Luxury on WeChat : The keys to succeed in 2018
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Today, China leads the world in technical innovation and WeChat is its most iconic ambassador.
With more than 900 million daily active users (as of September 2017) and close to 40 billion messages exchanged daily, WeChat is now more than ever the daily life tool for Chinese netizens.
On the business front, Chinese consumers represent +32% of all luxury goods sold worldwide, with Chinese travelers accounting for an increasing share, and WeChat represents the perfect tool to connect with these consumers. Today’s leading luxury brands have anchored WeChat at the center of their O2O strategy in China, operating on three main pillars: Social, CRM/Data, and E-Commerce.
On the social front, luxury brands strongly improved their digital creativity (HTML5, Canvas, Gaming, VR, Mini Program, etc.) and combined social campaigns with KOL engagement and significant media buying investment to increase impact. In 2017, we saw a clear shift away from traditional media spending in favor of digital media where the ROI is more immediate and transparent.
Furthermore, luxury fashion brands have taken a page from FMCG brands and begun to implement CRM integration, message segmentation and advanced user tagging based on social behavior and consumption data. Some of them have gone a step further and developed WeChat loyalty programs aimed to increase user engagement and drive repetitive spending.
Finally, 2017 witnessed the rise of 3rd party luxury platforms (Luxury Pavillon, Toplife, Viplux, Secoo), coupled with the emergence of the WeChat mini program and an increased investment by brands into their own .CN websites.
WeChat provides the perfect ecosystem for luxury brands to court the Chinese consumer, from immersive branding campaigns to boutique appointment systems and integrated WeChat e-commerce.
Questions & Answers
Q.What are the core strategies luxury brands use on WeChat to engage Chinese consumers?
What are the core strategies luxury brands use on WeChat to engage Chinese consumers?
Leading luxury brands centre their O2O strategy in China around three main pillars: Social, CRM/Data, and E-Commerce. These strategies aim to connect with the significant number of Chinese consumers purchasing luxury goods globally.
Q.How did luxury brands adapt their media spending strategies in 2017?
How did luxury brands adapt their media spending strategies in 2017?
In 2017, luxury brands clearly shifted their investment away from traditional media towards digital media. This change was driven by the more immediate and transparent return on investment offered by digital platforms.
Q.What advancements have luxury brands made in customer relationship management (CRM) on WeChat?
What advancements have luxury brands made in customer relationship management (CRM) on WeChat?
Luxury fashion brands have started implementing CRM integration, message segmentation, and advanced user tagging based on social behaviour and consumption data. Some have also developed WeChat loyalty programmes to boost engagement and repeat purchases.
Q.What new developments emerged in the e-commerce landscape for luxury goods on WeChat in 2017?
What new developments emerged in the e-commerce landscape for luxury goods on WeChat in 2017?
2017 saw the rise of third-party luxury platforms like Luxury Pavillon and Toplife, alongside the emergence of WeChat mini programs. Brands also increased investment in their own .CN websites, contributing to a diverse e-commerce ecosystem.
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