China Luxury eCommerce: Attitude, Concerns and Motivations

TMO Group TMO Group


Many people think that Chinese consumers are not willing to buy luxury goods online.

However, the data suggests that nearly 70% of Chinese consumers are open to luxury shopping online.

Chinese Consumer Willingness to Shop Online


What prevents consumers from actually shopping for luxury online is concerns about product authenticity and quality. Nearly 50% of Chinese consumers worry that the luxury products they find online are not genuine merchandise.Chinese Consumer Concerns About Purchasing Luxury Goods Online


At this stage, what drives luxury consumers to shop online despite the risks associated with product authenticity and quality is price differential.

Access to larger selection and greater product availability are also important, but 70% of consumers are seeking attractive goods at affordable prices.

Motivations for luxury Shopping Online

The fundamentals are already in place. Many Chinese consumers are accustomed to shopping online, and more are signing up in record numbers every day. Luxury consumers outside of major metropolises such as Beijing and Shanghai crave the latest luxury products, yet given the sheer geographic size of China, it is nearly impossible for luxury retailers to open traditional brick-and-mortar stores fast enough to establish a direct presence in every possible location. E-commerce is the best way to enable luxury brands to fulfill unmet demand in China’s inland provinces.

However, brands face barriers to entry, as Chinese consumers need assurance that the products they buy online will be of the highest quality and authenticity. Luxury brands should move for short-term growth by partnering with a reputable third-party luxury e-commerce platform, while also beginning to establish a branded online presence for long-term success. Long-term is the key for standalone luxury sites, and as the case of Neiman Marcus shows, it takes much longer than a year to build a reputable brand online in China.

The dual megatrends of China’s luxury market boom and its e-commerce explosion make for an unprecedented opportunity for luxury brands. The time to strike is now.

via: Observer Solutions

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