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Richemont and Alibaba Join Hands for China E-Retail
Johann Rupert, chairman of Richemont, said: “Chinese customers at home and abroad are an increasingly important customer base for Richemont and for the broader luxury industry. Our digital offering in China is in its infancy and we believe that partnering with Alibaba will enable us to become a significant and sustainable online player in this market.” The Asia Pacific region (excluding Japan) is Richemont’s most important market, accounting for 40 percent of the Group’s sales. Europe accounted for 27 percent, followed by the USA at 16 percent.
For the financial year ended March 2018, Richemont Group reported a profit of $1.4 billion, a growth of 1 percent from the previous year. Available results for LVMH and Swatch Group showed 18 percent and 27 percent growth in profits, respectively. With Richemont’s investments, it’d be most interesting to see the extent to which strategic placements in the digital sphere can reap gains on the market while growing it. No one will be standing still. But already, the Chinese consumer has taken to swiping his phone for everything from paper towels to furniture. A luxury watch follows, most naturally.