One of the most famous Italian fashion house Prada Group has formed a merger with China’s largest retailer, JD.com. In this partnership agreement, Prada Group has launched an authorized flagship outlet on JD.com on June 17. The merger was publicized as a segment of JD’s June 18 (“618”) anniversary sales festival. Brands under Prada Group, Miu Miu and Car Shoe will also launch their flagship outlets on JD.com on June 17. This was part of the merger agreement between Jd.com and Prada Group. In addition to this, the new Prada outlet offers the upcoming fall/winter collection. This merger benefitted both parties. JD.com’s total sales reached new levels of $29.2 billion because of its June 18 Anniversary Sale (“6.18”).
The key drivers for these outstanding results were new products and brands like Prada, and Chinese consumer’s interest in high-quality brands/products. On the other hand, Prada Group also reported double-digit growth of their company and it is planning to set up an online presence for the majority of its sub-brands by the end of 2020. This merger between both of the companies represents a major part of Prada Group’s digital strategy in the Chinese market. Prada Group using this strategy also gained an advantage because JD.com has created a specific channel inside its stage to promote new brands by making them simple for buyers to discover, and helping brands get new customers leading to more sales.
“Prada is synonymous globally with the highest taste in fashion and luxury, and it is truly an honor to welcome them to our online platform,” said Kevin Jiang, President of International Business at JD Fashion and Lifestyle. “International brands are increasingly recognizing the power of JD when expanding into China’s burgeoning luxury market, and we look forward to helping Prada connect with China’s sophisticated consumers.” In the year 2018, JD’s annual June 18 anniversary shopping festival celebrates the company’s founding. This festival gave customers a chance to enjoy a variety of promotions and exclusive deals on many different products and brands, with more than 90 percent of major brands introducing a new array of products this year.