Cettire is taking itself abroad with a strategic partnership with JD.com, entering the Chinese market, which is expected to be the largest market for luxury goods.
The luxury e-tailer signed a deal with the major Chinese e-commerce platform, JD.com, which has helped increase its share price following a tumble last week.
The luxury online retailer recently shared its FY update, which saw its revenue triple, but share prices fall dramatically following a huge $25 million spend for marketing.
Cettire will launch in the Chinese market in the second half of 2022 and will have access to JD.com’s +550 million database.
“Our entry into China is a significant milestone towards our goal of being the world’s largest luxury destination,” said Dean Mintz, CEO of Cettire. “China represents a vast market opportunity and it is core to our strategy to make our world-class proposition available to additional market.”
Mainland China is anticipated to be the world’s largest luxury market by 2025. A report from Bain & Co suggests that the country will represent roughly 25 percent of the $600 billion global market. IN 2020, JD.com’s revenue was $1.66 billion (745.8 billion yuan).
Amid the announcement, Cettire’s share prices jumped 21.79 percent to $2.85, which is a comeback from its sliding prices last week following its FY update.
There are few details about the partnership, such as the operations behind the process on JD.com. However, Cettire holds no stock of its own, and fulfilment is operated via third-party suppliers, involving a fully-automated fulfilment service.
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