Gilt's Chinese Vipstore.com Leads High-end Male Consumer MarketBy Vipstore Technologies Limited, PRNE
Thursday, June 9, 2011
BEIJING, June 10, 2011 -
- China's "Male Economy" Decrypts Luxury Consumption
The 700 million male consumers in China are becoming the king's of
international luxury brands, such as LV and Armani. After 30 years of rapid
economic development, a flood of high-end consumers are emerging in the
country where the fashion world no longer opens its doors to women only.
Related studies show that about 70 percent of Chinese high-end consumers are
made up of men as the backbone of the Chinese high-end consumer base. The
high-end "Male Economy" consumption is growing as a new tide in the nation.
Vipstore.com, the nation's high-end e-commerce platform providing fashionable
products, is witnessing and benefiting from this booming market.
A report released by CLSA Asia-Pacific Markets in February this year
revealed that the average age of Chinese millionaires is 39, 15 years younger
than millionaires in other countries. Moreover, the rich in China are more
eager to show their wealth than the wealthy in other nations, which makes it
a unique phenomenon in the Chinese luxury market that the proportion of male
buyers is higher than that in any other markets worldwide.
Industry professionals predicted that over the next two years, sales of
luxury goods in China's e-commerce sector will reach RMB20 billion. The
shopping enthusiasm of male buyers in China as the second largest consumer of
luxury goods will astonish the world. The young rich led by men as a new wave
has been quickly followed by high-end fashion-focused e-commerce platform
Vipstore.com that has benefited a lot from the "hunting" of male consumers.
VIPStore has differentiated itself from market competitors, e-commerce
websites focusing on luxury products for female consumers, by providing
high-end male consumers with new consumption choices. Each day, VIPStore
launches more than 20 sales promotions targeting males, offering a variety of
stylish items selected by its global fashion buyers, such as Rolex and Armani
watches, Ralph Lauren Polo shirts and Dupont men's shoes. Sales of male
products accounted for around 50 per cent of VIPStore's monthly sales of tens
of millions of yuan, and the proportion is expected to keep rising, according
to market feedbacks. The strong growth momentum is the result of what
VIPStore exactly meets in market demand from high-end male consumers.
VIPStore CEO Allen Yang said: "The meteoric rise of China's middle class
leads to increasingly diversified individual social statuses. Colorful social
life has created stronger than ever demand for non-necessity from men, paving
the way for the fast growth of male consumption in China. High-end male
consumers are naturally eager for luxury goods and act more rational and
well-organized than females. They tend to be more concerned about excellent
quality and less price-sensitive than females, and for this reason, they are
more willing to spend money on product quality and brand value to show off
their achievements and social and financial success, which is proved by the
user consumption mode of VIPStore. Average first-order unit price by male
consumers is typically 200 per cent higher than that by females, and their
consumption mainly focuses on name-brand watches, glasses and clothes.
VIPStore's sales mode of offering limited time specials on branded products
also triggers males' innate aspiration for new and fresh items."
In order to seize the high-end male consumption market, after having in
place sale agreements with over 500 international luxury brands, Vipstore.com
continues to increase categories of male consumer brands and categories of
male clothing and products, to take the preemptive opportunities in the
supply chain. For example, Z-Brand, the US-based first-class and premium
leisure brand, and Vipstore.com have achieved great success in their
cooperation. As Z-Brand's exclusive online sales partner in China,
Vipstore.com focuses on selling a comprehensive line of products from
Z-Brand. It sells out products from Z-Brand immediately when introducing the
products on specials, as products from Z-Brand are well welcomed by Chinese
consumers. Vipstore.com recently won sales licenses from a series of male
brands. Gaining advantages in the supply chain and providing a comprehensive
line of high-end consumer products for the Chinese male group is a major step
for Vipstore.com to kick off the "Male Economy" consumption strategy. The
contribution to the Chinese luxury product market by male consumers can be
confirmed by another group of data.
The Chinese "Male Economy" market has performed very well over the past
several years. For example, as the world's largest sales market of the luxury
brand Louis Vuitton, half the country's sales are contributed by male
consumers, while in most markets worldwide, male consumers only contribute
about 40 per cent to the brand's total sales.
According to analysts, Chinese male consumers of luxury products are more
likely to try new things and shop online. Deeply seeking for demands of male
consumers and incorporating them into the mainstream culture of male fashion,
Vipstore.com took the lead in grasping brand consumption demands of China's
high-end male group and unlocked the high-end male consumption market with
advantages in the supply chain. This is of great importance for Vipstore.com
to occupy the leading position in the Chinese luxury product online shopping
market. With the evolution of the Chinese luxury product online shopping
wave, the "Male Economy" consumption model is expected to be more vigorous.
The male "elite consumption" era is approaching.
Candy Bu, +86-10-8562-1330 Ext 818, candy.bu at vipstore.com
Tags: Beijing, China, June 10, Vipstore Technologies Limited