Tmall Luxury Connects High-End Brands with China’s “New Luxury” Gen Z Consumers
August 25 2020 - 12:38AM
Business Wire
Tmall Luxury, China’s leading online destination for high-end
and designer brands, announced new features to bolster luxury
brands’ connections with China’s Gen Z, a digital-first
fashion-forward customer base that is fast becoming a driver of
global luxury consumption.
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Tmall Luxury connects brands with China’s
Gen Z consumers (Photo: Business Wire)
Tmall Luxury launched three new features to educate, entertain
and engage the new generation of luxury buyers: Soho Live, a daily
livestreaming service focusing on all things luxury; Soho Mag, a
content-rich channel with the latest fashion news jointly developed
with fashion editors and trend-setting influencers; and an upgraded
membership program offering personalized services to high-value
customers.
China’s Gen Z’s fondness for high-end goods is fused with their
love for streetwear and anything inspired by pop-culture. For them,
luxury is more than a status symbol. Fashion is a way of
self-expression and identity. Under the “New Luxury” banner, Tmall
is looking to celebrate the confidence, boldness and
open-mindedness of this new class of luxury shoppers.
Gen Z has demonstrated strong spending power for luxury products
in China. A report by McKinsey & Company showed China’s Gen Z
spend an average of RMB 25,000 (US$3,600) a year on luxury goods,
already as much as their parents—the post-’65s/’70s generation.
Getting Younger
The same consumer patterns are evident on Tmall Luxury. Around
80% of the customers on the platform are 35 years old or younger,
with highest concentration in the 26-30 age group. And with the
number of luxury consumers in the 18-25 age group more than
doubling between July 2018 and June 2019, this younger consumer
segment is set to become a bigger driver in the luxury
industry.
To tap into the “New Luxury” trend in China, top luxury players,
such as Valentino, Balenciaga, Golden Goose, Hugo Boss and many
others, are collaborating with Tmall Luxury to sharpen their appeal
with this influential group of emerging luxury shoppers.
“By providing Tmall’s unparalleled analytics and insights on
luxury consumption in China, we empower luxury brands with a deeper
and more accurate understanding of local consumer preferences,”
said Mike Hu, Alibaba Group vice president and general manager
of Tmall Luxury, Fashion and FMCG. “These insights allow luxury
brands to precisely tailor their communications to Chinese young
audiences, while staying true to their brand identities.”
Launched in 2017, Tmall Luxury is widely recognized by luxury
brands around the world as the preferred platform to connect with
China’s young shoppers. To date, nearly 200 leading brands have
opened flagship stores on Tmall Luxury Pavilion. The new Luxury
Soho channel, which caters to young value-conscious consumers, has
also attracted a growing number of brands.
“Being on a digital platform such as Tmall allows Golden Goose
to talk to consumers across China about the brand's integrity,
craftsmanship and its versatile range of products and to grow in a
way that ensures both quality and quantity,” said Mauro
Maggioni, Asia-Pacific CEO of Italian high-fashion brand Golden
Goose, which launched on the Pavilion earlier this month. He
added that China is the most ideal market to tell the brand story,
thanks to the ecosystem that has already been in place.
New Features to Capture New Taste
Aside from being digital natives, another quality that sets
China’s Gen Z apart from the previous generations of luxury buyers
is their penchant for creative content, social media and
interactive features.
With that in mind, Tmall Luxury has launched Soho Live as a
destination for luxury-focused livestreaming, helping designer
brands effectively leverage the popular medium to engage their
Chinese fans through real-time interaction with their favorite KOLs
and fashionistas. This is complemented by another new
content-marketing tool Soho Mag, which allows consumers to tune in
anytime for the latest fashion trends as well as shoppable
editorial features.
Tmall Luxury’s incisive understanding of consumer trends in the
luxury sector will help it to provide personalized, multi-tiered
services to its high-end customers as part of its new upgraded
membership program.
About Tmall
Launched in 2008, Tmall (www.tmall.com) caters to consumers’
ever-growing demand for high-quality products and premium shopping
experience. A large number of international and Chinese brands and
retailers have established storefronts on Tmall. In the 12 months
ended March 31, 2019, Tmall was the largest third-party online and
mobile commerce platform for brands and retailers in the world in
terms of GMV, according to Analysys, and continues to grow quickly.
Tmall is a business of Alibaba Group.
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version on businesswire.com: https://www.businesswire.com/news/home/20200824005678/en/
Alex Liu Alibaba Group Tel: +86 18301299663 Email:
zhengyi.lz@alibaba-inc.com
Jenny Hsu Alibaba Group Tel: +86 17857411742 Email:
jennyhsu@alibaba-inc.com
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