China’s Online Shopping Frenzy for Luxury Brands Goes Up
Global top-class brands such as Hermes, Gucci and Louis Vuitton may well heave a sigh of relief because China's appetite for luxury brand items will linger on a little longer despite a projected massive economic slowdown.
China's turnover of high-end luxury brands over the online shopping market had registered a record high 10.73 billion yuan or $1.59 billion last year, China's state-news agency Xinhua reported, citing data from a report released by the Internet analysis company iResearch Inc.
The latest figures connoted a huge 68.8 per cent jump compared with 6.36 billion yuan in 2010. The good news, moreover, the market is seen to continue growing and registering year-on-year increases of at least 30 per cent over the next several years, the report said.
By 2015, the turnover could likely reach 37.24 billion yuan, the report added. The revenue of luxury goods contributed only 1.41 per cent of China's total online shopping industry last year, but this could exceed 8 per cent by 2015.
"Current online luxury purchasing was confined to top-class brands such as Hermes, Gucci and Louis Vuitton. Many second- and third-tier brands are not yet being sold in China. When they enter the market, online selling would be the best channel for them," Xinhua quoted Ding Jiaqi, an analyst at iResearch.
Ding said limited choices in items hamper the growth of the online luxury shopping market in the country. Greater and more selections would definitely boost demand and income. By far, luxury brandedbags, jewelry and watches were the most-sought and bought items, he said.
In a separate iResearch report, it was found 65.5 per cent of China's online sellers peddling high-end goods were male.
The report also noted 80 percent of luxury branded buyers were younger than 35, an indication of China's well-off younger populace. About 40 per cent of China's online customers were under 24 years old in 2011, while about 20 per cent of all Chinese shoppers were under that age, the report further pointed.