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Tmall Luxury, China’s leading online destination for high-end and designer brands, announced new features to bolster luxury brands’ connections with China’s Gen Z, a digital-first fashion-forward customer base that is fast becoming a driver of global luxury consumption.
Tmall Luxury launched three new features to educate, entertain and engage the new generation of luxury buyers: Soho Live, a daily livestreaming service focusing on all things luxury; Soho Mag, a content-rich channel with the latest fashion news jointly developed with fashion editors and trend-setting influencers; and an upgraded membership program offering personalized services to high-value customers.
China’s Gen Z’s fondness for high-end goods is fused with their love for streetwear and anything inspired by pop-culture. For them, luxury is more than a status symbol. Fashion is a way of self-expression and identity. Under the ‘New Luxury’ banner, Tmall is looking to celebrate the confidence, boldness and open-mindedness of this new class of luxury shoppers.
Gen Z has demonstrated strong spending power for luxury products in China. A report by McKinsey & Company showed China’s Gen Z spend an average of RMB 25,000 (US$3,600) a year on luxury goods, already as much as their parents—the post-’65s/’70s generation.
The same consumer patterns are evident on Tmall Luxury. Around 80 percent of the customers on the platform are 35 years old or younger, with highest concentration in the 26-30 age group. And with the number of luxury consumers in the 18-25 age group more than doubling between July 2018 and June 2019, this younger consumer segment is set to become a bigger driver in the luxury industry.
To tap into the ‘New Luxury’ trend in China, top luxury players, such as Valentino, Balenciaga, Golden Goose, Hugo Boss and many others, are collaborating with Tmall Luxury to sharpen their appeal with this influential group of emerging luxury shoppers.
“By providing Tmall’s unparalleled analytics and insights on luxury consumption in China, we empower luxury brands with a deeper and more accurate understanding of local consumer preferences,” said Mike Hu, Alibaba Group vice president and general manager of Tmall Luxury, Fashion and FMCG. “These insights allow luxury brands to precisely tailor their communications to Chinese young audiences, while staying true to their brand identities.”
Launched in 2017, Tmall Luxury is widely recognized by luxury brands around the world as the preferred platform to connect with China’s young shoppers. To date, nearly 200 leading brands have opened flagship stores on Tmall Luxury Pavilion. The new Luxury Soho channel, which caters to young value-conscious consumers, has also attracted a growing number of brands.
“Being on a digital platform such as Tmall allows Golden Goose to talk to consumers across China about the brand’s integrity, craftsmanship and its versatile range of products and to grow in a way that ensures both quality and quantity,” said Mauro Maggioni, Asia-Pacific CEO of Italian high-fashion brand Golden Goose, which launched on the Pavilion earlier this month. He added that China is the most ideal market to tell the brand story, thanks to the ecosystem that has already been in place.
New Features to Capture New Taste
Aside from being digital natives, another quality that sets China’s Gen Z apart from the previous generations of luxury buyers is their penchant for creative content, social media and interactive features.
With that in mind, Tmall Luxury has launched Soho Live as a destination for luxury-focused livestreaming, helping designer brands effectively leverage the popular medium to engage their Chinese fans through real-time interaction with their favorite KOLs and fashionistas. This is complemented by another new content-marketing tool Soho Mag, which allows consumers to tune in anytime for the latest fashion trends as well as shoppable editorial features.
Tmall Luxury’s incisive understanding of consumer trends in the luxury sector will help it to provide personalized, multi-tiered services to its high-end customers as part of its new upgraded membership program.
With the coronavirus pandemic hitting businesses globally, home textiles major Welspun India Ltd is looking at how can it re-purpose its businesses to align with the changed ecosystem, with e-commerce emerging as one of its priority areas to reach end consumers, according to a top company official.
