Introduction
Online shopping is very common now days as we have internet and technology around us
all the time, people like to shop online as they do not have to go out to the shop, saving
time, and can find most of their needs or wants just through the screen, and have people
deliver the item to their door step. The commerce broke the geographical restrictions and opened up commodity circulation channels. Taobao with its more than 800 million online products enabled China’s most distant people can also buy things as they like. In this essay, it will present how Chinese internet famous people making money with fast fashion, and discuss the effect of online fast fashion on fashion industry based on the concepts and examples of fast fashion, copy right, and China’s economy growth in fashion industry against the background of online fashion shop.
Online Fashion Shop
The background of online fashion shop
With the development of internet technology, shopping on Taobao have become more and more Chinese’s choices. The 39th Statistical Report on Internet Development in China released by China Internet Network Information Center (CNNIC) shows that as of the end of December 2016, there have been up to 467 million online shopping users taking up 63.8% of the total netizens, with a 12.9% growth rate from the end of 2015. Specifically, 441 million people, or 63.4% of mobile internet users, have conducted online shopping on their phones, with an annual increase of 29.8%(p.84). The report shows that online shopping users grew a lot annually. Also, the year of 2016 witnessed the fast expansion of the channels of major e-commerce platforms. As jd.com launched its offline joined cooperation marketing model covering all areas at or below the county level and Alibaba entered the period of Rural Taobao 3.0(p.85). Meanwhile, the online shopping in the second and third tier regions continued to maintain high growth.
With the rapid development of the online shopping market and the continuous expansion of the number of Internet users in China, the number and coverage of online shoppers are also growing and expanding. The market value of Ant Financial is $75 billion, exceeding Uber, whose valuation was $51 billion(Liu, 2016). Because of this, online shopping has gradually become one of the mainstream consumer habits of the people. At the same time, a number of quite original national style design fashion boutiques, has grown up on the network, with a large number of emphasis on artistic personality, and the pursuit of independent taste of fans. These well-known original design online shopping brand is marked by natural fabrics, and rich ethnic colors. In addition, some of them also accept customization, but the price is often higher than ordinary net goods.
Fast Fashion
In recent years, on Taobao Mall, there emerged a group of footwear fast fashion brand. They make full use of some of the elements of the fast-fashion in their mode of operation, and make full use of the advantages of the network to obtain better development and higher value. This article is to use maizhongfs.mall.taobao.com as an example to analyze.
Its advocacy is fast fashion – synchronization with European fashion, and limited edition, which is in line with several key fast fashion trends. In addition, these companies have also successfully used pre-sale, namely buy early at a cheap price and other ways to speed up the fast fashion operation. The network platform (usually a masterstroke with network proficiency) is combing the fast copy across the world with appropriate combination processing. Also, OEM, third party supply chain cooperation and appropriate trend guidance is the current mode of operation for these brands. In addition, these fast fashion brands generally operate in the professional segment of the apparel market, which is relatively easy and can be done in one area. Then, they can build their own design strength.
One of the core elements of the fast fashion model is to quickly copy the international brands to follow the trend. However, if all of the brands are plagiarized, it is eventually leading to no personality differences between brands, then why not talk about fashion? Therefore, the local fashion brand in the fast fashion after plagiarism must gradually build their own design network strength. In addition, product design should give more consideration to some localization factors, rather than blindly imitate foreign models. To completely copy foreign models leads to the fact that many are not suitable for the Chinese body and aesthetic needs, which will be more obvious when entering the lower end market. Therefore, localization should be the key to win the local brands.
In addition, there is an innovation in terms of terminal and channel mode. Maizhongfs as a Taobao shop is also to make full use of the network, so that the network and fast fashion perfectly fit. It can be seen on the Internet, clothing consumption is entirely based on fashion consumption. The mainstream consumer of network clothing is fast fashion consumer groups, who care about fashion. As online fashion have access to information in a more convenient manner, online consumers are more sensitive to fashion. Internet shopping is more convenient, and easier to form high-frequency contact and consumption. Thus, the web is not just seen as a sales terminal. There is a real web-based fast-fashion operation, and all operations are network-centric, which is to use the Internet to “speed up” fast-fashion operation. For example, it makes full use of the network, understand customer needs and feedback in real time. In addition, it makes full use of the Internet to grasp the latest trends; use the Internet to implement information feedback and optimize supply chain system; let customers participate in design; use the network to increase customer experience.
