Report: Why Luxury Websites Are Disappointing Chinese Consumers (And Why This Matters to You)
While many global markets today are flat or shrinking, China is booming. This success extends to luxury brands, which are struggling to stay afloat elsewhere in today’s tenuous economic climate.
In 2009 – during the low point of the global recession – the sale of luxury goods in China grew by 16%. Analysts have forecast that China will comprise 20 percent of global luxury sales by 2015, surpassing Japan as the world’s single largest luxury market.
To leverage the popularity of European luxury brands, labels like Louis Vuitton, Gucci, and Hermes have more than tripled their bricks-and-mortar presence in mainland China. At the same time, however, many of these same luxury brands are failing to deliver an optimal online experience to their growing Chinese market.
Brand owners ignore this disconnect at their own peril
According to a recent McKinsey report, “The internet has rapidly become the second most important consumer touch point for luxury categories such as fashion.”
And Chinese shoppers have not yet reached their peak of projected spending. Recent studies show that these shoppers are moving online in unprecedented numbers. Mainstream consumers of luxury goods are getting younger. Three-quarters are under 43 years old, with more than half between the ages of 25-28. These shoppers are as tech-savvy and demanding as young people anywhere else in the world