Will handsome, white-gloved delivery men help JD gain an edge over rival Alibaba in luxury sales?
Both online giants are going out of their way to grab market share in the luxury sector, but analysts say it will be difficult for them to shrug of their ‘grass roots DNA’
JD.com, China’s second largest e-commerce giant, has unveiled its new luxury e-commerce website “Toplife”, just two months after market leader Alibaba Group revealed details of its own “Luxury Pavilion” section, targeted at ultra-wealthy Chinese customers on its shopping flagship site, Tmall.
The move underscores how luxury has now become the new battleground between China’s two online leaders.
“JD is cash rich, so money won’t be a problem for us,” said Ding Xia, president of JD Fashion, an offshoot of JD.com, which gained popularity among shoppers by selling electronic products including laptops and mobile phones after its opening in 1998.
“It’s going to be a very money-burning stage for Toplife, but it’s the right decision for us to make such a move,” she said on the sidelines of the Retail Congress Asia Pacific conference in Hong Kong.
One of Toplife’s advantages over Alibaba’s Pavilion, according to Ding, is what she called its “white-glove delivery service”, which will feature good-looking young males, delivering goods to customers’ front doors, driving cars instead of electric tricycles – the standard transport for other delivery companies in China – in suits and bow-ties, and wearing white gloves.
“As well as the smart appearance, it will be a requirement for these delivery men to be well educated,” she said.
However, analysts appeared sceptical of either company’s latest charm offensives.
Can you imagine luxury brands feeling OK about being sold alongside condoms and cheap lingerie? It’s almost impossible for the two [Alibaba, JD.com] to shrug off their grass roots DNA