At present, with the rapid network growth of brands such as UNIQLO and the transformation of domestic e-commerce garment enterprises such as Vancl into fast fashion, it is foreseeable that the main battleground of competition in the fast fashion field in the near future may shift from offline to online .
In addition, relative to the big cities, urban communities of the second and third tier markets are still comparatively the main places for fast fashion brand competition. Thus, domestic brands also make full use of the opportunity as soon as possible. In these places, the operation can be more flexible, and the operation of these areas is the strength of Chinese enterprises. Innovative channel mode of operation,and the use of a variety of ways to channel expansion are the advantage of local businesses which can take advantage of the local market of fashion. In this regard, fast fashion “pioneer” such as ME & KAR, ME & CITY have been trying.
Also, the online fast fashion shop can not ignore the brand building. Many people think that in the fast fashion mode of consumption, the main concern of consumers is the product, instead of the brand. But this idea is wrong. At present, most of the fast fashion brands appear in the vicinity of Commercial Street in the manner of specialty stores, and most of them are even directly run in the department stores. Therefore, when purchasing, the consumers consider brand factors as well. One of reasons that ZARA, H & M and UNIQLO can quickly take root in China’s big cities, is that its brand appeal is still a great attraction. Initially in Shanghai, wearing ZARA is also a relative symbol of identity, because initially they are consumers who have many overseas experience, and thus they are more familiar with their brand.
The domestic brands in the face of these internationally renowned brands, the brand in the beginning is in a weak position. So, for those who want to enter the field of fast fashion business, it must strengthen brand building. In other words, the product is important in fast fashion, but the brand is also crucial. Changes in the concept is the fundamental, as mentioned earlier, the fast fashion model is no longer selling products, but the feeling of fashion. Therefore, for enterprises which want to transition to fast fashion, the concept must be thoroughly changed in order to bring about profound changes in business.
At the same time, fast fashion is also infiltrating in the field of traditional brand clothing. For example, VeroModa, Jack & Jones, Esprit, which are the top 10 Chinese salespersons that rose around 2005, also began to pursue the “fast delivery”, “cheap” and “fashion” apparel chain brands. From luxury goods to the general brand of clothing, are permeating fast fashion. This shows that the fast fashion industry is not just a garment industry in a field of a business model, but should be a new revolution in consumer ideas of the entire apparel industry. Therefore driven by the revolution in new consumer ideas, the entire apparel business model changes. From a global perspective, this trend seems to be unstoppable. So, China’s garment enterprises needs to be ready yet. In the “slow fashion” era, the Chinese brand has almost no foothold.
People may be concerned that in the old round of slow fashion, the competition is the brand. In the fast fashion era, the competition is also about resources and the efficiency of resource integration. China, as a global big garment manufacturing country, brings together fashion from all over the world. As long as people can make full use of the advantages of local enterprises and create a fast fashion model that belongs to China, instead of blindly following the operational logic of Western big brands, Chinese fast fashion can occupy a place in the new round of competition.
China’s economy growth in fashion industry
2018 is the fifteenth year of Taobao. In the field of clothing alone, its popularity has profoundly changed China’s fashion form and even the fashion industry: From the year on year, the online shopping festival make the traditional retail brands join the online team. Such key role of fashion industry in China’s economy growth is related to features of Chinese economy. International experience and some domestic studies show that China’s overall industrialization progressively enters the middle and late stages. Thus, the role of consumer demand in economic growth will become increasingly evident.
Under the circumstance of continuous appreciation of RMB and global economic downturn, the problem of China’s excessive dependence on industrialization urgently needs to boost its domestic consumption market to promote a new round of industrial investment upgrading. Economic prosperity leads to the rise of fashion industry(Chen-Ying,2011). Thus, the transformation of the economic growth model and the double-income growth plan for 2020 based on the new-type urbanization proposed by the central government will effectively promote the compound growth of residents’ marginal purchasing power and consumption.
Compared with other major economies, China’s consumption rate is currently at a relatively low level, which has huge room for improvement. From the UNIQLO landing in Shanghai in 2002, fast fashion has taken root in China for more than a decade. China’s clothing market has been increasing at 7% and is now a USD40 billion industry(“Overview of China Fashion Industry”, 2006). The rapid growth of the middle-income group in the Mainland and the penetration of fast-fashion brands in China still far below the market of their home countries indicate that fast-fashion brands have huge potential for development in China. The new sector has significant growth potential as it is affordable to the middle class but positioned at a price point slightly higher than local brands(“Overview of China Fashion Industry”, 2006). It is expected that fast fashion brands can remain expansion in the country in the next few years. China is ushering in the peak supply of shopping malls, with its strong capacity to gather passengers and large area of demand for shops. Thus, fast fashion brand will undoubtedly become the new point of economical growth of China. On the one hand, it provides a vast space for the rapid expansion of fast-fashion brands, but on the other hand, it also hides the hidden dangers of over-competition in local areas and excessive pressure from homeowners, which are not conducive to sustainable development.
