1、Decoding Luxury Marketing Milestones in China:Lunar New YearThe report showcases extensive case studies andbest practices on how luxury and premium brandsshould capitalise on the most important traditionalfestival in China Lunar New Year.2Table of contents01.Introduction02.Performance Overview03.Str

2、ategic Approaches04.The 2024 Outlook3Introduction01.IntroductionLunar New Year:An Overview.4Lunar New Year marks the commencement of a lunar or lunisolar calendar year globally.One of the most celebrated Lunar New Year festivals is rooted in the traditional Chinese lunisolar calendar,also known as t

3、he Spring Festival.This celebration is observed not only in China but also in other countries employing a similar calendar,such as South Korea and Vietnam,as well as in cities worldwide with a significant Sinophone community.Typically,Lunar New Year falls between January 21stand February 20thon the

4、Gregorian calendar.Following tradition,Chinese people initiate the celebrations on the 23rdor 24thof the last lunar month before the Lunar New Year,known as Little New Year(小年,Xiaonian).The New Year festivities culminate on the Lantern Festival on the 15th day of the 1st lunar month,symbolising the

5、arrival of spring.Consequently,celebrations of Lunar New Year typically extend for almost a month.The New Year embodies numerous beautiful meanings,expressed through various rituals and activities.For instance,firecrackers are set off in the hope of dispelling the calamities of the past year.The dec

6、oration with Chunlian seeks peace and harmony within the family.The distribution of red packets or enjoyment of New Years Eve dinner is an aspiration for prosperity in the year ahead.Most of these activities persist to this day.In China,a majority of the population enjoys at least seven days of publ

7、ic holidays for the Lunar New Year,which they also use to visit their family or travel elsewhere,resulting in one of the largest human migrations on a global scale known as“Chunyun”.China witnessed 4.73 billion passenger trips during the Lunar New Year festival in 2023.Introduction5The Lunar New Yea

8、r holds a special significance as the most traditional festival for Chinese consumers,serving as a foundational occasion for local shopping that many brands have harnessed for decades.Despite the prevalence of a plenthora of shopping events and local festivals,the Lunar New Year remains an opportuni

9、ty that luxury companies should not overlook.From a cultural perspective,brands can establish a strong connection with local consumers by crafting campaigns that highlight the festivals themes of family and togetherness,along with elements of good fortune or prosperity.Chinese characters symbolising

10、 luck and fortune,the Chinese zodiac animal of the year,and the colour red are frequently integrated into campaigns or exclusive products to celebrate the Lunar New Year.Moreover,this festival is a significant consumption milestone for the Chinese consumer.Similar to Christmas,many Chinese people pu

11、rchase food,new clothes,and household appliances in the lead-up to the festival season.Given the tradition of reuniting with family during this time,the Lunar New Year also represents a crucial gift-giving opportunity.Most companies distribute annual bonuses just before the Lunar New Year,encouragin

12、g individuals to indulge in personal shopping as a reward.Furthermore,Lunar New Year is not only a milestone in China but also on a global scale.In metropolises such as New York,London,and Paris,luxury stores and retailers launch Lunar New Year campaigns and introduce special offline installations.U

13、nlike other local milestones,exclusive collections for this festival are typically launched globally to resonate with the broader Chinese community and even Western audiences who appreciate Chinese culture.Considering this trend,DLG(Digital Luxury Group)teams up with Re-Hub to release the second edi

14、tion of Decoding Luxury Marketing Milestones in China,focusing on the Lunar New Year.This edition analyses the newest case studies and best practices in2024 and showcases the social and e-commerce performance of 95 luxury and premium brands during this milestone in 2023 toexamine how important this

15、festival is throughout the local luxurymarketing calendar.Lunar New Year:Implications for Luxury.6Lunar New Year has consistently been regarded as a strategic milestone for luxury brands,encompassing both branding and commercial perspectives.As the digital landscape evolves,presenting new opportunit

16、ies,brands concurrently encounter new challenges within the current context.Now more than ever,it is imperative for brands to gain clarity on establishing clear ambitions and goals,fostering the development of relevantstrategies for this milestone.These strategies aim to achieve success,whether in b

17、randing,commerce,or both.“Pablo MauronPartner&Managing Director ChinaDLG(Digital Luxury Group)“IntroductionExpert Opinion:Ad Verbum.IntroductionMethodology.7About the StudyThis study includes a representative sample of luxury and premium brands across Fashion,Footwear,Watches and Jewellery to demons

