Zhang Zetian once again endorsed JD Fashion

Wallstreetcn
2024.10.28 09:26
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Continuously increasing investment in fashion apparel

Author | Wang Xiaojuan

Editor | Zhou Zhiyu

In the past month, the long-absent Zhao Tian appeared frequently, first in a slim silver sequin dress at a fashion dinner in London; then hurried to Milan, Italy, to serve as the ambassador for the TOD'S brand; a few days later, she appeared at the first Tsinghua alumni art exhibition in London.

As the boss lady with beauty and inherent influence, Zhao Tian is a natural fashion spokesperson for JD.com. Behind her multiple appearances is the continuous acceleration of JD.com's fashion apparel business and its upward ambitions.

According to Wall Street News, the London fashion dinner was hosted by JD.com to celebrate JD.com's cooperation with the British Fashion Council, becoming the official online retail partner of London Fashion Week Asia.

This year's Double 11 was also a focal point for JD.com's fashion. Before the event started, JD.com invested 1 billion yuan in clothing. On the evening of October 14th, when Double 11 officially started, clothing was directly offered at a limited-time 50% discount.

Of course, the fashion apparel track itself is highly competitive. In this field, Taobao and Tmall are still the kings, with platforms like Douyin and Xiaohongshu also entering the game. In this already saturated market, for JD.com and Zhao Tian to truly make a mark, they will need more strategies and put in more effort.

Going Beyond

Zhao Tian has always been a shining business card for JD.com, saving JD.com a lot of endorsement fees. This is especially true in the fashion apparel business that aligns well with Zhao Tian's personal style.

Every public appearance of Zhao Tian represents a new direction for JD.com in fashion apparel.

On September 15th, JD.com, along with brands like HAZZYS, Ellassay, Marisfrolg, and Pure Tea, landed at London Fashion Week, even integrating intangible cultural elements like Miao silver and Miao embroidery, showcasing a wave of Chinese fashion.

In addition, JD.com's fashion business partnered with the British Fashion Council to become the official online retail partner for London Fashion Week Asia.

JD.com also invited many celebrities from the fashion industry to attend a grand fashion dinner. At her own dinner, Zhao Tian appeared relaxed and composed, taking photos with various fashion industry figures.

In one of the most representative photos, Zhao Tian is seen with designer Zhang Huishan, who founded the brand "Huishan Zhang," on her right, and Zhang Yu, the former editor-in-chief of VOGUE China, on her left, known as the "female demon."

The collaboration behind Zhao Tian's photos is self-evident.

Since the autumn season, JD.com's fashion business has been making a series of intensive moves. On September 6th, JD.com's fashion, together with Xiaohongshu and VOGUE, released the "2024 Autumn/Winter Fashion Trend White Paper," stating that consumers are paying more attention to the "value for money" when choosing clothing, with the four new trends for the 2024 autumn/winter fashion being Wild Melard, Urban Light Outdoor, New Retro Revival, and Eastern Simple Luxury.

Combined with the significant discounts in September's JD.com fashion festival and the 1 billion yuan investment in the fashion business, it further highlights JD.com's emphasis on fashion apparel, aiming to leave the impression in users' minds that "buy clothes, go to JD.com." During Double 11, JD.com's fashion section offered a limited-time 50% discount, further attracting consumers JD's fashion business started to layout in 2017. At that time, JD split the original clothing and home department and officially established the fashion business department. After its establishment, Zhang Zetian became the consultant for JD's fashion brand expansion.

That year, JD also became an official member of the AAFA (American Apparel and Footwear Association). Zhang Zetian also hosted a private fashion banquet, attended by a wide range of people from almost half of the American entertainment industry.

Later on, brands like CELINE, FENDI, Bottega Veneta, etc., entered JD, making JD an important sales channel for these brands in China.

In the following years, JD's fashion business has been continuously expanding. For example, in 2022, JD became the first company to reach a comprehensive cooperation agreement with the nine top fashion brands under the LVMH group.

Zhang Zetian has also been steadily establishing herself in the fashion circle, often attending various fashion banquets and film festivals. Her image has transitioned from early sweetness to a more mature and closer to the fashion and luxury circles.

Currently, JD has cooperated with brands like LOUIS VUITTON, GUCCI, TIFFANY & CO., BOTTEGA VENETA, SAINT LAURENT, etc., with mainstream luxury brands all having a presence on JD.

Recently, Zhang Zetian was announced as the brand ambassador for TOD'S. It's worth noting that this brand's products have always been loved by celebrities. By choosing Zhang Zetian, they are directly targeting someone within the fashion circle, rather than just a popular influencer.

