Luxury Goods In China Are Still Promising, And Will Continue To Grow In The Future.

In 2015, it was only a year ago. In the long run, the prospect of luxury brands in China is still optimistic, mainly due to China's growing middle class.

According to the definition of the report, the annual income of the "middle class lower class" is 100 thousand to 200 thousand yuan, and the annual income of the upper middle class can reach 200 thousand to 500 thousand yuan.

Even if China's overall economic growth slows, the sum of money held by the middle class is a considerable sum.

Although many luxury brands worry that selling products online will overexpose their brands, more and more luxury goods, including watches and jewellery brands, have joined the booming Chinese electricity supplier market.

According to a FDKG report, in November 2015, Cartier and Van Cleef & Arpels were low-key in China's e-commerce platform.

Prior to that, in September last year, LVMH's watch brand Tag Heuer was launched on Jingdong mall, and Piaget and Montblanc were also doing trial business at China online store.

In China, mobile phones are gradually replacing the status of wallets.

Owning an electronic business platform is more economical and efficient than opening stores in every potential market.

Because of the rise of the domestic electricity supplier market, many luxury brands including Armani, Ferragamo and Chanel have begun to cut down the number of stores in the Chinese market in order to find a balance between offline and online stores.

According to the FDKG survey data, with the growth of the younger generation of consumers in China, especially under the influence of increasingly complex mobile Internet environment, all of this may change a lot.

If luxury brands can persuade consumers to agree to online services on the brand, as well as offline stores, more and more wealthy Chinese will buy a 15000 yuan Necklace online.

According to McKinsey's data, luxury online sales account for 4% of the total market, and two times the overall growth rate of the luxury goods industry.

If we continue to grow at this rate, 5 years later, the online consumption of the luxury goods industry can reach 20 billion euros. I believe whoever sees such figures will be heartbeat. This is also why luxury brands pour into the Chinese electricity supplier market.

The latest 2015 China electricity supplier report "Internet branding and brand internet" shows that in 2014, China's online retail market penetration reached a record high of 11%, reaching 2 trillion and 900 billion yuan in total.

It is expected that by 2020, online penetration will further increase to 22%, up to 10 trillion yuan.

At the same time, consumers' awareness of the pursuit of quality brands and products has gradually increased.

The report believes that cross-border electricity providers are expected to contribute a higher share of total online consumption and are expected to achieve a compound annual growth rate of 30%, which is expected to reach 1 trillion in 2020.

Among them, food and maternal and child products will lead to growth, and the compound growth rate will exceed 30% by 2020.

In view of China's special consumption environment, those categories that emphasize safety, such as food and maternal and infant products, and larger categories at home and abroad, such as clothing and consumer electronics, become the main force of online cross-border purchases.

Online shopping consumers' awareness of quality brands and products has gradually increased.

The report points out that early consumers are more concerned about prices, leading to the trend of non branding in both online and offline sectors.

Today, this phenomenon has changed significantly.

According to Eri's survey of online shopping users in 2014, 48% of the respondents chose product quality as a factor in online shopping, which even exceeded the price, becoming the most important factor.

Ding Jie, a global partner of the Bain company, said: "China's e-commerce has developed into a brand and quality fair competition arena.

As for online sales, luxury brands often weigh their pros and cons. For example, in addition to adopting a simpler Alipay payment method, the announcement of the price on the Internet may accelerate the purchase decision of consumers and reduce the time of thinking.

Besides, selling products online can facilitate consumers in two or three tier cities in China, because there are no luxury brand counters in some parts of China. These consumers often look for purchasing agents, because if they do not travel, through online shopping, this is the only way they can buy goods.

However, China's online sales are certainly not without risks.

Logistics and parcel safety have always been a difficult problem for China, but trust in this area is growing rapidly, but it is still not enough.

A recent KPMG survey found that Chinese luxury consumers are more willing to buy products below the price of 4200 yuan online. The report predicts that they may be willing to spend more in the future, because last year's survey showed that they only willing to spend less than 1900 yuan.

According to FDKG's new report, many luxury brands have launched e-commerce websites in China in the past year, but for Chinese consumers, luxury shopping online is still a high-risk business.

Although consumers will still choose to shop online, the amount of $14 billion created by Chinese consumers during last year's double eleven shows that online shopping has become more and more popular.

According to the analysis, most luxury brands are in the stage of implementing the test business, because they are still cautious about the Chinese electricity supplier market.

Some brands that have already set up online sales channels in China, such as Cartire, have remained low-key.

Cartire only sent messages to WeChat fans, and kept news of online shop platforms in small communities.