‘Chinese Firewall’ Creates Headaches for Luxury Brands

on May 29 2014 | in Digital | by | with No Comments

Catchpoint Systems, DNS, e-commerce, firewall, China, luxury retailers, Chinese e-commerce, China online shopping

Due to the ‘Chinese firewall’, some brands are having difficulty providing customers with top-notch web experience.

One implication of China’s firewall regulations is that webpage load times may be slowed. This is disconcerting as many consumers are quick to give up on their online shopping.

Given China’s e-commerce potential, which Boston Consulting Group estimated at 380 million Chinese online shoppers by 2016, it is essential that luxury brands address any fundamental internet issues.

“Delivering content to Chinese eyeballs is very challenging due to the ‘Chinese Firewall,’ for any company looking to tap into the huge revenue potential of this region…But it’s particularly an issue for luxury brands,” Mehdi Daoudi, cofounder and CEO of Catchpoint Systems, told Luxury Daily.

He also pointed out that some companies might have to look for global solutions to their problems. “To get around this challenge, global companies need to leverage services that are physically located ‘on the ground’ in China, but this adds complexity. The more external providers that a company uses to deliver web content, the more potential points of failure are introduced and the more risk for a performance problem.”

Daoudi’s company surveyed 26 different Chinese luxury brands in May and found that 88 percent of sites were hosted by servers in China and 92 percent were also having their content delivered from China.

While the majority of sites are hosted from servers in China, the survey revealed that 74 percent of them did not use a Chinese DNS service. This is one reason why webpage load times can be so slow.

While the issue of Chinese firewall may seem daunting, brands are finding ways to adapt. “The most accurate way to gauge Web performance is to measure as close to actual end users as possible, which helps filter out extraneous noise and really pinpoint the source of issues,” Daoudi said.



image credit: gucci

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