China’s online luxury market
China’s online luxury has become one of the most interesting market in the online luxury industry and is set for an industry renaissance.
It is already home to the world’s largest online shopper population with 242 million eshoppers.
It looks set to be worth $296 billion in 2013 as China surpasses America to be the world’s top e-commerce market. According to a new report by Washington-based Observer Solutions today, the country’s online luxury sales will be worth an estimated $27 billion this year.
China’s priciest and most prestigious e-stores are a diverse bunch of excellent businesses, from global “haute couture” brands to homegrown startups, to high-end flash sales site.
At the same time, China’s traditional luxury market has reached a new level of maturity, which requires a different approach. Western luxury brands have executed well in the biggest cities like Beijing and Shanghai; however, there is a huge unmet demand in China’s lower-tier cities. Relying on traditional brick and mortar stores is a costly and time-intensive strategy for inland China expansion.
4 reasons why luxury brands should lead into China !
1. China’s E-luxury market has proved its growth potential
Internet is very important to sensitive Chinese High End Consumers. Before any purchase they will search online information. It is important that they find good information about your company, your products.
2. The war for China’s E-luxury market has already started
As early as 2005, groups of Chinese individual sellers began purchasing luxury overseas for re-sale on small stores hosted by Taobao.com. This informal market is still thriving. Since 2010, dozens of vertical BtoC luxury shopping sites have emerged.
3. Chinese consumers are positive about luxury online shopping
Many people think that Chinese consumers are not willing to buy luxury goods online. However, the data suggests that nearly 70% of Chinese consumers are open to luxury shopping online.
4. E-Commerce is a smart way to solve the offline expansion dilemma
More information about Ecommerce in China here.
More information about the proper Digital Strategy in China ? Here !