18、trate how 95 brands were faring on major Chinese e-commerce and social platforms during Lunar New Year in 2023,by comparing their performance during other milestones(including 520,618,Chinese Valentines Day,Singles Day).It also takes into consideration brand presence on the platform,and activity lev

19、els,with outliers excluded from the sample.Data PeriodLunar New Year:27th December 2022 27thJanuary 2023520:20thApril 21stMay 2023618:31stMay 20thJune 2023Chinese Valentines Day(Qixi):22ndJuly 22ndAugust 2023Singles Day:24thOctober 11thNovember 2023Channel CoverageSocial Media:E-commerce:WeChatREDWe

20、iboDouyinTmallSample of Brands95Luxury andPremiumBrandsFashion:Footwear:Watches&Jewellery:66.3%11.6%22.1%Flagship store Tmall Outlet(1)Tmall Global(2)(1).8 Tmall Outlet stores were included in the sample;(2).3 Tmall Global stores were included in the sampleIntroductionData Scope(1).8Based on the dat

21、a collected from the four major Chinese socialmedia platforms(WeChat,Weibo,RED,and Douyin),as well asfrom the brand-owned stores on Tmall,Re-Hub has identifiedseveral key metrics to measure the uplift and success of 95luxury and premium brands during the Lunar New Year of2023.Share of Voice:Re-Hub m

22、easures the share of voice by trackinguser-generated content(UGC)related to specific brands acrossWeChat,Weibo,RED,and Douyin,by using a combination ofbrand keywords,including Chinese names,English names,andnicknames,toensureaccuracy.Thetotalamount ofuser-generated content is calculated to determine

23、 the brands share ofvoice.Social Engagements:Re-Hub calculates social engagements byaggregating the number of engagements across all engagementtypes(excluding the number of reads)from brand-generatedcontent(BGC)on the four platforms.This metric provides insightsinto the level of interaction and enga

24、gement driven by the brandscontent.E-commerce Sales Uplift:Re-Hub analyses the daily net revenueof brand-owned stores on Tmall for the 95 luxury brands.Netrevenue is calculated by multiplying the daily units sold(excludingreturns,refunds,and cancellations)by the final unit price of eachproduct.Disco

25、unt Levels and Promotions:Re-Hub tracks product pricechanges and compares the discount levels during the Lunar NewYear of 2023 with other milestones.This information helps identifybrands that have offered attractive discounts and promotionsduring the festival.Overall,Re-Hub provides insights into th

26、e performance of luxurybrands during the 2023 Lunar New Year in China,consideringfactors such as share of voice,social engagements,e-commercesales uplift,discount levels by category.(1).All ranking and insights of this study are based on the period of data extracted from Re-Hub,and may vary from the

27、 brands actual performance across the platforms.9Performance Overview02.BGC Performance*.10Brand Distribution by BGC PerformancePerformance Overview-100.0%-50.0%0.0%50.0%100.0%150.0%200.0%250.0%300.0%350.0%BGC PerformanceBGC Performance Uplift vs.Other MilestonesFashionFootwearWatches&JewelleryMoose

28、Knuckles(582.0%)Dunhill(2114.0%)The overall BGC performance during the 2023 Lunar New Year saw an increase of 13.7%compared to the average performance of other milestones.RogerVivierJil SanderGraffGucciPradaMulberryBoucheronChopard*BGC:Brand-Generated ContentBGC Performance.11Brand Distribution by P

29、erformance UpliftPerformance Overview45.3%14.7%40.0%Overperforming(+10%)Stable(10%)Underperforming(-10%)With substantial investments in celebrities,creative content,and exclusive product campaigns,60.0%of our sampled brands showed increased or stable performance during the Lunar New Year measured in

30、 terms of BGC.As Chinas marketing calendar becomes increasingly saturated,not every brand possesses the resources to leverage every milestone.In comparison to industry powerhouses,medium and small-sized brands exhibit a more significant surge in BGC.Celebrities consistently prove to be effective ass

31、ets in resonating with the local audience.Beyond star-studded festival campaigns,celebrity appearances during events and festival galas are frequently repurposed in brand-owned content to drive awareness and engagements.12Performance OverviewExpert Opinion:Ad Verbum.The Lunar New Year stands as a pi

