CHINA. DFS Group has launched www.Galleria.com.cn, which the retailer says is China’s first online luxury shopping site. A total of 30 luxury brands, and more than 1,000 individual items, will be available online for the first time in China through this site.
Chinese customers can purchase goods from brands such as Dior, Fendi, Celine, Loewe, Givenchy, Guerlain, DKNY, Dom Perignon, Emporio Armani, Prada, Burberry, Swarovski and Dunhill, all distributed by Galleria.com.cn
DFS, the world’s largest travel retailer, developed Galleria.com.cn in partnership with Shanghai Difusi Information Technology and Development Co, which provides the technical platforms for the site.
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‘Love To Shop’: The site allows users to shop by brand and by category |
“A mainstay of DFS’s strategy for growing our business is a commitment to innovation and pioneering new markets. We have done that most recently by opening a large Galleria in Okinawa and we are planning a luxury Galleria for Macau. Galleria.com.cn extends our reach into every home in China with Internet access, providing a new shopping channel for an important and large emerging luxury market,” said DFS Chairman and CEO Ed Brennan.
The site’s theme line is ‘Love To Shop’ and the concept is described as “Your licence to shop luxury brands with confidence and have fun, too.” Graphics and copy are available in both English and Chinese. In addition Galleria.com.cn provides fashion tips, beauty advice, news and trend reports.
Customers can get information from trained service representatives either through the site’s chat room or by calling a toll-free number.
Customer orders are fulfilled at a warehouse in Shanghai and deliveries can be made to nearly any address in China, with shipping free for purchases over RMB500 (US$65). A quarterly catalogue will complement the online service. Products are guaranteed to be authentic and, said DFS, customers can be assured of good sales service before and after making transactions, as well as a returns policy and multiple payment options.
Customers can shop by brand or by category (fashion, bags, watches & jewellery, men’s shop, gifts, beauty & fragrance). The site also features a ‘Lookbook’ offering ‘the best and hottest items’, a ‘Trends’ section, an area for gifting and a magazine.
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DFS Group Chairman Ed Brennan: “Galleria.com.cn extends our reach into every home in China with Internet access” |
COMMENT: This is a timely play by DFS at a time when Internet usage by Chinese consumers is soaring. The spectacular success of websites like beauty and lifestyle concept www.onlylady.com confirm that there is huge commercial potential in the channel. Notes Kevin Chen, The Moodie Report’s consumer writer in China: “From the selection to booking of hotels and airlines, obtaining information about the destination, as well as product price comparisons, Chinese people are turning to the Internet as a trusted and valuable source of information.”
He says the question of authenticity is key. In a report late last year entitled ‘Why brand companies and retailers must harness the Internet’s power’, Chen observed: “Chinese consumers believe that they can be assured of the integrity of products when buying directly from luxury brands’ websites, which should give them an advantage. However, while brands can target consumers in North America, Japan or Taiwan using online purchasing facilities, even offering massive discounts, those targeting the Chinese are sadly lacking. Those luxury brands that invest in making this change happen will be well placed to reap the benefits.”
DFS Group has done just that. Its reputation among many Chinese travellers is already well established and the key consideration of authenticity is therefore addressed. Without any investment in bricks and mortar, this venture could be a tremendous success, both financially and in further underlining the retailer’s reputation with one of its two great consumer targets, the Chinese.
ABOUT DFS GROUP: DFS Group is the world’s largest travel retailer with 150 stores in 15 countries. The group specialises in presenting luxury brands to international travellers – particularly Japanese and Chinese consumers. Although it still has a strong airport shop portfolio, increasingly its emphasis is on selling high-end items through its Galleria downtown stores.
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