Last November, European retailer Farfetch and e-commerce giant Alibaba announced a collaboration aimed at enhancing the visibility of premium and luxury brands in the Chinese digital market. This partnership has now come to fruition with Farfetch’s integration into Alibaba’s TMall Luxury Pavilion, providing Chinese consumers access to the wide range of brands in Farfetch’s catalog. Prior to this integration, 90% of these brands were not available on the private e-store, which already offers over 200 brands, including big names like Gucci and Hermès Beauty.
The decision to join forces with Alibaba and integrate with TMall Luxury Pavilion not only comes as a response to the increased reliance on digital platforms during the COVID-19 pandemic but also aims to promote local luxury purchases within China. The supposed halt in international flows caused by the health crisis has prompted luxury retailers to focus on domestic markets. Moreover, by establishing a strong presence in the Chinese e-commerce market, these brands can expand their reach into rapidly developing retail territories beyond major cities. This is particularly promising considering that luxury consumption in China saw a significant 48% increase in 2020.
Farfetch’s integration with TMall Luxury Pavilion serves as a strategic first step in the partnership between Alibaba and Richemont, both of which invested €300 million in Farfetch Ltd last year to support a joint expansion initiative called “Luxury New Retail”. While the Luxury Pavilion provides brands with a platform to enter the Chinese market, the aim of this alliance is to assist luxury brands in their digital transformation efforts within China.
Overall, the collaboration between Farfetch, Alibaba, and Richemont is geared towards capitalizing on the booming e-commerce industry in China and ensuring that luxury brands have a strong digital presence in the country. This move not only benefits Farfetch and its partners but also offers Chinese consumers a wider range of luxury products to choose from.
– For more information on Farfetch’s integration with Alibaba’s TMall Luxury Pavilion, please visit link 1.
– To learn more about the booming luxury consumption in China and its implications for the industry, check out link 2.
