Online China luxury goods mall expands
The investment was led by Jardine’s, followed by KPCB China and others.
Founded in 2008, Xiu specialises in high-end clothing, footwear, bags, accessories, and cosmetics from international brands. Headquartered in Shenzhen, it also has offices in fashion capitals like New York, San Francisco, London, Milan, and Hong Kong. The store has over 600 brands, and at least 200 of them are exclusive to Xiu in China.
Xiu’s investment comes just days after French luxury goods retailer Kering, parent of Gucci and Yves Saint Laurent, amongst others, filed a lawsuit against China’s biggest eCmmerce company, Alibaba, alleging it is profiting from the sales of counterfeit goods in wholesale quantities on its Taobao site.
Xiu.com says it will use the new funds to create a better shopping experience, improve its supply chain, and strengthen international ties.
Founder Jiwen Hong says Xiu’s strength lies in the relationships it has with brands. By going directly to the brands and cutting out middlemen, it can offer better prices than competitors. 36kr says most items on Xiu sell for less than the retail cost in Hong Kong and the US.
The startup has 10 million registered users with a repeat purchase rate of 85 per cent. The average customer spends about RMB 1,500 (US$242) per purchase.
In 2012, US auction site Ebay launched a joint venture with Xiu to list products on a subdomain of Xiu’s site. That collaboration has since closed shop.