In China, leather goods are the quintessence of luxury with fashion. In 2021, the luxury leather goods market should reach 8.2 billion USD with an annual growth rate of 7%. Yes, leather goods are trendy. But what about wallets in particular? When we talk about a wallet brand in China, the market is very specific and different from what we know in the West. Chinese people mainly use digital payment, they do not need a wallet as we need in the West.
Learn more about the consumer behavior in China and how to market effectively your wallet brand:
- Understand the Chinese consumer behavior for wallets brands
- Create your own Chinese website and improve your Baidu SEO
- Go digital through e-commerce platforms
- Create WeChat & Weibo official accounts
- Promote your brand with KOLs and KOCs
- Seduce Chinese consumers with PR
A Wallet is a Precious Item for Chinese Consumers
A wallet is not a common purchase in China. You should understand that in China everyone pays with his phone by using WeChat Pay or Alipay. In 2021, there are 1 billion mobile phone users in China. In a word, almost every Chinese has a telephone. Even in the countryside, people pay and purchase with their phones. So, when a Chinese will buy a wallet it is not a need it is a desire to show off.
According to Chinese tradition, a wallet is a symbolic accessory. It is the first step towards a successful career. They want to show they have money and they can purchase expensive wallets. Especially, they need to fill the wallet with cash instead of credit cards to show they have abundant money. Chinese will always throw away old credit cards or receipts because it a symbol of debt.
What about secondhand wallets in China? Even if secondhand is becoming a new trend among fashion and bag lovers, it is not the case for wallets. A Chinese belief states that you could inherit from the luck of your predecessor. So, if he did not have a lot of money, you will be broke too.
The Importance of Wallet Design in China
In China, design is very important for Chinese consumers. They are very sensitive to a premium brand image and an elegant design. If you are a wallet brand, you will be relatively free regarding the material. But if you want to perform in China, you will need to make cautious choices about the colors.
What are the main symbols behind each color for your wallet design?
Black = Success, business, career advancement
Red = Burning cash, broke person
Blue = Symbol of water, money flooding
In China, the key to business is word-of-mouth. If your design is appreciated by local consumers they will post a lot of positive comments on the Chinese internet and you will be assured to face great success!
The 4 Most Important Steps to Market your Wallet Brand in China
Chinese Website – A Must Have to Be Visible in China
For any brand that plans to perform in China, a Chinese website is mandatory. This is the first thing Chinese consumers will search, whether you exist on the Internet with a dedicated website. If you do not have a Chinese website, you will not be able to share content and you will not exist in the eyes of the Chinese consumer.
What about your existing website with traduction in Chinese? Sorry, but it will not work… An international website with an option to be translated in Chinese has no visibility in China. If you want to exist on the market you need to have a Chinese website on a Chinese hosting written in traditional Chinese. After that, you need to give visibility to your website thanks to a strong SEO strategy.
Gain Visibility with Baidu SEO
Baidu is a search engine often compared to the Chinese Google. The first reflex of Chinese consumers is to search on Baidu for brands websites. What if you have a beautiful Chinese website but a bad SEO? Well, Chinese consumers will not be able to find you.
The Search Engine Optimization (SEO) on Baidu will help you to gain visibility and attract new consumers. It is always better to have a Chinese team dedicated to this specific type of project who will know the better keywords to rank on Baidu. The wallet market is a very niche market, and you need to know what Chinese consumers will type on Baidu to better target them. Then, you will have to create positive comments and post on Q&A and forums to increase your e-reputation and your brand awareness.
Social Media – Build your E-reputation in China
In China, word-of-mouth is very important for your e-reputation. You can have a bad buzz if you have negative comments or reviews on forums or social media. In order to avoid this bad experience, you will need to work on your reputation online by posting positive comments, create Professional Generated Content (PGC), motivate User Generated Content (UGC), build product reviews, and engage with your community.