32、votal test for brands to cultivate significant engagement and conversations during a time traditionally reserved for family gatherings and celebrations.To resonate with their audiences,brands must craft campaigns that seamlessly blend the essence of Lunar New Year with their fundamental brand values

33、,strategically leveraging influencers to amplify their message.“Max PeiroCEORe-Hub“UGC Performance.13Brand Distribution by UGC PerformancePerformance Overview-100.0%-50.0%0.0%50.0%100.0%150.0%200.0%250.0%300.0%350.0%400.0%UGC PerformanceUGC Performance Uplift vs.Other MilestonesFashionFootwearWatche

34、s&JewelleryDunhill(3476.1%)The overall UGC performance during the 2023 Lunar New Year saw a decrease of 21.6%compared to the average performance of other milestones.BulgariPiagetLonginesBurberryRalphLaurenChristianLouboutinMiu MiuSaintLaurentPanerai14Brand Distribution by Performance UpliftPerforman

35、ce Overview27.4%14.7%57.9%Overperforming(+10%)Stable(10%)Underperforming(-10%)UGC Performance.As a public holiday,consumers tend to prioritise quality time with family or travel during this period,leading to reduced activity on social media,thereby negatively impacting brands UGC performance during

36、this milestone.Jewellery brands such as Bulgari,Piaget witnessed a surge in word-of-mouth during Lunar New Year.Consumers tend to purchase gold jewellery for good luck for the upcoming year,and share their purchases and product reviews on social media.During every Spring Festival,luxury brands adorn

37、 giant holiday-themed installations or refurbish their window displays.This strategy has proven to be an effective means of generating word-of-mouth through visually striking presentations and interactive experiences.-100.0%-50.0%0.0%50.0%100.0%150.0%200.0%E-commerce RevenueE-commerce Performance Up

38、lift vs.Other MilestonesFashionFootwearWatches&JewelleryE-commerce Performance.15Brand Distribution by E-commerce PerformancePerformance OverviewThe overall e-commerce performance during the 2023 Lunar New Year saw a decrease of 5.6%compared to the average performance of other milestones.CanadaGoose

39、MonclerCartierTotemeThomBrowneGucciVan Cleef&ArpelsAmi ParisTag HeuerCoach16Brand Distribution by Performance UpliftPerformance Overview26.3%12.6%61.1%Overperforming(+10%)Stable(10%)Underperforming(-10%)E-commerce Performance.In alignment with the winter sales in Western countries,many niche or acce

40、ssible luxury brands also offer promotions on marketplaces ahead of Lunar New Year.Brands,including Ami Paris and Thom Browne,achieved high double-digit uplifts through strategic discounting.Lunar New Year emerges as a significant gift-giving occasion,not only among lovers but also for parents and f

41、riends.We observed that best-selling products encompass watches and jewellery,along with lower-priced gifts such as scarves and perfumes.Surprisingly,only 26.3%of sampled brands recorded a surge in Tmall revenue during the Lunar New Year.However,it is crucial not to overlook the impact of logistic s

42、ervice disruptions during the holiday and the consumer inclination to offline shopping during this period.17Performance OverviewExpert Opinion:Ad Verbum.As the e-commerce landscape matures,a discernible acceleration in online luxury consumption emerges.While online platforms provide consumers with a

43、 comprehensive understanding of products,its crucial to note that offline channels continue to dominate the luxury industry.During Lunar New Year,luxury brands intensify their focus on branding-oriented marketing activations.This results in a more pronounced trend of investing in Out-of-Home adverti

44、sing compared to other milestones.These milestones such as Qixi,conversely,lean towards a more conversion-driven approach with a heightened emphasis on digital investment.“Willi SunHead of Advisory,Consumer&RetailKPMG China“18Performance OverviewOverall Performance.BGCThe overall BGC performance dur

45、ing the 2023 Lunar New Year saw an increase of 13.7%compared to the average performance of other milestones of 2023.E-CommerceThe overall e-commerce performance during the 2023 Lunar New Year sawa decrease of 5.6%compared to the average performance of other milestones.UGCThe overall UGC performance

46、during the 2023 Lunar New Year saw a decrease of 21.6%compared to the average performance of other milestones of 2023.19Strategic Approaches03.Planning:Performance Evolution.20Evolution of UGC,BGC,and E-commerce Performance during the 2023 Lunar New YearStrategic Approaches007000.511.522.

