Luxury car firms rushing to offer merchandise to tap Chinese consumption potential
Published: Oct 15, 2022 12:27 AM
A trench coat sold on Ferrari's Tmall store Photo: Screenshot of

A trench coat sold on Ferrari's Tmall store Photo: Screenshot of

Some European luxury car brands have recently been scrambling to release new products to tap China's huge consumption potential ahead of the Double 11 (November 11) shopping festival, the largest and most popular annual global shopping festival in the world.

Italian sports car giant Ferrari opened its first official clothing store in China on e-commerce platform, selling products such as high-end fashion and accessories, ranging from 630 yuan ($87.60) to tens of thousands of yuan. One of the most luxurious item is a gray women's mid-length trench coat, priced at 44,550 yuan ($6,196). Store members can enjoy priority pre-ordering, and pre-sales are set to start on October 24.

Some netizens have found that the price of Ferrari T-shirts is around 2,000 yuan ($278) while most of the jackets are over 10,000 yuan ($1,390).

The company's move has already drawn wide interest among Chinese netizens. The subject about Ferrari selling a windbreaker in China for 44,500 yuan was one of the most searched for on Friday, drawing up to 80 million viewers and thousands of comments as of press time on Sina Weibo.

Ferrari has maintained stellar performance recently. Its financial report for the second quarter of 2022 showed that from April to June, the company delivered 3,455 vehicles, a year-on-year increase of 28.7 percent, with deliveries to China shooting up by 116 percent.

Other European luxury car brands such as Porsche are also trying to cater to Chinese consumers. Recently, the company introduced a "Chinese standard" stainless steel kitchen knife priced at $240, which gained a lot of media attention.

"You can smash garlic, but it is not suitable for cutting bones," a member of staff responded when asked about its usage, according to a report by domestic news outlet

The knife was sold out on the company's US website as of Thursday, while consumers could still buy it via its German and Swiss websites.

Porsche has seen strong sales growth in China in recent years, and it believes more women are becoming interested in its products.

While high inflation has weakened global consumption, China's consumption has been relatively resilient, providing important momentum for many foreign companies.

In the first half of this year, global cross-border e-commerce luxury goods sales increased by 17 percent, and Chinese consumers accounted for 46 percent, ESW, a cross-border e-commerce technology company, said in its latest research report on Tuesday.