China’s purchasing power for Premium products has been proved once again, even during crisis.
Last time the luxury brand Alexander Wang attracted a lot of attention was because they sold a basket with 5888 yuan which in cooperation with McDonald’s. This time, Alexander Wang’s newest move was registered on T-mall, which is the brand’s first online store on the Chinese e-commerce platform. Currently, the fans of Alexander Wang’s T-mall store has reached more than 20,000.
E-commerce platforms will become the main sale channel for brands
According to the data, global luxury sales reached $310 billion in 2019, of which China contributed 35%. Online platforms will account for 12% of luxury sales in China in 2020 and 18% in 2025. This makes e-commerce the world’s third-largest market for luxury goods after China and the United States.
External pressure accelerated the speed of brand’s development of e-commerce platform
In the past, luxury brands were in a wait-and-see attitude towards e-commerce platforms. Under the pressure of digital consumption and the outbreak of coronavirus, luxury brands accelerated the speed of entering e-commerce platforms.
T-mall, as the giant of China’s e-commerce platform, is naturally the focus of luxury brands. Besides Alexander Wang, Prada, Cartier, and other brands also entered T-mall during the outbreak of coronavirus. Meanwhile, luxury brand Delvaux opened its first online flagship store on JD in early March.
While luxury brands are developing their e-commerce businesses, e-commerce platforms are also trying to expand the luxury market
Alibaba launched Luxury platform “Luxury Pavilion” in 2017, JD owns “Toplife”, “Secoo” is the only listed Luxury platform in China, and “Farfetch”, a British e-commerce platform, recently joined this battle.
China’s luxury purchasing power has been repeatedly demonstrated, and the outbreak of the virus has accelerated the deployment of luxury e-commerce.
If you want to promote your brand and products in China, it is not enough to just set up shop on the e-commerce platform. Weibo, Xiaohongshu and other social media also contain huge business opportunities. The pandemic makes live streaming a new trend…
Want to know more about Chinese e-commerce platforms and social media?
Want to evaluate which approach is more suitable for promoting your brand in China？
Contact us on the home page!