1、Chinas luxury market in 2024:VICs,omnichannel&CRM strategies 2024 Daxue ConsultingALL RIGHTS RESERVEDChinas luxury market revival1.03About VO25.42Into the co-branding hype2.13Luxury goes omnichannel3.22About Daxue Consulting6.49CONTENT OUTLINECrafting experiences through CRM4.282Chinas luxury market

2、 revival 2024 Daxue ConsultingALL RIGHTS RESERVEDChinas luxury market seeks steady recovery amidst challengesThe economic challenges in 2022 led to over half of Chinese consumers wanting to save more in 2023.Despite this,Chinas luxurymarket rebounded in 2023,as the market is driven by core luxury co

3、nsumers who are less financially impacted by a slowing GDP.Source:Peoples Bank of China Consumers born in the 90s accounted for 61%of total luxuryshoppers in 2022.Youth unemployment has hit a record high during 2023H1,peakingat 21.3%in June.Rising uncertainty triggered by both domestic and internati

4、onalfactors is inducing consumers to save money,leading to fewer first-time luxury consumers.24.5%of surveyed people are willing to consume more58%of respondents are planning to save more17.5%of surveyees are keen to invest more-0.4%YoY+0.3%YoY+0.7%YoYQ2 2023 urban depositor survey report(N=20,000)4

5、Source:TMIxBCG(2022),National Bureau of Statistics Despite a slight dip in consumer confidence,luxury spending by Chinese consumers experienced a growth of 12%year-on-year(yoy),reaching RMB 449 billion in 2023.Source:BainxAltagamma(2024),EastMoneyThis rebound is primarily driven by core luxury shopp

6、ers,who exhibit less elastic demand and are expected to contribute significantly to the expansion of the luxury market.2403424.6120.2121.295.088.2-03004005006002002220232019-2023 size of the personal luxury market in China and consumer confidence indexMarket size in

7、billion RMBConsumer confidence index(100=neutral)2024 Daxue ConsultingALL RIGHTS RESERVED3202320192019 vs 2023 Chinese consumers domestic&overseas luxury consumption(in billion RMB)DomesticOverseasDomestic luxury purchases are part of the new normalDespite a resurgence in overseas luxury

8、spending,the appeal of the domestic market persists due to product availability and a narrowing price gap in duty-free offerings,making Hainan a continuing focal point.In 2023,Hainans duty-free sales reached RMB 43.8 billion,attracting 6.7 million shoppers.Source:TMIxBCG(2023),BainxAltagamma(2024)Am

9、id the pandemic,90%-95%of luxury goods were locally purchased in China.Despite a drop in 2023,domestic purchases are expected to play a more significant role than before COVID-19 in the next few years.In 2019,60%of Chinese luxury buyers made their purchases abroad.Despite a rebound in travel,this fi

10、gure has not returned to pre-pandemic levels in 2023.Sources:Official China websites,CDF Hainan,Extime,Duty Free Toulouse,Aelia Duty FreeThe narrowing price gap between duty-free luxury in China and France is boosting the allure of the domestic luxury market for Chinese consumers.Official China webs

11、ite vs.Hainan vs.France duty-free prices as of January 2024(in USD)China websiteHainanFranceCamus VSOP Borderies1lClarinsDouble Serum 50 mlBulgariPour Homme EdT 100 mlSwarovskiSparkling Dance Round77.870.283.4144.6110.9108.6150.279.4104.2175.491.2136.2540%70%30%60%Duty-free channels account for 20%o

12、f domestic sales 2024 Daxue ConsultingALL RIGHTS RESERVEDLuxury spenders to spend more on hard luxuryIn 2023,watches,jewelry,and iconic bags saw significant growth as consumers sought higher-value investments,with 31%emphasizing the importance of goods retaining value.This trend is particularly pron

13、ounced among medium luxury spenders.Source:DeloittexOceanEngine(2023),Hurun(2023)Bags&suitcases 35%Ready to wear23%Jewelry 19%Watches 15%Shoes6%Accessories2%Chinese mainland personal luxury market size by category 2023 H1+23%YoY+23%YoY+21%YoYConsumers with an annual luxury spending of RMB 50k-300k p

14、lan to cut overall expenditure by 5%,yet increase watch purchases by 3%to account for 18%of their spending.Growth in luxury-related short video views on Douyin from 2021H1 to 2023H1 Watches+25%Bags&suitcases+20%Shoes&ready-to-wear+0%Accessories+4%Jewelry+93%6This growth also aligns with the increasi

15、ng importance of gifting and collectingpurposes as drivers for luxury purchases,as these items are deemed particularly suitable for both purposes.2024 Daxue ConsultingALL RIGHTS RESERVEDBest selling products on Tmall during 520 2023,by revenueGucci,Saint Laurent,and Balenciagas top 3 best selling ba

16、gs on Tmall between Oct 15thand Nov 15th2023,by ordersGG MarmontSuper Mini BagRMB 8,700GucciDionysus Super Mini BagRMB 8,000GG MarmontMini BagRMB 18,000Niki Medium Shoulder BagRMB 23,600Niki Medium Shopping BagRMB 17,400Niki Baby in Vintage LeatherRMB 21,900Saint LaurentBalenciagaHourglass Small Han

17、dbag Crocodile EmbossedRMB 21,700Hourglass XS Handbag Crocodile EmbossedRMB 19,900Hourglass XS Handbag BoxRMB 18,100Source:DLGxRe-Hub(2023)Source:Tmall1Gucci GG Marmont Super Mini BagRMB 8,7002Saint LaurentNiki Medium Shopping BagRMB 17,4005Saint LaurentSmall Le 5 7 Supple Hobo BagRMB 18,100Premium

