February 4, 2021 – Coty Inc. (NYSE: COTY), one of the world’s leading beauty companies and the global leader in fragrances, announced the opening of the Gucci Beauty flagship store on the Tmall Luxury Pavilion, Alibaba’s dedicated platform for the world’s leading luxury and premium brands.
To join the Tmall Luxury Pavilion, Gucci marks the beginning of a deepened strategic partnership with China’s leading e-commerce platform. In addition to the fashion store, Gucci’s beauty flagship store will open in February 2021, providing Chinese consumers with exclusive access to Gucci’s full range of make-up and fragrances.
“In China, you need to be ubiquitous to get noticed,” says James Hebbert, managing director of Chinese digital agency Hylink Digital Solutions, whose clients include Chanel, Harvey Nichols and Tom Ford. “In the West, we assume exclusivity means only being accessible in one place, but research shows that the Chinese consumer will have at least 16 touchpoints before committing to a purchase.”
Michael Evans, President of Alibaba Group, said: “As Chinese consumers look to engage with iconic brands like Gucci and Gucci Beauty, they expect an experience that is digitally sophisticated and seamless. Following Gucci’s successful launch on the Tmall Luxury Pavilion, we are delighted to work with Gucci Beauty as they build even greater engagement and success in China.”
Following a slow start to luxury sales in China due to the pandemic’s lockdowns, spending on luxury in the country has rebounded strongly as Chinese consumers purchase more luxury goods domestically rather than abroad due to travel restrictions. The global luxury market shrank by 23% in 2020, but mainland China’s market share nearly doubled, growing from about 11% last year to 20% in 2020, according to the report produced by Bain & Company and Tmall Luxury Division.
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