Why luxury brands no longer give China’s online marketplaces the cold shoulder
The world’s biggest luxury brands are increasingly jumping into China’s US$751 billion e-retail market
The world’s biggest luxury brands have had a change of heart towards China’s online marketplaces, which they once saw as a no-win battleground of counterfeit sellers, discounts and sales that tear away their brand value.
The likes of Louis Vuitton and Gucci are now jumping into the country’s 5 trillion yuan (US$751 billion) e-retail market, hoping to woo the hundreds of millions of Chinese shoppers to buy big-ticket luxury handbags and couture, as they would of casual clothing and daily grocery online.
Spanish brand Loewe announced earlier this month that it will hold a flash sale of its iconic “Barcelona” handbag on Alibaba’s Tmall platform, marking the LVMH-owned luxury house’s first venture into China’s e-commerce market. In honour of Chinese Valentine’s Day later this month, Madrid-based Loewe had even designed the “Hearts” Barcelona bag with a price tag of 15,900 yuan, exclusively for China’s online shoppers.
In July, both Louis Vuitton and Gucci launched e-commerce services in China, allowing Chinese customers to shop without the restrictions of store locations or business opening hours.
The apparent turnaround from the brands underscores the reality that the Chinese e-retail market is so massive that they cannot afford to take lightly of, albeit the challenges that continue to exist.
