How does Chloe’s brand survive in the Chinese market year after year?
You should wonder how to become successful in China? How all those luxury brands survive in the Chinese market year after year?
In this report, we will analyze with every detail, how Chloe Brand succeeded in China? Luxury fashion companies are today part of a dynamic and fast-growing industry. The competition of international market shares is tough, and only the fittest survive. The Chinese consumers are savvy and they know a lot about fashion and they are very discerning. These Chinese shoppers can catch the trends swiftly and they learn quickly, so for luxury brands, it’s an opportunity to work in China, especially now, when Chinese consumers are willing to spend more on luxury goods in China instead of choosing to spend outside of their native country.
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Chloé hasn’t become one of the world’s leading global luxury brands in just one day.
Chloé is a brand that’s directional and revolutionary in every sense of the words. The Luxury Brand was founded in 1952 by French fashion designer Gaby Aghion, who truly changed the industry through innovative ready-to-wear luxury lines that were made from rare and luxurious fabrics usually reserved for the high-end market.
Nowadays, the Chloé brand is very famous among Chinese celebrities and women who want to convey a feminine yet highly independent personality. With the signature bohemian elegance of their new creative director Natacha Ramsay-Levi reshaping the brand, Chloé has started winning over legions of new fans in China, making it go-to brand not only for silk dresses but also for handbags and fragrances.
Chloé celebrates its presence in China by going digital
Though Chloé’s marketing strategy is both impressive and longstanding, the luxury fashion brand is one of many companies marketing to coveted demographics only available on digital, mobile, and social media networks. As demonstrated by their “Love Story” campaign. Chloé has adapted its marketing and advertising strategy to prominently feature top fashion Chinese KOLs and therefore ensure the dissemination of their brand amongst high-traffic sites and adjoining social media publishing channels.
In the digital e, brands like Chloé realize the importance of staying relevant to consumer audiences by both meeting them at critical touch points online and also marketing with the right digital and social media tastemakers.
How does Chloe’s brand use influencer marketing in China?
For Chloé’s Love Story influencer marketing campaign, top fashion influencers provided a large and dedicated consumer base with highly individualized sponsored content to elicit social conversation for the brand’s product launch. Partnering with top Chinese fashion Influencers or KOLs is a critical step when seeking to build rapport, substantial customer lifetime value (CLV), and brand affinity with Chinese customers. Here are select examples from Chloé’s collaboration with actor Jing Boran offers a subtler path towards creating virtual intimacy between idol and fan.
By creating an innovative Chinese influencer marketing campaign, Chloé was able to connect and engage with potential consumer audiences for brand/product discovery and a critical touch point for digital and mobile sales.
With successful influencer marketing, the goal is to create sponsored content that seamlessly integrates the product into each influencer’s daily lives in a way that feels genuine and authentic to their Chinese fans and followers. Chloé’s sponsored blog posts with top fashion influencers. Each influencer interpreted and wrote descriptively about their experience with Chloé while capturing evocative images true to their design aesthetic for personalized branded content.
POV(Point Of View) Ads
The POV (point of view) ads are awakening a new style of storytelling. In China, this type of virtual intimacy in advertising has become increasingly common, as a genre of POV marketing a camera and script style that immerses the viewer into a digital pseudo-relationship has been taking off. Ads shot in POV style are not only letting viewers feel closer to their idols, but they also make these brands’ message more pleasant and digestible to consumers.
The fashion blog which has been tailor-made for the Chinese market is part of the brand’s “E-Plan” to remain competitive in an industry that’s becoming increasingly tech-savvy. Besides being able to catch up on the latest Chloé news, everyone who registers on the blog will also receive the “News de Chloé” e-newsletter with updates on the brand.
A mini-site dedicated to the brand’s fifth-anniversary celebrations and the fashion show was set up, connecting audiences everywhere to the hub of fashion activity and providing up-to-the-minute news in an instant. A series of interactive online activities will unfold starting from mid-January this year, with fans being able to vote for their favorite models and participate in the selection process.
Chloé develops some smart social media campaigns
Chloé has delivered some successful social media campaigns like the WeChat Chinese New Year campaign and perfume launch. These creative ways of using digital storytelling have kept the brand relevant in China, but how can you be sure you’re reaching your target market, and do you think social media has diluted the brand’s sense of exclusivity?
For Chloe, the digital presence is just another media. It’s not a dilution but an amplification of the communication. Chloé stands for freedom, the brand is an extension of the women who feel comfortable in their skin. The brand doesn’t want to change Chloe’s DNA just because, they communicate on digital platforms like WeChat and Weibo.
The luxury brand used to communicate their unique identity through some Ambassadors the ‘Chloé girls” who only amplify their singularity. T hat’s why Chinese women love and choose the Chloé brand. Chinese women remain at the forefront of digital communication, they still need to customize the message and focus on digital technology.
Chloé has also found success in the China market thanks to some smart social media campaigns. It inaugurated a “WeBoutique” last August as a way to “launch an exclusive version of the Faye day bag,” according to Richemont’s 2018 Annual Report.
What is the Business Model of Chloé?
A business model of Chloe is defined by three basic components; value creation, value architecture, and revenue model. The value creation deals with the value proposition as well as the customer segments of the company. The value architecture explains customer relationships, distribution channels, key activities, key resources, and key partners. Finally, the revenue model is based on the cost structure and the revenue streams of the company. For a company, it is highly important to detect its own business model in order to know where improvements are needed to improve growth and profitability.
What are the Key distribution channels of Chloe in China?
Chloé puts a lot of effort into winning market shares in China and has opened a Chinese blog/webpage (jesuischloe.com.) for its Chinese clients. Regarding distribution channels, Chloé has one main channel; retail. This includes Chloé’s own boutiques, as well as multi-brand stores such as department stores, shop-in-shop and point-of-sale counters. Chloé is represented over the world, with more than one hundred and twenty stores worldwide, forty of which are company owned and twenty are franchise units. The stores are mostly represented in Asia where Japan, South-Korea, China and the Middle-East are strong markets.
How is the relationship between Chloe and its Chinese customers?
The customer relationship is naturally strongest between the sales staff and the Chinese clients. Returning clients are registered in a client database and they receive benefits such as invitations for events, discounts, pre-sales and so on. The company also holds a list of VIP-customers, who receive significant discounts on products.
Few Tips to increase your audience awareness.
- Word-of-mouth in China online is very important to the reputation of your brand.
- Build and animate a loyal community. Social networks will allow you to build your community and loyalty. They can also allow you to gain reputation and retain new subscribers. Forums and blogs can also help you gain reputation.
- Use external sources. Relations presses and specialized blogs in the fashion industry is very important to have better visibility and reputation positive online.
Why does Chloé Choose Shanghai over Paris for Resort show?
Chloé is flying far east for its Resort Show as the collection will be released in Shanghai on June 5 making, with an entire organization in Chinese. This is the first time for the brand to leave Paris for a catwalk show. Chloé’s China World Mall boutique in Beijing was also reopened on March 29 post renovations and the brand operates through 17 stores in China. The brand is evolving its network as the promising Chinese market is growing, with presence in 90 percent of all the major tier-one, tier-two cities in China today.
What are Chloe’s business expansion plans for China?
With, over 18 stores in China, Chloe opened a new store in IC Pudong and reopened a new store in China World. Chloe also presents at the K11 in Shanghai and at the Galeries Lafayette in China. They work closely with the biggest partners, landlords, and department stores, but the most recent opening was IC in Pudong.