Luxury Labels Hit by Soaring Number of Chinese Returning Goods
- Some brands’ rates well above luxury industry’s normal level
- Worrying sign consumer demand still weakening in mainland
During China’s biggest online shopping festival last November, orders poured in for upscale labels on the mainland’s dominant luxury e-commerce platform, Alibaba Group Holding Ltd.’s Tmall.
But within days, brands including Burberry Group Plc and Cie Financiere Richemont SA’s Net-A-Porter saw up to 75% of that sales value vaporize as consumers returned or cancelled purchases in droves, people familiar with the matter said, asking not to be identified discussing private data.