《DLG & Re-Hub：2024解碼中國奢侈品營銷節點：520（英文版）（28頁）.pdf》由會員分享，可在線閱讀，更多相關《DLG & Re-Hub：2024解碼中國奢侈品營銷節點：520（英文版）（28頁）.pdf（28頁珍藏版）》請在三個皮匠報告上搜索。

1、Decoding Luxury Marketing Milestones in China 2024:520Given the current headwind facing Chinas luxurymarket,is 520 still a relevant milestone for luxuryand premium brands?2Table of contents01.Introduction02.Performance Overview03.Conclusion3Introduction01.IntroductionIn a Challenging 2024,What Does

2、520 Imply.4Following a robust 12%rebound in 2023,Chinas luxury market isonly expected to grow by a low-single-digit in 2024,confirmed by the Q1 earnings of most luxury companies.Consequentially,exceptfor a few very well positioned maisons,growth in China from mostluxury brands has begun to stagnate

3、and made the revenuepeak of 520 even more critical.Coming on the heels of Lunar New Year and Valentines Day,the 520 festival traditionally is one of the biggest revenue peaks in theyear along with Chinese Valentines Day.The date,which sounds like I love you in Mandarin,was initially regarded as the

4、Chinese Internet Valentines Day.Nowadays,it has become anomnichannel romantic festival and an important marketing occasion,for brands to launch 520 marketing campaigns and asignificant e-commerce focus,including on marketplaces likeTmall.This years 520,however,was quieter than usual,as a result ofTm

5、alls effort to prioritise and extend the 618 shopping festivalfrom 20thMay.Therefore,brands had to significant reduce their520 marketing budget.Among our sample of 103 brands,520 wasa focus on WeChat for 73 of them.A significant number of brandslaunched dedicated festival campaigns,exclusive collect

6、ions,andinnovative experience to celebrate this milestone.Another challenge for brands is the evolving significance of 520 for young consumers.With declining birth rates and marriage registrations in China,the concept of romantic love might not resonate as universally as before.Today,with three Vale

7、ntines Days(520,Western Valentines Day,and Chinese Valentines Day),consumers are becoming weary of the recurring theme.Thus,brands have been broadening the concept of love to include couples,families,and friends,in an attempt stand out and expand their relevance.This years 520 not only carried the e

8、xpectation of driving brand revenue after a sluggish Q1,but also challenged brands to stand out despite generally reduced budgets.How did luxury andpremium brands fare?Who were the best performing brands?What were the most effective campaigns?DLG(Digital Luxury Group)and Re-Hub have studied over 100

9、 luxury and premium brands during this years 520 festival.This report delves into whether this festival is relevant in the the current luxury marketthrough six major rankings and a series of case studies.IntroductionMethodology.5About the StudyThis study includes a representative sample of luxury an

10、d premium brands across Fashion,Footwear,Watches and Jewellery to demonstrate how 103 brands were faring on major Chinese e-commerce and social platforms during the 520 festival in 2024,by comparing their performance during other milestones(including 520,618,Chinese Valentines Day,Singles Day).It al

11、so takes into consideration brand presence on the platform,and activity levels,with outliers excluded from the sample.Data Period520 of 2024:17th April 2024 18thMay 2024520 of 2023:20thApril 21stMay 2023618:31stMay 20thJune 2023Chinese Valentines Day(Qixi):22ndJuly 22ndAugust 2023Singles Day:24thOct

12、ober 11thNovember 2023Lunar New Year:15th January 15th February 2024Channel CoverageSocial Media:E-commerce:WeChatREDWeiboDouyinTmallSample of Brands103Luxury andPremiumBrandsFashion:Footwear:Watches&Jewellery:67.0%10.7%22.3%Flagship store Tmall Outlet(1)Tmall Global(2)(1).8 Tmall Outlet stores were

13、 included in the sample;(2).1 Tmall Global store was included in the sampleIntroductionData Scope.6Based on the data 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 mea

