2024 Douyin Luxury Industry Summit: Harnessing the Power of Precision Marketing and Content Innovation with Douyin
In the post-epidemic era, the worldwide luxury sector is experiencing extraordinary shifts and hurdles. Data from the “Half-Year Report for the 2024 Global Luxury Market Study,” a collaboration between Bain & Company, in partnership with Altagamma, the Italian trade body for luxury goods, suggests that the initial quarter of 2024 could see a luxury market retrenchment of 1% to 3%, with a general moderation in sales growth. In response, leading luxury players are realigning their tactics to tap into fresh avenues for expansion. Douyin, boasting a massive user network, a sophisticated tagging mechanism, and a dynamic content environment, is becoming an indispensable platform for luxury brand promotions.
Segmenting Luxury Audiences Based on Scenarios: Helping Brands Precisely Identify Their Ideal Audience
With a user base of over 600 million daily active users, Douyin harbors a rich array of creators and a broad, spanning audience across different age groups, demonstrating immense consumption power. For luxury brands, the key task is to precisely pinpoint their high-net-worth, culturally aware, and quality-conscious consumers from the vast sea of user data, making this a crucial challenge in the realm of luxury branding.
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.
Scenario-based segmentation highlights three groups that stand out due to their refined tastes and increasing visibility: enthusiasts of subcultures, international students with advanced degrees, and adventurers abroad. This demographic amalgamates subcultural trends with mainstream fashion to disrupt norms, leading the charge in fashion’s exploration of freedom and diversity in gender expression. They come from affluent backgrounds, usually boast international educational experiences, and have an innate desire for a life of premium quality. Moreover, their zest for travel and quest for cultural immersion often result in indulgent purchases during their luxurious expeditions.
The next step after identifying ideal audiences is to retain consumers.
Douyin is the premier platform for diverse content formats, including trending events, popular content, micro-series, short dramas, interactive creativity, and more. It also offers advanced technological tools to bridge the gap with consumers, such as precise facial recognition, upgraded AR/VR, and accurate tactile simulations. This allows brands to effectively engage and nurture their target audience, facilitating rapid connection and retention.
Luxury Marketing Taps into ‘OPUGC’: Expanding Boundaries in Social Contexts
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 Douyin, luxury brands can tap into exclusive intellectual property to forge bespoke marketing strategies, leveraging IP-driven brand momentum and crafting authoritative original content. This content is then seamlessly integrated with influencers from sectors like fashion, the arts, culture, and sports, using creative formats and techniques including thematic challenges and AI-generated content to produce compelling premium content. Such a strategy enhances luxury brand visibility, ensures precise targeting of core consumers, and reinforces brand awareness. fueled by the allure of original and premium content, numerous Douyin users willingly generate and share genuine user-generated content, spontaneously extending the brand’s influence, reach, and reputation.
In practice, the value of content relies on collaboration with the platform’s ecosystem. Douyin’s “DOU Content Lab” enhances content originality, with a dedicated production team familiar with the platform’s users, offering customized on-site content ideas for global luxury events, and leveraging the platform’s IP to maximize brand content value.
In March this year, GUCCI and Douyin jointly let “Rosso Ancora” go off the screen, setting off a storm of Italian aesthetic colors. In this iconic global event for luxury brands, Douyin created full-link content marketing for the brand’s offline activities online and offline. In the preheating period, the end resources were connected, and keywords were pre-buried at multiple points before the brand event to promote the first popular color of 2024. Big Day and DOU came to the show to directly hit the event site, and amplified the exposure of the brand event through the first release of exclusive creative content on the entire network. The joint interpretation by celebrities and experts detonated the trend hotspot, successfully making “Ancora Red” a hot search. GUCCI’s experience space created in Beijing, Shanghai, Chengdu, and Shenzhen, with the help of the Douyin KOL matrix, created a trend across the entire network, transforming the new trend concept into high-quality content. The total exposure of more than 800 million on the entire network and the duration of the hot spot on the list for more than 24 hours prove the diverse potential of the Douyin platform in building trend consumption in the luxury industry.
At the Dior Fashion Week, the “DOU Content Lab” segment, also known as “DOU Fashion Show,” made its international collaborative debut with the brand by offering live-streaming technical support. It enabled consumers to fully immerse in the fashion show experience, from the beginning to the backstage and guest interviews, right from their homes. This format effectively displayed and analyzed the brand’s new season design inspiration in various ways. By adopting a panoramic online and offline show format, more consumers were able to appreciate the charm of fashion closely, thereby boosting the brand’s global influence.
The user experience has been upgraded on Douyin
From the perspective of the brand, Douyin maximizes the efficiency of conventional brand content assets with the help of innovative brand advertising co-creation. The interactive advertising method makes brand content full of vitality and significantly enhances the influence of communication. In addition, Douyin has successfully created an exclusive courtesy node, making it a must-have for luxury brands’ advertising traffic. During the holiday season, when users’ attention to new products reaches a peak, it uses large exposure to attract users’ attention and then converts users into brand crowd assets.
Omnichannel Integration: Douyin’s Measurement System and New Marketing Opportunities
Douyin is not merely a content platform but a comprehensive marketing ecosystem. Through CRM integration, brands can leverage online entry points to attract new offline members, driving fresh traffic. The connectivity of product linkages enables brands to deliver a seamless service from user acquisition to precise shopping guidance and in-store traffic redirection, offering consumers a comprehensive, one-stop luxury shopping experience. Additionally, Douyin Insight’s comprehensive validation of marketing efficiency empowers brands to scientifically measure campaign results and optimize their marketing strategies.
In the sophisticated luxury sector emerging from the pandemic, Douyin has emerged as a pivotal platform for brands looking to carve out a niche. Leveraging its distinct strengths, Douyin is enabling luxury labels toforge ahead with breakthrough marketing initiatives and sustained expansion through its refined audience segmentation, creative content promotion, and holistic integration approach. With the relentless progression of technology and the shifting demands of consumers, the partnership between Douyin and the luxury sector is set to intensify, paving the way for a landmark era in luxury business development.
