China’s thirst for luxury brands grows ever stronger

The goal of taking pole position in the Chinese market has meant many global brands are making ever-larger investments to reach their new consumer. Almost every sector has seen spectacular growth over the years but none more so than the luxury goods market.

Take whisky for instance, which sees an annual import of $140 million into China each year is becoming especially lucrative, thanks to its desirability and scarcity factor. In a country with a burgeoning cohort of middle-class consumers who are increasingly seeking to flaunt their wealth with luxury purchases, sales of whisky are on a steady upward trend.

Securing a foothold in the Chinese market has become easier

To really take advantage of this tech-savvy and booming consumer class, it is important to make effective use of marketing strategies that will open Chinese wallets. Knowing one’s customer, no matter the language is still a key function.

The digital marketing jungle in China is one that requires a fine balance of understanding the culture on the ground and larger societal trends. Many Chinese consumers are seeking ways to enjoy authentically British brands, while not having them being too tailored to them. Building a brand that can translate culturally and directly into Chinese is an advantage but it can sometimes estrange buyers. Hollywood has found that using excessive Chinese themes in their films did not always convert into dollars, in fact, it was mostly the opposite.

The allure of securing a firm foothold in China is becoming easier thanks in part to the myriad of social media platforms blending social with eCommerce. To get the low-down, we have compiled a list of ways to catch your target buyer in China.

1. Tap into global festivities

As China becomes increasingly globalized, so does its culture. In recent years, April Fools Day (and others) have become used more often by brands to provide humor and playfulness.

Innovating brand localisation through playful use of local food choices by Hong Kong Airlines.

2. Go ‘all in’ on digital

China is now the second largest market in the world for digital advertising spend – that’s second only to the US. What this means for brands is a game-changer in how they interact with their audience.

Adspend in China has seen significant growth and is expected to continue.

3. Learn from the mistakes of others

Brand after the brand has fallen foul of the complexities of the Chinese market. From Leica, D&G, and even the humblest of companies like GAP.

4. Use Little Red Book

There is a new Little Red Book gaining popularity in China – and no, it’s not written by a famous Chairman. Instead, it is an app that appeals directly to 18-35-year-old women, where they can discover tips, trends, and most importantly, purchase products directly on the site. Its blend of part Instagram and part e-commerce platform has produced a winning combination.

The life of an influencer quite similar to being an entrepreneur, watching costs, understanding market trends, and most importantly, knowing your customer, or in a KOLs case – the followers. With it becoming easier to be a KOL, learn how to recognize the core features of a great influencer.

6. Make the most of Chinese eCommerce

The Chinese market is unique in many ways, not least because of the language. That said, the eCommerce environment is quite different. Instead of the mainstays of Amazon, Argos, and a host of other companies, there are mobile apps that are dominating the Chinese consumer landscape.

The next steps

Taking your brand to the next step need not be a strain. Chat with one of our experts on how your company can make waves in China. As an award-winning China marketing expert, Comms8 is happy to help you!

Main contact:

Carol Chan
Founder and MD of Comms8
+44 (0) 20 3289 4349
carol@comms8.com

Six ways to appeal to customers in China

Securing a foothold in the Chinese market has become easier

1. Tap into global festivities