Despite living in track pants for the majority of the last few years, the retail fashion industry is very much thriving. Now that we have dusted off the proverbial cobwebs from the nicer side of our wardrobes, global luxury online retailer Cettire (ASX:CTT) is expanding.
With Mainland China set to become the world’s largest market for personal luxury goods, representing 25% of the $600 billion global market, the country seems like an apt choice.
The retailer estimates the size of their market opportunity to grow a huge $150 billion with the expansion which will be facilitated through a partnership with JD.com, a popular Chinese e-commerce platform.
JD.com boasts more than 550 million active customers making it China’s biggest online retail marketplace. Cettire will list their extensive range of luxury products on the site whilst JD.com will bring customers and help drive brand awareness as well as provide local logistics management in one of the world’s biggest fulfillment infrastructures.
In anticipation of increased demand, the Company has increased their headcount in the country, specifically with engineering talent. This will hopefully facilitate the expansion to roll out smoothly by using local talent to adapt Cettire sites and processes with the Chinese market in mind. Certain features will be developed specifically for this new market including websites in Chinese, making the site more accessible for the market.
Founder and CEO of Cettire, Dean Mintz said: “Our entry into China is a significant milestone towards our goal of being the world’s largest luxury destination. China represents a vast market opportunity and it is core to our strategy to make our world class proposition available to additional markets. Today’s announcement is another step in our strategic journey to achieve this goal.
“We are very delighted to be announcing this partnership with JD.com. The partnership represents the first step in our china market entry and provides an opportunity to test and learn the market with the support of an exceptional partner with significant market presence.”
The news of their new market entry comes following a strong six months where the Company reported a 192% increase in gross revenue underpinned by huge growth in active customers (208%) and unique website visits (304%). The Company holds $55.5 million as at 31st December 2021 which will be utilised to invest in the Chinese market.
Samantha Freidin is a business journalist at Emerald Financial whilst also completing a Masters of Marketing and Digital Communications at Monash University.
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