Luxury Brands Such As Louis Weedon And Gucci Enter The Mainland Online Shopping Market.

Hongkong media says the world is big. luxury brand Attitudes towards the mainland online market have changed. They once thought that the mainland online shopping market was a battleground, full of fake sellers and discounts and promotions that could damage their brand value.

It is reported that brands such as Louis Weedon and Gucci are now eagerly entering the electronic retail market worth 5 trillion yuan, hoping to attract hundreds of millions of mainland consumers to buy expensive luxury handbags and fashion like online shopping casual wear and daily necessities.

Spanish brand Roy Wei announced earlier this month that it will sell its "Barcelona" handbag at Alibaba's Tmall flash store. This marks the first time that luxury brands have ventured into the mainland's e-commerce market. In order to celebrate the "Chinese Valentine's Day" at the end of the month, the Roy based company, based in Madrid, even designed a beloved series of Barcelona handbags priced at 15 thousand and 900 yuan, which is aimed at Chinese online buyers.

In July, Louis Vuitton And Gucci announced the launch of e-commerce services in the mainland to enable mainland consumers to buy their products without restrictions on the distribution of shops or business hours.

It is reported that the obvious change of these brands has highlighted the following fact: the scale of the electronic retail market in the mainland is so large that they can not afford to despise the market, though there are still challenges.

Andrea Ds, an analyst with e-commerce market research, said: "where the consumer is, the brand will catch up. The prospect of the mainland market is so vast that luxury brands can not be ignored. Nor can they ignore the fact that the growing middle class in the mainland is increasingly buying luxury goods online, especially through mobile devices.

Andrea Cheng also said: "the mainland e-commerce giants headed by Alibaba's Tmall and Jingdong have been actively courting luxury brands and opening them on their own websites, while ensuring that they fight against fake products. These efforts also help to alleviate the uneasiness and hesitation of luxury brands.

According to the report, at present, more and more Chinese consumers, who account for about 1/3 of the world's luxury goods market, are buying luxuries rather than going out there.

According to the report, KPMG consulting, a global consultancy, predicts that by 2020, 50% of the luxury consumption in the mainland will be online.

Liz Flora, head of Asia Pacific Research Division, a New York based L2 market research firm, said that the change in consumer behavior has made luxury goods a new frontier for Tmall and Jingdong retailers. "They have reached a saturation point in the best selling brands, so luxury brands offer a relatively undeveloped profitable opportunity," she said.

In a recent report by L2 market research company, the official stores in Tmall and Jingdong were about 100% and 98% respectively, while luxury brands were only 24% and 10% respectively.

Flora said that this is because to attract more luxury brands, electronic retailer's brand image is still a problem to be solved.

In order to better enter the luxury brand, Alibaba recently launched the luxury Channel Luxury Pavilion, a high-end high-end brand, only invite some users to enter the platform. Tmall's main competitor, Jingdong, has launched a "white glove" distribution service, which will be delivered to the door by a courier wearing a black suit, a dark grey tie and a white glove.

The report said, however, whether mainland consumers will accept the full price purchase of luxury goods on the Internet is still a matter of waiting.

Wang Xiaofeng, a senior analyst at Forrest research, said that for luxury brands, Tmall and Jingdong flagship stores are more likely to play a marketing channel rather than a sales channel.

According to the report, reducing the spread of luxury goods is the biggest factor to attract mainland consumers into online stores.

Flora of L2 said, "as long as Luxury goods The price is still much higher than that outside the country, and most people will still go abroad to buy it. "

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