JD Launched Luxury E-Commerce Platform TOPLIFE

With e-commerce platforms competing with each other in luxuries, luxury goods which were out of reach now have become commodities that could be ‘ordered simply on mobile”. Of course, you must have enough money in your bank account.

Although before, JD.com hired dama (aged women) as models for luxury goods and the Gucci glasses sold on JD.com was suspected to be fake, JD.com seems determined in doing luxury goods business. JD.com bought 397-million-dollar stakes of Farfetch and attended New York and London fashion weeks on high profile. Also, JD.com launched TOPLIFE, a new luxury e-commerce platform.

36 Kr has learned that TOPLIFE, a luxury service platform wholly developed by JD.com, has been publicly available for users. TOPLIFE has completely different style from JD App and the interface is much magnificent. The model is also very fashionable, better than dama’s freestyle.

According to JD.com, TOPLIFE is completely independent from JD.com main station in operation, focusing on experiential luxury consumption and highlighting sales service, customer experience and supply chain management. The user’s shopping model will be dominated by the brand, and users can also enjoy customized fashion consulting services and 24-hour customer service.

While luxury brands can display products online. The way for presentation is not limited to pictures and video. At present, TOPLIFE has reached cooperation with brands like La Perla, Emporio Armani, Rimowa, Ports 1961, etc. The products of these brands have landed on TOPLIFE’s App.

JD.com has invested to build a luxury warehouse facility. The warehouse is equipped with coded locks, face recognition, 24-hour monitoring, 110 linkage alarm, fingerprint identification and other multiple security systems.

In addition, the warehouse also specially sets up two zones, namely the zone of constant temperature and that of constant humidity. Also, there is a complete set of security check area, monitoring room, negotiation area, conference room, as well as elevator and area exclusively for loading and unloading of goods. In terms of delivery, JD.com has launched a special line of air transport and Jingzunda service, a high-end customization delivery service. Delivery men in suit and tie will deliver these luxuries.

Facing increasing Chinese middle classes, e-commerce companies unanimously turn attention to luxury goods. According to China Luxury Consumer Report released by McKinsey, 7.6 million Chinese households bought luxury goods in 2016, with the average annual luxury consumption of 71,000 yuan.

And more consumers buy luxury goods in domestic and they are less unwilling to purchase luxury goods online. The global luxury market is expected to grow by one billion RMB by 2025, reaching 2.7 billion RMB. Chinese consumers will “buy” 44% of the global market for luxury goods.

JD.com and Alibaba, which have a lot of user traffic, start to work on luxury business.

In 2015, Alibaba strategically invested Mei.com and LVMH. Consequently, a lot of big names including cosmetics, watches and handbags entered Tmall. In August 2017, Tmall launched Luxury Pavilion and conducted accurate online marketing of luxury goods. In this year’s double eleven festival, Tmall invited New York Fashion Week, enabling consumers to buy clothes while watching the show.

As for JD.com, in addition to being Farfetch shareholder and launching a new luxury e-commerce platform called TOPLIFE, it has made several other moves, including attending New York and London Fashion Week on high profile and cooperating with famed designer. Even Zhang Zetian, the wife of JD.com’s CEO Richard Liu, went there to help publicity.

Apart from the comprehensive e-commerce platform, vertical luxury e-commerce companies are also in full swing. According to an investigation from L2, a New York-based digital marketing agency, in most cases, it is vertical third-party platforms that can be trusted by luxury brands, such as Yoox Net-a-Porter and Farfetch.

SECOO, a Chinese vertical luxury e-commerce, landed on the NASDAQ last month, becoming the first China Concept Stock in the field of luxury e-commerce company. Although on the first day in the market, stock price fell from 13 dollars to 10 dollars, soon, SECOO reached an exclusive cooperation agreement with European Confederation of the Footwear Industry, enabling SECOO to have exclusive access to hundreds of European shoe brands.

With e-commerce platforms competing with each other in luxuries, luxury goods which were out of reach now have become commodities that could be ‘ordered simply on mobile”. Of course, you must have enough money in your bank account.

Header Image: Zhang Zetian, JD founder Richard Liu’s wife and fashion brand development consultant of JD.com