In China, the digital shift is forcing high-end brands and retailers to innovate at breakneck speed. They have to change their state of minds, taking a step back from former arrogant postures to adopt more inclusive partnerships.
The figures speak for themselves. In 2020, e-commerce accounted for 45% of retail in China, making the country one of the most digitalised retail markets in the world. With consumers suddenly stuck at home, this acceleration has been particularly strong for premium brands. According to Bain & Co, luxury goods sales jumped by 48% in China in 2020, reaching nearly €44 billion. China was the only country where the luxury market increased, whilst other parts of the world saw a drastic collapse: luxury retail sales fell by 26% in Americas, by 25% in Japan and by 36% in Europe. It is not surprising that China is cited as the number one priority for many high-end retailers interviewed by mind Retail.
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