Over the years, although Zhang Zetian is not in the entertainment industry, she is very active in the fashion circle. With her good image, she showcases the completion of fashion by her appearance. JD's fashion business is also growing steadily through Zhang Zetian's various activities, becoming more extensive and diverse.

Perhaps in the future, the concept of "buy clothes, go to JD" will become deeply ingrained in people's minds with each investment from JD and each appearance by Zhang Zetian.

Competition

While Zhang Zetian leads JD's fashion business to new heights, other competitors are not idle.

Fashion is a deeply rooted track.

Data shows that in 2023, China's online clothing retail sales exceeded 2.3 trillion yuan; globally, over 100 billion pieces of clothing are produced each year, with an average of 190,250 new pieces of clothing being produced every minute; approximately 24 billion pairs of shoes are produced globally each year, with an average of 4,566 new pairs of shoes completed every minute.

Due to its massive scale, fashion has become a battleground for many. Currently, Taobao and Tmall are still the main strongholds for merchants; platforms like Douyin and Xiaohongshu, as platforms deeply integrated into users' lives, are also focusing on fashion as a key business direction. Especially Xiaohongshu is becoming a trend-setting platform, and brands have to participate in it.

However, according to the research by consulting firm Kearney, the trend in the fashion industry in recent years is that the market is slowing down, and low-speed growth has become the new normal. In terms of pricing, the low-priced market is intensifying, while the higher-priced market remains relatively stable. This poses a greater challenge for all platforms JD.com is doubling down on fashion apparel, as this is one of the few remaining growing sectors. Data shows that the number of top domestic and international footwear and apparel brands on JD.com has increased by over 60% year-on-year, and the number of third-party merchants has grown by over 200%.

While JD.com and VOGUE jointly release fashion trends, Douyin (TikTok) is also collaborating with VOGUE to continue leading new fashion trends. Following last year's Milan style, VOGUE and Douyin have defined this year's popular trend as "Yadan style" and created the "Douyin Fashion Week" offline theme show - "Fashion Comes from Douyin", aiming to carve out a share in the fashion apparel sector.

In the past two years, Douyin, as an emerging e-commerce platform, has introduced brands like Ralph Lauren. After Ralph Lauren's entry, it quickly became the top luxury brand on Douyin's hot list, attracting more and more brands.

With its core short videos, Douyin is becoming the birthplace of trendsetting. Brands like Milan and Dopamine are all incubated by Douyin, giving Douyin more room for imagination in the fashion apparel field.

For Tmall, fashion apparel has always been a key sector.

In the past year on Tmall, 34 apparel brands entered the billion club, 38 emerging brands achieved over 50 million in transactions, and 61 items exceeded 50 million in sales; there were also over 10 million new products launched, with new apparel brand entries maintaining over 80% growth momentum.

Many fashion apparel brands even consider Tmall as their first choice or main platform. This spring, Tmall Luxury joined hands with Tmall Brand Annual Member Day to create a "Tmall Super Fashion Week" with brands like BALENCIAGA, BALMAIN, BOTTEGA VENETA, BURBERRY, Chloé, and more.

Moreover, in terms of Tmall's international expansion, apparel is also an important focus. In August this year, Taobao Tmall launched the "Global New Forces Week" and promoted a free shipping plan for apparel globally.

However, the international apparel market is SHEIN's main battlefield. In the past two years, SHEIN, a fast-fashion women's clothing brand, has grown at a pace comparable to Pinduoduo overseas and is becoming a formidable opponent for e-commerce platforms.

Nevertheless, competing in the fashion apparel sector has long been a mature field with opportunities and risks coexisting.

In recent years, discussions about high return rates for women's clothing have been ongoing, with some merchants even stating that the return rate for women's clothing can reach 80%. On social media, posts about "mismatched goods" are not the most outrageous, only getting more extreme, and consumers are also greatly affected.

Recently, Zhang Dayi, a first-generation internet celebrity who operated a women's clothing store for 10 years, also closed her Taobao store; and in the past two years, many clothing stores with a significant number of fans have exited Taobao. It is evident that for merchants today, the clothing business is becoming increasingly challenging.

In terms of the consumer environment, one must also consider that consumers are becoming more rational and objective. Whichever platform can balance these factors well may have the potential for growth in the fashion apparel sector.

Now, in an ever-changing environment, all players need to work hard. In the already slowing fashion apparel industry, seizing brands with growth potential and continuously attracting increasingly rational consumers is key to telling a growth story