On Dec 2, Gucci, an Italian luxury brand, announced a strategic partnership agreement with Tencent to further explore the smart retail.
Digital trends for luxury brands
Since last year, WeChat users have increasingly received advertisings from luxury brands on their WeChat moments. WeChat, with more than 300 million daily active users, is becoming a new battleground for brand marketing. WeChat mini program can provide brands with both long-term online boutique and a perfect fit for the short-term activities of pop-up stores.
Its fast, no-burden and up-close characteristics are favored by various luxury brands. During the period of May 20, Tiffany launched limited edition products through the WeChat mini program, and Dior Chinese valentine’s day series was launched through the WeChat boutique, all of which achieved excellent results.
Social retailing makes brands and consumers closer
For luxury brands, the ultimate goal is to connect online and offline through social platforms, and seamless transformation to all-dimensional social retail. Brands are also making efforts in this direction. Strategic cooperation between Gucci and Tencent is a new touchpoint of social retail.
Marco Bizzarri, the President and CEO of Gucci, said, ” Innovative technologies make the digital landscape more complex, but also offer great possibilities for deeper, more personalized and customized brand community experiences. This cooperation is designed to create a situation where both sides can fully grasp this pioneer.”
Liu ChiPing, the President of Tencent, said that in this cooperation, the two sides will jointly create an outstanding experience for the audience and deliver Gucci’s fashion concept and its contemporary aesthetics to Chinese consumers. In the future, Gucci may launch social retail stores similar to Burberry’s, or other new digital retail models.
The core channel influencing Chinese luxury consumers‘ purchasing decisions is shifting to a highly digital direction, with a 67 percent penetration rate on social media. The concept of social massification and the niche of luxury brands may seem a little different, but in fact, social retail makes the distance between consumers and luxury brands themselves, product experiences and specific communities infinitely shorter.
In the past, luxury brands in China preferred to build a brand image with a sense of distance, but now, they are turning to the image of digital intelligence, trying to seize the new platform, to achieve the transformation from “traffic” to “sales”.
With the support of Tencent’s platform, the digitization of luxury goods may go more smoothly.