In the past ten years, with a population of 1.3 billion in China and a steady increase in resident income, fast fashion brands have enjoyed rapid growth and strong expansion in China. China is marked by a huge potential as an apparel market as a result of its rapid economic growth, and thus in the fashion industry, great attention has been paid to China(Kim, Kwak, Cho, & Lee, 2006). UNIQLO in 2002 in Shanghai Huaihai Road out of China’s first store, thus opening a fast international fashion brand into a new chapter in China. Especially since 2012, the expansion of fast fashion brands in China is accelerating.
According to CBRE research data, as of June 2013, the top four international fast fashion brands: UNIQLO, ZARA, H & M and C & A have a total of 523 stores in China, of which 207 were newly opened after 2012 , Accounting for about 40% of the total. From the total number of stores, China has become the most important overseas market for major international fast fashion brands: ZARA and UNIQLO the world’s largest overseas markets, while H & M and C & A Asia’s largest overseas markets. With the fashion design, high-quality, limited sale, fast circulation, and other characteristics, fast fashion brands can meet the buying demands of Chinese young generation of consumers. Fast fashion brand generally launched multi-season new products a year, and consumers do not have to pay expensive price to keep up with the fashion trend abroad.
Chinese internet famous people making money with fast fashion
Taobao is one of the China’s leading online shopping site. Zhang Da Yi, the top 3 Taobao fashion online seller, as people in China call her ‘Wang-Hong’ which is a word that mean those are famous in internet. Zhang Da Yi used to work as a model, as she opened her online shop in 2014 she has became one of the internet star in China, her job now is run her online shop and model for her products, she has a Weibo (similar to Facebook) account with 5million followers, which some of the followers are her customer. Her Taobao shop is reported to generate round 300M RMB in sales every month and that figure can double during Festivals. Zhang Yi worked as a model before thus her expressiveness is indeed strong. She pictured a lot of products to enhance the satisfaction of the target consumer. Zhang Dayi had more than 500 million fans in the Weibo in 2018.
In May 2014, she opened her own Taobao shop, “My Favorite Wardrobe” and went on-line for less than a year to become a three crown store. Moreover, whenever the shop has new clothes , the turnover of that day must have ranked number one compared to the stores with women clothes.
Her Taobao shop is just a microcosm of the Wang hong shop. On the day of 18, June 2015—the big promotions sales of Taobao, among the Top10 Taobao women’s clothing shop, seven of them are shops owned by Wanghong. It is reported that Taobao platform has more than 1000 Wanghong shops. In 2014’s “double 11” activities, the turnover of some Wanghong shop can be as high as ten million yuan, whose performance is not worse than some well-known apparel brands. They can attract more fans for making more money.
Behind billions in sales, it’s a million-rated fans of social media. In fact, the growth path of Wanghong is quite similar: a young and beautiful fashion girl with a lot of followers on the social network who are attracted by the taste and vision of her. Impressive growth of social networking has became a revolutionary tool for firms to improve internet marketing activities(Ho, & Vogel, 2014). After she gathered popularity on social media, it is relying on a large group of fans to carry out targeted marketing, so fans will be converted into purchasing power.
The rise of the Internet Wanghong economy is inevitable as a result of benefit from the openness of Taobao platform. With the support of Taobao big data, Wanghong in the back-stage sales can understand fans’ real-time preferences. For example, by discovering which image is leading to more flow, and the conversion to purchases, it helps them to pinpoint social media more precisely and optimally. Zhang Dayi’s products are operated in this manner. The clothes sold in his shop can not be said to be bad, and should be the same level with most of the Taobao stores. But with the model aura (Zhang Dayi wearing so beautiful) and brand endorsement as advantage, the actual experience for the target consumer is higher than the same price Taobao clothes.
Because she wants to maintain its popularity, it is necessary to spend a lot of time on the live game or video recording, and can only make money on the basis of popularity. She can try different ways to recommend cosmetics to fans in order to reduce advertising costs for more profits. For all of this, the main way to make money is popularity. So while making money, ‘Wang-Hong’ still has to do is maintain its popularity, such as continue to create their own topics, and intimate exchanges with fans.
