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    Economy

    Luxury labels get an online makeover(2)

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    2017-08-31 09:07China Daily Editor: Li Yahui ECNS App Download

    JD.com has even wheeled out a "white glove" express delivery service in which smartly dressed couriers in electric cars drop off purchased items to customers.

    "Luxury fashion brands will see that we really understand them," said Liu, adding that the company plans to roll out more initiatives without going into details.

    Last year, China's cross-border e-commerce import transactions reached 1.2 trillion yuan ($180.2 billion), an increase of 33.3 percent compared to 2015, a report released by China E-Business Research Center revealed.

    This year that figure is expected to increase by 54.5 percent to 1.85 trillion yuan.

    With so much at stake, Alibaba has been quick to take up the challenge by launching Luxury Pavilion.

    The new site on Tmall features an array of designer labels from apparel, perfumes and beauty products to watches and jewelry from Burberry, Hugo Boss and LVMH-owned marque names Guerlain and Zenith.

    Part of Luxury Pavilion's appeal is that leading labels can launch their "official stores" on the site and run the businesses on a daily basis.

    "Luxury brands increasingly want to use new retail technology and consumer insight to connect with younger shoppers, as well as drive business-model innovation," said Liu Xiuyun, the head of Tmall's fashion business.

    Combating counterfeit brands has also become a priority with JD.com taking a tough stance by controlling inventories and vetting retailers on its fashion site. The move has paid off.

    "As a testament to our commitment to authenticity, we have become the first and only Chinese e-commerce company to join the American Apparel& Footwear Association, where we will work with them on intellectual property issues," General Manager Liu said.

    Alibaba has gone down a similar road to beat the "pirates".

    Earlier this month, the online giant joined forces with the Kering Group to weed out counterfeit brands.

    The French company based in Paris owns labels such as Gucci, Yves Saint Laurent, Balenciaga, Alexander McQueen and Bottega.

    Protecting those intellectual property rights in China has become a priority as the group rides a new wave of online shopping.

    "Luxury brands are catching on and e-commerce is the next frontier for growth in a crucial market," said Liz Flora, editor of the Asia Pacific region for market research company L2.

    But the problem of fake labels has left many online shoppers wary of buying luxury items, Lu Zhenwang, CEO of Wanqing Consultancy in Shanghai, stressed.

    "Making sure the authenticity of luxury products will boost customer confidence in China (and increase sales)," Lu said.

      

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