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1、CHINA TREND REPORTInsights for Luxury Brands-2023Executive LetterChinas digital-first environment has evolved quickly.Particularly in the last couple of years,we have seen brands implement much more comprehensive customer systems and processes,linking omni-channel resources.As the market has quickly
2、 matured(with increased competition),brands have sought to build better,more well-informed customer relationships.The pressures from Covid have provided space for brands to get themselves ready for the next round(s)of growth and expansion into the worlds largest digital retail market.Looking ahead t
3、o the end of 2023 and into 2024,brands will be scaling ecommerce and customer systems into lower tier cities and with new customer groups such as Gen Z and“Silver”customers.In its annual survey of brands in China,Totem has observed a clear shift over the past few years from efforts being concentrate
4、d around advertising and awareness growth,towards more customer-centric efforts.Customer service,retention and repeat purchase(loyalty)have become key priorities particularly in 2023.LAUREN HALLANANCHINA TRENDS REPORT|2FOR LUXURY BRANDSDIRECTOR,CHINA CONSUMER STRATEGY,STRATEGIC PARTNERSHIPS AT SALES
5、FORCEContentsCHINA TRENDS REPORT|1FOR LUXURY BRANDS04China is leading the world in digital commerce06Key considerations for luxury brands in 2023091:Mastering social commerce132:Video,live-streaming&short video213:Graduating from private traffic to CRM314:WeChat as focus channel for luxury355:Omni-c
6、hannel,re-balancing to offline39Salesforce solutions in ChinaFive focus areas for 2023CHINA TRENDS REPORT|450Chinas share of global ecommerce retail%85Of Chinese use mobile paymentsThe incredible growth of mobile commerce in China is underpinned by 904 million users making mobile payments.%908Social
7、 commerce users in ChinaBetween 2019 and 2022,the number of social commerce users in China has grown by almost 30%.FOR LUXURY BRANDSChina is leading the world in digital commerceChinas largest mobile app,WeChat,counts over a billion users,meaning almost everyone has access to messaging,branded conte
8、nt and mobile payments.The US accounts for approximately 19%of Global GMV.Also,55%of all retail spending in China is online,making digital essential in the worlds largest ecommerce market.mSocial commerce is conducted via social platforms(eg.WeChat)and social/content activities(eg.Live-streaming),an
9、d is fueled by influencers.FOR LUXURY BRANDSChinas media landscape is differentCHINA TRENDS REPORT|5Websites,email and search are coreDigital marketing is organized around direct marketing to a brands owned channels,namely websites.Platforms have dominatedLarge media groups(BATB)have dominated both
10、ecommerce and media in general.China media is highly concentrated.All activities centered around mobileMessaging happens on WeChat,not email.Payments happen via Alipay and WePay,not by credit card.Short-video on Douyin.Legacy media still in the mixTV,print,desktop,credit cards all still play an impo
11、rtant role in the media mix globally.Digital is only a part of a larger story.GLOBALCHINAEMAILMOBILE MESSAGINGWEBSITESMINI-PROGRAMSPRESS/PRINFLUENCERS(KOLS)PLATFORM ECOMMERCEDTC ECOMMERCESOCIALSEARCHMOBILEDESKTOPALIPAY/WECHAT PAYCREDIT CARDSLIVESTREAMINGTELEVISIONSOCIAL INFLUENCERSNICHE MEDIAvsDTC i
12、s STILL emerging in ChinaWith brands using mini-programs and websites to connect more directly with customers and collect data.Deep,rich entertainment optionsAn array of TV,movies and other media serve interests globally.In China,shopping has been the best form of entertainment.(PRINT/BLOGS)(MCNS)CH
13、INA TRENDS REPORT|6Already the worlds number two market for luxury products after the US,China is projected to represent 40-45%of all luxury purchase by 2025,according to Bain(i).For many luxury players,Chinese buyers represent 50%or more of total global revenues.The return of international travel,c
14、oupled with increased domestic activity and confidence,should make 2023 a pivotal year for luxury players.Luxury brands should be prepared for this reopening,organizing customer insights,data and communications to support the return of sales with tightly coordinated domestic-global plans.At the same
15、 time,brands must revisit and update customer insights and CRM solutions,making sure that assumptions about customer groups have kept pace with Chinas quickly evolving environment.For instance,during Covid,there was profound shift in customer attitudes towards luxury,with Chinese buyers now more foc
16、used on intrinsic benefits,experiences and wellbeing.Amid this reopening rush,understanding todays customers is a high priority Key considerations for luxury brands in 2023FOR LUXURY BRANDSFOR LUXURY BRANDSLuxury brands are digital vanguardsLuxury brands have been among the earliest players with new
