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.
In honor the @CFDA’s announcement of @iamnaomicampbell receiving the Fashion Icon Award at the 2018 #CFDAAwards, which will take place on June 4, here’s a #tbt of the supermodel on @michaelkors’ runway in 1991. #wwdfashion #wwdarchive (📷: George Chinsee)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech during @sxsw for @createcultivate in partnership with @fossil. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.