Alibaba Group, the Chinese e-commerce giant, announced on August 16 the addition of luxury jeweler Tiffany & Co. to its Luxury Pavilion on the Tmall shopping platform.
The Luxury Pavilion is a new shopping experience on the Tmall platform featuring exclusive brands such as Burberry, Hugo Boss, La Mer, and Maserati. It was launched in August of last year as part of the “New Retail” concept by Alibaba.
“Luxury brands increasingly want to use new retail technology and consumer insights to connect with younger consumers, as well as drive business-model innovation,” said Liu Xiuyun, the head of Tmall’s fashion unit.
Brands housed inside the Luxury Pavilion are invite-only, and its presentation will differ from other existing luxury flagship stores on the Tmall platform which is a part of Taobao, China’s largest e-commerce platform. The Luxury Pavilion will allow brands to deliver more tailored experiences such as personalized homepages, customized brand pages, product recommendations and exclusive VIP awards.
These luxury brands will also be able to enjoy all the new technological features deployed on the Taobao platform, including the new mixed reality shopping experience announced last week.
According to a report published by Bain & Company earlier this year, Chinese consumers represent 32 percent of the global luxury consumption and domestic consumption outgrows overseas purchases. Sales of online channels, however, remain low.