Luxury E-Commerce Site 5Lux Links With Air China To Stay Competitive

Consumers Expect Same-Day Delivery, Easy Exchanges, Cash-on-Delivery Options, Authenticity Guarantees

5Lux offers 5 Air China kilometers for every 10 yuan spent

If there’s one thing that sets China’s burgeoning luxury e-commerce market apart from its counterparts in the West, it’s the fact that consumers not only demand more, they now expect a wide range of perks. Along with well-worn value-adds like authenticity guarantees, cash-on-delivery payment options, fapiao (official government-issued receipts), free and/or same-day shipping and easy returns, some sites are now trying to stand out by offering specialized services like sending image consultants for house-calls or reps for in-house customer service.

Domestic Chinese sites have been among the most active and innovative in offering unique perks to shoppers, particularly as major international players like Neiman Marcus, Net-a-Porter, Yoox and others have entered the market over the past year. Most recently, in a bid to stay competitive, home-grown Chinese luxury e-commerce site 5Lux (第五大道奢侈品网) linked up with Air China to offer Phoenix Miles in exchange for high-end purchases.

Shoppers earn 29,000 kilometers for an Hermes Kelly handbag

Starting this month, shoppers on the site will receive 5 kilometers worth of Air China Phoenix Miles credit for every 10 yuan spent, or 2 kilometers for each 10 yuan spent on Louis Vuitton, Hermes, Chanel, or Swiss watches. For an 18,700 yuan (US$2,997) Celine handbag, shoppers receive 9,350 Km, while an Hermes Kelly bag gets them 29,000 Km. To take advantage of the promotion, shoppers enter their Air China Phoenix Miles on a dedicated event page, then after making purchases their Phoenix Miles accounts will be credited one month later.

While not the most exciting promotion we’ve seen by a luxury e-commerce site in China, it certainly shows that domestic players are trying to be creative to increase consumer stickiness and incentivize repeat purchases.

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Fashion, Hard Luxury, Market Analysis, Marketing, Tech