This is an excerpt from “Fashion & Luxury E-commerce in China: Key Insights on the world’s largest online market” The full Marketing Research contains in-depth analysis on the present day e- and m-commerce scenario in China and the changing consumer behavior shying away from the old luxury classics! Answers to - what Western brands need to learn about the current target, their fears and expectations, the payment methodologies, the trusted e-commerce websites, the communications etc. - can all be found in this research. > The Booming E and M-Commerce in China > The changing consumer demands & needs > The local owned payment methods online > The most popular third party Chinese E-stores > Fashion Brands E-commerce entrance strategies > Results monitoring and optimization with e-tools > Current and future e-commerce market trends > The DOs and DONTs to succeed To access the full marketing research and more, become a member today: http://fashionbi.com/signup/member or learn more from our website (http://fashionbi.com/omni-search/publication) 

1. Fashion & Luxury E-Commerce in China
JANUARY 2015
Key insights on the world’s largest online market

2. China E-commerce 2/11
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What do you get from this marketing research?
Luxury brands can’t benefit anymore with just emotional story-telling. They
need to integrate local culture in their communication and sales methods too!
Omnichannel is the way to be connected 24/7 with the country’s netizens.
Offer a free gift via mobile notification, the moment they pass your retail store!
Discounts & Social Media are not the only answers. The consumers need
to be more assured of the authenticity and quality and of the worth on their
investments
Why Burberry and Forever 21 went the independent+TMall way, Hugo
Boss and Zara opted for a standalone flagship and Clarks and Geox are
establishing their e-foot via just TMall first?

3. China E-commerce 3/11
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Some brands from our case-studies include:

4. China E-commerce 4/11
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Back in 2012, China became the world’s second-largest
e-tail market right after the US. Last year, it overthrew the
US as the e-commerce leader, thanks to its blazing-fast
39.4% growth on the previous year.
The country’s switch from an investment-heavy to a
consumption-driven economic model proved fruitful.
600
500
400
300
200
0
2009 2010 2011 2012 2013 2014
100
2015
Value of e-commerce transactions in US and China, 2009-2015
Forecast

5. China E-commerce 5/11
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The m-commerce transaction size reached CNY 169.6
billion in 2014, 168.6% up on the previous year. Thanks to
such an outstanding performance, m-commerce achieved
9.2% of the whole e-commerce market, proving its worth.
PC and Mobile market size in the China’s e-commerce from 2010 to 2017
40%
0%
20%
60%
100%
2010 2011 2012 2013 2014 2015 2016 2017
99.5%
98.5%
95.2%
90.8%
86.6%
83.2%
79.5%
75.8%
0.5% 1.5% 4.8%
9.2%
13.4%
16.8%
20.5%
24.2%
Proportion of transaction on pc terminal Proportion of transaction on mobile terminal
Note: The total transaction size of online shopping market in 2013 was 18 409 500 million,
transaction on mobile terminal was 1 696 300 million
Source www.iresearch.com.cn

6. China E-commerce 6/11
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Online Payment Methodologies: East versus West - and
their relevance
Penetration rate of major payment methods
for online purchases among Chinese consumers
63.1%
32.4%
4.8%
61.6%
% of Chinese online shoppers who use the
payment method for online purchases
Online Banking Payment
(including credit cards and debit cards)
Third Party Online Payment
Cash On Delivery
Transfer Money form Bank counters or
Post Offices
WeChat (Weixin) Payments’ confirmation page

7. China E-commerce 7/11
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The most popular Fashion Online stores to get into and
how the brands are embracing it so far?

8. China E-commerce 8/11
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Go standalone or go TMall flagship - which brands have
been playing it safe and which ones have been making a
bold move to go independent and why?
> Burberry: standalone online store + Tmall flagship store
> Forever21: standalone online store + Tmall flagship store
> Hugo Boss: standalone online store
> Bally: standalone online store
> Zara: standalone online store
> Clarks: Tmall flagship store
> Geox: Tmall flagship store
> Timberland: Tmall flagship store

9. China E-commerce 9/11
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Learn the Dos & Donts of the industry in the Chinese
marketplace - what to not take for granted, which steps and
rules to follow and how to integrate them in your image?
> Do: launch exclusive products just for this market; make the
consumers feel special!
and much more...
> Do: collaborate with local e-comm platforms to decrease the
counterfeits’ presence online; increase your credibility
> Dont: use traditional marketing left-overs to invest in internet
and mobile; give smooth UX to the customers
> Dont: enter the market without a pre intensive study;
sometimes your popularity in the West can be your bland point
for the East

10. China E-commerce 10/11
© Fashionbi - All rights Reserved
This is an excerpt from
“Fashion & Luxury E-commerce in China
Key Insights on the world’s largest online market”
(http://fashionbi.com/omni-search/publication)
The full Marketing Research contains in-depth analysis on the present day e- and m-commerce scenario
in China and the changing consumer behavior shying away from the old luxury classics! Answers to -
what Western brands need to learn about the current target, their fears and expectations, the payment
methodologies, the trusted e-commerce websites, the communications etc. - can all be found in this
research.
To access the full marketing research and more, become a member today: http://fashionbi.com/signup/member
DOWNLOAD PDF
or learn more from our website
> The Booming E and M-Commerce in China
> The changing consumer demands & needs
> The local owned payment methods online
> The most popular third party Chinese E-stores
> Fashion Brands E-commerce entrance strategies
> Results monitoring and optimization with e-tools
> Current and future e-commerce market trends
> The DOs and DONTs to succeed

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