Abstract
International luxury brands have recognized, although belatedly, the significance of developing a luxury digital strategy. Country-specific factors, however, remain a critical determinant regarding how luxury brands can leverage the digital marketing opportunity. This chapter raises the question: ‘how can international luxury brands develop digital capabilities in order to gain a digital competitive advantage in China and India?’ Evidence suggests that many international luxury brands are underperforming and there is significant scope for improvement. This chapter discusses the opportunities.
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- 1.
While it is difficult to confirm the size of China’s luxury e-commerce market, most estimates suggest that the luxury e-commerce market is between 5 and 10 per cent of the total luxury market.
- 2.
It should be noted that there is a lack of consistency in the calculation of the size of India’s e-commerce sales.
- 3.
A.T Kearney (2015) reported that in 2014, retail e-commerce in India increased 27 per cent to $3.8 billion, and over the next five years spending is expected to grow 21 per cent.
- 4.
The decision to abolish the 500 and 1,000 rupee note in November 2016 could help to promote digital payments and stimulate e-commerce activity.
- 5.
Tie Break can be viewed at https://www.youtube.com/watch?v=Pj0_3qTNRTA.
- 6.
Stiletto Wars can be viewed at https://www.youtube.com/watch?v=5C2BbpLxhUY.
- 7.
Although not luxury, the Indian site of L’Occitane en Provence (http://in.loccitane.com) offers not only a free delivery service but a VIP loyalty programme and even advice on how to pronounce the company’s name: ‘LOX-EE-THAN.’
- 8.
Some luxury brand sites that do not even have Chinese language sites, e.g. Marc Jacobs.
- 9.
The Apple commercial can be viewed at https://www.youtube.com/watch?v=7kxXVnAtnOQ.
- 10.
Interestingly, The Economist (2016c) asserts that China leads the world in the adoption of virtual reality.
- 11.
The SK-II video can be viewed at https://www.youtube.com/watch?v=irfd74z52Cw.
- 12.
The ‘Don’t Postpone Joy’ video can be viewed at https://www.youtube.com/watch?v=k_HdndRWNK8.
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Atwal, G., Bryson, D. (2017). Digitally Rich. In: Luxury Brands in China and India. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-54715-6_7
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