A New Gucci Tmall Store Alongside Alibaba Targets Chinese Consumers
Jana Pijak — January 11, 2021 — Business
References: ft
The first ever Gucci Tmall store was launched virtually in China on December 21st, alongside e-commerce giant Alibaba. In addition to a high-end e-commerce offering, Gucci will also launch a second e-retail beauty outlet in February in partnership with US-based company Coty.
Responding to a post-COVID boom in luxury sales -- a result of China's success in controlling the spread of coronavirus and its economic recovery -- Gucci is hoping to engage a growing online shopping market, described as "the most dynamic growth engine for Chinese luxury spending."
After hesitating to work with discount e-commerce platforms in the past due to instances of counterfeit inventory, Gucci is changing its retail strategy with a more pragmatic marketing approach, one that targets Chinese luxury consumers more organically and locally.
Image Credit: Bloomberg, Financial Times
Responding to a post-COVID boom in luxury sales -- a result of China's success in controlling the spread of coronavirus and its economic recovery -- Gucci is hoping to engage a growing online shopping market, described as "the most dynamic growth engine for Chinese luxury spending."
After hesitating to work with discount e-commerce platforms in the past due to instances of counterfeit inventory, Gucci is changing its retail strategy with a more pragmatic marketing approach, one that targets Chinese luxury consumers more organically and locally.
Image Credit: Bloomberg, Financial Times
Trend Themes
1. Luxury E-commerce - The luxury industry should invest in E-commerce platforms to attract the growing online shopping market following the COVID-19 pandemic.
2. Sustainable Luxury - Luxury brands can enhance their brand value and appeal to eco-conscious customers by incorporating sustainable practices in the production process.
3. Localized Luxury Marketing - Luxury brands can target Chinese luxury consumers more organically and locally by utilizing more effective and localized marketing strategies.
Industry Implications
1. Fashion Industry - The fashion industry should invest in E-commerce platforms and develop more sustainable production processes to stay relevant and appeal to eco-conscious customers.
2. Beauty Industry - The beauty industry can attract more customers by partnering with luxury retailers and incorporating sustainable practices in their production process.
3. Luxury Retail Industry - The luxury retail industry has an opportunity to expand its customer base by utilizing more effective and localized marketing strategies to target Chinese luxury consumers.
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