47、533.544.552022/12/272022/12/282022/12/292022/12/302022/12/312023/1/12023/1/22023/1/32023/1/42023/1/52023/1/62023/1/72023/1/82023/1/92023/1/102023/1/112023/1/122023/1/132023/1/142023/1/152023/1/162023/1/172023/1/182023/1/192023/1/202023/1/212023/1/222023/1/232023/1/242023/1/252023/1/262023/1/27E-comm

48、erce RevenueMillionBGC/UGCMillionBGCUGCRevenueMilestoneNew YearHolidayLunar New Year HolidaySocial*1stwave ofcomms(Products)2ndwave of comms(Celebrities+Products)3rdwave of comms(Celebrities+KOL)Celebrities exposure(mostly by UGC)ECTmall Lunar New Years Shopping Festival:1stWaveTmall LNYs ShoppingFe

49、stival:2ndWaveTmall Non-stop LNYs Shopping Festival(*Certain logistic services were not available in certain areas during this period.)*This schedule is for illustrative purposes only and does not specifically refer to any particular brand.Planning:Key Takeaways.21Strategic ApproachesCampaignLaunchW

50、aves ofCommunicationsInfluencerMarketingE-commerceActivations Brands typically launch theirNew Year campaign at the endof December Lunar New Year campaignsoften span over a month,depending on the specific dateof the festival In addition to online channels,brands also set up pop-upspaces and festival

51、 installationoffline,which require additionalpreparation time The novelty release scheduleon e-commerce may notperfectly align with socialmedia.Online marketplaces such asTmall and JD.com will launchshopping festivals during themilestone,providing brandswith opportunities for theirLunar New Year pro

52、ductlaunches Unlike other milestones,numerous brands often initiatewaves of communicationsbefore the Lunar New Year tomaintain their SOV during thismonth-long period Brands need to allocate theirchannel investment and assetsto achieve the optimalcommunication impact Celebrities are the mosteffective

53、 assets for driving BGCperformance Depending on thecommunication cadence,different tiers of KOL resourcesneed to be leveraged toachieve branding/commercialgoals22Strategic ApproachesExpert Opinion:Ad Verbum.The marketing calendar in China presents brands with numerous occasions to consider.The pleth

54、ora of seemingly attractive opportunities can be distracting.In the era of optimisation,it is crucial to be strategic in selecting and executing activations from creative and key messages to channels and investment allocation.The key is first setting clear and focused objectives and KPIs to set what

55、 success looks like,and the reality is that for each brand that is going to look different.“Iris ChanPartner&Head of International Client DevelopmentDLG(Digital Luxury Group)“Planning:Influencers.23Strategic ApproachesCase Study:GucciThis Lunar New Year,Gucci featured Chinese celebrities Xiwei Tian

56、and Yiran Zhou in its festival campaign,which was released on RED on December 27th with the hashtag#跟古驰欢乐过年(Celebrates New Year with Gucci).The brand created this hashtag on RED in 2019,and all branded posts related to Lunar New Year,as well as relative content co-creation with KOLs,are tagged with

57、it.Unlike other brands that create new hashtag(s)for each New Year,this hashtag has been associated with the brand for four years,accumulating a total of 15.8 million views and including contents from 2,270 accounts.It now stands at the fourth-highest viewed hashtag related to Gucci on RED.Number of

58、 Posts and Total Engagement under the Hashtag*Hashtag PageBrand PostKOL PostKey TakeawaysOn a planning level,brands need to ensure that KOL contents wellcomplement with their brand-owned content to keep the momentumcontinue to build through out the milestone.Nowadays,brands tend to collaborate with

59、influencers from various fieldsto broaden their reach and approach their festival campaign in differentperspectives.(1).KOL posts only refer to brand-sponsored KOL notes facilitated through or reported on Pugongying*Data source:Xinhong0200030004000500027-Dec29-Dec31-Dec2-Jan4-Jan6-Jan8-Ja

60、n10-Jan12-Jan14-Jan16-Jan18-Jan20-Jan22-Jan24-Jan#of PostsEngagementsEngagementsPosts PublishedBrand PostKOL Post(1)Product Strategy:Exclusive Collection.24Strategic ApproachesLaunching limited collections for festivals is an essential tactic that luxury companies adhere to in order to resonate with

61、 local markets.Going back decades,the Lunar New Year exclusive collections were likely the first China-exclusive collection that the majority chose to launch for this market.Today,the trend continues.Almost all brands will launch festival-exclusive collections or products during this period such as