18、luxury bags lead Tmall sales across brandsDuring 520(Chinese Cyber Valentines Day)in 2023,two of the top three best-selling luxury bags on Tmall were premium(RMB 10k).Between October 15thand November 15th,premium luxury bags continued to dominate the top 3 highest selling bags for Saint Laurent and

19、Balenciaga,with Gucci featuring one premium bag,signaling sustained demand for high-end items.7The shift towards prioritizing It Bags and mid-premium-priced pieces reflects a consumer emphasis on timeless items,coinciding with a decline in the number of low luxury spenders,a group significantly affe

20、cted by the pandemic,as consumers adopt a more cautious approach to consumption.2023 Daxue ConsultingALL RIGHTS RESERVEDGen Z consumers go beyond the physical attributes of luxury items8Unlike their younger counterparts,Millennials and Gen X prioritize the tangible features of luxury goods,emphasizi

21、ng brand name,heritage,and product quality.Their preference for recognizable major brands reflects a collective appreciation for luxury pieces that endure as valuable investments over time.Sources:Deloitte(2023),KPMG(2023),PwC(2023),Mazars(2021)Gen ZValueBrand values,culture and historyUnique design

22、PurposeGain recognition from their peersKeeping up with the trendExpressing their valuesPreferred luxury categoriesApparel&footwearPerfumes&cosmeticsAccessoriesOther characteristicsFavor trendy or“hot”brandsMore likely to go for niche brandsMore prone to buy vintage/second-hand luxuryMillennialsValu

23、eBrand name and heritageUnique designPurposeShowcasing social status and wealthInvestment valuePreferred luxury categoriesPerfumes&cosmeticsOther characteristicsFavor recognizable major brandsSeek out limited-edition productsBagsApparelValueProduct quality and fine craftsmanshipPurposeQuality assura

24、nceShowcasing social status and wealthPreferred luxury categoriesOther characteristicsFavor recognizable major brandsOften opt for international brandsBagsGen XLess likely to grasp brand nuancesSkincare&cosmeticsWatches&jewelry 2024 Daxue ConsultingALL RIGHTS RESERVED51%47%19%20%30%33%Customer basep

25、roportionConsumptioncontribution proportionLuxury goods consumers in China in 2022 by city tierBeijing,Shanghai,Guangzhou,ShenzhenNew First-tierSecond-tierand belowPurchasing luxury items for investment purposes is a significant motivator in both higher and lower-tier cities.However,consumers in hig

26、her-tier cities,accounting for 53%of total spending,exhibit greater openness to niche or emerging labels and are less price-sensitive compared to their counterparts in lower-tier cities.Uniqueness,sophistication,and values define spending in higher-tier cities9Sources:TMIxBCG(2023)Sources:KPMG(2023)

27、,Mazars(2021),TMIxBCG(2023)Lower-tier cities(3rdand below)Higher-tier cities(1st 2nd)ValueBrand values,culture and historyUnique designKeeping up with the trendRewarding and expressing themselvesInvestment purposePurposePreferred luxury categoriesApparel&footwearPerfumes&cosmeticsOther characteristi

28、csNiche or new labels in low-key luxuryMore willing to pay a premium for uniqueness and for brands that align with their valuesBagsWatches&jewelryValueBrand name and originProduct qualityShowcasing social status and wealthInvestment purposePurposePreferred luxury categoriesApparel&footwearOther char

29、acteristicsPrefer classic,high-profile,and recognizable luxury brandsMore receptive to promotions and discountsBagsSkincare&cosmetics53%2024 Daxue ConsultingALL RIGHTS RESERVEDVICs propel luxury in the midst of Chinas economic chillAs Chinas economy faces a slowdown,the pivotal role of HNWIs in driv

30、ing luxury consumption is poised to increase.Brands shifting focus from entry-level consumers to Very Important Customers(VICs)are positioned for better performance in this evolving economic landscape.HNWIs typically navigate economic downturns with resilienceThe primary luxury categories expected t

31、o witness a surge in spending include:JewelryWatchesClothes and accessoriesof them plan to up their spending on personal luxury goods in the next three years.56%As of the end of 2022,China ranked 3rdglobally in the number of HNWIs,boasting approximately 780,000 people with investable assets USD 1 mi

32、llion.Sources:Henley&Partners(2023),Hurun(2023),PwC(2023)10of luxury sales were driven by Chinese consumers with a net worth of RMB 10 million.42%HNWIs account for a big chunk of luxury salesThe ongoing Common Prosperity campaign is likely to prompt them to adopt a more low-key attitude,steering awa

33、y from blatant displays of wealth.2024 Daxue ConsultingALL RIGHTS RESERVED1Exclusive/early accessGranting early access to new launches,and limited editions,including exclusive products only for VICs.2GiftsProviding gifts for birthdays,festivals,and special occasions.3Private events and showsInvitati

34、ons to exclusive events,fashion shows,or behind-the-scenes.4VIP LoungeInvitations to exclusive events,fashion shows,or behind-the-scenes.Luxury brands tactics to delight VICsLuxury brands deploy a myriad of strategies to engage,retain,and pamper their VICs.These initiatives are meticulously crafted

35、to instill a profound sense of exclusivity,privilege,and an elevated customer experience,ensuring VICs feel uniquely connected to the brand.Guccis customized jacketI ordered the earliest batch of this VIC item at the beginning of February.It was supposed to take 5 months to be customized in Italy an

36、d then sent back to China.To my surprise,it arrived a month ahead of schedule.The SA said I should be the first one in China to get it.In late May,I received the item,and the craftsmanship is really amazing.I chose to have the capital letter“Y”from my name printed on the front of my jacket.The linin