Gitanjali Saxena explained that the values that luxury stands for will always hold patronage and that the wane in demand is just temporary. Values like craftsmanship, quality, personalisation, etc., have always been relevant and continue to be in the future. But it is imperative for brands to shift focus now and be extremely careful about their brand values what they communicate to consumers. “Consumers now have higher expectations, especially with regard to a brand’s social stand. E.g., we have seen how luxury brands across the world have poured in their support for the #blacklivesmatter campaign. Social and environmental responsibility is one of the most important aspects for a brand now – it’s all about your contribution as a luxury brand to society,” she added.
appetite for online shopping will increase from 46 percent now to 64 percent over next six to nine months. Hygiene is expected to be the top priority for online shoppers, with 89 percent of Indian consumers expecting to be more cautious about issues of cleanliness, health and safety post-COVID 19 pandemic. About 75 percent of the Indian consumers said they will shop from retailers adopting safety practices in stores.
Observing this change in consumer behavior, we have also decided to shift our marketing strategy to digital platforms along with revisions in our e-commerce policy. We are also exploring innovative ways to interact with our patrons, to promote our products and win customer confidence through all our digital channels.
Talking about the partnership Carlo Centonze, CEO, HeiQ Group said, “HeiQ Viroblock is a special combination of our advanced silver and vesicle technology that has been proven effective against the human coronavirus 229E & SARS-CoV-2, causing COVID-19, with 99.99 percent reduction of virus in 30 minutes. It is a safe, hypoallergenic and patent pending technology. We are pleased to partner with Innovative Brand ‘Arvind’ in India to offer this technology across their range of products”.
A recent survey by BCG Consulting stated that over 44 percent would reduce their spending at standalone stores (single/multi-brand) in order to avoid crowded places. Only limited numbers of shoppers are feeling safe shopping right now, and with no guarantees of the pandemic declining shoppers are searching for safety and comfort.
Exuding confidence that Welspun India will recover better, she said, “We can see visibility coming soon though it is not what we had planned for. The COVID-19 impact is there everywhere but our plants, if I look at the annual picture, we look at least 70-80 percent of both our plants full.” She also said the company has insulated its workers and employees from the impact of the pandemic.
Adhering to the guidelines issued by the Central and State governments, as well as with the permission from local authorities, Cantabil re-opened all its exclusive brand stores in the orange and green zones across the country. All the stores were rigorously sanitized before restarting the business, the brand also rolled out a Standard Operating Procedure (SOP) to ensure the well-being of both staff and customers.
Jammu & Kashmir is famous for its beauty and exclusive raw material base that inspires and shapes crafts in walnut, Papier Machie, crewel embroidery, pashmina shawls, namdas cushion covers & other home furnishing, carpets, naquash silverware, willow baskets, copper and brassware. 20 artisans and entrepreneurs have been motivated to showcase the above products to attract the overseas buyers, wholesalers and retailers.
Show Your Human Side: Modern consumers tend to resonate with brands with strong sense of social responsibility. The COVID-19 pandemic has only amplified this – brand personality matters more now than ever. Consumers are craving for human connection and brands and retailers can capitalize on it by show them the human side of their businesses and the people surrounding it.
Women’s apparel brand, BIBA has launched sleepwear range for its discerning consumers. Targeted at women who are looking for style, comfort and quality, the sleepwear range by BIBA is priced at Rs. 1699 for a single piece, while the two-piece or three-piece sets are priced between Rs. 2299-3299. Some of the designs are reversible and can be worn both ways.
The bottom line is — there are myriad strategies and ways of selling on social media platforms like Instagram. But the catch is, what works for someone not working for others — you will have to find your own ways of positioning your brand. Follow your favourite brands on Instagram and keep a tab of their strategies – there’s a lot to learn from these trendsetters.
HeiQ Viroblock is one of the most advanced global antiviral products created by HeiQ, a Swiss textile innovator. HeiQ Viroblock significantly enhances the antiviral log reduction and reduces viral infectivity by 99.99 percent and is one of the first textile technologies in the world to claim such efficacy on SARS-CoV-2. HeiQ Viroblock has been designed to stay active on treated garments for 30 gentle domestic washes, ensuring safety for the consumer that lasts for a good part of the garment’s life.