62、a complex timepiece with movements embroidered in a Chinese zodiac pattern,a red scarf with Chinese character printing,and mahjong tiles encased in a delicate leather briefcase.By appropriating traditional Chinese symbols,luxury brands aim to show their recognition of local culture,thereby driving c

63、onversations and actual conversions.However,Chinese consumers are evolving,and young luxury shoppers may not be keen to splurge on T-shirts with animal prints that will quickly go out of season.Interpreting Chinese culture in an elegant,subtle way has become a real challenge for these Western brands

64、.Loewe Lunar New Year 2024 Jade CollectionAfter featuring antique Chinese ceramics in its Chinese Monochrome collection,Loewe tapped into Chinese craftsmanship again on the occasion of the Year of the Dragon with the launch of the Jade collection.The brand collaborated with three master jade carvers

65、,each creating five limited jade pendants,and redesigned the classic Flamenco Purse inspired by ancient jade carvings.17.6M+Views under thecampaign hashtagon Weibo(1)(1).Data collected as of January 30,2024Case Study:IWC Schaffhausen.25Portugieser Automatic 40 Chinese New Year EditionKey TakeawaysIt

66、s important to leverage a signature model to conceptualisethe special edition for Lunar New Year,in order to capitaliseon the strong market recognition to promote the launch.Connecting with todays consumer goes beyond mere repurposing of Chinese iconography;brands should go the extra mile by combini

67、ng their craftsmanship and DNA to provide a unique interpretation of Chinese culture.Strategic ApproachesBack in November 2022,IWC Schaffenhausen announced the launch of the IWC Portugieser Automatic 40“Chinese New Year”Edition in celebration of the Chinese Year of the Rabbit in a limited edition of

68、 500 pieces available worldwide,The timepiece is derived from the classic Portugieser Automatic 40 model and features a burgundy dial and gold-plated hands and appliques.To echo with the zodiac sign,the gold-plated rotor is shaped like a rabbit.Its sapphire glass case back is engraved with the words

69、“2023 YEAR OF THE RABBIT”。Revenue Contribution by Products(1)(1).Data collected from December 27 2022 to January 27 2023Top 1,25.9%Top 3,5.9%Top 4,5.3%Top 5,4.9%Rest of Models,49.3%Dragon Year Exclusive,8.7%600+favouritesearned on thefirst day oflaunch on TmallTop 2best-sellingproduct for thebrand o

70、n Tmall26Expert Opinion:Ad Verbum.Drawing inspiration from the rich tapestry of local culture to enchant consumers on native soil stands as the litmus test for the design prowess of luxury brands.They should eschew mere appropriation of zodiac signs and Chinese iconography,instead extracting element

71、s and nuances that evoke mutual resonance through a deep understanding of Chinese aesthetics.These are then transmuted into the brands unique interpretation,resulting in meticulously crafted design offerings.“Christy YenGroup Creative Director(China)DLG(Digital Luxury Group)“Strategic ApproachesProd

72、uct Strategy:Seasonal Novelty.27Strategic ApproachesIn addition to launching exclusive New Year products,brands can also capitalise on this momentum by releasing new seasonal collections or other limited capsule collections that may not be related to the festival.January and February are typically t

73、he months when luxury brands introduce their Cruise or Spring/Summer collections.As the Lunar NewYear usually coincides with Valentines Day,many brands will also promote their Valentines collection around this milestone.This year,we also observed several limited editions and crossover collaborations

74、 emerging.Brands can further leverage on the festive shopping spree with the aforementioned new collections.In our observation,the Lunar New Year collection accounted for only a small portion of the best-selling novelties.BalenciagaSoccer 24 CollectionCanada GooseCanada Goose x BapeCollectionGlashtt

75、e OriginalLady Serenade Valentines Edition28Expert Opinion:Ad Verbum.Novelty launches during Lunar New Year are rarely the key revenue drivers for brands,instead we see an uplift in core SKU revenues around the festival.This doesnt mean that capsule releases dont play a role they help bring newness

76、and excitement to a brand.Balancing investment of topline awareness channels with New Year capsules/campaigns,but existing customer conversion channels through performance marketing with hero products can yield optimum results.“Thomas PiachaudHead of StrategyRe-Hub“Strategic ApproachesProduct Strate

