China Insight: After the 618 Shopping Carnival, What’s the Way Forward for the Uncertain Online Fashion Market in China?

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The 520 and 618 shopping festivals raised further concerns about the Chinese luxury market.

is coming to an end. On the one hand, the social financing data released by the PBOC in April showed the first declines in nearly 19 years; on the other, the first-quarter earnings reports of Alibaba, JD and listed Chinese apparel companies came out in May and showed significant growth in the performance of the fashion sector.

Uncertain economic trends and the bleak status quo of the industry pose a new challenge for enterprises and brands focusing on online business. A new industry test has just begun.Fierce competition and rounds of layoffs had stirred controversy and doubts about the e-commerce industry.

In addition, introducing new products has become the main practice of all brands. On the platform end, the introduction of new products in early summer has become an industry habit. On the consumer end, the demand for and emotional value of new products has been amplified by the 618 shopping carnival.

According to Tmall Luxury, it did not matter whether the pre-owned items intended to be resold were purchased on Tmall, as long as they were genuine items certified as 90 percent new and above through evaluation. Currently, used items of Hermès, Chanel, Dior, Louis Vuitton and other leading luxury brands, including jewelry, watches, bags, shoes, boots and apparel, can be resold as long as they meet the qualifications.

 

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