Secoo Holding, a number one Chinese luxury e-commerce company, filed with the U.S. Securities and Exchange Commission (SEC) on August 25, aiming to lift as much as $100 million in an initial public offering (IPO). In line with the filings, it plans to list on the Nasdaq under the symbol “SECO.Currently, no pricing detail was disclosed.
Secoo’s IPO application comes amid intense competition between the country’s top two e-commerce giants Alibaba Group and JD.com for positioning within the luxury market in China. As a platform that has focused on luxury retailing since its inception, Secoo has an edge on this area.
Secoo was initially founded in Hong Kong in 2008 by Richard Rixue Li and Zhaohui Huang. In 2011, it officially stepped into the online luxury e-commerce business. Over the past seven years, the company has grown into an upscale online retailer with great significance for international luxury brands in China.
In a July report by the investment company Exane BNP Paribas, the head of the luxury division Luca Solca listed Secoo, along with Alibaba’s Tmall, JD.com and WeChat, as major local champions dominating the luxury landscape in China.
Secoo identifies itself as an “emerging growth companyunder applicable U.S. federal securities laws, with numerous growth potential in the online luxury retailing sector in China, in accordance with the filing documents.
The location currently has 15.1 million registered members as of June 30, 2017. These consumers have demonstrated great purchasing power that permits them to spend more than 3,500 yuan ($528) per order, which is higher than the vast majority of e-commerce sites in Asia. Those members can shop over 3,000 international and domestic brands on the positioning.
The corporate reported a 49 percent growth in net revenue to 2,594-million yuan ($391 million) in 2016, even though it had a net lack of 45-million yuan ($6.8 million) during the identical period. Within the six months ending June 30 this year, Secoo had reversed the loss to realize a profit of 52-million yuan ($7.8 million).
The luxury e-tailer is also pioneering China’s online-to-offline (O2O) commerce revolution. It is without doubt one of the early e-commerce players attempting to create seamless digital and physical luxury shopping experiences for Chinese consumers. Secoo launched its first offline experience center in Beijing back in 2011, and unveiled its website and mobile app the same year. In the course of the past two years, it continued to set up offline experience centers in international locations including Shanghai, Chengdu, Hong Kong and Malaysia.
On the digital front, Secoo has taken a lead in enabling Alipay and WeChat Pay, installment payments, online appointments and many other luxurious lifestyle services to buyers.
The corporate can also be the exclusive distribution channel for certain products and brands in China. For instance, it started the collaboration with Tod’s in 2016 to exclusively sell among the brand’s customized items to Chinese consumers. It’s also the exclusive authorized retailer of Versace and Salvatore Ferragamo.