Why Luxury Brands Choose Tmall?

According to the world clothing shoes and hats net, about 9 months ago.

The user interface suddenly came up with a new entry - Luxury Pavilion, when no one thought it would become.

Open China's e-commerce

The key to the new gate.

Luxury Pavilion is an embedded luxury virtual APP launched by Tmall in August 1st last year. It is also the world's first customized platform for luxury brands, aiming at Tmall's 500 million best users after big data screening.

After three quarters of continuous debugging and improvement, Tmall held a brand vision meeting for Luxury Pavilion in Shanghai yesterday. The more than 70 top luxury brand executives such as Tod's, Burberry, Ralph Lauren and real time are gathered in Shanghai, sharing the first pcript of Luxury Pavilion with them, and for the first time released the comprehensive upgrade plan of Luxury Pavilion.

For the industry's question of why luxury brands choose Tmall, Tmall chose to speak with facts.

Global brand "magnet"

In fact, the reason why the 100 year old luxury brand has changed its attitude to Chinese business is still inseparable from the dramatic changes in the overall industrial environment.

From the rejection of touches to the gradual opening of flagship stores online, until the close embrace of new retail, luxury brands have gone through three steps.

Affected by global political and economic upheaval, the luxury industry, which was originally centered on physical retail channels, has been shut down by clouds and declining performance since 2015. Not only did LV shut down 20% of its stores in the Chinese market, but Patek Philippe, Boucheron and even the flagship store of Giorgio Armani, which had been in nearly 10 years, quietly left the fashionable retail Shanghai, which had been scrambling for the first time.

In the face of the slow growth of the offline stores, online seems to be a glimmer of vitality for luxury brands to continue to move forward.

Gradually, luxury brands changed their past high and cold attitude to take the initiative to embrace the electricity supplier, while sitting on the largest share of China's electricity supplier market, Tmall naturally became the preferred partner of many luxury brands.

In the three years from 2014 to 2016, only 11 luxury brands, such as Burberry, Rimowa and LA MER La Mer, were settled in Tmall, with an average of about 4 per year.

But the number doubled to 8 in 2017. Not only did the five largest departments of LVMH, the world's largest luxury group, enter, Swatch group's Tissot, Armani's Armani Jeans and Marni brands also announced that they joined Tmall's luxury matrix.

The picture shows luxury brands entering the Tmall timeline.

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Last August 9th, a week after the launch of the Luxury Pavilion, LVMH's luxury brand Loewe and Tmall luxury flash store Tmall Space co operated exclusively with the limited price of the Chinese Valentine's favorite Barcelona handbag designed for the Chinese market. This is also the first time that LVMH's core luxury brand has sold handbags on the third party e-commerce platform in China, meaning that LVMH is a comprehensive platform for Ma Yun.

For this cooperation, Loewe brand said that Loewe was very happy to cooperate with Tmall on the luxury flash mode, and chose Tanabata to be the most special festival for Chinese consumers. The exclusive sale of Tmall Tanabata handbags was recognized by Tmall. They recognized Tmall's rich experience in serving high-end consumers.

In addition, according to the latest data released by Tmall, Luxury Pavilion has been a high-end member with more than one million consumption over the past 100 thousand years, including 50 top luxury goods brands including Baccarat, Bonpoint, Givenchy, Guerlain, Hugo Boss, Hennessy, etc., all of which have already entered, covering heavy luxury to light luxury, spanning clothing, leather goods, cosmetics and watches.

In addition to the Luxury Pavilion platform, more luxury brands are also accelerating their collaboration with Tmall in the form of flagship flagship stores and virtual flash stores.

In the first quarter of 2018, Tmall has ushered in more than 10 luxury and high-end cosmetic brands such as Marni, Armani, Givenchy and YSL.

Liu Xiuyun, the general manager of Tmall fashion department, said that it was not surprising that the luxury brands began to gather in Tmall from 2017 to 2018. She said that luxury brands had their own professional mode of operation. Although they did not know what Tmall could bring to them before entering the house, they had already prepared themselves psychologically. The question is who will take the first step.

Be a luxury brand in China.

"Traditional luxury brands are difficult to cover low tier cities, but Tmall can make up for the predicament of luxury goods in the channel sinking, and through big data insight, not only can help brands enhance their service capabilities to cities that cannot be covered by stores, but also help brands to provide decision-making reference for new store siting products."

Liu Xiuyun said at the meeting.

Data show that 80% of luxury goods stores are concentrated in the top 15 cities in China's GDP. However, only 25% of the wealthy people who live in luxury goods live in these cities. The mismatch between supply and demand makes it urgent for luxury brands to embrace young consumers with online platforms such as Tmall.

