Date
25 September 2017
British brand Burberry already sells its wares in the mainland on its Chinese-language website. Photo: cn.burberry.com
British brand Burberry already sells its wares in the mainland on its Chinese-language website. Photo: cn.burberry.com

Half of luxury spending in China seen going online by 2020

Lower prices used to the main motive for mainlanders to shop online.

People love to look for bargains, and there is no better place for those, even if it means taking the risk of getting a knockoff.

But a recent study shows consumer behavior is changing.

More luxury products will be bought through the internet, and price is no longer the deciding factor.

At the moment, only 5-10 percent of luxury products are sold online in mainland China, but this share is expected to grow to 50 percent in 2020, a KPMG report said.

Price competitiveness aside, Chinese customers are switching to e-shopping because they prefer foreign-made products, and that is becoming a major reason why they shop online.

Also driving more mainland shoppers to e-shopping is the desire for uniqueness.

People are no longer happy owning what others also have.

Through the internet, they now have access to different brands from all over the world, the report said.

To compete effectively, companies need to have a good strategy for the mobile internet.

As the number of surfers on mobile devices already exceeds those using personal computers to browse the internet, smartphones will be a key channel for companies to reach on-line shoppers.

Consumers of luxury goods usually collect information through multiple channels, including social media and online blogs, and they also like to visit physical stores as well.

Companies should therefore reach out to them through multiple channels.

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FL

EJ Insight writer

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