A New Online Strategy For Luxury Goods Industry

Spring Festival, Valentine's day and spring new year are supposed to be the prime brands of fashion luxury brands. But a sudden outbreak in 2020 has caused a huge impact on the offline retail industry. Finding a new path to touch consumers has become the top priority for brand businesses. They are beginning to explore new digital models and rethink the layout of online businesses.

Reporters found that the recent Jingdong in the protection of people's livelihood and the distribution of medical emergency supplies received a lot of praise in the field of fashion luxury products. In February 14th, the US leisure leadership brand Tommy Hilfiger landed in London Fashion Week, the joint Jingdong opened the spring 2020 Tommy * Lewis joint series series pre-sale, allowing consumers to stay away from home to buy the same show. In March 2nd, Italy fashion brand MSGM entered Jingdong with "Jingdong self + official authorization" mode, and through the wholesale self catering supply chain system, it also guaranteed consumers' quality shopping experience during the epidemic. In March 5th, the world's first luxury leather family Delvaux officially opened its business trip. The first official online flagship store opened in Jingdong.

Jingdong's recent consumption figures also show some noteworthy phenomena: during the Lantern Festival to Valentine's day this year, the number of orders from other places increased by 125% over the previous year, and the volume of orders for gifts increased by 146.7%. The sales volume of luxury goods increased significantly, and the sales of high-end cosmetics increased by 73.91% over the same period.

Merchants who have settled in Jingdong said: "thanks to Jingdong's cooperation in the layout of online business, it has enhanced the overall risk resisting ability of the brand, and laid an important foundation for further exploration of online and offline integration."

A thorough exploration of Jingdong's "very" story in cooperation with many brands during the special period may bring some reference value to the luxury industry in the post epidemic era.

　　 "Very" sale: the absence of fashion week can also synchronize the show with damp products.

McKinsey's China luxury report 2019 points out that Chinese young people have bought the global 1/3 luxury goods, and 90 percent are becoming the purchasing power of luxury goods. Research shows that they prefer fashion trend brands to search for the latest trend in social media.

However, affected by the epidemic, Chinese stars, KOL, buyers and other large areas absent from the fashion week this season, many brands have to consider how to expand product exposure and marketing opportunities through more digital mode. In February 14th, the US leisure leadership brand Tommy Hilfiger debuted in London Fashion week. It opened the 2020 spring Tommy * Lewis joint series series pre-sale in conjunction with Jingdong. Consumers can stay indoors and synchronize with the Get show.

It is reported that this mode has also been used in cooperation between Jingdong fashion and the Asian fashion brand CLOT. At that time, the white limited T-shirt, which was specially introduced by CLOT, represented the strength and honor of dragons and stripes, created more than 3500 pieces of bright eye sales in 19 hours after it was put on the Jingdong platform.

Jingdong's AR technology also helps at this time, allowing consumers to feel the merchandise 360 degrees across the screen. Camille Fournet, a French leather brand, once co operated with Jingdong, through the function of AR interaction, extended the exclusive service of brand exclusive to online. Consumers can click online to pick their favorite materials and colors. In this way, everyone can become a craftsman and create unique customized objects.

Compared with the chill of the fashion week, the brand business was more distressed during the epidemic. Most of the stores in the domestic line went out of business, and the store continued to open shop in Yemen.

How to help brand businesses break through? Jingdong fashion home team and long term cooperative brand businessmen have come to think of the flexible and lightweight supernova plan. The supernova program is part of the Jingdong social networking business. It was originally a Jingdong based social networking solution based on small programs. It was built on the small program matrix formed by WeChat. The larger feature is that it can complete the order increment of the departure scene through the fission of private domain traffic.

Among them, the supernova cloud store is a solution to share fission and sales in the WeChat community by helping brands build small programs in the matrix, with the help of its store purchasing power. Data show that from February 10th to February 17th, there were 2096 stores in the fashion home industry, and the Jingdong's supernova cloud store mode was reprocessed and sold. Up to now, the order has reached nearly ten million.

Based on its own Internet capabilities and precise insight into big data, Jingdong is constantly working with brands through a series of younger marketing ideas to enable consumers to see the diversity and innovation of brands.

　　 "Very" shop: genuine guarantee, efficient delivery of a lot.

Usually, a luxury brand has to set up an official flagship store online. It needs the brand itself to form a special operation team, and it can be officially opened after a long series of preparations. During the epidemic, some brands benefited from the innovative solution of the electronic business platform, and pressed the fast forward button on the opening rhythm.

