Italian luxury group Prada has forged its first partnership with a Chinese e-commerce platform, tying a knot with Secoo, one of China’s largest luxury-focused e-commerce sites, to offer Prada and Miumiu products on the portal.
Launched in 2008 as an online consignment store for luxury items, Secoo has grown into a destination for all things luxury, from material goods to experiences and lifestyle services. Its investors include L Catterton, the private equity arm of the LVMH group, and JD.com, which supports Secoo’s logistics services.
The platform posted strong numbers in its most recent quarter: GMV reached RMB 3.08 billion (USD 448 million) in the fourth quarter of 2018, up 58.5% year-on-year; total orders rose 72% to 945,200; the number of active customers increased 79.9% to 406,000; while total revenue reached RMB 1.79 billion (USD 260 million).
Chinese customers domestic and abroad spent RMB 770 billion (USD 114 billion) on luxury goods last year, representing one-third of global luxury sales, according to McKinsey. The market is expected to reach RMB 1.2 trillion (USD 180 billion) in 2025 and account for 65% of the sector’s global growth.