Overseas online shopping is defines as searching goods by the internet and then send shopping requirements by electronic orders. Convenient networks shopping system, the rising consumption and demand for foreign goods are all contributes to overseas online shopping. More overseas online shipping sites provided information including good classification and shopping guide, furthermore, it also provided overseas purchasing service directly. As an agent role, overseas online shipping sites want to make profit and apart from other competitors. Thus more online shipping sites increase sales by promoting and offering discount, which affect the demand of goods and equilibrium price of goods.
At present, with the development of China, more and more
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Sum up from the overall consumption intention, consumers from different countries to wash out the most distinctive products, of course, in addition to the pursuit of personality, but also has common, more than half of the overseas shopping consumers buy beauty and skin care products. In this fact, the price of toiletries is cheaper than domestic, a fixed percentage decrease in quantity demanded that is smaller than the fixed percentage that is illustrates that beauty and skin care products has elastic demand. There is an important knowledge in elasticity of demand theory——Luxury goods tend to have a lower elasticity of demand, which can explain why there are little effect on quantity demanded when the price of luxury goods changes greatly. Although the product price changes have different effects on the consumption quantity, but overall, the number of the total amount of consumption is increasing by price is decreasing, so oversea online shopping has become an important part of people's …show more content…
Most overseas shopping goods are luxury good with lower elasticity, the percentage change of demand is larger than percentage change of price.it seems that the consumption has negative relationship with price, which reflects the price of low elasticity goods are flexible, so people prefer to overseas shopping. To large extent the equilibrium of price also affects overseas shopping. The price of foreign goods in domestic market is higher than the equilibrium price, so the supply of goods exceed demand, so lower price to close to equilibrium price, but it still exist surplus in market, overseas online shopping play a important role to this phenomenon. Above all, overseas online shopping are beneficial to China economic
Key Issues The growing popularity of online retailing is attracting competition from traditional and online multi-retailers such as Wal-Mart and Amazon, which are gaining considerable market shares in many of the product segments included in the specialty retail sector. Currently, the majority of revenue is generated by store sales, but online sales from the stores’ websites are increasing. With the US dollar getting weaker, international sales from these US based websites are increasing too. This creates a significant positive outlook for the large incumbent players but also acts as a significant barrier of entry for new players.
The real success beyond LV is about segmenting its unique products. According to the “Louis Vuitton and the diamond model” figure 16 the importance of the products are displayed in a diamond figure. This categorization approach about LV’s products not only segment its unique products but also is an example of how a globally well known successful brand achieve its mission in the luxury market.According to the figure 17 above, the potential contribution of the Asian consumers to the fashion leather goods category provided a different age for the brand (LVMH 2012 a: 11). It is important to highlight that Asia as a geographic region has the potential to support the growth of the revenues of the brand. Moreover, Japan is a unique country other than Asia because Japan makes 3.107 M € revenue by itself except from Asia which makes 7,895 M € revenue LVMH (2013d).According to the figure 18 above, the company shares for the the bags and luggage categories retail value is in an increasing trend according to the years between 2008-2012. This shows that there is still a demand potential for the products in this category despite the increase of prices on early basis. (Euromonitor International 2013 e).According to the figure 19 above, it is important for Louis Vuitton to be in a growing trend approximately every year. On the otherhand, it’s growing trend will help to realize it’s own paticular position compared to the luxury sector. (Interbrand 2013c).The revenue by business group growth percentages are different for 2011and 2012 compared to H1 2012 AND H1 2013 for LVMH group.Especially for “fashion leather goods” the 2011 and 2012 was more profitable compared to 2012 to 2013. What is common among the business categories is that the most re...
The internet and World Wide Web are extremely well suited for conducting business electronically on a global basic, Web-based Electronic Commerce(EC) has introduced unprecedented opportunities for the marketing of products and services, accompanied by features, functionality and innovative methods to serve and support consumers. E-commerce has became a major catalyst of the economy and remains a vital growth engine for businesses today, It successful change the consumer behavior. Consumer purchases over the Internet continue to grow from year to year. The survey involving interviews with 42,238 people in 37 countries worldwide revealed that almost a quarter of internet users have shopped online and 15% plan to do so during the next six month. This represents an opportunity for FedEx as a provider of small-package delivery service.
Our survey of customers revealed two main groups of consumers. The first group purchases mainly luxury brands of deodorant because it fulfills their psychological need for a luxury product. The second group purchases mainly mass-market deodorants. Since deodorant is such a minor purchase, most
Luxury goods are not the necessities but are very much desirable to people which is supported by a share of money income. They are not easily available and affordable for everyone but due to the coming up of competition in market this has been changed. Nowadays, every individual wants to raise their self high and wants to be different from everyone. Since, the times have changed luxury goods have become more affordable for middle class consumers. Whenever we open our social media accounts such as Instagram, snapchats or news on internet or be it the reality shows, it is full of rich people showing off their dresses, bags, accessories etc. Such news put an impact on our inner thinking about our need to look and feel good through rich possessions. Several manufactured goods have become luxury goods as they are designer, durable and better quality. These goods are considered as luxury goods by the consumers because they play a role of status and class for those who showcase or owns them. These items are not necessarily better than less expensive substitutes are purchased with the main purpose of showcasing their wealth. These kinds of goods are object of socio-economic phenomenon which includes watches, jewelleries, designer clothes and accessories, large
The elasticity of demand is measures the rate of response of quantity demanded due to a various factors, especially Price. In this report we are only considering the Elastic demands and the variable factor which involves money. Based on the assumption, ceteris paribus, there are different elasticity of demand where the responsiveness of quantity demanded is effected by the variation in factors like price, income and price of related goods.
