In the fashion and luxury industry, LVMH is acknowledged for its cutting edge products, innovative way of designing and visualizing new trends… Breaking news! Guerlain, a subsidiary of the LVMH corporate Group, has launched a limited-edition fragrance of only One piece all around the world.
China e-commerce luxury: an inspiring reference
Called “Secret de La Reine”, the perfume is made up of exactly 14 carats of diamonds in which multiple accessories such as jewelry, watch, and the necklace was included in a premium package. The perfume has been purchased by one buyer on Tmall’s luxury platform from Qingdao, the sailing city reputed for a “getaway” atmosphere, for a breaking record of 3.6 Million RMB. An incredible gift for Guerlain’s first anniversary of activities inauguration on Tmall Flagship store.
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It unveils an implacable fact: Tmall is currently showcasing the B2C strengths of Mainland China and the ever-lasting progress tailored development on the Retail and Fashion industry. Its influence sphere is growing at a fast pace, so that it allures every kind of fashion investor and luxury fashion brands are adapting their strategy, a more scalable one, to start a business in this platform. China e-commerce may become the upcoming mainstream reference, so it’s common sense that International luxury companies value the image and the presence of their branding as well as optimizing their activity on online platforms to promote their luxury goods through specific targeting and advertising.
Upcoming challenge: turning Singles’ Day 11/11 into a Fashion promotional gala
Recently, it was decided that Singles’ Day has to be engraved in Chinese stone. Since Alibaba’s vision has exceeded all expectations, Tmall brings more and more Chinese overseas brands and Chinese consumers living abroad as well as new segments embodied by SME’s businesses (entertainment, cloud, communication, and logistics…).
This day is a great opportunity for Chinese people, especially shoppers can purchase products at an outstandingly low price. Not only it’s related to a warm online shopping festival, Tmall perfectly emphasizes one saying, back from the old days: “making fore less selling for more”. In the same way, many brands’ position and presence are brightening thanks to “Tmall Collection”, a broadcasted fashion show in China Mainland, in which international luxury attractiveness is covered. Victoria’s Secret, Adidas, Guerlain, Pandora… the list has to be updated quite often as newcomers are ringing the bell to start their business in Tmall.
As a result, in only one year length, Guerlain has gained more than 1.1 million with sales exceeding the forecasts. Marketing strategy and branding awareness were so well handled and spread that no more evidence is needed to display the fashion incremental revolution on E-commerce.
Fashion shows are a great alternative to online video platforms and have some complementary features. Back in September 2016, a Chinese Star was attributed to being the spokesperson, a real ambassador for Guerlain in China. As a Key Opinion Leaders, he is considered to be part of the category of influencers with a huge fan base, succeeded in alluring consumers over a new trend luxury product. Mesmerized viewers can buy what their eyes see and believe afterward.
Tmall: Another luxury platform
Aware of Tmall ascension in this online business, Toplife, launched by JD.com, is determined to be a credible alternative to luxury brands and representatives. For retailers and shoppers, it can be more than a mere temporary initiative: giving a better value of offline luxury through user experience and existing stores.
The same goes for international luxury brands aiming to establish in the long run in China, as long as they are permitted to open flagship stores with a sustainable connection to the targeted customers. Knowing your customer is what drives your business, with tailored delivery services with high-end expectations and results. Delivery services are performing better, Chinese consumers will naturally muster. Italian brands are the most represented, such as Emporio Armani and La Perla.
Online Business is the future of luxury in China
Luxury is basically an inessential, desirable item that is expensive and difficult to obtain. It’s a motivating reason to invest in this market as Chinese consumers are seeking for products as valuable as possible, alluring and shining ones to make a clear difference. Since the foresight envisioned that global luxury goods are expected to overcome the bare of 250€ billion in 2017, the stakes are bigger and these consumers will be the focal point.
Beforehand, luxury brands’ strategies weren’t stressed on E-commerce online flows and transactions, as they wanted to preserve the elegant and stylish side that suits more than one category in particular. Digital disruption has not to be neglected, delivering a luxury experience for online tech-savvy users are meaningful and relevant, encompassing well-built storytelling and branding.
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