Glamour sales, a French Success Story in China
Target at Luxury Brand Online Sales
The current total volume of luxury products consumed by Chinese people is about 115 billion RMB in 2012, at an increasing rate of 7% which is dramatically lower than the rate of last year with an impressive 30% growth. Meanwhile, several luxury giants, such as LVMH and Gucci, announced that they were going to slow down the expansion of new stores in China, in particular within second and third tier cities. Why? The simple fact that almost 60% of luxury goods sales were generated abroad where consumers could get a cheaper price for the same type of goods. And these goods are not only bought abroad but also through proxy on the internet such as whatever Taobao or other internet platforms.
For these reasons, there is no doubt that an online website which is offering luxury goods with extremely huge discount could be promising and bright in China. Chinese customers definitely welcome the kinds of websites where they can buy discounted but genuine articles. It is especially true for young generations aged between 25 and 35 years old. This segment is the most dynamic and powerful group in luxury brands consumption.
Ace in Selling Luxury Goods with Registered Membership Policy & Flash Sales Model
Glamour - sales has created an invitation-only community. As for now, they have already got 2 million members with a growth of 60, 000 new members joining every month.
Flash Sales are organized typically for 5 to 7 days only for 3 to 4 brands with discounted prices that can reach more than 80 per cent. Before a special event opens, members receive a newsletter about newly coming events to plan their shopping. When we have a look at the website, it can be easily found out that Diesel, Hugo Boss, and many international brands have done flash sales on Glamour Sales.
According to the policy of Glamour -sales, once a buyer becomes an online member of this website, she / he will benefit from a privileged access to flash sales to enjoy exclusive products for a limited amount of time with a substantial discount (Model from Ventes-Privées in France). In addition, a newly registered consumer could receive a cash coupon of 50 RMB immediately as a reward which can be used during the first shopping experience, which strengthens and consolidates confidence for consumers to join and attracts them on the website. Under these terms of condition, Glamour-sales is able to attract a crowd of potential consumers to become members of this website every single day.
Stunning Way of Marketing
Besides regular campaigns launched by Glamour - sales on media for marketing and PR, the website developed a space within its website to present brand stories of its partners and publish Glamour Sales - made videos combining stylish elements of partners’ products and also Glamour Sales brand image to increase brand awareness.
From the beginning of Glamour Sales in China, Xu Jinglei, a fashionable and charming actress as well as a movie director, was appointed to be a spokesperson and honorary column editor. The image of Xu Jinglei is stunning, intellectual, and stylish. What’s more, she is an idol for female white collars who are aged from 23 to 35. The participation of Xu built a real credibility for Glamour – sales among the public when it was just taking off.
As for the aspect of social network, Glamour Sales keeps enhancing a large exposure on those networks. Take Sina Micro blog as an example. The present number of followers is 130, 430 which is making sure tweets could be re-tweeted for about 10 to 20 times on average. Moreover, the maintenance of Sina Micro blog is keeping people following up current events to create opportunities to talk about hot topics and to interact with members as well as generally speaking web users. From time to time, Glamour Sales took advantage of the influence and functions of Sina Micro blog to organize lucky draw activities.
Strategic Collaboration with Neiman Marcus Group
Neiman Marcus Group, the famous US-based luxury retailer, made a decision to discover burgeoning Chinese luxury online market and invested 28 million US dollars for a stake in Glamour Sales as a bridge to China. As for the new website established in late 2012, chief executive officer Karen Katz said it is going to be an online website providing current season offerings and will display products at the same price as in retails available 24/7 to distinguish from existing ecommerce websites with steep and eye-catching huge discount.
Written by Li Mo from Daxue Consulting Market Research China