Purpose:The retail mode of China's luxury industry has undergone tremendous changes in the past ten years. This thesis is to study the luxury marketing mode suitable for China's local context, therefore to help luxury enterprises optimize the entire retail process of marketing, sales, and supply chain management. Incorporating the case of Pacowin Company, this thesis deeply analyzes the historical background and development of elements in the three marketing modes of luxury: the traditional store marketing mode, the e-commerce marketing mode and the emerging new retail mode.
Design/methodology/approach:This thesis adopts qualitative research method, as well as the following methods of analysis: literature research, analytical synthesis, case study, questionnaire survey and interview.
Findings:The thesis believes that new luxury retail mode combines the advantages of traditional store mode and e-commerce mode and overcomes their disadvantages, so it will become a strong support and supplement for these two marketing modes and become the future direction of luxury retail.
Research limitations/implications: Since this thesis explores the latest new retail mode in luxury sector, there are very few practical cases that can be used today. Moreover, this thesis only studies new luxury retail mode based on Chinese context instead of global market. These aspects are the limitations of this article and the directions in which future researches can continue.
Practical implications: Pacowin is one of the few luxury merchants in China trying the new retail marketing model. All the data come from the practical operation of Pacowin, and the countermeasures have been tested in practice. Pacowin’s experience and resources can be imitated by many other small and medium-sized companies.
Social implications: The development environment, factors and direction facing a new retail model that this thesis concludes can be used as a reference for luxury merchants. Combining the advantages of the new retail mode in traditional luxury industries, can expand the positive impact of new marketing models, accelerate industrial upgrading and transformation, and cater to the public’s consumer demand.
Originality/value: The use of new retail in the luxury industry was newly emerged in late 2017. This thesis attempts to make an in-depth study of the latest phenomena in this luxury field, it’s an exploratory and innovative frontier research. This thesis of qualitative research methods can fill the theoretical research gap after the emergence of luxury new retail phenomenon.
Keywords: luxury goods, luxury e-commerce, luxury new retail, China’s local context