Secoo Establishes an AI Laboratory With the Chinese Academy Of Sciences

Secoo said it will use this AI laboratory to develop an intelligent authentication system and smart content tagging system to identify counterfeit luxury goods.

Author: Binwei Wang   

The stock of Secoo Holding Ltd. (Nasdaq: SECO) rose more than 2 percent on Wednesday, closing at $7.65 per American depositary share on reports the company has jointly established an AI laboratory with Chinese Academy of Sciences (CAS).

Based on the report, the two parties will each use their advantages in big data and artificial intelligence technology areas to develop an intelligent authentication system and smart content tagging system.

This will be a win-win cooperation for both of them to address the rapid development of the luxury industry through e-commerce with the authentication experience of Secoo and the research and talent strength of CAS.

Counterfeiting remains an important issue for the luxury industry. Grey market sales keep flooding the market with fake goods, and the luxury market lacks the authentication standards and professional appraiser training to identify them.

Even though according to the McKinsey Report, the Chinese luxury market will reach 1.2 trillion RMB by 2025.

Richard Li, the founder, and chief executive officer of Secoo said in the report, "We are very confident with CAS's advanced technology, understanding of big data and knowledge of AI application. We share the same goals on leveraging advanced technology to increase authentication accuracy. We hope that AI technology will not only change the authentication process and content tagging, but that it could also change the whole premium consumption ecosystem. With AI intelligent authentication, we will extend our authentication service to Secoo Group's social commerce, luxury resale business, cross border e-commerce, and an open platform authentication service."

Beyond AI authentication and content identification, the joint AI laboratory will work on consumer insights, big data, and artificial intelligence.

These innovations will help Secoo create new industry benchmarks and promote a technology revolution for the luxury goods market.