To do so, Weibo and Little Red Book are the 2 best social media for your wallet brand in China. On Weibo, you will build your brand image by posting qualitative content like photographs or videos of your campaigns. This is a great social media to maximize your exposure and grow your community. On Little Red Book, you will target fashion lovers and engage with your community by sharing fans’ posts. The combination of these two social media platforms will give a strong aura to your wallet brand among Chinese consumers.
PR – Seduce Chinese Leather Goods Consumers
From press releases to press conferences, PR will help you getting recognition from experts in China. Public Relations (PR) are very important in China because they will help your brand to build trust among Chinese consumers. In China, people do not trust international brands they do not know. They will be very cautious about their purchase and will look for feedbacks and reviews. If you obtain exposure in famous magazines or KOLs interviews, you will attract more easily Chinese consumers.
In a word, sales and reputation are linked in China. If you have a bad reputation or no reputation at all, you will not sell in China. If you are a wallet brand with a small or nonexistent presence in China, you need to rely on a local agency. You will benefit from a list of famous KOLs and journalists, which are a reference for leather goods in China. A local agency will also take care of the interviews’ booking.
Increase your Brand Awareness with KOLs and KOCs
In China, public relations concern both the press and influencers. The Key Opinion Leaders (KOL) and Key Opinion Consumers (KOC) are key to reach a wide community and obtain a strong conversion rate. Especially for leather goods, Mr. Bags is the most famous KOL who could engage with his community in seconds. For instance, a Burberry bag was sold out in only 10 minutes after Mr. bags mentioned it.
You can follow the same strategy to market your wallet in China. If you find the right KOL with a community that shares your values, you can have a strong engagement and conversion rate. Especially for leather goods, Chinese consumers are very sensitive to feedback. So, you will need to share as much information as possible with the Chinese influencers so they can describe your product to their community. Obviously, it is preferable to speak Chinese and understand the KOL partnerships in China to have a higher ROI.
E-Commerce – Generate Sales Among Luxury Chinese Consumers
Chinese consumers have a great appetite for international brands and e-commerce platforms are the more convenient way for them to purchase your product. If you have a luxury wallet brand, you can feel unconfident with e-commerce platforms. Thus, 70% of luxury Chinese consumers prefer to purchase online. On e-commerce websites like Tmall or JD.com, you can reach a massive user database and a large distribution channel.
What e-commerce platform should you choose for your wallet brand? Maybe you have already heard about Tmall or Taobao. They are the most important e-commerce platforms in China for international brands. Regarding the image of wallets in China, you should better join Tmall rather than Taobao. You will reach a more qualified audience for your products and have a more premium brand image.
And if you are concerned about your brand image for your premium or luxury wallet brand, you can even decide to join Tmall Luxury Pavilion.
Preserve your Brand Image with Tmall Luxury Pavilion
The Tmall Luxury Pavilion is the best service to maintain a premium image while doing e-commerce. In a word, you have 100% control of your products, your communication, and your merchandising. Since Covid-19, there are 200+ luxury brands available on Tmall Luxury Pavilion. They decided to join the Luxury Pavilion to maximize their sales while improving the online customer experience.
The leather goods brands are among the most performant brands. For instance, Bottega Veneta was one of the first brands to have joined the Luxury Pavilion. The brand decided to promote its heritage and its know-how. In order to seduce the Chinese luxury shoppers, Bottega Veneta decided to offer its full products range from wallets to fashion and perfumes. This is a great business opportunity for your wallet brand to engage with your customers with a luxury digital experience and increase your sales.
Where Should you Start for your Leather Goods Brand?
If you do not know where to start, you should rely on a local agency. The Gentlemen Marketing Agency is based in Shanghai, China. We are specialized in digital marketing with different services like lead generation, e-commerce, and branding. Since 2012, we help international brands to enter and perform on the Chinese market. You can contact us to understand the potential opportunities for your next project in China.