The “industry demanding situations” confronted by means of international luxurious manufacturers have intensified, turning into a widely known factor in recent times. In line with the 2024 “Luxurious Items International Marketplace Learn about” collectively launched by means of Bain & Corporate and the Italian luxurious items producers’ business affiliation, Altagamma, the worldwide luxurious marketplace is projected to say no by means of 1% to three% within the first quarter of 2024. Maximum regional markets are experiencing a slowdown in expansion, prompting primary luxurious manufacturers to regulate their industry methods by means of elevating costs, exploring new alternatives, and reworking their approaches. The business is at a pivotal level of divergent building.
Amid this drive, luxurious manufacturers face 3 primary advertising and marketing demanding situations: How can they appropriately determine the objective target audience and acquire actual insights into their wishes? The way to successfully keep up a correspondence with customers and begin connections briefly? How can they assess the effectiveness of on-line and offline omnichannel advertising and marketing? Alternatives are frequently provide after demanding situations. Within the first part of 2024, the GMV (Gross Products Worth) of luxurious items on Douyin surged by means of over 45%, highlighting Douyin’s emergence as a the most important industry platform for luxurious manufacturers. On the other hand, luck is dependent upon whether or not manufacturers can leverage Douyin’s alternatives and successfully deal with those demanding situations.
To assist luxurious manufacturers resolving the stalemate, Ocean Engine hosted the “Spark Creativity, Unending Exploration—2024 Douyin Luxurious Business Summit” on August twentieth. The summit showcased Douyin’s complete answers for luxurious manufacturers, overlaying sides from actual target audience focused on and medical content material manufacturing to full-chain model metrics. Those answers are designed to assist luxurious manufacturers connect to rising client wishes, seize new advertising and marketing tendencies, and boost up the enhancement of omnichannel reviews.
Segmenting Luxurious Audiences In response to Eventualities: Serving to Manufacturers Exactly Determine Their Superb Target market
Douyin, with over 600 million DAUs, includes a various ecosystem of creators and a big, cross-generational target audience with important intake attainable. The problem for luxurious manufacturers is to appropriately determine goal audiences with top financial standing, cultural sophistication, and insist for high quality from the huge quantity of crowd information. This is without doubt one of the fundamental problems in luxurious advertising and marketing these days.
In 2024, Ocean Engine Yun Tu presented greater than 2.3 million target audience profiles. Development at the basis of focused on core, attainable, and interest-based luxurious customers, it permits actual segmentation of audiences in more than a few eventualities, serving to luxurious manufacturers unexpectedly goal their preferrred buyer base and reach environment friendly conversation and conversion.
Your next step after figuring out preferrred audiences is to retain customers. In line with business information, GENZ (born between 1995 and 2009) is predicted to give a contribution 100% of the incremental expansion in China’s luxurious marketplace. They’re certainly the objective target audience that luxurious manufacturers are desperate to retain. GENZ customers have hastily converting behavioural conduct and personal tastes, and so they call for upper content material high quality all through fragmented time classes. This necessitates luxurious manufacturers to interact them with regularly leading edge content material codecs.
Douyin is the premier platform for varied content material codecs, together with trending parties, widespread content material, micro-series, brief dramas, interactive creativity, and extra. It additionally gives complex technological gear to bridge the distance with customers, similar to actual facial reputation, upgraded AR/VR, and correct tactile simulations. This permits manufacturers to successfully have interaction and nurture their audience, facilitating speedy connection and retention.
From Logo Content material to Social Eventualities: ‘OPUGC’ Unlocks New Horizons for Luxurious Advertising
Luxurious manufacturers are persistently producing buzz, with types like Miu Miu ladies and highbrow style becoming more popular on Douyin. Prime-end manufacturers similar to LVMH, GUCCI, and Cartier are website hosting offline parties like pop-up exhibitions whilst growing on-line “sub-events” to interact with customers. When fine quality model content material aligns with various social eventualities, growing efficient model advertising and marketing environments turns into extra possible.
This 12 months, Douyin’s leading edge “OPUGC” (Occupationally Generated Content material (OGC) – Skilled Generated Content material (PGC) – Person Generated Content material (UGC) ) interplay style has offered new alternatives for luxurious manufacturers in content material advertising and marketing. It deepens connections with customers and transforms into an impactful advertising and marketing scene for luxurious manufacturers. In contrast to conventional built-in advertising and marketing methods, the “OPUGC” content material integration means specializes in content material, bettering its worth via affect, protection, and authenticity to pressure client engagement and model conversion.
