Douyin has become a key position for luxury brands to break through
With the arrival of the post-pandemic era, the global luxury goods industry is undergoing unprecedented changes and challenges. According to the joint report by Bain & Company and the Italian luxury goods industry association Altagamma, global luxury goods market sales are expected to decline by 1% to 3% in the first quarter of 2024, with a significant slowdown in market growth. Faced with such a market environment, major luxury brands are adjusting their strategies and exploring new growth points. At the same time, Douyin, as a new force in the digital platform, is becoming an important position for luxury brands to reach young consumers.
“Being planted and falling into the pit”, for Generation Z (the group born between 1995 and 2009), falling in love with a luxury brand is just a moment of browsing on Douyin. As digital natives, Generation Z not only has a strong desire to consume, but also has unique consumption concepts and behavior patterns. They are keen to learn about brand information through social media, pursue personalization and uniqueness, and also pay more attention to the story and cultural connotation behind the brand.
Douyin, with its massive user base and precise algorithm recommendation, has successfully attracted the attention of a large number of Generation Z. Data shows that Generation Z users on Douyin are the core future consumption competitiveness that luxury brands are looking for. Therefore, how to accurately locate Generation Z on Douyin and establish a deep connection with them through innovative content forms has become an important issue for luxury brands.
Douyin has over 600 million daily active users, covering a rich cross-generational complex group. In order to help luxury brands find their target audience more accurately, Douyin provides an ultra-fine-grained label insight system, including 2.3 million+ refined labels covering people, commodities, content, touch points, industry dimensions, etc. Through scientific labeling logic and refined population segmentation anchoring, brands can quickly lock in the core, potential and interested users of luxury goods, and achieve efficient communication and conversion.
For example, on the Douyin, subculture circles, highly educated overseas students, and overseas travel are highly concerned. These groups not only have a high economic foundation and high cultural taste, but also have a keen interest and demand for luxury goods. By segmenting the luxury goods crowd scenario, brands can reach target consumers more accurately and improve marketing effects.
Douyin has unique advantages in content creation and dissemination. The Douyin influencer ecology, as the most high-quality creator resource of the platform, provides high-stickiness content for the luxury goods industry. According to statistics, 86% of consumers in China are influenced by influencers. Douyin platform has gathered more than 30+ SVIP authoritative creators from different fields, including fashion, art, culture, unboxing, travel, etc., providing rich and diverse content creation inspiration for luxury brands.
This year, Douyin’s innovative “OPUGC” (Occupationally Generated Content (OGC) – Professional Generated Content (PGC) – User Generated Content (UGC) ) interaction model has introduced new opportunities for luxury brands in content marketing. It deepens connections with users and transforms into an impactful marketing scene for luxury brands. Unlike traditional integrated marketing strategies, the “OPUGC” content integration approach focuses on content, enhancing its value through impact, coverage, and authenticity to drive consumer engagement and brand conversion.
In addition, Douyin has launched platform IPs such as “DOU Content Lab”, so that professional teams who understand platform users better and brands with strong influence can join forces to create high-quality content that is more suitable for Douyin dissemination. For example, the joint creation of a Chinese women’s football feature film by PRADA and DOU to Lab has a total exposure of over 2.4 billion online; the “Ancora Red” trend event jointly launched by GUCCI and Douyin has successfully ignited hot topics through online and offline close linkage.
In addition to accurate target audience reach and scientific content production, Douyin also strives to achieve full-chain brand measurement online and offline. Based on the integration of CRM system, brands can attract new offline members through online entrances and import more new traffic; the integration of the product chain allows brands to achieve full-chain services from user locking to precise guide contact and then lead to stores. This omni-channel integration model not only improves the shopping experience of consumers, but also brings more marketing opportunities for brands.
In summary, Douyin has become a key position for luxury brands to break through. Through accurate target audience reach, scientific content production and omni-channel integration mode innovation, luxury brands can achieve a two-way rush with Generation Z on the Douyin platform. In the future, with the continuous progress of technology and the continuous change of consumer demand, the luxury goods industry on Douyin will usher in more dawn.