14、sure the uplift and success of 103luxury and premium brands during the 520 festival of 2024.Share of Voice:Re-Hub measures the share of voice by trackinguser-generated content(UGC)related to specific brands on RED,by using a combination of brand keywords,including Chinesenames,English names,and nick

15、names,to ensure accuracy.Thetotal amount of user-generated content is calculated to determinethe brands share of voice.Social Engagements:Re-Hub calculates social engagements byaggregating the number of engagements across all engagementtypes(excluding the number of reads)from brand-generatedcontent(

16、BGC)on the four platforms.This metric provides insightsinto the level of interaction and engagement driven by the brandscontent.E-commerce Sales Uplift:Re-Hub analyses the daily net revenueof brand-owned stores on Tmall for the 103 luxury brands.Netrevenue is calculated by multiplying the daily unit

17、s sold(excludingreturns,refunds,and cancellations)by the final unit price of eachproduct.Discount Levels and Promotions:Re-Hub tracks product pricechanges and compares the discount levels during the 520 festivalof 2024 with other milestones.This information helps identifybrands that have offered att

18、ractive discounts and promotionsduring the festival.Overall,Re-Hub provides insights into the performance of luxurybrands during the 520 festival in 2024 in China,consideringfactors such as share of voice,social engagements,e-commercesales uplift,discount levels by category.Note:All ranking and insi

19、ghts of this study are based on the period of data extracted from Re-Hub,and may vary from the brands actual performance across the platforms.7Performance Overview02.Overall Performance.BGCOverall engagementof BGC during 520decreased by 31.1%vs.last year.E-CommerceUGCBrand-related UGC volume on REDd

20、uring 520increased by 36.5%vs.last year.E-commerce revenueon Tmall during 520increased by 0.2%vs.last year.8Performance Overview%of Annual Revenue by Milestones.2023 CVD2024 CNY2024 5202023 6182023Singles DayTotal Revenuefrom Milestones(%)Total AnnualRevenue(RMB)FashionFootwearWatches&Jewellery7.7%8

21、.8%10.1%11.4%15.6%53.6%6.8%9.0%7.9%14.2%15.8%53.7%13.9%12.5%9.9%8.4%8.6%53.4%FestivalsShopping Events7.4billion0.5billion1.5billionNote:Data is collected from 19thMay 2023 to 18thMay 2024,and only 99 brands with full-yearTmall revenue are included.9Performance OverviewKey Takeaways.MilestoneActivati

22、ons Chinese consumers tend to shop around major marketing milestones,a habit that shapes the marketing calendar for brands in China.Despite the varied revenue distribution across different categories during shopping festivals,over 50%of annual revenue for Fashion,Footwear,and Watches andJewellery is

23、 generated during five major marketing milestones.ShoppingEvents Shopping festivals like 618 and Singles Day are typically associated with discounts.Categories with seasonal sales Fashion and Footwear benefit the most from these shopping sprees.Singles Day is particularly crucial for these two categ

24、ories,accounting for nearly 16%of their annual performance.However,for the Watches&Jewellery category,it represents only 8.6%.LocalCelebrations Occasions such as 520 and ChineseValentines Day,which are centred around gift-giving,contribute significantly to the annual revenue of the Watches and Jewel

25、lery sector.The Lunar New Year remains the most critical festival for brands to focus on,with notable revenue increases across all categories.This festival is not only a time for gift-giving but also a important occasion for self-purchasing.10Performance OverviewMost Discussed Brands.(By Share of Vo

26、ice)11Performance Overview12345Note:The percentages shown above indicate brands share of voice by brand-related UGC on RED from 17th April to 18th May.7.9%6.6%5.4%4.6%4.1%Typically,the most discussed brands on RED are luxury powerhouses,representing the most coveted labels in the market.Fashion bran

