ROME and BEIJING, Oct. 2,
2017 /PRNewswire/ -- The European Confederation of the
Footwear Industry (CEC) has confirmed that Chinese premium
lifestyle platform Secoo Holding Limited (NASDAQ:SECO) has signed
an exclusive agreement with CEC and officially become their
exclusive partner in China. The
agreement covers more than a hundred European footwear brands and,
as a result, Secoo Group has secured for the Chinese market the
exclusive rights to 87% of the supply of European premium footwear.
The number of brands that have signed on has grown by leaps and
bounds from the existing 1,000 odd brands.
As an authoritative business organization representing the
footwear industry in the EU, CEC's membership includes companies in
18 EU countries as well as 5 countries in Central and Eastern Europe, among them leading shoemakers
from the industry's powerhouses of Italy, France, the U.K. and Sweden. The organization represents 87% of the
footwear produced in Europe,
including the vast majority of the production of the premium name
brands. In recent years China has
become the main market for high-end footwear. It's a market that is
expected to continue growing, as a result, CEC sees China as its next major opportunity. CEC's
cooperation with Secoo is based on the Chinese firm's reputation as
a purveyor of products that represent a premium lifestyle".
CEC president Cleto Sagripanti
said during a recent interview, "I look forward to the cooperation
with Secoo Group, as we recognize their efforts in building a
premium lifestyle platform". He added, "Many European footwear
brands have good quality but lack access to rapidly growing
overseas markets such China. Secoo
will become a member brand of our organization and help us provide
an optimum solution. They already have wide access to China's high-end customers and, at the same
time, provide protection for our intellectual properties."
Secoo has become the top choice among influential international
brands who want to create a beachhead for their products in
China. Secoo, the largest online
premium lifestyle platform in Asia
with 15.4% of the market, as well as a quarter of the high-end
online market in China. The firm,
with nine years of dedication to the business, has the best ranking
among many of the key indicators for the industry, including 15
million registered users as of the latest update, an average
purchase per customer exceeding 3,500
yuan (approx. US$525) and
300,000 SKUs in stock. The strong performance numbers are
complemented by an integrated set up combining online with its
brick-and-mortar stores, serving to boost the firm's reputation as
well as strong loyalty across its customer base.
In an examination of the Chinese high-end products market over
the last few years, premium footwear has exhibited ongoing growth
and has become the second best-selling product category after
handbags. The exclusive cooperation with CEC will, in one go,
provide Secoo with the opportunity to solve all issues concerning a
sufficient supply of footwear, while also vastly expanding brand
diversity. By introducing more high-end brands as well as niche
brands with excellent reputations will go a long way in meeting the
changing expectations among high-end customers. The expanded line
up is expected to strengthen the stickiness across the existing
customer base as well as grow the base with new converts. Chinese
customers have traditionally had a bias towards the classic "tried
and true" premium brands, however, that has been changing of late,
with a readiness to take the plunge for designer brands of a more
recent vintage as well as higher level of willingness to purchase
for the coming season rather than trying to buy off-season styles
in brand outlet stores.
At the same time, having a successful product mix means having a
lineup that relates to customer expectations yet promises a good
profit margin. A direct agreement with the manufacturer increases
the profit by boosting the margin, with it being possible, in many
cases, to double the profitability when the middle man is removed
from the equation. Italy-based
Yoox Net-A-Porter Group, one of the
world's leading premium product online platforms, also chooses to
sign direct agreements with brands. Today's leading online
operators have discovered that dealing directly with the
manufacturer is the key to the growth of the industry, as, by doing
so, the risk of purchasing and selling a knock-off is eliminated
and the authenticity of the product is insured, while the room for
profit is expanded. Taking the high road in all of one's decisions
is the proven model for any serious player in the luxury segment.
The Secoo business model is fully aligned with this approach, not
only now but also for the long term.
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SOURCE Secoo