37、g features my name,making it very special.Images source:Xiaohongshu11 2024 Daxue ConsultingALL RIGHTS RESERVED“Old money,“Clean fit,and Maillard style”are boosting the rise of quiet luxuryThe blend of these trends,alongside a maturing luxury market and the economic downturn,is steering consumers,esp

38、ecially in higher-tier cities,towards understated,logo-free luxury.This shift signifies a move from conspicuous displays to more subtle expressions of sophistication.Clean fit#cleanfit#都市极简都市极简(cityminimalism)#cleanfit品牌品牌(cleanfitbrands)#Zegna杰尼亚杰尼亚Related hashtags on XHSClean Fit combines a minima

39、list design with a focus on simplicity,favoring straightforward and uncluttered clothing styles.Precision and quality craftsmanship are key,with a focus on superior materials.Maillard style(美拉德风美拉德风)Popularized on Douyin,the trend rapidly gained momentum,with over 6 billion views.Embraced by Chinese

40、 celebrities like Zhang Xiaofei and Yang Mi,Maillard style extends beyond clothing to makeup,setting trends in the beauty industry.#美拉德风美拉德风(maillardstyle)#美拉德色系美拉德色系(maillardcolorpalette)#美拉德美甲美拉德美甲(maillardstylemanicure)#美拉德老钱风美拉德老钱风(maillardoldmoneystyle)#miumiuRelated hashtags on XHSSources:Zhih

41、u,XiaohongshuOld money style(老钱风老钱风)Characterized by timeless elegance,this style prioritizes enduring fashion choices over fads.Rooted in heritage and tradition,it embodies sophistication and a connection to the past.Prioritizes meticulously crafted pieces with superior materials and attention to d

42、etail.#老钱风老钱风(oldmoneystyle)#老钱风穿搭老钱风穿搭(oldmoneystyleoutfit)#loropiana#拉夫劳伦拉夫劳伦(ralphlauren)#brunellocucinelliRelated hashtags on XHS12Into the co-branding hype 2024 Daxue ConsultingALL RIGHTS RESERVEDLuxury brands take collaborations to the next levelLuxury co-branding in China takes various forms,

43、involving a range of brands and industries.This includes local F&B consumer brands,homegrown designer brands,and other sectors like ACGN(Anime,Comics,Games,and Novels),institutions,and independentartists representing Chinas cultural heritage.F&BACGNCultural heritageSource:Xiaohongshu,WeiboHotspots14

44、 2024 Daxue ConsultingALL RIGHTS RESERVEDcTypical drivers for luxury co-branding in ChinaGain validity in new marketRaise perceived brand valueInject inspiration into R&DTap into new consumer baseRe-shape brand imageExpand services providedShowcase brand valuesCo-branding with a reputable brand can

45、help a newer brand jump-start their reputation in the Chinese market.Luxury brands can adopt aspects of the other brands image,such as a youthful appeal or understanding of Chinese culture.Rather than investing in adding more services,a brand can collaborate with entities that already provide those

46、services.Luxury brands already have a high perceived brand value,however the collaboration partners goal is often to leverage the luxury brands reputation to raise their own perceived value.Co-creating a product can bring fresh perspectives to R&D,such as new designs that are limited edition.Luxury

47、brands can gain awareness in their partners audiences,such as Gen Z,through co-branding.Co-branding is one way to showcase values like sustainability,charity,and cultural heritage(which is especially relevant in China).BrandingConsumer acquisitionProduct developmentOften used by luxury brands15 2024

48、 Daxue ConsultingALL RIGHTS RESERVEDTypes of co-branding methods leveraged by luxury brands in ChinaCo-branding typeRepeated playersR&D HeavyR&D LightWhat is it?Whats unique in ChinaBuzz potentialRiskROI potentialOften used by luxury brandsDesign co-brandingOften focused on traditional culture,nosta

49、lgia or ACG.A brand seeks the expertise of another brand for design,incorporating their elements.Value-signaling co-brandingThe focus is not a new product created but an emphasis on the brands shared value.Often with charities.The charities in China differ from the west:more focus on culture,arts,an

50、d wildlife preservation.Promotional co-brandingBrands release a campaign or promotion together.Previously dominated by celebrity co-branding which is now high-risk.Moving more towards virtual influencer or organizations.Complementary co-brandingBrands use their own services or products to compliment

51、 the product or service of another.In China these collaborations are often more adventurous in crossing industry borders.Co-manufacturing/ingredientThe final product is a new item using elements of both,often sensory-focused.Chinese co-manufacturing is often sensory-focused,and Chinese consumers are

52、 welcoming to exotic combinations.Sponsorship co-brandingOne brand supplies resources for another brand,often times an event,in exchange for brand awareness.Often for government events and brands often need to build stronger relationships(关系)with event organizers.16 2024 Daxue ConsultingALL RIGHTS R

53、ESERVEDSurfing the coffee craze:LV x MANNER x Metal Hands x PlusOneBuzz produced:ROI potential:Risk:Medium,possible dilution of the brands exclusivity and privileged auraHigh,#LVShanghaiBookstoreCanvasBag garnered 140M views on WeiboHigh,substantial organic social media traffic and consumer engageme

54、ntType of co-branding utilizedType or partnershipCampaignGoals satisfiedRe-shaped brand image Brand x Brand x Brand x Brand Across Industry Horizontal France x ChinaDesign co-brandingTap into new consumer baseLouis Vuitton opened three pop-up bookstores in collaboration with local Chinese coffee bra

