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Credibility needed for online luxury sales to thrive

By Zhang Chen (China Economic Net)

13:34, November 03, 2011

Edited and translated by People's Daily Online

Beijing, Nov.3 (People's Daily Online) --As reported, most domestic luxury e-commerce businessmen are taking advantage of a flourishing online market for luxuries and running their business without authorization from international luxury brands.

Some insiders said that there are quite few websites with stable purchasing channels for luxuries, and most of the so-called cheap genuine articles are inventory and leftover stock purchased from other channels. As there is no authorization, no one can completely account for whether the so-called genuine articles are real ones.

In fact, luxury brands commonly attach great importance to their sales channels for purpose of brand interests. This is why they have been so cautious on authorizing sales online. Lower price is the main advantage of shopping online, however, because of the lack of a stable supply of goods, some websites tend to purchase the luxury upon getting an order. Thus, consumers have to wait for a long time to receive the articles they ordered.

In this case, it may be very hard for luxury shopping o-line to attract traditional luxury consumer groups. Then, why are so many e-commerce businessmen still selling luxuries online? This can be mostly ascribed to demand among China's white-collar workers.

Unlike traditional consumers of luxury goods, white-collar workers see luxury goods as spiritual rewards for themselves or as symbols of high quality of life and exquisite taste. Although they may have to use their long-term savings to buy luxury products, their combined purchasing power is amazing, given the large number of white-collar workers.

Due to limited income, the price-sensitive white-collar workers are often "driven away" by the high prices of luxury goods in real stores, while luxury goods in online stores tend be less expensive and more cost-effective. Therefore, despite knowing that the luxury goods in online stores may be counterfeit or out of season and are not entitled to after-sale services, they cannot resist the great temptation of buying luxury goods at discounted prices.

After fulfilling ordinary people's needs to own luxury goods, online sellers of luxury goods should solve two urgent issues: How to increase the people's trust in their products? How to provide better shopping experiences?

 
 
     
 
 
 
     
 
 
 
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