Online Buying Boom: China's E-Luxury Marketplace
In a country hailed as the saviour of luxury goods, where e-commerce giants such as TaoBao are as much a part of people's shopping experience as any brick and mortar operation, it was only a matter of time before luxury malls exploded online.
It is an oft-quoted fact that China is the fastest growing luxury market in the world. A recent report from international management consulting firm McKinsey & Company predicts this segment of the country's retail market will be worth a staggering USD 27 billion by 2015.
Almost every week, high-profile flagship openings from international brands dominate Shanghai's fashion news, but less widely reported are the increasing number of online stores. These Internet domains not only stock a number of the world's most prestigious brands, they also deliver them to your door.
This plethora of online options wasn't around in 2007 when Aline Conus took her background in luxury goods, fashion and e-commerce and combined these expertise to launch My Mingpai, a site she describes as “the Net-A-Porter of China”.
“It was a no brainer for me that it would be successful and people would buy luxury online because of the same reasons people buy online all over the world – time and geography,” Conus says.
Before too long, she was proven right, China's 384 million Internet users (a number that is expected to jump to 840 million within three years) embraced e-commerce, quadrupling the market between 2006 and 2009. My Mingpai saw their own growth soar 600 per cent from 2009 to 2010 and are expecting another 200 to 300 per cent bump this year.
“The market is maturing very fast and there are new players literally by the day at the moment,” Conus says. She is quick to emphasize that she is happy with the increased competition, because it means China is becoming accustomed to online shopping.
Rather than questions about payment, delivery and authenticity, “now we get very detailed questions about the quality of products, the origin of products and how products are made,” she says.
People buy with such confidence in China because many of these online malls include peer reviews and discussion forums. According to Conus, prospective customers are also comforted by the company's seven day return policy and the focus on customer service.
“All of our clients come back, all of them,” Conus says with more than a hint of pride. “This is rare in e-commerce today because there are so many players and people jump from one merchant to another. Our customers are very loyal and they keep coming back to us.”
China's E-Luxury Malls
My Mingpai
Brands include: Burberry, Mulberry, Christian Louboutin, Jimmy Choo, Bottega Veneta, Chloe, Ettinger, Farhi by Nicole Farhi, Gucci, Marc Jacobs, Miu Miu, Body Shop, La Mer, Clinique
Web: http://mall.mymingpai.com
5 Lux
Brands include: Versace, YSL, J. Crew, Alexander McQueen, Prada, Valentino, Victoria's Secret, La Perla, Havaianas, Emilio Pucci, SK-11, Christian Lacroix, Rolex, Tiffany & Co.
Web: www.5lux.com
CC Luxy
Brands include: Hermes, Chanel, Cartier, Balenciaga, Dunhill, D&G, Mont Blanc, Dior, Ferragamo, Loewe, Celine
Web: www.ccluxy.com
VIP Store
Brands include: BCBGeneration, Fred Perry, Juicy Couture, Abercrombie & Fitch, Harajuku Lovers, The Flexx, Dior, Aesop, Guerlain, Dr. Bradt, Coach
Web: www.vipstore.com
Xiu
Brands include: La Prairie, Tom Ford, Estee Lauder, Converse, Biotherm, Calvin Klein, mimi&roger, Nine West, Stella Luna, Kate Spade
Web: http://xiu.com
Shopaholics Anonymous
Dear Suzy,
We’re in need of some strong luggage to carry back all the keepsakes and souvenirs we’ve bought friends and family over the past year. Any advice on where we can pick up some sturdy suitcases to haul our goodies halfway across the world?
Thanks,
Extra Baggage
Dear EB,
When buying luggage in Shanghai it pays to weigh up how long you want it to last, what the purpose is and how much weight it REALLY needs to carry. There are many options from dirt cheap to very expensive.
If you are only planning for a one way trip with the luggage, you may as well get some cheap luggage that will last at least for that trip. Check out the basement at Qipu Lu which has both expensive and cheap luggage in a range of qualities and prices. The other option is one of the copy markets where you can also pick up a case of questionable quality for a very reasonable price.
For those who are looking for the real deal, the Samsonite stores are located at 221 Changshu Lu, 1145 Nanjing Xi Lu, or Shuicheng Lu, and Delsey is located at 932 Hengshan Lu. The “in” brand of luggage at the First and Business class check-in counters at the moment is the German brand Rimowa. There are two shops in Shanghai (5F, 1038 Nanjing Xi Lu and their flagship store on Huaihai Zhong Lu).
For discounted Samsonite and American Tourister, check out the shop selling only these two brands in the Carrefour complex at 1995 Xietu Lu, near Dong’an Lu. Small shops in the French Concession have last seasons’ luggage at significantly cheaper prices than the big shopping centres. Check out Hot Point at 241 Changle Lu, near Shanxi Road, a medium-size Delsey, Hideo Design, Travelon, or Eminent will set you back about RMB 1,100. They stock bright colours and patterns - think lime green or pink with white polka dots so your bag will be easy to recognise at the luggage carousel!
Shopping Tours Shanghai offers set tour options or custom designed tours to cater to your needs (or the needs of your visitors). For more information, visit the website, www.shoppingtoursshanghai.com, or email Suzy on [email protected]