A screenshot from the homepage of luxury e-commerce platform Secoo.com
SHANGHAI — Factors including younger luxury consumers, wider adoption of digital sales and marketing channels among brands as well as consumers in China's lower-tier cities are driving luxury e-commerce in the country, a new report reveals.The "China Luxury E-commerce White Paper" — the result of research jointly undertaken by Secoo, China's largest luxury goods e-commerce platform, data partner Tencent and analysis partner Deloitte — details China's emergence as the second-largest online consumers of luxury (behind the United States).According to the report, China's luxury consumers have an average age of 25, making them digital natives, 75.6 percent of whom look to digital media (including brands' own web sites, fashion verticals and social media) for fashion information.Accordingly, the number of luxury brands running direct sales e-commerce and WeChat e-commerce in China has significantly increased. As of May, 40 percent of fashion brands and 38 percent of luxury watch and jewelry brands have developed direct sale e-commerce here, up 20 percent and 24 percent respectively since 2014. At the same time, some luxury brands are also experimenting with WeChat, with 6 percent of fashion brands and 14 percent of watch and jewelry brands now operating WeChat shops.A big winner as a result of increasing luxury e-commerce in China are niche brands, who are able to reach deeper into China's lower-tier cities without the heavy investment required by a large-scale bricks-and-mortar rollout.
According to Secoo’s business data, in fiscal year 2016, their platform provided products and services to consumers from 379 cities around China. Though the top 30 cities for sales were all first-tier and major second-tier cities, sales from the other 349 cities around China combined accounted for 62 percent of total sales on the platform.MORE: China's Largest Luxury Platform Secoo Lists on NasdaqCurrently, only 9 percent of luxury goods worldwide are purchased online, but of the Millennial consumers from China surveyed for the white paper, 35 percent reported a willingness to buy luxury online, with almost all respondents (97 percent) expecting that they will become more willing to buy online in the future.
As China's luxury market matures and more brands become available to young consumers, it comes as something of a surprise that 60 percent of Millennial respondents reported consistently purchasing a few favorite brands they feel loyalty to.Besides quality, the biggest reason cited by these Millennial consumers for purchasing luxury good was to “be nice to themselves.” But being nice to others, as well as the environment, also stands out as key to attracting this segment of consumers, with more than 90 percent of young luxury consumers saying they "sometimes" or "always" paid attention to a brand's sustainability credentials — a statistic consistent with China's broader trend of environmental awakening seen in recent years.Looking forward, the report identifies key challenges for luxury brands to overcome en route to e-commerce success, including suitable platform selection, crafting distinctive online experiences and designing end-to-end omnichannel solutions.
"In order to win young network consumers, cover more cities and realize an omnichannel win-win, luxury enterprises cannot merely add an e-commerce department, but should acquire new vision, schemes and talents based on traditional competitiveness, and re-plan omnichannel mode in a reforming way," the report said in part.
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)
@Pharrell and his wife Helen Lasichanh were among the stars that came out to celebrate @rimowa’s first pop-up concept shop. The space, which is located on Rodeo Drive in Beverly Hills, draws inspiration from airport luggage carousels and lounge areas – and features the company’s luggage and accessories. If the pop-up is successful it could pave the way for addition temporary shops throughout the world. #wwdfashion (📷: Owen Kolasinski/BFA)
@carineroitfeld celebrated @crfashionbook’s first calendar last night with a dinner party at Spring Place in Manhattan. Photographed by @stevenkleinstudio, the calendar takes on a fitness theme and features @joansmalls, @gigihadid, @danielle_herrington_ – pictured here – and more. “[Carine Roitfeld] wanted me to feel sexy and she wanted me to be myself and feel it out on my own and do what I felt was right,” said Herrington, aka Miss October. #wwdeye
@saintrecords and @virgilabloh last night at @americanexpress’ “A Night With Success Makers” event. “I always bring it back to community because without that I wouldn’t have the courage,” said Knowles when asked how she has gotten where she is now. Read more highlights from their conversation on WWD.com. #wwdeye (📷: @lizdoupnik)
This Just In: Industry sources have told WWD that Anastasia Soare is rumored to be considering selling her beauty business, @anastasiabeverlyhills. According to those sources, Soare has tapped investment bank Imperial Capital to explore sale options for her eponymous beauty brand –– and with at least $340 million in net sales, this would be a big deal. Put in context of other recent transactions for makeup companies, Soare’s price tag could be in the billions if she were to sell the whole thing. #wwdnews #wwdbeauty (📷: @clint_spaulding)
@assouline’s latest book, “The Spirit of Bentley: Be Extraordinary” captures the adventurous attitudes and opulent lifestyles of @bentleymotors’ most creative owners and enthusiasts throughout the U.K. The 292-page hardcover has a section dedicated to showing its team of skilled artisans and photos of its most colorful owners, from George Bamford to designer @alicetemperley, pictured here by Aline Coquelle. #wwdeye
@google released its report on the most popular search terms this year. For fashion brands, the list was led by @gucci, the luxury brand that stunned the market last October when it pledged to stop using fur. Runner ups were @supremenewyork and @fashionnova, along with more established brands like @louisvuitton, @chanelofficial and @ysl. #wwdfashion (📷: @aitorrosasphoto)
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)