FARFETCH Tmall’s official overseas flagship store was grandly opened, and Ali joined hands to write a new pattern of luxury e-commerce in China.
On March 1st, 2021, FARFETCH, a global fashion shopping platform, launched its official overseas flagship store for Tmall.
As a global fashion shopping platform born overseas, Fafaqi has become the leader of global luxury shopping platform through more than ten years’ development, and has brought a wonderful experience to consumers around the world by closely connecting brands, buyers and fashion lovers.
Fafaqi entered Tmall luxury products this time, reaching out to consumers in China at close range through the official direct platform, bringing the world’s good products to the door of Chinese, and visiting the global luxury counters without leaving home.
Join hands with Ali to settle in Tmall luxury goods.
Vigorously promote the development of luxury e-commerce
As a leading fashion shopping platform in the world, Fafaqi has gathered a large number of luxury brands, buyers’ shops and high-end department stores, and attracted consumers all over the world with excellent service and ultimate shopping experience.
On March 1st, 2021, Fafaqi’s official overseas flagship store officially settled in Tmall luxury goods. In the future, it will cooperate closely with Ali in the field of luxury goods in China to draw a new pattern of luxury e-commerce in China.
To celebrate this opening, Fafaqi invited two "Fafaqi Tmall Star Recommenders"-Fei Qiming and lareina to help out, select Fafaqi’s new season fashion products, perform three sets of early spring styles with different styles, continue the brand’s all-encompassing diversified genes, and create a free, romantic and energetic fashion design.
On the poster of Fafadi products, Fei Qiming, a salt boy, wore a chic striped suit, while lareina decorated high heels with a dress and lace bow to convey the romantic feelings of spring.
"We are very happy to join hands with Tmall Luxury to launch FARFETCH Faqi’s official overseas flagship store. Tmall users can now buy their favorite global luxury brands and a large number of fashion items from buyers’ stores with one click, and explore the fashion inspiration and creative works from all over the world. More than 3,500 fashion brands are now within reach, and most of them are landing in Tmall for the first time. We provide a richer choice of luxury goods for Tmall loyal users. " Ms. Liu Xiaoqin, managing director and executive board member of Faqi Greater China, said happily.
Ms. Liu Xiaoqin, Managing Director and Executive Board Member of FARFETCH Faqi Greater China.
In Fafaqi’s view, it is a general trend for luxury goods to move from offline to online, from real-life shopping to digital transformation. In particular, the impact of the epidemic in 2020 is the way to catalyze the transformation of luxury brands. According to "Luxury Market in China in 2020: Overwhelming", the online sales of luxury goods in China will increase by about 150% in 2020, and the penetration rate will increase from about 13% in 2019 to 23%.
However, even 23% of the e-commerce penetration rate of luxury goods is still at a low level. Fafaqi was launched in 2008. In the early days, it focused on the online shopping platform for luxury goods buyers, which has obvious digital advantages. Now it has developed into a platform for digital transactions for mass luxury goods. At present, Fafaqi and its app users have spread all over more than 190 countries and regions, bringing together more than 3,500 brands from more than 50 countries around the world. The vast supply of products comes from direct supply of brands, buyers’ shops and high-end department stores.
Fafaqi’s 2019 annual report shows that its GMV has been growing from 3.8 billion in 2015 to 21.4 billion in 2019, and its share price has increased by over 490% since the beginning of last year. Fafaqi’s presence in Ali’s Tmall shopping platform is expected to make further breakthroughs in the development of luxury e-commerce in China.
For Ali, the rapid development of Fafaqi has attracted much attention. The presence of such a world-renowned luxury goods aggregation platform has also brought more global horizons to consumers who use the platform, and further satisfied the growing shopping demand of China consumers for luxury goods, increasing the beautiful experience.
Some analysts believe that Ali’s investment has also taken a fancy to the contrarian growth of luxury consumption under the influence of the epidemic. At the same time, there is still a lot of room for growth in online sales of luxury goods.
Breaking the circle "Z generation"
Make a strange discovery and gain a new amount
In addition to entering the field of luxury e-commerce earlier, Fafaqi also keenly captures the change of customer base-youthfulness. According to its annual report, millennials and Z generations account for two-thirds of its customers, which is higher than the entire luxury goods industry.
