On Thursday, September 6, Shangpin announced the opening of China’s first online retailer selling full-price, in-season items. The site is the only styling-driven online fashion business-to-consumer platform in China, with the concept of styling instilled throughout the site. The online store will feature nearly 80 contemporary fashion brands, some of which have not been available in China before. Shangpin’s brand partners include Milly, Stuart Weitzman, DVF, Tracy Reese, Rebecca Minkoff and many more.
Shangpin first started out in 2010 as a flash-sale online retailer that introduced a rewards system in partnership with three Chinese banks. Shangpin offered VIP credit card holders of China Construction Bank, Minsheng Bank and Huaxia Bank luxury products as rewards for using their cards. The site soon created a customer base of more than 2.4 million consumers, who are expected to also use the full-price online store.
Founder and CEO David Zhao, Vice President of Global Business Development M. Claire Chung, and Vice President of Global Merchandising Winnie Foon discussed Shangpin and the Chinese market at a morning presentation Thursday. Chung called China the “new promiseland for designers,” and noted that online shopping has been an important channel in the country as of late, and that they have worked hard to increase brand awareness in order to build trust with Chinese consumers. She also stated that the luxury Chinese market continues to grow.
Zhao explained that by 2015, 22 percent of global luxury consumption will be in China, and the country currently has the second largest consumer market with an annual growth rate of more than 25 percent. Shangpin itself has the highest average transaction price out of any online retailer in the country at about $470, compared to the average transaction price of online purchases in China, which is only approximately $30. With more than 150 cities in China having a population of more than 10 million people, an online retailer is an ideal way for brands and designers to reach the targeted high-end consumer. Zhao noted that Shangpin is working with brands, celebrities and publications like Bazaar and Vogue to educate “China’s fashionistas” on global styles and trends.
Foon continued the discussion, explaining how China’s fashion image has since evolved from the Mao Suit of the ’80s to each individual wanting to express his/her own style. Since the concept of “styling” is still relatively new in the country, Foon stated that Shangpin’s in-house magazine features Chinese bloggers and Hong Kong and Chinese celebrities discussing hot trends and how to mix and match. She went on to reveal that that the average Chinese customer today will spend about $400, buys more “tight-fitted” clothing in sizes small and medium, and enjoys brighter colors and prints. She notes that by understanding the Chinese market and learning about the customers’ wants and needs, they are able to pick the right product mix for Shangpin’s full-price online retailer.
To learn more, visit their website at www.shangpin.com.