Alibaba’s Luxury Pavilion is now bridging a designer fashion trustworthy zone that Amazon hasn’t developed yet. The success of Alibaba’s Luxury Pavilion will likely prompt more luxury brands to sell on their platform.
Luxury Pavilion
Luxury Pavilion is available only on Tmall, a B2C marketplace for retailers. There are an estimated 14,500 brands (luxury and non-luxury) selling on the Tmall platform also owned by Alibaba.
Who Benefits?
Luxury brands specifically wanting to target high-end Chinese customers online who love to purchase luxury goods.
A competitor to Tmall would be a site such as JD.com and both offer mass-market platforms targeting luxury.
First
Luxury Pavilion is actually a separate hub within Tmall and has an improved user interface. Making it more exclusive and not for the masses.
Second
Brands can’t just sell on Luxury Pavilion, they must be selected by Alibaba…essentially, creating a better solution to select only the best premium luxury brands and defeating problematic counterfeiters attempting to sell on Luxury Pavilion.
Third
There is lots of data science going on behind the scenes at Luxury Pavilion….They offer a customer database that identifies only those consumers most likely to make a luxury purchase. Where paying social media influencers can’t offer this type of climate or data science approach.
Fourth
Who gets into Luxury Pavilion??
Alibaba will identify consumers who made past luxury purchases. This is based on their history and APASS (benefits granted to top spenders on Tmall).
Once a consumer is defined as a luxury spender, then the Luxury Pavilion access is granted by appearing on their desktop and mobile app options.
Luxury Pavilion Brands
At launch, there were top brands like Burberry, La Mer, Hugo Boss, Maserati, Guerlain, Zenith and more…all selling first quality merchandise directly on Luxury Pavilion!
Consumers with Luxury Pavilion access can buy everything from cars, fashion, skin care, leather goods, watches and more. All from within the Luxury Pavilion one stop location.