The “business challenges” faced by global luxury brands have intensified, becoming a widely recognized issue in recent years. According to the 2024 “Luxury Goods Worldwide Market Study” jointly released by Bain & Company and the Italian luxury goods manufacturers’ industry association, Altagamma, the global luxury market is projected to decline by 1% to 3% in the first quarter of 2024. Most regional markets are experiencing a slowdown in growth, prompting major luxury brands to adjust their business strategies by raising prices, exploring new opportunities, and transforming their approaches. The industry is at a pivotal point of divergent development.
To help luxury brands resolving the stalemate, Ocean Engine hosted the “Spark Creativity, Endless Exploration—2024 Douyin Luxury Industry Summit” on August 20th. The summit showcased Douyin’s comprehensive solutions for luxury brands, covering aspects from precise audience targeting and scientific content production to full-chain brand metrics. These solutions are designed to help luxury brands connect with emerging consumer needs, capture new marketing trends, and accelerate the enhancement of omnichannel experiences.
Precise Audience Reach: Targeting niche scenario groups
Douyin, with over 600 million DAUs, features a diverse ecosystem of creators and a large, cross-generational audience with significant consumption potential. The challenge for luxury brands is to accurately identify target audiences with high economic status, cultural sophistication, and demand for quality from the vast amount of crowd data. This is one of the foremost issues in luxury marketing today.
Douyin’s super-detailed tag insight system includes more than 2.3 million refined tags such as crowd/product/content/touchpoint/industry dimensions. Through more scientific tagging logic and more refined crowd circle anchoring, brands can find the consumer groups they want. For example, through content insights, Douyin successfully customized communication strategies for brands in different circles such as subculture fashion crowd/high-knowledge overseas students/overseas tourists, allowing brands to communicate with target audiences more effectively and improve communication efficiency.
Content Interaction Upgrade: Creating a new marketing domain with “O-PUGC”
Douyin’s innovative “OPUGC” (Occupationally Generated Content (OGC) – Professional Generated Content (PGC) – User Generated Content (UGC) ) interaction model has introduced new opportunities for luxury brands in content marketing. It deepens connections with users and transforms into an impactful marketing scene for luxury brands. Unlike traditional integrated marketing strategies, the “OPUGC” content integration approach focuses on content, enhancing its value through impact, coverage, and authenticity to drive consumer engagement and brand conversion.
Omnichannel Experience Upgrade: Exploring new opportunities through online-offline integration
Specifically, Douyin provides the IP to create unique luxury marketing solutions, enhancing brand value with IP momentum and generating authoritative OGC content. This is then linked with influencers from the fashion, art, culture, and sports sectors, using formats and methods like topic challenges and AICG to produce engaging PGC content. This approach boosts the luxury brand’s exposure, reaches the core audience precisely, and deepens brand recognition. A large number of users, influenced by the OGC and PGC content, spontaneously share authentic UGC content on Douyin, achieving triple coverage of brand influence, reach, and reputation.
Douyin’s “DOU Content Lab” enhances content originality, with a dedicated production team familiar with the platform’s users, offering customized on-site content ideas for global luxury events, and leveraging the platform’s IP to maximize brand content value.
Omnichannel Experience Upgrade: Exploring new opportunities through online-offline integration
In the field of e-commerce, Douyin’s luxury e-commerce has always maintained a steady growth trend. The live broadcast room is no longer just a single “321 link”. After the continuous optimization and development of the live broadcast format and content, new business scenarios are constantly being created. The current Douyin live broadcast room, from Lancome and Armani’s 1.0 makeup show to share trend content, to HUGO’s 2.0 outfit show, with performances + interviews + shows with catwalk stars, to Ralph Lauren’s 3.0 variety show combined with the “class flavor” hot spot, multi-scene live broadcast rooms with topics and catwalks have brought Ralph Lauren a +306% GMV explosion.
In the second half of the year, Douyin will also launch new ways to play autumn and winter e-commerce shows and create the first Douyin official fashion week. This 7-day fashion week will provide special support for big-name shows one track a day, with celebrities watching the shows and influencers walking on the catwalk, bringing an autumn and winter brand carnival.
Scientific Measurement Upgrade: Rational + Emotional validation of cross-domain business opportunities
Ocean Engine Yun Tu has upgraded its “rational” verification capabilities to encompass the entire marketing ecosystem. It includes comprehensive metrics for brand performance and SPU5A, offering holistic audience analysis and integrating measurement indicators across all content, touchpoints, data, and channels to support strategic marketing decisions.
From an “emotional” perspective, the platform has developed a metrics framework to evaluate brand image, extending to the alignment between brand positioning and consumer perception. Brands can gain a multi-dimensional, in-depth understanding of their brand image through metrics such as brand association, mention volume, reputation, and preference, guiding the accumulation of long-term brand equity.
Luxurious co-existence, exploring the limitless
The Douyin platform leverages its robust content marketing capabilities and comprehensive data technology to continuously optimize its marketing ecosystem and tools. It is committed to enhancing the creation, incubation, and development of high-quality content and working with brands to explore new solutions for marketing challenges. In the future, with the help of Douyin, how will luxury goods connect more closely with GEN Z consumers and achieve business growth? There are still new opportunities in the story of Douyin and GEN Z.