A roundup on how digital is transforming our life and business – both in China and the rest of the world through November 29th.
On China’s Roads, Where Luxury Risks Becoming Ordinary, by Reuters
Luxury car dealers are resorting to offering customers massages, mini-golf and other gimmicks, hoping this will give them an edge in a ferociously competitive Chinese market where brand loyalty is less common than in the West.
Premium car sales slowed in China last year as the economy eased off the throttle and new Communist Party leadership was installed, but momentum is returning, and China is set to overtake the United States as the world’s top luxury car market by 2020 with annual sales of close to 3 million cars.
A victim of its own recent success, the Chinese market has become a hyper-competitive battleground. Five years ago, there were fewer than a dozen luxury car models sold under five premium brands. Today, that has exploded to more than 90 models offered by 25 brands, says market research firm TNS.
How Shanpin Plans to Win Big in China’s Luxury E-Commerce Market, by JingDaily
Alibaba may be China’s clear market leader when it comes to mass consumer goods, but in China’s online luxury sphere, the market still remains fiercely competitive. With the launch of a new e-flagship platform and several other key marketing strategies, luxury e-tailer ShangPin aims to gain an edge in attracting and retaining savvy Chinese shoppers.
The three-year-old site just announced the rollout of its new online “shopping mall” business platform with the launch of an e-flagship store with partner Lanvin, which was revealed on November 18. The independent store hosted on ShangPin will feature men’s and women’s clothing, bags, accessories, and shoes. In addition to Lanvin, ShangPin is in talks with several other luxury brands to join the service, which marks a major development for the company.
China Tops E-commerce Opportunity Study, by WWD
When it comes to market opportunity for e-commerce, China occupies the number-one position, followed by Japan, the U.S., the U.K. and South Korea, according to a new global e-commerce study by A.T. Kearney, a global management consulting firm. They looked at 186 countries to determine the ranking of the top 30 countries. The index evaluates countries according to online market size, technology adoption and consumer behavior, infrastructure and growth potential.
In areas where there are obvious differences between developing and developed markets, the study illustrates key similarities such as consumer sophistication, the creativity and ingenuity of online sellers, intense competition and the kinds of products consumers will buy online.
Bits & Bytes | Iras, Chirpify, iZettle, by Business of Fashion
Helping luxury brands communicate this sentiment to their customers is Iras, a new app that provides shoppers with a feed of clothes that have been hand-picked for them by the stylists and sales associates at their favourite stores.
According to Chris Teso, founder of Chirpify, “hashtags are the new URL.” The Portland, Oregon-based company is turning social networks into sales channels with “actiontags” — a play on hashtags — which makes it possible for users to link their payment details to their Twitter accounts and make purchases directly on the platform.
Elsewhere in the world of payments, iZettle (a company named after the concept of “settling a debt”) is allowing merchants to accept credit card payments via smartphone and tablet.
Burberry Reinvigorates Microsite for the Holidays to Expand Reach, by Luxury Daily
British fashion brand Burberry is reigniting consumer interest in its Burberry Kisses microsite by injecting holiday themes into the marketing efforts, rebranding the campaign for a new season.
Through the interactive microsite, visitors can not only send a photo of their own kiss, but also see where other people are sending kisses around the world in real time. By adding seasonal elements into a campaign, marketers can renew attention and gain fresh impressions.