Shangpin Launches China’s First Online Full-Price Designer and Contemporary Fashion Retail Business
BEIJING and NEW YORK, Sept. 6, 2012 /PRNewswire/ — Shangpin, China’s first online retailer of authorized designer and contemporary fashions, today announced the launch of its full-price retail website which will offer Chinese consumers access to current season designer and contemporary fashion from nearly 80 brands, many of which have never before been available in China. With the highest average transaction price of any online retailer in China, Shangpin provides brand partners with access to a network of millions of affluent customers who trust shopping on Shangpin.com, as well as national distribution throughout mainland China.
Founded in 2010, Shangpin has raised $60 million in funding from three international investors: Chengwei Capital, Disney’s Steamboat Ventures, and Morningside Ventures. In launching its full price website, Shangpin is seeking to capitalize on the large and rapidly growing market for luxury goods in China, which is expected to reach $27 billion of global luxury sales in 2015.
“We are very excited to be able to provide our nearly 80 brand partners access to the millions of high-end Chinese consumers seeking full-price designer and contemporary fashion online,” said David Zhao, Founder and Chief Executive Officer of Shangpin. “In the last few years, a powerful breed of Chinese consumer has emerged who is focused on finding new and exciting high fashion with a high-touch customer service, and they are willing to pay premium prices for it.”
Mr. Zhao continued, “Shangpin also knows the challenges that smaller brands have with establishing themselves in China, and we therefore provide them with the national distribution, marketing services and local know-how that foreign brands need to succeed in the Chinese marketplace.”
Established, Trusted Source for Designer and Contemporary Fashion
Since its founding, Shangpin has quickly become the most trusted online retailer in China. Its status stems in large part from its strategic alliance with three leading Chinese banks. Shangpin originally launched by introducing the flash-sale online retail model as a rewards system for platinum credit card holders of China Construction Bank (of which Bank of America is an investor), Huaxia Bank (of which Deutsche Bank is a partner), and Minsheng Bank (the first privately held bank in China). For the VIP credit card holders of these banks, Shangpin offered luxury goods as a benefit for credit card usage, and, as a result, Shangpin quickly built a customer base for its full-price website of over 2.4 million customers.
Further, with Shangpin, customers know exactly what they are buying, as Shangpin carries only authorized designer and contemporary fashions from its nearly 80 brand partners.
True Partnership Opportunity for Brands Seeking Access to China
Shangpin offers an extraordinary partnership opportunity to high-end fashion brands that are seeking to access the Chinese market but are daunted by the challenges of marketing their brand in China. Shangpin provides the branding and marketing services and local market expertise foreign brands need to succeed in the Chinese market. Shangpin has the highest average transaction price of any online retailer in China of 3,000 Chinese yuan (approximately $470 USD). The average transaction price of online purchases in China is only 200 Chinese yuan (about $31 USD).
“For smaller designer and contemporary brands, expanding into China poses a number of obstacles that are difficult to surmount without the help of an experienced, mainland marketing and merchandising expert like Shangpin,” said Michelle Smith of Milly. “Shangpin’s services and critical local know-how far exceed those of any other online retailer in China. Plus, the per transaction spend on Shangpin.com far exceeds that of any other online retailer in China, so Shangpin is an incredibly valuable partner right from the outset.”
Through its digital marketing and public relations support, Shangpin creates brand awareness for its partner brands in traditional, online and social media. This includes creating a brand’s digital footprint in Mandarin. Shangpin also helps brands market with an editorialized, curated approach to fashion brands, with a focus on styling and tips to the Chinese consumer on how to dress and find their own style.
“We partnered with Shangpin because we were impressed by their sophisticated operations and distribution network,” said Karen Castellano, CEO, Tracy Reese. “Their ability to reach consumers throughout mainland China and distribute merchandise quickly provides us with a strong means to reach the Chinese market. We think our Chinese customers will really appreciate the effective delivery, generous return policy and the attentive customer service representatives.”
Strong Executive Team With Chinese Market Expertise and Western Credentials
Shangpin is led by an executive team that brings important knowledge of the Chinese marketplace to the company, as well as management, marketing and retail skills honed in the West. Its three principals are:
- David Zhao, Founder and Chief Executive Officer: With a professional background cultivated in the United States, Canada and China, Mr. Zhao founded Shangpin in 2010. Mr. Zhao has an extensive e-commerce background and significant experience working with the affluent Chinese consumer as well as significant expertise in Internet technology and commercial modeling. Previously, Mr. Zhao founded Vansky Technology, an innovative e-commerce company that provided online shopping services to credit card holders for a number of major Chinese banks. He has also held senior management positions at a number of NYSE listed companies including IBM, Hewlett-Packard and MOVE, and has also worked with several Chinese state-owned enterprises. Mr. Zhao was educated in China and the United States.
- M. Claire Chung, Vice President, Global Business Development: Ms. Chung is responsible for global business development, brand management, and corporate strategy at Shangpin, and brings extensive international experience in luxury, e-commerce and social marketing. Most recently, Ms. Chung was the founder and CEO of Touch2Give.com, a European based SNS social-network and e-commerce venture providing an online marketplace for emerging designer brands with a focus on sustainable and ethical fashion-forward brands. Previously, Ms. Chung worked at Christie’s, where she launched and ran the Client Advisory Group in Asia and served as a member of the Asian Business Development Board. Part of the Christie’s China Launch team, she has worked with luxury consumers in China since the very beginning. Ms. Chung began her career in New York at The Citibank Private Bank, Art Advisory Service. She is a graduate of Barnard College.
- Winnie Foon, Vice President, Global Merchandising: With over 17 years of international luxury fashion merchandising, sales and marketing experience, Ms. Foon leads the merchandising, sales and marketing teams for Shangpin in Hong Kong and China. She previously worked with prestigious fashion retailers in Asia, including Lane Crawford department stores, Seibu and I.T. Ms. Foon is also a well-regarded entrepreneur, having developed a full range of high-quality fashion goods for up-market fashion retail chains in the UK, USA, China, Japan, Taiwan and Hong Kong.
Shangpin is the first full-price fashion retailer in China to offer current season designer and contemporary fashion brands to Chinese consumers throughout mainland China. Since its founding in 2010, Shangpin has become the trusted online retailer for more than 2.4 million Chinese customers, offering an exceptional shopping experience and access to nearly 80 brands, many of which have been previously unavailable in China. Shangpin prides itself on being an extraordinary brand partner, providing the branding and marketing services and local knowledge that foreign brands need to succeed in the Chinese market. Shangpin’s principal investors include Chengwei Capital, Disney’s Steamboat Ventures, and Morningside Ventures. For more information, please visit us at www.shangpin.com.
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