French brand Saint Laurent launches online sales in China

Almaty. July 31. Silkroadnews – The French brand Saint Laurent launches online sales in China, Market Watch news portal reported.
“French fashion house Saint Laurent is launching online sales in China, a major step in the storied brand's efforts to expand in China's rapidly growing domestic market”, report said.
It is noted that, according to the chief executive of Saint Laurent Francesca Bellettini, for online sales in China, the brand cooperates with the online fashion retailer Farfetch. The brand will sell products on a new online platform recently announced by Farfetch in a joint venture with JD.com, the second largest e-commerce company in China.
As the publication notes, “the announcement marks a cautious foray into China's freewheeling internet market by one of the most elite brands in fashion. Until relatively recently, luxury firms had been reluctant to sell over the internet in China because of concerns that China's main online retailers, JD.com and Alibaba Group Holding Ltd., run marketplaces that are riddled with counterfeit goods. Only a few luxury brands have the size to attempt online sales in China without teaming up with either e-commerce giant. But Farfetch's partnership with JD.com helped ease concerns about knockoffs, Saint Laurent said”.
According to the publication, Chinese consumers, who account for 30% of global luxury spendings, are increasingly shopping at home, in part because of Beijing’s efforts to stop importation of expensive goods from abroad by tourists. Thus, online sales in China have become a key to the growth of the luxury industry.
It is reported that sales of luxury goods have grown in recent years in China.
“Ms. Bellettini said Saint Laurent’s sales to Chinese consumers have surged in recent years despite a slowdown in the global luxury market. Kering Co., which owns Saint Laurent, Gucci and other brands, last week reported that sales rose “sharply” across Asia, “particularly in mainland China””, publication says.
It is noted that Saint Laurent adheres to a relatively conservative approach to expansion in China. It has only 18 stores in the country, concentrated in Beijing and Shanghai, compared to dozens, open by such competitors as Prada SpA and Louis Vuitton. However, the beginning of online sales will help the brand to get customers in small cities of China, without risking overextension.
Publication says, “Saint Laurent is pledging same-day delivery in Beijing, Shanghai and Hong Kong. Starting in October, the brand aims to offer delivery within 90 minutes in those three cities”.
Reportedly, luxury brands had a tumultuous relationship with Chinese e-commerce companies, in particular with Alibaba. KeringCo. sued Alibaba in 2015 in a federal court in New York, saying that the Chinese company is in collusion with the manufacturers of counterfeit versions of branded goods. Alibaba has denied the accusations, but the court dismissed the complaint in part only.