Luxury brands embrace digital storefronts in China, but will they click with buyers?
Mainlanders can already buy Giorgio Armani, Fendi and dozens of other top-brands through Tmall, but is an essential part of the experience getting lost in the digital translation?
Luxury good houses are increasingly migrating to online storefronts to tap the China market – with Gucci the latest to consider making the leap – but experts question whether the industry risks undermining its cachet by chasing after mass appeal.
Either way, Hong Kong is likely to suffer, as mainlanders continue to shift away from the city as their top shopping destination, although recent tax reforms unveiled by Beijing could offset some of the pain, at least in the short term.
Luxury sales to tourists at record low in March as Chinese spend 24pc less abroad
Retail portal Tmall.com made a strong foray into the market in late March when it teamed up with Mei.com, a pioneer in selling luxury, fashion and beauty items in China, offering Giorgio Armani and Fendi along with dozens of other high-end brands.
Around the same time, Swiss watchmaker IWC started selling its products on WeChat, the most popular social media tool on the mainland.
Mei.com founder Thibault Villet said a growing number of brands were deciding to go digital amid the wider boom in e-commerce.
In the beginning, it was very difficult to convince the brands to work with us
“In the beginning, it was very difficult to convince the brands to work with us,” Villet said. However, more would change their minds, he said, adding, “all those brands that have outlet business will one day work with online options. It’s just a matter of time.”