Introduction
As the global luxury market enters a new phase of transformation and challenges, Douyin, with its unique marketing model and massive user base, has become a highly sought-after platform for luxury brands. According to the latest “2024 Global Luxury Market Mid-Year Update,” although the global luxury market faced a 1% to 3% decline in sales in the first quarter of 2024, luxury goods transactions on Douyin defied the trend, growing by over 45% year-on-year, highlighting its enormous potential in luxury marketing.
To delve deeper into this trend, Ocean Engine successfully hosted the “Spark Creativity, Endless Exploration—2024 Douyin Luxury Industry Summit” on August 20. This summit not only brought together numerous elites and experts from the luxury industry but also showcased Douyin’s latest achievements and future trends in luxury marketing, providing brands with valuable insights and practical strategies.
1. Precise Audience Targeting: Unlocking the New Code of Luxury Consumption
In the digital age, precision marketing has become the key to brand success. With over 600 million daily active users (DAU), Douyin has built a vast and diverse consumer ecosystem. Given such a large and complex audience, the primary challenge for brands is how to accurately identify and reach the target consumer groups for luxury goods.
To address this, Ocean Engine launched over 2.3 million+ audience tags in 2024, providing brands with unprecedented granularity in audience analysis. These tags cover various dimensions such as economic background, cultural tastes, and consumption habits, enabling brands to more precisely target core, potential, and interested luxury consumers. Additionally, by segmenting audiences based on scenarios, brands can further explore the needs and preferences of specific groups, such as subculture circles, highly educated overseas students, and frequent travelers, thereby achieving more efficient precision marketing.
For example, to target consumers within subculture circles, brands can create content marketing strategies that align with their cultural preferences through Douyin topics and KOL collaborations to spark their purchasing desires. For consumers who are passionate about overseas travel, brands can launch customized travel kits or limited-edition products tailored to their travel scenarios, meeting their unique needs.
2. Scientific Content Production: Creating a New Ecosystem for Luxury Marketing
After precisely reaching the target audience, the next important challenge for brands is how to produce content that can attract and retain consumers. Douyin, with its rich content ecosystem and diverse content formats, provides brands with a vast creative space.
This year, Douyin innovatively launched the “O-PUGC” interactive chain, which integrates OGC (officially generated content), PGC (professionally generated content), and UGC (user-generated content), forming a complete luxury marketing ecosystem. Brands can publish high-quality OGC content through official channels to establish their brand image; simultaneously, they can collaborate with experts in fashion, art, and culture to produce PGC content, enhancing the professionalism and entertainment value of the content; finally, they can encourage ordinary users to share authentic UGC content, achieving word-of-mouth dissemination and brand expansion.
Take GUCCI as an example. The brand partnered with Douyin to co-create the new color trend for Spring/Summer 2024—Ancora Red. By releasing the concept of Ancora Red through official Douyin content and collaborating with celebrity matrices to create hot topics, GUCCI successfully attracted widespread participation from influencers and ordinary users across various fields. This closely integrated online and offline brand event not only enhanced GUCCI’s brand influence but also significantly boosted sales.
3. Full-Chain Brand Measurement: Data-Driven Omnichannel Marketing
In the era of digital marketing, data has become a crucial basis for brand decision-making. Douyin, with its powerful data analytics capabilities, provides luxury brands with full-chain, full-ecosystem marketing measurement solutions.
By integrating CRM systems, brands can more conveniently manage online and offline membership data, achieving membership system integration and upgrades. Meanwhile, the integration of product links allows brands to complete a full-chain marketing loop from user targeting to precision sales to store traffic. Throughout this process, Douyin provides rich data support and analysis tools to help brands monitor marketing effectiveness in real time and optimize marketing strategies.
Ocean Engine Yun Tu, Douyin’s marketing analysis tool, has upgraded its “rational” verification capabilities, covering the full-ecosystem marketing benefits. These capabilities connect the metrics of full content, full touchpoints, full data, and full links. This allows brands to comprehensively understand consumer behavior, evaluate marketing effectiveness, and make forward-looking marketing decisions.
In the post-pandemic era, the luxury industry faces many transformations and challenges. However, Douyin, leveraging its unique platform advantages and innovative marketing strategies, has successfully helped multiple luxury brands achieve breakthrough rebirths.
