December 5, 2024

2024 Douyin Luxury Industry Summit: Targeting Audiences and Content Upgrades to Seize New Omnichannel Opportunities

In the post-epidemic era, the luxury industry is facing many changes and challenges. The slowdown in global business growth has forced luxury groups to start exploring new directions.

The LVMH Group has become a major sponsor of the Paris Olympics, gaining social media value and exposure during the event that is 17 times the annual average. Hermès, on the other hand, has opened its 36th store in the United States, located in Princeton University, to better reach young consumers. Cartier’s Trinity100 themed exhibition, with its global premiere at the West Bund Art Center in Shanghai, has also attracted significant attention.

Although business growth in the Asia-Pacific region and the Chinese market is relatively stable, the landscape of luxury marketing in China is quietly changing.

With over 600 million DAU, Douyin has the largest user base, especially the GEN Z generation with strong personal opinions, which is the mainstay of the rapidly growing luxury consumption market, making Douyin a gathering place and birthplace of events with huge traffic. In addition, with its powerful content ecology and online and offline content linkage, Douyin easily captures the attention of young people. Many users, especially GEN Z, gather on Douyin, making it an important marketing platform in the exploration of luxury goods. Last year, the entire luxury industry’s marketing share on Douyin increased by 35% year-on-year.

Douyin’s super-detailed tag insight system includes more than 2.3 million refined tags such as crowd/product/content/touchpoint/industry dimensions. Through more scientific tagging logic and more refined crowd circle anchoring, brands can find the consumer groups they want. For example, through content insights, Douyin successfully customized communication strategies for brands in different circles such as subculture fashion crowd/high-knowledge overseas students/overseas tourists, allowing brands to communicate with target audiences more effectively and improve communication efficiency.

As a catalyst for brand marketing, Douyin’s hot spot strategy can provide the ability to predict future hot spots and create trend hot spots through the cooperation of expert content and platform-level voice. 21 billion views of spring and summer #dopamine, 14 billion views of autumn and winter #maillard, and the healing-themed “Spring is #mint mambo”, Douyin is now the birthplace of many GEN Z fashion trends.

GEN Z users who love fashion actively share their attitudes, express their needs, and generate consumption behaviors on the Douyin platform, all of which are captured keenly and accurately by Douyin. Douyin’s unique “decentralized” content ecology allows Douyin GEN Z creators to become deep co-builders of popular trends without realizing it, successfully concretizing abstract fashion concepts and fashion elements into the popular styles of the new season, and then combining them with rich original high-quality content from experts to create a “trend style” and attract more GEN Z generation to “get into the game”.

From the perspective of the brand, Douyin maximizes the efficiency of conventional brand content assets with the help of innovative brand advertising co-creation. The interactive advertising method makes brand content full of vitality and significantly enhances the influence of communication. In addition, Douyin has successfully created an exclusive courtesy node, making it a must-have for luxury brands’ advertising traffic. During the holiday season, when users’ attention to new products reaches a peak, it uses large exposure to attract users’ attention and then converts users into brand crowd assets.

The content marketing ecosystem for luxury brands is continuously evolving, shifting from a focus on direct visual presentation and sensory impact to a more integrated approach that incorporates social scenarios and enhances the perceived value of luxury goods.

In March this year, GUCCI and Douyin jointly let “Rosso Ancora” go off the screen, setting off a storm of Italian aesthetic colors. In this iconic global event for luxury brands, Douyin created full-link content marketing for the brand’s offline activities online and offline. In the preheating period, the end resources were connected, and keywords were pre-buried at multiple points before the brand event to promote the first popular color of 2024. Big Day and DOU came to the show to directly hit the event site, and amplified the exposure of the brand event through the first release of exclusive creative content on the entire network. The joint interpretation by celebrities and experts detonated the trend hotspot, successfully making “Ancora Red” a hot search. GUCCI’s experience space created in Beijing, Shanghai, Chengdu, and Shenzhen, with the help of the Douyin KOL matrix, created a trend across the entire network, transforming the new trend concept into high-quality content. The total exposure of more than 800 million on the entire network and the duration of the hot spot on the list for more than 24 hours prove the diverse potential of the Douyin platform in building trend consumption in the luxury industry.

Secondly, with the help of platform IPs such as “DOU Lab”, professional teams that understand platform users better can combine with brand influence to customize high-quality content that is more suitable for dissemination on Douyin. For example, the Chinese women’s football blockbuster co-created by PRADA and “DOU Lab” has a total exposure of over 240 million on the entire network.

In addition to audience insights and content marketing, the synergy between Douyin e-commerce and Douyin Local Services—both online and offline—has brought new omnichannel business opportunities for luxury brands. Additionally, Ocean Engine offers key scientific tools for verifying omnichannel marketing effectiveness through a holistic approach, helping luxury brands seize new opportunities.

In the face of the demand for more offline scenarios for luxury goods, Douyin has opened up through the CRM membership system, attracted new members for the brand through the online entrance, and introduced more accurate people for the business based on LBS recommendations. In 24 years, the “OPC” matrix has created a new grass-planting model. It is expected to attract offline stores through SA content, provide a one-stop service experience of new product delivery/physical display/reservation service, and complete more accurate “shopping guide” content conversion in the future.

This year, to help brands achieve more efficient omnichannel business growth, Ocean Engine Yun Tu has upgraded its “rational” verification capabilities to encompass the entire marketing ecosystem. It includes comprehensive metrics for brand performance and SPU5A, offering holistic audience analysis and integrating measurement indicators across all content, touchpoints, data, and channels to support strategic marketing decisions.

From an “emotional” perspective, the platform has developed a metrics framework to evaluate brand image, extending to the alignment between brand positioning and consumer perception. Brands can gain a multi-dimensional, in-depth understanding of their brand image through metrics such as brand association, mention volume, reputation, and preference, guiding the accumulation of long-term brand equity.

The 2024 Douyin Luxury Industry Summit served not only as a platform offering brands comprehensive solutions and real-world examples but also as a testament to the significant prospects Douyin holds within the luxury sector.

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