Theres just one thing about this years new I.T Bag, it’s not a bag
There’s just one thing about this years new I.T Bag, it’s not a bag.
The new Mobile Payment trend; Only a click away to fuelling all your purchases
According to WSJ, China last year became the number one mobile payment market in the world. Where credit card use is limited, many businesses based in China have largely embraced mobile payment methods across a variety of industries where it more than doubled from last year accounting for approximately 235 billion USD (meaning 3 out of 5 consumers use their mobile wallets to shop). This places China three years ahead of the US in terms of mobile shopping and currently moving faster than any other area of the economy.
But what does this all mean in general, especially for the fashion industry?
Today, offline to online transactions in China have never been as seamless and easy as they are today（ as you already know） , you can leave your house to have a manicure, shopping spree, lunch, pay your phone/electricity bills, do your groceries and take the cab back home all through cashless transactions, greasing further and further our buying behaviour.
Louis Vuitton seems to have anticipated this new tech movement of no longer needing “physical wallets” to move around (especially China) and hit the hard buttons of key global media and fashionistas from all over the world as it presented its SS17 collection during its PFW preview this fall. As we were hovering around each other in order to get a closer sneak peak at the to be IT bag of the moment, we saw uber luxurious iPhone cases in a variety of colors and materials where the French Maison transformed its signature travel trunk bag, The Petite Malle, into a modern tech-friendly accessory which is expected to range anywhere between 350-5,000 USD, an affordable gateway purchase for some.
LV SS17 Show, PFW
I remember the founder of the Parasuco denim brand telling me “there’s something about taking out physical cash that just makes you naturally more cautious about spending”, although you might think this notion may already be “old school”, today’s mobile tech has become synonymous with the notion of impulse shopping, making purchasing transactions with a seconds click (or scan).
It’s not only about the big retail giants such as Taobao, Tmall, JD, YiHaoDian, who have commercially pushed this trend on a mass scale, but today, most fast fashion retailers such as Etam, H&M, Zara or luxury retailers such as Yoox – Net a Porter to even the most coveted boutiques or e-commerce start-ups are using cashless processes through Alipay or Wechat payment ( online and offline).
“Making the checkout process as fluid as possible for customers to pay is essential for increasing sales. Everything we do is data-driven so conversion is very important. The number one thing to do is monitor where users are dropping off from the site. If they are abandoning the shopping cart to payment, chances are the mobile payment site needs to be optimised. Users don’t want to go through the hassle of having to fill out too much information during checkout. They expect a seamless experience from the checkout page.” says Kenny Au, CEO LUXSENS, a luxury fashion platform geared towards the transparency of luxury products online.
With Tencent creating Wechat payment, gaining + 650 million unique users in just 5 years and Alipay (Alibaba group) being currently the largest market leader in the world for mobile payment platforms, I don’t see mobile becoming something stagnant anytime soon, at least not for the next 5-6 years. A combination of China’s increasing middle-income class, the fast developments of feature-rich cheap smartphones as well as the Chinese government allowing a free-flowing retail payment marketplace is going to create an astronomic boost in the next years as well as totally shifting consumer behaviours for this and the next generation to come.
It’s not even about keeping pace with the “so called tech trends”, its simply become a natural way of doing things that has been embedded in how daily transactions are done, forecasting to fuel even more purchases in the future.
So for 2017, who needs bags anyways?
Photos sourced from the Internet, Original Content created by Yanie for Modern Lady