PRN: Gilt's Chinese Vipstore.com Leads High-end Male Consumer Market
Gilt's Chinese Vipstore.com Leads High-end Male Consumer Market [10-June-2011] BEIJING, June 10, 2011 /PRNewswire/ -- - 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.
Gilt's Chinese Vipstore.com Leads High-end Male Consumer Market
BEIJING, June 10, 2011 /PRNewswire/ --
- 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.