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Wechat: the New weapon of Luxury Brands

Last modified: January 15, 2018

Luxury Brand in China

The sales of Longchamp limited edition bags have worked well on weChat, and there is no reason why this does not work for other luxury products, WeChat effectively contributes to the increase in sales in the Chinese market.

Wechat story

China’s Tencent, which is a Chinese company based in Shenzhen, is ambitious about the fashion sector, so it wants to expand its market share on social networks by attracting luxury brands and wants to open its own retail line.

Alibaba story

Alibaba, the famous Chinese e-commerce site that makes sales every second around the world, has something to worry about, knowing that it can still reach $ 870 billion, ( 6 trillion Yuan), exceeding E bay and Amazon by far with more than 547 billion dollars in transactions during the 2017 financial year, but when Tencent decides to embark on the luxury sector, the challenge is huge between the two Chinese internet giants!

Passing classic business, social media payments and e-commerce activities is a pretty fabulous adventure, but not when you have rivals…


The luxury brands are currently suffering in China since the consumption trend of Chinese has changed significantly, they believe that luxury is dedicated to the old, so they tend to premium brands.

 Adopt the Right Strategy

Luxury brands should, therefore, change strategies and migrate to digital and try to find a place on the web, even if sales are still fluid when buying online.

Compared to the US, which sells only a few luxury online brands, China has benefited from the excessive digitization of its market, namely WeChat, which is the application most used by the Chinese, whether to make their purchases the most basic or to pay their bills.

Luxury in China is Booming

It will, therefore, be necessary to convert your physical presence into a digital presence by trying for example to create your own store on WeChat, to follow the trend of current consumption of Chinese people.

The luxury industry is a delicate industry that needs a well-focused strategy, because a luxury product is still expensive, and do not lie to yourself and think that a Chinese will spend so much money for the industry a virtual product on WeChat!

Opportunities in China

We can say that Tencent takes advantage of this opportunity, wish consists on promoting these products, put them more in value through the allocation of a store on WeChat dedicated to them.

As for the payment, the only valid way for Tencent’s is WeChat Pay which is a means of payment among others.

The e-commerce giant is trying to create its own store of virtual luxury products for years through Mei.com for example, which was able to earn an ROI of $ 100 million.

To buy a luxury product like that of Longchamp, it will be necessary for consumers to be filtered because everyone is connected to WeChat, yes, but everyone is not there to buy a Longchamp bag! The QR code makes it easier for us to meet the needs of those who are really interested in high-end products.


GMA is a digital marketing agency

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1 thought on “Wechat: the New weapon of Luxury Brands”

  1. All of those facts are still very accurate, and even more with mini-program expansion, but brands still underestimate WeChat as a real marketing weapon.

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