There are more people in China are start to open online shop which they do not need to pay rent or expenses for a shop. For a long period of time, clothing is different from other products, people not only have higher requirements on their comfortable functions, but also are more critical about the color of clothing, the texture of clothing fabrics and the effect of dressing after wearing. In addition, at present, many enterprises are not in place for the standards of apparel products and apparel size standards. Therefore, it is very difficult for consumers to purchase the apparel products suitable for their body shape at one time and often need to try on repeatedly to obtain satisfactory products.
The traditional stores, department stores and other places compared to the consumption of clothing online is less risky in terms of identification of goods. However, online clothing shopping did not therefore stagnated, but was on the rise. As a result of over 1.25 billion people and double-digit economic growth, China could potentially appear as the largest Internet and telecommunications market across the world(Stylianou, Robbins, & Jackson, 2003). This has effect shops that are at the high street because online seller made their prices cheaper than them, as I went to HongKong in the summer I found out most of the people that I know would like to buy their clothing through the internet, even they found something in Zara or H&M (fast fashion retailer) they will go check online because they know that they can get similar item with a much more cheaper. The decision of consumers shopping online is determined by business credibility, e-commerce technology and logistics and so on(Yang, Zhao, & Wan, 2010). With the application of e-commerce technology in the apparel industry, apparel online shopping is becoming an important part of online shopping consumer behavior.
Reasons for the popularity of online fashion shops
It is explained by the following reason for this high-risk clothing consumption behavior. It is more convenient, free from time constraints. With the pressure of study and the continuous increase of work pressure, the pace of life of the people has also accelerated. For the modern people, it is hard to take the time to leisurely shop. This need to work every day make more people hope to use a simple and quick way to achieve their own spending and shopping purposes. In the traditional way of shopping, the process of buying and selling goods generally needs to go through a series of processes such as sampling, selecting goods, determining goods, paying for goods, packing goods, picking up goods (or delivering goods). Most of the process is done at the point of sale. Coupled with the journey time to and from the stores, it undoubtedly greatly extend the trading of goods, while the crowded traffic and the ever-expanding storefront takes too much time and energy for consumers to shop. This is a heavy burden on people who spend more and more leisure time by accelerating the pace of life.
E-commerce triggered by online shopping behavior is to provide convenience, as long as people with a click of a mouse, in such as Taobao, eBay, where customers and other large shopping sites can find what they want. If they want to shop around, it is not a bothering thing, as now the network can allow a horizontal comparison of products. Online shopping is the process in which consumers directly buy goods or services from a seller in real-time, without an intermediary service(Sivakumar, & Amsaveni, 2013). And as long as consumers completed the selection of things that are good, the network will automatically be compared for the same product with just the price comparison. Thus, the performance and features of the product will be clear at a glance, eliminating the need to shop around because of the geographical differences in reality. And products can also be delivered by courier door, which save time and trouble.
In addition, the price is cheap and affordable. In the modern marketing, the price level is always the most sensitive factor affecting business and consumer behavior. The price factor occupies a considerable proportion in the decision model of clothing consumption behavior, which will directly determine the occurrence or termination of consumer behavior. When all the information is in line with the needs of consumers, the final measure of the value of the garment is the price / performance ratio. Conscious consumers are always looking for affordable clothing products. Online clothing shop is a non-store sales model, compared with the real store, and has many advantages. First of all, in terms of cost, the cost of shop opening is low, and there is no need for store rental fees, utility bills, various industrial and commercial taxes, etc., and the risk is small. Therefore, the price of the products sold is also much cheaper than the physical stores. Second, on the purchase channel, many online shops now have a direct or indirect relationship with the plants.
Thus, the general brand products will be greatly discounted on the Internet to attract consumers’ attention . Third, it is the sales strategy, due to the relatively low cost of online shop risk, in general, that businesses will use to win higher profits. In addition, the stores are no all successful, and consumers trust the reputation of the online shop, mainly because of its creditworthiness, and the measure of its standard is the amount of “diamond” or “crown” . The higher the credibility of their products, the more attractive to consumers. Some online stores in order to win a higher credit line, and divide up more market share, will launch a price war, which is also a reason for the relatively cheap online clothing prices.
