Posted On 2014/08/20 By In Behavior, Business, Chinese Perspective, Consumer, Internet, Social Media, Luxury, Shopping With 625 Views

Five Tips to drive eCommerce in China

Chinese shoppers love luxury brands, but until now their e-commerce experience has not always measured up.

“The market is changing fast and you don’t necessarily know what is brewing for the next stage,” said Angie Au-Yeung, Richemont senior e-commerce manager, China.

Ms. Au-Yeung is responsible for growing online sales for Swiss-based Richemont’s luxury brands including Cartier, Van Cleef & Arpels, Piaget, Jaeger-LeCoultre and Montblanc. Richemont also owns luxury fashion site Net-A-Porter.

Today, she’s addressing the e-commerce challenges luxury brands face in China, like the pervasive fear of buying fakes. That’s a problem even for basics like shampoo, and becomes a major issue for shoppers spending thousands on a watch or pen from a prestigious brand. Here are Ms. Au-Yeung’s tips for driving luxury e-commerce:

Fight fakes with information

Brands without a good direct-to-consumer site push consumers to look for information and products on third-party channels that are mostly unauthorized and often sell counterfeit products.

“The first and most important step is always to have the official presence, a clear anchorage for brands to differentiate and further educate consumers against fakes,” Ms. Au-Yeung said.

Create a brand experience that matches the store

Brand owners have struggled to develop digital platforms offering luxury customers an experience on par with retail channels. Technology advances like html5 help brands create user-friendly sites that offer a visually and “sensorially-rich experience” relevant to the brand DNA that works online and on mobile devices, she said.

Your strategy is digital

“Many [brands] still think e-commerce equates opening a Tmall store on Alibaba, while social media equates hiring a digital person to tweet a few times a day on Sina weibo and now on WeChat,” she said.

Think at least mid-term, she advised. “Where do you see this going in three to five years? [Don’t] just work out a three-year P&L projecting x% of growth each year. How about your plan for people and training, organizational structure and operations readiness to really cope with this growth?”

China is different; deal with it

Take payment and delivery. Many Chinese still pay cash on delivery–easy for groceries, but a security risk for both buyer and seller for ultra-expensive products.

That’s why in China “brands need to have a real open mind,” she said. “Global best practices do not always apply in this market.”

But don’t panic

Learn to operate under pressure.

“Many brands offer deep discounts when they really shouldn’t, or they strategized online sales as a dumpster for overflowing inventory. Then how much marketing effort is needed to remedy the harm done to the brand?”

Her final tip for luxury e-commerce brands in China?

“China is a picture yet to be painted. Be a little patient for your customers to mature, which will not take long.”


Learn more in our Global Ready China Seminars


Sources:

Article: Ad Age / Image: Irakli

Chinese shoppers love luxury brands, but until now their e-commerce experience has not always measured up. "The market is changing fast and you don't necessarily know what is brewing for the next stage," said Angie Au-Yeung, Richemont senior e-commerce manager, China. Ms. Au-Yeung is responsible for growing online sales for Swiss-based Richemont's luxury brands including Cartier, Van Cleef & Arpels, Piaget, Jaeger-LeCoultre and Montblanc. Richemont also owns luxury fashion site Net-A-Porter. Today, she's addressing the e-commerce challenges luxury brands face in China, like the pervasive fear of buying fakes. That's a problem even for basics like shampoo, and becomes a major issue for shoppers spending thousands on a watch or pen from a prestigious brand. Here are Ms. Au-Yeung's tips for driving luxury e-commerce: Fight fakes with information Brands without a good direct-to-consumer site push consumers to look for information and products on third-party channels that are mostly unauthorized and often sell counterfeit products. "The first and most important step is always to have the official presence, a clear anchorage for brands to differentiate and further educate consumers against fakes," Ms. Au-Yeung said. Create a brand experience that matches the store Brand owners have struggled to develop digital platforms offering luxury customers an experience on par with retail channels. Technology advances like html5 help brands create user-friendly sites that offer a visually and "sensorially-rich experience" relevant to the brand DNA that works online and on mobile devices, she said. Your strategy is digital "Many [brands] still think e-commerce equates opening a Tmall store on Alibaba, while social media equates hiring a digital person to tweet a few times a day on Sina weibo and now on WeChat," she said. Think at least mid-term, she advised. "Where do you see this going in three to five years? [Don't] just work out a three-year P&L projecting x% of growth each year. How about your plan for people and training, organizational structure and operations readiness to really cope with this growth?" China is different; deal with it Take payment and delivery. Many Chinese still pay cash on delivery--easy for groceries, but a security risk for both buyer and seller for ultra-expensive products. That's why in China "brands need to have a real open mind," she said. "Global best practices do not always apply in this market." But don't panic Learn to operate under pressure. "Many brands offer deep discounts when they really shouldn't, or they strategized online sales as a dumpster for overflowing inventory. Then how much marketing effort is needed to remedy the harm done to the brand?" Her final tip for luxury e-commerce brands in China? "China is a picture yet to be painted. Be a little patient for your customers to mature, which will not take long." Learn more in our Global Ready China Seminars Sources: Article: Ad Age / Image: Irakli

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About

Stefan

Stefan (from Austria, Europe) has been living, studying and working in China since 2010. Stefan has worked on several research, publication and consulting projects focusing on the China Travel Market. He holds three Masters degrees and is an expert on China Outbound Tourism, Marketing and Social Media in China. Stefan works with BMG on the Global Ready China Seminars as well as the Global Ready China News and related projects. He also has teaching engagements in the areas of eMarketing and Tourism Strategy.

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