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Core Insights - The article discusses the recent trend of luxury brands, including Burberry, being sold on the Hema app, indicating a shift in retail strategies to adapt to changing consumer behaviors and market conditions [1][2][6]. Group 1: Luxury Brands on Hema - Hema has introduced luxury products from Burberry, including clothing and accessories, with significant discounts compared to original prices, such as a classic check shawl priced at 2799-3188 yuan and a double-breasted coat at 3450 yuan [1][2]. - Other luxury brands available on Hema include Gucci, Fendi, and Balenciaga, as well as light luxury brands like Versace and Coach, expanding the range of products for consumers [2][4]. - The luxury products are categorized under Hema's "Global Purchase" section, with items sold by overseas third-party sellers through a cross-border e-commerce platform [3][7]. Group 2: Market Trends and Consumer Behavior - The article highlights a shift in the luxury retail landscape, where traditional luxury brands are exploring new sales channels to alleviate inventory pressure amid a challenging market environment [2][4]. - The trend of purchasing luxury items in supermarkets is becoming more common, with consumers increasingly viewing supermarkets as viable options for acquiring luxury goods [4][11]. - Burberry's declining brand value and sales performance have prompted the brand to adopt discount strategies, which have recently led to a recovery in its performance [4][6]. Group 3: Hema's Business Strategy - Hema is expanding its "Global Selection" series, which includes a variety of products, with a focus on luxury and light luxury brands, indicating a strategic move to diversify its offerings [7][20]. - The company has achieved its first annual profitability after ten years of operation, with a GMV exceeding 75 billion yuan and a year-on-year growth of over 27% [16][20]. - Hema's integration with Alibaba's cross-border e-commerce system allows it to offer luxury products online, leveraging its existing online sales structure where online transactions contribute over 60% of its GMV [20][21].