55、nds,MANNER,Metal Hands,and Plusone.Each store featured a unique colored theme.The campaign sparked a collectibles craze among Chinese consumers,offering a complimentary Canvas bag exclusively with the purchase of at least 2 LV city guides,each starting at RMB 290.Source:XiaohongshuSource:Weibo,Xiaoh

56、ongshuThe LV city-exclusive canvas bag redeemed with Manner points looks so good!I especially like the blue color!Also,I really love Shanghai!Finally received the LV city-exclusive canvas bag redeemed with Manner coffee points,and it looks truly fantastic!”-小诗瓜真是个小机灵鬼,XiaohongshuxEnhancing its assoc

57、iation with lifestyle and consumer engagement.Creating a craving for the brand among middle-income Gen Z consumers,extending beyond the high-income demographic.17 2024 Daxue ConsultingALL RIGHTS RESERVEDPreserving an high-end image:Valentino x Venchi x CovaBuzz produced:ROI potential:Risk:Relatively

58、 low,collaborating with premium F&B enables to preserve brand exclusivityHigh,#SweetVCollab(甜蜜V联盟)has gained over 162,000 views on WeiboRelatively high Type or partnership Brand x Brand x Brand Across Industry Horizontal Italian x Italian x ItalianType of co-branding utilizedCo-manufacturingValentin

59、o is promoting its iconic Pink PP color through collaborations with Cova,offering a Pink PP-themed afternoon tea set exclusively at its Plaza 66 store in Shanghai,and with Venchi for a Pink PP-themed pitaya-flavored gelato available at 43 boutiques in China.CampaignSource:CovaSource:FacebookInspired

60、 by Valentinos signature pitaya pink,Venchi crafted a new gelato flavor in the natural hues of pitaya,unveiling a dreamy world bathed in pink named Pink PP Dragon Fruit Sorbet in collaboration with Valentino.Goals satisfiedRaised brand perceived valueCrafted an exclusive and limited-time experience

61、through a cross-category collaboration,providing a unique and premium offering.xxI went to have the dragon fruit gelato from the collaboration between Venchi and Valentino at noon.The color is really beautiful,haha!Its paired with my favorite pistachio flavor,and with the dragon fruit sorbet,its rea

62、lly delicious.-Hyesung,Xiaohongshu18 2024 Daxue ConsultingALL RIGHTS RESERVEDBridging luxury and pop culture:Fendi x FRAGMENT x Pokmon19Buzz produced:ROI potential:Risk:Relatively low risk,potential brand misalignment and dilution if not executed carefullyHigh on both media and social mediaHigh,incr

63、eased brand visibility and consumer engagementType of co-branding utilizedType of partnershipCampaignGoals satisfiedRe-shaped brand imageDesign co-brandingTap into new consumer baseFendi,Fragment,the Japanese designfirm founded by Hiroshi Fujiwara,andPokmonhaveforgedacollaborativealliance to commemo

64、rate the Year of theDragon.Theanticipatedlaunchisscheduled for January 2024,yet it isalready generating significant online buzz.Brand x Brand x IP Across Industry Horizontal Italian x Japan x JapanThe collaboration encompasses a varied selection,spanning small leather goods,key charms,textile access

65、ories,brass jewelry,and distinctive apparel.In an exciting partnership with Pokmon GO,players can explore and capture Pokmon while acquiring digital avatar items featuring unique designs.This collaboration with Pokmon infuses Fendi and Fragment Design with a youthful and playful appeal.The brands es

66、tablish emotional connections with Chinese youth,leveraging their fondness for cuteness to reach a broader audience.“FENDIs joint ventures always give me a bit of excitement.Looking forward to the next collaboration.Rumor has it there will be a flash event in TaiKoo Li,Chengdu,on January 4th.Pokmon

67、enthusiasts are in for a treat!”-凯蒂中古箱包,XiaohongshuxxSource:XiaohongshuSource:Xiaohongshu 2024 Daxue ConsultingALL RIGHTS RESERVEDCultural appreciation:Loewe x Chinese monochrome porcelainBuzz produced:ROI potential:Risk:High risk,co-branding with Chinese heritage poses backlash from cultural misint

68、erpretation and appropriationMedium,garnered 58k likes on XiaohongshuHigh,due to increasing popularity of Guochao”Type of co-branding utilizedType or partnership Brand x Cultural Heritage Across Industry Horizontal Spain x ChinaCampaignGoals satisfiedShowcase brand valueDesign co-brandingTap into ne

69、w consumer baseThe brand respectfully honors Chinese culture by infusing the essence of monochromatic porcelain into its products.In early spring 2023,Loewe introduced a series ofChinesemonochromeglazed.Thelaunchwascomplemented by a documentary that paid homage toChinese porcelain art and an exhibit

70、ion themed aroundmonochrome ceramics scheduled for November 2023inShanghai.Moreover,hebrandrevealeditssponsorshipofaneweducationalprogramonmonochrome ceramics at the Jingdezhen CeramicUniversity.Loewes monochromatic collection pays homage to the minimalist ceramic aesthetics of the Ming and Qing dyn

71、asties.This collection features iconic Puzzle,Hammock,and Flamenco handbags.“Both production and promotion respect Chinese culture.When you buy the card pack,there will be a card attached with detailed records on which dynasty in China this color was inspired by.For better publicity,LOEWE also donat

72、ed money to Jingdezhen Ceramics University.”-念汐slog,XiaohongshuWith the rising Guochao trend,especially among Gen Z,Loewes move holds the potential to engage a broader consumer base.Value-signaling co-brandingSource:XiaohongshuSource:Loewex20 2024 Daxue ConsultingALL RIGHTS RESERVEDCombining luxury

