Luxury Firms Have Pitiful Digital Strategies In Mobile China Market

Bain & Co on China LuxuryBeijing, China — “So what is really going on?” quips an article in the Economist this week. ” It seems that China remains the biggest prize in the luxury industry, but the low-hanging fruit is gone. Luxury firms must now venture beyond the coastal cities where they have made easy fortunes, cultivate new types of customers and market niches, and experiment with new business models. It will be worth the effort. Despite the recent troubles, Bruno Lannes of Bain & Company, a consultancy, insists that “Chinese have become, and will remain for a long time, the most important luxury consumers.” His firm estimates that luxury sales in greater China (which includes Taiwan, Hong Kong and Macau) will grow by 6-8% this year, to exceed $35 billion, making it a luxury market second only to America.”

The article goes on to quote that, “Over two-thirds of Chinese use the internet to research brands, but most luxury firms have pitiful digital strategies. One study found that luxury websites take four times as long to load in China as elsewhere (because most firms do not put servers inside China’s Great Firewall, which slows access to foreign sites) and rarely offer yuan prices or purchasing options. Mobile commerce is growing in China, but few luxury firms’ websites are optimised for mobile devices.” Luxury brands had better think mobile when it comes to Asian market! [Read More]