LVMH expands partnership with Alibaba as 618 sales soar

LVMH and Alibaba have expanded their partnership to use technology and innovation to improve the luxury shopping experience in China. 

This collaboration will utilise Alibaba’s cloud and AI technologies to enhance LVMH's omnichannel strategies and digital presence across China.  

The partnership, which initially began in 2019, has seen LVMH leveraging Alibaba Cloud’s AI capabilities, such as the generative AI platform Qwen, to create bespoke luxury shopping experiences.  

"Alibaba is already a key partner for our Maisons and for the Group. The reinforcement of our partnership will help us to further accelerate our omnichannel business growth," said Stephane Bianchi, the group managing director of LVMH. 

Eddie Wu, CEO of Alibaba, expressed enthusiasm about the partnership's potential to transform luxury retail experiences.  

"This comprehensive partnership has elevated the retail experience for LVMH’s customers worldwide, including China-based consumers on Tmall," Wu noted. 

As part of the expanded partnership, LVMH has integrated its operations with Tmall’s Luxury Pavilion, which allows for exclusive digital initiatives such as 3D product displays and livestreaming events, thereby reaching millions of consumers. 

Luxury brands showcase strong numbers on 618

In related news, the 618 sales event, hosted annually by ecommerce platforms in China, including Alibaba on its platforms Taobao and Tmall, commenced on May 20. 

Based on information from a press release, within the first four hours of the event, 59 brands surpassed 100 million RMB ($14.1 million) in gross merchandise value (GMV), with 376 different products reaching over 10 million RMB ($1.4 million) in GMV. Apple, in particular, achieved a sales milestone, reaching over 1.5 billion RMB in GMV within just an hour of the event's start, outperforming its Chinese competitors.  

This event also saw a notable increase in the performance of small businesses, with approximately 370,000 reporting a doubling in their GMV from the previous year. 

This year, major platforms like Alibaba and JD.com eliminated the traditional pre-sales period, opting instead to offer direct discounts.

According to Alibaba, over 200 luxury brands from major players like LVMH, Kering, Chanel, Hermes and Richemont participated on its platforms, with their brands like Miu Miu and Valentino recording sales in the first hour that surpassed the sales from the first day last year's event. 

As of noon on May 21, brands like Prada, Valentino, Emporio Armani, Ralph Lauren, Marni, and MCM were leading in total sales (GMV) on Alibaba’s platforms. Xiaohongshu, also known as Little Red Book, reported a significant increase in GMV and orders during its second 6.18 shopping festival, with GMV increasing six-fold and orders rising over eight-fold from the previous year on the first day.  

Meanwhile, Pinduoduo also commenced its 6.18 sales but has yet to publish any sales data, and JD.com plans to start its sales on May 31.