Alibaba throws funding at luxury flash sales store

(Photo from Wikimedia)

Alibaba revealed this morning that it has invested an undisclosed sum into Chinese flash sales site Glamour Sales, which is also known as Mei.com.

This is series C funding, following the US$28 million it netted in 2012.

Glamour Sales focuses on luxury clothing, accessories, skincare, and home items. Brands on the homepage right now include Giorgio Armani, Tiffany, Gucci, Sisley, and Le Creuset. Items are sold in limited batches, with discounts sometimes as high as 90 percent.

Alibaba says the the investment will enable the ecommerce titan to integrate resources from its Tmall marketplace with Glamour Sales’ offerings. That will help “in growing [Glamour Sales’] user base, brand cooperation base, logistic services, and IT infrastructure services.”

Tmall is China’s top brands-oriented marketplace, ahead of arch-rival JD.

Counterfeit couture conundrum

Daniel Zhang, the newly installed CEO of Alibaba Group, said today that the deal will help Tmall to provide “more premium luxury goods to consumers.”

That might also help Tmall battle its long-standing issue with fake luxury items being sold by its numerous third-party merchants. Alibaba is currently facing a lawsuit in the US from Kering, a luxury brands group that includes Gucci and Yves Saint Laurent. Kering also planned to sue Alibaba in 2014 before withdrawing the suit in favor of negotiations over the counterfeits issue.

Alibaba’s problems with counterfeits from its Taobao and Tmall merchants have allowed specialist sites that guarantee authenticity to prosper – such as VIPshop, which has fared well since its risky IPO in 2012 when few Chinese tech companies braved the uncertain US markets. VIPshop is the closest direct rival to Glamour Sales.

“We are very pleased to receive this strategic investment from Alibaba Group,” said Thibault Villet, the Shanghai-based founder and CEO of Glamour Sales. “The two parties complement each other and together with Tmall, we will bring premium and trusted genuine brands to consumers. In the future, we see a significant opportunity to provide enhanced shopping experience for Chinese customers in search of affordable fashion and luxury products.”