As an emerging global force in fashion, China has its shares of ups and downs. It has embraced e-commerce to reach out to more consumers and contributed to the country’s 10.11 billion yuan revenue on luxury items.
There is a huge demand for high end items in the country however its online retailers are having difficulty keeping up. Many start ups from 2011 have shut down due to inconsistent inventory, supply chain problems and too much add-ons to the buyers like giving huge discounts on brands like Gucci.
According to Feng Po, an economic analyst, the main root of the problem lies on the Chinese consumer’s perception that online buys are naturally discounted. The price wars among online retailers makes them less lucrative. There is also the challenge of building a strong relationship with the big fashion companies. To counter these problems, Chinese start-ups might want to look into Neiman Marcus’s e-commerce company, Glamour Sales Holding. Its strategy is to make available hard-to-find pieces of branded items at full price and this ensures profitability in the long run. Chinese fashion entrepreneurs have a long way to go but if it adapts to changes and learn new ways of doing business, they would eventually become the giant player in the fashion industry.