2011 Bain China Luxury Market Study slide image

2011 Bain China Luxury Market Study

3 Luxury ecommerce in China is emerging but still nascent; various operating models exist High Level of brand control Low Operating model Provider example Descriptions Mono brand Self-operated Luxury brands operate and maintain own e- commerce sites directly - Possibly with some external assistance on major site renovations, logistics, etc. Usually as add-ons to corporate websites • Mostly for marketing and consumer education purpose in China Burberry Partnership YOOX.COM • Brand official site with brand's own domain name + "Powered by Yoox" • Yoox offers complete e- commerce solution -Site maintenance, interface design, logistics, customer relationship management service Same price, products as retail stores Armani Bally EMPULAN BALLY Multi brand Online outlets GLAMOUR-SALES 惠奢华享生活 • Promotions targeting price- conscious consumers • Sell end of season products and discounted at 30 ~70%, avg. 45% • Event-driven promotion and exclusive to members (+500k in China) ⚫ Limited inventory and consignment model with brands Hugo Boss, Bulgari, D&G, etc Brand example Source: Literature search This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent SHA 2011 Bain China Luxury Market Study_Media release_vf 18
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