17、 digital activities in China,as demonstrated in 2022,with notable experiments in the metaverse.The defining questions that luxury brands seek to answer when it comes to new media are:“does the environment and quality of the space live up to the brand?And does the brand have sufficient control over t
18、he user experience,design and feel?”In other words,luxury brands want to ensure that the new media will reflect and enhance their brand image.Given these image concerns many luxury brands have shied away from platforms viewed as messy or nascent,choosing to wait and see how the channel matures.This
19、is the case with BiliBili,where fewer than 5%of the top luxury brands yet have presence.At the same time,luxury brands have been enthusiastic early adopters with AR/VR and live-streaming,where they have been among the first brands to launch large-scale campaigns.CHINA TRENDS REPORT|7More than 34%of
20、luxury sales in China took place online in 2022.DOUYINWEIBOWECHATRED%10060%80%100MINI-PROGRAM%97BILIBILITMALL%43%3.CN%87Mini-programs:WeChat(97%),RED(0),Douyin(10%)Digital footprint of the top 30 luxury brands in ChinaPercentage of top 30 luxury brands present on each platformMini-programs(primarily
21、 on WeChat)are the driving initiative in a growing DTC movementIn 2022:There were 7.5 million Mini-programs across all channels.4.5 million on WeChat.Owned.CN websites in China are growing in usageBut,as ecommerce in China becomes more fragmented(less dominated by Tmall),there will be greater opport
22、unities for.CN strategies.Brand owned sites are still marginal when compared with platform ecommerce in China.Ecommerce,live-stream and content co-created with influencers as priority In 2022 Douyin reported 700million DAU.Its ecommerce GMV increase 76%FIVE FOCUS AREAS2023FORMASTERING SOCIAL COMMERC
23、EFOCUS AREA ONE1CHINA TRENDS REPORT|10Chinas digital ecosystem is built around the concept of social commerce brands using social media channels as e-commerce platforms for products and services.Most of the attention has been grabbed by a few major players,who have created Super Apps,where the lines
24、 between social and ecommerce have been removed.Every app has the goal of getting social attention and turning it into ecommerce activity.What keeps the followers coming back?Influencers,live-streaming,sharing and online payments keep people actively engaged on a daily basis.Chinas“Super Apps”blend
25、social media and ecommerce action.1.Social commerce defines Chinas digital ethosFOR LUXURY BRANDSFOR LUXURY BRANDSCHINA TRENDS REPORT|11Social commerce characteristicsInfluencersLive CommerceMobile PaymentsOmni-ChannelMobile ChatGamified CommerceGroup PurchasingShoppable VideoSocial CRMShort VideoLu
26、xury brands rank among the most progressive digital players in Chinas fast-moving social commerce environment.Luxury brands have been among the first to push into new frontiers such as live-streaming,AR/VR,gamified commerce and the metaverse.Leading investment priorities for luxury brands in 2023 ar
27、e:LUXURY INSIGHTSChinas social commerce landscape is defined by the combination of mobile,social and video features.In this context,shopping is a fully-featured game for consumers,enhanced by livestream video,influencers,chat and incentives like gamified commerce.Brands use influencers and KOCs(key
28、opinion consumers)to rally customer attention and excitement to shopping moments such as festivals and group purchase events.These big moments are supported by incentives that build a sense of urgency.SOCIAL COMMERCE#1SHORT VIDEO#2INFLUENCERS#3#1-Social Commerce#2-Short Video#3-Livestream Video#4-In
29、fluencers#5-Private Trafficvs.Rankings for brands across all categoriesFOR LUXURY BRANDSCHINA TRENDS REPORT|12Social commerce is the digital centre of gravityOver the last few years its become increasingly clear that all digital roads lead towards social commerce.In addition to the huge draw of ente
30、rtainment in the form of influencer livestreaming and content sharing,social commerce is also a good fit for Chinas typically low-trust consumers.Compared to a typical US consumer that engages with 3-4 touchpoints before buying,in China that number is more like 15-20.This makes social commerce an im
31、portant stage for brands to show as much proof as possible to unsure consumers,to help drive validation and confidence in the same space where they can make a transaction.Super Apps use social to build confidence and buzz before buying.Source:1,0002,0003,0004,0002505007501,000200192020202
32、12022Millions of UsersSpend/Customer(RMB)3,8963,6032,9482,8891,9231,4458690879578073,8963,6032,9482,8891,9231,44586Social commerce users&spend(2016-2021)Social commerce has seen huge growth in user base and spendingVIDEO,LIVE-STREAMING&SHORT VIDEOFOCUS AREA TWO2CHINA TRENDS REPORT|14Video
