Moët Hennessy has announced plans to launch exclusive products and benefits through several platforms owned by Chinese online retailer Alibaba. These exclusive offers will be available in China through several of Alibaba’s online platforms, including: Tmall, Tmall Luxury Pavillion, and Hema Supermarket.
Alibaba is the world’s largest retailer, with a value of $231 Billion (more than the combined value of all American retailers, including online giants such as Amazon and eBay).
In August, Alibaba and Moët Hennessy released a joint report forecasting growth of almost 50 percent in the purchase of western liquors on Alibaba platforms. If these forecasts prove true, Chinese consumers will spend more than 100 billion Yuan on this category in 2019. The joint venture between the two brands gives Alibaba an opportunity to fuel the popularity of western spirits by providing unique shopping experiences for their customers; and it will give Moët Hennessy the opportunity to expand their business in China, which is currently their second largest market, after the United States.
Cognac, Moët Hennessy’s signature product, is extremely popular in China – so it is not surprising that Alibaba is interested in partnering with them. Wang Dan, Head of the Food Division at Tmall, is quoted as saying, “Moët Hennessy has moved at a faster rate than any other western spirit brands on our platform, both in New Retail initiatives and everyday operations.”
And Andrew Khan, Vice President of Marketing at Moët Hennessy, was quoted as saying that there is “Huge potential in the China market… Historically, the majority of our business comes from southern cities. And partnering with Tmall is a great way for us to develop opportunities in other regions. Tmall has a particularly strong foundation in Hangzhou and other cities in the eastern region.”
According to an article in Jing Daily, the partnership will also give Moët Hennessy access to Alibaba’s consumer database, providing them with a unique opportunity to gain insight into the behavior of their consumers. In the article, Khan is quoted as saying the partnership “will allow us to have more creative online initiatives for occasions such as a new product launch and brand event in the future.”
While the formal partnership between the two brands is new, this is not the first time that they have collaborated. In July of 2017, Moët Hennessy launched a flagship store on Tmall, and soon after they sold a bottle of Beauté du Siècle cognac for $220,000. Over the past year, they have also launched “mini” 220ml bottles of several products, including Moët & Chandon champagne, and Hennessy Classivm, in addition to a 100ml-sized bottle of Glenmorangie scotch. These smaller-sized products, which can be drunk straight from the bottle, have proven to be very popular with the Chinese market.
Last month, Moët Hennessy began their official partnership with Alibaba by offering a “V.S.O.P. Privilege,” bottle of cognac exclusively on Tmall, in honor of the brand’s 200th anniversary. The product sold out in a day, setting sales records for Alibaba, and providing a clear indicator that this partnership is likely to succeed.
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