Chinese marketplace still the place for Western retailers to be, despite economic slowdown…
February, London – Jimmy Choo increased their annual global revenue in 2015 by 7 per cent to £318m thanks in part to its eight new stores in China. This demonstrates the continuing popularity with western brands in the country. Retail sales in China for December 2015 were up 10.1 per cent year on year despite the worries about the overall economy as the nation continues to be a hotbed for retailers.
To sell successfully online it is critical that retailers offer a localised online service for the country, as 32 per cent of Chinese consumers’ state they shop online to access a wider range of brands, highlighted particularly amongst those who live away from the major cities. This is key given the vast size of China.
And we know they love to buy from abroad. A recent payments report stated that thirty-five per cent of online shoppers in China are now buying cross-border. This is driven by consumers wanting the guarantee of high quality goods that is ensured from buying direct from foreign brands. This quality assurance is the reason that 51 per cent of consumers in China use eCommerce. For businesses, developing a direct eCommerce strategy reinforces this brand integrity, while offering a localised website for the Chinese economy allows for convenience, easy access and simple payment acceptance.
Andy Muldoon CEO of PowaWeb, a leading eCommerce provider to global retailers’ comments: “It’s great to see how resilient the Jimmy Choo brand has been in the Chinese market, yet by adopting a direct online retail approach, they can also significantly increase their potential consumer-base. With the high-street store having a relatively limited reach due to the size of the country, retailers must take full advantage of the penetration rate of online shopping which stands at roughly 55.7 per cent.”
Online purchasing in China is not limited to low-cost goods, on average 17 per cent of consumers spent RMB1515 on their most recent purchase, with another 17 per cent having spent at least RMB2000 on a single product. With total eCommerce sales about to reach $1 trillion in China by 2019, it is of vital importance that retailers establish their strategy and avoid falling behind competitors in this fast growing market.
Andy Muldoon continues: “With such large amounts being spent online in China, retailers need to offer a direct to consumer eCommerce solution that compliments the brick-and-mortar stores to create a dedicated omni-channel environment for their consumers. To not offer this is damaging to retailers particular as the rising middle-class are often the biggest spenders on high-quality products, are located away from the major cities.”
PowaWeb has empowered leading brands around the world with a suite of cloud-based SaaS (software as a service) solutions. This service enables brands to quickly and easily create a powerful online retail presence that can be scaled to accommodate rapid international expansion, particularly in fast-growing economies, such as China. The pioneering platform was one of the first to achieve PCI compliance in 2008.
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