{"id":13056,"date":"2023-09-25T06:30:20","date_gmt":"2023-09-25T06:30:20","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=13056"},"modified":"2025-04-23T09:06:13","modified_gmt":"2025-04-23T09:06:13","slug":"how-can-luxury-brands-use-douyin-to-achieve-growth-in-china","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/how-can-luxury-brands-use-douyin-to-achieve-growth-in-china\/","title":{"rendered":"How luxury brands use Douyin to achieve growth in China"},"content":{"rendered":"

Social commerce platforms like Douyin are playing an increasingly important role in the luxury sector in China, helping brands to connect with their consumers on a more personal level, writes Qing Na<\/strong> from Dao Insights<\/strong><\/h2>\n

In stark contrast to the overcast outlook of China\u2019s overall economic recovery, the luxury sector has seen positive signs after what has been described by Vogue Business as \u201cexpectation-beating growth\u201d in the second quarter of 2023, retaining the momentum gained in Q1.<\/p>\n

This is evidenced by Burberry\u2019s 46% sales growth in the mainland in the first three months of the year. Similar traction was also captured by heavyweight LVMH, which clocked sales growth between 40% and 45% in the first half of the year.<\/p>\n

Nevertheless, the resumption of offline vitality in the luxury market doesn\u2019t seem to have stolen the thunder of digital practices looking to energise the revival of the sector, as signposted in the China Luxury Market Digital Trends 2023 Report released by Tencent Marketing Insight with additional analysis provided by Boston Consulting Group.<\/p>\n

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Douyin (the Chinese version of TikTok), which is home to more than 600 million monthly active users, 150 million of whom show a strong appetite for extravagant purchases, has become increasingly important for facilitating the growth of luxury in China. According to the 2023 Douyin Luxury Industry White Paper jointly published by Ocean Engine, Douyin E-commerce, Trend Insight and Deloitte China, the viral short video app has now become a marketplace for over 70% of China\u2019s luxury buyers.<\/p>\n

The platform expects to see its most heavyweight luxury consumers increase their annual spending by 7% from RMB 600,000 (\u00a366,470) to RMB 643,000 (\u00a371,234) in the coming years, while moderate and light luxury buyers, who are more price-sensitive, are expected to reduce their yearly consumption of luxury items by 5% to RMB 112,000 (\u00a312,497) and 15% to RMB 16,000 (\u00a31,772), respectively, reflecting a more cautious consumer behaviour<\/a>.<\/p>\n

While stylishness\/trendiness and the ability to cater to the pursuit of individuality remain core considerations for Chinese consumers, the overall trend of making purchases for self-satisfaction is growing in relevance for luxury consumption, and has been shown to be a priority for almost half (47%) of Douyin\u2019s luxury seekers. Luxury products are also expected to be more compatible with daily life, as agreed by 49% of 1,590 respondents, while allure is enhanced for those seeking items for more diverse occasions.<\/p>\n