Luxury E-Commerce in China

Luxury E-Commerce in China
July 31 11:02 2017 Print This Article

More luxury brands are now expanding and tapping the ecommerce industry. Having a great success in the ecommerce industry, it has attracted different retailers most importantly in China. The country has the most online consumers which account for the progress in their economy. It has gained quite a huge amount of sales revenue and because of this, China is continuously evolving and developing the online shopping platforms.

Most recently, LVMH commonly known as Louis Vuitton, has introduced the French luxury brand in having an individual e-commerce platform. WeChat, the larger online platform in China, houses other brands for their e-commerce expansion. This includes Burberry, Dior, and Bulgari among other who have started maximizing the platform. As a matter of fact, these luxury brands have been adapting to technology through making their items available online. Additionally, it serves as a tool to market their products in China due to its online visibility. More Chinese consumers are becoming more interested and actually purchase luxury items online. A good percentage of purchases for certain brands are transacted online. However, this strategy may not be for all brands since some choose to keep the traditional store setup. Numerous brands still look into exclusivity and protection while those who are present on the e-commerce industry scene also have kept different stores and channels.

On the other hand, the US continues to develop strategies in their local stores. Although the rise and improvements in the revenue of online shopping it quite significant, American luxury stores stir away from this. In the American retailer perspective, luxury shopping is an experience at a store where a premium selection is available. Also, personal connections with the sales associates at stores are created; whereas online shopping provides limited interaction. Independent retailers are able to provide services more than selling an item. Sales associates create understanding and relation with top clients and this drives luxury brands in maintaining their local stores. The experience that is given to their customers becomes a part of the brand. In the US, this is an opportunity to know their consumers better. However, this does not mean that luxury brands in the US are conservative to being available online. Some brands also developed own platforms of their businesses online. The different strategies by the luxury brands are decided upon the market that is being targeted in different areas. Specifically luxury items, brands have more intention in having relations rather than merely closing a sale which is easy quite easy when done online.

The sales and marketing of the different luxury brands are varied depending on the type of consumers residing in a country. China is still considered a developing country since they have had economic reforms that began a few decades ago. Before then, the country was struggling to survive and redeem their power when the Nanjing Massacre occurred. Consequently, the US was already an established nation during this event. It is one of the main reasons why today, the trend in consumer responses differ. Chinese buyers are more brand conscious while the Americans are not. This is evident at how online shopping or e-commerce performs in the respective nations.

Luxury brands look into different factors as to how they are perceived by the consuming population. Generally, brands, whether luxury or not, perform good sales revenue in China’s e-commerce platform. The approach is different for consumers in the US because the quality of service, connection between the brand and the client and the relationships maintained are also essential parts of a long-term vision for the brands. It is a matter of preferences and effective strategy for each consumer bracket.

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Louise Rice
Louise Rice

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