LVMH Group, the world leader in luxury products, and Alibaba Group, the leading e-commerce and technology company in China, have on Thursday announced an extended partnership to enhance luxury experience in China, leveraging Alibaba’s cloud technologies, through artificial intelligence (AI)-powered innovations in retail and on-line with Tmall.
The duo said in a statement that the deepened partnership is a strong commitment to the shared dedication of the two companies to pioneering retail innovation and delivering exceptional, tech-driven luxury experiences, that will enable LVMH to increase its omnichannel, data and tech presence in China.
With more than 30 Maisons and Divisions within mainland China and Southeast Asia (including Sephora Asia Pacific [APAC] and DFS), this extension of the cooperation for another five years reflects a strong and shared commitment to explore new markets, products, and technological frontiers.
Moving forward, LVMH will get access to a broader array of Alibaba Cloud’s leading technologies and proven products to further optimize its business operations, enhance customer insights, and streamline its supply chain management processes to address the Chinese market.
“Alibaba is already a key and valuable partner of our Maisons and the Group,
“The reinforcement of our partnership with Alibaba aims at helping us accelerate omni-channel business growth and enhancing premium luxury experiences driven by the transformative capabilities of cloud and AI technologies, along with its world-leading expertise in e-commerce operations,” said Stephane Bianchi, Group Managing Director of LVMH.
According to her, their synergetic and forward-looking collaboration will deliver unparalleled experiences to our global customers throughout their premium shopping journey.
Eddie Wu, Chief Executive Officer of Alibaba Group, said that 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,” he added.
In its pursuit of relentless innovation, LVMH has begun integrating Alibaba Cloud’s generative AI capabilities, including Qwen, Alibaba’s proprietary large language model, and Model Studio (Bailian), a comprehensive AI model-building platform.
This integration has paved the way for the creation of novel applications and services that underscore the luxury Maison’s commitment to staying at the forefront of innovation, harnessing cutting-edge technology to elevate its luxury offerings for global consumers, and fostering innovation-led growth within its global retail businesses.
The strategic partnership between the two industry firms was initiated in 2019.
Since then, LVMH has implemented Alibaba Cloud’s data management tool, Dataphin, to power “LVMH ATOM” China – a bespoke platform designed by LVMH to deliver personalized services tailored to its expanding Chinese customer base.
Furthermore, LVMH has leveraged Alibaba Cloud’s machine learning platform, PAI, to develop customized services that cater to the distinct tastes of Chinese consumers across all its brands.
This announcement of extending the global partnership follows the debut of integrating Tmall in Tiffany’s and Chaumet’s luxury retail journey.
To date, LVMH has successfully introduced around 30 prestigious Maisons that are currently partnering with Tmall Luxury Pavilion to leverage Alibaba’s digital capabilities for engaging experiences such as 3D product displays, virtual try-on, and live-streaming.
Both parties have also expanded the collaboration on various omni-retail initiatives, including digital recreation of renowned luxury venues, product debuts, membership programs, and personalized consultations.
This strategic move further extends the LVMH luxury experience to millions of Chinese shoppers.
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