27、ds tend to boast higher SOV compared to other categories,due to their broader target audience.On RED,a brands SOV is usually based on long-term brand building.Unlike Weibo,where campaigns and celebrity endorsements can drive SOV overnight through innumerable reposts,it is more challenging to impact

28、UGC on RED,which is primarily focused on reviews and feedback.Share of voice on RED can be swayed by fashion trends.For instance,Miu Miu has gained significant traction not only internationally but also in China in recent years.Of course,upsurgings in social media usually drives significant increase

29、 in brand revenue.Leading brands dominateLong-term reputation over short-term exposureSubject to fashion trendsHow to Run an Impactful Campaign on RED.Case study:Loewe12Performance OverviewOn 2nd May,Loewe released its 520 campaign,introducing an exclusive pink Flamenco Purse and Mini Flamenco Purse

30、.This campaign depicted not only romantic love but also the relationship,between mothers and daughters.Itfeautured singer Edward Chen,actress Yuxiao Lu,and model Majie.The brand also collaborated with KOLs on social media to showcase beautiful relationships between couples,friends,and parents and ch

31、ildren,promoting the Flamenco bags and including the brand-owned hashtags#LOEWE520 and#LOEWE福袋.Hashtag PageBrand PostKOL Post(1).KOL posts only refer to brand-sponsored KOL notes facilitated through or reported on Pugongying*Data period:17thApril-18thMay;Data source:XinhongCommercial NotesWOM NotesV

32、olume of Posts19 posts,0.2%8225 posts,99.8%Commercial NotesWOM NotesVolume of Engagement(Like,favourite,and comment)4.3%95.7%Collection/campaign promoted520 Campaign,8 postsLoewe x ON,1 postLoewe Fragrances,3 postsPaulas Ibiza,7 posts13Performance OverviewBrand Heat05010015020025030035017-Apr19-Apr2

33、1-Apr23-Apr25-Apr27-Apr29-Apr1-May3-May5-May7-May9-May11-May13-May15-May17-MayBrand Heat#of PostsPosts PublishedBrand HeatLike:67K+Favourite:8.5K+Comment:400+Like:12K+Favourite:2.3K+Comment:100+From 17th April to 18th May,Loewe experienced two peaks in brand heat on RED,both stemming from non-sponso

34、red user-generated posts:-On the brands creative directorJonathan Anderson(published on2ndMay)-On the brands presence at the Met Gala(published on 12thMay)How to drive SOV on RED?Word-of-mouth(WOM):During 520,only 0.2%of all notes about Loewe were paid content,yet they accounted for 4.3%of total eng

35、agement.This shows that the brands direct influence on RED is limited.The top ten most engaged notes covered various topics,including the Met Gala,520,and iconic products.Brands should recognise that content on RED has a long lifecycle,with activities over several months continuously contributing to

36、 the brands SOV during this period.Commercial Notes:During this 520,Loewe invested in 19 commercial notes on RED,but only eight were related to the brands 520 campaign.The brand also promoted its latest Paulas Ibiza collection and the Loewe x ON collection.Loewes take on RED suggests that brands sho

37、uld allocate resources wisely during milestones,collaborating with various types of KOLs to support different product launches and initiatives.This approach helps reach diverse audiences and optimise search algorithms across different categories.3,900+New Posts generatedduring this periodTop 9%Trend

38、ing search keywordon REDNote:Data period:17thApril 18thMay;Data source:XinhongHow to Run an Impactful Campaign on RED.Case study:LoeweBest Selling Brands.(by Tmall Revenue)14Performance Overview12345Note:The ranking is determined by the brands Tmall revenue from 17thApril to 18thMay,2024.Handbags ha

39、ve consistently been the best-selling category online,making brands like Gucci,Coach,and Saint Laurent stand out.Gucci,in particular,maintains the top spot across past marketing milestones due to its iconic top-selling handbags.Cartier is the top performer in the Watches&Jewellery category.Both of t

