Under the repeated impetus of the black swan of the epidemic, the "power distribution" of the global luxury consumer market has been rebalanced, and great changes have taken place in terms of geography, category, pricing, channels and other aspects. The much-watched Chinese market, especially the luxury online consumer market, has become increasingly fiercely competitive.
In the face of the new situation of the strong Hengqiang industry, JD Luxury has bucked the trend in the past two years, rapidly accumulating more than 300 brand official flagship stores, from the first official online flagship store of the top luxury leather goods brand Delvaux, the footwear brand John Lobb of the Hermès Group, to the cooperation with LOUIS Vuitton, Bulgari, Dior, Loewe, Givenchy, Berluti and other well-known brands under LVMH Group. The super luxury brand matrix is accelerating its expansion. Among them, lvmh group's high-frequency, intensive, in-depth and innovative cooperation with JD.com in this year has become a "phenomenon-level" event in China's luxury online consumer market in 2021.
With the rise of The Z generation consumer group as a heavy user of luxury online consumption, Jingdong Luxury focuses on the fashion brands and niche designer brands loved by young people, and ushers in the official entry of many popular tide brands and designer brands in Japan, South Korea, Europe and the United States, including Stone Island, A-Cold-Wall*, J.W.Anderson, AMI, Guidi, etc., through the accurate layout of China's online consumer market, standing out in the fierce competition.
In 2021, digitalization continues to break boundaries and drive the industry to reshuffle. This year, the boundaries between online and offline have been broken, the boundaries of virtual reality have been broken, the boundaries between brands and platforms have been broken, and the growing Jingdong luxury matrix in the fierce stock market is achieving multiple growth through the consumer market. The unique advantages of JD luxury products, such as exclusive customized Mini Programs, integrated service models, and creating marketing IP that empathize with consumers, make JD luxury products an ideal choice for global luxury goods to expand the Chinese market. A new market force created by JD.com luxury products and global luxury brands and Chinese consumers in the consumption upgrade is constantly breaking through, integrating and reshaping the new situation of China's luxury consumer market in 2021.
At present, digital 2.0 is deeply involved in every chain of consumption, from brands to consumers are fully embracing digitalization, and closer cooperation between platforms and brands has become an inevitable trend; on the one hand, with the rapid development of China's economy, the "olive-shaped" social structure with the middle class as the main body is gradually taking shape. According to the "2021 Consumer Confidence Report" issued by the Consumer Insights Think Tank, high-income consumers are comprehensively upgrading their consumption in various categories, especially non-essential consumption. Compared with before the epidemic, they changed from buying "just right" products to tending to buy better products. Another strong force of high growth comes from the reshaping of the fashion discourse power of Gen Z consumers. According to the "2021 China Luxury Products Report" jointly released by Ruder Finn Communication Group and Precision Market Research Center in the middle of this year, Gen Z consumers (aged 21-25) have become an important force in luxury consumption. Their understanding of luxury consumption is not only manifested in improving the quality of life, but also relies on expressing achievements and expressing themselves through consumption choices.
The consumer group has undergone large-scale changes, and the concept of consumption is constantly evolving. Based on this, Jingdong has comprehensively laid out top luxury, tide brands and niche designer brands, and covered clothing, shoes, bags, jewelry, accessories, watches, home lifestyle, tide play and other categories, with a diversified brand matrix to meet the needs of target consumers for all-round exquisite life upgrading.
In addition to Burberry, Salvatore Ferragamo, Zegna, TOD'S, Bally and other first-line luggage, shoes and clothing brands settled in JD.com, the world-famous luggage brand RIMOWA also landed on JD.com to open the brand's official flagship store. Top fashion play brand BE@RBRICK (building block bear) opened a brand flagship store in Jingdong and brought a 42nd generation blind box.
In 2020, Chinese mainland became the region with the highest export volume of Watches in Switzerland for the first time. Nowadays, in JD.com, consumers can buy Swiss watches including Tissot Tissot, Longines Longines, TAG Tag Heuer, Zenith Zenith, Breitling and other big brands. For the high-end jewelry category loved by luxury consumers, JD.com has also introduced a more diversified style selection from the world in the past two years. Following the arrival of Swiss luxury jewelry and watch brand Chopard Chopard on JD.com, French jewelry brands Gas Bijoux, Philippe Ferrandis and Japanese jewelry brand Ahkah have also joined.
According to the "2020 China Luxury Consumption White Paper" survey, 20.4% of luxury consumers said that the luxury goods they want to buy in the future are home products. In Jingdong luxury, following the contemporary noble life brand jointly created by designer Jiang Qiong'er and The French Hermès Group - "Shangxia", the British high-end home furnishing brand Tom Dixon, the Italian trendy luxury home Seletti, the French silver family Christofle Kunting have also settled in, and the Dan brand Georg Jensen (George Jensen) has also been launched on JD.com this year.