Fashionable, and innovative design of fashion clothing store compared with the physical store is another key advantage of the online fashion shops. Although the product does not involve the physical display but provided pictures, which undoubtedly leads to a sort of online shopping environments (OSEs) to increase product variety and style updates. This is another important incentive for the growth of consumer behavior of clothing online shopping. OSE attributes work together to lead to desirable consumer responses, applying and extending a theory from the environmental psychology literature to the online
environment(Demangeot, & Catherine. 2007). Because online shoppers are mostly young people, and highly educated people, they have their own independent ideas, and like to pursue the online shopping environments (OSEs) . Then, they buy clothing not only to buy his practical value, but more importantly, pay attention to its function in personalization and fashion. Therefore, fashion products sold online can meet the different degree of individuality. In this era of product life cycle gradually shortened, a new and short fashion clothing style appears to meet the psychological needs of individual pursuit of fashion. Apparel store with rich product resources and fast style updates is in line with the online consumer personalized choice, and has created a convenient material conditions, which has become a showcase of the new stage.
Shopping atmosphere online is also harmonious. A good shopping environment can motivate consumers to buy. Not only are typical online shops beautiful pictures, but they are also accompanied by comfortable and beautiful music, as if they were telling consumers pick slowly choose, and there is always a for you until you pick your own good things so far. This can be interpreted as a psychological strategy to cater.
At the same time, due to the tremendous wealth and rapid change of goods, buyers and sellers have faced serious asymmetry in the grasping of product information and increased the purchase risk of consumers, making more and more consumers feel tired of the traditional marketing methods, which is particularly prominent in the purchase of high-end consumer goods. To this end, consumers tend to take the initiative to obtain through various channels and product-related information and analysis and comparison, so as to reduce the risk of buying sense of purchase and regret, increase product trust and psychological satisfaction. As for online shopping, consumers do not have to meet with businesses, and consumers can get a lot of product information, and get in a variety of traditional shops. All of those can be easily and freely completed through browsing, selection, bargaining, purchase and other processes. Thus, the online shop is to maximize the spiritual pleasure for the realization of personality, emotional satisfaction and other high-level needs.
The attractiveness of publicity pictures is another attraction of the online fashion shop. Internet shop is fulled with exquisite pictures and dress models, which is a great attraction to consumers. However, everyone’s expectation and standards vary from person to person. Most of us feel beautiful when we wear beautiful clothes in the face of beautiful models and appear on the lens after a series of packages of merchants. So with that piece of clothing in their own vision, it unscrupulous produced the desire to buy. Throughout several major clothing sales sites, such as “Taobao”, it is not difficult to find every shop’s pictures are very fresh, giving a pleasant feeling of elegance. Every product picture seems to have been carefully crafted, and the charm of the model can be described as just right. Thus, almost every garment people see is to be displayed in a perfect way.
The impact of online advertising is huge on the consumers’ behavior. Online advertising as much as the speed of propagation has exceeded the influence of physical advertising. The formation of any brand are inseparable from the publicity and marketing. Thus, for a product in order to obtain their own value, it must be carried out certain packaging, publicity as well. Regardless of what the store is and what brand is, its online store must be in the network to establish a “network brand”, to take the advantages of using the Internet. The display ads targeting has been centered around the site context and the audience(Choi, 2013). Thus, consumers can observe that almost any web page will have a advertising appear.
Even when the consumer log into the chat tool, there will be an advertisement box popping up. And so-called junk mail is also endless, and online fashion shop use this to attract more consumers. But people seems to be inherently curious about something like that, especially if products in the ads is cheap or well-known. Consumers are even more intrigued by such curiosity. To sum up, online fashion shop as a brand new mode of shops is quietly formed for consumers, even though there is a greater risk compared to the traditional physical stores to buy clothing, but this shop is more suited to the current network and needs of some consumers in the information age, such as the psychological needs of consumers, to a certain extent. Thus, it is to provide consumers with comfortable, fast and rich product services of online fashion. In order to better protect and promote the healthy growth of this emerging consumer behavior, many normative and directive policies require the government, enterprises and consumers to work together to complete.
The effect of online fashion shop on fashion industry
On February 20, 2017, Taobao held its first 2017 event in Liangzhu, Hangzhou. Its fashion platform iFashion takes the lead in disclosing this year’s Taobao industry’s direction of fashion. In the meantime, CBNData released the “2017 Internet Fashion Consumer Trends Report.” It is reported that the main data of the report comes from big data of Ali, and it uses Taobao iFashion platform as a typical case. The report predicts the trend of online fashion in 2017 and has a pivotal significance on eight major trends for the entire fashion market. The economy of “Wang-hong” entered a wave of eruptions last year.
