Alibaba Partner With Richemont To Overtake China's Online Luxury Marketplace Says KLM Holdings

TOKYO, Oct. 26, 2018 /CNW/ - Japanese wealth management company KLM Holdings has commented on Richemont, who owns luxury goods companies such as Cartier, which is entering a strategic partnership with Chinese e-commerce giant Alibaba.

The joint partnership will look to takeover the online shopping market space for luxury goods, which will be a major catalyst of growth for both companies that has been a difficult area in the past for a lot of companies.

Researchers at KLM Holdings have noted that Alibaba, China's biggest e-commerce platform, will look to launch mobile applications to start the multi-brand store.

"When we talk about Chinese consumers we understand that on a global scale over a third of all luxury goods purchased are from China. This is a hot market place that many companies have not been successful in obtaining," noted Mr Rikiya, a key research analyst from the Japanese-based wealth management company KLM Holdings.

With more shoppers spending in Mainland China on luxury goods such as high-end watches and jewelery, the increase has come from prices leveling out over the last few years that were much higher than other neighboring countries.

The shift for the expensive market space is leaning to online marketplaces, with manufacturers applying more capital into advertising streams such as social media applications.

A senior chief economist at KLM Holdings, Nathan Chambers, commented, "Any market in China is vast and extremely difficult to takeover, with Richemont partnering with the biggest, most successful company in China, Alibaba, who have time and time again proven that they have a firm understanding of Chinese e-commerce.

In 2017 China's second largest e-commerce company, JD.com, a fierce rival of Alibaba, had already invested just shy of $400 million U.S. dollars in a fashion retailer Farfetch to assist the company's global reach.

SOURCE Dynamic-marketing Inc.