China Online Boom: ...yet to come for Ostrich Luxury Brands
* China is the most advanced digital market in the world
Digital payment penetration in China is 50 times higher than in the USA, largely still relying on plastic. FMCG online penetration has reached the mid-teens. Big-box retailing in China makes shopping malls and department stores in the USA look like the garden of Eden.
* Western luxury brands in China are still lagging behind
Only 21 of the 34 brands we have analysed operate an e-commerce mono-brand website in China. Even more remarkable is that the largest brands, such as LV, Hermès, Gucci, Prada, Ralph Lauren and Swatch, do not have an ecommerce mono-brand site. For comparison, 31 out of 32 brands surveyed operate an e-commerce mono-brand website in the USA, and 30 out of 32 in the UK. Digital proficiency in China is 46% – against 55% in our latest digital competitive map (DCM).
* Burberry, Michael Kors and Cartier are the only exceptions
Burberry stands out in China as strong leader on the Strategic Reach axis for exploiting all possible ecommerce channels as well as on the Digital Customer Experience Axis, excelling in customer service and style advisory. Michael Kors and Cartier are close behind Burberry on the Digital Customer Experience axis thanks to personal services and customer service.