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Business / Companies

More than 200 luxury brands to sell on 5LUX.com

By Chen Yingqun (chinadaily.com.cn) Updated: 2015-11-26 20:38

More than 200 luxury brands will sell their products through the Chinese luxury e-commerce platform 5LUX.com, Sun Yafei, CEO of 5LUX.com said.

Sun said 5LUX.com is to launch a new online to offline (O2O) business model. The company has secured financing of tens of millions of yuan from two investors Yuanshi Capital and Huanliu Capital.

5LUX.com was launched seven years ago by Sun Yafei, and in the past, would get luxury goods from makers and dealers domestically and overseas, and then sell to customers. But Sun says under the new O2O model, 5LUX.com will be an online bazaar for famous brands.

According to a report by Beijing-based Fortune Character Institute, 83 percent of luxury brands have closed retail outlets in China this year and closures will continue. It predicted more overhauls of existing shops to focus on experience and service as more consumers opt to purchase online.

Sun says that unlike before, the e-commerce model has been gradually accepted by luxury brands. The company has now cooperated with about 200 middle- and high-end brands, and aims to convince about 2,000 brands to sell through its website.

In the new O2O model, shopping will be more about service and experience. For example, if a woman wants to buy an evening dress, she could browse the website and book the dress. Then she would go to the store, where the salesman has already prepared the dress and other accessories to go with it, and also additional dresses she might like. She could try on the dress and make suggestions for any improvement. During the process, she would also enjoy services that would make the shopping experience memorable, for example, getting her favorite coffee.

"Luxury products in China have been frequently questioned for their authenticity and quality, which makes it difficult for clients to distinguish and sellers to prove. Under the new model, these doubts will be removed, as customers will get products directly from the store," Sun says.

"I'm quite optimistic about this O2O model. We will cooperate with 5LUX.com, in the hope to bring the best quality and service to customers, and to provide brand-new shopping experiences," says Ren Wei, general manager of Hengdeli Holdings Ltd, one of the world's largest retailers of internationally renowned watch brands.

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