Alibaba’s push into luxury is gaining momentum.
The e-commerce giant’s Tmall unit added its Luxury Pavilion with a handful of brands a year ago and has expanded that to nearly 70 names, including Burberry, Versace, Moschino, Tod’s, Givenchy — and now Tiffany & Co.
The high-end jeweler is going to launch its latest Tiffany Paper Flowers collection with an online pop-up on the invite-only platform beginning Aug. 16. The line will hit Tiffany stores in the market Sept. 1.
Alibaba is working hard to draw luxury names and connect with them online and off-line with its “new retail” vision that focuses on being a part of the sale and capturing related data no matter where the transaction happens.
The shoppers in the Luxury Pavilion fit a fashion ideal — they’re young and rich.
Alibaba has said nearly half of the shoppers at Luxury Pavilion were born after 1990 and that there are more than 100,000 shoppers on the platform who have spent more than $159,000 each across Alibaba’s commercial network.
That would work out to luxury customers on the platform driving sales at Alibaba of more than $15.9 billion by gross merchandise volume — or more than three times the net revenues of Neiman Marcus, which stand at $4.9 billion. (But the Luxury Pavilion is still a small part of the overall picture at Alibaba, which facilitated $765 billion in sales last year on its Chinese marketplaces).
“The Pavilion is not only a shopping platform for luxury goods, but a unique, single destination for luxury, high fashion and lifestyle,” said Lili Chen, general manager of the Luxury Pavilion.
Tiffany’s virtual pop-up will have an augmented reality component to offer shoppers other perks as well, including white-glove delivery service and an exclusive party in Shanghai.
“Today’s Chinese consumer has many choices when purchasing luxury goods,” said Philippe Galtié, executive vice president of global sales at Tiffany & Co. in a post on Alibaba’s news site. “[We are] embracing China’s digital innovation as we continue to seek new platforms to deliver a seamless experience to customers in China and around the world.”
Tiffany has selected eight pieces from the platinum and diamond range designed by chief artistic director Reed Krakoff to launch on the Luxury Pavilion, with prices ranging from $3,253 to $97,926.