The Big Surprises in Tencent/BCG’s Report on Chinese Luxury Shopping | RetailTechPodcast

The Big Surprises in Tencent/BCG’s Report on Chinese Luxury Shopping

Executives of Chinese technology giant Tencent Holdings, in New York City for the marketing industry's annual "Advertising Week" events, released the striking results of a report done with Boston Consulting Group on the digital behaviors of Chinese luxury consumers. Chinese luxury consumers will account for 40 percent of the global buyers by 2024, driving 70 percent of the growth. In 2017, 95 percent of luxury purchases happened offline while only five percent occurred online, according to the report. In particular, "Research online, purchase offline" is the main path that Chinese luxury shoppers like to take at the moment, the report notes. The report shows more than half of online luxury transactions happen on major e-commerce websites such as Alibaba's Tmall, Luxury Pavilion, and JD.com's TopLife, and nearly a quarter of them takes place on brand's official e-commerce sites. The social commerce shopping mode currently accounts for 11 percent of online luxury sales volume in China. Of course, much of the research was done before heightened trade tensions with the U.S., and some analysts also see signs of a softening economy in China, so it remains to be seen if the very rosy retail outlook for luxury shopping by Chinese buyers holds true. Read more