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“As we look to continue to meet this demand, we see many potential areas for future collaboration with Secoo.” Beijing-based Secoo runs an integrated online and offline shopping platform, which consists of Secoo.com, mobile applications and so-called offline experience centres. Across that platform, the company offers more than 300,000 different merchandise or stock keeping units, which cover more than 3,000 global and Chinese brands. Secoo’s gross merchandise volume reached 1.1 billion yuan (US$165 million) in the first quarter, up 43.2 per cent from the same period last year. Its net income increased 10.2 per cent to 25.9 million yuan in the first three months of this year, according to the company. Chinese consumers are increasingly discerning about their luxury purchases, demanding more variety and choice than ever Hu Shengli, president of JD.com’s fashion and lifestyle unit Secoo and JD.com, however, will continue to face stiff competition in mainland China’s luxury goods retail market. New York-listed Alibaba, the parent company of the South China Morning Post, launched in April an enhanced loyalty programme under its New Retail business model, in which it aims to connect offline and online commerce through the use of big data and artificial intelligence. The programme will enable brands to create a more personalised and seamless online-to-offline experience for its top customers, which includes access to exclusive offers, celebrity events, flexible payment options, priority purchases and door-to-door returns. That would directly support the so-called Luxury Pavilion at Alibaba’s Tmall business-to-consumer online shopping platform, which was introduced in August last year to deliver brand exclusivity and tailored shopping experience that consumers typically receive in bricks-and-mortar stores. Still, L Catterton Asia remained optimistic about Secoo’s online retail growth prospects.
For the original version including any supplementary images or video, visit https://www.scmp.com/tech/e-commerce/article/2154505/chinese-luxury-retailer-secoo-drives-expansion-us175m-deal-jdcom-l
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