Waldorf Astoria

Chinese consumers demand for online luxury

Isaac Mostovicz writes that luxury is on the rise in China...

A recent survey found that half of China’s urban residents say they prefer buying luxury items online because prices are cheaper than franchised stores.

While this fact is very interesting, and suggests that more companies should make an effort to offer their wares online in China, interest in luxury in general in China is growing rapidly. The Chinese are buying more luxury cars and SUVs than ever before — 500,000 will be purchased this year, compared with 98,000 five years ago. Luxury companies are opening stores (Louis Vuitton opened two flagship stores on the same day in Shanghai earlier this year) or are thinking of opening stores (Harrod’s comes to mind), and luxury hotels (like the Waldorf Astoria Club Hotel) are popping up all over the place.

All this suggests that marketers from the west are beginning to understand how the Chinese interact with luxury, but a great deal more can be done to enhance sales and the experience of buyers. The key is understanding how individuals interpret luxury, and this often comes down to understanding culture.

Photo by gruntzooki

Jing Daily says of this article...

I agree that online is a key access point for Chinese consumers, due to the convenience as well as avoiding the additional luxury and import taxes products in stores have. Though many luxury brands are beginning to understand how to interact with the new wealth class in China, many are not connecting effectively enough online. With younger and more sophisticated consumers spending more and more time online, digital outreach in China’s unique online landscape is gaining more and more importance. L2 ThinkTank did a study on the digital IQ of some of the top luxury brands.

http://www.jingdaily.com/en/luxury/which-luxury-brands-are-connecting-digitally-with-chinese-consumers/

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