Today, consumers under 30 account almost 50% of luxury purchases in China.
This young generation takes time to analyze the brands and products through social media platforms every day. In fact, Chinese luxury consumers expect to get access to information and high-quality content shared on different platforms, as well as finalize the purchase online. Therefore nowadays, having an e-commerce channel is no longer simply a competitive advantage for luxury brands but a must-have to be in the business, also considering that e-commerce penetration of the luxury goods market is expected to account for up to 30% by 2025.
Is selling products online enough to drive sales in China? Well, the answer is no. Chinese consumers are looking for much more in deciding when and where to make their purchases. So, the challenge for luxury brands is to make their products available on both e-commerce and social platforms in China. Let’s have a closer look at what Chinese consumers expect from luxury brands.
- Mobile and social shopping experience
When it comes to browse or buy luxury goods online, Chinese spenders are not tied to a single platform. The decision-making process is usually conducted through a great deal of research and exposure across different platforms: users can turn to Xiaohongshu (aka Little Red Book or RED) for researching every aspect of a product and then completing the purchase while watching a livestreaming sale session on Taobao Live. Every step of the process is done solely via a mobile device, which is also used for sharing of product posts on social media among friends or communities. Suffice to say that 55% of the Chinese online shoppers use mobiles as a medium. Therefore, it is crucial for brands to make products easily available on e-commerce and social platforms.
- Plenty of information, visuals, and video
Another important element of a successful luxury e-commerce strategy in China is the ability to provide consumers with a wide array of product information and imagery. Operating on Chinese social media platforms means producing a multimedia contents all the time. As a result, brands active in China more often rely on Key Opinion Leaders to run livestreaming sessions to show products up close from multiple angles or to create new contents about a specific product or a collection.
- Online and offline perks
When Chinese consumers purchase products of their favorite brands from e-commerce platforms have come to expect a suite of perks, both online and offline. When it comes to targeting Chinese luxury consumers, both a tailor-made digital marketing strategy and offline activations at brick-and-mortar stores are essential.
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