The Silicon Review
To enhance our exclusive service, we collaborate with Versace, Ferragamo and other luxury brands to provide two-hour delivery, at-scene measuring and modification and style advice: Li Rixue
China has become the biggest luxury consumption market. The people of the country, especially the younger generation, seek top/niche brands as a symbol of a premium lifestyle. China’s luxury market, especially the e-Commerce market witnesses tremendous opportunities as the major consumption force changes to the 70’s and 80’s generations who rely heavily both on online purchase and offline experience.
Secoo Group operates an integrated online and offline shopping platform in the People’s Republic of China and internationally. The company provides upscale brand products and services, including bags, watches, women’s and men’s wear, footwear, children’s wear, sportswear, cosmetics and skin care products, jewelry, accessories, automobiles, home goods, fine food and beverage products, arts, and Chinese original products, as well as lifestyle services through its website, mobile applications, and offline experience centers. Secoo also offers its website as a marketplace to third-party merchants to facilitate their sales of upscale products and services.
The company was incorporated in 2008 and is headquartered in Beijing, China.
Li Rixue, Secoo Group CEO/Founder, spoke exclusively to The Silicon Review. Below is an excerpt.
What is the current market scenario? And what is your company’s position in the market?
Secoo has enjoyed a steady and fast growth in the past decade and is now the biggest vertical selling e-commerce player in the luxury sector in China, with an over 25 percent market share. In Q1 2018, Secoo reported $178.5 million dollars of Gross Merchandise Volume, up 43.2 percent from Q1 2017; total net revenue of $127.9 million dollars, up 42.8 percent; total order number of 306,100, up 45.3 percent.
While the global luxury market volume experienced a slight one percent drop in 2016, China’s luxury market still increased by six percent to reach $18.1 billion, among which China’s luxury e-commerce market reached $8.6 billion, representing an 80.2 percent increase from the previous year, according to 2017 China Luxury e-commerce Whitebook.
What are the factors/elements that make your company stand out from the competition?
Secoo is constantly expanding to other luxury sectors and services apart from fashion and cosmetics to diversify its network of channels. The company also provides valuable services and relevant products to its consumers, including customized travel, individualized education, and personal shopping services. This diversifies Secoo’s offering while maintaining a premium level, as well as giving its consumers much more than purely a purchasing channel.
Moreover, the company launched a blockchain-based authentication system to label products with the exclusive digital information to guarantee that every product bought by a customer is real and not swapped.
“With our consistent focus on both the diversity and quality of the products and services that we offer to our customers, we are well positioned to capture emerging opportunities driven by the consumption upgrade in China and unlock value both to our customers and investors.”
Tell us about Secoo’s partners/collaborators?
Secoo has been establishing partnerships with various conglomerates to expand channels, including Parkson Retail Group (cosmetic products), Capital Outlets Group (brands entry), Caissa Travel (customized travel service), and Pernod Richard (alcohol products).
In addition, Secoo collaborates with independent designers to provide uniqueness and exclusivity to consumers. For example, in April this year, the company announced a collaboration with fashion brand Emotionally Unavailable, which is operated by Hong Kong actor and fashion icon Edison Chen and KB Lee, to release limited products designed by Edison Chen himself. The firm also selected a well-known popular idol group ‘YueHua OT7’ as new brand ambassadors to appeal to the younger generation.
Secoo even launched its cocktail brand ‘24/7 by Secoo’ at the Design of Shanghai, which was promoted through its bar partnerships, including one of Asia’s Best 50 Bars, Janes and Hooch in Beijing. The firm plans to build more pop-up bars to combine alcohol, gourmet and art, providing a new alternative to the traditional e-commerce and offline shopping experience. The first Secoo bar has already opened at Sunlitun area in Beijing.
“To enhance our exclusive service, we collaborate with Versace, Ferragamo and other luxury brands to provide two-hour delivery, at-scene measuring and modification and style advice.”
Do you have any new products/services ready to be launched?
In order to mark the accomplishments the company made during this decade, Secoo is launching a carnival promotion on its online platform and is actively reinforcing its partnerships with independent designers as well as retail conglomerates in various luxury sectors for greater diversity and future growth.
For the future development, Secoo keeps expanding into more areas and collaborating with more partnerships. The company just got $175 million investment from L Catterton Asia (LVMH Group) and JD.com. And it signed a strategic agreement with Shandong Ruyi Group, China’s largest fashion group.
Li Rixue: A Brief Background
Li Rixue, also known as Richard, had been engaged in the retail and recycling business of home appliances in China since 1998. He graduated from Nanchang University in 1996 and has an EMBA from Tsinghua University.