The luxury market in China is booming and with it is the demand for fashionable European brands. In a move to bring these coveted small luxury European brands to the Chinese consumer, the Chinese e-commerce industry has targeted this growing trend. With Chinese e-commerce companies like Alibaba and Jingdong expanding their offerings to bring high-end European brands to the Chinese consumerbase, Chinese consumers are being introduced to the luxury of European fashion.
1. E-Commerce Industry in China Aiming High
The future of the e-commerce industry in China is looking incredibly bright, with the world’s biggest brands flocking to the Chinese market in droves. With the country’s active expansion of infrastructure, supportive policies, and market opportunities, there’s no doubt that e-commerce in China is reaching for the stars.
Just take a look at these stats:
- China’s e-commerce revenue has ballooned to over 7 trillion yuan in 2018, overtaking the US as the world’s top e-commerce market.
- Industry-wide data suggests that mobile-commerce is making up an ever-increasing portion of online sales, nearing 70% of all online sales in 2018.
- This year, the industry is projected to grow by 18% to 8.3 trillion yuan, with m-commerce commanding 73.6% of the marketplace.
From the physical infrastructure of 5G networks to supportive government policies and an ever-growing consumer base, the Chinese e-commerce market is showing no signs of slowing down any time soon. And with big names like Alibaba and JD.com dominating the Chinese marketplace, there’s no doubt that the future of e-commerce in China is looking incredibly bright.
4. China’s Global Pursuit of Premium Brands Gains Momentum
China’s expansive market of increasingly affluent consumers has recently propelled the country’s pursuit to gain more premium brands both at home and abroad. International players from Europe and the United States are courted by major Chinese digital retailers who can offer them unprecedented market access and shiest them into the Chinese lifestyle. According to the General Administration of Customs, luxury products worth $25.8 billion were imported into China in 2017, up 22.9 percent year on year.
The allure of brand familiarity creates accessible, high-value shopping experiences for the Chinese customers. Steady growth into digital channels, physical stores, and lifestyle services such as beauty salons, spas, and members-only clubs, is allowing many Chinese customers to benefit from experiencing premium brands in a new and convenient way.
- China is deepening its ties with foreign luxury brands
- Premium brands are sparking an increase in consumption
- Digital channels are creating an accessible and convenient shopping experience for Chinese customers
This trend is only likely to increase in the coming years as Chinese consumers become increasingly attracted to European luxury brands. While it is difficult to predict the future of the Chinese e-commerce industry, it is clear that small luxury European brands stand to benefit from the increased demand in the years to come.