73、and cultural identity:LV x Shanghai lifestyleBuzz produced:ROI potential:Risk:Low,ensure cultural initiatives are well-received and not perceived as insensitive or inappropriateHigh on both media and social mediaHigh,low investment but high consumer engagementType of co-branding utilizedType or part

74、nershipCampaignGoals satisfiedRe-shaped brand image Brand x Hotspot Across Industry Horizontal France x ChinaValue-signaling co-brandingLouis Vuittons Nng H,Shanghai pop-up atFotografiska Shanghai Museum(Oct 12 to Nov12)embodies the citys culture with curatedcollections,including the latest LV City

75、GuideShanghai edition.The event,named in the localdialect,capturestheessenceofbeingShanghainese.Notable attendees include LVbrand ambassador Jackson Wang,Chinese boygroup TNT,actor Wang Chuanjun,footballer ZhaoLina,and model Wang Wenqin.Throughout the month-long event,LV engaged audiences through of

76、fline activities,such as book clubs,cultural talks,and childrens workshops.Concurrently,the brand introduced its first Chinese podcast series,Louis Vuitton EXTENDED,on Xiaoyuzhou(小宇宙),exploring topics like Shanghainese street breakfast and the transformation of the Suzhou River area.LV reshapes its

77、brand image by positioning itself as not just a luxury fashion label but also a cultural and lifestyle curator.“Highly recommend everyone to listen to the Louis Vuitton Extended podcast,whether you are in Shanghai or not.In the narrations of teachers Jin Yucheng and Mian Mian,you will gain a fresh a

78、nd nostalgic understanding of Yangjingbang Creek.I really like it,and I strongly recommend giving it a listen.”-Jas在上海,XiaohongshuShowcase brand valueThis campaign deepens LVs ties with Shanghai luxury consumers,redefining the essence of being Shanghainese and drawing from local culture.Source:Xiaoh

79、ongshuSource:Xiaohongshux21Luxury goes omni-channel 2024 Daxue ConsultingALL RIGHTS RESERVEDChinas luxury market is omni-channel,multiplying consumer touch-pointsLuxury brands are adapting to digitally-savvy Gen Z preferences by employing digital innovations that enable instant communication with co

80、nsumers across online and offline platforms,recognizing the demand for immersive in-person experiences alongside digital interactions.What does omni-channel in luxury entail?Holistic customer profilesPersonalized shopping journeysBrands create centralized customer profiles that consolidate data from

81、 all channels,and employ AI&analytics to identify patterns.From product recommendations to content and in-store experiences,brands provide tailored service by accessing customers previous interactions at all touch points.Servicescape 2.0Brands are able to offer the same level of service online as th

82、ey could in the physical store,but enhance the experience with personalized interactions.Source:OptimizelyA focus on the integration of all channels&touchpoints of a brand to build a global,frictionless and customer-centric customer experience.Single channelMulti channelCross channelOmni channel23 2

83、024 Daxue ConsultingALL RIGHTS RESERVEDHow luxury brands incorporate hybrid commerce&phygital experiences The boundaries between digital&physical are starting to blur with omni-channel strategies altering the old practices of retail management while reimagining online sites to mimic live retail expe

84、riences thats frictionless,immersive and highly personalized.Vacheron Constantin leverages Tmall Luxury Pavilions one-on-one video consultation to create a salon VIP experience.3D visualization allows customers to closely examine&virtually try-on items in multiple dimensions with no special glasses

85、or additional app required.Creating immersive shopping experiences using digital technologiesTmall Luxury Pavilion innovates a one-on-one video customer consultation feature that allows sales associates to engage with customers in private sessions.Replicate the exclusive experience through private c

86、onsultationTraditional methods of product discovery that relied on editorials,videos and attractive visuals are now being complemented by cutting-edge technologies.Consumers can zoom in for detailed viewing of items from every angle on Bottega Venetas Tmall store.24Source:WeChat mini-programs 2024 D

87、axue ConsultingALL RIGHTS RESERVEDRetailtainment is transforming luxury shoppingExperiential marketing has become a trend,with luxury shoppers beginning to embrace sophisticated retailtainment featuring interactive displays,voice-activated and AR-enabled mirrors,and smart dressing rooms for unique e

88、xperiences.Multisensory shopping journey&customer engagement through smart technologiesStores turning into creative&experimental centers where immersive retail experiences create strong emotional connectionsMarking Tmall Pavilions 5th anniversary,Alibaba rolled out a rangeof metaverse upgrades,featu

89、ring technologies including an ARfashion show,a Meta Pass that confers priority digital access tobrands products,from Burberry to Bogner,as well as an immersiveextended reality(XR)exhibition to catch a glimpse of retails future.(Left)Diors Zhangjia Garden in Shanghai operates as a pop-upstore with e

90、volving themes;(Right)Beauty label Sisley openedits first Asia-Pacific Maison Sisley,which includes in-storecoffee shops and beauty salons,in Shanghai Zhang Yuan.25 2024 Daxue ConsultingALL RIGHTS RESERVEDHow luxury brands create personalized shopping experiencesIn Chinas dynamic market,a customer-c

91、entric approach is crucial for businesses to navigate evolving preferences and foster loyalty through personalized interactions,ensuring long-term relevance.Louis Vuittons WeChat mini-program enables customers to seamlessly schedule appointments with nearby stores by utilizing location pins.From pre

92、-ordering to finding items in-store,e-reservations,as well as scheduled or same-day delivery services,the diverse set of personalization offerings empowers customers to tailor their purchasing journey to their unique preferences and needs.Burberry offers a bespoke product customization service that