33、 has become the key currency for brand marketers in China.Video-first social channels have surged in popularity over the past several years,often stealing away attention from legacy platforms like WeChat and Weibo.Two formats and several related platforms have moved into the spotlight over the past
34、few years:Live-streaming:Douyin,Kuaishou and Tmall Live Short-Video:Douyin and Kuaishou,together with short-video features on other platforms such as WeChat In response to this,many brands are setting up studios and production teams of their own to deliver video marketing at scale and quality.Other
35、brands are working with influencers to co-create video.Video has the power to create emotional bonds and lasting memories of the brands that produce them.2.Video,live-streaming and short video FOR LUXURY BRANDSFOR LUXURY BRANDSCHINA TRENDS REPORT|15Brands will need to build capacity for video creati
36、onThe success of live-streaming sales has been a catalyst for the wider expansion of video.While live-streaming may be the favored video format for now,there are opportunities for brands to succeed with a range of video formats.In this environment,brands must give due consideration to how to innovat
37、e-iterate with new ideas.The spotlight is currently shining brightly on live-streaming,but we may see the pendulum swing back in favor of higher quality scripted productions.Latching onto the latest trends like live-streaming can be useful,but developing and refining a distinct winning formula or fo
38、rmat is more important.Brands setting up owned video production studios in ChinaWhere there is a studio(and a business decision)to support content creation,it is possible to foster a range of other formats:podcasts,interview shows,mini-concerts,fashion shows,tutorials.Having video production resourc
39、es,editors and storytellers on-site,allows brands to rapidly create and respond in real-time to trends/news.Management,marketing and sales staff regularly appear in brand created videos.FOR LUXURY BRANDSCHINA TRENDS REPORT|16Video channels and types Successful brands utilize an array of formats and
40、channels designed around specific brand goals.Brands should not,however,be trying to check all the boxes.From this array of options,brands should be looking to identify areas where they can create a winning formula that suits the nature and resources of their brand.Long-FormViral VideosShort VideosL
41、ive-streamDocumentarySerial VideoContent LifespanBILIBILIKUAISHOUDOUYINWECHATTMALL LIVEIQIYIEVERGREENEPHEMERALBiliBili has to be highlighted as a unique video platform,powerfully equipped to build engagement with Gen Z.The“Channels”function on WeChat can be used to build a following for serial(regul
42、ar)branded short videos.Weibo and RED serve as ideal platforms for kickstarting viral video momentum.Douyin and Kuaishou are the quintessential video apps for China.They dominate the short video format,while also being leaders in livestream.Tmall Live has been the dominant channel for live-stream se
43、lling.Together with Tencent Video,iQIYI is the key long-form video channel in China,akin to YouTube globally.Evergreen,longer-form and scripted videos from brands can have a lasting impact on brand equity.Chinese New Year has become a prime window for branded,long-form videos.The number of brands pr
44、oducing movie-quality videos has been expanding rapidly.“Live”video is about raising the stakes and building a sense of occasion,urgency and shared purpose.In addition to creating a sense of urgency and purpose(for sales and action),live-stream video can and does have the power to really create a sh
45、ared sense of connection and belonging.WEIBOREDCHINA TRENDS REPORT|17FOR LUXURY BRANDSLuxury brands are taking a more mature approach to live-streaming by moving away from KOL sales towards improved brand and service goals.LUXURY INSIGHTSKOL SalesAwarenessServiceBranding84.6%53.8%30.8%38.5%68%43%54%
46、60%AverageLuxuryLive-streaming has been an important part of Chinas marketing playbook for a number of years now and continues to build momentum in 2023.Brand sponsored live-stream sales with KOLs are potent events.Cooperating with KOLs,brands aim to capture audience attention and ultimately create
47、a sense of urgency and FOMO to convert attention-to-action.These live-stream branded KOL events serve as peak moments of attention for brands unique occasions to highlight hero products.Looking ahead,the goal for brands is to convert these peak moments into more consistent audience engagement.As a r
48、esult,the application of live-streaming has been growing beyond selling to include branding,awareness and customer service.By leveraging the pull of KOLs to rally large crowds and draw fans to a shopping and entertainment event,live-streaming epitomizes social commerce in China.Live-streaming has be
