What: China has become a showcase for the Geneva-based group’s online offerings.

Why is it important: China is expected to account for half of the group sales by 2025.

China has become a showcase for the Geneva-based group’s online offerings. For the overall luxury sector, China is expected to account for half of global sales by 2025. Many of Richemont’s businesses have been the first to experiment with the newest digital engagement tools on Tmall Luxury Pavilion, Alibaba’s dedicated platform for high-end goods.

Alibaba is the preferred online shopping destination in China today. The collaboration between the two companies started with a joint venture, aiming to develop the Net-a-Porter and Mr Porter’s business in China. Net-a-Porter’s flagship store on Tmall Luxury Pavilion launched in September. The success has proven the value of the platform in extending the presence of Richemont’s businesses in China, including Cartier, Montblanc, Piaget, IWC Schaffhausen and Jaeger-LeCoultre. Nine houses were launched on the platform, which shows a strong willingness to grow quickly and scale the collaboration.

Chinese clients are sophisticated and increasingly demanding, which is why some of the best experiences today are first introduced in China. Clients there are very tech-savvy and open to new technologies, which allows Richemont to elevate the level of interaction. They are also younger than the rest of the world, which requires an adaptation of communication tools and approach to the specificities of a younger generation. Chinese consumers also have a strong appetite for new experiences. This curiosity and capability to adapt constantly raise the bar for all brands. Innovative features can be quickly developed and tested in the market, also at a large scale.

Richemont’s idea is also to make greater use of ecosystem resources within the Alibaba Business Operating System, which offers a fantastic opportunity to elevate omnichannel experiences. Also, TimeVallée (Richemont’s innovative multibrand watch retail concept open to all high-end watchmakers) has signed a partnership with Intime, Alibaba’s department store chain. This provides access to Intime’s physical and mobile shelf space and offers an experience to more consumers, both online and offline.

Working with Alibaba allows a time contraction. What usually takes twelve months to bring a new experience, now condensed to one month because of the intensity and the scale of the network that Alibaba offers. Partnering with Alibaba also revealed the immense possibilities beyond tier-one and tier-two cities. Relying on brick-and-mortar is limiting consumers’ access to brands, and the partnership helped confirm a good amount of interest and opportunities in tier-three and tier-four cities as well.

Richemont CEO Jérôme Lambert Talks Refining Digital with Alibaba