93、allows consumers to personalize items such as scarves,bags,and leather goods by embroidering their initials onto them.26Source:WeChat mini-program 2024 Daxue ConsultingALL RIGHTS RESERVEDBrands leverage omnichannel to streamline post-purchase servicesThe convenience of digital navigation has been br

94、ought to the services that historically required an in-person visit to a physical store.which reinvent the scope of luxury services and the way consumers engage with luxury brands in an omnichannel digital world.Chopard Watches(Left),Burberry(Middle)&Carven(Right)integrated post-purchase care such a

95、s cleaning,tailoring&maintenance on Tmall Luxury Pavilion where consumers can receive the same quality of service online as they do at physical stores.Brands are launching post-purchase services ranging from items cleaning&maintenance to product exchanges,adjustment,and replacement to give customers

96、 the ability to easily schedule whenever they need.“One-stop shop”luxury experience27Source:WeChat mini-programCrafting experiences through CRM 2024 Daxue ConsultingALL RIGHTS RESERVEDPersonal Information Protection Law(PIPL)ComplianceEnacted on Nov 1st 2021,Chinas Personal Information Protection La

97、w(PIPL)is the first law specifically regulating the protection of information in China.Companies must fulfill specific requirements&undergo security assessment to transfer or process the data of Chinese users and customers in their CRM systems.WhereMainland Chinaexcluding HK,Macao,Taiwan regions*tra

98、veling Chinese residents-so far no data transfer planned for such caseWhoAll residents in Chinanot only citizens,but also everyone residing in ChinaAll brands targeting subjects in China have to complyeven brands operating from overseasWhatRegulates the processing of Personal Information(PI)&protect

99、s an individuals rights&interestsPII:usual name,phone,ID,as well as biometrics&technical IDs allowing to pinpoint to an individual(IP address,login,client ID)2024 Daxue ConsultingALL RIGHTS RESERVEDData residencyRegulatory requirements enforced by PIPLChinas PIPL establishes standards for data resid

100、ency and the use of personal data,ensuring transparency,consent,and accountability in data processing practices.in China one cannot collect Clients Personal Identifiable Information(PII)in a Salesforce client service hosted in EuropePersonal Information should be stored in Mainland China firstPIPL r

101、equires consent to be obtained in a way that is clear,informed,and voluntary.For the collection or use of sensitive PI,consent is required to be obtained separately from consent for the use of general PI1.Individual consentInternational data transfernotifies the Cyberspace Administration of China(CA

102、C)of the transfer of personal information outside of China2.Validation of authoritiesmust be provided with clear and concise information about the purpose for which their personal information is being collected or usedA legitimate purposes 2024 Daxue ConsultingALL RIGHTS RESERVEDChina proposes easin

103、g of cross-border data controlsCAC has published the draft Provisions on Regulating and Promoting Cross-Border Data Transfers(the Draft Provisions)on September 28th,2023,to ease rules on the export of personal information and“important”data overseas,which will benefit multinational companies operati

104、ng in China.Security assessment by Cyberspace Administration of ChinaNormal PI 1,000,000PI protection certification by CAC approved third-party institutionStandard contract with a foreign data recipient in accordance with SCCsORNo mechanism requiredN/ACumulative since Jan 1st of previous year:Sensit

105、ive PI 10,000Normal PI 1,000,000Cumulative since Jan 1st of previous year:Sensitive PI 10,000Expected within a year:1,000,000Expected within a year:10,000 1,000,000Expected within a year:1,000,000Required cross-border data transfer mechanismsCurrent regulationsDraft regulationsSource:Dezan Shira and

106、 Associates 2024 Daxue ConsultingALL RIGHTS RESERVEDAdapting to local requirementsEstablishing local partnerships to seamlessly integrate a CRM system with the local market could help to avoid compliance risks,aiding in data management,customer engagement,and regulatory compliance.In China,brands op

107、t for alternative channels such as WeChat,RED,and Douyin to align with the consumer behaviors prevalent in the region,ensuring more impactful engagement with the local audience.Leverage data localization strategies to address variations in channel distribution.Partner with local expertise with a dee

108、p understanding of the Chinese market who can help navigate complex regulations,cultural differences,and unfamiliar business practices.Partner with International actors like Salesforce&Alibaba for tailored solutions.32Source:Salesforce 2024 Daxue ConsultingALL RIGHTS RESERVEDHow CRM enhances custome

109、r experience in ChinaCRM systems provide luxury brands in China with the tools and data needed to create highly personalized customer experiences.By leveraging customer data&building applications on top,luxury brands can tailor their marketing,communication,and offerings to meet the unique preferenc

110、es and expectations of their high-end clientele.Lead identificationExclusive experiencePost-purchase engagementTailored communicationData collection&analysisIdentify qualified leads based on private traffic:-Chinese search engine-Social media channels-E-commerce platforms-Advertising campaignsGather

111、ing extensive data on customers:-Preferences-Past purchases-Interaction history-Personal informationCustomized efforts including sending personalized messages&recommendations:-Mini-program loyalty program promotions-Product recommendationsVIC receive exclusive offers while others might receive perso

112、nalized incentives to make a first purchase:Luxury brands invite selected customers to exclusive events,product launches,or private shopping appointments through WeChat ecosystem.These invitations are tailored to the customers profile and preferences.-Early access-Exclusive promotions-Private events

113、-Free gifts33 2024 Daxue ConsultingALL RIGHTS RESERVEDCultivate customer relationship across each stage of the lifecycle Seamless integration across all touchpoints throughout the entire consumer lifecycle is essential to ensure a cohesive and personalized experience at each step of the customers pu

