Online luxury fashion retailer Xiu.com says it will use its fresh $30 million capital injection to connect more western brands with online shoppers in China.
Xiu.com recently raised $30 million in series C funding, led by private equity company Pacific Venture Partners, a deal reported by Inside Retail Asia on May 19, but only officially announced in the last few days.
Launched in 2008, Xiu.com sells international branded fashion products, including clothing, cosmetics, bags, jewellery, shoes and homewares.
“As an online-fashion leading company, Xiu.com operates advanced logistic networks that cover Europe and the US,” said Ji Wenhong, founder and CEO.
“Working directly with established international companies, Xiu.com could offer a variety of International brand products and offer Chinese consumers in-season fashion products with lower price than those in other markets.”
“We are very confident in Xiu.com after we studied the Chinese eCommerce market for a long time,” said Tan Changwen, a partner in PVP.
“We will support Xiu.com’s strategic development, especially in increasing its efforts of mobile e-commerce and expansions in Asia markets.”
Despite Chinese consumers tending to shop for luxury goods when they travel abroad, Xiu.com found that Chinese are now showing more willingness to purchase luxury goods online.
More than 600 overseas companies, including Salvatore Ferragamo, Blue Nile, and Hugo Boss, are partnering with Xiu.com, and nearly 200 of them sell exclusively on Xiu.com to Chinese online shoppers.
More than 10 million consumers have registered with Xiu.com and more than 85 per cent of orders come from repeated buyers. The average order value is US$240.
Xiu.com will use the funds to consolidate its international supply chain network and to invest into the project of connecting offline stores in western countries with online shoppers.
“We help stores in western countries sell their inventories on Xiu.com,” Ji said. “We could increase our product offerings rapidly, while consumers could benefit from more selections for new-arrival products.”
The Shenzhen based company also plans to use the funds to prepare its forthcoming IPO.