The Chinese ecommerce has become the dominant figure in the consumer spending landscape, on the Chinese market. In 2015 alone, the online sales of goods and services totalled RMB 3.8 trillion, and that is an increase of 37.2 percent YoY.
During last year’s “Singles Day” – an annual event that takes place in China on the 11th of November and in which online stores offer substantial discounts – the e-commerce giant Alibaba registered RMB 91.2 billion in online sales.
It was an increase of almost 60 percent, compared to its sales during “Singles Day” in the precedent year.
The Chinese eCommerce revolution is creating new entrants and industry disruptors that are forcing a complete rethink of the existing business models and practices in every sector. Fashion is no exception to this.
The retailers and the companies in the luxury fashion industry no longer have to depend on investing in bricks-and-mortar stores to expand their reach in the Chinese market.
The Chinese eCommerce revolution is forcing a rethink of the existing business models
At the same time, as the e-commerce has made it cheaper and easier for companies and individuals to market their fashion products on various online platforms, the consequence is an intense market competition and a major decrease in prices.
In fact, iResearch, a consultancy that focuses on China’s internet industry, expects the country’s online sales to double in the next three years, reaching RMB 7.5 trillion in 2018.
This shift in Chinese consumers’ preferences must become the primary focus for the fashion makers, both domestic and foreign.
Fashion companies operating in China have to rethink their strategies based on the following premises: it is no longer about marketing to the Chinese consumer, but about manufacturing for the Chinese consumer. Also, migrate from on-site sales to online sales thanks to the latest technological advances.
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Even the Chinese Government understand the e-commerce revolution and for that has introduced some major policy initiatives aimed to stimulate the upgrading of the country’s manufacturing capabilities and help companies move up the technology value chain.
The “Internet Plus” and the “Made in China 2025” and plans, both announced in 2015, have promoted the development of specific sectors such as the ICT research, the R&D, the smart manufacturing, e-commerce, and “green” technologies.