3 essential social media tips for the Chinese luxury market
Melody Booker – 10 September 2013
Chinese luxury shoppers are demonstrating incredible buying power as the personal income continues to grow and RMB appreciates in value. Mainland Chinese are the biggest single group of tax-free shoppers in the world (according to the 2012 research by Global Blue). It is no wonder that an increasing number of luxury brands are looking to increase their brand presence through digital marketing in China, aiming to influence their buying decision before and after they travel overseas.
However, building an effective digital presence in China is not a straightforward task, there are complex and time consuming legislative process to set up a business or even a simple website in China. Many luxury marketers turn to social media as their first point of entry to reach Chinese shoppers. Around 70 % of potential consumers search for luxury brands on the internet at least once a month (Global Reach of China Luxury, a consumer study by KPMG 2013). Setting up your own brand pages on Chinese social media platforms can be a quick and effective way of engaging with Chinese internet users.
There are many resources on how to utilize Chinese social media platforms such as Sina Weibo, WeChat etc. Here we want to gain some practical insights by looking at 6 well-known luxury brands in China: Burberry, Dior, D&G, Gucci, Armani and Louis Vuitton in order to draw out three things we should learn from their social media activity.
1. Sina Weibo is the most used and prioritized social platform by these luxury brands
Sina Weibo – although has come under criticism due to a slight decline in the number of users and the fact that it is becoming a commercialized environment. But it is still the most influential social platform for reaching high numbers of wealthy, white-collar and image conscious Chinese consumers.
YouKu is the second most popular and is mainly used for the ease of distributing video content. Then there is WeChat – although it is still new it has already gained remarkable traction with luxury brands as the user base and usage continue to grow rapidly.
Kaixin and RenRen have low to zero usage by the luxury brands studied. Burberry as a market leading luxury brand in China use a wide range of the social platforms (seven of them), and is the one that has a separate Sina Weibo presence dedicated to customer service, which is a trend towards deeper social engagement.
2. Secure an authentic brand identification with a blue V logo on Sina Weibo
China is notorious for its cyber-squatting and it is a major challenge in social media platforms. Brands with established awareness are at risk of having their brand names hijacked on Sina Weibo. Therefore, it is important for brands to be proactive and secure their name as soon as possible. Also, to help users to identify your authenticity, you can apply for a blue V logo to appear on your Sina Weibo brand page. To apply you need to provide a valid business license that incorporates the brand name used on Sina Weibo pages.
If your business is not yet registered in China, you can still apply for a V logo with overseas business documents. It is a good idea to appoint a third party with the relevant experience and Mandarin speaking skills in order to avoid complications and delay.
3. Frequency of posting on Sina Weibo
For a luxury brand it is critical not to bombard users with messages or be seen as too commercialized. According to our finding, 1.5 posts per day is the average frequency for these luxury brands – this is lower than other sectors such FMCG, with more active posting frequency of 3-4 times per day.
To learn more about the most effective social media practices for the luxury sector in China, you can attend the Social Media Breakfast Workshop hosted by China Edge on the 24th of September at Getty Images Gallery in London. For more information contact [email protected]
Article written by Melody Booker, who has over 11 years digital marketing experience working with blue-chip brands in both London and Shanghai, she is currently the Head of Digital Planning at Qumin, a digital marketing agency which is a partner in China Edge.
China Edge Ltd is a collaboration of sector experts with a wealth of experience in China that brings you the knowledge of how to target, engage and retain wealthy customers from China www.linkedin.com/company/china-edge. China Edge hosted a China Luxury Retail & Hospitality Conference in London on 3rd July with 90 luxury brand representatives attending.
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