Douyin has emerged as a new frontier for luxury brands

As the global economy fluctuates and the post-pandemic era arrives, the luxury goods industry is undergoing unprecedented changes and challenges. According to the “Mid-Year Update of the 2024 Global Luxury Market Study” jointly released by Bain & Company and the Italian luxury goods industry association Altagamma, global luxury market sales are projected to decline by 1% to 3% in the first quarter of 2024, marking a significant slowdown in market growth. Facing this predicament, major luxury brands have adjusted their strategies in search of new growth points.

Against this backdrop, Douyin has emerged as a new frontier for luxury brands, leveraging its vast user base, robust content ecosystem, and efficient marketing tools. In the first half of 2024, the GMV of luxury goods on Douyin surged by over 45% year-on-year, demonstrating the platform’s immense potential in the luxury market.

For luxury brands, accurately targeting their desired audience is crucial for marketing success. Douyin’s daily active user base of over 600 million offers a vast market space for luxury brands. However, the primary challenge lies in precisely identifying target customers with strong economic foundations, high cultural tastes, and premium demands amidst this vast sea of data.

Douyin, with its 2.3 million+ user tags, provides robust data support for luxury brands. Through scenario-based segmentation, such as subcultures, highly educated international students, and overseas travelers, brands can more precisely lock in their target audience for efficient communication and conversion.

In the era where content reigns supreme, crafting high-quality content on Douyin to attract and retain consumers poses another significant challenge for luxury brands. Douyin’s diverse content ecosystem encompasses trending events, fashionable content, micro-series, short dramas, interactive creativity, and more, offering ample creative space for luxury brands.

Douyin’s exclusive network of luxury influencers provides brands with highly engaging content output. Data shows that 86% of Chinese consumers are influenced by influencer recommendations. With over 30 SVIP authoritative creators across various fields, Douyin has become a hub for creators with artistic and cultural backgrounds. Collaborations with these influencers enable brands to create content that better resonates with consumer needs, enhancing brand recognition and influence.

Furthermore, Douyin has launched IP projects like “DOU Content Lab” to tailor premium content specifically suited for the platform. For example, PRADA’s collaboration with “DOU Content Lab” on a film featuring the Chinese Women’s Football Team garnered over 2.4 billion exposures across the internet, showcasing Douyin’s prowess in content creation.

In the digital age, omnichannel integration has become an inevitable trend for luxury brand marketing. By CRM systems, Douyin enables the coordination of online and offline business scenarios. Brands can leverage online entry points to attract new offline members, introducing fresh traffic. Meanwhile, by streamlining product links, brands can offer a comprehensive service chain from user targeting, precise shopping guidance, to in-store traffic redirection, providing consumers with a one-stop luxury shopping experience.

For instance, GUCCI’s “Ancora Rosso” campaign, jointly launched with Douyin, ignited a fashion trend through seamless online-offline integration. The brand introduced the Ancora Rosso concept on its official Douyin account and leveraged a celebrity matrix to create buzz. Simultaneously, interactions among multi-field vertical influencers and grassroots users sparked spontaneous engagement, ultimately boosting the brand’s reputation significantly.

As Douyin continues to deepen its footprint in the luxury industry, more innovative marketing strategies and collaboration models will emerge. Brands can leverage Douyin’s data insights tools to gain a more precise understanding of consumer needs and market trends. Additionally, with Douyin’s rich content ecosystem and robust creator resources, brands can create high-quality content to captivate consumers.

In conclusion, the successful hosting of the 2024 Douyin Luxury Industry Summit has provided invaluable insights and inspiration for luxury brands. In their future endeavors, luxury brands should fully utilize Douyin’s advantageous resources and technological means to achieve precise targeting, content upgrading, and omnichannel integration, collectively driving the sustained development of their brands.

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