LVMH Group and Alibaba Group extend partnership with e-commerce focus

By Benedict Evans |

Louis Vuitton Chengdu Sino-cean Taikoo Li Store Store in Chengdu, China.

LVMH Moët Hennessy Louis Vuitton (LVMH Group) and Alibaba Group, an e-commerce and technology company in China, have announced an extended partnership leveraging Alibaba’s cloud technologies, through AI-powered innovations in retail and on-line through Tmall.

The partnership has been extended for another five years, and moving forward, LVMH will get access to a broader array of Alibaba Cloud’s technologies.

LVMH Group has more than 30 ‘maisons’ and divisions within mainland China and Southeast Asia (including Sephora APAC and DFS), and in a statement, the partnership noted its strong commitment to pioneering retail innovation and delivering tech-driven luxury experiences.

Alibaba Cloud Intelligence Group noted the use of its technologies by LVMH Group will enable it to increase its omni-channel, data and tech presence in China.

LVMH has begun integrating Alibaba Cloud’s generative AI capabilities, including Qwen, Alibaba’s proprietary large language model, and Model Studio (Bailian), a comprehensive AI model building platform.

Stephane Bianchi, Group Managing Director of LVMH, said: “Alibaba is already a key partner for our Maisons and for the Group. The reinforcement of our partnership will help us to further accelerate our omni-channel business growth, and to keep on leveraging the transformative capabilities of cloud and AI technologies, along with Alibaba’s world-leading expertise in ecommerce operations.

Our forward-looking collaboration will deliver unparalleled experiences to our clients throughout their high-end shopping journey.”

The announcement was made at VivaTech, for which LVMH Group is a founder.

This integration has paved the way for the creation of novel applications and services which LVMH said underscore its the commitment to staying at the forefront of innovation, harnessing cutting-edge technology to elevate its luxury offerings for global consumers, and fostering innovation-led growth within its global retail businesses.

Eddie Wu, Chief Executive Officer of Alibaba Group, added: “Alibaba is pleased to enable a transformation of the high-end consumption experience with retail leaders like LVMH through our world-class technologies in cloud computing and AI.

This comprehensive partnership has elevated the retail experience for LVMH’s customers worldwide, including China-based consumers on Tmall. We look forward to continuing to build on the strong partnership and innovation journey with LVMH.”

Long-standing partners

The strategic partnership between the two companies was initiated in 2019. Since then, LVMH has implemented Alibaba Cloud’s data management tool, Dataphin, to power its “LVMH ATOM” China—a bespoke platform designed by LVMH to deliver personalized services tailored to its expanding Chinese customer base.

LVMH has leveraged Alibaba Cloud’s machine learning platform, PAI, to develop customized services that cater to the distinct tastes of Chinese consumers across all its brands, such as at its Pavilion Maison.

This announcement follows the debut of integrating Tmall in Tiffany’s and Chaumet’s luxury retail journey.

To date, LVMH has introduced around 30 of its ‘maisons’ who are partnering with Tmall Luxury Pavilion to leverage Alibaba’s digital capabilities for engaging experiences such as 3D product displays, virtual try-on, and livestreaming.

Both parties have also expanded the collaboration on various omni-retail initiatives, including digital recreation of renowned luxury venues, product debuts, membership programs, and personalized consultations.

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