As the world feels the impact of the pandemic, luxury brands have found success and security in investing in digital media in China. This trend has been beneficial for both businesses and consumers: a select group of luxury brands have enjoyed remarkable growth during the lockdown, while Chinese consumers have benefitted from new ways to engage with these brands through digital platforms. This article will explore how luxury brands have navigated the pandemic in China, and in doing so, have enabled a better lifestyle for their customers.
1. The New China: Investing in Digital for Luxury Brand Gains
The world has come to recognize the explosive growth of Chinese influence on the international stage. But recently, the focus has shifted – China’s massive economy is no longer just about global trade. Now, it’s the world’s largest consumer of luxury products, paving the way for incredible investment opportunity.
China’s luxury market is experiencing a graceful digital transformation. Established brick-and-motor stores are becoming more technologically integrated, stocking digital tags and offering virtual reality experiences. As a result, luxury brands are tapping into global insights to power their own digital marketing, social media engagement, mobile shopping and more.
Key Benefits of Investing in China’s Digital Luxury Market:
- An increased opportunity to build brand awareness
- Improved consumer engagement
- A better understanding of the vast potential of Chinese consumers
- Access to global market intelligence
Companies must now move quickly to ensure they capitalize on the immense potential this market provides. With targeted investments in digital analytics and Chinese social media, brands can build a strong consumer base in the dynamic Chinese market.
2. Covid-19 Pushes Shoppers From Offline to Online
As the global pandemic heightens, shoppers’ behaviour has shifted towards the digital sphere. With physical stores closed and the desire to stay away from big crowds, shopping has gone digital. Here are the ways Covid-19 has pushed shoppers from offline to online.
- Social Distancing: With strict social distancing rules in effect, shoppers have no choice but to move towards the digital sphere. With the majority of physical stores either closed or operating with reduced hours, shoppers are recognised as ‘online shoppers’.
- Ease of Shopping: Online shopping brings ease and convenience to shoppers as transaction can be done easily with just a few clicks. Everything from groceries to clothing can now be bought online with convenience and safety.
Shifting to mobile shopping and the world of ecommerce was soon inevitable, and now it has been sealed with the pandemic. Physical store closures and reduced store hours have forced shoppers to move online, proving that online shopping is here to stay.
3. Luxury Brands Reap Windfall from Chinese Ecommerce Expansion
Chinese customers have a reputation for discerning tastes, and luxury brands have taken note. With the rise of online shopping, both homegrown and international giants hungry to tap new markets are flocking towards China’s massive ecommerce industry.
With more Chinese customers now shopping online than ever before, luxury retailers now have a platform to reach shoppers beyond the country’s borders. In 2019 alone, luxury retail sales in China rose 28%, and with the sector expected to grow further the following year, luxury brands are ready to capitalize on the Chinese ecommerce industry.
What do they stand to gain? Here’s how luxury brands are making the most of Chinese ecommerce expansion:
- Online Experiences: Luxury brands such as Prada, Chanel and Dior are leveraging online to build relationships with customers, providing personalized experiences such as virtual VIP shopping and custom product suggestions.
- Increased Visibility: According to eMarketer, Chinese shoppers now account for 25% of global luxury sales, and with more products and stores available online, luxury brands can extend their appeal to Chinese shoppers beyond the country’s physical borders.
- Enhanced Brand Recognition: Luxury brands have been quick to recognize how powerful an online presence can be for their brand. By building an online presence through ecommerce platforms like Tmall and WeChat, luxury brands can reach new customers and extend their brand recognition.
By combining the powerful reach of ecommerce with the growing Chinese affluence, luxury brands have been able to establish a foothold within the market. By capitalizing on this rapidly growing industry, luxury brands have been able to achieve unprecedented growth and higher market share.
4. An Investment in Digital Securing a Better Life
Investing in digital security is more important than ever. It’s easy to feel safe online, but the potential risks can have serious consequences in the long run. Here are some steps to take now to make sure your data and other digital assets are secure.
- Invest in software-based security measures. Use the highest level of encryption for each service you use. Anti-virus, firewalls, and network security solutions should be updated regularly to protect your data and devices.
- Regularly change passwords. Passwords should not only be unique, they should be changed often. Don’t use the same password for multiple sites.
- Enable two-factor authentication. Adding an extra layer of security like two-factor authentication can be an additional layer of protection against hackers and/or thieves.
- Stay vigilant. Be aware of the risks of accessing unsecure sites, downloading unknown files, and adding people you don’t know as contacts on your social media.
Ultimately, the better your digital security system, the better your peace of mind. Investing in digital security may seem like a daunting task, but if done correctly, it will pay off in the long run with a more secure online experience.
The pandemic has proven just how valuable a digital presence can be for luxury brands and Chinese customers have, without a doubt, been reaping the rewards. This is great news for both parties and augurs well for the continuation of this lucrative business relationship as the world emerges from the effects of the pandemic.
The success of luxury brands in China has definitely been propelled by the technological boost they’ve undertaken to improve their digital offerings. As China continues to lead the way in digital innovation, luxury brands will, no doubt, remain on the cutting-edge of the retail landscape.
