Companies need create effective marketing strategies to take advantage of the opportunities in the luxury market in China.
Luxury market in China is still increasing, particularly in the online world.
The growth of luxury consumption in China is caused by a combination of social and economic factors such as the increase of disposable incomes, the imitation of the Western lifestyle and the desire of Chinese consumers to show their status and economic level through the purchase of luxury goods.
The figures speak for themselves: Chinese consumers bought up to 47% of the world’s luxury items in 2013, representing $102 billion.
Over the last years the luxury e-commerce has increased its sales and is expected a growth of US$7 billion by 2015. That’s why companies that already have presence in the Chinese market and new companies which desire take advantage of this profitable industry have developed marketing strategies in order to be successful in the Chinese luxury market.
Baidu Brand Zone:
Baidu Brand Zone is an effective tool to improve the brand presence on the most popular search engine in China. Through Baidu Brand Zone, companies have the chance to personalize their own multimedia zone, that will be displayed in the first position on Baidu result page when users type a specific keyword.
However choosing keywords is a hard job and companies have to bid for them against other companies. The keywords will be exclusive for the company which wins the auction and those keywords will be unusable to other companies.
Baidu Brand Zone allows companies to add pictures, short animations in flash and video on Baidu’s search engine results page and this is a powerful advantage because Baidu doesn’t allow do it to normal websites.
In a nutshell, through Baidu Brand zone, companies have the opportunity to create an attractive space which will help to attract more potential consumers.
KOLs (Key Opinion Leaders):
Including KOLs is an effective strategy for brands to create trust and to influence potential consumers. Key opinion leaders (KOLs) are thought leaders that are seen as trustworthy influence the behavior or decision-making process of consumers.
There are two types of KOL: traditional celebrities such as actors and singer or online personalities such as bloggers.
These personalities have a high presence on social media platforms and a vast number of followers and consumers desiring the products that KOLs are using. Therefore, using a key opinion leader will increase your potential customers.
O2O (Online to Offline):
An online-to-offline (O2O) strategy will improve the sales. Brands must use online techniques to attract customers and drive the traffic to physical stores and transform consumers into sales. For example companies could create QR codes to give information about the company and discounts or coupons to customers for a limited amount of time.
Presence on social networks:
Weibo and Wechat are the most appropriate social media platforms to promote luxury brands. The success key of luxury brands on social networks is the interaction with their followers. The more they talk, the more brand awareness they create.
A storytelling campaign will powerfully affect to Chinese consumers. Through storytelling, companies have the chance to create emotional connections between the consumers and the brand which will increase the number of potential shoppers.
Another essential communication element for luxury brands is a good digital PR strategy. It is imperative keep good relationship with Chinese journalists in order to avoid negative publications about the brand. Nonetheless, journalists are very important to position the brand on the market.
The brand communication must be focused on the social prestige which provides have luxury goods.
The China market is the most desired market by luxury brands due to its increasingly number of consumers, however the most effective way to have presence in China is through online marketing campaigns.
If you are interested to be part of the Chinese market, don’t hesitate to contact us.