Luxury Brands Tend to Partner with E-Commerce Platform, Traditional Market Has been Overthrown

Beijing China - October 18, 2018 —

Liberty Partnered with Secoo

British upscale heritage department store Liberty London announced its entry into Secoo, Asia’s largest premium lifestyle platform.

The 143-year-old retailer sells multiple high-end brands through its London flagship store but also markets its own Liberty London Collection of accessories, silk scarves, sleepwear, soft furnishings and stationery based on heritage prints blended with contemporary designs.

The two companies said that “through this partnership, Liberty London will synchronously offer premium and luxury bags, leather products, gifts and stationery to Secoo’s over 20 million high-end members.”

Luxury Brands’ significant moves

Fast-growing Secoo has become a go-to destination for many brands targeting upscale customers in China and last month announced that beauty retailer Feelunique would launch on the platform in Q4. Canali, Aspinal of London and Shandong Ruyi have partnered with it in recent months too.

Besides in July, it also emerged that online Chinese retail giant JD.com had partnered with LVMH-linked private equity firm L Catterton Asia for a $175 million cash injection into the business.

Luxury companies are counting on China for the lion’s share of their sales growth. Chinese consumers spent €105 billion ($121 billion) on luxury purchases last year, some 32 percent of the worldwide total, a share that’s likely to hit 40 percent by 2024, according to Boston Consulting Group.

The Development of Luxury E-Commerce

E-commerce is emerging as one of the biggest growth drivers for luxury labels initially fearful of diluting their image by selling online.

Online sales are set to make up a quarter of the luxury industry’s revenues by 2025 from just under 10 percent now, according to consultancy Bain, thanks in part to demand from young shoppers in tech-savvy markets like China.

Except Secoo, other luxury e-commerce platforms are also favoured by luxury brands. LVMH Group has opened its own e-commerce platform 24 Sèvres for over one year; British luxury e-commerce Farfetch just enlisted last month in NYSE, the stock raised double in the first day. In China, largest Internet retailer JD.com and Alibaba also attempt to make more investments in luxury e-commerce area to gain market share.

Millennials’ Consumption Trend of Luxury E-Commerce
In the newest report of Deloitte “Global Powers of Luxury Goods – Shaping the future of the luxury industry”, the clear strategy winner is Gucci. The Italian house’s e-commerce sales rose by 86 percent in 2017, with millennials accounting for about 50 percent of revenue. Total Gucci brand sales increased by 42 percent, up to 6.2 billion euros.

As a consequence, luxury brands have been forced to adapt if they want to survive, especially as the purchasing power of Millennials continues to increase. There are clearly many factors working against them, but the luxury brands which have seen recent success have shown abilities to cater to Millennials and not remain stagnant.

For more information, please visit: https://www.libertylondon.com/

Contact Info:
Name: Cosmos Adeline
Email: Send Email
Organization: Liberty
Address: Chaoyang District, Beijing
Phone: +86 177 3920 2940
Website: https://www.libertylondon.com/%20

Release ID: 426712