What: An expanded reach in China for Gucci, a position consolidation for Ali Baba

Why it is important: at a moment when e-commerce is consolidating worldwide, Ali Baba confirms its central position in the game, by teaming up with a luxury giant, even though the brand already has its own operations

Gucci will launch two flagships on Tmall, the first one dedicated to Fashion on 21 December, and the second one, in coordination with licencee Coty, in February for its beauty products. Interestingly, it comes as a complement to the already existing infrastructure Gucci built in China, with dedicated business unit, website, marketing approach, products.

This agreement comes at an opportunistic moment, as Kering, owner of Gucci, had previously stated in the past that it would never work with Ali Baba due to concerns over counterfeit goods sold on Tmall’s various platforms. As Bain estimates that in 2025, Chinese customers will represent 50% of the luxury business, and 30% of purchases in China, it seems that Gucci is adopting a pragmatic attitude in order to preserve its growth reservoir.

This partnership confirms the prevalence of Ali Baba, which, through its recent partnership with Farfetch and YNAP, is moving fast to be at the center of the worldwide luxury e-commerce business.

Gucci Inks Partnership With Alibaba’s Tmall

Gucci targets China’s post-Covid luxury surge with Alibaba tie-up