Luxury brands have always focused on quality and exclusivity as their core principles. But now with Zara’s latest foray into China’s livestream market, these luxury labels might need to rethink their approach. In a world where the “affordable luxury” trend is trending, Zara shows that there is much that luxury brands can learn from this model. By focusing on livestreaming, Zara has created an online-offline shopping experience that merges the best of two worlds. This article on Jing Daily examines these unique strategies and how luxury brands could leverage it to their advantage.
1. Appealing to China’s “KOL Consumer”
As China’s online population continues to grow, the reach of “key opinion leaders” in the country has also steadily increased. For brands, that means they have more opportunities to engage with China’s KOL consumers, which are known for their influence in the online marketplace.
In order to effectively reach KOLs in China, brands need to understand the platforms and methods best suited for their campaigns. For starters, they should be sure to create campaigns that will reach the majority of KOLs and leverage existing tools like WeChat, Weibo, and Douyin. Additionally, they need to identify the KOL micro-influencers that will be the most effective in promoting their products.
- Create campaigns that will reach the majority of KOLs
- Leverage existing tools like WeChat, Weibo, and Douyin
- Identify KOL micro-influencers that will be most effective in promoting products
2. Zara’s Innovative China Livestreaming Technique
What started out as an experiment by Zara in China has now turned into a game changer. Unveiled in 2018, the international fashion retailer is leveraging the power of livestreaming to help bring its products closer to customers. Off the back of this innovative tactic, Zara has seen remarkable success in its Chinese market.
Throughout the livestreaming broadcast, Zara’s chosen presenter interacts with customers in real-time, giving them an insight into the brand and the products on offer. Not only this, but customers can ask questions, directly purchase items and even receive personalised styling recommendations directly from the presenter.
- Entertains customers: By tapping into this method of shopping, customers are able to enjoy the typical shopping experience from the comfort of their own home.
- Engages customers: By creating an experience that is unique to the consumer, Zara is able to keep customers engaged with its product offering.
- Instant gratification: This form of immediate engagement is great for customers, as they can instantly see Zara’s new products and get the gratification of making purchases online.
This technique has seen an overwhelmingly positive response from Zara’s Chinese customers, who have quickly adopted this way of shopping as the norm. It’s hard to argue the power of this new form of advertising, and it’s clear to see why other fashion retailers have now started to follow suit.
3. Exploring New Opportunities in the Chinese Luxury Market
Though famous worldwide as having a quality and value far superior to other luxury products, the Chinese market still poses potential opportunities for businesses that are willing to commit to exploring it. Inside the Chinese luxury market, there are a few certainties worth noting:
- It is anticipated to grow at a rapid rate
- The competitive landscape is complex
- It is highly regulated
Growth potential: In the past ten years, the Chinese luxury market has exploded and is projected to continue growing at a rate of 6% year over year. Domestic tastes, preferences and increased purchasing powers of the Chinese consumer are the driving force behind this growth.
Challenges: Although the Chinese luxury market looks lucrative, there are certain challenges to consider, including a complex competitive landscape, distribution challenges, and the heightened demand for authenticity and quality assurance. Companies looking to tap into this market should gain an understanding of the nuances of this market before entering, as there are many risks to consider.
4. Analyzing China’s “Live Shopping” Revolution
Live Shopping is Taking Chinese Consumers by Storm
If 2020 has had an unexpected winner, it’s China’s newfound love for live shopping. In a period of extensive digital disruption, a blend of broadcasting, ecommerce, and entertainment has been taking the Middle Kingdom by storm. What is live streaming, you ask? Stores and brands are taking to the web and streaming their products, letting customers enjoy their shopping experience vicariously via live broadcasts. This is not only beneficial to customers by allowing them to compare prices and ask questions during the broadcast, it is also a huge seller booster. Brands such as Xiaomi and Realme, and even apparel makers, have found success in this direction, selling lakhs of products in under 5 minutes.
Unethical Practices of Chinese Live Shopping Companies
However, as with any such success, there have been a few ethical issues pertaining to the widespread use of live streaming. Due to the nature of the live Shopping industry, some Chinese companies are pushing marginally legal-or even unethical-practices. Some of these include:
- Pushing items based on availability, not need:
- Inflating prices and discounts of products for a larger profit:
- Associating with icons/celebrities for the purpose of boosting sales:
Only time will tell if with all its potential pitfalls, China’s live shopping revolution is here to stay. Nonetheless, it is worth bearing in mind that this streaming form of retail is providing opportunities to creators, both large and small, to access new forms of shopping. In this way, live streaming should continue to evolve and change the landscape of ecommerce as we know it.
The livestream event by Zara could be seen as a pioneering move within the world of luxury brands, and could open up a wide range of opportunities for other luxury brands in China. While it may be difficult for other brands to replicate Zara’s immense viral success, the potential of livestreaming as a marketing tool provides a great opportunity to reach customers far and wide. The livestream event has set a benchmark for what other luxury brands could also be doing going forward.
