News/blog.

The “Digital IQ Index” report by the L2 Think Tank in June recently highlighted the large growth opportunities found in China’s luxury market sector. “Prestige brands can do a mediocre job in every other market and still grow revenues and profits substantially by getting one thing right: China.” In speaking with Bloomberg News, L2 founder and New York professor Scott Galloway discussed the future of e-commerce and the areas of untapped market potential China.

By far the largest opportunity for Brands comes from China’s internet user base of 380 million, outnumbering USA and Japanese internet users combined (200 million, 90 million respectively). With around 80 percent of China’s luxury consumers below the age of 45 compared to the USA (30%) and Japan (19%), the statistics show that young internet savvy consumers in China are an e-commerce magnet that has still yet to be fully realised by a majority of western brands in China.

Facts & Figures:

· The size of the e-commerce market has quadrupled since 2006

· Luxury brands - Physical presence underperformed in comparison to social buzz and sales online

· Within industries excluding Luxury brands, less than 10 percent are e-commerce enabled

· There are 745 million mobile phone users in China but only 42 percent of brand websites are mobile-enabled

via Jing Daily

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