While all categories of luxury brands are competing to enter the game, the market feedback is also quite gratifying. In the Jingdong Double 11 war report, the turnover of more than 20 luxury brands increased by more than 200% year-on-year, Chopard turnover increased by 260% year-on-year, the turnover of Baccarat Baccarat, the top French crystal luxury brand, increased by more than 100% year-on-year, the tide play brand, BE@RBRICK increased by more than 10 times year-on-year, and RIMOWA's global limited edition Original Moon series luggage sold out in 6 hours. Through a rich brand matrix and diversified categories, Jingdong allows luxury users to stay at home and buy all the world's big brand good things with one click.
Unlike other areas of the retail industry, luxury goods are extremely protective of scarce, prestigious brand images and brand equity. However, while cherishing feathers, only by using digital empowerment to break boundaries can we maintain a sustainable market position in the construction of a new order.
To this end, in addition to the existing "Jingdong self-operated + officially authorized" flagship store and POP flagship store model, Jingdong Innovation has customized the brand Jingdong exclusive mini program for luxury goods, providing "exactly the same" UI visual presentation and supporting services as the brand's official online boutique. While highly respecting the brand image, JD and the brand side channel information open, brand members in the Jingdong Mini Program can get address delivery information with one click, high-quality and efficient first-class experience between JD.com, the brand and consumers smoothly, this innovation of breaking the boundary between channels and brands has become a key step to reshape the luxury online consumer market.
In April this year, JD Luxury customized a new cooperation model for Louis Vuitton - consumers can enter the JD APP to search for "LV" and enter the Louis Vuitton JD Mini Program to buy LV goods. Since then, Brands such as Bulgari, Loewe, and Givenchy have successively joined the JD luxury matrix through the JD Mini Program, and this operating model of co-creating asset compound interest in the digital era with the brand has been highly recognized by global luxury brands.
In fact, the model of customizing exclusive innovative Jingdong Mini Programs for brands is based on a healthy and pure genuine ecosystem. When the channel has an obsession with the genuine product, the consumer has established the integrity label of the channel authenticity guarantee in their minds, and prudent as a luxury brand will go down to the field to jointly create with the channel to achieve a real boundary breaking and model innovation.
But digitalization is not only the use of technology to achieve model innovation, based on the original intention of meeting the multiple needs of consumers in an all-round way, so that online and offline are completely integrated, which is the real digital evolution. This year, JD Luxury's 3DVR store, together with home and footwear brands such as Tom Dixon and Berluti, with new technologies, is a representative of the immersive shopping experience in the digital age.
The subversion and co-creation of channels and luxury brands is much more than models, technologies and services. Based on consumers' cognition and trust in the genuine ecosystem, JD.com has jumped out of the framework of traditional online channels and built an online and offline integrated service model with brands - "JD self-operated + omni-channel". In this mode, the brand's offline stores and self-operated goods are completely opened. Taking JD Double 11 as an example, consumers can buy a wealth of goods from physical stores while visiting Prada, miumiu and Zegna online flagship stores. Among them, Zegna and JD Luxury products, through the omni-channel model of self-operated procurement and warehousing + offline designated stores + brand warehouse delivery, introduced the goods of the brand's offline stores and official websites to the official flagship store of Jingdong.
The innovative cooperation model of omni-channel cooperation and expansion is another breakthrough demonstration brought by JD luxury products to the retail industry in the digital era. At present, the omni-channel cooperation between JD Luxury and Prada and miumiu has covered 9 stores in 6 major cities in Beijing, Shanghai, Shenzhen, Wuhan, Chengdu and Shenyang. Consumers who visit JD.com to buy Prada and miumiu can be shipped by designated stores to get a more efficient and efficient quality experience and feeling.
So far, JD Luxury has worked with brands in the past 2021 to break the boundaries of information, channels and virtual reality with digital empowerment. In the case of the increasingly perfect digital infrastructure and the entry of the luxury consumer market into the stock competition of the strong Hengqiang, the two sides can still achieve the new situation of "a hundred flowers blooming", adhere to the concept that the genuine product is 1, the operation service is the concept of countless 0s behind, and the market data will inevitably give positive feedback - in the past "luxury festival" only on December 17, the turnover increased by more than 10 times year-on-year, the turnover of the top luxury brand BVLGARI increased by 24 times month-on-month, the turnover of LOEWE increased by 11 times, and the French tide brand Ami Paris turnover increased 54 times year-over-year.
