LVMH expands cooperation with Alibaba as sales increase 618 units

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

This collaboration will leverage Alibaba’s cloud technologies and artificial intelligence to enhance LVMH’s omnichannel strategy and digital presence in China.

As part of the partnership, which launched in 2019, LVMH leveraged Alibaba Cloud’s AI capabilities, such as Qwen’s generative platform, to create customized luxury shopping experiences.

“Alibaba is already a key partner of our Maisons and the Group. Strengthening our partnership will help us further accelerate the development of our omnichannel business,” said Stephane Bianchi, Managing Director of the LVMH Group.

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

“This comprehensive partnership has enhanced the retail experience for LVMH customers around the world, including Chinese consumers using Tmall,” Wu noted.

As part of the expanded partnership, LVMH has integrated its operations with the luxury Tmall pavilion, which enables exclusive digital initiatives such as 3D product presentations and live-streamed events, thus reaching millions of consumers.

Luxury brands show strong numbers at 618

In related news, the 618 sales event, held annually by e-commerce platforms in China including Alibaba on Taobao and Tmall, started on May 20.

According to the press release, in the first four hours of the event, 59 brands exceeded RMB 100 million ($14.1 million) in gross merchandise value (GMV), and 376 different products achieved more than RMB 10 million. ($1.4 million) in GMV. Apple, in particular, achieved a sales milestone, reaching over RMB 1.5 billion in GMV within just an hour of the event’s launch, outperforming its Chinese competitors.

The event also saw a noticeable increase in small business performance, with approximately 370,000 companies reporting a doubling of their GMV compared to the previous year.

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

According to Alibaba, more than 200 luxury brands from major players such as LVMH, Kering, Chanel, Hermes and Richemont participated on its platforms, and their brands such as Miu Miu and Valentino saw first-day sales that exceeded all sales from last year’s event.

As of noon on May 21, brands such as Prada, Valentino, Emporio Armani, Ralph Lauren, Marni and MCM were leaders in total sales (GMV) on Alibaba’s platforms. Xiaohongshu, also known as Little Red Book, saw a significant increase in GMV and orders during the second 6.18 shopping festival, with GMV increasing six times and orders more than eight times on the first day compared to the previous year.

Meanwhile, Pinduoduo has also started selling version 6.18, but has not released any sales data yet, and JD.com plans to start selling on May 31.