China is currently handling an e-commerce boom where there are a good number of retailers, local or international, that are involved in selling through different online platforms. It is the option that consumers prefer rather than going traditional stores. Online shopping saves time and effort that one experiences let alone having to drive to places only to end up purchasing few items. Through e-commerce, a single consumer has almost unlimited choices to buy and it does not involve retail items only.
Some high end or luxury brands have also been introduced to the e-commerce platforms. This is their way of expanding and reaching the Chinese market. Consumers in China are quite interested in purchasing luxury goods since it symbolizes social status among peers. In addition to the online service is delivery; for normal purchases, different couriers are available to deliver items to one’s doorstep.
However, for luxury items, China has innovated this aspect wherein packages are sent by a man wearing a black suit matched with a tie and white gloves. Instead of a local car, an expensive ride is provided for carrying luxury items. This is an effort to give the best experience for the buyers and to build relations that used to be possible only when transactions are done in a store. As a matter of fact, Chinese luxury purchases have been the highest in the global market.
Consequently, there are some luxury brands in the US who has been working to promote the “Made in America” campaign by President Trump. It calls for an issue against the manufacturing of retail goods that are actually present in China. Additionally, there has been a decrease in luxury sales for the past two years which coincides with the government’s effort in adding security. Other brands have decreased prices led by Chanel.
The industry in the luxury side may have difficulties most especially with complying with the US standards imposed on their products. Participating in the e-commerce platforms is a jump start for the brands to expand and reach the Chinese market. The high scale delivery of luxury brands gives more interest and attention from the Chinese consumers. The people who shop online are actually the majority of China which gives them the right target market for certain brands.
There may have been the previous history with the authenticity of products made from China but when it comes to luxury items, platforms will make an effort to ensure that real branded products are bought. A number of high-end brands that are into e-commerce include Cartier, Burberry, and Bulgari above all. Additionally, Chinese influencers have made it into the luxury campaigns. China can now be considered as the trend and go-to market at the moment.
While China has developed a good market for retail and other industries, it was a long time to build it and gain trust from investors. On the other hand, the US has been present as the most powerful in the world. During the Nanking Massacre in China decades ago, there were Americans who experienced violence in the country. Although no feud has started in that incident, other industries have suffered complications in transacting between the two.
Even brands may go through decisions that consider factors for the different nations as well as processes. For the retail industry, however, China is ahead because people are more into the technology combined with the availability of luxury products. China is generally able to attract more investment and these accounts for an increase in revenue and it could possibly reflect good numbers in their economy. The US must learn not to drive away retail opportunities as what China has established most recently.