More Online Shoppers Choose to Buy Luxury Items Online
Online shops are evolving from simply a means to look for bargains to those can splash out for pricey items, clothes and accessories. Based on the study published, Chinese buyers of luxury items are increasingly favoring online retailers over brick and mortar stores that account for half of Chinese luxury spending by 2020. The survey asked more than 10,000 respondents and around one third of them said that their luxury spending was done online. Average amount spent per luxury item was 2,300 yuan and the highest amount they willing to spend was 4,200 yuan.
Best selling luxury items that were sold online are cosmetics followed by women’s shoes, bags, leather products, clothing and accessories. This is consistent with the overall development in the e-commerce industry were luxury shoppers are increasingly turning away from mobile gadgets to laptops. Even with buying online, luxury shoppers still prefer overseas retailers to domestic ones as two thirds of the survey respondents say the shop more from overseas online retailers.
In a bid to bring in outbound consumption back home, authorities reduced tariffs on a number of imported products and are encouraging cross border e-commerce. There is a growing number of domestic online retailers that are working with overseas retailers and brands into selling imported products from local to luxury items. One factor that influence consumer decisions on where to purchase luxury good changes in foreign exchange as Chinese consumers move fast to take opportunities that is presented by changes in foreign exchanges.