77、gy:Evergreen Products.29Strategic ApproachesDespite Lunar New Year being an important window for new product launches,evergreen pieces continue to exhibit strong traction among consumers.In our research,total sales of top 10 evergreen products from the sampled brands represented 373.0%of total top10

78、 novelty sales during the 2023 Lunar New Year.Several categories outshone others during this milestone.Firstly,outerwear brands demonstrated significant growth compared to other milestones.For example,Canada Goose and Moncler exhibited the highest e-commerce uplift among all sampled brands.Additiona

79、lly,handbags were the most popular category during Lunar New Year,occupying 24 spots in the top 50 best-selling evergreen products.Watches and jewellery fared well.Van Cleef&Arpels Alhambra necklace took the top spot.Although these products were not specifically launched for Lunar New Year,they were

80、 extremely well-received by local consumers,as their design elements such as gold and carnelian echoed festival iconography.On RED,there is a lot of UGC introducing the auspicious connotations behind the brands different coloured gemstones.Case Study:Van Cleef&ArpelsRevenue Contribution by Products(

81、1)Rest ofproducts,46%Top 4best-sellingproducts,54%(1).Data collected from December 27 2022 to January 27 2023These four products ranked first,second,sixth and eighth among the best-selling evergreen products among our sampled brandsrespectively.Product Strategy:Discounting.30Strategic ApproachesAt o

82、ne time,luxury brands were wary of Chinas online shopping festivals,such as Singles Day,as they are closely associated with discounts.Some brands,in alignment with the Western market,traditionally reserved discounts for only two seasons a year June/July and December/January.As a result,the shopping

83、spree before Lunar New Year has emerged as a significant milestone for luxury brands to leverage markdowns,both online and offline.Given the subdued consumer confidence of Chinas middle class,stimulating consumption through discounts has become an expedient to activate this segment of consumers.This

84、 January,even Apple,which rarely offers discounts on new products,provided discounts for certain models on its official site.Among our sample,niche and accessible luxury brands,such as Lanvin and Thom Browne achieved a significant uplift during the Lunar New Year of 2023 through end-of-season sales.

85、This January,we also observed over 50brands offering seasonal discounts on Tmall Luxury.Case Study:Lanvin(1).Data collected from October 22 2022 to January 27 2023,at three-day intervals0%10%20%30%40%50%60%70%80%22-Oct25-Oct28-Oct31-Oct1-Nov4-Nov7-Nov28-Nov1-Dec4-Dec7-Dec10-Dec13-Dec16-Dec19-Dec22-D

86、ec25-Dec28-Dec31-Dec1-Jan4-Jan7-Jan10-Jan13-Jan16-Jan19-Jan22-Jan25-JanDiscount Trend on Lanvins Tmall Store(1)%of Products on Discount Avg%of Price DifferenceNDuringNov 10thto 25th,noproductswere ondiscount20222023Key TakeawaysBrands that have already introduced markdowns on Singles Day can adjust

87、the width and depth of the discount to further boost conversion during New Year.For brands that never offer discounts,marketplaces have provided a variety of options to stimulate consumers,such as vouchers and discounted top-ups.User Experience:Red Packet.31Strategic ApproachesIn 2019,WeChat introdu

88、ced customised red packet function.Soon,brands recognised this feature as an exceptionally effective marketing tactic during the Lunar New Year.The red packet has become a digital collectible as users eagerly visited brands Official Accounts to acquire and share with their contacts.It also become a

89、relevant channel for brands to showcase their creative ideas.According to Tencent Marketing Solution,over 30 luxury brands has participated in the Lunar NewYear red packet advertising programme in 2023.Today,the platform provides brands with various ways to distribute their red packets across touchp

90、oints within the WeChat ecosystem Search,Mini Program,Channels,etc.Moreover,this tactic not only impacts consumers at the top of the funnel,Many brands use red packets to attract consumer to onboard their loyalty program,enabling targeted communications with these consumers evenafter this milestone.

