E-commerce has become the main battlefield for luxury goods launches, with more than 30,000 new products launched on Tmall every month

Many luxury goods New Year models have also been launched online in advance, including Yves Saint Laurent's Manhattan series shoulder bag, Coach's Tiger Year special edition tote bag, and Vacheron Constantin's Model 56 mechanical watch that requires offline pre-order.

For luxury brands, the Chinese market is becoming increasingly important, and online channels have become a new engine of growth. It has become a routine operation for brands to launch new products and limited editions on Tmall. According to Tmall, in the past year, luxury brands have released an average of more than 30,000 new products on Tmall every month , many of which are global firsts and limited editions.

Launching new products on e-commerce platforms is one of the important ways for luxury goods to capture emerging audiences. According to a Bain Consulting report, emerging consumers who grew up in the digital age are driving the growth of China's luxury market, and these people are also the most important active users of Tmall.

"Tmall is an important platform for connecting with young consumers in the 'digital age'." Antonio Carriero, chief digital and technology officer of high-end watch brand Breitling, recently told the media that Tmall is not only an e-commerce sales channel, but can also reach emerging consumers and enhance brand awareness in the Chinese market.

According to a research report on the Chinese luxury market released by Bain, the global luxury market shrank by 23% in 2020, but luxury consumption in China rose by 48% against the trend. It is expected that China will become the world's largest luxury market by 2025, and Tmall will continue to lead the growth of the luxury online market.

Since last year, Tmall has welcomed a wave of luxury goods entering the platform. Currently, more than 200 luxury brands have officially settled in the platform. It is also the only e-commerce platform in China that brings together the world's five largest luxury giants: LVMH, Kering, Chanel, Hermès and Richemont.

Data shows that in the past year, sales of jewelry, women's clothing, shoes and other categories on Tmall Luxury have grown by triple digits.

Embracing online sales has also brought significant performance growth to brands. Take Richemont Group as an example. Its net profit for the full year of fiscal year 2021 increased by nearly 40% year-on-year, of which online retail sales accounted for 21%. This is inseparable from the fact that it had previously bet on Tmall to open 11 brand flagship stores. Richemont Group once stated in its financial report that Tmall was an important driving force for its post-epidemic performance recovery.

Tmall is not only a new engine for luxury brands to achieve growth in China, but also an important partner for digital innovation. Charles Leung, CEO of FRED, a jewelry brand under LVMH, once told the media that Tmall is not just an e-commerce sales channel, but more like a digital content platform, which is very helpful for brands to reach new customer groups.

It is understood that Tmall uses the platform's digital technology to equip luxury brands' official flagship stores with AR fittings, 3D displays, online exhibitions, customized services, voice message cards, etc., allowing brands to communicate with online consumers in a more friendly and younger way.

Tmall

Luxury