The Chinese online luxury fashion retailer announced that Feelunique’s exclusive store within its platform will launched during the fourth quarter of this year.
"Feelunique's expertise in cross-border beauty and Secoo's considerable customer base in China is a powerful combination. I am hugely excited by the offering we will jointly bring to Chinese consumers demanding high-quality international beauty brands from a trusted retailer,” said Joel Palix, CEO of Feelunique.
Accelerated growth in China
The move comes a few months after Feelunique unveiled its own WeChat channel as part of its multi-channel expansion and to grow its presence in China.
With its new e-store on Asia’s largest online integrated luxury products and services platform, Feelunique will have yet another channel to serve China’s fast-growing online beauty market.
Through the partnership, Feelunique will be able to gain access to Secoo’s high-net worth base of over 20 million customers. According to the company, these consumers spend an average of $500 per order.
“This is an exceptional opportunity to accelerate Feelunique's penetration of this large and growing beauty market alongside a distinguished luxury e-commerce platform," said Palix.
In turn, the launch will help build Secoo’s offerings in the cosmetics category and allow the company to serve the fast growing online beauty market.
Feelunique currently operates in China through its own e-store, which launched in 2015. The launch of its Chinese website propelled sales for the company.
For the financial year of 2017, the company reported that sales in China more than doubled, accounting for 10% of the company’s group sales, compared to only 2% the previous year.
Today, 20% of the company’s sales come from China, making the country Feelunique’s second largest market.
Orders placed through the Feelunique store on Secoo will be fulfilled by Feelunique's strategically located distribution hub in Hong Kong, which is scheduled to begin operations this October.
The company said it will also be managing its own merchandising, inventory as well as pricing and promotions.
However, the companies plan to collaborate to create engaging editorial content, which have been instrumental to Feelunique’s strategy.
Secoo said that the new partnership will help it further understand the demand for luxury items in China, which continues to be an integral part of the company’s business strategy.
“With Feelunique's wide selections of products and strict quality guarantee, we are confident that we are well-positioned to capture emerging online opportunities in China and augment values to our customers.”
Internal changes for Secoo
Secoo’s share price rose from 13.52 to close at 13.92 on the day of the announcement, but fell to 12.75 on Thursday after the company announced changes to its board of directors.
The company removed five members from their board and stated that the resignations were not a result of any disagreement. Founder, Chairman and CEO Richard Li also stepped down as a member of the compensation committee.
Xing Wenning was appointed as an independent director of the Company. Xing currently serves as China’s Managing Director of Hearst, the operator of several international magazine and digital media brands such as ELLE, Harper’s Bazaar and Cosmopolitan.