Why Did PRADA Extend An Olive Branch To Jingdong?

McKinsey's 2019 China luxury report shows that in 2018, luxury consumption in China and abroad reached 770 billion yuan, accounting for 32% of the total global luxury consumption. And in this huge group of 1/3 luxury goods that have bought the world, the younger generation represented by the post-80s and post-90s has built up half of China's luxury market. Based on the prospect of China's market, more and more luxury brands are trying to build effective communication channels with young Chinese consumers in various ways.

Among them, PRADA group is the top and most traditional luxury fashion house. It is also a very demanding luxury group for retail channels. It has also made remarkable changes. In the first half of 2019, the biggest online shopping Carnival -- Jingdong 618, PRADA announced cooperation with Jingdong, with its three major brands Prada, Miu Miu and Car Shoe officially entered. Before that, Prada and Miu Miu only set up a brand official website in China. Purchasing agents and Hai Tao are the main ways of contacting consumers on the Chinese line.

What causes the PRADA, which has been conservative in the past, has finally pushed the window open. What advantage has Jingdong finally made to become the first large integrated e-commerce platform partner of PRADA in China? In October 15th, at the launch of the 2019 "11.11 Jingdong global good things Festival" held by Jingdong, Mr. Chiang Ke, President of the international business division of Jingdong fashion home platform business group, spoke for the first time to reveal the story behind PRADA in the capacity of the head of the luxury luxury buying group.

As a family business, all key decisions of PRADA require brand CEO Patrizio Berteli to confirm in person. After a long talk, a courteous visit to the accident contributed to the strategic cooperation between the two sides. Jiang recalled: "at that time, we made a special trip to Milan to visit the PRADA high level. The brand side arranged for Mr. Bertelli, the eldest son of Mrs. Prada, to receive us from Mr. Lorenzo Bertelli. Lorenzo asked in detail a lot of details about the operation and sale of luxury goods, especially for Jingdong's retail Black technology. Finally, he volunteered to cooperate directly with Jingdong.

Subsequently, Jingdong luxury team quickly received PRADA invitation to meet with Mr. CEO Bertelli worldwide for details of communication and cooperation. At the meeting, Mr. Bertelli immediately picked up the Jingdong's consumer structure and luxury goods operation rules and immediately picked up the phone to contact the factory in Tuscany to prepare exclusive items for Jingdong. All luxury goods are scheduled to be made 9 months in advance, and can be adjusted on the spot. For any luxury brand, this represents the greatest trust and respect of any brand for any retail channel. In order to live up to the brand's trust, Chiang Ke and Jingdong's luxury goods team immediately joined the preparatory work on the brand line with double focus and efficiency.

From the signing of contracts, the selection of buyers, the store design to the final line, Jingdong and PRADA only completed the whole process in just 2 months. This is unimaginable speed for top luxury brands, known for their prudence and slow decision-making.

In this way, Jingdong has become the first comprehensive Chinese e-commerce platform for PRADA cooperation by virtue of its comprehensive advantages in many aspects. During the 618 period of this year, PRADA's three brands, Prada, Miu Miu and Car Shoe authorized flagship store were synchronized on Jingdong. All the goods were supplied directly by the brand to ensure that all the goods sold to consumers were genuine licensed products, and more importantly, the products on the flagship store will be in step with the global product dynamics of the brand, synchronized with the new ones, so that Chinese consumers can really buy new luxury services at the same time without leaving home.

Seemingly unimaginable contingency is actually the result of various inevitable integration. As Jiang Ke said, "is PRADA changing the standard of choosing retail channels?" PRADA chose Jingdong as its sole integrated e-commerce platform. It is still the most reliable and conservative brand, but it is also the latest choice. "

For the 2019 "11.11 Jingdong global good things Festival", which will be opened by the curtain, Chiang Ke said: "Jingdong luxury buying group has selected a large number of new products for autumn and winter for consumers, including limited products and other products that are hard to get by other channels, so as to ensure that everyone can enjoy themselves."

Meanwhile, Jingdong's luxury home platform business group is also preparing for this year's "11.11 Jingdong global good thing Festival". More new brands and new products will be met with consumers through the Jingdong platform, and thousands of Jingdong beauty products will be promoted. Especially in the aspect of upgrading consumption experience, the Jingdong fashion home platform business group has launched 10 kinds of reassuring and buying special service products, such as heart changing, door-to-door repair, damaged package replacement, Jingdong installation, and no effect on time. It accumulates 320 categories and covers 200 thousand kinds of hot selling single quality goods.