Welcome! Saturday - Aug 19, 2017

3 Reasons Why Luxury Should Embrace E-commerce in China


” It is difficult to differentiate between true luxury shoppers and those one off buyers in search of a good deal, but luxury brands need to take action now. If you wait for the infrastructure to reach optimal levels, it will be too late.”

Says Julia Q. Zhu, founder of Observer Solutions in the latest discussion with Thoughtful Media. Watch the video to learn why luxury brands should embrace e-commerce in China (9:24 mark) or you can read the full transcript below:

 

Luxury companies face many challenges using e-commerce in China.There are brand protection issues related to fake products. It’s hard to deliver a high-quality online shopping experience on par with offline retail channels and it’s difficult to differentiate between true luxury shoppers and those one-off buyers in search of a good deal.

But luxury brands need to take action now and here’s why.

First, the fundamentals are already in place. China is already home to the world’s largest online shopper population and the Chinese government views the development of e-commerce as critical to future economic growth.

If you wait for the infrastructure to reach optimal levels, it will be too late. By entering now, you gain necessary experience as the market matures.

Second, e-commerce has already challenged and transformed China’s traditional retail industry. Chinese offline retailers are proactively going online or being forced to embrace the online channel, and Chinese online consumers are becoming more sophisticated.

Finally, luxury consumers outside of major metropolises such as Beijing and Shanghai crave the latest luxury products, yet given the sheer geographic size of China, it is nearly impossible for luxury retailers to open traditional brick-and-mortar stores fast enough to establish a direct presence in every possible location.
E-commerce is the best way to enable luxury brands to fulfill unmet demand.

China’s e-commerce market will continue to grow at double-digit rates over the next three years. For luxury brands that commit to the Chinese market, you will need to take time to develop your China e-commerce operations and understand Chinese e-luxury consumers.

Chances are your competitors have are already entered the market, so why not start early? If not now, then when?

 

Click here to view the video from inside China.

Leave a Reply

Your email address will not be published. Required fields are marked *

Predefined Skins

Primary Color

Background Color

Example Patterns

demo demo demo demo demo demo demo demo demo demo