SMCP and Tmall cooperate further in the future?

St e phane Ledru: Tmall has the largest number of online users, so entering Tmall is the most convenient and effective way to expand the e-commerce business in the Asia Pacific region.

We hope to enhance the brand awareness by making good use of the advantages of Tmall. We and Tmall will continue to carry out strategic cooperation and develop a customer-oriented retail strategy.

We have just participated in the Tmall 2017 11 global trend pageant, displaying the brand personality and improving the popularity of Sandro Men and Claudie Pierlot.

At the same time, we plan to hold more activities in double 11 sessions next year.

Reporter: now more and more luxury brands and light luxury brands choose to enter Tmall. What do you think is the reason behind it?

Meng Gu: I think the first big background is the change of consumer shopping behavior. From online shopping consumers and women's clothing consumers, it will be divided into several stages.

In the early days of online shopping, consumers generally buy products that can not be bought under the line through electronic commerce, such as smaller brands or cheaper products. But with the continuous development of China's network, e-commerce and technology, more and more consumers rely on the convenience and habit of online shopping. The price of their products is no longer the first consideration for their online shopping. This has laid a good foundation for luxury brands and light luxury brands to enter Tmall.

In this context, it is not only luxury brands and light luxury brands, all brands need to think about how to make online business better.

Although luxury brands and light luxury brands are starting to pay attention to the late business hours, when they are determined, Tmall will be the first choice for them to test the Chinese electricity market.

From the platform value, whether Tmall or Taobao, has been following the development of Chinese fashion apparel industry, so there is a large number of mature online shopping costumes consumers.

This batch of users who grew up with Tmall has become the main force of current consumption, and has a certain ability to consume. Therefore, Tmall's SMCP brand has harvested many mature consumers.

Although many brands do not enter Tmall, more and more luxury and luxury brands have seen this trend.

{page_break}

Reporter: foreign brands will pay more attention to the online channel of official website. But Chinese consumers have no habit of going to the official website. Most of them are buying on other electronic business platforms. Do you think this is the reason why luxury brands and light luxury brands are more willing to enter Tmall?

Meng Gu: it can be said that it is one of the reasons, but in fact, many brands have different ideas. Some brands will find it better to directly open their own official website. Some brands also have their own official website and Tmall.

In our past cooperation cases, the existence of official website is more like an information distribution platform for the brand. The real sale is in Tmall flagship store.

By entering Tmall, brands can generate more contact with consumers.

In fact, Chinese consumers do not use the habit of search engine shopping. In the mobile Internet era, the official website has to attract consumers more difficult, or consumers need to download a app before they can shop. Such a complicated program has lost the greatest advantage of convenient electricity providers.

Reporter: can you describe the user portrait of Tmall's luxury clothing consumer group? Can you disclose some relevant data? For example, the group's per capita consumption and preferences in light luxury products?

Meng Gu: with more and more luxury brands and light luxury brands entering, we have a clearer user portrait of Tmall's luxury clothing consumer group. The degree is mainly undergraduate and postgraduate, with age mainly from 26 to 30 years old.

From a professional perspective, most of them are office white-collar workers and people engaged in the technology industry. They experience buying cars and luxury goods in Tmall.

In fact, before the arrival of luxury brands and light luxury brands, these users already exist on the Tmall platform, but before buying more cosmetics and lifestyle products. When luxury and light luxury clothing brands are settled, they will infiltrate at a very fast speed, and the group generally has a high degree of awareness of the brand.

Therefore, some brands that appear to be very small in China can quickly attract consumers after entering Tmall.

Reporter: it is understood that Tmall will help the light luxury brand to do better marketing through a new promotion tool. Can you describe it in detail?

Meng Gu: in fact, for luxury brands and light luxury brands, precision marketing is very important.

We usually divide the relationship between users and brands into four stages, from awareness to interest, to purchase and then to repeat purchase.

On this basis, Tmall can provide more accurate suggestions for the brands to be settled, including what tags to use and the contents for different users.

This year, Tmall's biggest progress is to create 1.5 open luxury platform Luxury Pavilion for its corresponding brands and consumers with its own big data.

The platform aims to showcase Tmall's luxury brand products to consumers with a certain spending power and brand awareness.

The advantage of Luxury Pavilion compared with other independent luxury electric business app is that it has solved the complicated problem of Tmall platform environment without affecting the contact between luxury brands and target consumers.

For example, our cooperation with the luxury brand Loewe on Valentine's day this year has provided an ideal luxury business environment for Loewe. In addition, we have made a precise exposure according to the user's previous accumulated behavior, so that Loewe can grasp the target consumers to the maximum.

LVMH is finally selling handbags at Tmall! The first is LOEWE.

Reporter: after proposing the new retail business, Tmall is building its own social attributes, including content push and AR interactive games, besides helping brand sales. How will these changes affect the luxury brand?

Meng Gu: Although there are not many stores under the luxury brand, but as mentioned before, precision marketing is very important to them, so the core of new retail is actually to digitize passengers and consumers.

After digitalization, the biggest benefit of the brand is the promotion of the lifetime value of consumers. For example, consumers may just browse a brand product online. When a brand is digitalized, the chance of consumers to contact the brand becomes more, and the rate of becoming a loyal consumer will increase.

According to statistics, there are more than 50 clothing brands co operating with Tmall this year. As the luxury target consumer group itself is relatively small, the new retail offer is more meaningful for luxury brands.

Reporter: logistics has become the key point for every big business platform to seek breakthroughs. Will Tmall launch its exclusive delivery service for light luxury brands and luxury brands?

Meng Gu: Yes, we are already preparing for related matters, but let more consumers purchase luxury goods online need a three-dimensional solution, for example, the expression of front-end luxury to users, the structure of goods, of course, including after-sales service, not just logistics, but also the maintenance of goods to lifelong services and so on.

All this is what Tmall is doing.

Reporter: how will Tmall take advantage of the new retail with Sandro, Maje and Claudie Pierlot and other light luxury clothing brands to further cooperate to meet the changing needs of consumers?

Meng Gu: in fact, Sandro, Maje and Claudie Pierlot have just harvested Tmall fans who have already recognized these brands, and the number of specific users is growing.

In fact, Tmall has different ratings for different brands. For Sandro and Maje, the user circles who know the brand names are not big enough, so Tmall will continue to cooperate with SMCP brand to help them attract more new consumers, not just to consume some existing Tmall users.

In addition, the consumer portrait of luxury goods is different from that of ordinary consumer dress groups.

The most important factor that consumers make when making shopping decisions is product design, sensitivity to the product itself, and the first factor that affects female luxury consumers' shopping decisions is brand.

So for Sandro, Maje and Claudie Pierlot, it is more important to enhance the visibility by using short video and KOL marketing methods, so as to impress potential consumers.

For other luxury brands that already have a certain reputation in China, we will suggest that they launch some limited products with stars to further enhance the brand's freshness.

All in all, luxury brands and business hugs are a matter of time, whether Tmall or luxury brands are still on the road.

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