American luxury jewelry firm Tiffany & Co. opened its very first official brand store in Korea through e-commerce platform, Kakao.
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This is a significant win for Kakao as it will be the only shopping mall selling Tiffany products online.
The IT giant, which operates Korea’s most popular mobile instant messaging application Kakao Talk, has been strengthening its e-commerce sector by opening in-app stores for several luxury brands.
Tiffany said it decided to sell its luxury items on Kakao to help it reach younger customers and those living far away from Tiffany stores.
Kakao added that in the past people only purchased daily necessities online. But shopping trends have changed and now people are increasingly comfortable buying luxury goods via digital platforms, which is why Kakao is looking to open more stores for luxury brands.
“Our e-commerce business is becoming popular thanks to our gift sending function that allows people to send birthday presents on Kakao Talk,” a Kakao official said.
Meanwhile, an industry source said Tiffany started its online business due to falling sales affected by the COVID-19 pandemic. The daily number of new coronavirus cases has surged in Korea for the third time this year and the government has decided to put stricter regulations on stores and restaurants in the country.
Currently, there are about 100 luxury brands operating online boutiques on Kakao’s platform, including Gucci, Yves Saint Laurent and Balenciaga. Chanel is only selling its beauty products there.
Last month, German luxury goods brand Montblanc joined the list of luxury outlets that opened a store on Kakao.
In the case of Tiffany, it is not managing the store directly. Hyundai Department Store will take care of customer services and manage the store while the American retailer will supply the products from the United States.
Tiffany will introduce 60 products including bestsellers the Tiffany T1 Bracelet and the Tiffany T Smile Pendant.
The products purchased on Kakao Talk can receive repairs and cleaning services at any of the Tiffany stores in the country.
Kakao said the Tiffany products will come in eco-friendly packaging specially made by the brand before they are delivered to buyers. The IT firm said the gesture is to support Tiffany’s corporate philosophy of pioneering sustainable luxury goods.
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“We are planning to introduce new products every year in collaboration with Tiffany. We will continue to expand our lineup of luxury products,” a Kakao official added.
(Source: Korea Times)