China: Online Giant JD.com Opens A New Office In Paris

As the world's second-largest luxury market, China represents new perspectives for the luxury brands to reach millions of potential consumers. According to the PwC Total Retail 2017 report, 93% of Chinese consumers have purchased luxury clothes, shoes or leather goods online which demonstrates the increased prominence of the e-commerce in the Chinese consumption process, now setting the benchmark for present and future global retailer.

After the deal concluded with Farfetch, the London-based fashion online retailer in June 2017, JD.com has been ramping up its efforts to secure the trust of both consumers and brands in the luxury sector.

The Paris office will help JD.com to strengthen its position, particularly in the fast growing sector of luxury, fashion, cosmetics, food, wine and spirits, but also to give to the company an in-depth understanding of the developments ambitions of its French partners, who are looking to access to the 266.3 million active Chinese consumers on The Paris office will help JD.com to strengthen its position, particularly in the fast growing sector of luxury, fashion, cosmetics, food, wine and spirits, but also to give to the company an in-depth understanding of the developments ambitions of its French partners, who are looking to access to the 266.3 million active Chinese consumers on JD.com.

This launch comes shortly after JD.com announced an ambitious agreement with Business France, the country's official trade promotion agency, to sell € 2 billion of French goods to Chinese consumers over the next 2 years. This partnership also includes the implementation of "one-stop shop" solution for French brands and retailers to get their products to Chinese consumers quickly and conveniently. In fact, the Chinese e-commerce shoppers are spoiled by the quality logistics services. On average Chinese e-consumers received their parcels on 2.6 days.

According to Florent Courau, the new managing director of JD.com in France: "Our Paris office will be committed to providing tailor-made support to our French partners who want to seize the immense opportunity that JD offers".

In this perspective, the French luxury brand Saint Laurent, which had no online presence before entering into the Chinese market, announced on last January 5 the opening of its first online store through TOPLIFE, the new luxury e-commerce site for high-end consumers launched by JD.com for the Single Day in 2017, joining the ranks of La Perla, Tod's, Emporio Armani, and more recently, Derek Lam. This "exclusive full-price online shopping platform" allows brands to sell directly to consumers through a luxury eco-system that incorporates premium customers service, "white glove" delivery service, marketing, warehousing and inventorying.

The company has also recently announced a partnership with French industrial engineering giant FIVES, to purchase another € 100 million in French industrial products.

This flurry of development comes after China's domestic luxury market achieved an estimated growth rate of 4% in 2016, following 2 years of decline due to the country's anti-corruption campaign and the increase of the prices in the luxury sector compared to abroad. As the Government has encouraged a repatriation of luxury spending through tariff adjustments and a crackdown on smuggling, brands are catching on that e-commerce is the next frontier for growth in this crucial market.

Then, after Alibaba (TMall, Taobao), WeChat, Huawei, Xiaomi and more recently the launch of the bike-shared Ofo and Mobike in several European capitals including Paris, JD.com is driving breakthrough growth opportunities to consolidate its presence of the European market and worldwide.

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