In the current economic environment, the luxury market, whether it is a brand or a platform, has formed a basic disk of the strong hengqiang. As a result, e-commerce festivals have been reported frequently in the past few years, but the annual ranking is basically the same. Under such a background, the genuine ecology of Jingdong luxury products that is deeply rooted in the hearts of the people shows a strong long tail and spillover effect, and in this way, it breaks the dependence of luxury goods on the weight of large promotion traffic and redraws a new curve for the steady growth of China's luxury goods consumption.
While achieving steady growth by virtue of the genuine ecology, and continuously strengthening and consolidating the dual marketing IP of the luxury festival + "gifts in Jingdong", Jingdong and luxury goods are gaining a more sustainable new market than the big promotion. Taking the fifth luxury festival as an example, Prada, HUGO BOSS, Chopard, TOD'S, AMI, Bally more than 300 brand official flagship stores organized to help, more than 200 Christmas, New Year and gift boxes shined on JD.com.
Among them, Givenchy launched the 2022 Chinese New Year limited series with annual elements in JD.com, such as T-shirts, sweatshirts, bags, etc., and DELVAUX 2021 autumn and winter new Pin series mini handbags, enriching consumers' holiday choices. At the same time, on December 15 this year, Jingdong Luxury also launched the PLUS Black Card Luxury Tasting Fresh Edition Season Card, and the exclusive discount coupon for high-end users can cover more than 90% of the items in the luxury category, truly helping more high-end consumers to enhance the distinguished service experience.
In fact, the high-end circle layer and exquisite and appropriate service built by JD.com with the luxury festival are not replicable. On the one hand, based on Jingdong's 550 million active purchase users, as well as the high-end user circle formed by more than 20 million OF THEM, JD.com meets its one-stop consumer demand for high-end brands; on the other hand, through the new brand, through the new brand, open up high-end cross-category marketing and other high-end cross-category marketing and other ways to revitalize the resources inside and outside the station, while leading JD.com to occupy the forefront of the luxury consumption field, it highly matches the original users and truly realizes the new addition from the existing stock.
If the luxury festival is a regular "appointment" between consumers and brands promoted by JD.com based on its own advantages, "courtesy season" and "courtesy in JD." are the "long-term cultivation" between JD users and channels. Luxury goods, because of their particularity, are most often used by consumers as the first choice for gift-giving. The data shows that more than 70% of luxury spending comes from the Double Dan festival of Christmas and New Year's Day, followed by birthdays and anniversaries.
Based on the insight into China's luxury consumption scene, Jingdong uses the "Gift in Jingdong" IP to build a bridge of in-depth communication between the brand side and consumers, on the one hand, with the content of the scene and rich single products, to help consumers understand luxury products more three-dimensionally and deeply in the corresponding scenes; on the other hand, a series of appropriate and exquisite services such as jingzunda distribution, leather cleaning and maintenance, clock and watch repair, jewelry maintenance customization, dress change and clothing customization of Jingdong luxury products also make the "courtesy season" more long-term value. As a result, "Gifts in Jingdong" truly realizes empathy with consumers, and "gift-giving" is not a materialized and standardized behavior, but has become a way for people to convey "affection", which is dense and long.
Comprehensive data from the review of 2021 shows that in JD.com, watches, jewelry and other brands performed higher than the promotion at the festival, and the conversion rate was high and the return rate was low. Behind such good results, it is still inseparable from the authentic ecological environment built by Jingdong in multiple categories, authentic products and strong logistics, and it is this healthier, purer and cleaner environment that forms the holiday memory password in the minds of consumers, thus laying the foundation for the IP compound interest of "Gift in Jingdong".
With the end of Double 12 and Christmas, the online consumption of luxury goods has come to an end in 2021 in the post-epidemic era, and what kind of legend will happen in the Jingdong courtesy season on the new year's day that follows?
C-end users' enthusiasm for high-end consumption power is not reduced, the Chinese market is continued to be optimistic about the situation, LVMH Group's many brands jujingdong, JD.com and global luxury groups to reach cooperation, jointly build high-end lifestyle dream is still far away?
In 2022, which is full of changes and uncertainties, only by understanding users, brands and markets can we get one step ahead of competitively motivated online luxury transactions. As Jiang Ke, president of the international brand department of Jingdong Retail Fashion Home Platform Business Group, has emphasized many times, he has always adhered to the "customer first" attitude in communication with brands and consumers, and from the perspective of brands and consumers, he stood in the position of consumers to comprehensively and deeply consider their real needs.
2021, which breaks the boundaries and reconstructs the new order, has come to an end. JD.com, which has a history of 23 years, grows together with the online layout of luxury brands, and is reaping time compound interest with a purer authentic ecology. WWD
Content Planning Huayi Tomorrow Fashion Content Center
Written by Jue
Image source courtesy of the official