49、come foundationalHow do you plan to adjust live-stream priorities in 2023?FOR LUXURY BRANDSCHINA TRENDS REPORT|18The value of live-stream selling is notableLivestream selling accounts for almost 20%of all retail GMV in China.While the rate of growth is slowing,brands should take note of this tool an
50、d plan for opportunities to spark excitement with customers via live video.For luxury brands,the opportunities associated with live-stream selling are less about discounting and liquidating products and more about rewarding customers with unique products and experiences.China live-stream ecommerce m
51、arket size(Billions RMB)Live-stream GMV has been steadily and significantly rising DOUYINKUAISHOUTMALL LIVE34%29%37%2022 SHARE OF LIVE-STREAM REVENUE BY CHANNEL(GMV)Source:Totem ResearchGMV SPLIT(%)OF TOP THREE LIVE-STREAM CHANNELSSource:eMarketer0700200222023(e)Live-stream GMV
52、%of Total Retail GMV19.4%16.5%11.7%7.5%3.5%623.3479.5299.7161.962.319.4%16.5%11.7%7.5%3.5%FOR LUXURY BRANDSCHINA TRENDS REPORT|19Theres more to live-streaming than just sellingLive-streaming is all about creating a sense of occasion and sharing a fleeting moment together with customers.By going live
53、 and getting personal,brands are able to raise the value of audience interactions.As this format matures,it is likely that brands will design experiences for customers based on hyper-personalized insights,for a blend of service,storytelling and sales.In this context brands are virtualizing,and often
54、 improving on,the level and quality of engagement customers are receiving from sales reps.Live-streaming evolving to serve multiple brand goalsFrom sales to branding and customer serviceSERVICEBRANDINGAWARENESSKOL SALES16%26%19%39%Source:Totem Media 2023 China Brands Survey n=72WHAT ARE BRANDS USING
55、 LIVE-STREAMING FOR(IN 2022)Live-stream selling with KOLs is still the most important aim.Brand storytelling and live broadcasts of brand events are driving considerable reach and value.Customer service and support are developing into always-on activities,useful in driving repeat purchase and loyalt
56、y.Live-stream channels vs marketing goalsFOR LUXURY BRANDSCHINA TRENDS REPORT|20HIGH EQUITYCONVERTLOW EQUITY(Rent Audience)(Retain Audience)SALESGROWTHBRANDService staff and bosses are taking to owned live-stream channels to talk about products,and provide services.With its CRM slant,WeChat could be
57、 primed for service streams.Tmall Live,Douyin and Kuaishou hold the lions share of GMV for livestream sales.BiliBili,WeChat and RED also hold some promise in this space.Brands looking to build equity are doing so with their own channels and hosts,while guest KOLs increase viewership.RED may emerge a
58、s a priority channel for brand storytelling.Douyin leads in terms of current viewer momentum.But for boosting brand awareness,companies should prioritize the KOL first,and the channel second.Institutionalized broadcasts by brands,such as customer service and product demos,elevate consideration and r
59、einforce trust.Third Party KOLs and media can kickstart awareness,interest in a brand,product,or widen appeal to new segments.KOL live-stream sales spark the link between attention-action,to generate quick sales and ideally establish“hero products.”DOUYINREDWECHATBrand storytelling,entertainment,and
60、 interest-based content create meaningful,lasting engagement with audiences.TMALL LIVEREACHBRAND STORYKOL SALESSERVICELuxury brands highest priorities are with brand and service.GRADUATING FROM PRIVATE TRAFFIC TO CRMFOCUS AREA THREE3CHINA TRENDS REPORT|22Private traffic tactics,focused on direct sal
61、es activities with followers,have become a key part of the marketing playbook in China.After decades of brands prioritizing new customer gains,recently there has been a shift to improving customer LTV,loyalty and repeat purchase.Private traffic has been the most notable activity in support of improv
62、ed customer LTV,retention and service.While these private traffic tactics have been productive,brands must now graduate to more comprehensive CRM strategies.Progressive brands are now developing a 360 view of their customers,using detailed insights from across their entire organization,as well as an
63、d from third parties such as agencies and distributors.The CRM platform should be seen as a tool for breaking down silos within the brand organization to bring everyones focus to what matters most:the customer.Private traffic is a first step in developing more complete CRM solutions,not the final go
64、al.3.Graduating from private traffic to CRMFOR LUXURY BRANDSFOR LUXURY BRANDSPrivate traffic:a first step towards CRM in ChinaThe defining features of private traffic are the active management of discussion groups with VIPs,seeding of products with KOCs,together with user-get-user and repeat purchas