The United States is the world's largest consumer goods market. First of all, it is because of strong spending power of Americans. The annual income of Americans per capita is more than 30,000 U.S. dollars. Secondly, strong sense of the American consumer contributes a lot by not only saving less and spending ahead but many people holding quite a few credit cards. The third is to update Americans on consumer goods faster, a lot of daily use no more than a year, not because they are often old and out of buying a new, but because of "new and hate the old" fresh face fashion, holidays or discounted goods would give rise to the wishes of their purchase. Finally, because the United States has high labor costs, with wages higher than 5 U.S. dollars per hour, and some industries and regions is higher than 10 U.S. dollars per hour wage, so that the United States and more labor-intensive consumer goods production has been transferred to other countries and regions. So the market in the United States needed to mainly rely on imports of consumer goods for daily use, but also considerable demand for imports. On th...
In 2015, the global hair care market was estimated to a value that is close to US$81.3 billion and is expected to grow up to US$ 105.3 billion by 2024 (Transparency research analysis, 2016). The consumption of hair care products is highest in Asia, followed by Europe, North America, Latin America, Middle East and Africa. Is it elastic or inelastic? The demand for hair care products is inelastic (MKTG 5, 2012).
The extent to which demand changes with price is known as "price elasticity of demand" and determined by three major conditions; existence of substitutes, share of budget and time for adjustment (Miller, 422). We can differentiate “price elasticity of demand” into three different categories. They are elastic demand, unit elasticity of demand and inelastic demand. If t...
Recent studies have shown that the Chinese consumers care more about what brand the product is, than almost anyone else in the world. A Harris Interactive Survey of young Chinese and American adults in year 2011 found that 72% of Chinese respondents considered “brand name” to be an important factor when purchasing clothes (Siegel, 2013). This reflects the conspicuous consumption condition in China that Chinese buy luxury products basically in order to highlight social status and their wealth.
This imminent change in the consumption pattern of Indian consumers is perhaps a direct consequence of the change in their attitudes in the first place. Increased exposure through media such as the television, foreign travelling for work or higher education, introduction and proliferation of the world wide web specially with regards to the havoc creating social networking sites, etc have cause the Indian population to embrace western culture more readily and as such the globalization of international brands has been welcomed by consumers in India with a new wave of approval and acceptance. This has also wholesomely had reflection on the cultural thought process of Indian consumers precipitating a new kind of demand altogether wherein they have begun to feel the need to possess such high end products which they feel are in some way indicative of social status.
1. A. Price elasticity of demand is a measure of the degree of responsiveness or sensitive of consumers to a change in price. The first determinant of price elasticity of demand is substituted for the product, which is the more substitutes, the more elastic the demand. Another determinant of price elasticity of demand is the proportion of price relative to income, generally the larger the expenditure relative to one’s budget, the more elastic the
One of the fundamental factors that has affected the process of economic globalization is the improvements in the technology of transportation and communications. This has reduced the costs of transporting goods, services, and factors of production and of communicating economically useful knowledge and technology. There is no doubt that advances in information and communications technology are the most important technological advances of the past quarter century (Mussa, 2000). By far, the most important and business altering advancement is the internet. There is evidence everywhere that the internet has greatly affected international trade. The internet has opened up the world, and brought it right into everyone's home and business. In addition, technology and the internet have greatly reduced the costs of doing business. Even the smallest operation can now go global via the internet at almost no cost. However, there are still some problems that face these e-commerce activities. These problems are shot-term challenges and can be met. The key issues center around two areas:
Electronic Commerce as popularly as E-commerce has become a big deal in our growing economy due to the increase use of online systems. E-commerce now of the fastest growing business in the world. The technology has change the way of business. Business that have physical location have now made it an effort to focus their online business. It is the new sort of business platform where you can make use of different technologies like electronic data interchange or transfer document electronically. Online business is an effective of sales.
The high take-up of the Internet leads to variety of opportunities in front of companies. People are more online than ever. They spend many hours each day on Social Networks such as Facebook and Google+. It is no wonder that buying and selling can now be done in a more convenient way. Although traditional shopping is still thriving, online shopping can be an alternative for people wanting to save time and money. If a certain customer plan to go shopping, it could be stressful and also be time consuming. E-business has made shopping or any kind of transactions online much easier and convenient. It introduces new facilities, opportunities and way of shopping for both vendors and customers.