The leading Chinese luxury e-commerce platform Secoo’s active customers almost doubled in Q2 2018 to 255.5 thousand from 129.3 thousand for Q2 2017. Its GMV reached 1,653.4 million yuan (US$249.9 million), representing an increase of 44.7% from 1,142.6 million yuan in Q2 2017.
The growth of Secoo’s active users is largely driven by “618” and “707” promotion events in Q2.
Secoo added a variety of top brands to its advertising clients, including Martell, Porsche, Volkswagen CC, Kerry Properties and China Red Star. Furthermore, Secoo’s big-data-driven marketing and advertising solutions have already served 14 Internet Content Providers, including NetEase Cloud Music, WeBank, and VIPKID.
Secoo saw a total number of 455.9 thousand orders for Q2 2018, an increase of 49.7% from 304.6 thousand in Q2 2017 according to its unaudited financial results.
Its total net revenues reached 1,220.1 million yuan (US$184.4 million) for Q2 2018, increasing by 55.5 % from 784.7 million yuan in Q2 2017. Gross margin was 18.3% for Q2 2018, compared to 16.5% in Q2 2017.
Net income increased by 26.4% to 36.4 million yuan (US$5.5 million) for Q2 2018 from 28.8 million yuan for Q2 2017. Non-GAAP net income increased by 42.4% to 41.0 million yuan (US$6.2 million) for Q2 2018 from RMB28.8 million in Q2 2017.
Key Business Activities in Q2 2018
In August, L Catterton Asia (“L Catterton”) and Jingdong closed a US$175 million investment for a three-year convertible note. Secoo also entered into business cooperation agreements with L Catterton and JD respectively, which will allow Secoo to attract more leading fashion and luxury brands that further boost Secoo’s influence and capabilities among Chinese luxury and fashion consumers.
L Catterton is the Asian unit of the largest and most global consumer-focused private equity firm in the world, formed through the partnership of Catterton, LVMH and Groupe Arnault.
Mulberry, a leading British lifestyle brand with internationally acclaimed quality and design, officially entered into Secoo’s platform in early August. For Mulberry’s debut on Secoo’s platform, Secoo was named as the exclusive online partner for Mulberry limited-edition bag, “Amberley”, for the Chinese Valentine’s Day.
Secoo entered into a collaboration with 88 European buying agent shops, mostly covering apparel and footwear categories, to improve Secoo’s global supply chain capacity and the depth of inventory.
It also expanded cooperation with eight high-end properties and real estate developers across China, including Beijing Vanke and Gemdale Property Management Group, to expand its offline presence and broaden brand coverage.
Secoo entered a business partnership with Starbucks China, through which Secoo members are able to redeem their Secoo membership rewards on the Secoo mole app for electronic Starbucks coupons, which can be exchanged for Starbucks products in more than 3,400 Starbucks stores in China nationwide. This partnership helps to optimize membership benefits and further enhance customer loyalty, while also increasing Secoo’s brand exposure and awareness.
Secoo announced applying the blockchain technology for the authentication of certain items sold on the Secoo platform. With this new technology, Secoo becomes the first e-commerce company to utilize blockchain technology for product application in the luxury industry.