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But while Vuitton has stores in 20 Chinese cities, it is relying like rivals on online sales to reach clients beyond that base. “A third of potential buyers are in cities where there are no luxury stores. Their only access to products is e-commerce,” said Sebastien Badault, Alibaba’s managing director for France. The group says it can give luxury brands visibility and access to those areas, and also crunch data from its more than 600 million online shopping clients to help them identify pockets of demand rare cufflinks uk sale.
LVMH did not comment on what it would take for Vuitton to join forces with either of the Chinese players. The two offer some subtly different services, with JD also handling inventories and storage for those who want it, or offering to ease brands’ set-up within WeChat, a platform with a billion users. The sites offer to share client data and take commissions per sale, which at Alibaba’s Luxury Pavilion sit at up to 5 percent, Badault said. That is in line with the broader online shopping sector in China, but lower than the 12-15 percent average on U.S. or European equivalents, he added. JD declined to give details rare cufflinks uk sale.
Other LVMH brands have already taken the plunge, including several cosmetics labels such as Benefit, which retails on Tmall. Upscale fur house Fendi has experimented with a pop-up store on JD’s Toplife – a method used by the group to lure brands in. “We’re open to doing that because we know it’s an education process,” Ding said, adding that JD had constant exchanges even with the reticent brands like Vuitton, Hermes and Gucci rare cufflinks uk sale. “We are invited by them to give lectures, to share our findings and experience.”..
Hermes has already signaled it could cave eventually – a major departure for a brand that also only sells in its own networks. Gucci has made its red lines clear, demanding more of a crackdown on fake luxury goods circulating on the likes of Tmall rare cufflinks uk sale. JD and Alibaba will still have to persuade brands that their platforms can deliver. They aim to eventually reach a universe of 200 to 250 luxury labels, up from the 80 Toplife expects to have by year end or the 75 Pavilion now boasts. Moncler, which launched on Pavilion in late September, said in October it was happy with the project, though the impact on sales volumes was “not yet” material..
But luxury players are also increasingly open about their struggle to break China’s online market alone. “Our business is on fire and when I look at the e-commerce that we do (in China) it’s basically peanuts,” Fabrizio Cardinali, chief operating officer at Italy’s independent Dolce & Gabbana, told a Financial Times Business of Luxury conference earlier this year. “We need to find a way to break through, and it’s not just for us, it’s for everybody.” rare cufflinks uk sale.