According to Tmall, luxury brands that will cooperate with us this year are at the end of the year. In the eyes of luxury brands, Tmall has become a magnifying glass for their influence in China.

Liu Xiuyun stressed that luxury brands' demand for Chinese partners is not only satisfied with buying goods and doing traditional marketing communication.

In the process of communicating with luxury brands, Tmall found that luxury brands wanted more than just sales, but also the precise consumer portraits of brands in the Chinese market, how to reach young people and whether they could get through the barriers between online and offline channels.

The graph is the main data of Tmall Luxury Pavilion.

To this end, Tmall has set up a professional team to understand Luxury Retailing, aiming at creating a comprehensive and comprehensive platform for luxury brands to integrate the needs of local consumers with their own influence and market insight.

Take the luxury brand Burberry, which first entered Tmall, for example, the brand and Tmall's innovation and cooperation has been advancing.

As early as the end of 2015, the 70 stores in Burberry China joined hands with Tmall to try to integrate the whole channel, so that the online and offline stores could enjoy preferential sales at the same price.

In the autumn of 2016, "Tmall global double 11 Fashion Festival", the Burberry male model was wearing a classic raincoat and umbrella walking in the rain screen. The audience cheered and watched the live audience "chopping hands", and the first men's perfume sold in Tmall was sold out.

With the deepening of bilateral cooperation, Burberry volunteered to adjust the tonal adjustment of Tmall flagship store to the official website. Tmall Technology Department tried many ways of store pformation, and eventually made Burberry Tmall flagship store become the "second official website".

In February this year, Christopher Bailey, a creative director who worked for Burberry for 16 years, moved the last London Fashion week to Tmall.

This is also the first time in the history of Burberry over the past 160 years that the show has been put on the third party platform.

In addition to flagship stores, Tmall also offers two modes for luxury brands: brand name and flash store.

For example, the first luxury brand Loewe, who sold handbags in Tmall, not only tried Tmall Space, but also ran a brand name in Tmall, in order to convey relevant information to consumers in a timely manner.

In view of Tmall's increasingly consummate luxury business environment, Loewe has tried to test the Chinese electricity supplier market in the form of flash store in Tmall Space.

Liu Xiuyun pointed out that in Tmall, flagship stores usually require a long preparation time for luxury brands, such as 6 months of futures, orders, team building, and TP. Therefore, fans can accumulate fans through brand numbers before entering the flagship store.

The flash store is better able to meet the needs of some luxury brands to reach as many users as possible in a short time. In this cooperation mode, sales volume is a secondary goal. The ultimate goal of the brand is to make more voice to young consumers and communicate effectively.

Some analysts point out that such innovative gameplay will become the "standard" of online operation and marketing of luxury brands in the future.

Tmall has become the first platform for luxury goods.

Although Tmall, which relies on Alibaba, sits firmly in the leading position of the domestic electricity supplier industry, in recent years, it has seen a handful of competitors in this field of luxury, and even giants have openly joined hands to fight Tmall.

However, Tmall has not been in a mess.

Liu Xiuyun admitted in the interview that the market is so large that competition must exist. The player is not a family. The main problem is how to define competitors.

She once again stressed the role of Alibaba in the luxury card battle. "We are providing infrastructure, and all the leading power is in the hands of the brand itself."

Tmall also gives the luxury brand the greatest degree of freedom.

Through the Tmall platform, they can communicate directly with consumers and decide their own products, brands and value strategies.

Tmall's purpose is not to interfere with the brand DNA, but to help the brand to expand its influence and even enhance its value.

In Tmall's view, the current Chinese electricity supplier market can achieve such a small number of players, almost no.

The biggest advantage of Tmall lies in the continuous improvement of "data bank" and the more precise consumer identification system Uni ID.

According to Liu Xiuyun, Alibaba is improving the methodology and product system of global precision operation, that is, the recent promotion of "Uni Marketing global marketing".

At the end of November 2016, Alibaba officially launched the "Uni Marketing global marketing". Over the past year, many brands of many industries have participated in the co operation of global operations, and become the innovators of this marketing experiment.

At the same time, global marketing has also incorporated more ecological roles and is committed to the digital pformation of luxury goods.

Last year, Alibaba and WPP group and public lion group respectively reached a strategic partnership to promote the efficiency of digital media delivery and enhance the value of luxury brands.

Liu Xiuyun emphasized that accurate data is not what people usually think of based on past historical consumer behavior and shopping data recommendation, but by analyzing consumers' intelligence in different scenarios.

Whether it is to promote the bargaining power of supply chain changes or to integrate all links resources to improve operational efficiency, Tmall, as a platform side, has the ability to promote structural changes in the fashion system.

