The market for luxury foreign goods sold via internet is considered to be potentially vast. Chinese buyers are attracted to luxury Western brands for many reasons such as better quality and the chance to show their economic status through those brands.
China’s online shopping sector is growing rapidly and has a huge potential.
The traditional method to sell luxury goods is losing market share in China. Some years ago, in order to expand their business to China, the strategy of luxury brands consisted to find the best location to their stores and build many shops around China without pay attention to communication with consumers, but this is no longer the way to have success in China.
Nowadays, due to the internet penetration and the increasing popularity of e-commerce platforms in China, luxury brands have to adapt their business and strategies to the digital world with the aim to maintain and even increase their sales in the Asian giant. In China there are more than 618 million Internet users and half of all of them are purchasing online.
Online sales in China
Online sales are booming in China because of the convenience of buy products online and the consumer access to a huge amount of products that are not available in brick and mortar stores. In addition, thanks to e-commerce, luxury brands have the chance to reach to consumers from cities where they haven’t brick and mortar stores.
About 40 percent of high-end brands don’t sell via Internet because they believe that Internet detracts from the physical store experience. This is a big mistake because luxury brands can also offer a high level of customer service via online. E-commerce is the next logical step for the luxury industry.
Burberry, a fashion brand from UK was the first luxury brand that launched an online store in China. In April 2014, the high-end brand opened an online shop on Tmall. Burberry’s online shop has had a positive effect on the removal of gray market brand products. After its launch, have disappeared the fake Burberry products from the Chinese e-commerce platform.
Burberry is the largest luxury brand fashion in China in terms of online sales. However, behind its success there is a strong digital marketing strategy.
Burberry is doing a great job in China due to its complete digital strategy. The British brand has adopted the e-commerce and social media on its marketing strategy in order to get the attention of Chinese consumers and expand the brand awareness.
Burberry has an active presence on Chinese social networks such as Weibo and WeChat. The brand provides quality and interesting content to its followers in order to attract them. Thanks to social networks, the fashion brand has reached to a huge amount of consumers and has influenced their purchasing decisions.
Since the creation of its online store, Burberry sales in China have rapidly increased and many other high-end brands have decided follow its steps.
The combination of an e-commerce platform and a digital strategy integrating Chinese social platforms is the secret of luxury brands in order to have success in China.
However, the majority of luxury brands with business in China remain slow to build their digital strategies and have no e-commerce sites.
If you are interested to develop a marketing digital strategy in China, don’t hesitate to contact us.
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