Accelerate The Expansion Of The Online Market Prada'S Three Largest Brand 618 Settled In Jingdong

Prada has become increasingly compact in the Chinese market.

According to the fashion business bulletin, last Thursday night's Prada 2020 spring and summer men's wear Shanghai great scholar just came to a halt. Last Friday, Jingdong announced that it had reached a cooperation with Prada group. Its three brands Prada, Miu Miu and Car Shoe were officially settled in Jingdong 618, and there were 2019 new products in autumn and winter.

Previously, Prada and MiuMiu only opened a brand official website in China.

Purchasing and Hai Tao are the main ways of contacting consumers on the Chinese line. However, because of the opaque prices and the rampant fakes, such sales methods have a greater negative impact on the brand image.

Patrizio Bertelli, chief executive of Prada group, has said that he is not worried about the future performance of the Chinese market, but believes that the group needs to enhance its control over the market.

After detailed analysis of the wholesale channel structure, the group's board of directors announced in May this year that it began to restructure its independent partner network, of which China is the strategic focus of the reorganization plan.

Jingdong 618, after 16 years of development, has become one of the consumers' most anticipated shopping festivals every year.

It is reported that this year's Jingdong 618 will be the largest in history. More than 90% of the core brands will release millions of new products during the period, and create a full channel consumer experience under the joint million line stores. The 618 marketing campaign led by Jingdong will cover 750 million consumers, which is obviously a huge flow pool for Prada.

Speaking of this cooperation, Chiang Ke, President of the International Business Department of Jingdong fashion home platform business group, said that the great potential of the high-end consumer market in mainland China is the key to attracting many luxury brands to enter China, and Jingdong has built a mature platform for them to trust.

According to the fashion business express, since April this year, an average luxury brand has entered the Jingdong every week.

At this point, almost 90% of the top luxury brands have been "electric shock" in China, sniffing the market trend change, have been worried that damage to "scarcity" luxury brands in recent years began to change the attitude of China's e-commerce platform, compared with the establishment of a physical store, the Internet can cover a wider range of consumer groups.

Unlike the European market, China's fashion consumption is showing a younger pattern.

According to McKinsey's latest report, "China's luxury report 2019 social fission", Chinese consumers will account for 40% of global luxury consumption in 2025, and will become the main contributor to the growth of the industry in the next 6 years.

"After 80" and "90 after" take the post "65 after" and "70 after" become the main consumer, accounting for 43% and 28% of the total number of luxury buyers, respectively, contributing to the total consumption of Chinese luxury goods 79%.

However, behind the acceleration of China's spending power growth and luxury brands' entry into China, it is inseparable from the "bridge" composed by Jingdong and other e-commerce giants.

In June 2017, Jingdong announced that it had invested $400 million in the global luxury fashion shopping Farfetch, which has a better business foundation in China and is the preferred partner of 200 high-end luxury brands and more than 500 boutique boutiques.

In October of the same year, Jingdong launched the Toplife luxury platform, but the platform was merged into Farfetch China at the end of February this year. This is a better way to link Jingdong's more than 300 million active users with the more than 1000 luxury brands and boutiques covered by Farfetch in order to maximize the benefits.

Last July, Jingdong joined hands with LVMH's investment fund L Catterton Asia to inject $175 million into the domestic luxury goods business Temple library.

Jingdong's competitiveness and advantages are becoming more and more prominent. It not only enables luxury brands to more accurately touch Chinese consumers, but also links up online technology advantages and offline services to achieve a shift from shopping websites to more three-dimensional virtual stores. For the millennial generation of digital aborigines, the smooth and comfortable shopping experience of e-commerce platform is even more attractive and time saving than physical store shopping.

Thanks to the expansion of luxury business, Jingdong's net revenue rose 20.9% to 121 billion 100 million yuan in the first quarter of March 31st, and net profit rose 387% to 7 billion 300 million yuan over the same period.

In the 12 months ending the end of the reporting period, the total number of active customers in Jingdong reached 310 million 500 thousand. The number of active customers in the first quarter increased by 15% over the same period last year.

And things are bidirectional. Given that the Chinese market has been the main driving force for the growth of Prada group, Jingdong and temples may be the best way for Prada group to control China's online market.

In fiscal year 2018, sales of Prada group in the Greater China region increased 8.2% to 675 million euros, the strongest growth area.