2024 Douyin Luxury Industry Summitshowcased the enormous potential of Douyin in the luxury industry

Introduction

In recent years, the global luxury industry has faced unprecedented challenges and transformations. According to the “Mid-Year Update of the 2024 Global Luxury Market Study” jointly released by Bain & Company and the Italian luxury goods association Altagamma, global luxury market sales are projected to decline by 1% to 3% in the first quarter of 2024, with market growth generally slowing down. Against this backdrop, major luxury brands have adjusted their strategies to seek new growth points. Meanwhile, Douyin, as an emerging marketing front, has seen its luxury goods GMV surge by over 45% in the first half of 2024, becoming a significant channel that brands cannot ignore.

To help luxury brands better address challenges and seize opportunities, Ocean Engine held the ” Spark Creativity, Endless Exploration– 2024 Douyin Luxury Industry Summit” on August 20th. This summit not only showcased Douyin’s comprehensive practical solutions in luxury marketing but also provided brands with comprehensive solutions across multiple dimensions, including precise audience targeting, scientific content production, and full-funnel brand measurement

I. Precise Audience Targeting: Segmenting Luxury Audiences by Scenarios

On Douyin’s platform, which boasts over 600 million daily active users (DAU), continuously emerging hot topics and a diverse creator ecosystem have gathered a vast and complex cross-generational customer base with significant consumption potential. For luxury brands, the primary challenge lies in precisely identifying target customers with strong economic foundations, high cultural tastes, and premium demands from massive user data.

In 2024, Ocean Engine Yun Tu provided over 2.3 million audience tags, assisting brands in accurately pinpointing more segmented scenario-based audiences on top of locking in the core, potential, and interested user bases for luxury goods. For instance, niche cultural circles, highly educated overseas students, and frequent international travelers are noteworthy segments. These individuals not only embrace the fusion of niche cultures with mainstream societal styles but also possess overseas study backgrounds, economic foundations, and a passion for international travel, making them crucial targets for luxury brands.

II. Scientific Content Production: From Brand Content to Social Scenarios

After identifying the “right people,” retaining consumers becomes the next challenge for brands. According to industry projections, Generation Z (referring to those born between 1995 and 2009) will contribute 100% of the incremental growth in China’s luxury industry consumers. This demographic has short iteration cycles for behavioral habits and preferences, demanding higher-quality content. As the largest incubator for diverse content genres, Douyin offers ample creative space for brands.

This year, Douyin’s innovative “O-PUGC” (OGC brand-produced content – PGC professionally produced content – UGC user-generated content) interaction chain has opened a new field for luxury content marketing. By leveraging Douyin’s IP to create unique luxury IP marketing solutions, brands can collaborate with fashion, art, culture, sports, and other vertical circle influencers to produce engaging PGC content, which then inspires ordinary audiences to spontaneously share authentic UGC content, achieving triple coverage in brand influence, outreach, and reputation.

For instance, GUCCI partnered with Douyin to create a new fashion trend, introducing the 2024 Spring/Summer color trend – “Ancora Red.” Through official Douyin content showcasing the Ancora Red concept and leveraging a celebrity matrix to generate buzz, the brand sparked spontaneous interactions from multi-vertical influencers and ordinary users, successfully orchestrating a tightly integrated online-offline branding event.

III. Full-Funnel Brand Measurement: From Data Integration to Scientific Metrics

The rapid growth of Douyin’s lifestyle services platform has provided luxury brands with new traffic pools and experiences. Meanwhile, by integrating product links and data, Douyin has achieved synergy between online and offline business scenarios. Based on CRM integration, brands can leverage online entry points to acquire new offline members, driving fresh traffic. The integration of product links enables brands to deliver a full-funnel service from user targeting, precise shopping guidance, to in-store traffic diversion, providing consumers with a one-stop luxury shopping experience.

To help brands achieve more efficient omnichannel business growth, Ocean Engine Yun Tu has upgraded its “rational” verification capabilities covering the entire ecosystem’s marketing effectiveness, encompassing brand 5A and SPU5A, providing brands with holistic audience analysis and connecting metrics across all content, touchpoints, data, and funnels, empowering brands to make forward-looking marketing decisions.

IV. Case Studies: Douyin Empowers Luxury Brands to Break Through

As the annual highlight of luxury brands, the four major international fashion weeks have also become the core focus of users in the industry on Douyin. “Paris Fashion Week” and “Milan Fashion Week” have been hot search topics for 23 years. On Douyin, there is a content creation team with integrated resources covering the world, which produces creative content directly on the scene, so that users can visit the fashion week without leaving home. Powerful show ecological product capabilities, the fashion show ecological environment created for brands and users, search area, Feedlive customized component functions…Douyin provides brands with full-link cooperation opportunities for show live broadcasts. For example, “DOU fashion show” with DIOR 2024 Fall/Winter Ready-to-Wear created a new Douyin show-watching mode, and the topic page has exceeded 47 million. It is foreseeable that Douyin will become a normalized show in the future and become one of the reserved programs of Fashion Week.

With the help of platform IPs such as “DOU Lab”, professional teams that understand platform users better can combine with brand influence to customize high-quality content that is more suitable for dissemination on Douyin. For example, the Chinese women’s football blockbuster co-created by PRADA and “DOU Lab” has a total exposure of over 240 million on the entire network.

Conclusion

The 2024 Douyin Luxury Industry Summit not only provided brands with comprehensive solutions and practical cases but also showcased the enormous potential of Douyin in the luxury industry.