Look here, here, here, even on our very own Technode, you can see a detailed description of the fall of Chinese luxury B2C. The high flying industry of yesteryear crashed and burned after several years of rapid growth. In this regard, it is better than the group-buying trend, which buckled almost as soon as it got started. But what’s devastating about the luxury B2Cs is that, almost everyone who was paying attention knows the business model was doomed right from the beginning.

The luxury B2Cs seem to share the vision and business model: China is rapidly becoming one of the biggest markets for luxury goods, and there is a large market untapped. The luxury B2Cs want to reach beyond the nouveau riche. By offering steep discounts to luxury goods, these sites hoped to allure the Silent Majority to splurge on LVs.

So basically, B2C sites will do what the Internet is good at, providing a democratizing experience and make a boatload of money doing good. This all sounds fine, except for one little glitch: this is not how the luxury goods business works.

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

What you get

Full access to all premium content and our full archives

Members'-only newsletters

Preferential access and discounts to all TechNode events

Direct access to the TechNode newsroom

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

Yang Wang

Yang is currently the brand and media director at Elitime Media & Consulting. He has published and translated seven books, and several of his works have been translated and published in areas such...