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. 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 tier-1 cities like Beijing and Shanghai; however, there is tremendous unmet demand in China’s lower-tier cities.
4 reasons why luxury brands should leap into China
1. China’s E-luxury market has proved its growth potential
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 B2C 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 China’s luxury market:
- The Best Practices of the digital marketing for Luxury in China
- Why the Chinese are buying luxury goods?