Chinese e-commerce giant Alibaba has reportedly announced a partnership with Swiss luxury goods group Richemont for the purpose of developing platforms in China for high-end products.
According to the deal, Richemont’s online unit Yoox-net-a-porter and Alibaba will set up a joint venture with two mobile phone applications that are Net-a-Porter and Mr Porter. This is basically being done to serve the Chinese market.
The two companies Net-a-porter and Mr Porter will also be made available on Alibaba’s specialist luxury site, Tmall Luxury Pavilion that was started last year. Also, the companies have agreed to explore other opportunities to develop the luxury goods market in China.
“Our digital offer in China is just getting started,” Richemont chief Johann Rupert said.
Richemont, ranked second only to French giant LVMH, has recently paid more attention to online sales, a booming sector in the luxury goods industry and where China is seen as one of the most important markets. Its Net-a-Porter platform carries its own brands plus rivals’ with an aim to become a one-stop shop for the fashion conscious.
Alibaba is one of the world’s largest e-commerce companies with sales of nearly $40 billion in its last financial year to March 2018.