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Chinese luxury retailer Secoo drives expansion via US$175m deal with, L Catterton

The investment made by in Secoo marked the Chinese online shopping giant’s first luxury market-related deal after it sold Google a US$550 million stake in the company last month. The Secoo deal also represented’s latest push into that sector after it paid US$397 million in June last year for a stake in Farfetch, the London-based luxury fashion e-commerce service provider. Both Nasdaq-traded and Alibaba Group Holding have been investing heavily to compete for premium shoppers as Chinese consumers already make up 32 per cent of the global luxury market, a number that is predicted to rise to 40 per cent by 2024, according to a report published in May by the Boston Consulting Group and Altagamma, the trade association for the Italian luxury industry. About 55 per cent of all luxury purchases in the world are now made on a mobile device, according to the report. For Chinese consumers, that figure rose to 77 per cent because of the vast penetration of smartphones in the world’s second-largest economy. hastens e-commerce race in Southeast Asia with US$550 million stake sale to Google “Chinese consumers are increasingly discerning about their luxury purchases, demanding more variety and choice than ever,” said Hu Shengli, the president of’s fashion and lifestyle division. “As we look to continue to meet this demand, we see many potential areas for future collaboration with Secoo.” Beijing-based Secoo runs an integrated online and offline shopping platform, which consists of, mobile applications and so-called offline experience centres. Across that platform, the company offers more than 300,000 different merchandise or stock keeping units, which cover more than 3,000 global and Chinese brands. Secoo’s gross merchandise volume reached 1.1 billion yuan (US$165 million) in the first quarter, up 43.2 per cent from the same period last year. Its net income increased 10.2 per cent to 25.9 million yuan in the first three months of this year, according to the company. Chinese consumers are increasingly discerning about their luxury purchases, demanding more variety and choice than ever Hu Shengli, president of’s fashion and lifestyle unit Secoo and, however, will continue to face stiff competition in mainland China’s luxury goods retail market.

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