How Hermès and the ‘men in black’ have stepped up luxury online shopping delivery in China
- As mainland shoppers increasingly buy high-end goods online, companies hope to cater to demand that accounted for one-third of last year’s luxury global spending
The Beijing delivery man who arrived with Christine Lin’s new silver bracelet came dressed in an elegant black suit – complete with white gloves.
He knocked on the door of her flat holding a delicate black box tied with a golden ribbon.
Brands know that they need to crack China – and they need to crack China digitally
Handing it to Lin, he asked her to confirm receipt with a fountain pen. Inside, under layers of glossy wrapping paper, was the US$90 limited-edition bracelet (from a brand co-founded by Hermès International and a local designer) along with a “thank you” card from JD.com, the e-commerce website that had arranged the special delivery.
“It was so ceremonial,’’ Lin, a 23-year-old app and product designer said.
“Shopping on these online platforms is like enjoying a visual feast that’s curated for you.’’
Shoppers from China accounted for one-third of global spending on luxury items last year and Chinese luxury consumption will nearly double to about 1.2 trillion yuan (US$175 billion) by 2025 from 770 billion yuan last year, the consultancy McKinsey & Co. estimated in a report published April 26.
It was so ceremonial. Shopping on these online platforms is like enjoying a visual feast that’s curated for you.
Yet many people in China are now making those high-end purchases online – a challenge for companies that have built their businesses and the aura around their brands by coddling shoppers inside swanky stores with personal service.
The changes are forcing global luxury companies to sometimes rethink decades-old strategies and test new ones tailored to the Chinese market.