It is reported that Tmall's ultimate goal is to analyze and stratified the whole platform with users, so that consumers can see certain brands or fail to see certain brands.

Therefore, what Tmall does is not simply data analysis and recommendation process, but the intelligent result of business data combined with consumers' insight.

Up to now, 28 luxury brands have gained 6 million 500 thousand of the average number of consumers through global marketing. Among them, the largest increase in the number of brands has gained about 30000000 consumers. This reflects a sharp increase in consumer assets. The average growth of 45 luxury brand consumer assets has reached 64.9%.

Prior to this, Wu Yue, President of LVMH group Greater China, at Guerlain's visit to Tmall, has never conceal its praise of Tmall platform: "today, Tmall represents China, reflecting China's progress, and China's development has attracted Chinese fashion crowd, so luxury fashion brands entering Tmall is taken for granted.

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

Nowadays, with the advantage of technology, the electronic business platform has really participated in the specific operation of the fashion industry. Tmall has become the preferred platform for luxury brands to enter China.

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Luxury brand new retail year

For the future, Tmall has built more expectations for the development of luxury brands in China.

At yesterday's brand vision meeting, Tmall president Jingjie announced the comprehensive upgrading plan of Luxury Pavilion, which will build a bridge between the luxury brand and the new generation of consumers such as post-90s and 00 after three years to better serve the 100 million new middle class.

According to Tmall data, at present, the top luxury goods consumers on Tmall account for nearly 50% of the post-90s generation. Their purchasing power is not much different from that of the 70 and the post-80s. They will also buy expensive jewellery, watches and ready-made clothes.

Take Luxury Pavilion's latest online Pavilion club as an example, Tmall will provide high-end customers with priority purchase, honorable invitation and one to one exclusive customer service.

Through the interaction of luxury brands to provide limited quality purchase, offline experience and other services, to help brands achieve all channels of members to get through.

At the same time, Tmall also released the world's first luxury financial consumer plan and the global solution for luxury goods with the ant's golden dress flower, and designed three major financial services for high-end users, namely "installment free interest", "temporary raise" and "pre authorized reservation", aiming to help brands better attract and retain more potential customers.

The picture shows Ali cloud's global solution for luxury brands.

In addition, Ali Yun is planning to link the block chain to the cooperation with luxury brands, and is currently developing authentic traceability tools to further combat counterfeit products and enhance consumers' demand for genuine products.

Tmall also integrated the information of the production process, circulation process and marketing process of commodity raw materials into block chains.

Each information of the brand has its own block chain ID "ID card", with the digital signature and timestamp of the main body for consumers to query and verify.

In the future, consumers only need to find purchase orders on Luxury Pavilion. Click on "one key traceability" or directly scan the source code on products to see the corresponding block chain coding, and understand the origin of products, entry declaration number and entry declaration time.

It is noteworthy that Tmall's ambition is still expanding.

While constantly grabbing luxury brand resources, Tmall is trying to create a more comprehensive and high-end luxury ecosystem by introducing Luxury Pavilion into an online fashion magazine by introducing quality content.

It is reported that Luxury Pavilion will cooperate with the authoritative fashion magazine "Vogue dress and beauty" to launch the weekly featured theme column. At the same time, "Vogue dress and beauty" will also set up its own brand number in Tmall, and use its accumulated luxury brand resources, high-quality content editing and visual team to empower Tmall's luxury brands. This is the first attempt of Vogue dress and beauty to try to produce high quality content on the third party online channel.

With the popularity of social media at home and abroad, such as micro-blog, WeChat and Instagram, the influence of traditional media is gradually being diluted. "Vogue dress and beauty" can get more accurate data with the help of Tmall platform, increase its exposure in the younger generation of consumers, and enhance its commercial value at the same time.

At present, over the past year, more than 100 million consumers have visited, collected, purchased or purchased luxury goods in the new generation of luxury goods users who account for up to 5 of the total amount of luxury goods. They are the most potential users of luxury brands, and are also the main group targeted by Vogue apparel and beauty products.

According to internal sources, the cooperation between Tmall and Vogue clothing and beauty will have more cooperation space in the future. After the first step of brand establishment, the second step will exert force to the new retail. Through resource sharing, it will help the luxury brand to realize the commercial pformation between online and offline, and achieve a win-win situation.

As Monocle founder Tyler Br l e said earlier, the boundaries between the field of e-commerce and the editing field have been very blurred, and influential fashion media will play an important role in the pformation of luxury brand new retail.

At present, with the explosive growth of online luxury core users and potential users, Tmall is leading the international fashion discourse right from the scale, speed, number of brand coverage and the number of users.

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