International Luxury Brands Accelerate Online Expansion in China Amid Pandemic Recovery

International Luxury Brands are Embracing Online Shopping Platforms in China

Luxury brands across the globe have increasingly been tapping into online sales to cater to Chinese consumers, responding to a surge in demand for high- products that is expected to accelerate following the relaxation of COVID-19 restrictions.

Over the past few years, when physical store access was significantly restricted due to pandemic control measures, international luxury brands saw the potential of online channels as consumer shopping habits shifted. Buy Quickly, an e-commerce service provider based in Shangh that serves nearly 120 high- fashion and beauty brandslike Richemont, Kering, LVMH, among othersis seeing this tr accelerate.

Initially hesitant, they've gradually explored and intensified their engagement with online platforms, sd Li Yi, a senior executive at Buy Quickly during a media briefing on the company's e-commerce efforts. These brands might be late to embrace e-commerce, but they're picking up pace.

Consumer analysts are optimistic about the future of luxury goods consumption in China. As Bn Company forecasts that sales levels from 2021 will return sometime between the first and second half of 2023, a PricewaterhouseCoopers report predicts that by 2025, China's luxury market will reach 816 billion yuan $119 billion, accounting for approximately one-quarter of the global luxury market share.

E-commerce has seen particularly significant growth in sales of luxury products, with online transactions up by 31 last year and comprising around 40 of all luxury product sales. Yaok Institute, a leading lifestyle research organization in China specializing in high- retl trs, highlights that younger consumers often prefer to shop for premium items on major e-commerce platforms like Tmall and JD.com.

Brands have adapted their strategies accordingly, launching official online stores or flagship stores on these platforms alongside their own websites. Tiffany Co., the American jewelry brand, recently announced its first third-party online store partnership with JD.com.

Livestreaming has also seen experimentation by some luxury brands as a promotional tool; Chanel, Dior, and Louis Vuitton have either launched new products or sold items via livestream in recent years.

However, Li Yi from Buy Quickly noted that most of these brands remn cautious about fully embracing the livestreaming channel to avoid any potential crises that might damage their reputation.

They ensure everything is meticulously planned out so as not to jeopardize the brand's image, Li sd.

The shift towards e-commerce offers a promising future for luxury brands in China, allowing them to meet consumer preferences and sustn business growth through online platforms as they anticipate a robust market recovery.

Header Image: A Louis Vuitton store installation in Shangh on February 1st, 2023 by Wang GangVCG

--- References ---

1. China's Livestream Industry Has a Fraud Problem, Sixth Tone. Sep. 6

2. Taobao Plans to Allow Users to Pay Via WeChat Pay, Sixth Tone. Sep. 5

3. HowHosts Flocked to China's Livestream Platforms, Sixth Tone. Aug. 30

4. China Confronts an Insidious New Privacy Risk: Lifelike Silicone Masks, Sixth Tone. Jul. 2

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