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    Luxury Brand Online Layout Lags Behind Chinese Market Changes

    2015/10/28 14:34:00 30

    Luxury GoodsGlobal Luxury MarketLuxury Brands In E-Commerce Channels

    It is reported that 45% of respondents mainly purchase luxury goods through Internet channels.

    In the past two years, some luxury brands have begun to explore new channels for e-commerce.

    However, more luxury brands still fail to get through the channel of e-commerce.

    More and more Chinese are buying through Internet channels.

    Luxury goods

    But the response of many luxury giants appears to be a hindsight.

    A survey of online shopping luxuries by Chinese consumers, KPMG, an international consultancy KPMG, showed that online shopping volume exploded in luxury consumption, but only 5 of the top 60 luxury brands opened their own online stores.

    The analysis indicates that the brand online layout has lagged behind the changes in the Chinese market.


    Wei Yibo, President and co founder of glamour, said luxury brands are busy expanding their network in China. They did not expect Chinese consumers to switch to online shopping so fast that their online layout has lagged behind the changes in the Chinese market.

    45%, the trend of online shopping discount is weakening.

    Ten years ago, China's luxury goods consumption groups hardly existed, and now their consumption accounts for.

    Global luxury market

    More than 30% of sales.

    In recent years, the industry change brought by the Internet has made the electricity supplier channel a mainstream channel for Chinese consumers to buy luxury goods.

    In this process, the buying habits of Chinese consumers are changing rapidly.

    According to KPMG's report, 45% of respondents bought luxury goods mainly through Internet channels.

    For goods with a unit price below 4200 yuan, they indicated that they could rest assured that online payments would increase by 121% compared with the 1900 yuan surveyed in 2014.

    Although prices and discounts are still the main drivers of online shopping, purchase convenience, variety and pursuit of unique or personalized products have also become key factors, among which the latter is particularly prevalent among young respondents.

    51% of respondents said that they chose online shopping because online shopping can ensure the origin of products.

    32% of respondents believe that online shopping is to get more products and brand choices.

    This is especially true in some small and medium-sized cities where some brand channels have not yet sunk.

    Wei Yibo said that sales promotion and discount are still the biggest driving force for the development of online shopping in China.

    This means that the market is in the initial stage, that is, the "discount leading stage".

    Thus we can imagine the potential of e-commerce after the arrival of "full price leading stage".

    At present, although the consumption power and demand of Chinese consumers are huge, the orderly market has not yet been formed.

    KPMG's Chinese partner and partner of Asia Pacific retail and consumer goods, Dai Lihang, said that online shopping is also increasing. Online sales are becoming more and more indispensable for brand positioning.

    "I think this is a process of pformation. Seeing this trend is becoming more and more important for the brand."

    Response is not timely, the electricity supplier is still testing the water.

    In the past two years, some luxury brands have begun to explore new channels for e-commerce.

    Burberry entered Tmall in April last year, and in September this year, Coach, which had been away for four years, returned to Tmall.

    In October this year, Cartier formally launched online boutiques in China.

    Channel, a luxury giant who strongly rejected the electricity supplier, has also said it will launch global e-commerce services in 2016.

    An industry engaged in luxury research for many years said in an interview with reporters, "luxury goods in China are busy making money when they are busy with physical stores in the past. They all want to take advantage of the rapid expansion of luxury goods, and there is no reason for the brand to venture to do business.

    Not only in China, but also in the early years of Yoox, a luxury electric supplier abroad.

    He also believes that luxury brands are obviously not responsive to the rapid changes in luxury purchasing channels of Chinese consumers in recent two years, and generally they are ambiguous about the electricity supplier.

    Although some brands have begun to lay out the line, but in essence, they are also under the pressure of declining sales of physical stores. They are still in the test stage. They are very passive in the electricity supplier market, and often encounter sales embarrassment. The so-called electricity supplier channel has also become a slogan.

    At the same time, more luxury brands still do not get through e-commerce channels.

    Fifth Avenue luxury goods network COO sun Duffy believes that the rhythm of luxury brands entering the electricity market in China can not keep up with the pace of consumers.

    The market changes brought about by the rapid development of "Internet +" make the luxury brands lack a full understanding of the Chinese market.

    "I have contacted many brands, and they are very conservative.

    The Internet subversion of traditional brands is very fast. The luxury giant of big business is now unable to get rid of it. Many brands have set up the electricity supplier department this year.

    Such as Shanghai Xinyu watch group, as the largest watch group in the world, owns the general agency in China, such as Cartire, Tissot and Patek Philippe, and has hundreds of stores in China.

    Last year, the electricity supplier team was set up. This year, Tmall and Jingdong began to contact.

    And the whole team is 50-70 years old.

    They don't understand the market, they act slowly. "

    In Sun Duofei's view,

    Luxury brands in e-commerce channels

    The slow development has also led to rampant online sales in China.

    "The huge price gap at home and abroad is one of the reasons. On the other hand, the brand does not have an authorized official channel, and there is a demand for online shopping. Naturally, there will be many selling fake goods."

    Zhou Ting, director of the luxury goods field and President of the Institute of wealth quality, told reporters that luxury brands have always been cautious about touches, mainly because they are worried about the damage of high-end brand image.

    Channels need to get through the same line and the same price.

    In the eyes of a deep industry, luxury brands are determined to set up an e-commerce channel.

    It is an inexorable trend of luxury development to get through the online and offline lines and achieve the same price on the same line.

    At the same time, we must open up mobile terminals and PC terminals, and take full channel development strategy.

    The whole channel is not only a shopping platform, but also a CRM platform to get users' information, interact with users, and make statistical analysis of user data.

    In this way, luxury brands can understand the needs and changes of consumers in time.

    In addition, the brand must build its own platform.

    "There are also cases of cooperation between luxury goods and third party e-commerce, but at the moment it seems that they are not very successful."

    Sun Duffy said that luxury brands are now in urgent need of power providers, and they should quickly clear away the channels for selling online products.

    "The previous authorization of the brand is secretive, so it is better to do so.

    For example, CITIZEN, a Japanese brand, circulated counterfeit products online many years ago. Later, the company produced an electric business system, which can dock with many platforms and distributors, and the price is also consistent with the online.

    All the fake items on the platform were then put off.

    The brand treats the new market with an open mind. Instead of selling fake products on its platform, the company is not as active as the company itself. At present, fake commodities have been basically eliminated.

    Sun Duffy believes that cooperation with the third party e-commerce platform is also an option for luxury brands to develop e-commerce.

    "If we cooperate with the third party e-commerce platform to open high-end flagship stores, this platform is more suitable for consumers who often buy luxury goods.

    At the same time, other unauthorized sales channels will naturally shrink.

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