Everyone in the luxury industry understands that China now stands for luxury. Which is why the demand to target the Chinese luxury market is essential for sustainability and growth. A recent hotspot for capturing the most desired target audience is China’s online retailers which is also causing major controversy.

According to China Daily, China’s online retailers are now providing cheaper access to foreign luxury products than ever before. However, some businesses operating in the sector have had to face criticism from the very brands they carry.

Gucci, Swarovski and other luxury brands recently claimed that several Chinese business-to-customer (B2C) retailers, including the well-known Tmall, 360buy and Dangdang, are not authorized to sell their products online.

“We receive our goods from overseas distributors. All of the luxury items we sell are genuine,” said a 360buy customer service representative when asked about the source of their products.

Online retailers have seen booming sales of luxury goods, largely because they sell them for far lower prices than China’s brick-and-mortar stores. A small Swarovski pendant can be purchased on 360buy for 450 yuan ($71), or sixty percent of the 720-yuan price tag typically seen in stores.

However, it is the low prices that have attracted attention to these companies. Swarovski recently announced that it has the right to take legal action against Chinese online retailers if they are found to be selling products illegally in China.

“High-end brands are strict and organized in the way they administer their authorization,” said an employee of a Shenzhen-based luxury B2C retailer who identified herself as Zhao Ting.

Zhao said few of China’s online retailers have received authorization for the direct purchase and sale of luxury goods.

MosnarCommunications.com wonders will this impact the credibility of luxury brands? Truly, luxury is a perception but value is the authority of a luxury brand’s credibility. The entry into the Chinese luxury market must be strategic and a planned approach. However, Western entry into the online Chinese luxury market was something we thought of when the demand to target China became a desire of every major luxury brand player worldwide.

What we examined was the credibility of value and unlike the brick and mortar store concept online is vastly different. So in 2010, we quietly launched Chineseluxurybrands.com and did nothing with it but just let it sit. Likely, because we knew this day was coming. Our main focus has been to study the Chinese luxury market from a worldwide perspective.

Expect big things from Chineseluxurybrands.com in the near future! We have not had an official launch date or a design development for what the website will look like. The site you see is simply a placeholder over under construction.  In addition  Chineseluxurybrands.com will focus on credibility and mobile marketing to reach a global audience.

If you would like advertising inclusion for this project and content marketing inclusion please contact Ann@mosnarcommunications.com . As always we will only offer this to a select few exclusive luxury brands.

Leave a Reply