40、hese luxury brands are able to reach different segments of local consumers through a multi-layered product mix.Brands like Coach and Ralph Lauren have gained significant traction in the local market in recent years.This is not only due to their agile promotional tactics during festivals and shopping

41、events,but also because their renewed brand image and product strategies resonate well with the new generation of Chinese consumers.Fashion brands excelThe favoured new accessible luxuryHow to Prioritise Key Milestones.Case Study:Cartier15Performance OverviewMilestone520:15th 20thMay1stWave of 618:2

42、1st-28thMay2ndWave of 618:31stMay 20thJunePDPListing Price47,00047,00047,000Interest-freePaymentYes,up to 6MNoYes,up to 6MGWPPerfume SampleNoNoCustomisationBox engravingNoGift Card#2Best-selling luxurybrand on Tmall#2best-sellingnovelty on TmallHow to proritise key milestones Novelty Launch:Cartier

43、launched the Trinity Cushion Necklace,a mainland China-exclusive product,on 18thApril ahead of 520.However,no new products were introduced around the 618 shopping festival.Tiered promotionsCartier places more emphasis on 520,a gift-giving occasion,than on618.For 520,Cartier provided additional GWP a

44、nd box engraving services with each purchase.Find the right marketing cadence:Cartiers marketingtimeline does not completely align with Tmalls events.While Tmalls 520 event ends on 18th May,Cartier extended its activities until the 20th(the first day of 618),and did not participate in the first wave

45、 of 618 activities.Brand-generated Content Uplift.(vs.2023s 520)16Performance Overview12345+3,120%+2,233%+1,302%+1,255%+1,001%Note:The percentages shown above indicate the uplift in average daily engagement of brand-generated content during the 520 in 2024(17th April 18th May)compared to the 520 in

46、2023.4 brands without BGC performance during 2023 were excluded.Partnering with the most popular idols and celebrities remains themost impactful formula to significantly boost brand content visibilityand engagement.Star-studded content can achieve massive engagement on social media,especially on Wei

47、bo.These five brands saw more than 1,000%growth in brand-generated content engagement during this years 520 festival,all driven by content featuring male celebrities and idols.Top male celebrities ruleFurlaTasakiWang JunkaiWeibo:83.2MWei DaxunWeibo:28.5MRen JialunWeibo:25.3MMaison KitsunChaumetYu Sh

48、iWeibo:3.7MRoger VivierZhang LingheWeibo:9.5MHow to Build Brand Relevant Digital Activations.Case Study:Maison Margiela17Performance OverviewMaison Margielas 520 campaign named Numerical Code,and featured actorWen Junhui,singer Amber Kuo,and model Hua Yilan.Content featuring actorWen Junhui received

49、 innumerable engagement across social media,resulting in an 808.1%uplift in the brands BGC performance.The brandalso introduced a WeChat mini game alongside the campaign,inviting users toplay and participate in a tote bag giveaway,thereby attracting new users intothe brands private domain.Maison Mar

50、giela also released a limited-editionT-shirt,which ranked 6thamong the best-selling novelties during this 520period.GameplayBrand storyGreeting cardHow can brands create engaging and brand-aligned MiniGames amidst a plethora of innovative experiences?Basic but addictive:A simple,addictive tile-match

51、ing gamewas introduced,allowing users to match tiles by movingblocks with the same numerical value.This game had thebenefit of being intuitive,easy to play,and entertaining.Align with the brand story:The campaign was based onthe brands famous number labelling system,introduced in1997.Each number rep

52、resents a category series of thebrand,such as Womenswear,Fragrances,and Artisanalcolellections.After each game,the meaning behind eachnumberwasrevealed,echoing the brands historyofcraftsmanship and further introducing the brand universe.Shareability:520 is a festival about expressing love andaffecti

53、on.The Mini Program invited users to combine theircollected numbers and share them with friendsinapersonalised order.Friends could view the greeting card andalso play the game themselves.E-commerce Uplift.(vs.2023s 520)18Performance Overview12345+412%+237%+216%+196%+175%Note:The percentages shown ab

