Tiffany & co., Hermes, Christian Dior are amongst the few names that have made it to the online luxury market that are going to be grabbing a share of China’s US$73 billion annual luxury market.
China’s luxury goods market is currently composed of 50 million people and is still growing, meaning it now has the largest number of wealthiest people of any country in the world. And not only that, they tend to be more tech-savvy and younger than their global counterparts.
“Among international customers, Chinese ones are more digitally driven today, “said Remo Ruffini, the chairman and CEO of Moncler. “Technology related to consumption in China has made giant steps in recent years. Our challenge is of course to have a leading role with all these technological changes to create a new digital e-commerce experience.” Moncler set up a virtual store on WeChat last year, the global social platform in mainland China, where the customers could order the brand’s jackets, etc. It is also setting a pop-up store in the Tmall, the ecommerce site of the online giant Alibaba group.
Hazel Choi, a mother of two in Hong Kong and a frequent traveller, owns six or eight Moncler jackets, vests and other items, at a total cost of roughly US$8,000. When asked if they are worth the price, she replied, “Not really.” It’s the brand she likes, and she likes to shop in Moncler stores abroad, where prices are cheaper.
Pascal Martin, partner at OC&C Strategy Consultants, says that most of the growth in the China luxury market comes from online sales.
Although the luxury market is booming in China, nothing will be a stronger competitor than physically shopping in a luxury store as luxury consumers adore being pampered. The value and experience that comes with that is something that is unbeatable.