91、New WeChat Red Packet Features in 2024OmegaGacha Game Moment AdsThe MacallanEaster Egg Channel Ads4.5X12XOf the averageclickthrough rate ofoverall Moment Ads*Of the averageclickthrough rate ofoverall Channels Ads*Data source:Tencent Marketing Solution,the data is compared to the luxury industrybench

92、marks and does not refer to the actual performance of the example brands32Expert Opinion:Ad Verbum.During Lunar New Year,a socially vibrant milestone in China,users can grasp a brands tone and equity by receiving,sharing,and using the brands red packets on WeChat.This enhances their affinity towards

93、 the brand.Simultaneously,this tactic connects various touchpoints within the WeChat ecosystem,in both the public and private domain,including Official Accounts,Channels,and Search.The behavioural data derived from engagements and social activities will become valuable assets for the brands,empoweri

94、ng subsequent operations at the bottom of the funnel and data-driven marketing efforts.“Akie FengAccount Director of Luxury IndustryTencent Marketing Solution“Strategic ApproachesUser Experience:Store Design.33Strategic ApproachesChinas online marketplaces not only exert a significant impact on the

95、purchasing stage in the consumer journey but also play a crucial role at the top of the funnel,where consumers begin exploration of a brands universe and storytelling.This is why content marketing has become pivotal for activating e-commerce channels.Beyond showcasing traditional content formats on

96、these platforms,store design during local milestones serves as a means to present a brands image while effectively driving engagements.During the Lunar New Year,almost every brand on Tmall will revamp or optimise the design of their homepage,product detail page,menus,and search result page to align

97、with the brands campaign key visual while resonating with the local audience.According to Buy Quickly,engaging store design can yield a 2030%uplift in click-through rates during festivals.In a special year like the Year of the Dragon,brands can leverage this iconic Chinese iconography,and integrate

98、it with their own brand DNA,to exhibit a nuanced and relevant understanding of local culture.Ami ParisTmall StoreBulgariTmall LuxuryStageStoreCartierMini Program34“Mark ZhangHead of Operation CenterBuy Quickly“With changes in the consumer landscape,e-commerce platforms have become more than just a t

99、ransactional channel in recent years.Brands now can continuously optimise the alignment of creative assets with the target audience by tracking the data of ad placements.For consumers,the online experience covers the journey from awareness to purchase.Through creative content presented on e-commerce

100、 channels,brands communicate their brand story and philosophies to consumers.This approach better engages with consumers,enhancing their awareness and affinity towards the brand.Expert Opinion:Ad Verbum.Strategic ApproachesUser Experience:Mini Program.35Strategic ApproachesThe Mini Program serves as

101、 an important touchpoint for brands within the WeChat ecosystem.It can offer services such as e-commerce and loyalty programme at the bottom of the funnel,while allow brands to provide practical or entertainment experience to drive awareness and interest.Many brands choose to leverage Mini Programs

102、during major milestones,to communicate their holiday collections or products.For instance,Louis Vuitton has a dedicated tab on its Mini Program store,curating a series of gift recommendations for the upcoming Lunar New Year and Valentines Day.This Mini Program also offer customised gift card and 1-o

103、n-1 consultation services.Brands can also introduce interactive Mini Program to drive engagement.Diors Lunar New Year Mini Program,allow consumers engage with the Dior butterfly iconography through touch and voice interactions to acquire branded digital collectibles such as red packet and wallpapers

104、.Louis VuittonDedicated Gifting StoreBottega VenetaLunar New Year Campaign MPDiorInteractive experience36The 2024 Outlook04.Macro Outlook of Luxury in China.37The 2024 Outlook04ElevatedExperienceA growing number of VIC-dedicated spaces for top brandsco-launched with major malldevelopersMore meaningf

105、ul phygital experiences will be introduced in-storeThere is an increasing interest in hospitality experiences for luxury brands to acquire customers from all walks03DeeperGeo-expansionLuxury brands will continue to expand in provincial centres while enhancing their flagships in top metropolitansHain

106、ans Closed Customs in 2025 will urge brands to make a further presence on this FTPPossible expansion in duty-paidtravel retail channels in majormainland hub airports02OutboundTravelAnnual spending on outbound travel is still far below pre-pandemic levelsOutbound travel is expected to pick up in 2024

107、 with more visa waiver programmes on the wayWith more well-heeled consumers shopping abroad,the growth inmainland China luxury consumption is facing a slowdown01ConsumersConfidenceThe luxury recovery in mainland China has not reached to theexpectationConsumer confidence in Chinasmiddle class is damp

108、eningHNWIs are still resilient andgrowing;however,their consumption will outflow more to the western marketProduct Strategy.38The 2024 Outlook04DiscountingBrands with internal(Financial)or external pressures(Grey Market)are likely to offer more aggressive markdownsThe overreliance on shopping festiv

