CHINA BRIEF | Luxury products see brisk sales on JD.com during COVID-19 pandemic

Around 20 luxury brands that began listing their products on JD.com since January have logged strong sales on the platform, JD.com said on Friday.

Just four days after Italian designer brand By Far began operating a sales portal on JD.com, 65% of its listed merchandise was sold. By the end of its first month on the site, 90% of its stock was gone, said JD.com in a newsletter sent to media outlets.

The e-commerce giant did not reveal sales figures for other newcomers, which include Delvaux, the world’s oldest leather goods house; Chanel-owned jewelry brand Goossens; and British luxury leather brand Smythson.

Booming sales numbers on JD.com come as many Chinese consumers of luxury goods are turning to purchasing channels within the country. Travel restrictions due to the COVID-19 pandemic have halted international travel, and many of these brands have shuttered brick-and-mortar stores, said the company.

Before the viral outbreak, 70% of luxury good purchases made by Chinese consumers occurred outside of China, JD.com said, citing Bain & Company’s 2019 report, “What’s Powering China’s Market for Luxury Goods?”

This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.