Mytheresa, a German luxury e-tailer, is refocusing its efforts to expand its business in China, a market known for its fierce competition in the e-commerce industry, dominated by local giants Alibaba and Douyin. By targeting Chinese shoppers, who represent the world’s third largest luxury market, Mytheresa aims to capitalize on the country’s growing demand for luxury goods. To reach this market, the company plans to utilize personal shoppers and organize in-person events.
According to Michael Kliger, CEO of Mytheresa, the company has witnessed global growth of over 20% in recent years, and expects even higher growth rates in China in the coming years. Kliger highlights that Mytheresa’s target audience in China is the “mature” luxury consumer segment. Notably, the top 3% of Mytheresa’s customers generate 35% of the company’s total sales. Therefore, the company’s strategy is not focused on attracting new luxury consumers who are making their first luxury purchase. Other global luxury e-commerce players such as Farfetch and Yoox Net-a-Porter have also ventured into the Chinese market. However, they have chosen to partner with market leader Alibaba through investment tie-ups and joint ventures.
Mytheresa initially established a local Chinese company in 2017, but progress was hindered by the Covid-19 pandemic. Nevertheless, the company took new steps to enter the Chinese market last year. Kliger appointed Steven Xu as the new Asia-Pacific president, and expanded their presence by selling on the popular Chinese e-commerce platform JD.com, in addition to their own app and website.
While Mytheresa’s focus on serving higher-end luxury consumers in China is seen as advantageous, Patrice Nordey, managing partner at innovation agency EY Fabernovel, raises concerns about international platforms meeting the expectations of Chinese consumers. The competition in the market poses a significant challenge, especially for companies shipping products from Europe into China.
In conclusion, Mytheresa is strategically targeting the Chinese luxury market by employing personal shoppers and hosting in-person events. Despite the intense competition, the company believes it can cater to the specific needs of mature luxury customers in China. With recent investments and partnerships, Mytheresa is positioning itself to achieve substantial growth in the world’s third largest luxury market.
Useful Links:
1. Mytheresa Official Website
2. JD.com – Chinese E-commerce Platform
