Headlines were made last week when it was officially announced that Prada and JD.com would finally be teaming up. The specific nature of the partnership involves a flagship store for the Italian luxury brand that will be located on the Jingdong website.
This will be the primary online location for Prada’s business. The company has wanted to make a big splash in the online world for a long time. Now they are finally doing it with the help of the largest online Chinese retailer. Prada is not known as a company that does anything halfway. They are continuing that tradition by making a deal with a giant online retailer.
The online business for Prada has been doing very well. However, the people who run the company think it can be better. This is what caused them to reach out to JD.com about a possible partnership. Talks between the two companies went on for several months. It was eventually decided that Prada would be best served by having a flagship store on JD.com where customers would be able to buy all of their products at a single location. Prada surveyed their customers about this idea. The response was overwhelming.
Prada understands the enormous reach that JD.com has. Their goal is to use this huge online platform to reach people who have never bought a Prada item before in their life. They also want to attract people who only shop online and would never see any Prada merchandise in a brick and mortar store.
The same type of plan has been used by many other companies when they do business with Jingdong. The results have always been spectacular. The speed of the shipping offered by JD is very attractive to Prada. They know that speed of delivery is something that attracts new customers.
The effect that the JD’s flagship store will have on Prada’s bottom line is not yet known. However, the past results of other companies indicate that it will be a very profitable partnership. JD.com is China’s biggest retail platform has a way of making everything they touch turn to gold.
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