114、rchasing journey.Discovery PhaseConsiderationPurchase DecisionCustomer SupportPost-purchase Retention34 2024 Daxue ConsultingALL RIGHTS RESERVEDChinas CRM landscape&ecosystemGiven WeChats central role for many businesses,brands frequently channel traffic from other social platforms to WeChat,leverag

115、ing personalized customer service on WeChat to enrich the customer experience and effectively guides them towards making purchases on e-commerce sites.WeiboREDAdvertisementDouyinOffline store&e-commerceDrive trafficRecruit new members to private domainPUBLICITY HUBVideo ChannelsOfficial AccountWeCom

116、Member Center(mini-program)1V1Group ChatMomentDEEP INTERACTION HUBCONTENT HUBPRECISE COMMUNICATION HUBE-commerce cooperationIncrease customer retentionSales conversionDrive toPrivate domainE-commerce platformWeChatStoreDouyinStoreTmallJDMain social CRMSalesLead acquisitionOmni CRM operationData coll

117、ectionLoyalty programTagging&segmentsLifecycle communicationDashboard&report35 2024 Daxue ConsultingALL RIGHTS RESERVEDThe primary social CRM in China:WeChatWeChats ability to aggregate data from various channels,including WeChat MP,Video channels,and Official account,solidify its position as the pr

118、imary Social CRM in China.Why WeChat is a robust sCRM platform?DATA AGGREGATIONOFFICIAL SOCIAL CHANNELAs an all-in-one platform,WeChat aggregates data from various channels(MP,video channels,OA)for comprehensive customer insights,facilitating personalized communication.Official accounts,stores,and g

119、roups empower brands to cultivate direct interactions by leveraging their owned social followings,drawing from past interactions and user activities.ALL-IN-ONE PLATFORMCombines messaging,social media,payments,and business services within a single app,providing users with a seamless experience,making

120、 it a powerful tool for CRM.Luxury brands strategically use WeChat as a central platform to foster personalized digital relationships.Leveraging features such as Moments,video channels,official accounts,and Mini Programs,they create a seamless and tailored experience across multiple touchpoints.36So

121、urce:WeChat mini-program 2024 Daxue ConsultingALL RIGHTS RESERVEDCreating a frictionless WeChat commerce journeyThe platforms comprehensive,diverse features enable brands to offer a streamlined,end-to-end shopping experience encompassing the complete customer journey,which also helps foster stronger

122、 customer relationships and loyalty.Most luxury brands,including COACH,have employed chatbots for personal customer service roles to interact with their customers,answer questions,give advice,or handle complaints instantly.COACHs WeChat official account exemplifies a fundamental yet cohesive social

123、CRM system that facilitates a smooth customer journey.Upon subscribing to the account,each customer receives a welcome message guiding them to the brands WeChat Store,linked to the member center to bind their account with basic information registered on WeChat,and engage with personalized 1V1 custom

124、er service.37Source:WeChat 2024 Daxue ConsultingALL RIGHTS RESERVEDEnhancing customer engagement through WeChatThe WeChat ecosystem offers versatile clienteling features and facilitates seamless interconnection,guiding users effortlessly to different touchpoints.WeCom(or WeChat Work),often referred

125、to as a professional version of WeChat,facilitates personalized customer engagement by creating a unified and interactive ecosystem.Integration with WeCom unlocks personalized customer engagements.Brands tailor one-on-one interactions with customers through sales assistants,offering personalized con

126、tent,promotions,and assistance based on individual preferences.Weave tailored connections through Sales Assistants(SA).(Left)Specific SAs can be assigned to assist customers;(Right)WeCom allows brands to customize a professional Welcome Journey that guides users to engage with SA as well as explore

127、other provided entry points for more information and services.38Source:WeChat 2024 Daxue ConsultingALL RIGHTS RESERVEDMaintaining consumer relationships with WeComWeCom not only bridges the gap between communicating with clients on private traffic channels and offline retail stores but also streamli

128、nes personalized one-on-one engagement,enhancing efficiency towards achieving conversion goals.Key Performance Indicators(KPIs)now extend beyond traditional metrics,encompassing factors such as:-Number of customers on the sales assistants WeChat-Message volumes-Responsiveness of both customers and S

129、A-Transaction records(amount,total performance)Luxury brands cultivate personalized digital relationships through tailored messaging,exclusive content sharing,and targeted promotions,engaging customers one-on-one while offering bespoke recommendations based on individual preferences.WeCom Moments al

130、low employees to add personal touches on branded promotional content.39Source:WeChat 2024 Daxue ConsultingALL RIGHTS RESERVEDKey CRM features for customer retentionThrough the integration of personalized features,brands can craft a highly customized&responsive approach to customer engagement,which n

131、ot only enhances the overall customer experience but also fosters lasting loyalty,aligning seamlessly with the discerning preferences of luxury clientele.PRODUCT CUSTOMIZATIONPrivate consultationPersonalized recommendationZegna offers a personalized service by providing newly subscribed users with a

132、 QR code for a dedicated personal consultant.By analyzing the audience demographic data,interests,and behavior patterns on WeChat,customized campaigns can be developed to speak directly to them.Loyalty programFarfetch offers a standard tier-based loyalty program with membership tiers that differ by

133、monetary spending,the higher the tier,the more access to exclusivity and personalization.Exclusive discountsPriority customer careBirthday rewardExtended returnsPersonal styling40Source:WeChat mini-programs 2024 Daxue ConsultingALL RIGHTS RESERVEDFostering CRM through WeChat digital communitiesBy ef

134、fectively harnessing the power of digital communities,brands can foster stronger customer relationships and gain valuable insights into customer behavior and preferences.Burberry leverages WeChats mini-program to establish a digital community,enhancing engagement through social sharing.This initiati

