It is reported on 24th Oct. that recently in the 5th anniversary of Michael Kors’ China areas, Li Dakang the CEO of Asian-Pacific area said “Any luxury brand would like to make up 10%-20% of the total sales online, but all cannot avoid Tmall, which is under Ali.”
The China market is more and more important for Michael Kors. On this celebration, Michael Kors declares that its official website for online shopping is put in use, which improves its retail channels. Even though, Michael Kors indicates that if more market shares are wanted, it is impossible to avoid the cooperation with Tmall.
What is interesting is that in this May, Michael Kors announced to be out of IACC because of its dissatisfaction of Ali’s entry of IACC, which spread very popular at that time. But now, what Li Kangda does here is intended to create the cooperation space for Michael Kors and Tmall.
In fact, Michael Kors has already started cooperation with Meilihui, a platform of luxury brand under Ali. Li said in his interview that Meilihui is for MK’s out of season products with large discounts.
With the improvement of consuming in China, the demand for online shopping is getting larger and larger. Both the luxury brands and light luxury brands are understanding the online shopping better and better. They not only put the out of season products on line for promotion but also sell the latest products on line.
Before Michael Kors’s entry into China market, other luxury brands have already built good foundation in China, gaining lots of customers. As for the online shopping, these luxury brands are more active than Michael Kors, working closely with Tmall, Meilihui and other platforms. Up to now, Burberry, HUGO BOSS, LA MER, Maserati, LVMH and other groups have started strategic cooperation with Tmall.
On the Global Trend Festival of Nov. 11 in Tmall, Burberry, Maserati, Guerlain and other 50 top brand in the world released their new product on site. This 8-hour fashion show is live broadcast on Tmall app on cellphone. The customers can sit at home and watch on their phones. They can even buy the latest products at first time through “showing and buying”.
Dai Yanting, the general manager of Guerlain of China market, said through the festival, Guerlain can build a platform of interactions between online and offline, interpret the luxury sales in new perspective, and make the young concepts into the brands.
Experts believe that what Tmall can offer to the brands is not only limited to the sales channel. It is a platform for great promotion and interactions of customers. Based on the support of big data, it can describe accurately of the users, and predict the trends, which are what the luxury brands need immediately.
It is known that Michael Kors was founded in 1981 as the luxury accessory brand by Michael Kors. Its headquarter is located in New York city, with over 500 stores in 89 countries. In 2011, Michael Kors officially stepped into China. Only within 5 years, it has more than 100 stores with sales revenue over 0.2 billion dollars.