Chinese New Year spending - Chanel a favourite with shoppers
As the Chinese New Year approaches, most beauty brands have been preparing by increasing their marketing efforts and product development in the hope to become more visible, build brand value and generate sales.
However, according to DLG Intelligence research, global prestige player Chanel has seen the largest rise in interest from Chinese consumers over the past year, particularly in the fragrances area.
The market researcher flags up beauty, fashion and watches to be the three segments that will likely benefit from this holiday.
Following Chanel, Estee Lauder and Lancôme are reported to be the most sought after luxury brands.
Power of digital in China
With Chinese consumers being highly technologically skilled, they are increasingly using the internet and social media platforms such as Weibo for pre-purchase decision making.
DLG states that Chinese travelers tend to make the most out of the one week bank holiday and the vast majority of luxury sales are not expected to happen in the mainland.
The high taxes and the ease of travelling with direct flights to many shopping capitals have led Chinese to buy luxury goods abroad.
Platforms like WeChat helping to re-invent direct sales model
China is already the second largest online retail market in the world, and the fastest growing. There, the details lie in creating more active events, promotions and digital marketing strategies, especially through social media platforms like WeChat.
According to our regional expert, Florence Bernardin; WeChat is becoming an increasingly important way to distribute in China, especially in the sheet mask segment, which is the only category dominated by local brands.
“WeChat can help to re-invent direct sales model,” she tells CosmeticsDesign-Asia.com, following a recent visit to the region.
She informs this publication that Chinese brands are now even recruiting WeChat users to present and sell their products directly to followers.
“This is an efficient way of marketing and selling thanks to photo sharing and word of mouth,” says Bernardin.
In order to compete with these successful platforms, the expert says traditional retailers need to invest in the digital experience.