![]() This is something that has remained fairly consistent from year to year. WeChat may be a top instant messaging tool with over 1.225 billion monthly active users, but the bulk of user interactions on brand Official Accounts – over 73 per cent – are centred on menu clicks. “Beyond adding recruitment QR codes at the end of articles or in offline stores, brands should think about utilising it in other creative scenarios such as in campaigns or surveys, and developing user journeys that will guide customers in discovering the brand,” he adds. He explains that while Search is directly linked to brand equity and harder to impact, QR codes are something that brands can easily leverage. “It is important for brands to develop stronger recruitment strategies around their organic channels,” says Mario Juarez, SCRM and Data Strategist at DLG (Digital Luxury Group). This indicates that brands should pay more attention to these channels, instead of banking too much on paid advertising. While an increase in media investment has been observed, growth was largely fuelled organically – much like in 2019 – highlighting the continued importance of such channels. This rise likely stems from the influx of brands ramping up their investments in the Chinese market, as well as on local digital platforms. Still GrowingĪccording to the report, the overall growth rate of luxury brands’ WeChat communities rose by 44 per cent in 2020, up from 2019’s 37 per cent. The latest 2021 WeChat Luxury Index report by DLG (Digital Luxury Group) and JINGdigital delves into these issues based on an in-depth study of the WeChat Official Accounts of 33 luxury brands from January to December 2020. While WeChat remains the most ubiquitous digital platform, user behaviours on the platform are starting to change and brands are finding it increasingly challenging to engage their communities. ![]() Social platforms are rapidly evolving and develop more functions that span even more touch points along the consumer journey, causing the digital ecosystem in China to become increasingly fragmented. It is worth noting that unlike in Western markets, Chinese consumers are purchasing luxury goods not only on brand-owned websites and third-party marketplaces such as Tmall and JD.com, but also social channels like WeChat, or Douyin and Weibo which have rolled out their own e-commerce offerings as well. This, coupled with the ongoing growth and evolution of the Chinese digital landscape, created a robust environment for brands’ online activities in the market to thrive.Ī report by Bain estimates that China’s online luxury penetration in 2020 is expected to grow by 153 per cent compared to the previous years, accounting for 23 per cent of total consumption. As the only luxury market in the world functioning at a semi-normal capacity, international brands naturally began to step up their investments in China last year. ![]() With the global luxury market clouded in uncertainty, many luxury brands chose to look East in 2020. ![]()
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