109、als to generate sales will only contribute to accelerating this trend.This boost of short-term revenue comes with a long-term impact on brand equity,discountsshould be use as an exceptionrather than a rule03PricePolarisationRevenue growth is being consolidated in both entry-level and premium price r

110、angesUnderstanding the optimal price points will be essential to generaterevenue growthBrands with ambiguous positioning between entry-level and premium price segments are expected to face challenges02ValuePerceptionThe perception of valueinvestment is crucial forconsumers amid economicuncertaintyHi

111、gh-priced items are anticipatedto reap the benefits of this consumer mindsetProduct with aggressive pricehikes or significant price gaps in/out of China are more likely toencounter significant hurdles01ProductPillarsPrioritise building strong productpillars around key categories orcollectionsIdentif

112、y early signs of a downturn and facilitate a smooth transition into new pillars Closely monitor market trendsand consumer preferences toseize emerging opportunitiesDigital Guidance.39The 2024 Outlook04CRMBrands should capitalise on thefull WeChat ecosystem capability(clienteling,loyalty programme,li

113、fecycle communication)as thebackbone of their CRM strategyWeChat CRM strategies should be paired with a well established CRM infrastructure and local expertise03OperationsOptimisationOptimisation on existing business should be adopted after the high-flying yearsThere is still gaps in crtical areassu

114、ch as performance marketingoptimisation or online storeoperation rigor02E-commerceMarketingLuxury brands should leveragemarketplaces as marketingplatform beyond the sole focus onGMVIntroduce compelling experienceto allow audience to experiencethe full brand universeThese platforms also should playa

115、role in informing offlineconsumers digital journey01OnlinePresenceBrands should make their e-commerce presence on bothTmall and JD.comDouyin appears to be more andmore a relevant social channel forluxury,but not on a e-commercelevelLuxury brands are start to buildtheir second RED account forcertain

116、category40Expert Opinion:Ad Verbum.After the spectacular growth experienced in 2020-2021,Luxurybrands are facing a far more challenging environment in 2024.To address this challenge,many are already expending across JD.com and Tmall,upgrading the role of these marketplaces towards stronger storytell

117、ing touchpoints,and shifting their focustowards optimisation.One of the biggest opportunities for mostluxury brands remains a significant upgrade and localisation of their CRM capabilities in China,to harness the power of WeChat to build successful SCRM programs and maximise the value of existing cu

118、stomers,at a time when the importance of VIC cannot be understated,while new customers acquisition has become so much harder.“Jacques RoizenManaging Director,ConsultingDLG(Digital Luxury Group)“The 2024 Outlook41About UsDLG(Digital Luxury Group)is the leading independent digital agency for luxury br

119、ands,and offers consulting,social media,e-commerce,creative and CRM services.With offices in Geneva,Shanghai and New York,it has developed a unique expertise in defining and implementing impactful digital strategies that target sophisticated consumers through a combination of technological know-how,

120、creativity and luxury savoir-faire.Contact UsPress&Media EnquiriesIris ChanPartner&Head of International Client Developmentichandigital-Pablo MauronPartner&Managing Director Chinapmaurondigital-Alexander WeiResearch Directoralexanderweidigital-Business Enquiries42About UsRe-Hub helps luxury and prem

121、ium brands in China to generate online growth opportunities at speed.Through COMPASS,our proprietary data and AI platform,we deliver actionable insights to help brands gain clarity,alignment,and direction on their digital strategy.We focus on answering key business questions across the 3 pillars of

122、e-commerce,merchandising and marketing,covering the full spectrum of China digital ecosystem.We help brands to:Benchmark your performance against competitors across channels Identify performance gaps and opportunities to prioritize Generate new growth opportunities at speedContact UsMax PeiroCEOmaxr

123、ehub.techThomas PiachaudHead of Strategythomasrehub.tech43ContributorMario Juarez(DLG)Pablo Mauron(DLG)Max Peiro(Re-Hub)Thomas Piachaud(Re-Hub)Alexander Wei(DLG)Dawn Zhang(DLG)DesignerMiranda Islas G.We would especially like to thank colleagues from Buy Quickly,KPMG,Tencent Marketing Solution for their in-depth insights and the special contribution to the report.For more information,please visit and www.rehub.techCopyright 2024 DLG(Digital luxury Group).All rights reserved.