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22 Dec

Next Step for Digital Innovation

2022 has been an eventful 12 months for the buyer industry. On the one hand, with consumers resuming traveling internationally, luxury and sweetness groups have resumed their high level of growth in traditional high-end consumer markets equivalent to the U.S., Japan, and Europe. But then again, there was a slowdown in the expansion of the Chinese market, a market that used to assist international brands persevere within the face of difficulty for the past two years. Nevertheless, with the Chinese market still bearing considerable volume and potential, corporations might want to seek innovation opportunities on multiple levels to attain sustainable growth.

In accordance with the Report on Digital Trends of China’s Luxury Market and Report on Digital Trends of China’s Prestige Beauty Market jointly released by Tencent Marketing Insight and Boston Consulting Group recently, the posh market size of the Chinese mainland is forecasted to achieve 530 billion CNY, increasing by nearly 1% in comparison with 2021. Briefly, there shall be growth, but less important than before. With the event of social commerce, different platforms appear to be playing a much less separate role within the Chinese market, which is why enhancing digital innovation has continued to be the important thing topic in the brand new consumer era for corporations.

On the 2022 Fashion Tech·T Summit held in Shanghai on December 12, Daniel Shu, Head of Beauty & Luxury Industry of Tencent Marketing Solution, proposed the concept of omni-operation, introducing the audience to a digital future from the features of content, touchpoints, and omni sales.

In Daniel’s opinion, for the cosmetics and luxury industries, to attain omni-operational success in the brand new era, it is important to work on the next three aspects: excellent content, comprehensive and multi-layered touchpoints, and business generated from these touchpoints. Up to now 12 months, Tencent saw a substantial increase in the quantity of its luxury and cosmetics consumers. Meanwhile, there was a double-digit growth of the gross merchandise value of Wexin Mini Programs concerning luxury and cosmetics goods. Under such circumstances, it has develop into a key topic for Tencent and luxury brands in an age where top corporations seek to develop into digitally mature to work on the aforementioned three aspects to accentuate the connection between brands and consumers further in order to assist with the long-term development of the brands.

Having the content widely known to expand the marketing range

With consumers raising their awareness and their content consumption habits changing, the standard top-down operation in the posh and sweetness industry is now being challenged. Daniel observed, “With rules easing within the post-pandemic era, consumers can now have their normal lives back and proceed their pursuit of beauty. Meanwhile, corporations begin to take into consideration what’s crucial for a brand. As I see it, for the posh and sweetness industry, in the long term, brand power is most vital. But establishing brand power and creating emotional attachment require substantial content.”

Subsequently, the content for traditional digital brand marketing on various social platforms has develop into among the first digital content of China’s beauty industry. And now, these brands are exploring the boundaries of content technology in the brand new era inside innovation ecosystems like Tencent. During Milan Fashion Week, Gucci kicked off a recent approach to live-streaming with its Spring-Summer 2023 runway show by tapping Tencent’s Super QQ Show app, which allows users to decorate themselves up and socialize in virtual scenarios. Tencent is now collaborating with multiple luxury brands to construct a marketing pyramid within the metaverse. With its powerful underlying technology, social networks, and content ecosystem, Tencent will help luxury brands higher transform their marketing strategies to speak more effectively with the digital generation.

Daniel Shu, Head of Beauty & Luxury Industry of Tencent Marketing Solution.

Constructing private and non-private brand systems with multiple touchpoints

Being essentially the most chased-after digital ecosystem by the posh and sweetness brands in China, and with its powerful digital matrix, the Tencent ecosystem will help with a brand’s cross-platform marketing in order that they can reach more people on different vertical networks and get through to more high-quality potential consumers after figuring out the cross-platform synergies. From Daniel’s Perspective, now that Wexin and Tencent’s network of touchpoints has develop into more complete, the branding strategies that was applied throughout the old ecosystem at the moment are value one other try.

For instance, the “T-Live Maison” launched by Tencent, an answer that permits luxury brands to live-stream their physical fashion shows, is one among the examples where Tencent tried to work on releasing recent potentials of luxury brands who’re running away from traditional marketing in today’s ecosystem.

Achieving stable business growth with omni sales

Nonetheless, the last word goal of selling is to convert the audience of a brand into consumers and to tug off the sale, repeatedly, if possible. Tencent wishes to utilize its powerful content technology and network of touchpoints to ascertain a decentralized and sustainable ecosystem, which will help proceed to extend the shopper lifetime value.

“Decentralization refers to responding to customers’ buying habits and providing efficient solutions at any time when they have an inclination to make a purchase order. This manner, we help customers quickly get what they need for.” Daniel explained, “That is what decentralization is absolutely about. Tencent doesn’t intend to create a recent environment that’s centralized, nor does it want to equalize the worth with the worth.”

With the upgrading of the touchpoints inside Tencent’s ecosystem, brands at the moment are able to ascertain sales channels each throughout the ecosystem and on multiple platforms, and from online to offline. In this manner, they’ll satisfy the needs of various customer groups. Also, this will help brands higher promote their culture and values within the marketing process and ultimately create their economic moat.

Please click here to learn more about Tencent Omni-Operation Ecosystem.

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