According to the data released by Hermes in the first half of the year, the operating profit margin of the Chinese consumers is 34.5%, exceeding analysts’ expectations. And a high record of net profit recorded 780 million euros
Luxury brands including Hermes are paying more and more attention to the development of the Chinese market. Since last year, Hermes, a luxury brand with more than 170 years of history has begun to loosen its attitude towards E-commerce.
Recently, Hermes Group CEO Axel Dumas said that it is considering selling products in China through the JDplatform, which means that the last bastion of the luxury goods industry to refuse to enter the Chinese E-commerce platform will be broken.
However, Hermes’ pressure is still under pressure, brands such as Balenciaga, Saint Laurent, Chanel, Louis Vuitton, and Gucci are all developing towards youthfulness. Attracting new customers is a must. Axel Dumas said that the new official Chinese website is Hermes’ important way to expand its customer base, it is expected that 78% of the channel will be new customers.
Axel Dumas also said that in order to attract customers to the official website, it does not rule out cooperation with luxury platforms such as Tmall Luxury Pavillion or JD.com’s Toplife. “But it must be discussed in detail. We must have strict control over selection, display, and pricing. “
In August of this year, Hermès’ Chinese luxury brands entered the JD official website and TOPLIFE.
Why did Hermès refuse to enter the Chinese E-commerce platform, and now finally willing to submit?
The proportion of luxury online sales will increase from 7% in 2015 to 12% in 2020 and will account for 40% of the total new market. From Hermès’ own point of view, in March of this year, the official website of the European official website, the traffic has declined, but now it has risen sharply. Making Hermès consider joining the Chinese E-commerce platform.
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