BEIJING, August 31, 2011 /PRNewswire/ --
Global luxury goods providers are turning to the booming Chinese market and have sped up their expansion in the country, as the continued economic downturn in the US and Europe and the recession in Japan have combined to pummel their businesses in those markets since the beginning of the year. Meanwhile, China's domestic players hope to launch more global luxury brands in their home market to ease the increased pressure from this new wave of competitors. VIPStore (http://www.vipstore.com), the country's largest high-end fashion e-commerce platform, has been establishing eight to ten partnerships with global luxury goods providers monthly, in a move to increase its brand portfolio, while expanding product mix and cementing the retailer's position as one of the leaders in China's luxury goods e-commerce sector.
According to the 2011 World Luxury Association Blue Book survey, as of the end of March 2011, China's total consumption of luxury goods (excluding private jets, yachts and luxury vehicles) had reached US$10.7 billion, accounting for a quarter of global consumption while China has become the world's second largest consumer of luxury goods. In addition, data released by EnfoDesk shows that online transactions for luxury goods in China reached RMB3.45 billion (approx. US$531 million) in the second quarter of this year. The full-year figure is expected to reach RMB16 billion (approx. US$2.5 billion).
As an industry leader in the diversification of its businesses, VIPstore has aggressively been expanding its top-tier luxury portfolio since its inception while continuously seeking partnerships with more high-end brands. VIPStore CEO Yang Peifeng said, "Second-and third-tier luxury brands that are already established in the European and American markets are of excellent quality despite their lack of name brand recognition, while some of them, including certain designer brands, are, in fact, very high end and can be more expensive than some top-tier ones. The entry of these brands into China will spur the diversification and differentiation of luxury brands while, to some extent, weakening the competition among industry players."
VIPStore has become a direct sales partner for over 500 luxury brands worldwide, including, among others, LV, Dior, Prada, Gucci, Burberry, Estee Lauder and Chloe. Just this month, VIPStore introduced a number of international luxury brands into the Chinese market, including Romeo & Juliet Couture, Pietro Alessandro, EcoSkin, GNC and Eliza & Ethan, furthering the breadth of the company's product portfolio.
By buying directly from luxury producers, VIPStore can be assured of the quality of goods it sells while avoiding cost increases associated with procurement from intermediaries, ensuring consumers receive high quality, affordable products. The use of limited time sales helps to guarantee shoppers an enjoyable and positive shopping experience. Thanks to these factors, the company has seen continued rises in both membership and sales volume, with its monthly sales now reaching tens of millions of yuan. VIPStore is fast becoming the preferred place to buy luxury products online.