LONDON — Chinese e-commerce giant JD.com on Friday will reveal a new partnership with the British Fashion Council, WWD has learned.
It will become the official Asian online retail partner for London Fashion Week, and host a fashion show on Sunday.
The renewed alliance aims to enhance the presence of British and international fashion brands in the Chinese market and create a global platform for Chinese and Asian designers, JD.com said.
Caroline Rush, chief executive officer of the BFC, said the partnership provides emerging designers and brands with a platform that “facilitates smoother collaborations across borders but also amplifies their exposure in the crucial Chinese market.”
The partnership is part of JD.com’s pledges of money and resources worth up to 1 billion renminbi, or $140 million, to the industry overall.
“Fashion has always been regarded as a very important part of our business,” said Sherrin Kong, vice president of JD.com and president of JD Fashion.
Since the start of the year, JD.com has seen a 60 percent uptick in the number of leading apparel and footwear brands and a 200 percent jump in the number of third-party apparel merchants on the platform, she added.
Kong said the $140 million will be used to populate the site with more fashion items from around the world, and to satisfy JD.com’s 600 million annual active users in China.
“As the second fashion market in the world, there is a big appetite for niche, designer brands in China. We are in a unique position to utilize our digital e-commerce capabilities to help them find their corresponding customers,” Kong said.
She added that JD.com can also leverage its on-the-ground, sophisticated supply chain operations and help independent designers who perhaps cannot afford a local e-commerce partner.
The company has looking at other ways to get more brands on the site. Earlier this year JD.com began experimenting with sourcing fashion from brands directly, working with buyers stationed in London, Milan and Paris.
In January, JD.com launched its first fashion goods cross-border direct procurement warehouse in suburban Paris. The 32,300-square-foot facility in Val-d’Oise provides fulfillment solutions for European brands that want to sell directly to Chinese consumers.
“In a way, we have an in-house operation team. Brands can entrust us with their products and we can provide a series of services including marketing, logistics, customer service and returns, in addition to discounts on commission charges. We have received positive feedback so far since we can shorten the journey from brand to customer and improve efficiency in the process,” Kong said.
As part of the wider investment, JD.com will offer additional incentives, such as daily opportunities for customers to enjoy a 30 renminbi discount on purchases of 300 renminbi, or more.
JD.com’s latest fashion campaign.
Courtesy
A big chunk of the investment pledge will go into consumer education as well.
“JD.com is heavily associated with selling electronic appliances. How to persuade our existing customers to shop fashion will be the next subject that we as a team are going to solve,” Kong added.
JD.com is no stranger to global fashion partnerships. Since 2015 it has done events in Milan, London and New York. In 2019, it signed a three-year partnership with London Fashion Week to become its exclusive Chinese retail partner.
With the pandemic now consigned to the past, Kong said it’s high time for JD.com to resume its commitment to London with this new partnership.
On Sunday morning, it will host a fashion show at Somerset House spotlighting leading Chinese brands Ellassay, Marisfrolg and Pure Tea. JD.com is also promoting the Korean brand Hazzys, which does most of its business in China through a licensing deal with the apparel giant Saint Angelo.
“These brands have a strong presence in China. We are here to help them to find the perfect place for them to raise brand awareness on a global stage,” said Kong, adding that JD.com plans to host intimate exhibitions in Paris to showcase customers’ newfound appreciation for traditional arts and crafts.
Hazzys by JD.com spring 2020
Aitor Rosas Sune/WWD
During her European trip, Kong has meetings lined up with luxury heads as well.
“They know China is important for their business, but they won’t be able to get the full picture just from a few pages of a report from the China team. When they meet with us, we share direct and valuable insight into Chinese consumers and their spending habits. From that, we help them come up with products designed to meet the demand on the ground,” she added.
JD.com has been gaining ground with top-tier luxury players as well.
After its archrival Alibaba was fined $2.78 billion for monopolistic behaviors in 2021, JD.com welcomed Louis Vuitton into its orbit.
Balenciaga, meanwhile, has become the latest brand to open a flagship store on the platform, showcasing an extensive range of items from the fall 2024 collection, and the brand’s latest Stapler Sneaker.
Kong describes the partnerships between JD.com and luxury brands as mutually beneficial. More than 90 percent of the world’s leading luxury brands now sell on JD.com, she claimed.
“It’s been tough for brands this year, but we have been able to grow. What major players like LVMH see in us is our expansive reach. Not only have we got all the first-tier cities covered, but we have penetrated all the lower-tier cities, even villages. Our logistics covers 99 percent of China. No matter where you are, as long as you open the JD.com app, you will be able to place an order,” Kong said.
Kong argued that JD.com also serves as a powerful tool for new user acquisition. Kong said more than 85 percent of the shoppers on JD.com are new to the brands, and around 70 percent of them are between 18 and 35 years old.
The platform’s high level of awareness among university students — more than half of China’s college freshmen purchase personal computers from JD.com each year, according to Kong — also means JD.com can identify and nurture future big spenders from an early stage, a valuable resource brands can tap into.