Macy’s And Costco Come To China
With China the world’s second-largest e-tail market, American department store Macy’s and the largest chain warehouse store Costco, plan to enter the asian market this year by opening online storefronts. According to a report by McKinsey Global Institute China’s e-tailing could generate anywhere from $420 billion to $650 billion in sales by 2020, and the market may equal that of the United States, Japan, the United Kingdom, Germany, and France combined today. Unlike the other countries where online shopping is largely led by few mega size B2C (business to consumer) websites, nearly 70% of China’s e-tailings are C2C (consumer to consumer).
Fast-Growing China Market ‘Heart’ Of L’Oréal’s Focus
The future looks bright for the parisian beauty giant according to Chairman&CEO Jean-Paul Agon who predicts that a potential 250 million new Chinese consumers will be using L’Oreal’s products within the next 10 to 15 years. The company believes that China will make up the largest market for the brand no later than 2015, but probably as early as 2014. Long-term visions for its China market have been part of L’Oréal’s thinking for quite a while. The company’s luxury sales there have doubled every four years for the past decade, according to Nicolas Hieronimus, the company’s luxury president.
China's E-Commerce: Electronic Shops VS. Restaurants In Shopping Malls
The rise of e-commerce is reshaping the retailing business in China. A report by McKinsey&Co. showed that some 5-6% of its retail spending in China already comes from “e-tail” compared with 5% in the United States. Referring to a new report by Jones Lang LaSalle, Forbes notes that in the future, electronics shops in shopping malls will give way to retailers that are focused on dining and fun. The same report highlights that “the bottom line is that e-commerce and ‘brick and mortar’ will continue to co-exist, and e-commerce will not mean the end of the shopping mall”.
Big plans for Versace in China: Store Expansion, Possible E-commerce
Already with a strong presence in mainland China, with 26 boutiques there, Versace will open between seven to 10 stores in the region over the course of 2013. Bloomberg notes that the company is also considering to extend e-commerce to China, along with Scandinavia and Australia.
In China, Mobile Should Be A Key Part Of Your Ecommerce Strategy
China represents a huge opportunity for retailers to engage with mobile shoppers with 1 billion mobile phone users in the country. Here are some things that one should consider for the mobile strategy in China: free Wi-Fi is available nearly everywhere – malls, coffee shops, fast food restaurants, train stations and even in some taxis. Unlike their U.S. counterparts, it is very likely that the first connected device for consumers in China is a mobile phone and not a PC. There are specific opportunities for successful mobile campaigns. 39% of Tmall and Taobao’s sales combined were made on mobile devices on Singles Day (China’s equivalent of Cyber Monday).