Luxury Brands Choose To Enter The Electricity Market And Fight For The Market.

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.

Chinese young consumers use mobile devices more frequently than computers.

This development has provided a precondition for luxury brands to have a significant impact on social marketing, e-commerce and even retail sales.

The development of mobile apps in China is closely related to the increasing popularity of WeChat in mobile communications applications. Last year, the record of active users in 468 million months was recorded.

The rapid rise of the app has prompted many luxury brands to scramble to establish their official accounts in WeChat.

Compared with the purchase of large LOGO products, the younger generation in China will be more open to meet less well-known luxury brands.

In addition, frequent discounts on luxury brands also attract consumers who like discounts, which are intended to win over millennial consumers.

In terms of 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 consumer purchase decisions and reduce the time for 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 the new report of FDKG, in the past year, many

The e-commerce website has been launched in China, 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.

Traditionally, sales of luxury brands are exclusive, and their boutiques only receive a few guests at a time. However, all this happens only when performance is strong. At present, most luxury brands are faced with performance resistance.

Luxury brands now have an e-commerce website that lists the prices of all products, allowing some loyal consumers or first time consumers to shop comfortably without having to enter the store in person. If Chinese consumers see the price difference between online stores and offline stores and European stores, this pparent pricing method will stimulate the development of local purchasing power.

Under the stimulation of sales promotion, Chinese consumers will also choose to shop online.

Last November 11th, online sales of double eleven shopping day broke record.

Within 24 hours,

Turnover exceeded $14 billion, an increase of 60% over the previous year.

Because of Alipay, online shopping in China has become very easy, which has become the preferred way of payment for Chinese consumers.

According to a new study by Boston Consulting Group and AliResearch Institute, even if the economy is in a bad state, the expenditure of Chinese consumers is expected to increase by US $2 trillion and 300 billion in 2020. By 2020, household disposable income will exceed US $24000, which will drive a 81% increase in consumer spending and create consumer demand for luxury brands and high quality services.

As incomes rise, the younger generation will get bigger.

To boost the growth of e-commerce expenditure, luxury brands also need to adjust their strategic plans accordingly.

Although some retailers attribute their performance decline to China's anti-corruption measures, the ultimate failure is usually due to lack of research and lack of understanding of the complexity of the Chinese market.

In order to succeed in China, luxury brands must adapt to the preferences of young consumers and attract Chinese consumers through targeted retail and marketing strategies.

At the end of last year, LucaSolca, a bank analyst at Paris, France, said that the online fashion and luxury market has become more and more important, especially when luxury companies realize that increasing physical stores is no longer the only choice.

China's electricity supplier market has been infiltrated, luxury brands have to consider how to give consumers the convenience of online shopping, and seamless connection with offline stores.

Over the past few years, sales of luxury brands in China have increased by 30%, and this high growth rate is expected to continue.