As upgrading consumption models has become an increasingly a hot topic, Chinese e-commerce companies have become empowered to expand their market share through accommodating consumers’ diverse needs. This week Secoo (NASDAQ:SECO), China’s largest premium lifestyle e-commerce platform, released its unaudited Q1 fiscal report ending on March 31 which demonstrates the company’s rapid growth in the e-commerce sector.
The report showed that Secoo’s GMV reached RMB1,119.5 million (USD 178.5 million) for Q1 2018, a 43.2% increase year over year. Meanwhile, its total net revenue reached RMB 802.5 million (USD 127.9 million), increasing by 42.8% from RMB 562 million of Q1 2017 while the number of active customers increased by 56.1% to 160,900 for Q1 2018.
Secoo’s gains in revenue are primarily driven by the company’s new strategy to reshape its e-commerce ecosystem through the expansion of multi-channels around the “lifestyle” concept. This is to ensure the company further meets the demands from the burgeoning number of high-net-worth Chinese consumers for offerings that include luxury goods and other high-end retail products aimed at improving quality of life.
Though Secoo was founded with the ambition to be a top-performing online luxury goods e-commerce marketplace, since 2018 the company has integrated its online and offline shopping sites. For instance, Secoo launched various offline experience centers equipped with smart facilities. The company also cooperates with hotels to develop various marketing opportunities.
Apart from that, Secoo has combined its sales of luxury goods with lifestyle, art, finance, agriculture, and cloud computing services. After releasing its new brand slogan of ‘bring the world with beauties’ a few months ago, Secoo pledged to upgrade its services. The new slogan signals the company’s transformation from luxury e-commerce to full-fledged premium lifestyle platform.
Secoo has continued to form partnerships and launch “lifestyles” initiatives. For example, it has cooperated with international department store Parkson Retail Group, thus making inroads to the area of consumer cosmetics. This cooperation marked the sale of Secoo’s products in Parkson retail stores.
Perhaps more importantly, Secoo has upgraded its services for consumers. As a consequence, Secoo’s deliveries can now reach consumers in two hours. Secoo also launched its own brand of cocktail and plans to open several special bars nationwide. Another significant move by Secoo is the launch of its new agriculture channel which aims to provide its consumers with higher quality of agriculture products. As part of this initiative, Secoo has upgraded its transboundary cooperation with Chucheng, a famous Chinese brand that produces high-end oranges. All these changes seem to indicate Secoo’s multi-pronged approach to diversify from luxury products to increasingly broad ecommerce lifestyle channels for consumers.
(Top photo from Secoo)