The past period of 2020 was a challenging year for luxury. Luxury brands had to embrace technology and reinvent themselves. For instance, on WeChat, Xiaohongshu, Weibo, Douyin, and Tmall, luxury brands embraced creativity and newness. Today, 200 luxury brands are available on Tmall Luxury Pavilion. Many of them joined this year because of the Covid-19 crisis to maximize their sales and visibility. Discover why your luxury brand must be on Tmall Luxury Pavilion too!
#1 Engage with Chinese Consumers with a Qualitative Experience
In China, Tmall is one of the most visited e-commerce platforms. On average, users spend 27 minutes per day on Tmall, compared to 10 minutes on Google. And what is their main intention there? Buying.
The Alibaba platform decided to offer a more premium experience for luxury lovers. The Tmall Luxury Pavilion is “an app within an app”, which means you can have direct access to the Luxury Pavilion. You? Well, not exactly. Only a happy few can access the pavilion thanks to the invitation system. In a word, Tmall targets only Chinese shoppers who share an interest in luxury brands combined with a high income. Tmall Luxury Pavilion is the best opportunity for luxury brands because e-commerce and digital are always combined in China. This year, Cartier decided to stay on track with the launch of an online flagship on Tmall Luxury Pavilion.
Thanks to this inclusive system, you can offer your clients a unique experience. As Valentino mentioned, it is the best way to engage with Chinese consumers by bringing heritage, experience, products, and values to them. They will understand better your brand and deep dive into your universe.
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#2 Luxury Brands in China should Combine Online and Offline
In China, consumers expect a personalized and digital-driven service from brands. Their purchasing path must be both composed of online and offline elements. This explains the recent development and success of phygital stores in China.
Why Tmall Luxury Pavilion is that important? Because the Chinese spend 6 hours per day on their phone. Social media and e-commerce platforms have a huge impact on the consumer journey. Today, 50% of consumers are discovering new items through social media. They have no problem being guided through purchase. For 55% of luxury shoppers, they would be ok to buy something if recommended by an AI service regarding their previous purchase or recommended if it goes well with something they already wear.
The Luxury Pavilion is going a step further with the recent collaboration TMALL x K11 SHANGHAI. For your information, K11 is a popular luxury mall located in the center of Shanghai. Many luxury brands have a shop there like Cartier or Chloé. Tmall Luxury Pavilion worked on the convergence of offline and online experience by offering a Brand Experience Center. Popup activations are exclusive to the venue of luxury brands. Until now, this popup hosted a street culture exhibition, live brand performances, and immersive digital experiences.
#3 With Tmall Luxury Pavilion, Keep the Control over Your Brand
As we mentioned previously, Luxury Pavilion is an “app within an app”. Tmall wanted to provide luxury brands with the same high-end experience offered in physical stores. This is why you will have 100% control over your brand on the Tmall Luxury Pavilion.
The main advantage of the platform is the experience. You will have the freedom to pick the price, the merchandising strategy, and the communication strategy. For the first time, you are not depending on the retailer… you ARE the retailer!
In this case, you should be accompanied by a local agency. For your branding and your e-reputation, you need a team that speaks Chinese and understand the main codes on the platform. You can promote your existing content and campaigns but you need to know how to talk to Chinese luxury shoppers. The most important strategy for Luxury Pavilion is to give users the feeling they have a personalized experience that nobody else in the world has. If they log on to your brand’s official website? Not the same experience. If they follow your social media accounts? Not the same experience. Luxury Pavilion should be a unique place!
#4 Use Tmall Luxury Pavilion to Boost your Exclusive Products Sales
Limited editions and exclusive products are always a success in China. You have certainly already experienced how fast your limited editions can be sold in China, especially with KOLs. In 2017, a Burberry limited edition bag was sold out in less than 10 minutes thanks to Mr. Bag’s promotion on its social media.
You can have the same brand impact with Tmall Luxury Pavilion. The e-commerce platform provides several services from virtual flagships to live streaming. Are you looking for a best practice? Take a look at Piaget!
Piaget used the Tmall Flagship 2.0 experience to launch its Valentine’s Day (Qixi) limited edition. The Possession necklace was promoted through a digital popup. The user entered the digital flagship to discover an interactive version of the necklace. He rotated the necklace on the screen to unlock a short video featuring Chinese actor Liu Haoran promoting this new limited edition. At the end of the campaign, Piaget’s community was multiplied by 9 in China.
The Return on Investment (ROI) is tremendous in China, especially with Tmall Luxury Pavilion. You need to build a proper digital experience with a digital agency. Thanks to this tactic, you can stay up to date with the current Chinese trends: gaming, phygital, unisex collections, etc. Trends are evolving fast in China.
#5 Benefit from the Integrated Livestreaming Experience
You already know the impact of live streaming, right? In China, 613 million people watched at least one live streaming session in 2020. The audience is huge and the sales impacts are crazy. Last year, the live streaming market increased by 28%. The New York Fashion Week understood the impact of such a new tool and decided to live-stream its shows in September 2020 to target Chinese consumers. The fashion shows were available across Youku, Taobao, and Tmall, reaching 900 million people audience worldwide.
Tmall Luxury Pavilion is a key strategy to combine live streaming trends and sales engagement. The ability to purchase is facilitated by the e-commerce platform. If Chinese consumers enjoy the live stream they can directly purchase your product on the platform. The purchasing path is simplified and more convenient. Which means? You will perform better and obtain a higher ROI.
This digital opportunity even reshaped the watch industry. In September 20220, the annual event Watches & Wonders took place in Shanghai through Tmall. By the way, many Richemont brands are already on the Luxury Pavilion like Cartier, Piaget, IWC Schauffhausen, and Jaeger-LeCoultre. For the event, Tmall selected 30 VIP clients to join the virtual trade show to discover the watchmaking. It was a unique opportunity to connect with the Chinese luxury consumers. The watch luxury brands gained visibility, attachment, and engagement.
How to join Tmall Luxury Pavilion?
The process is quite long and complex. First, your brand must already have a certain echo on the Chinese market. If your brand awareness is high enough, you can enter in contact with Tmall Luxury division. Then, you will have to present a common project to the brand and to Tmall with a strategic launch plan. How to do so? Ask us!
Founded by Olivier Vérot and Philip Qian, GMA helps luxury brands performing in China. Until now, we have already worked with Yves Saint Laurent, Les Georgettes, and Vogue. So, we can help you build your launch plan and your project to enter Tmall Luxury Pavilion. We can talk about your project!