54、ove indicate the uplift in average daily revenue generated on Tmall during the 520 in 2024(17th April 18th May)compared to the 520 in 2023.4 brands without Tmall performance during 2023 were excluded.Although 520 is more significant for Watches&Jewellery,fashion brands managed to boost sales during

55、this festival through seasonal novelties and targeted campaigns.The top five brands with the highest e-commerce uplift during 520 wereall fashion brands.Self-Portrait and Weekend MaxMara achieved growth rates of 237.2%and 174.6%respectively,during the 520 festival,both advancing their seasonal sales

56、 to boost revenue.Discounts do not necessarily suit every luxury brand,but interest-free instalments in China can stimulate purchases without undermining prestige and brand equity.These five brands all introduced interest-free instalment plans during 520.Success through flexible pricing strategyEffe

57、ctive discounting strategyInterest-free instalmentsDiscounting:case study.19Performance OverviewTmall RevenueUplift411.8%237.2%216.2%195.9%174.6%153.0%127.5%117.5%110.5%105.7%of Productson Discount0.1%N/A14.1%N/A98.2%92.0%41.0%11.5%83.1%55.2%Average%ofPrice Reduction-40.0%N/A-7.1%N/A25.6%-24.3%-39.7

58、%-46.8%-19.8%-39.8%Interest-freePayment(IFP)YYYYYYYYYY%of Productson IFP99.5%60.1%100%57.4%100%100%91.32%100%0.44%100%Longest IFPperiod24Months24Months3Months24Months12Months24Months24Months24Months3Months24MonthsNote:Data is collected from 17thApril 18thMay 2024Promotion:case study.20Interest-free

59、instalments have now been widely adopted by luxury brands to encourage purchasing decisions without offering discounts.The top ten brands with highest e-commerce uplifts all leveraged this tactical lever.Brands can offer different instalment plans based on product price ranges.Interestingly,MaxMara

60、offered a 24-month interest-free instalment plan for all products during 520,lcontributing to their 153.0%uplift.Non-price PromotionsDiscountsEight out of the top ten brands offered discounted products during this years 520.Although discounting is an effective promotional tool,brands must consider t

61、he width and depth of onmarketplaces as visible as Tmall,which unpacksbrand perception and cannibalises revenue from 618 and mid-year seasonal sales.Brands can offer tiered gifts for purchases at different price points,but need to exercise restraint to avoid theappearance of discount.Additionally,es

62、tablished membership programmes can provide additional benefits for repurchases or first-time purchases for their members.Interest-Free Instalments:Gift with Purchase:By joining Tmalls 88VIP membership programme,consumers can redeem discount vouchers during 618 and Singles Day.These vouchers apply t

63、o most Tmall products,with the discount cost borne by the platform.Direct Discounts:88VIP Voucher:Performance OverviewBest Performing Products.21Performance Overview12345Total#of SKU:1Van Cleef&ArpelsVintage Alhambra Pendant,18K Yellow Gold,CarnelianTotal#of SKU:1Van Cleef&ArpelsVintage Alhambra Bra

64、celet,18K Yellow Gold,Mother-of-pearlTotal#of SKU:3GucciHorsebit 1955 Small BagTotal#of SKU:1Van Cleef&ArpelsVintage Alhambra Bracelet,18K Yellow Gold,CarnelianTotal#of SKU:2GucciGG Marmont Mini Bag12345Total#of SKU:1Saint LaurentJamie 4.3 Pochon in LambskinTotal#of SKU:2CartierChina-Exclusive Trini

65、ty Cushion NecklaceTotal#of SKU:2RimowaEssential Trunk Plus,Mint&PapayaCollectionTotal#of SKU:2RimowaEssential Cabin,Mint&Papaya CollectionTotal#of SKU:1MontblancIced Sea Automatic DateNote:(1)The ranking is determined by the total revenue generated by the product on Tmall from April 17th to May 18t

