CHINA. LVMH Group and ecommerce and technology powerhouse Alibaba Group have expanded their strategic partnership to enhance the leading luxury goods group’s omnichannel presence in China.
The move aims to “push further the boundary of luxury experience in China” by maximising Alibaba’s cloud technologies, through AI-powered solutions in retail and online with ecommerce portal Tmall.
The agreement underlines both companies’ commitment to pioneering retail innovation and offering tech-driven luxury experiences.
LVMH Group Managing Director Stephane Bianchi said: “Alibaba is already a key partner for our maisons and for the Group. The reinforcement of our partnership will help us to further accelerate our omnichannel business growth, and to keep on leveraging the transformative capabilities of cloud and AI technologies, along with Alibaba’s world-leading expertise in ecommerce operations.
“Our forward-looking collaboration will deliver unparalleled experiences to our clients throughout their high-end shopping journey.”
Alibaba Group Chief Executive Officer Eddie Wu added: “Alibaba is pleased to enable a transformation of the high-end consumption experience with retail leaders like LVMH through our world-class technologies in cloud computing and AI.
“This comprehensive partnership has elevated the retail experience for LVMH’s customers worldwide, including China-based consumers on Tmall. We look forward to continuing to build on the strong partnership and innovation journey with LVMH.”
LVMH Group has started integrating Alibaba Cloud’s generative AI capabilities, including Qwen, a proprietary large language model, and Model Studio (Bailian), a comprehensive AI model-building platform.
The implementation of this digital strategy has enabled the luxury group to develop novel applications and services, the partners noted. It also demonstrates LVMH’s commitment to spearheading innovation in the global retail business and using advanced technology to elevate its luxury offerings for global consumers.
The extended cooperation agreement covers more than 30 brands and business segments within Mainland China and Southeast Asia, including LVMH’s travel retail arm DFS and beauty retailer Sephora.
Under this expanded collaboration, LVMH will be given access to Alibaba Cloud’s wide range of digital offerings to strengthen its business operations in China.
Launched in 2019, the strategic partnership between the two powerhouses has enabled LVMH to use Alibaba Cloud’s data management tool, Dataphin. This cloud-based solution powers LVMH ATOM China – a bespoke platform designed by LVMH to deliver personalised services tailored to its expanding Chinese customer base.
Furthermore, LVMH has leveraged Alibaba Cloud’s machine-learning platform, PAI, to develop customised services for Chinese consumers across all its brands.
The extended partnership follows the Tmall debut of LVMH’s luxury jewellery brands Tiffany & Co. and Chaumet.
LVMH currently has 30 brands featured in Tmall’s invite-only platform Luxury Pavilion, which allows brands to promote their products through 3D displays, virtual try-ons and livestreaming.
The agreement also covers various omni-retail initiatives, including digital recreation of renowned luxury venues, product launches, membership programmes and personalised consultations. ✈
