Richemont targets rich Chinese through Alibaba

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Richemont targets rich Chinese through Alibaba

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Published Date: 2018-10-29 | Source: Stephen Gunnion | Author: Stephen Gunnion

Richemont targets rich Chinese through Alibaba

The group say the partnership is aimed at providing its luxury brands enhanced access to the vast Chinese market.

Richemont is teaming up with Chinese e-commerce giant Alibaba to grow sales in the world's biggest economy. The luxury goods group is forming a global strategic partnership with Alibaba so it can get more traction for subsidiary Yoox Net-a-Porter (YNAP) in China. In June, Richemont took full control of the online business.

Under the partnership, Richemont said YNAP and Alibaba will set up a joint venture to launch two new mobile apps for YNAP's Net-a-Porter and Mr Porter brands. Alibaba will support the JV with technology infrastructure, market, payments and logistics. YNAP already distributes 950 leading luxury brands in China.

The JV will also launch Net-a-Porter and Mr Porter online stores on Alibaba's Tmall Luxury Pavilion. The Tmall Luxury Pavilion was launched last year and aims to create the same brand exclusivity and tailored shopping experience that customers shopping offline typically enjoy.

According to Alibaba, Chinese consumers are expected to account for nearly half of the global luxury market by 2025 and partnering with YNAP will help position both groups to capture more of the market. Alibaba has more than 600 million users.

Richemont's shares closed 0.4% higher at R102.97 on Friday. Alibaba's US-traded stock declined 1.2% to R142.87.





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