There Are More And More Young People Who Like Shopping Online, Which Has Become A Good Opportunity For Jingdong.

New customers are coming. They are younger and more changeable. New products released by Milan, which they hope to get in Beijing within a week, do not want to give up the noble feeling brought by offline shopping.

These customers, called "millennials" (20-34 years old), have led to the revival of the luxury market. Chinese e-commerce platforms and world luxury goods factories have begun to cooperate to cater to their needs.

In the two quarter earnings report released in August 16th, Jingdong noted the luxury business of e-commerce, saying it continued to consolidate its position as the preferred trusted platform for high-end brands to enter China in the two quarter.

According to financial reports, in the two quarter, a number of high-end international brands launched the official online flagship store in Jingdong, including the Japanese household life brand MUJI Muji and the Swiss watch brand Carl F. Bucherer.

The latter is the first to expand the field of electronic commerce.

Jingdong was launched in October last year.

TOPLIFE has attracted about 34 brands, including internationally renowned luxury brands such as Balenciaga, Saint Laurent, Alexander McQueen, Oscar de la Renta and Mulberry.

On the day before the earnings announcement, Italy luxury brand Salvatore Ferragamo also announced its entry into Jingdong to open flagship store.

Previously, Jingdong has spent $397 million to invest in the UK luxury electric business Farfetch, and become the largest shareholder of the latter, and spent $175 million with L Catterton Asia to invest in China's largest luxury goods business Temple library.

In the earnings report, when Jingdong mentioned cooperation with Muji, it said it would "promote the integration of MUJI Muji online and offline and break the barriers of the scene".

In other words, when Jingdong wants to sell luxury goods, it ensures the convenience of the electricity supplier and ensures that customers continue to enjoy the sense of ritual.

Although Jingdong and Alibaba are far different from the total market share, they can hardly distinguish between luxury goods and luxury goods.

Jingdong believes that he has more advantages in luxury electric business.

According to Reuters, Zheng Xiaoming, President of Jingdong group international business at Winston Cheng, said in April this year's world retail conference that Jingdong's logistics system and the policy of "zero tolerance" to counterfeit goods are better than Alibaba.

Zheng Xiaoming said that after ordering the TOPLIFE platform, employees dressed in suits and white gloves will deliver home within one or two hours.

And these employees have been carefully selected, height and color values are all excellent, some of them are veterans.

In addition to the convenience of warehousing and logistics and the importance of genuine products, the luxury experience Jingdong purposely created to create online shopping is undoubtedly a bargaining chip attracting international brands.

After all, luxury brands are most concerned about the "ritual sense" that brands bring to consumers. This is also one of the reasons why they have spent a lot of money in building offline stores and unwilling to lay down their roles in online retailing.

Some luxury stores will deliberately control the number of people entering the store to ensure that guests can enjoy the best service although this often means that more guests have to wait outside the door.

But in recent years, the continued downturn in the luxury goods industry and the decline in performance have led these international giants to rethink their way of communicating with consumers.

On the one hand, the "millennial generation" has become the main driving force for the growth of the luxury goods market, and online shopping is just as common for them.

In order to catch these young people, the online sale channel of luxury goods has become inevitable.

On the contrary, luxury brands have shut down many offline stores.

The Financial Times quoted an asset manager Bernstein as saying that as of July 2017, Chinese luxury retailers had shut down 62 offline stores in 12 months.

On the other hand, as the main force of luxury consumption

Has been covered by digital business.

In 2017, China's luxury goods consumption accounted for 32% of the world's market, more than any other country, according to Bain's Bain&Co.

Bain predicts that sales of luxury goods in mainland China will increase by 20-22% this year, far exceeding other markets such as Europe.

According to McKinsey's report, 80% of the international luxury goods stores in China are in the top 15 cities of GDP, but only 25% of those who buy luxury goods live in these big cities.

The gap between demand and supply makes luxury brands have to consider going online to meet the 75% customer demand.

Although luxury brands are getting online, they need further persuasion to pay for them.

McKinsey research shows that although Chinese consumers are accustomed to online shopping, they are somewhat deterrent to online shopping luxuries.

China's luxury online sales account for only 7% of total sales of luxury goods, and this figure has not increased much recently.

"For

What's important is not to deceive yourself, "Pablo Mauron, general manager of Digital Luxury Group, a luxury research firm, told the Wall Street journal." people want to touch the goods.

I still doubt that consumers who have never bought a brand product will buy a watch worth 20 thousand dollars on WeChat. "

However, Jingdong should take the initiative to educate consumers instead of waiting for consumers to come.

After all, in the face of the Colossus of Ali, there is also a lot of service to the market in the sinking market, extending to the high-end market, perhaps the biggest opportunity for Jingdong today.