Is DeWu (Poizon) siphoning luxury sales in China?

Post by 
Dr. Thomas Piachaud
Published 
October 11, 2022

DeWu (得物) / Poizon was established in 2015, and after years of developing new and improved features has emerged as a vertically integrated marketplace, that combines XiaoHongShu style social media, with Amazon style commerce, offering the ability to buy directly from brands, distributors or even a linked second hand platform to buy nearly new products.

The big advantage of the platform is centered around its original DNA. Built for sneakerheads, the demographic of the platform is decidedly Gen Z, and also has a more gender balanced audience than other social media platforms that are typically more frequented by females.

This combination has aroused the interest of luxury brands who have started to form partnerships with the platform to create DTC selling. However, given the focus on discounts, being present on the platform offers a conundrum for brands wanting to maintain their brand image, price premium and not cannibalize from other platforms such as Tmall or brand owned digital ecosystems.

In our initial analysis of luxury products on DeWu, we have been able to uncover that according to data on the platform, certain products have been significantly outperforming with regard to sales on TMall flagship stores.

The data shown below looks at products that have been recently released by brands and the accumulated performance of the products on both DeWu and TMall flagship stores for Favorites, as well as units sold. The price shown is the current price on each platform and for DeWu specifically, a price range is shown given the availability of products across multiple channels with different pricing.

All of the shoes highlighted above have been released this year, and it can be seen that DeWu is able to generate up to ten times the unit sales than on the brands official TMall luxury flagship store. A clear and obvious reason behind this is the pricing differences which range from 10% all the way up to discounts of over 50% in the case of the SL 61.

Beyond sneakers, we also see this improved platform performance across other categories including handbags, RTW and accessories, making it difficult for brands to ignore this channel as either a potential opportunity or a potential threat.

This is our first initial look at DeWu, as we will be uncovering additional insights on luxury products on DeWu on a regular basis. Subscribe to our Newsletter if you don't want to miss any of our insights, or reach out if you want to know more about the insights we can deliver on DeWu or across major digital platforms in China on Merchandising, Ecommerce and Marketing

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