Under the agreement, scheduled to come into effect mid-June, Secoo will build out a stronger portfolio of brands, leveraging the 600-some luxury and fashion brands in the Florence-based retailer’s network. In turn, Secoo will support LuisaViaRoma with its expertise in areas including mobile payment, order tracking and logistics.
“With Secoo’s 27 million high-end consumers, the cooperation is a win-win strategy for both companies to capture emerging online opportunities in China and augment values to Chinese consumers,” said Federica Marchionni, Secoo’s international chief executive officer. “While LuisaViaRoma will enhance its brand awareness in China, Secoo will strengthen its luxury brand connection.”
The Chinese luxury platform, which sells everything from high-end watches to fashion to cars, recorded significant growth in 2018, with its topline leaping 52.9 percent from the year before, a reflection of the still fast-growing broader market. McKinsey’s latest forecast expects China to account for 40 percent of the world’s luxury spending by 2025.
In February, JD.com, an investor in Secoo, said it would merge its high-end fashion portal Toplife with Farfetch. Similarly last October, Alibaba joined hands with Yoox Net-a-porter, owned by Compagnie Financière Richemont, in a joint venture.