HONG KONG SAR – Media OutReach – September 26, 2023 – Ocean Engine, Douyin E-commerce and Ocean Insights, in collaboration with Deloitte China, have published their first white paper on the luxury market in China.
Douyin Luxury Gravitational Center – Douyin Luxury Industry White Paper 2023 provides businesses with valuable industry insights, marketing inspiration and e-commerce strategies through an in-depth look at the Chinese luxury market and Chinese consumer behavior, as well as analysis of Douyin’s key strengths and successful case studies.
Summarizing the success stories of luxury brands in the Douyin ecosystem, the white paper highlights their different stages of development in the Chinese market to help them achieve sustainable future growth on Douyin.
After a decline in 2022, Deloitte forecasts that China’s luxury market will reach RMB 580 billion this year, or 25% of the global total. Furthermore, China’s market share is expected to reach 40% by 2030, surpassing Europe and the Americas to become the world’s largest single market.
This will be driven by the continued consumption drive of high-net-worth individuals, the new incremental volume brought by the post-90s generation, expanded reach via online channels and optimization of pricing, products and marketing by brands. Jewelry, watches and bags are the fastest growing segments due to their investment potential and asset preservation, rarity of their brand elements and their design and versatility.
Tianbing Zhang, Deloitte Consumer Products and Retail Sector Leader for Asia Pacificstates: “In 2023, China’s luxury sector is on the path to robust recovery, strengthening its position as a critical market in the global brand landscape. Our analysis points to a maturing Chinese consumer base, where luxury items are increasingly viewed not just as mere social capital, but as assets for personal enjoyment and long-term investment. In terms of channels, the accelerated digital transformation of the luxury market in China has made online platforms essential touchpoints throughout the consumer journey. Looking ahead, the future competitive advantage of brands will be based on the deployment of diverse and innovative content strategies.
Multiple touchpoints, rich content and a complete value chain in China’s digital landscape are building a distinctive local luxury ecosystem. Chinese luxury consumers are turning to more diverse online platforms, with 53% purchasing through online channels, including official brand websites (48%), official flagship e-commerce stores (43%), content platforms (39%) and luxury e-commerce sites. -commerce platforms (26%).
Online content platforms have become an integral part of the luxury consumer journey, with 34% of consumers believing that short video descriptions of products are more detailed and 28% saying that short videos have richer content. Besides product reviews and unboxing, Chinese consumers also want to understand the story of a brand. Short videos and live streams are the best mediums for this authentic content with stories, surprises and fun. Through its distinctive content creation and distribution system, Douyin has amplified the voice of the luxury industry within its ecosystem.
Xueqin Wang, Vice President of Ocean Engine Consumer Goods Business Centeradds: “In recent years, the digitalization of the global luxury market has been transformative, fundamentally changing consumer behavior within an increasingly digital content ecosystem. Short-format video, a vital content medium, is gradually anchored in the culture of consumer interest and purchasing decisions. -making. Douyin, a leading short video platform in China, sets new standards in online marketing effectiveness through data-driven insights, key performance metrics and strategic optimization. In collaboration with Ocean Engine, a comprehensive data and content platform, and Deloitte, we provide a tailored approach for luxury brands to accurately identify their optimal commerce channels and consumer touchpoints. This strategic alignment serves to strengthen market sustainability in China.
According to the white paper, Chinese consumers rank ease of daily wear (49%), personal satisfaction (47%) and fashionable design (35%) as the top three considerations when purchasing clothing products. luxury. Douyin E-commerce recorded exponential growth in gross merchandise value (GMV) and paying users and merchants during the first half of 2023, with GMV increasing even more during festivals and shopping seasons like the Qixi Festival and the Valentine’s Day, highlighting the effectiveness of emotional marketing.
Qing Mu, vice president of Douyin E-Commercesaid: “Douyin E-commerce has evolved from interest e-commerce to omni-channel interest e-commerce. By skillfully merging compelling content that piques shoppers’ interest with a well-designed product shelf that meets active consumer needs. Douyin offers a holistic approach. to the consumer journey, paving the way for significant growth opportunities. Over the past two years, many brands have ventured into Douyin’s ecosystem, rigorously testing and validating its business models. Using a well-curated mix of high-quality content, superior service and officially authenticated products, these brands effectively satisfy the diverse consumption patterns of Douyin’s user base. This creates a streamlined end-to-end consumer experience, from brand engagement to transaction conversion. The synergy between luxury brands and Douyin E-commerce promises a future filled with potential.”
Webin Lin,
ocean engine business analysis manageradds: “Since the first half of 2023, Douyin has served as a central channel in China’s luxury narrative, captivating an impressive 150 million users with keen interest in premium products. Notably, 73% of China’s luxury consumer base is actively engaged. with Douyin, a statistic unmatched by any other platform in terms of reach, brand engagement and conversion rate. As we move forward, we look forward to collaborating with brands to effectively communicate the nuanced attributes of luxury – elegance, intelligence and heritage – across the expanded reach of Douyin.
Crystal Wang, Deloitte China Consumer Products and Retail Sector Financial Advisory Leaderconcludes: “As Chinese luxury consumers’ mindset and channel preferences continue to evolve, the key to success lies in excellence at every touchpoint by understanding their deeper needs in products, content and services. »
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