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China was and has always been an enthusiast to develop the latest technologies in e-commerce. The country is generally known to be one of the leaders in digital retail creation. It is estimated that the country would be the largest luxury market in the world by 2025.
Moreover, the COVID-19 pandemic has elevated the need of digitising the luxury market in China. The luxury in the e-commerce sector has increased by over 150%, accompanied by online consumption rising to 23%. With this kind of hype in online platforms, people expected more from brands to impress them. Luxury brands have to grasp advanced technologies to increase their customer engagement.
Alibaba’s Tmall Luxury Pavilion in China is the largest online platform dedicated to luxury brands. It enriches them with extensive and creative digital experiences in shopping. The pavilion provides innovations, intelligence in data, and apparatus that supports luxury brands to enhance the e-commerce experience. Tmall Luxury Pavilion has opened a wide range of possibilities in China for luxury brands by giving them unlimited access to the metaverse, 3D technology, AR and VR services, live streaming options, and many more.
Unconventional Creations in Digital Shopping Experiences
Many luxury brands, in hopes to enter and conquer the Chinese market, reached the platform to enlighten their e-commerce experience through creative technologies. For instance, Valentino activated its first-ever multichannel 3D virtual store on Tmall Luxury Pavilion in 2018. Likewise, Burberry and Valentino went with 3D imageries as a way for their customers to see detailed versions of the gift that they might choose for their Valentine’s Day in 2022.
In January 2023, the pavilion collaborated with Coach and developed some intriguing brand strategies such as live-streaming and holiday collection assortments, especially for the Chinese audience. Roberto Cavalli announced the opening of its first-ever online flagship store on Tmall Luxury Pavilion, together with Triboo China, in May 2023.
Vacheron Constantin and Cartier hold the same kind of 3D product viewing options for their clients. It allows them to have a closer look and examine the product from every dimension and angle possible. Moreover, Cartier went a step further and created a one-to-one video consultation with the support of Tmall Luxury Pavilion. It allows the brand to let their product advisors demonstrate the product in detail in a private digital VIP consulting room to the client. Burberry included a private virtual salon feature for selected customers to try on the latest winter products.
Additionally, Tmall organised a 3.0 watch purchasing experience, named “Luxury Cloud Watch Exhibition,” during the Watches and Wonders Exhibition held in Geneva. It provided the visitors access to a 3D space where they could virtually try on the products. The brands that actively participated in the event include Montblanc and IWC. The pieces that drew more attention at the exhibition were TAG Heuer’s Carrera date and Zenith’s Pilot Automatic watch.
Tmall collaborated with five popular brands such as Vans, Cosme Decorte, Huggies, iQOO, and L'Oréal Paris to release its spring campaign “My New Spring Flowers in Bloom.” The platform dropped an exclusive digital collectible set of virtual flowers. The event garnered around 140 million views.
A Desirable Venue for Luxury Lifestyle Lovers
Tmall Luxury Pavilion has been in this league of online retail battles since 2017. Now, the platform is the designated shop for luxury clients in China. Over 1 billion consumers are being served by this platform. The Head of the Luxury Division in Alibaba, Janet Wang, states that Tmall Luxury Pavilion is the only hub dedicated to offering innovations to digital users around the world.
The pavilion is the proud host of around 200 global luxury brands. It also includes the leading brands from the world’s vital luxury groups such as Kering Group, LVMH Moët Hennessy - Louis Vuitton, Hermès, Chanel, and Compagnie Financière Richemont S.A..
Tmall Luxury Pavilion uses insights and data analysis of the desirable customers in the Alibaba habitat to assist the brands. This intelligence will help brands to make well-informed key business decisions and forecast their future strategies in China, including domestic assortments for products, designing customised content, and working on various activations for the season, and holidays.
Furthermore, the platform works together with each brand to employ a consumer-engaging workcycle for the brand. It houses brands’ flagships with similar brands’ look, texture, and distinctive identities and images. Simultaneously, it educates and guides consumers who are not familiar with the brand. In addition to exclusively online products, the platform sells products that are available in the physical store.
Exclusive Access to Gen Z Shoppers
From 2019 to 2021, Tmall Luxury Pavilion raised its consumer target by more than 150% and sales by 300% due to the pandemic. Most of these online shoppers are young. By 2022, GenZ consumers (from the age of 29 and below) made up to 40% of the customers on the platform.
To connect with younger audiences, many brands such as Coach, Balmain, Emporio Armani, La Perla, Burberry, and Longines launched their pioneer virtual art gallery in 2021. A year after, at least 30 luxury brands launched their collectibles in the metaverse through the platform. In December 2023, the pavilion hosted a 3D snow party in the metaverse in order to elevate the winter shopping experience with outdoor winter adventures. In June 2023, Rimowa partnered with Tmall Luxury to create a virtual 3D exhibition named “Easy World Tour,” which digitally transports customers to a dreamlike space containing different locations around the world to choose from.
Additionally, the pavilion is filled with technologies such as 3D displays, AR & VR virtual try-on, video shorts (longs from 30 seconds to three minutes), extended reality (XR), and digital avatars. Now, consumers under the age of 30 are the fastest-growing shoppers on the platform.
Cover Image: IWC in Tmall Luxury Pavilion, courtesy Vogue Business