Fashion & Luxury E-Commerce in China

Fashion & Luxury E-Commerce in China

JANUARY 2015

Key insights on the world’s largest online market

China E-commerce 2/11

© Fashionbi - All rights Reserved

What do you get from this marketing research?

Luxury brands can’t benefit anymore with just emotional story-telling. They need to integrate local culture in their communication and sales methods too!

Omnichannel is the way to be connected 24/7 with the country’s netizens. Offer a free gift via mobile notification, the moment they pass your retail store!

Discounts & Social Media are not the only answers. The consumers need to be more assured of the authenticity and quality and of the worth on their

investments

Why Burberry and Forever 21 went the independent+TMall way, Hugo Boss and Zara opted for a standalone flagship and Clarks and Geox are

establishing their e-foot via just TMall first?



Some brands from our case-studies include:



Back in 2012, China became the world’s second-largest e-tail market right after the US. Last year, it overthrew the US as the e-commerce leader, thanks to its blazing-fast

39.4% growth on the previous year.

The country’s switch from an investment-heavy to a consumption-driven economic model proved fruitful.

600

500

400

300

200

0

2009 2010 2011 2012 2013 2014

100

2015

Value of e-commerce transactions in US and China, 2009-2015

Forecast



The m-commerce transaction size reached CNY 169.6 billion in 2014, 168.6% up on the previous year. Thanks to such an outstanding performance, m-commerce achieved 9.2% of the whole e-commerce market, proving its worth.

PC and Mobile market size in the China’s e-commerce from 2010 to 2017

40%

0%

20%

60%

100%

2010 2011 2012 2013 2014 2015 2016 2017

99.5%98.5%

95.2%

90.8%86.6%

83.2%79.5%

75.8%

0.5% 1.5% 4.8%9.2%

13.4%16.8%

20.5%24.2%

Proportion of transaction on pc terminal Proportion of transaction on mobile terminal

Note: The total transaction size of online shopping market in 2013 was 18 409 500 million,transaction on mobile terminal was 1 696 300 million Source www.iresearch.com.cn



Online Payment Methodologies: East versus West - and their relevance

Penetration rate of major payment methods for online purchases among Chinese consumers

63.1%

32.4%

4.8%

61.6%

% of Chinese online shoppers who use the payment method for online purchases

Online Banking Payment(including credit cards and debit cards)

Third Party Online Payment

Cash On Delivery

Transfer Money form Bank counters or Post Offices

WeChat (Weixin) Payments’ confirmation page



The most popular Fashion Online stores to get into and how the brands are embracing it so far?



Go standalone or go TMall flagship - which brands have been playing it safe and which ones have been making a

bold move to go independent and why?

> Burberry: standalone online store + Tmall flagship store

> Forever21: standalone online store + Tmall flagship store

> Hugo Boss: standalone online store

> Bally: standalone online store

> Zara: standalone online store

> Clarks: Tmall flagship store

> Geox: Tmall flagship store

> Timberland: Tmall flagship store



Learn the Dos & Donts of the industry in the Chinese marketplace - what to not take for granted, which steps and

rules to follow and how to integrate them in your image?

> Do: launch exclusive products just for this market; make the consumers feel special!

and much more...

> Do: collaborate with local e-comm platforms to decrease the counterfeits’ presence online; increase your credibility

> Dont: use traditional marketing left-overs to invest in internet and mobile; give smooth UX to the customers

> Dont: enter the market without a pre intensive study; sometimes your popularity in the West can be your bland point for the East



This is an excerpt from

“Fashion & Luxury E-commerce in ChinaKey Insights on the world’s largest online market”

(http://fashionbi.com/omni-search/publication)

The full Marketing Research contains in-depth analysis on the present day e- and m-commerce scenario in China and the changing consumer behavior shying away from the old luxury classics! Answers to -

what Western brands need to learn about the current target, their fears and expectations, the payment methodologies, the trusted e-commerce websites, the communications etc. - can all be found in this

research.

To access the full marketing research and more, become a member today: http://fashionbi.com/signup/member

DOWNLOAD PDF

or learn more from our website

> The Booming E and M-Commerce in China

> The changing consumer demands & needs

> The local owned payment methods online

> The most popular third party Chinese E-stores

> Fashion Brands E-commerce entrance strategies

> Results monitoring and optimization with e-tools

> Current and future e-commerce market trends

> The DOs and DONTs to succeed

http://fashionbi.com/insights/marketing-research/fashion-amp-luxury-e-commerce-in-china

Headquarters

Europe & North America - Via Malaga 4/6, Milan, Italy

Asia - Two Chinachem Plaza 68 Connaught Road Central - Hong Kong

Contact

Email: [email protected]

Website: www.fashionbi.com

Telephone: +39 02 45712471

We empower professionals to make smart decisions in the

fashion and luxury industry

Fashion & Luxury E-Commerce in China

Data & Analytics

Transcript of Fashion & Luxury E-Commerce in China