Rivalries in the digital landscape have intensified lately. Local e-commerce giants and social media platforms are diversifying their business models to optimize revenue streams, while some early adopters in the luxury sector have expanded their presence beyond WeChat, Weibo and Tmall. Social commerce is evolving. Emerging platforms are one of them. Poizon, in particular, has great potential – now home to China’s largest online streetwear community. How better, then, for luxury homes to navigate there?
What it is:
Poizon is a full-fledged fashion marketplace for authentic designer and luxury brand sneakers, clothes, bags, watches and accessories, as well as artwork. Before that, Poizon started as a content-sharing community with a focus on streetwear when it was founded in 2015. Two years later, the platform made its foray into e-commerce and rolled out dedicated authentication. It was this journey that enabled his unique business model. Based on two pillars, namely community and shopping, it facilitates a clear and efficient closed loop from content to commerce.
What it offers:
Every order placed on Poizon must go through a quality verification and inspection process. This means that the seller must send the products to the platform’s professional authenticators; items that pass the process come with a set of Poizon-branded packaging including an exclusive Certificate of Authenticity, tamper-evident cable tie, and custom packaging. Additionally, Poizon has the largest library of AR shoe designs in the world. Its “AR try-on” feature is used by 30% of customers every day, according to data from Poizon. With their phone’s camera, consumers can intuitively feel the size, details and even the actual effect of the product.
What makes it different:
Targeting the younger generation, Poizon is only available on mobile apps. Users are welcome to place orders on the spot via shopping links in posts, and can share their authentic experiences and style inspirations after receiving the products. This builds brand equity and establishes loyal communities.
Why is this important:
Gen Zers make up nearly 90% of Poizon users, as shared with Daily Jing. Compared to older generations, this demographic tends to be more educated, with a broader outlook and a greater focus on quality. In addition to desiring novelty, they are driven by the perspective of a community and enjoy sharing their products and thoughts with like-minded peers. With all of this in mind, Poizon has created not just an online shopping destination, but a virtual space in which to forge emotional connections with others.
In addition, the brands launched on Poizon benefit from an efficiency that sets it apart from its competitors. Unlike other social media platforms and e-commerce sites, Poizon takes care of day-to-day operations that are usually outsourced to third-party agencies. There are no listing fees for branded merchants – a high cost on marketplaces like Tmall. And all of its marketing and promotional resources are free.
For this reason, there are now more than 10 global brands partnering with the platform, such as Kering Eyewear, Coach and Zenith. Coach announced the collaboration in May 2021, selling handbags, leather goods and accessories, simultaneously offering its range on the app as well as in its own stores. The affordable luxury American brand has also launched limited-edition products there ahead of their official launch. Meanwhile, in July 2021, LVMH-owned luxury watchmaker ZENITH unveiled an exclusive set for him.
Occasional declines were also observed. In January 2022, Moncler launched its collaboration with POP MART’S MEGA COLLECTION, with an extra-large collectible toy, both on Poizon and its WeChat Mini program. The brand has not yet opened an official account.
At the end of the line :
Until now, most of the products available on the platform are resale items. This has led to price variations and concerns about authenticity, despite the verification service provided. But the resale value of luxury can shore up brand equity, as proven by legendary collaborations like Louis Vuitton x Supreme and Dior x Air Jordan.
Indeed, there are untapped opportunities given the platform’s young user base and reselling capabilities. However, according to the current brand portfolio in the market, major luxury brands seem hesitant to open official accounts. A cautious approach might be ad hoc collaboration. What do they have to lose?