One of the biggest fashion labels Gucci opens online stores in China in collaboration with e-commerce group Alibaba to address the post coronavirus boom in luxury spending in the country. Gucci, owned by Kering SA would be available on Alibaba’s Tmall Luxury Pavilion, where Jack Ma (Alibaba’s CEO) said that it has managed to assemble high-end luxury goods companies that were earlier doubtful of online retail.
This partnership between Gucci and Alibaba has a goal of offering more than 750 million Chinese consumers on the platform. This was to be seen as a huge opportunity to experience purchasing items from Gucci’s fashion collection.
In order to join the Tmall Luxury Pavilion, Gucci launches a deepened strategic partnership with China’s leading e-commerce platform. The famous fashion store is all set to open its first flagship store for fashion and leather good collectibles on 21st December 2020 as stated by both the companies in a joint statement on Friday. In addition to the fashion store, the brand is also launching its flagship dealing in beauty products which will open in February 2021. This deal is offering Chinese consumers exclusive access to Gucci’s full range of make-up and fragrances.
Alibaba says that launched in 2017, Tmall Luxury Pavilion is home and has been managing over 200 brands with products ranging from apparel and beauty items to watches and also luxury cars. Recent entrants include Balmain, Salvatore Ferragamo, Golden Goose, De Beers, Jaeger-LeCoultre, and IWC Schaffhausen.
During the course of recent years, Gucci has been able to build strong foundations in the digital ecosystem in a country like China where consumers shop mostly by mobiles (that is, online) than in countries like Europe or the United States.
Around 35% of luxury goods purchases are represented by Chinese customers before the occurrence of the global pandemic. However, now the percentage is expected to account for almost half of global sales of high-end, branded clothes, handbags, and jewelry by 2025, as per reports by consultancy Bain.
“Gucci has strategically invested in and cultivated a ‘digital first’ approach globally, including the establishment of a dedicated Chinese digital ecosystem over the past few years,” said Marco Bizzarri, president and CEO of Gucci. “Today’s announcement, therefore, represents the next step in this strategy as we provide our customers in China with an authorized, customized e-commerce experience on the Tmall Luxury Pavilion in partnership with Alibaba.”
Gucci has its own Chinese website, Gucci.cn, and is present on all major Chinese social media platforms, including Weibo and WeChat.