Millennium Generation Buys Luxury Goods Eight Times A Year Tencent Releases Luxury Consumption Insight Report

"Last year, luxury goods in mainland China sold 142 billion yuan! Millennials are becoming the main force of luxury consumption, and social shopping is rising rapidly in the luxury industry.".

In the afternoon of October 19, 2018, Tencent advertising marketing service line stay Shanghai Held“ Luxury above, extraordinary insight "Luxury Industry Marketing Summit , first disclosed Important insights into the interpretation of luxury trends 。 At present, Tencent has a full flow platform, including WeChat, QQ, Tencent Video, etc., which can be said to occupy 50% of the time of Chinese netizens.

The summit attracted more than 50 luxury brands and 200 guests. At the summit, on the opportunities and challenges of luxury marketing in the social media environment, fashion Mr. KOL Bao, a senior media person and former ELLE new media content leader Zheng Miaomiao, the founder and CEO of D1M Yao Yue, and Tencent advertising marketing service line director Song Qiong had in-depth exchanges and discussions.

Digital marketing in the luxury industry has entered a white hot period, and the key to stimulating consumption by brands is to accurately capture the consumer population. Luxury consumption "upstarts" have their own buying habits and behavior, and they "prefer the season and fashion" , "more trust the recommendation of friends" and "What you want now". Tencent advertising marketing is opening up its core capabilities such as traffic, technology and data to help luxury customers customize marketing solutions and achieve digital transformation, so as to help luxury brands communicate with users, achieve social transformation and conduct service management.

It is worth noting that nearly 50 luxury brands have opened small programs, 76% of which have sales conversion capability. As a key part of the WeChat ecosystem, the role of applets has become increasingly prominent. Applets are playing an important role in tapping the potential of social e-commerce. The brand can use the applet to establish the "official brand mall", and achieve a series of business goals such as brand awareness, user precipitation, efficient transformation, fan diversion, etc. through the diversified product capabilities of the applet.

With Dior In 2016, Tanabata sold handbags on WeChat for the first time as a key time node, and the digital marketing of the luxury brand Tanabata entering its third year is becoming mature and large-scale. According to the statistics of Fashion Toutiao, at least 15 representative luxury brands launched limited products on Qixi this year. Among them, 10 brands set up special small program time limited stores for the Tanabata series, which became the biggest highlight of luxury brand Tanabata marketing this year.

With the shift of luxury marketing to online, especially with the support of WeChat ecological big data, brands are more convenient to track marketing effects. According to the exclusive data provided by WeChat official to Fashion Toutiao, the most prominent brands in the luxury Tanabata marketing data this time include Dior and Burberry, whose likes rate is far higher than the industry average, and Cartier, whose total interactive click through rate is far higher than the industry average.

The latest data shows that, Applet The daily active users have exceeded 200 million. Tencent also said recently that it will actively invest in smart retail. As WeChat increases the commercialization of small programs, the online potential of luxury brands will have greater imagination. After all, the essence of luxury consumption is also social.

Among many luxury marketing methods, content is being placed at the core by brand merchants. Mr. Bao believes that the reason why KOL's content can be "planted grass" for consumers is rooted in the accurate grasp of readers' consumption needs, which should be considered from multiple dimensions such as product quality, use experience, celebrity endorsement, and fashion trends. Finally, Zheng Miaomiao mentioned that the influence of WeChat has a great explosive force, giving the brand the opportunity to reach a larger consumer group, and also testing the brand's ability to deliver influence.

Some analysts pointed out that the uncertainty of global luxury retail has led to more results oriented marketing, and today's readers and luxury brands are becoming more sophisticated. The increasingly obvious trend is that as more and more brands begin to embrace youth, the logic of luxury advertising is: where young people are, the advertising target is.

The luxury market in mainland China has reached 142 billion yuan, and the online growth rate is far higher than the offline growth rate

"The recovery of China's luxury goods market is obvious". In 2017, the sales of luxury goods in mainland China reached 142 billion yuan, with a year-on-year growth of 21%, sweeping away the sluggish growth in the past few years, and the growth rate is far higher than the global average and the world's major consumer markets, with broad prospects for development.

Among them, the growth rate of sales revenue of cosmetics, jewelry and women's wear is leading, with growth rates of 28%, 27% and 24% respectively in 2017. Such high growth mainly comes from the growth of online channels and young consumer groups.

It is easy to see that online consumption has become a new development trend in the luxury industry. According to statistics, the proportion of online consumption increased from 6% in 2015 to 9% in 2017. In 2017, China's online sales of luxury goods reached 12.8 billion yuan, a year-on-year increase of 43%, far exceeding the growth rate of 19% offline.

Millennials buy luxury goods 8 times a year on average, and rely more on digital channels to learn information

Youth is capital, and youth is incremental market. This is increasingly evident in the field of luxury consumption. According to the World Luxury Association, the average age of Chinese luxury consumers has dropped from 35 to 25.

Millennials (born between 1983 and 1997), currently aged between 21 and 35, have become luxury goods market The main driving force of growth, its consumption behavior also presents new characteristics: buying luxury goods earlier and more frequently. In 2017, the average number of luxury purchases of the millennial generation reached 8, while other people only bought 5, truly becoming the "new rich" in the luxury industry.

Of course, consistent with the word "young", millennials prefer "trendy" and "seasonal" luxury goods. The products should be the latest and trendy, and the purchase speed should be faster and more convenient. At the same time, they rely more on mobile phones and other digital channels to understand luxury information.

Social e-commerce boom Tencent helps luxury marketing transformation

The rapid changes in market environment, media and consumption demand have hastened the birth of Luxury industry With the new trend of future development, digital marketing has become the key to transformation and upgrading.

1. Social reputation becomes the primary factor influencing purchase

Under the influence of social media, word of mouth has surpassed traditional media such as magazines and become the primary factor influencing the decision to buy luxury goods.

Tencent's advertising marketing service line has rich traffic scenarios such as social networking, information, search, application and advertising. The advertising form and experience continue to innovate, helping brands strengthen communication with consumers, stimulate community effects and improve transformation efficiency.

2. The rapid rise of social shopping

Social shopping shows new growth. Social shopping currently accounts for 11% of China's online luxury sales, far higher than the 2% level in European and American countries.

Tencent's advertising marketing service line provides an overall delivery plan driven by insight, builds a brand owned small app e-commerce, and uses Tencent's traffic capacity to clarify business objectives, improve transformation effects, and finally achieve the integration of product and efficiency.

　 3. Purchase faster and more convenient, and the shopping experience should be smooth

Millennials prefer "current season" luxury goods, and purchase them quickly and conveniently. Any unsmooth shopping experience will result in the loss of users.

Tencent's advertising marketing service line provides WeChat applet solutions to meet users' needs for faster and more convenient purchase. Luxury brands open brand boutiques based on WeChat apps to get through the marketing chain. Users can complete the transformation of closed-loop purchase with one click, buy what they see, and have a smoother shopping experience. As a key part of the online and offline service scenario+Tencent ecology+WeChat ecology of the connection line, the applet achieves full coverage of the whole scene, multiple contacts, online and offline.

Tencent's advertising marketing department said that in the future, it will continue to open its own flow, product/technology, and data capabilities, help luxury goods comply with the trend of industry change, develop marketing solutions, extend the brand vitality to more consumer groups, capture the new power of industry development, and ultimately achieve new growth in the industry.