There is no doubt that Generation Z and Millennials will become the main force of luxury consumption. According to the data of iResearch, in 2020, consumers of Generation Z in China will spend an average of about 5 hours a day on mobile devices, which is 10% higher than the overall average. Compared with offline, online contact with brands will directly affect their purchase decisions.
Therefore, Fafaqi vigorously expands digital channels, makes use of technological advantages, provides platform solutions for brands and buyers through FPS services, and pushes their products to a broader market. So as to attract more brands to reach cooperation with Fafaqi, and provide consumers with more updated and more complete goods and services.
In addition to the development of digitalization, the aesthetic concept of generation Z is also changing rapidly. For example, the classic models of brands are often suitable for the post-70s and post-80s, but the Z generation pays more attention to fashion. Compared with the classic models, they are more willing to buy joint models, niche designs and new fashion brands. They should not only pursue brands, but also gain individuality.
On the poster of Fafaqi products, Fei Qiming changed the style of salt system and interpreted the high-luxury trend for the first time; Lareina also broke through the usual style, took a modern sweet and cool style, and made a strange transmission of the concept of exploring multiple people and discovering a new self
In August 2019, Fafaqi acquired NGG(New Guards Group) for US$ 675 million. Different from traditional luxury goods, NGG owns Off-White, Palm Angels, Heron Preston, Ambush and other popular brands. This is exactly the way to bet on young people’s preferences. Among them, Off-White has also cooperated with Nike, Adidas and some luxury brands to continuously launch joint explosions to obtain high GMV.
In addition, Fafaqi also owns fashion brands such as Browns, a British boutique buyer’s shop, and Stadium Goods, a sports street shoes and clothing resale shop.
According to Tmall data, from January to October, 2020, the consumption of joint brands and limited editions of luxury goods by Generation Z increased by 300% to 400%.
In April, 2020, FARFETCH launched its favorite Chinese name "Fafaqi" in China, trying to China in the field of e-commerce and trying to talk with a new generation of consumers in China.
The consumption power of luxury goods in China is constantly increasing.
Fafaqi draws a new pattern of luxury e-commerce
Digitalization of channels and rejuvenation of brands are the two most obvious changes in the development of luxury goods. Therefore, it is foreseeable that in the future, more luxury goods will move the counters online, and even more new online luxury brands will be born.
For Fafaqi, its asset-light, high-tech and platform-based characteristics will benefit from the increase in the penetration rate of global luxury e-commerce, and China consumers are one of the main driving forces of the global luxury market, accounting for more than one third of global luxury consumption.
On the one hand, Fafaqi will gain more benefits from the development of luxury e-commerce in China; on the other hand, Fafaqi will enrich the supply of luxury goods in China by entering Tmall luxury goods. In 2019, the domestic market consumption in China’s luxury goods market only accounted for 31%, and in December 2020, Bain Company released the research report on China’s luxury goods market in 2020, which showed that the domestic market accounted for 70%-75% of the global luxury goods consumption in 2020.
This shows that the consumption demand of luxury goods industry in China is still increasing, which is mainly due to the economic development and consumption upgrading in China. In addition, there are still uncertainties in the epidemic situation abroad, and luxury goods consumption shows a trend of consumption backflow and localization, and there is a large room for online luxury goods consumption growth.
As a leading luxury fashion technology platform in the world, Fafaqi will also jointly launch a "new luxury retail" initiative with Alibaba Group, and use the advanced omni-channel retail technology of both parties to accelerate the digitalization of the global luxury industry. This situation was first opened in China, and Fafaqi will be a shining star in the pattern of luxury e-commerce in China.
"This is a crucial milestone in our global strategic partnership with Alibaba. At a time when international travel is still restricted and luxury consumers can’t go to their favorite European buyers’ stores to buy goods, we provide a rare opportunity for the brand to expand in the China market. This opening is only the beginning of our strategic cooperation. Through our strategy of "new luxury retail" in China and around the world, we will work together to help brands and retailers realize the full digitalization of online and offline business. " Liu Xiaoqin said so.
This article first appeared on WeChat WeChat official account: national business daily (blog, Weibo). The content of the article belongs to the author’s personal opinion and does not represent Hexun.com’s position. Investors should operate accordingly, at their own risk.