65、e incentives.PUBLIC TRAFFICPRIVATE TRAFFICData captured via brand CRM systems.These customer contacts can be re-engaged via accounts on digital platforms with the goal of driving returning and new customers to purchase.KUAISHOUBILIBILIDOUYINTMALLWEIBOREDWECHATPaid media,influencers and other actions
66、 to connect with new audiences.Private traffic tactics are a stepping stone for brands moving towards building more comprehensive CRM strategies.CHINA TRENDS REPORT|23MINI-PROGRAMOFFLINE SHOPSWeChat is THE most important channel for luxury brands when it comes to private traffic and CRM operations.P
67、rivate sales,VIP environments(Mini-programs)and invite-only events are some of the unique aspects of luxury CRM efforts.LUXURY INSIGHTSCHINA TRENDS REPORT|24Public traffic on large platforms has reached a point where this kind of paid media is often too expensive,even for large brands.In this over-i
68、nflated setting,brands in China have ramped up private traffic and CRM efforts over the past few years.On top of this,consumers have also become much more selective and cautious as the economy has tightened up.Its not hard to see why brands are making greater efforts to build deeper connections with
69、 loyal,high-value customers.While most brands already have basic CRM solutions in place,now is the time for marketing teams to really dig into making them work well,with improved data collection and keener customer insights.CRM,private traffic and goals related to improving customer systems and serv
70、ice are top priorities in 2023.Brands look to improve CAC/LTV metrics with improved CRMFOR LUXURY BRANDSLuxury brands are mostly standing pat with increasing investments into private traffic.When compared with brands in other categories,luxury brands are instead refocusing on more comprehensive,matu
71、re CRM efforts.LUXURY INSIGHTSLarge DecreaseSmall DecreaseNo ChangeSmall IncreaseLarge Increase7.7%23.1%38.5%23.1%7.7%17%34%28%6%15%AverageLuxuryHow do you plan on adjusting investments into private traffic for 2023?FOR LUXURY BRANDSThe CRM environment for luxury brands in ChinaCHINA TRENDS REPORT|2
72、5AverageLuxury76.9%43.9%CRM Systems“Does your company have a CRM system that allows you to collect data from multiple channels?”AverageLuxury100%62.6%WeChat connected to CRM“Is your brand WeChat account measured by a CRM system or reporting tool?”2.34.53.8PERSONAS (LUXURY BRANDS)The average number o
73、f personas managed by luxury brands within their approach to CRM in China.Athleisure:Average number of brand personasBeauty:Average number of brand personasThe deployment of sophisticated CRM solutions in China lags far behind markets such as the US and Europe.Until recently,brands in China have pri
74、oritized new acquisition over consolidating customer relationships,leaving CRM under-developed,fragmented and often ineffective.Totems survey of brands for 2023 reveals that this is changing quickly,and that CRM now counts as a key priority for brands as they grapple with higher CAC and data policie
75、s,which are increasingly restrictive.Source:Totem-Nov 2022(Average/Total Brands)n=82 /(Luxury Brands)n=13While many brands have some form of CRM,very few of these solutions are comprehensive or well-used.Its still early days with CRM in China!Comprehensive CRM StructureSTOREFRONTS&CUSTOMER FACING CH
76、ANNELSPAYMENTSBILIBILIMINI-PROGRAM.CNDOUYINTMALLWEIBOWECHATREDOFFLINE SHOPSALIPAYWECHAT PAY.CN WEBSITESWECHAT ACCOUNTSMINI-PROGRAMSOTHER STOREFRONTS/SITESOMNI-CHANNEL PAYMENTS-POSUNIFIED PROFILEORDERSCOUPONSCARTSMESSAGESSEARCH HISTORYCONTENTAPIsHOSTING(CRM/DATA)-EG.ALIBABA CLOUDAPIsINTEGRATIONS (SYS
77、TEMS OF RECORD)ERP/SUPPLYCHAINOMSPIM/DAMGLOBAL CRMSMSFOR LUXURY BRANDSCHINA TRENDS REPORT|26A full-stack CRM structure includes connections with and data from a wide array of customer touchpoints.All of these data end-points should funnel through to unified profiles,where individual customer records
78、 are maintained.Breaking down walled gardens with CRM.With high levels of concentration(BATB)and related walled gardens in China,tracking customer journeys can be difficult.As these walled gardens slowly erode,brands should be looking several steps ahead.They need to build connections that will allo
79、w them to follow customer journeys from social channels like WeChat to points-of-sale on Tmall,and everywhere in between.FOR LUXURY BRANDSCHINA TRENDS REPORT|27BIND WITH USERTmallWebsitesOffline POSWeChatSocial SitesNEW USER CHATENGAGEMENTCHAT(SALE ENQUIRY)TRANSACTIONLOYALTY PROGRAMAFTER-SALES SERVI
80、CEREPEAT PURCHASEBasic,Universal IDCustomer Data Registration1.Collect activity,interest and demographic data(added to CRM as“tags”)to build personas 2.Cross-channel identity matching via CRM system(and universal personal data(eg.Mobile Number)1.Add transaction and product preference insights to pro
