The Sale Of Luxury Goods In China Has Shifted To Wechat, Alibaba And Other Platforms.

As report goes,

Brand is integrating

And other popular online platforms, and marketing activities on social media such as micro-blog.

Tmall and Jingdong

Online shops are open on the platform.

Because of the lack of understanding of e-commerce technology and concerns about safety, luxury brands are slow to act.

Luxury online sales are still relatively low, accounting for only 5% of China's $22 billion 500 million luxury market, but the growth rate is fast.

According to a report by L2 of the business intelligence agency, sales of online luxury goods increased by 20% in 2015, a growth rate of nearly three times that of the overall luxury goods market.

Mobile phones have played an important role in particular.

The luxury brand search conducted by smart phone is nearly two times that of the computer terminal and increased by 44% over the same period in 2015.

WeChat has reached 700 million users, and micro-blog has more than 200 million users.

Data from Bain, a consultancy, show that analysts and companies are closely monitoring the Chinese consumption pattern, because Chinese consumers account for over 30% of global luxury spending and are driving the growth of the market.

L2 said that the Bobby group invited Chinese popular actor Wu Yifan to speak for his autumn winter men's clothing, allowing him to share exclusive content through micro-blog, which triggered an upsurge on the Internet in China, and the related news exploded social media.

Boboli expects revenue from the e-commerce platform will account for 1/3 of the company's total revenue in the next three years.

The company launched its coupons on WeChat and launched media campaigns through WeChat and micro-blog platforms.

Cartire aims at outbound Chinese consumers, offering location services and product plation tools on WeChat.

Cie. Financiere Richemont SA, Cartire's parent company, launched its e-commerce website for the "Shanghai" brand in China, and said it will launch its e-commerce website in the Asian region for its leather brand, LAN Zi.

According to L2, Zhou Dafu's official flagship store has been strong in Tmall and Jingdong platforms, and controls the search results of the Zhou Dafu brand on the two platforms.

A spokesman for Zhou Dafu said that a team of more than 250 employees was responsible for Zhou Dafu's e-commerce business. The company closely followed the search entries for key entries on Tmall and Jingdong platforms.

For brands seeking to gain control over online sales, Alibaba and other platforms selling fake goods are a big problem.

It is reported that Boboli's official flagship store on Alibaba's Tmall platform is partly due to a better grasp of the sales of Boboli parallel products on the platform.

According to L2 data, only 35% of luxury brands provide their brand e-commerce services through their own websites or through Tmall and Jingdong platforms.

"Luxury brands are all about control," said Elwan Ranpur, global joint head of HSBC consumer and retail research.

No matter the quality of the product, the price or the sales environment, there is control everywhere.

Therefore, brands tend to sell on their own websites, rather than cooperate with third parties. They must negotiate with third parties on fake goods.

"In general, luxury companies have three attitudes towards e-commerce platforms: accusation, neglect or participation," he added.

Many retailers have been shutting down some shops and switching to electronic business platforms after the rapid expansion of the boom period.

At that time, many brands flocked to China to cater for the needs of the new middle class.

In many two or three line cities in China, bright and spacious luxury stores are commonplace.

In addition, the extent to which e-commerce platforms can fill the gap in the profit margins of luxury brands is unknown.

The decrease in demand for luxury goods is partly due to changes in consumption habits and tastes.

The Chinese go abroad to buy big bags with cheaper euros and yen, rather than buying them at home.