Abstract
The aim of this chapter is to investigate how luxury retailers manage brand communications and omni-channel retailing in a highly digital market such as China, which represents the most growing market for luxury products at the same time. A case study of an Italian luxury designer outlet operating in Mainland China and Hong Kong, Florentia Village, is analyzed. Data consist of semi-structured interviews with the firm’s managers and store visits, triangulated with secondary data. Results discuss the main issues involved in the development of an effective luxury retailing strategy in the Chinese market, including activities on traditional and digital channels. The analyzed case study suggests that, despite the growing relevance of e-commerce, physical stores hold a primary role in enhancing the consumer experience in China. Moreover, luxury retailing strategies should focus at building a strong brand image that leverages on attributes such as country of origin and the integration with digital tools.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Balinghou (after 1980) and jiulinghou (after 1990) in Chinese language.
- 2.
Najberg, A. (2018, May 28). The future of retail is happening right now in China. Alizila. Retrieved December 17, 2019, from https://www.alizila.com/future-of-retail-happening-in-china/.
- 3.
Fingen. (n.d.). About us. Retrieved November 19, 2019, from https://www.fingen.it/about-us/.
- 4.
Toscana24. (2019, June 13). Florentia Village-Rdm apre il settimo outlet in Cina [Florentia Village-Rdm opens its seventh outlet in China]. Retrieved November 19, 2019, from http://toscana24.ilsole24ore.com/art/oggi/2019-06-13/florence-villagerdm-apre-settimo-114038.php?uuid=ABvmkLE.
- 5.
Retrieved 2019, December 20, from https://www.weibo.com/florentiavillage.
- 6.
Rapp, J. (2018, February 2). Booming Chinese luxury outlet launches own e-commerce platform. JingDaily. Retrieved November 20, 2019, from https://jingdaily.com/booming-chinese-luxury-outlet-launches-own-e-commerce-platform/ (accessed on 7 March 2018).
References
Bai, H., McColl, J., & Moore, C. (2017). Luxury retailers’ entry and expansion strategies in China. International Journal of Retail & Distribution Management, 45(11), 1181–1199.
Bain & Company. (2019). What’s powering China’s market for luxury goods? Retrieved November 20, 2019, from https://www.bain.com/insights/whats-powering-chinas-market-for-luxury-goods/.
Blázquez, M. (2014). Fashion shopping in multichannel retail: The role of technology in enhancing the customer experience. International Journal of Electronic Commerce, 18(4), 97–116.
Bradlow, E. T., Gangwar, M., Kopalle, P., & Voleti, S. (2017). The role of big data and predictive analytics in retailing. Journal of Retailing, 93(1), 79–95.
Chaney, I., & Gamble, J. (2008). Retail store ownership influences on Chinese consumers. International Business Review, 17(2), 170–183.
Cui, G., & Liu, Q. (2000). Regional market segments of China: Opportunities and barriers in a big emerging market. Journal of Consumer Marketing, 17(1), 55–72.
Davis, L. Y. (2013). Let us go shopping: Exploring Northwest Chinese consumers’ shopping experiences. International Journal of Consumer Studies, 37(4), 353–359.
Dekimpe, M. G. (2019). Retailing and retailing research in the age of big data analytics. International Journal of Research in Marketing, in press.
Deloitte. (2018). Global powers of luxury goods 2018. Shaping the future of the luxury industry. Retrieved November 20, 2019, from https://www2.deloitte.com/content/dam/Deloitte/mx/Documents/consumer-business/2018/Global-Power-of-Luxury-Goods-2018.pdf.
Deng, Z., & Wang, Z. (2016). Early-mover advantages at cross-border business-to-business e-commerce portals. Journal of Business Research, 69(12), 6002–6011.
Euromonitor International. (2018, January). Retailing in China. Retrieved from Euromonitor Passport Database.
Faure, G. O., & Fang, T. (2008). Changing Chinese values: Keeping up with paradoxes. International Business Review, 17(2), 194–207.
Goldman, A. (2001). The transfer of retail formats into developing economies: The example of China. Journal of Retailing, 77(2), 221–242.
Grewal, D., Roggeveen, A. L., & Nordfält, J. (2017). The future of retailing. Journal of Retailing, 93(1), 1–6.
Hansen, R., & Sia, S. K. (2015). Hummel’s digital transformation toward omnichannel retailing: Key lessons learned. MIS Quarterly Executive, 14(2), 51–66.
Hirschman, E. C., & Holbrook, M. B. (1982). Hedonic consumption: Emerging concepts, methods and propositions. Journal of Marketing, 46(3), 92–101.
Hu, L. (2018). The Chinese market as an opportunity to innovate distribution strategies? Evidences from Italian firms. European Business Review, 30(5), 607–626.
Hu, L., & Checchinato, F. (2015). The country of brand communication in the retail setting: An analysis of Italian products in China. Australasian Marketing Journal (AMJ), 23(4), 325–332.
Jin, B., & Cedrola, E. (2016). Preface. In B. Jin, & E. Cedrola (Eds.). Fashion Brand Internationalization: Opportunities and Challenges (pp. vii-ix). London: Palgrave Macmillan.
Liu, S., Perry, P., Moore, C., & Warnaby, G. (2016). The standardization-localization dilemma of brand communications for luxury fashion retailers’ internationalization into China. Journal of Business Research, 69(1), 357–364.
McKinsey & Company. (2019). China luxury report 2019. Retrieved November 26, 2019, from https://www.mckinsey.com/~/media/McKinsey/Featured%20Insights/China/How%20young%20Chinese%20consumers%20are%20reshaping%20global%20luxury/McKinsey-China-luxury-report-2019-How-young-Chinese-consumers-are-reshaping-global-luxury.ashx.
Moore, C. M., Doherty, A. M., & Doyle, S. A. (2010). Flagship stores as a market entry method: The perspective of luxury fashion retailing. European Journal of Marketing, 44(1/2), 139–161.
Silva, E. S., Hassani, H., & Madsen, D. Ø. (2019). Big data in fashion: Transforming the retail sector. Journal of Business Strategy, in press.
Statista. (2020). eCommerce. Retrieved February 28, 2020, from https://www.statista.com/outlook/243/100/ecommerce/china#market-revenue.
Stathopoulou, A., & Balabanis, G. (2016). The effects of loyalty programs on customer satisfaction, trust, and loyalty toward high-and low-end fashion retailers. Journal of Business Research, 69(12), 5801–5808.
Verhoef, P. C., Kannan, P. K., & Inman, J. J. (2015). From multi-channel retailing to omni-channel retailing: Introduction to the special issue on multi-channel retailing. Journal of Retailing, 91(2), 174–181.
Wong, X., Yen, D. C., & Fang, X. (2004). E-commerce development in China and its implication for business. Asia Pacific Journal of Marketing and Logistics, 16(3), 68–83.
Yin, R. K. (1994). Case study research: Design and methods (2nd ed.). London: Sage.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2020 The Author(s)
About this chapter
Cite this chapter
Hu, L. (2020). Luxury and Fashion Retailing in China: The Case of Florentia Village. In: International Digital Marketing in China. Palgrave Pivot, Cham. https://doi.org/10.1007/978-3-030-38160-8_4
Download citation
DOI: https://doi.org/10.1007/978-3-030-38160-8_4
Published:
Publisher Name: Palgrave Pivot, Cham
Print ISBN: 978-3-030-38159-2
Online ISBN: 978-3-030-38160-8
eBook Packages: Business and ManagementBusiness and Management (R0)