JD Luxury Links with High-end Brands to Boost Digital Profile

by Doris Liu

JD Luxury has attracted more than 300 big brands to cater to the appetite of Chinese consumers for all things luxury. As JD's annual Luxury Shopping Festival kicked off on July 25, some 50,000 new products went on sale with a full range of categories from the world's top brands.

The pandemic has accelerated China's digitalization as the stay-at-home economy thrives. The luxury market in China was forecasted to grow by 36 percent year-on-year (YOY) in 2021, with some brands seeing a 70 percent surge, according to the China Luxury Report 2021 released by Bain & Company, a global management consulting firm. In addition, luxury brands have become more open-minded in terms of digital engagement, leading to a growth of online and offline personal luxury goods sales in China to 56 and 30 percent respectively, according to the report.

According to Bain & Company, China is expected to become the world's largest luxury market by 2025.

To be more flexible to adapt to the uncertainties brought by the pandemic, while also connecting with millennials and Gen Z consumers, brands have to act in an open and inclusive manner. JD, with its robust supply chain capabilities and omni-channel advantages, has been chosen by more and more key brands to help accelerate their own digital transformation.

Brand Matrix

With over 300 official flagship stores of luxury and premium brands, JD is now the first company to collaborate comprehensively with nine top-tier fashion brands under the French luxury conglomerate LVMH, after Fendi joined JD Luxury recently following Louis Vuitton, Dior, Bvlgari, Celine, Loewe, Givenchy, Berluti and Rimowa.

The Kering-owned jewelry house Qeelin, Swiss luxury watch and jewelry brand Chopard, and Hermès' shoe brand John Lobb have launched their flagship stores on JD.com. Other sought-after luxury brands such as Burberry, Salvatore Ferragamo, Delvaux, Prada, Zegna, Tod's and Bally are also featured on JD Luxury, a luxury fashion-dedicated platform under the J Shop, JD's upgrade of its Fashion and Lifestyle business.

To match consumers' demand of refined lifestyle in all aspects, JD also introduced a roster of flagship stores for high-end products like Tom Dixon homeware, Christofle silverware, collectible luxury piece BE@RBRICK, the Canadian luxury outerwear brand Moose Knuckles and so on.

The growing number of luxury brands on JD indicates that JD's healthy ecosystem has won trust from the industry; meanwhile, JD's strong reputation for offering an authenticity guarantee is also deeply rooted among over 580 million active users.

Innovative Modes

As a global gathering place for the world's premier brands, JD Luxury has rolled out diversified and innovative models for the digital layout and customized operation of these brands, which enhances consumers' shopping experience down to the details, while ensuring a full and unified expression of each brand image.

Luxury brands on JD are able to access multiple options for efficient on-demand operation solutions. The DTC (Direct to Consumer) model of JD's mini program scheme through JD's App, adopted by brands such as Louis Vuitton and Fendi, customize and optimize functions to make product suggestions more relevant with recommended outfits to inspire everyday fashion.

JD's self-operation of the omni-channel retail model enables Prada, Zegna, Maison Margiela and more to seamlessly manage the inventory of online and offline stores - customers can select products that are available in physical stores through JD's official flagship store, and opt to place orders online and then pick up in the brick-and-mortar store, which enhances a more hybrid customer experience.

Other models are also open for brands with a wider selection of merchandise and scenarios, including JD's self-operation with brands' official authorization; the marketplace model; and the newly launched vendor-managed inventory (VMI) model, which allows luxury brand to run the store with independent operation, while also enjoying the warehousing and logistics services offered by JD Logistics.

Additionally, the J Shop offers physical stores. To date, three of them have been jointly developed by JD and Italian luxury retailer COSCIA, located in Chengdu, Shenzhen and Yinchuan. Featuring the themes of luxury, designer brands, light luxury and lifestyle, the stores offer nearly 2,000 selected products covering bags, apparel, footwear, watches, etc.

Customer First

Luxury brands sell more than products; they also focus on creating highly personalized and multi-dimensional experiences for luxury consumers, with supreme customer service, accessibility and convenience across all touch points.

JD Luxury recently launched a Plus Luxury membership program, in which members can receive coupons for top brands as well as premium services such as high-end laundry and exclusive VIP offline events.

Furthermore, services that are markedly specialized and tailored to individual clients smoothly replicate and enrich the in-store shopping experience such as one-on-one online customer service, engraving service, the self-operated same-day delivery, and JD Luxury Express, which offers a white-glove delivery service by specially-trained JD employees.

Creative marketing strategies are also important to appeal to more luxury buyers. For instance, the 3D shopping solution supported by VR technology is sometimes adopted in JD's stores. Moreover, Tory Burch's first digital collectible will be released jointly with JD during the Luxury Shopping Festival this year, which will be concluded on July 31, while MCM will launch an in-store interactive game.

Tory Burch to launch its digital collectible on JD.com

With Chinese Valentine's Day "Qi Xi" (July 7 on Chinese lunar calendar, which falls on August 4 this year) around the corner, JD is joining hands with top brands to organize a crossover campaign, featuring Hennessy X Emporio Armani, Boss X Xiaomi, Alienware X Stone Island, etc.

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