Particularly, Douyin supplies the IP to create distinctive luxurious advertising and marketing answers, bettering model worth with IP momentum and producing authoritative OGC content material. That is then related with influencers from the rage, artwork, tradition, and sports activities sectors, the use of codecs and strategies like subject demanding situations and AICG to provide enticing PGC content material. This means boosts the posh model’s publicity, reaches the core target audience exactly, and deepens model reputation. Numerous customers, influenced by means of the OGC and PGC content material, spontaneously percentage unique UGC content material on Douyin, reaching triple protection of brand name affect, succeed in, and recognition.
In apply, the worth of content material depends on collaboration with the platform’s ecosystem. Douyin’s “DOU Content material Lab” complements content material originality, with a devoted manufacturing group acquainted with the platform’s customers, providing custom designed on-site content material concepts for international luxurious parties, and leveraging the platform’s IP to maximise model content material worth.
Within the first quarter of 2024, GUCCI collaborated with Douyin to release the 2024 Spring/Summer time color vogue—Ancora Pink. GUCCI offered Ancora Pink via authentic Douyin content material and engaged a celeb community to generate buzz with the hashtag #AncoraRedSpreadingThroughoutTheEntertainmentIndustry. Through leveraging influencers from more than a few fields who visited Ancora Pink areas each on-line and offline, the marketing campaign sparked spontaneous interactions from the general public. The #AncoraRedCelebrityCityPhotoShootChallenge regularly generated a wealth of authentic and spinoff content material, leading to a intently built-in on-line and offline model trend-setting match.
At Dior Type Week, the “DOU Content material Lab (DOU来内容实验室)” phase “DOU Type Display (DOU来看秀)” marked its global collaboration debut with the emblem by means of offering live-streaming technical enhance. It delivered a way display revel in that customers may just totally immerse themselves in, from the hole of the display to behind the scenes and visitor interviews, all from the relief in their houses. This layout showcased and interpreted the foundation in the back of the emblem’s new season designs in a various method. The panoramic on-line and offline display layout allowed extra customers to revel in the attract of style up shut, bettering the emblem’s international affect.
From Information Integration to Medical Size: Upgrading Omnichannel Trade Alternatives via On-line and Offline Synergy
Along with target audience insights and content material advertising and marketing, the synergy between Douyin e-commerce and Douyin Native Products and services—each on-line and offline—has introduced new omnichannel industry alternatives for luxurious manufacturers. Moreover, Ocean Engine gives key medical gear for verifying omnichannel advertising and marketing effectiveness via a holistic means, serving to luxurious manufacturers clutch new alternatives.
Information displays that the speedy expansion of the Douyin Native Products and services platform has turn into a brand new visitors pool for luxurious manufacturers, providing recent audiences, content material, and reviews. Moreover, Douyin’s integration of product hyperlinks and knowledge has accomplished synergy between on-line and offline industry eventualities.
With CRM integration, manufacturers can pressure recent visitors by means of attracting new offline participants via on-line channels. Seamless integration of the product pipeline lets in the emblem to reach a complete cycle from person focused on and actual guided interactions to compelling retailer visitors. This creates a complete luxurious buying groceries revel in for customers, providing the entirety from new product supply and bodily shows to appointment services and products, whilst exploring extra industry alternatives throughout each on-line and offline.
This 12 months, to assist manufacturers reach extra environment friendly omnichannel industry expansion, Ocean Engine Yun Tu has upgraded its “rational” verification functions to surround all of the advertising and marketing ecosystem. It comprises complete metrics for model efficiency and SPU5A, providing holistic target audience research and integrating dimension signs throughout all content material, touchpoints, information, and channels to enhance strategic advertising and marketing choices.
From an “emotional” standpoint, the platform has advanced a metrics framework to guage model symbol, extending to the alignment between model positioning and client belief. Manufacturers can acquire a multi-dimensional, in-depth figuring out in their model symbol via metrics similar to model affiliation, point out quantity, recognition, and desire, guiding the buildup of long-term model fairness.
Through leveraging the synergy between on-line and offline functions, along side Ocean Engine Yun Tu’s model symbol metrics framework and integrating brand-specific target audience information with potency monitoring from third-party platforms, luxurious manufacturers on Douyin can reach actual front-end advertising and marketing and cut back acquisition prices. They may be able to additionally validate complete industry effects throughout all of the chain, regularly refining advertising and marketing methods and exploring further omnichannel industry alternatives each on-line and offline.
Conclusion
Specializing in state of the art tendencies within the luxurious items business and long run expansion alternatives, the Douyin platform leverages its tough content material advertising and marketing functions and complete information generation to regularly optimize its advertising and marketing ecosystem and gear. It’s dedicated to bettering the advent, incubation, and building of fine quality content material and dealing with manufacturers to discover new answers for advertising and marketing demanding situations.
