Wechat Will Become A New Front For Luxury Brand Online Retailing.

According to the world clothing shoes and hats net, with the overall upgrading of Tmall platform, a lot of Luxury goods Cards have come down and shelves are in place, and WeChat's high penetration rate among Chinese consumers has become an important channel for luxury brands to ignore.

The Tanabata has just become the most important annual time node for luxury brands in the Chinese market, and the launch of limited handbags for specific festivals is becoming more and more. brand Marketing means to seize the attention of the Chinese market and consumers.

Actually, Dior It was the first luxury brand to sell limited handbags on WeChat night. Without any warning, Dior announced on its official WeChat public platform in the morning of August 1st last year, "Lady Dior Small handbag Tanabata limited, and online boutique sale", which means Dior became the first luxury brand to buy handbags on the domestic line. The first time for fashion headlines was reported, causing widespread discussion in the industry.

According to a survey published by KPMG on the consumption of online shopping in China, the consumption of online and mobile luxury goods has exploded as a result of sustained and rapid growth in the popularity of smart phones. 45% of respondents said that most of their luxuries were purchased through Internet channels. Among them, WeChat became the largest traffic entrance of mobile Internet in China. Obviously, luxury brands are beginning to look for market opportunities in this field.

Some analysts pointed out that Tencent is using its huge social network to attract luxury fashion brands to enter WeChat applications, which may open up a new front in the field of online retailing.

According to the world clothing and shoe net, French luxury brand Longchamp and Burberry have begun selling handbags and costumes on WeChat. LV's Givenchy and Dior brands are testing users' demand for their products through flash buying activities on WeChat platform.

Long Yu sold some limited edition handbags on WeChat, and long CEO Jean Cassegrain said: "customer feedback is very good." They are considering selling more products on WeChat. "Anyway, WeChat will make a lot of contribution to our sales."

Attract luxury goods to sell ads on WeChat?

Tencent's actions are undoubtedly conducive to making these highly colder luxury brands more interested in advertising on WeChat.

This year, Tencent also streamlined the process of releasing multimedia advertising and opening stores on WeChat, making the platform more attractive to luxury brands. Liu Chiping, President of Tencent, also said this month that WeChat is playing an increasingly important role in the business field.

Games have always been the main source of Tencent's revenue, accounting for 60% of their revenues. But recently, Tencent has begun to pay more attention to advertising revenue. The proportion of total revenue from gaming business has declined for several consecutive months, accounting for less than half.

Reporters recently reported that Tencent's advertising system will usher in a new round of adjustment. OMG (network media business group)'s effect advertising business (chi Hui push) will be assigned to CDG (Enterprise Development Group) banner. In general, it is a system to further define brand advertising and effective advertising.

In March of this year, Tencent was appointed president of OMG, Liu Shengyi as the advertising chairman of Tencent, and the position of OMG was run by Ren Yuxin, chief operating officer of Tencent Inc. At the same time, Ren Yuxin is the direct leader of IEG (mutual entertainment), SNG (Social Networking) and MIG (mobile) three plates. Many people believe that Tencent may eventually aggregate a large advertising platform.

From Tencent's earnings reports in the past few quarters, the trend of gaming as the main source of revenue seems to be changing gradually. The commercialization of WeChat has been gradually accelerating. In the four quarter, the advertising revenue increased by 77%, mainly due to WeChat's friends circle, Tencent's mobile terminal news application and WeChat public account advertising revenue.

Earlier, reporters compared Tencent and Facebook's business, and found that advertising revenue alone accounted for more than 90% of total revenue, but the growth rate was higher than that of Tencent. Moreover, the gross margin and net profit margin of Facebook were as high as 80% and 40%, far higher than that of Facebook. At the same time, the money earned by Facebook every year in North America has increased rapidly to US $62 a year.

At the same time, the domestic online advertising market is also growing rapidly. According to the market report of Research Institute eMarketer, China's online advertising spending will increase by 27% in 2017 and over 50 billion US dollars.

In the context of the rapid growth of domestic consumption, is Facebook's model telling investors that selling ads is also a good way out for WeChat?

Luxury brands: anyone who wants to rob big advertising customers.

Luxury brands have not been doing well in recent years. According to data from Paris Bank of France and RE Analytics, global luxury brands have been closed up in the first quarter of 2016. In just 3 months, eight major luxury brands have closed nearly 40 stores worldwide.

In the face of tough sales of luxury goods, high-end brands are rethinking their digital strategy. Since last year, we have seen more and more high cold luxury brands. They used to shop on the Internet, but recently they came to the world to set up shop in the major e-commerce platforms. In the United States, a small number of luxury brands have begun testing merchandise sales on social media such as chat applications.

Besides, luxury brands have not been very good recently, but in the final analysis, people are still symbols of status and status, and the gross profit margin is high. For advertising marketing platform, it is not only conducive to improving platform tonality, but also increasing revenue. It is a very good advertiser. In addition, under the trend of consumption upgrading, e-commerce providers are spanforming, hoping to cover a more high-quality market.

Therefore, not only WeChat, Alibaba and Jingdong have been striving for this group of big customers. The Wall Street journal pointed out that over the years, Ali has been trying to attract luxury brands to sell their products on its website. Last year, Ali worked with Mei.com to provide flash buying activities for brands that might not have opened shop on Ali website. Glamour gained $100 million from Ali in 2015.

A few days ago, Ali announced the upgrading of Tmall APP, spare no effort to create quality, high-end image. In addition to providing more intimate services and tools for KA, Tmall will also have to stratify consumers to create an environment that is more suitable for premium brands and luxury brands. Jingdong also has similar moves to open up Jingdong mall luxury categories, and found that many luxury brands have opened their own stores in Jingdong, such as Versace, Burberry, Prada and so on. This year, Armani, Zhen Li, VERTU and other watch brands also opened online stores in Jingdong.

Watch maker Heuer, jeweler Pandora (Pandora) and other parity brands and cosmetics companies have set up shop on Tmall. However, Daniel Bailey Bailey, head of L2 Asia Pacific Research, said that most luxury fashion brands are still cautious about Ali, Jingdong and other open platforms, because they are worried about losing the aura of franchise. Boboli is an exception. The brand opened shop on Tmall in 2014.

Tencent also does not want to pass away such luxury customers. For luxury goods, the advantage of WeChat is that they can use WeChat's tool to keep consumers in their own system.

Long CEO said WeChat's attraction is that it is not an open platform to sell luxury goods and daily necessities at the same time. Users must pay attention to the account or scan the two-dimensional code to enter the website. Parada is also hoping to spanform the influence in the social media field to sales volume through WeChat and other channels. I believe this is also a consideration for some luxury goods to start shop and marketing on social networks.

However, the Wall Street journal also pointed out that for WeChat and other social media sites, fake goods are also an increasingly serious problem.

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