Online retailers feel heat from luxury brand makers

China's online retailers are now providing cheaper access to foreign luxury products than ever before. However, some businesses operating in the sector have had to face criticism from the very brands they carry.

Gucci, Swarovski and some other luxury brands recently claimed that several Chinese business-to-customer (B2C) retailers, including the well-known Tmall, 360buy and Dangdang, are not authorized to sell their products online.

"We receive our goods from overseas distributors. All of the luxury items we sell are genuine," said a 360buy customer service representative when asked about the source of their products.

Online retailers have seen booming sales of luxury goods, largely because they sell them for far lower prices than China's brick-and-mortar stores.

A small Swarovski pendant can be purchased on 360buy for 450 yuan (US$71), or 60 percent of the 720 yuan price tag typically seen in stores.

However, these low prices have attracted attention to these companies. Swarovski recently announced it has the right to take legal action against Chinese online retailers if they are found selling its products illegally in China.

"High-end brands are strict and organized in the way they administer their authorization," said an employee of a Shenzhen-based luxury B2C retailer who identified herself as Zhao Ting.

Zhao said few of China's online retailers have received authorization for the direct purchase and sale of luxury goods.

Since prices for luxury goods are often lower in other countries, some Chinese companies obtain merchandise through various "professional purchasing agents." These are people who travel to other countries to purchase the items at a lower cost before bringing them back to China, Zhao said.