Luxury bags: how to win in the Chinese market - Analysis and comparison of e-commerce strategies used by international brands in China

Abstract

The ambition of this paper is to analyse the different e-commerce strategies that international brands use in the luxury goods market in China, focusing mainly on the fashion industry and, even more specifically, on bags. The idea behind the thesis is that, in the 21st century, in order to survive in the Chinese market, an active e-commerce presence is essential. After a brief overview of the development of e-commerce in China and an analysis of the most used platforms (both traditional platforms and social e-commerce platforms), the work continues with a careful study of the Chinese luxury market, focusing mainly on the fashion industry. The main strategies used by companies, the main sales channels and the Chinese consumers are then explored, with a comparison between the old generation and Generation Z. In addition, the impact that Covid-19 has had on this sector is analysed, with a particular focus on the process of digitization. The last chapter compares the various e-commerce approaches used by international brands (Gucci, Chanel, Louis Vuitton, Hermès, Burberry, Givenchy, and Dior) in the Chinese market. The ultimate goal is to understand what are the essential elements that must be present in the e-commerce strategies of international brands in order to promote and increase sales of their luxury bags in China.