In comparison, outlets on Tmall often offer time-limited free shipping and Vancl waives fees starting from purchases costing 99 yuan.

Baum believes this is an e-commerce environment in which Chinese customers have become "spoiled" by the local players being able to deliver faster, cheaper and more locally than any foreign brand.

However, there is a bright side for the more expensive foreign brands because they are more conscious about delivery quality and service. They rely on customers being more willing to pay more for transportation, Groeber said.

"For local players, who are still in their infancy, cost control will outrival service level and quality of delivery. That is the trade-off they have to face," he said.

The other significant element is to create a unique and friendly online environment.

For brands that already possess an established brand reputation in China (such as Zara or H&M), the challenge is easier - because they have already built awareness and esteem - than it is for brands starting from scratch such as Forever 21, Djurovic said.

The most important thing is to focus on how to make the brand's e-commerce experience truly relevant and innovative.

In essence, the challenge is how to avoid being just a "me-too" site with similar services to other local players such as Moonbasa or Vancl. Brands should evolve so that the core idea of the brand is fully expressed in the e-commerce experience.

"For example, one core aspect for a brand such as Zara was the sleek store settings, which were greatly valued bu customers. When looking at Zara's online platform, the "sleekness" concept is reflected through the way items are displayed, the image background, the angle of the photographs and more," said Djurovic.

What also matters is the way retailers interact with shoppers and invest in value-added services, such as offering a souvenir or discount coupon, said Baum. It is often the advantage Chinese businesses possess.

Foreign fashion brands should integrate fast search functions, use intricate promotions and, more importantly, launch China-specific products that are unique to the original sites, said Groeber.

"What we are seeing is the growing tension between an authorized site on Tmall and the company's original site. If merchants can sell certain stuff only through the original channel, there will be less dependency on Tmall in the long run," he said.

The future

Yang Yiqin, 23, a middle school teacher, bought three pairs of trousers during the grand opening of Zara's online store and chose to pick them up at a store near Fudan University.

"When I got there I waited for more than 15 minutes to get my order. Why did they deal with it so slowly, given my order was already in place? I have to say I was a bit disappointed," she said.

While Yang's experience showed Zara can improve its handling of online sales in a smooth manner, it also reflected an emerging trend in China's retailing market - an aspect known as omni-channel sales.

Omni-channel commerce has put the customer in the driver's seat, with the ability to shop anywhere, buy anywhere and receive products in the manner and time of his or her choosing.