81、files 2.Use complete profile(IDs and tags)to infer details about less complete profiles 3.Identify loyal customers for rewards(and to serve as KOCs)Brand advertising to spark awareness and consideration with live-streaming,KOL/KOC campaigns.User journey channel mappingViews,Comments,Likes,SharesCust
82、omer Service,Support,IncentivesBrands can and should map out customer journeys and develop specific strategies for where and how to initiate a new connections,nurture customers toward sales,and maintain loyalty post-purchase.The best strategies also leverage strong customer connections towards user-
83、get-user and private traffic results,where existing customers(KOCs)amplify results with each successive activation.And,user-get-user activationsFOR LUXURY BRANDSCHINA TRENDS REPORT|28CRMCRM.CN Mobile Phone IP Address CRM ID(Salesforce ID)Name Email AddressOFFLINE SHOPS Mobile Phone Brand ID(Salesfor
84、ce ID)Name Email AddressTMALL Mobile Phone Tmall ID(JD ID)AddressDOUYINRED Mobile Phone Avatar Image(&URL)City&Province Language NicknameMINI-PROGRAMWECHAT Mobile Phone Open ID(Union ID)Name Nickname Profile Image(Avatar)Address(Province)CONTACT DATAACTIVITY&DEMOGRAPHICS Source Status Tags Source St
85、atus Tags Transaction Data Customer Type/Tier Subscription Status NPS Score Source Gender Subscriber Status/Time Tags Transaction Data Gender Status Tags Source Mobile Phone Name City Address Transaction DataWEBSITE DATAOMNI-CHANNEL POS(CRM)MARKETPLACE DATAOTHER STOREFRONTS-DOUYINWECHAT ACCOUNTS&MIN
86、I-PROGRAMSUser data points per channelContact data consolidated from multiple channels,with CRM systems,is cross-referenced to build omni-channel customer identities.This is achieved with interest and demographic details built out over time via tagging of user activities like article engagement,tran
87、sactions,chat and Q&A.The data needed to create a unified profile in China is centered around mobile phone number and WeChat ID,unlike the US/EU which typically center on email.Please note:these data points can/do change regularly.Data rules in China are rapidly evolving,with standards for consent a
88、nd privacy having increased significantly in recent years (eg.PIPL data regulations).In general,easier than marketplace,user data can be collected upon users explicit consent In general,very rigid and restricted on user data collection process,but can be done if:(1)data storage never leaves Taobao 聚
89、塔;and(2)data collection done on a per-request basis.Only buyers who complete a purchase from your shop on Tmall.OTHER STOREFRONTS-REDOnly buyers who complete a purchase from your shop on RED.CHINA TRENDS REPORT|29Developing clear,useful insights about customers sits at the heart of CRM.After the cha
90、llenging work of connecting to customer digital channels and collecting data points has been completed,brands must endeavor to build clear insights about customer personas and group them into cohorts.The development of these personas and cohorts provides brands with the information they need to bett
91、er serve customers with relevant messaging and experiences,as well as more finely tuned product recommendations.Given the changes experienced in recent years,it is essential for brands to augment current CRM data with surveys and third-party data.Updated customer insights are more important than eve
92、r.Development of personas and customer cohorts helps drive gains with LTV and acquisition alikeFOR LUXURY BRANDSFOR LUXURY BRANDSBuilding personas,modeling cohortsCRM data used to build customer personas should be brought together with other data sets in order to model out cohorts and interest segme
93、nts.In the example below,interest-based CRM data is mapped out.In this sample,a luxury brand could look to create a healthy+global inspired dining experience for customers.CHINA TRENDS REPORT|30TAGSCONTENTBRAND x PRODUCTSINTERESTSOTHER PRODUCTS/BRANDSPERSONADescription about who the segment/persona
94、is and how they relate to our brand.BASIC SEGMENTATIONBased on existing customer data,interviews,purchase info.1TAGS TO REFINEExtracted from customer interactions on key channels(WeChat,Tmall).2ENHANCED,EXPANDEDCorrelating keywords to Weibo and Baidu to enhance image of customer.3LocationGenderSuppo
95、rted by customer surveys,interviews,and 3rd party data.LUXURYTRAVELFASHIONFINE DININGWELLNESSWECHAT AS FOCUS CHANNEL FOR LUXURYFOCUS AREA FOUR4CHINA TRENDS REPORT|32While there are other important channels for luxury brands emerging(eg.Douyin,RED,BiliBili),WeChat remains the single-most important ch
96、annel for both communications and sales.As digital in China continues to slowly shift more toward DTC,the value of WeChat will rise accordingly.Mini-programs,which allow brands direct access to data and customer messaging,have been very productive for direct focused brands.CRM solutions connected to
