The Cettire Ltd (ASX: CTT) share price is finding momentum on Monday. Investors are getting behind the online luxury retailer following its plans to break into the Chinese market.
At the time of writing, shares in the nearly billion-dollar company are trading at $2.69, 15% above its previous close.
What's moving the Cettire share price today?
Cettire shareholders have been given a reason to celebrate today as the company looks to extend its grip on the luxury retail market.
According to its announcement, Cettire is laying down plans to break into the Chinese online luxury market. To do this, the company will be partnering up with e-commerce behemoth JD.Com Inc (NASDAQ: JD). For context, JD.com has more than 550 million active customers.
In the announcement, Cettire explained that the partnership would leverage the two e-commerce companies' strengths. This would include customers gaining access to Cettire's selection of luxury items. Meanwhile, JD.Com will drive traffic and brand awareness.
JD.Com's extensive network also means Cettire has an opportunity to utilise the Chinese company's local logistics capability. Considering the Cettire share price today, shareholders are seeing this as a major positive for the company.
Unsurprisingly, investors are rubbing their hands together today on the potential market opportunity. The metrics cited in Cettire's announcement suggest mainland China will be the world's largest market for personal luxury goods by 2025 — with a potential market size of A$150 billion.
Highlighting this, Cettire CEO Dean Mintz stated:
Our entry into China is a significant milestone towards our goal of being the world's largest luxury destination. China represents a vast market opportunity and it is core to our strategy to make our world class proposition available to additional markets. Today's announcement is another step in our strategic journey to achieve this goal.
What else?
To facilitate the expansion, Cettire has been pulling together a local talent pool in China. This pool emphasises world-class engineering talent. Already, a number of senior technology roles have been filled late last year.
Additionally, local recruitment is being considered important for developing features specific to the region. For instance, Cettire plans to launch Chinese language websites across all existing operations.
The Cettire share price is now up 249% in the last year. For comparison, the S&P/ASX 200 Index (ASX: XJO) is up a much less significant 3.6%.