66、h,2024;(2)The ranking is determined by the total revenue generated by the product on Tmall from April 17th to May 18th,2024.Only products listed since April 2024 are included.Best Selling Novelties(2)Best Selling Products(1)22Performance OverviewPetal&Cedar CollectionDistinct SuitcaseCollectionSigna

67、ture Collection Sea blueCollectionOriginalPilotHammer-schlagMint&Papaya Collection2023.042023.052023.092023.102023.112023.122024.022024.032024.04Seasonal variation:Although luggage are not on atraditional fashion calendar,Rimowa continuously introduces new colourways for its classic series,a head of

68、 key milestones including 520 and Singles Day,such as Essential and Original.520618ChineseValentinesDaySinglesDayLunarNewYearRimowa x TiffanyArctic BlueCollectionThanks to the travel revival and an effective product strategy,Rimowas newly launched Mint&Papaya collection secured third and fourth plac

69、e among the best-selling novelties during the 2024s 520.Exceptional product drops:In addition to variations of its iconicsuitcases,Rimowa collaborates with other brands such as Tiffany&Co.and Aim Leon Dore,and releases special models like the Hammerschlag line,inspired by its Hand-Carry Case from 19

70、66.Creative asset:Rimowa created a bubblegum-themed CGI animation for its latest novelty launch,garnering nearly 25,000 favourites and 11,700 likes,and making it one of the most beloved videos on Rimowas WeChat Channel.520NewYearsDayHow to Create Excitement throughout the Year.Case study:Rimowa23Con

71、clusion03.Conclusion.2401IncreasedRelevantThis year,brands increased overall UGC performance and maintained overall Tmallrevenue during the 520 festival.520 and CVD remain significant for Watches&Jewellery brands,which account for a quarter of their annual revenue.Some Fashion and Footwearbrands wer

72、e able to achievesignificant growth due toinnovative marketing activations,and while others relied onpromotions.02DiverseNarrativesMost brands continued toleverage Chinas three Valentines Days in their marketing calendar,and create differentiated narratives about this love milestones.With 520 adjace

73、nt to Mothers Day,more brands have expanded their 520 storytellingbeyond romantic love to broaden their audience.04PromotionalStrategyWhile discounts can boost sales,they undeniably affect brand perception,particularly since 520 is not traditionally a discount season.Brands still have many non-disco

74、unt-related options,such as GWP and interest-free instalments.However,luxurybrands need to remain vigilantabout the impact of promotionson brand image.03NoveltyLaunchBrands like Maison Margiela and Miu Miu dropped dedicatedproducts and collections for 520.However,fewer brands launched products exclu

75、sively for this festival compared to traditional holidays like the LunarNew Year.Given the popularity of the milestone,it remains an opportune time to introduce new products,with novelty driving purchases more than the festival theme itself.25About UsDLG(Digital Luxury Group)is the leading independe

76、nt digital agency for luxury brands,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 combina

77、tion of technological know-how,creativity and luxury savoir-faire.Contact UsPress&Media EnquiriesIris ChanPartner&Head of International Client Developmentichandigital-Pablo MauronPartner&Managing Director Chinapmaurondigital-Alexander WeiResearch Directoralexanderweidigital-Business Enquiries26About

78、 UsRe-Hub helps luxury and premium 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 que

79、stions across the 3 pillars of 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

80、speedContact UsMax PeiroCEOmaxrehub.techThomas PiachaudHead of Strategythomasrehub.tech27ContributorsMario Juarez(DLG)Pablo Mauron(DLG)Max Peiro(Re-Hub)Thomas Piachaud(Re-Hub)Jacques Roizen(DLG)Alexander Wei(DLG)Dawn Zhang(DLG)Kira Zhang(DLG)DesignerLoki Liu(DLG)For more information,please visit and www.rehub.techCopyright 2024 DLG(Digital luxury Group).All rights reserved.