Consumer Reports Shows that More People are Purchasing Luxury Goods Online
Based on a KPMG report stated that online deals for luxury goods are surging in China. The report came amid concerns that the sales of luxury goods are dwindling. The accounting firm released the report together with mei.com a online retailer of luxury goods, showed that China’’s growing middle class in migrating to online platforms coming from brick and mortar outlets and buy luxury items such as watches, bags and other status symbols.
Based on a survey of 10,000 consumers of luxury goods showed around 45 percent of respondents are choosing e-commerce sites as their top choice for purchasing luxury goods. On an average day a consumer spends 2,300 yuan per deal online up by a third compared a year earlier. Social networking sites and smart phones are attracting more buyers of luxury goods to shopping websites due to its convenience. Paired with secure online payment tools further reassure consumers that paying online is now safe. Survey also showed that respondents are willing to pay up to 4,200 yuan on bills using third party payment platforms.
Report also showed that price sensitivity of consumers is also changing. Although low prices and huge discounts are the main attraction of these e-commerce sites, around one third of the respondents said that they bought at least one luxury brand online at full price once. The shift indicated that more factors are weighing in on consumers decisions on buying and on whether the product is unique and where it was made.
Low prices is still playing an increasingly small role in driving online sales, Chinese consumers are traveling around the world or search through websites in knowing how the product is priced globally. Average consumer spending especially in luxury bags saw the biggest increase year on year of around 109 percent followed by female clothing by 58 percent and cosmetics by 18 percent. Aside from luxury goods more consumers are also purchasing luxury services online such as high end hotel bookings and international trips.