The evolution of luxury brands presence in Chinese e-commerce market-Kering case

Abstract

During the last years, the development of Chinese luxury market was speeded up by the rapid economic and social growth. E-commerce development was a big step forward for luxury economy, but it contributed to the increase of counterfeiting. In the first chapter of this thesis is analyzed how Alibaba faced the problem introducing a lot of policies and collaborating with luxury brands. Thanks to these actions, luxury firms presence in Chinese e-commerce evolved from a wary position because of counterfeiting to a strong online presence. Luxury brands decision of opening online shops has also been driven by the evolution of Chinese luxury consumers. For this reason, in the second chapter there is a focus on Millennials and Gen Z. In the central part of the chapter are explained the consequences brought by the affirmation of online shopping while in the final part is analyzed the last reason which led to the increase of luxury brands presence on Alibaba platforms that is Covid-19. Finally, in the third chapter Kering group-Gucci is taken into consideration as an example of a luxury brand development in China. To sum up, the thesis has the scope to examine the evolution of luxury brands presence in Chinese market focusing on Kering case. Thanks to the analysis of its experience, this thesis wants to make companies understand the importance of entering Chinese e-commerce market to face the crisis caused by Covid-19 and expand their business in a country which is dominating the world luxury economy.