WeChat for Luxury Brands: 5 Things That You Should Know | Digital 38
China Digital Marketing

WeChat for Luxury Brands: 5 Things That You Should Know

ATC | WeChat for Luxury Brands - 5 Things You Should Know Featured Image 1.2

With over 1.2 billion active users, WeChat is the most effective platform for luxury brands to interact with Chinese consumers. 

Why do retailers choose to tap the China market? Why do they prefer WeChat? Here are 5 data-driven facts that may answer your questions.

1. China is winning half of the luxury world

According to Bain’s prediction in May 2020, when Covid-19 hit, the luxury industry faced struggles when countries around the world went into lockdown, forcing to shutdown tourism industries.

During the first quarter of 2020, an estimated drop of 25% was experienced, and was expected to slide further down during the second quarter of 2020.

It is also projected that an estimated contraction for the full year may reach between 20% to 35%.

China began to step up their recovery efforts, and wants Chinese consumers to actively take part, as they are seen to account for almost 50% of the market by the year 2025.

Online luxury purchases have escalated throughout this year and by 2025, online channels may perhaps represent up to 30% of the market.

WeChat for Luxury Brands - 5 Things You Should Know | D38

Image: Bain-Altagamma Luxury Goods Worldwide Market Study, Spring 2020

WeChat for Luxury Brands - 5 Things You Should Know | D38

Image: Bain-Altagamma Luxury Goods Worldwide Market Study, Spring 2020

2. Generation Y have been consistent buyers of luxury goods

Millennials, also known as Generation Y (or simply Gen Y, born between 1980 and 1995).

According to Bain’s report, they account for 35% of consumption in 2019 and by 2025, they could make up for 45% of the market.

Did you know? How many Gen Y users on WeChat

As of Q2 of 2020, according to the overall MAU of different social platforms in China, WeChat has the most MAUs between 25 and 40 years old.

WeChat for Luxury Brands - 5 Things You Should Know | D38

3. In the past five years, the average annual growth rate of WeChat advertising in the luxury goods industry exceeded 90%

In Q1 2020, Tencent’s report on “WeChat Ads Solution for Luxury Brands” revealed that the average annual growth rate of WeChat advertising in the luxury industry has exceeded 90% in the past five years.

Did you know? The most popular ad on WeChat is the WeChat Moments Ads.

Moments ads are the native ads displayed on users’ moments’ feed, with an additional “Ad” tag in the upper right corner.

The same report shows that in 2019, the brand’s favorite is the card format with video, which is 43.33% of the total amount of ads.

WeChat for Luxury Brands - 5 Things You Should Know | D38

Source: WeChat Ads Solution for Luxury Brands Q12020, Tencent

By using Moments Ads, merchants can promote their brands and increase consumer conversion rates by targeting people based on their interests and other traits.

At the same time, consumers believe in recommendations from influencers. By using Moments Ads to place advertisements into the user’s daily moments, allows users to resonate with the advertisements and is very conducive to monetizing traffic.

4. Mini Programs have become a standard for brands on social media marketing

By Q4 2019, more than 90% of the luxury brands present in China established their WeChat Mini Programs. Here, luxury brands realize in-depth communication with users and operations such as online purchase, loyalty program, brand service, and marketing engagement

WeChat for Luxury Brands - 5 Things You Should Know | D38

Source: WeChat Ads Solution for Luxury Brands Q12020, Tencent

What is Mini Program?

It is a program that is integrated into the WeChat app, giving brands expanded functions to engage users.

A Mini Program offers more interactive features than a brand’s official Facebook page.

Here, buyers can browse products, see campaigns, live chat feature with customer service representatives, easy way to purchase products with WeChat Pay, and many more.

5. WeChat Official Account (OA) Verification: First Step to WeChat Advertising

As stated in the 2019 Tencent report, 49% of luxury brands chose to link their official webpages straight to a third-party eCommerce for diversion while 40% chose to stick to the brands’ official accounts.

Hence, before the brand wants to be exposed in the market, it is very important and necessary to have a WeChat OA certified by WeChat.

Why is WeChat OA Verification important?

* It’s the first step of WeChat Advertising: Hotels should have a verified WeChat OA ready before applying for a WeChat Ads account.

* Authentic presence of a brand: After OA authentication, it strengthens the credibility of the WeChat account.

* Enjoy more advanced functions: WeChat Advertising, WeChat Pay, Voucher, and more advanced APIs.

Explore WeChat digital marketing opportunities in Asia

Are you ready to take a leap and win the Chinese-speaking market? WeChat may be the platform you’re looking for.

Digital 38 is an Official Sales Partner of WeChat Ads. With this, we can help you get started with WeChat digital marketing services such as:

  1. Official Account Setup & Verification
  2. Content & Page Management
  3. Mini Program Setup
  4. WeChat Pay Setup

Get in touch with our team today.

About Digital 38

Digital 38 is a 360° Digital Marketing Agency with a strong presence in Southeast Asia and Greater China. With experience in digital marketing since 2006, we have 100+ digital specialists that cater to our clients’ diverse digital needs. We aim to simplify digital marketing, eCommerce and social media marketing solutions for forward-looking companies across the ASEAN Economic Community (AEC). 

Our services including end-to-end Ecommerce solutions, Search Engine Marketing and Search Engine Optimisation, regional digital marketing on platforms like Tencent WeChat, Weibo and ByteDance TikTok, DouYin, TouTiao, LINE, and Naver, influencer marketing and Live Seller hosting for eCommerce sales.

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