An AI Analysis of Luxury Handbags e-commerce in China
The last two years have seen a mass-migration of luxury brands in China to e-commerce marketplaces. Since 2019, over 45 brands have launched flagships stores on Tmall's Luxury Pavilion, completely changing the way that shoppers in China interact and consume luxury items.
Although China leads the pack globally in terms of luxury digital transformation, many within the sector hold the belief that e-commerce is only suited for lower priced, discounted, or past-seasons items. The assumption is still that the highest echelon of luxury products is only suited to physical stores.
This growing presence of brands online, has gifted us with a new opportunity to truly understand the luxury category through the data generated, allowing us to uncover brands’ performance, their merchandising strategies and the drivers behind certain products’ success.
In this 13-page report, Re-Hub analyses the luxury handbag category on TMall between the dates of June 1st and June 30th. We used our analytics engine to analyse merchandising assortments for all major brands and broken down into five different price segments to have a deeper analysis at the top selling products and brands for each segment. We also use this data to evaluate the assertion that e-commerce is not a suitable retail channel for the highest stratum of luxury products.
Natural Language Processing algorithms were then utilised on selected products to analyse product reviews and extract topics and consumer sentiment (at both a product and aggregated brand level).
Download the new 13-page report from Re-Hub now to get visibility on which luxury brands are performing the best at different price-points, and moreover an understanding of the drivers behind these product’s success.
This mixture of qualitative and quantitative data, gives decision makers a holistic view of the real-world applications and results of luxury strategies in the digital realm of China today.