Douyin is revolutionizing the fashion landscape in China, merging cutting-edge technology with trendsetting style, and shaping the future of luxury fashion with every swipe and stream
After a slight decline in 2022, China fashion market is expected to continue its leadership role in 2023, bringing the value of its market to 580 billion CNY, with an impressive growth rate of 18%.
As part of an in-depth study of the lucrative luxury market in China, Douyin E-commerce, fashionChinaagency gives its Insights for you
China, an Essential Market for Fashion Brands In the post-pandemic era, the global luxury market is experiencing a new phase of growth.
Deloitte forecasts that the global luxury industry will maintain an annual growth rate of 9% in 2023, reaching a market value of 2.3 trillion CNY.
Focusing on China, Deloitte forecasts an 8% annual growth rate for China’s luxury market in 2023, resulting in a market value of 580 billion CNY. China is also expected to play an increasingly important role on the global stage, with a market share projected to reach 25% in 2023 and an impressive 40% by 2030. This trajectory is expected to position China as the largest market for luxury goods globally, surpassing Europe and the Americas.
Douyin Fashion Gravitational Center
Following global market trends, China is experiencing robust growth in segments such as fashion jewelry, watches, eyewear and bags & suitcases, thanks to their investment potential and the traditional consumption driver of self-indulgence. With luxury items becoming more accessible, consumers are also showing an increased interest in maximizing the utility of their luxury purchases in their daily routines.
Fashion brands offering qualities such as scarcity and investment potential, along with the ability to consistently offer rich and unique experiences, are thus well-placed to continue capturing strong consumer demand.
Consumer Confidence Remains Strong in Fashion in China
- Chinese consumers exhibit a nuanced perspective towards luxury goods, but the overall perception of luxury consumption remains cautiously optimistic, with high- and medium-spending consumers showing stronger confidence.
- Those in the medium and high spending brackets are generally more inclined to purchase luxury items, especially categories that maintain and preserve their value, such as watches.
- Conversely, consumers with lower spending tendencies tend to adopt a more conservative approach, becoming increasingly price-conscious in their choices.
In the future, high-spending consumers in China are expected to maintain their level of spending, while paying more attention to the product and the overall shopping experience. Medium-spending consumers, meanwhile, will look to upgrade the brands they shop at and to increase spending on more value-added categories such as watches. Finally, lighter spending consumers are expected to reduce their spending on luxury goods, while becoming more sensitive to price.
Four Unmissable Trends Shaping China’s Luxury Market in 2023 The luxury market in China is undergoing
Douyin & Fashion : Marketing Top trends 2024
New Content Formats Create a Buzz on Douyin Beyond short videos and live streaming, luxury brands are engaging with users through a variety of interactive marketing tools on Douyin. These include live fashion shows, online check-ins, and cutting-edge interactive technologies.
Fashion Shows Douyin effectively generates online buzz and maximizes exposure for global fashion shows using pre-event, in-event, and post-event marketing tools. These tools encompass reservation links for shows, live streams, and hashtags. From January to June 2023, Douyin featured 28 luxury fashion shows, including high-profile names like FENDI, PRADA, GUCCI, SAINT LAURENT, DIOR, LOUIS VUITTON, BVLGARI, Cartier, and Shanghai Fashion Week.
Online Show Douyin is spearheading a new lifestyle trend where exploring art venues and other attractions has become a popular habit. In the past year, there were over 20 million online check-ins for museums and exhibitions, while tourist spots like hot springs, camping grounds, and sightseeing areas garnered more than 15 million check-ins.
AR & VR Technologies On Douyin, brands are increasingly adopting augmented reality (AR) and virtual reality (VR) interactive technologies to communicate with users, overcoming time and spatial constraints to reach a broader range of next-generation users. Utilizing Douyin’s PICO VR glasses, brands like Heineken are connecting with users in the virtual world, creating new brand experiences, as demonstrated during Heineken’s 2023 EDM music festival. Prada also leveraged Douyin’s AR technology to introduce an AR try-on feature at its official Douyin flagship store during the 2022 Qixi Festival.
Exponential Growth for Luxury Brands on Douyin E-Commerce The landscape of online shopping has undergone a significant transformation from the traditional keyword-based search and static product listings. Social apps like Douyin now prioritize creating relevance and proactively meeting individual user needs based on interest. source
Best sellers brands on Douyin
On Douyin, user interactions, from watch-time duration to content creation and product purchases, accumulate and enable brands to target users based on proven interest. Douyin matches content and user behavior with high accuracy, providing a platform for interest-based shopping. This approach gives brands a stage to create relevant product offers, sales events, and marketing strategies to reach and convert their target customers into long-term clients.
KOL helps to promote Fashion Brands in China
Additionally, Douyin users show an increased inclination to search for products after exposure to content, including seeking out official brand stores on Douyin and joining luxury-themed communities on the platform. These serve as vital hubs for searching, learning, and exchanging insights about fashion products.
Festival promotions on Douyin have also proved pivotal in driving luxury sales, demonstrating the impact of strategic marketing during key festival periods
Conclusion: Douyin’s innovative approach in presenting luxury fashion and lifestyle content is reshaping the fashion landscape in China. By leveraging new technologies and interactive content, Douyin is not just a social media platform; it’s a trendsetter in the fashion industry, influencing both consumer behavior and the marketing strategies of luxury brands.
The rapid evolution of Douyin as a preferred platform for luxury brands is a testament to a new era in digital marketing. With its interactive content formats, augmented and virtual reality capabilities, and user-interest-driven approach, Douyin is redefining how luxury brands engage with their audience. The success on this platform underscores the importance of a tailored and dynamic digital strategy, essential for capturing the attention of a young, tech-savvy clientele in China.
In this ever-changing digital landscape, it’s crucial for brands to collaborate with partners who not only understand the intricacies of the Douyin platform but also the cultural and behavioral nuances of the Chinese market. This is where Gentlemen Marketing Agency (GMA) comes into play.
Gentlemen Marketing Agency (GMA):
GMA is a digital marketing agency specializing in assisting international brands to penetrate and grow in the Chinese market. With deep expertise in platforms like Douyin, GMA offers a range of services tailored to the specific needs of brands within the Chinese digital ecosystem.
Business Scope of GMA:
- Digital Strategy: GMA helps brands develop targeted digital strategies to optimize their presence on Douyin and other popular platforms in China.
- Video Marketing: Creating engaging content tailored to the trends of Douyin to maximize user reach and engagement.
- Influencer Marketing: Collaborating with influencers and celebrities on Douyin to increase brand visibility and credibility.
- Advertising and Promotion: Employing innovative advertising techniques to draw attention to brand products and offers.
- Analysis and Optimization: Monitoring performance and adjusting strategies to ensure the best possible results.
In conclusion, partnering with an agency like GMA can offer luxury brands a significant advantage in harnessing the power of Douyin, enabling them to effectively connect with their target audience in a complex and competitive Chinese market.