In March 2nd, the Italy fashion brand MSGM, which adopted the mode of "Jingdong self run + official authorization", launched the official flagship store in the shortest possible time, and quickly drew the distance from the consumers. The exclusive mode of Jingdong luxury products is directly signed by Jingdong and the brand, and all flagship stores are directly licensed by the brand.

At the same time, relying on the complete supply chain system of Jingdong, the store will be meticulous operation, and later through the strong logistics capacity of Jingdong, the goods will be sent to the consumers as scheduled. All goods are purchased by Jingdong luxury buyers. After brand new season series, they go abroad to pick the goods, and pass strict quality inspection when they enter the warehouse, so that consumers can get the quality of every product. It is reported that this mode has provided important support for stable sales of merchants during the epidemic period.

According to reporters, after the British fashion brand Paul Smith, luxury goods giant PRADA group stationed in Jingdong, also adopted the above mode: in May last year, the British fashion brand Paul Smith joined Jingdong in China for the first time to open the official licensed online flagship store, Paul Smith brand said, this cooperation is Paul. Smith is an important move in China's digital marketing strategy. It hopes that through Jingdong's powerful retail infrastructure services, it can bring Paul Smith's unique Classic with a twist design style to the vast number of consumers in China.

During the epidemic, transportation and logistics were blocked nationwide. However, in the "empty" Spring Festival in the streets and alleys, Jingdong courier brothers distributed 220 million pieces of consumer goods for consumers over 290 thousand tons. Many people say that Jingdong has become a symbol of warmth and reassurance.

In fact, in the case of staying indoors, consumers are more dependent on the line to meet the demand for shopping, and from the crowd to the region, online penetration has generally increased. And after the experience is guaranteed, consumers' trust in platforms and brands will also increase accordingly. From a certain point of view, if brand operators can join the Internet quality platform to do well online layout in this special period, it is likely to turn the crisis into an opportunity.

　　 "Very" on-line: opening more expectations for brands

Compared to actively embracing the younger generation of the digital generation, for the long history of luxury goods, it is not easy to take the first step of e-commerce. Their stringent standards on retail channels are bound to have more complicated considerations in the choice of partners. For example, the world's first luxury leather brand Delvaux, the world's first online flagship store, was finally selected.

"The uniqueness of Jingdong is that it can not only guarantee the true reliability of goods, but also provide solid commitment to high-end services." When it comes to why Jingdong chose to be the partner of the first online flagship store as a brand, Delvaux Global CEO Marco Probst said so. As a Belgian Royal brand with 190 years of history, "100% genuine guarantee" and "noble sense of experience" are the bottom line that can not be shaken by online retailers.

A consensus already reached by many parties is that Jingdong can rise rapidly in the short term after entering the luxury sector and win many famous brands. The core advantage lies in the "zero tolerance" of fake products.

At the same time, Jingdong continues to convey the brand's style and spirit from every detail before, during, after and after sale, so that even the distance between the two pictures in the flagship store needs to be carefully considered; after the customer orders, whether it is "Jingdong luxury" exclusive packaging, or the "Jingdong luxury" label on each commodity, and even the "Jing Zun" exclusive distribution service full of courtesy. Every detail conveys the experience that luxury brands want to bring to users. This is also very much valued by luxury brands.

According to the reporter's understanding, during the epidemic period, in order to help more fashionable luxury merchants still waiting to see the rapid layout of the online retail market, Jingdong also launched a free customized customized brand small program service. Within a week, Jingdong stores can also be directly copied to small programs to achieve multiple traffic entry transformation. The Swiss watch brand Audemars Pigeut watch has passed the first step in the field of electronic commerce through the Jingdong Kepler light mall.

From a long-term perspective, for the luxury brands that have not yet started the business trip, Jingdong platform has strong attraction in many respects besides its authentic product and its ability to convey the brand DNA completely.

In Europe and the United States, luxury consumer groups are relatively concentrated in high-income groups in high speed cities. The vertical business of the brand can be basically covered. But in China, a wider range of luxury consumer groups is dispersed in a wider area. Choosing a comprehensive electric power platform to join hands is a good way to make up for the shortage of users' contact.

According to the latest fourth quarter and full year earnings data released by Jingdong in 2019, the number of active users in 2019 has increased to 362 million. The number of new active users in the single quarter has reached a new high in the past 12 quarters. The number of new subscribers in the fourth quarter has exceeded 70% from three to six cities. There is no doubt that Jingdong's strong ability to win customers and the ability to develop the sinking market will also become a potential engine for brand expansion and a new engine of quality growth.

With the effective expansion of online channels represented by Jingdong, the new consumption mode is also fully open. In the long run, it is bound to accelerate the online layout of the brand, and let many industry executives bet on the "resilience of China's economy".