Chinese e-commerce giant Alibaba’s Luxury Pavilion supports brands in delivering experiences and services to top customers through the launch of a loyalty program.
Launched last year, Luxury Pavilion today sells merchandise from almost 50 luxury brands, including Burberry and Maserati. Through the newly created Luxury Pavilion Club loyalty program, shoppers will gain access to perks such as exclusive offers, celebrity events and door-to-door returns.
“The launch of Luxury Pavilion Club is the latest move from Alibaba to bring the online shopping experience to a new level with a premium touch,” said Jessica Liu, president of Tmall fashion and luxury, during a launch ceremony in Shanghai on April 11.
Luxury Pavilion is an invite-only platform on Alibaba’s Tmall. More than 100,000 of Luxury Pavilion’s customers spend $159,000 or more a year.
Looking to better cater to these top shoppers and bridge the online and offline experience for luxury brands, Luxury Pavilion has launched its own loyalty program.
Those who are in Luxury Pavilion will be automatically enrolled in the program, which provides services such as flexible payment options and priority purchases.
The tiered program’s premier level unlocks benefits such as exclusive offers for Luxury Pavilion or a personal shopping concierge and experiences such as a spa treatment at the Four Seasons.
Reflecting the growing importance of younger generations to the luxury market, half of shoppers across Alibaba’s platforms were born after 1990. This age group also accounts for one-third of Luxury Pavilion’s customer base.
Helping brands to reach this “new middle class” with growing spending power, Alibaba is leveraging its Uni Marketing platform. By using analytics and customer data, the platform helps brands target potential clients.
The 28 Luxury Pavilion brands that have used Uni Marketing have reached an average of 6.5 million customers.
“[We want to] better serve the 100 million consumers that form the ‘New Middle Class,’ and help them move closer to the lifestyle of their dreams,” said Jet Jing, president of Tmall, during the presentation.
China’s spectacular growth in luxury consumption recently is primarily driven by Chinese women buying ready-to-wear fashion, jewelry and cosmetics, according to Bain & Company.
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