97、 Mini-programs,official accounts and other features inside of WeChat also enable omni-channel strategies,linking online and offline customer journeys.4.WeChat is the focus channel for luxury brandsFOR LUXURY BRANDSWeChat is THE most important channel for luxury brands when it comes to private traffi
98、c and CRM operations.Private sales,VIP Mini-programs and invite-only events are some of the unique aspects of luxury CRM efforts.LUXURY INSIGHTSWeChatTmallREDDouyin38.5%61.5%92.3%100%61%63%84%88%AverageLuxuryThe channel will play a key role for my brand(3 years from now):Brand Name Company Title(Ver
99、ification)Brand IconDescription of the account,about the brand and what users can expect from following this official brand account.STORIESVIDEOSERVICESTORY(POST)HEADLINE Date PostedPost Views#.Likes#STORY(POST)HEADLINE Date PostedPost Views#.Likes#STORY(POST)HEADLINE Date PostedPost Views#.Likes#FO
100、LLOW ACCOUNTFOR LUXURY BRANDSWeChat is a foundational channel for luxury brandsBrand Official Account:is the legacy hub for brand-audience communications and messaging.Mini-programs:are branded sites,ecommerce(stores),used for sales and direct goals(audience data collection).Channels:is the space wh
101、ere brands post videos to followers inside of the official account.WECHATCHINA TRENDS REPORT|33When measured against the long-term trend of China as a social commerce environment,WeChat is a safe bet to emerge on top.Of the top 30 luxury brands,all operate official accounts,while 97%also have WeChat
102、 Mini-programs.WeChat has a number of foundational advantages:1.Everyone in China is on WeChat.Users are omni-present,and use the app while online and offline.2.It offers an array of payments capability,utilities and mini-programs,making it a fully featured transactional platform.3.A steady stream o
103、f new features is added to the platform,as-and-when they hit mass adoption with users(eg.short videos,live-stream)4.For luxury brands,where customer service and support are paramount,WeChat offers a set of native messaging and personalization features,which are a cut above other channels.For brands
104、and audiences alike,WeChat offers a potent mix of entertainment(content),commerce and chat,with official accounts,video channels and Mini-programs.Brand Name Company Title(Verification)Brand IconDescription of the account,about the brand and what users can expect from following this official brand a
105、ccount.STORIESVIDEOSERVICEDate Posted23322231225367FOLLOW ACCOUNTProduct Name34,000B123212Add to CartProduct Name34,000B123212Add to CartPage NameProduct NameProduct NameFOR LUXURY BRANDSFull-funnel marketing activities on WeChatMore than any other channel,WeChat is capable of stringing together ful
106、l-funnel marketing activities,from awareness through to sales,as follows:1.Targeted ads:with ability to set demographic and interest-based customer groups.2.Official accounts:brands retain and engage with followers,nurturing them to sales,with a mix of content and messaging(service).3.Sales on Mini-
107、programs:customer traffic is streamlined to brands Mini-programs,where brands convert the direct sale(DTC),and capture data about customers.4.Private traffic operations:brands tap high-value customers(KOCs),to advocate on their behalf,driving user-get-user sales from group chats.This cycle in WeChat
108、 goes top-down,from awareness to acquisition,and then bottom-up,with new sales being generated from existing customers.Build an audience on official account with content,ads,in-bound traffic from other sites.Retain traffic(as followers).Measure,refine engagement with CRM program.Mini-program support
109、s DTC sales,CRM data,brand content.It is in effect a brand website.On-board customers(as followers)through alternate checkpoints:offline,ecom sites.Omni-Channel WeChat ProcessUsing WeChat as CRM Hub,organizing private traffic flows,facilitating DTC sales.SELLING ON WECHAT THROUGH A MINI-PROGRAM?SELL
110、 ON MINI-PROGRAMDONT SELL ON WECHATUse private traffic in follower-get-follower efforts.KOCs stimulate sales in group chats.KOCS DRIVE SALES TO MINI-PROGRAMTARGETED CONTENT&INCENTIVES TO GET NEW FOLLOWERS“Channels”-Short Video Ads“Moments”-Social AdsEcommerce OutcomeOmni-Channel OutcomeAudience Cult
111、ivationSMS automations to re-engage on shopping carts with customer data from Mini-programs.CHINA TRENDS REPORT|34OMNI-CHANNEL,RE-BALANCING TO OFFLINE FOCUS AREA FIVE5CHINA TRENDS REPORT|36As Chinas reopening shifts into high gear,brands should be looking to revitalize offline activities and re-exam
112、ine how truly omni-channel capable they are.Offline is ripe for affordable investment.This is due to out-of-home being down more than 30%in 2022 and the property market being cheaper,with vacancy levels at all-time highs in key cities.The opportunity is there for brands to create memorable experienc
