2024 Douyin Luxury Industry Summit: Content Interaction Targets Niche Audiences, Scientifically   Measuring and Upgrading Omnichannel Opportunities

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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.

Amid this pressure, luxury brands face three major marketing challenges: How can they accurately identify the target audience and gain precise insights into their needs? How to effectively communicate with consumers and initiate connections quickly? How can they assess the effectiveness of online and offline omnichannel marketing? Opportunities are often present after challenges. In the first half of 2024, the GMV (Gross Merchandise Value) of luxury goods on Douyin surged by over 45%, highlighting Douyin’s emergence as a crucial business platform for luxury brands. However, success will depend on whether brands can leverage Douyin’s opportunities and effectively address these challenges.

Douyin, with over 600 million DAUs, features a diverse ecosystem of creators and a large, cross-generational audience with significant consumption potential. The challenge for luxury brands is to accurately identify target audiences with high economic status, cultural sophistication, and demand for quality from the vast amount of crowd data. This is one of the foremost issues in luxury marketing today.

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.

The next step after identifying ideal audiences is to retain consumers. According to industry data, GENZ (born between 1995 and 2009) is expected to contribute 100% of the incremental growth in China’s luxury market. They are undoubtedly the target audience that luxury brands are eager to retain. GENZ consumers have rapidly changing behavioural habits and preferences, and they demand higher content quality during fragmented time periods. This necessitates luxury brands to engage them with continuously innovative content formats.

GEN Z’s life is inseparable from high-tech production tools and digital social networking. They are positive about all new technologies and are riding the wind and waves in the AI era.

They are willing to share their attention span, which is only 8 seconds shorter than that of a goldfish, with a higher-dimensional technology experience, so that technology can empower life. For example, Douyin’s accurate facial capture and newly upgraded AR/VR technology allow users to easily be in the same frame with Van Gogh across the ages. Precise touch simulation technology can make advertisements “active”, form tactile interactions with users, and convey brand information more vividly.

Douyin has unique advantages in content creation and dissemination. First of all, Douyin’s talent ecology, as the platform’s most high-quality creator resources, provides high-stickiness content for the luxury goods industry. Data shows that 86% of consumers in China are influenced by talents. The number of talents in the luxury circle unique to Douyin has continued to grow in recent years, with more than 30+ SVIP authoritative creators in different fields, making Douyin a gathering place for creators with real artistic and cultural heritage. From the familiar fashion/art/culture/unboxing/travel and other circle talents to the more segmented exquisite boy/sweet cp/hardcore technology/makeup imitation talents, users follow the travel blogger @幻想家姜时一’s travel and exploration of the world and feel the perpetual spirit of Rolex. Douyin’s luxury circle talent matrix speaks for brand stories and values in a form that users love to watch, communicates with people in different scenarios, and demonstrates diverse marketing capabilities.

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.

On the other hand, 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 GENZ 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”.

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.

Data shows that the rapid growth of the Douyin Local Services platform has become a new traffic pool for luxury brands, offering fresh audiences, content, and experiences. Furthermore, Douyin’s integration of product links and data has achieved synergy between online and offline business scenarios.

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.

With an emphasis on the latest trends in the luxury products sector and prospects for future expansion, Douyin harnesses its strong content marketing prowess and extensive data technologies to relentlessly refine its marketing environment and utilities. It is dedicated to bolstering the generation, nurturing, and progression of premium content, while collaborating with brands to forge innovative approaches to overcoming marketing obstacles.

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