Cettire’s brands ranging from Balenciaga to Burberry will be available to mainland Chinese consumers in the second half of calendar year 2022.
“Our entry into China is an important step towards our goal of being the world’s largest luxury destination,” Mr. Mintz said.
“China represents a vast market opportunity, and it is central 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.
The JD.com e-commerce platform has 550 million active customers and is China’s largest online retail platform, with revenue of 745.8 billion yuan (1.66 billion) in fiscal year 2020. JD.com is a provider of supply chain-based technology and services to help brands and partners drive sales.
Through the Cettire partnership, Chinese consumers will have access to 1,700 luxury brands and after-sales support, the company said.
JD.com will help drive traffic, brand awareness and accelerate Cettire’s growth in China, with the opportunity for Cettire to leverage JD.com’s extensive local logistics capability, which provides one of the most largest execution infrastructures in the world.
At the end of 2021, Cettire hired local Chinese engineers in mainland China to support the development of website features specific to China and Chinese speakers globally, including the launch of Chinese language websites in all existing Cettire markets. .
Cettire does not hold its own inventory, with products ordered via its website and sent by third-party suppliers. The execution of Cettire is fully automated.
Unlike its biggest rival Farfetch, Cettire has only established one direct brand relationship with Italian Staff International. Brands like Gucci (owned by the French multinational Kering) have no say in the prices of their products on the Cettire market. Cettire has also geoblocked French and Italian IP addresses, making it harder for these fashion houses to see where the product is coming from.
The $892 million Cettire was advised by Highbury Partnership on the deal.