As a leader in fashion, they have unique perspectives and understandings on consumer demand and industrial modes, both for the platform and for the entire fashion market. In 2016, Live broadcasting +“Wang-hong” stir the entire fashion market. In the different forms of content e-commerce, live broadcasting with its high conversion, strong exposure features come to the fore, as one of the most influential fashion mode. Live broadcasting is just a tool, but the key is how fashion shops to use this tool to show the style of the store, or the charm of personality. As the Internet advances, there will be more new technologies, and new models which will have impact on fashion consumption, which requires businesses have the ability to quickly adapt to change. In 2017, Taobao’s content operation will be more open and will be more commercial.
In addition, the “2017 Internet Fashion Consumer Trends Report” shows that “youth” forces is marked with the rapid rise of fashion. In the field of online fashion consumption, the contribution of the post-90s consumer groups has been increasing year by year. From the perspective of the changes in the sales of different age groups, consumers aged 18-20, 21-22 and 23-25 is more explosive than consumers in older age. In industrial development, big data is often directing the development of market. For Taobao as a e-commerce platform for a group of young consumers, the data generated on it has more extraordinary value.
Focusing on the iFashion platform, which focuses on the people born after 1990s, people can see even more detailed consumer behavior. Compared to the average young consumers, they do not choose cheaper clothes but prefer to choose to follow the tide; compared to the most basic and the most practical clothes, they are more focused on the fashionable side of clothes. As reported in the report, the “2017 Internet Fashion Consumption Trend Report” released by CBNF at the conference included significant market growth points, advanced consumption and early adopter consumption. In addition, as reported in the report , the characteristics of scene-based consumption will become more and more obvious. In addition, the report has also made the style increasingly personal as the first trend of fashion industry. CFSTDI predicted that fashionable brand products, especially men’s brand, will grow steadily in 2017. Correspondingly, the two trends are that technology and fashion will become more and more cross-border, and new business models will bring more consumers as the core. There will be a bigger market for customization and crowdfunding.
Copy Right
In addition, the plagiarism of big-name design has become the biggest problem troubling fast fashion. In order to ensure the continued popularity of products, fast fashion often follow the trend rather than create the trend. Original design is not a fast fashion selling point, so copying the design of other fashion brands has become one of the “unspoken rules” of fast fashion brands. For example，”Thom Browne Stripes” experienced the first real phenomenon spread in 2013 after the popularity of hit drama “My Love From the Stars “.
In the play, Do Min Joon was wearing the gray cardigan. Then, for a time, the same photo swept Taobao. After a search of “Thom Browne”, the results page of . But after the limelight of the show was over, the shop owners changed the name of the product, and currently on the shelf is to put Li Yi-feng—a Chinese popular star on his picture, so better to sell the clothes.
This year after the end of CCTV Spring Festival Evening – February 8, some sellers on the Taobao sellers began selling some of the popular clothes with the same style of that of stars. but until February 22 Lantern Festival live broadcast, here are online stores producing products, faster and faster. Stars at the party wearing the same star clothing had a large difference with the price of that sold in the shop, or even up to 10 times, especially the price of women’s clothes. However, the clothes sold in her store are mostly plagiarism, which should be a business strategy adopted by most of the ‘Wang-Hong’ shops.
They all showed that for the industrial system, the fake storm and copy right issues should also be a main concern of Taobao. In July 2014 and October 2015, Kaifun, a French luxury goods group with brands such as Gucci and Saint-Laurent, twice filed a lawsuit with the court against Alibaba Group, noting that its Taobao subsidiary was aware of the sale of fake goods on the platform and to encourage or even assist, profit from it. For the products imitating the first rate brands, the price is often less than half of the genuine ones. Even though they have been cut off the label, the opportunistic shops have already violated the copy right. There is no doubt that the impact on the price system of luxury goods. Internet infringement of copy right and sales of counterfeit were affecting channel, sales and profits of counters , resulting in mismatch between brand investment and income, so that dealers lost confidence in product brands. When the online shop caused chaos in terms of price, the seller’s confidence in the brand began to gradually lose, and finally rejected the sale of goods; a substantial profit reduction will make the dealer’s normal sales have been seriously disrupted;
Conclusion
In China, fast fashion is favored by consumers because the brand that operates in fast fashion mode offers a rich and diverse range of products. It is also key for economical development of China. Also, a lot of online fast fashion stores are on the rise as online shopping in China is developing. China is still in developing, and there are still many problem that need to be solve, such as the copyright of clothes sold online. Thus, it is key to consider how the internet in China can be effectively used, and how does it effect to shop retailers, as online shopping had become in people’s lifestyle.
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