113、es offline,in support of brand and customer acquisition.In the next phase of China growth,experience will be everything!Offline activations,supported by the savvy use of customer data and insights,will allow brands to create highly targeted,audience-specific experiences.These offline events put bran
114、ds in a good position to add new customers and further improve loyalty with existing patrons.With 80-90%of budgets allocated to digital(vs only 67%of user time),digital is over-inflated.FOR LUXURY BRANDS5.Omni-channel,re-balancing to offlineFOR LUXURY BRANDSCHINA TRENDS REPORT|37China is over-invest
115、ed in digital advertisingWhile 63%of user time is digital,advertisers in China spend over 90%of budgets on digital media.Advertising in China reflects the accelerated way the media environment came together,where traditional media was surpassed by digital before it had a chance to mature.This has le
116、d to a situation where advertising in China is digital advertising.Theres no ad planning that isnt built around digital.In 2023,the gap between digital and traditional has never been wider.The opportunity for brands in 2023 lies with traditional channels,particularly OOH,where attention is under-pri
117、ced.Offline efforts must expand to catch up with online investments,as brands are heavily over-balanced on digital initiatives.Being fully omni-channel,with comprehensive CRM,should be the goal of brands in China.Ad daily time spent in China(traditional vs digital media)Traditional and offline media
118、 need to play catch-up in 20232023 fPrintRadioTVOOHDigitalGROUPM PROJECTION FOR AD SPEND BY MEDIA200224:354:143:543:36HOURS:MINS2:372:402:442:5067.4%32.5%4:502:20Source:eMarketer,Group M(2022)90.5%CHINA TRENDS REPORT|38Way back in 2019 prior to Covid,more than 150 million trave
119、lers ventured abroad,spending$255 billion.It is expected that travel will go from 5%of this volume up to 50%in the summer of 2023.Busy airports and travel hotspots should prove to be incredibly powerful channels for sales and brand impact into the second half of 2023.While sales will be important,th
120、e opportunity to create renewed brand impact may prove to be more important.Brands that nail their timing and messaging will be able to form important new(and renewed)bonds.These bonds have the potential to reverberate globally back to China.With travel ramping back up,CRM operations will serve as a
121、 critical tool for connecting China audiences to global sales.FOR LUXURY BRANDSChinese travelers are also returningSALESFORCE SOLUTIONS IN CHINACommerce and marketing solutions for ChinaTailored for China-specific consumer channels,Salesforce Social Commerce and Social Messaging enable you to seamle
122、ssly integrate your Chinese customers marketing and commerce interactions all on one platform.Create a single view of your customers across social purchases and behavior to deliver cohesive,personalized experiences,increase engagement,and ultimately drive more revenue.CHINA TRENDS REPORT|40Salesforc
123、e China Digital ExperiencesFOR LUXURY BRANDSFollow Salesforce on WeChat for the latest news and insights about CRM in C This ReportCHINA TRENDS REPORT|41FOR LUXURY BRANDSChina Trend Report for 2023This is a joint report by Salesforce and Totem Media.About the researchThis series of reports features
124、research from Totem.At the end of 2022,Totem surveyed marketing leaders from a group of 82 brands on their advertising plans for 2023.This group of brands represents a cross-section(of mostly global)brands,ranging from very large to medium sized-most of which have more than 10 years experience in Ch
125、ina.Luxury Category:n=13 Brands Beauty:n=14 Brands Athleisure:n=9 BrandsAbout TotemTotem is a brand strategy and digital consultancy,focused on helping brands succeed in China.Totem works with its clients to address critical brand growth challenges including;digital capabilities/innovation,social CR
126、M,audience/segment research and mapping,brand strategy,category design and data insights and analysis.Totem publishes a range of reports on China marketing found at: Surging Recovery to Elegant Advance:The Evolving Future of Luxury.The information provided in this report is strictly for the convenie
127、nce of our customers and is for general informational purposes only.Publication by does not constitute an endorsement.S does not warrant the accuracy or completeness of any information,text,graphics,links,or other items contained within this guide.S does not guarantee you will achieve any specific results if you follow any advice in the report.It may be advisable for you to consult with a professional such as a lawyer,accountant,architect,business advisor,or professional engineer to get specific advice that applies to your specific situation.Copyright 2023,S,Inc.All rights reserved.