135、ve targets younger digitally native luxury customers,fostering social interactions,sharing Burberry-related content within the program.The community space allows users to share any Burberry-related experiences,promoting brand loyalty and market positioning.41Source:WeChat mini-programABOUTVO2 ASIA P

136、ACIFIC.2024 Daxue ConsultingALL RIGHTS RESERVED+700CONSULTANTS80MREVENUE 2270%LARGE GROUPWHY VO2 GROUP.VO2 group is a global tech&digital consultancy.We unleash the transformative might of technologies to propel leading brands into an era of endless possibilities.2024 Daxue ConsultingALL RIGHTS RESE

137、RVEDTORONTOAMERICA(40)OPENED IN 2016EMEA(580)FOUNDED IN 2011APAC(80)ACQUIRED IN 2023BORN IN PARIS IN 2011NOW GLOBALMONTRALNEW YORKBRUSSELSLILLECASABLANCASHANGHAI&ASIA PACIFICPARISJERUSALEMGENEVE 2024 Daxue ConsultingALL RIGHTS RESERVEDWe are a digital consultancy driving transformative customer expe

138、riences through innovative technologies,marketing activations,CRM implementation,and data-driven solutions across Asia.Headquartered in Shanghai,We have a strong presence in both north Asia and southeast Asia.10+YEARS OF EXPERIENCE700+PROJECTS DELIVEREDVO2 ASIA PACIFIC.SINCE 201145 2024 Daxue Consul

139、tingALL RIGHTS RESERVED INTEGRATED DIGITAL AGENCY UX&IMMERSIVE STUDIO WEBSITES/APPS/PLATFORMS/ECOMMERCE/SOCIAL MEDIA FULLSTACK DEVELOPMENTSTRATEGY&INNOVATION INNOVATION STRATEGY DIGITAL STRATEGY INNOVATION ROADMAP IA LAB/WEB3 STRATEGY TECH FOR SERVICES&PRODUCTSOUR CLIENT CENTRIC END-TO-END EXPERTISE

140、SWHY VO2 GROUPBRAND EXPERIENCETECHNOLOGY&PLATFORMDATA&PERFORMANCECLIENT ENGAGEMENT SUCCESSMANAGEMENT HIGH-QUALITY,SCALABLE ARCHITECTURES,PRODUCTS,AND SERVICES,INTEGRATING THE MOST ADVANCED TECHNOLOGICAL SOLUTIONS TRACKING&PERFORMANCE DATA ARCHITECTURE DATA MARKETING COMPLEX API DEVELOPMENT CRM&MARKE

141、TING AUTOMATION DIGITAL FACTORIES FOR GLOBAL PROJECTS SALESFORCE SPECIALIST CRM OPERATIONS INFLUENCE(KOL/PR/LIVESTREAM)SOCIAL CAMPAIGNS TRADE ACTIVATIONS INTERNATIONAL TRANSFORMATION PROGRAMS CHANGE/GOVERNANCE/ADVISORY TEAMS DIGITAL/CRM/CONTENT FACTORY ROLL OUT OF CORE&OPERATING MODELS LEARNING EXPE

142、DITIONSVO2 2024 Daxue ConsultingALL RIGHTS RESERVEDINTERNATIONAL BRANDSLOVED CLIENTS 2024 Daxue ConsultingALL RIGHTS RESERVEDWE ARE HERE.Follow our insights or get in touch with us on WeChatWECHATLINKEDINhttps:/ 2024 Daxue ConsultingALL RIGHTS RESERVEDWe help companies uncover and harness hidden opp

143、ortunities in uncharted territory50Through our market research and strategy consulting,we equip businesses with the knowledge and guidance to achieve growth in APAC and beyondWe help companies uncover and harness hidden opportunities in uncharted territoryThrough our market research and strategy con

144、sulting,we equip businesses with the knowledge and guidance to achieve growth in APAC and beyondOrginally from China,covering APACAPAC PRESENCESouth Korea(Rep.office,Seoul)ChinaShanghai(HQ)BeijingHong KongVietnam(Rep.office,Ho Chi Minh City)Malaysia(Rep.office,Kuala Lumpur)JapanThailandIndonesia(Rep

145、.office,Fukuoka)Shanghai(HQ)Hong KongBeijingCHINA PRESENCEFounding in Beijing2000182 people8 people16 people201920222020Opening of Shanghai office(new HQ)Malaysia,Korea,and USA representative offices Opening of Hong Kong office40+people202120232024 2024 Daxue ConsultingALL RIGH

146、TS RESERVEDWho we areA China-based strategic research firm,specializing in client-centric solutions from market exploration to operational expansion.With offices in Shanghai,Beijing,and Hong Kong,along with representation in Singapore,South Korea,and France,our diverse team ensures comprehensive cov

147、erage for data collection and research across China and beyond.2024 Daxue ConsultingALL RIGHTS RESERVEDRESEARCH&INSIGHTSExpert interviewsCompetitive benchmarkingAlternative dataConsumer understandingMANAGEMENT&OPERATIONSLean managementHealthcare consultingEmployee engagement surveyCrisis managementS

148、TRATEGYMarketing strategyMarket entry strategyBusiness planLearning expeditionBRANDINGNamingBrand bookBrand positioningBrand activation toolkitWhat we doINNOVATIONOpen innovationLearning exhibitionStartup scoutingDemo Day400+clients since 2012 2023 Daxue ConsultingALL RIGHTS RESERVEDFollow our weekly insights or get in touch with us on WeChathttps:/ https:/ 21 5386 0380PEmail 2023 Daxue ConsultingALL RIGHTS RESERVED56