China's e-commerce is booming, but not for US retailers - Shaun Rein

+Shaun Rein  (Photo credit: Fantake)

E-commerce in China is growing 50 percent each year, but US retailers like Macy and Neiman Marcus are scaling back their online operation in the country. Retail analyst Shaun Rein explains in the WSJ that US companies mostly lack brand equity and focus at the wrong consumers.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.



China Weekly Hangout

What can China learn from Singapore on sustainability. Join the +China Weekly Hangout where Shanghai-based sustainability expert +Richard Brubaker  will share his recent experiences in Singapore. You can read our initial announcement here, or register for participation here. 

What do Chinese tourists want? - the +China Weekly Hangout asked on June 20 +Roy Graff of +ChinaContact. He discusses the increasingly diversifying market of Chinese tourists. And yes, there is no longer one answer for basic questions. Moderation by +Fons Tuinstra of the China Speakers Bureau.

Related articles

• Apple: no longer cool in China - Shaun Rein
• Why China's middle class is not doing well - Shaun Rein
• Why Neiman Marcus might fail in China - Shaun Rein
• Internet ban hurts Chinese companies - Shaun Rein
• Moutai under austerity fire - Shaun Rein
• Apple is the new Blackberry in China - Shaun Rein

Why Neiman Marcus might fail in China - Shaun Rein

Shaun Rein

The US-based luxury fashion group Neiman Marcus has decided to enter the China market through e-commerce, rather than building brick-and-mortar stores. Business analyst Shaun Rein explains in the Financial Times why that might not be a smart idea.

The Financial Times:

The problem for retailers looking to get into China may be two-fold. Listing costs are high – but brand recognition may not travel online. The Neiman Marcus news was greeted with scepticism by local retail analysts. Shaun Rein of China Market Research in Shanghai said: “nobody knows who Neiman Marcus is in China.” 

Rumours have been swirling for years about Neiman trying to get retail space on the Shanghai Bund for a large new store. Most analysts see it as essential for foreign brands – especially luxury brands – to have bricks and mortar shops to bolster their credibility in a country where seeing is still believing. 

“Customers really need to be able to see and touch the product and feel the brand heritage in a physical environment,” said Rein. “Luxury sales are booming online but people still tend to equate e-commerce with cheap,” he said, adding “I don’t think it’s possible for a foreign brand to come in and sell at high prices just online”.

More in the Financial Times.

Shaun Rein is the author of The End of Cheap China: Economic and Cultural Trends that will Disrupt the World. He is also a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Related articles

• Bullish on commodities - Shaun Rein(chinaspeakersbureau.info)

  ---

• 10 things the end of cheap China will mean for you - Shaun Rein (chinaspeakersbureau.info)
• Expect more inflation - Shaun Rein (chinaherald.net)
• Rising cost in China are here to stay - Shaun Rein (chinaherald.net)