07.05.2020 ALIBABA Daily Analysis

07.05.2020 ALIBABA Daily Analysis

As China was the first country to be hit with the coronavirus and it accounts for more than a third of luxury goods, Chinese e-commerce giant Alibaba Group Holding Ltd (N:BABA) has launched a new platform that will be selling luxury items targetting younger consumers. Another reason is also to help high-end brands that were forced to shut down stores and having built up inventories due to the pandemic. In a statement on Wednesday, Alibaba said it was piloting the new Luxury Soho platform to run alongside its Tmall Luxury Pavilion flagship site. "Brands are now sitting on a worldwide abundance of stock and are also needing to find ways to reach new consumers," said Christina Fontana, head of Tmall Fashion and Luxury in Europe, in comments posted on Alibaba's website. Alibaba(NYSE:BABA) going up by +0.15, or by +0.08% at $195.17. The platform is said that it will allow brands to run their own online stores with full control over their pricing of the items, from product selection, and to the strategy of the brand. The platform would help high-end houses reach newer consumers such as those from China's lower-tier cities or so-called Gen Z shoppers, young clients up to the age of 25 who are just entering the world of luxury and are expected to become increasingly important for the sector. "With Luxury Soho, brands can now move selected products and collections onto an online outlet store and bring them in front of a specific audience."