1. Huge Potential of the Chinese Luxury Market
China‘s economy has been growing rapidly since the 21st century. Today, China has more than 40 percent of the global wealth middle class. The increasing income and buying power have led to a prosperous luxury goods market, which also makes China the world’s second-largest personal luxury goods market in 2021 (Statista, 2022) and is expected to become the largest one by 2025 (CNBC, 2022).
As one of the most digitally advanced countries in the world, it is not surprising that a huge portion of luxury goods revenue growth in China comes from digital sales. One recent research indicates that online campaigns and activities such as influencer promotions, livestreaming, eWOM, and more, will impact 95% of the Chinese customers during their decision-making journey. Therefore, it is crucial that global luxury brands understand the mainstream and customer behavior of the Chinese market.
2.Livestreaming Shopping is the Key Marketing Strategy for Luxury Brands to Strengthen their Competitiveness
In recent years, Iivestreaming shopping is expanding significantly and has become the most popular online shopping method in China. The combination of online shopping, talk shows, gaming, and auctions provides customers with a fun purchase experience. According to Coresight Research, Chinese consumers are expected to spend $300 billion on products featured in livestreaming shopping events this year.
Although multiple brands from retail industry have tapped into livestreaming shopping, Luxury brands were relatively slow to experiment with this strategy. However, as some major luxury brands found success in livestreaming shopping, other brands have started to adopt this new strategy. In 2020, the Italian luxury fashion brand Bottega Veneta cooperated with one of the famous hosts Austin Li, selling 230 Mini Pouch Bags ($1910 each) in 10 seconds through a Taobao Live show. This year, Dior held a livestreaming shopping event with its brand ambassador Yuxin Liu during the 38 shopping Festival on Taobao, featuring its new product “Dior La Mousse OFF/ON”. The online event reached more than 366,000 views and has become the most–watched one of the March.
The livestreaming shopping strategy is an effective method for luxury brands to approach their target audiences in China. This strategy is not only for the well-known luxury brands but for the ones that Chinese customers are not familiar with, to develop the Chinese market, deliver their brands’ values, and further expand the business.
3.CDN services are Necessary for Brands to Provide a Seamless Livestreaming Purchase Journey for Customers
Video latency is the main reason that businesses lose audiences in livestreaming shopping. Therefore, brands must get technically prepared for the surge of streaming traffic to avoid sales losses. CDN is one of the most effective solutions. It leverages edge nodes that are at the closest locations to the audience, which reduces latency on performance and brings security protection for the content through the entire livestreaming session.
Having a professional content delivery partner like BaishanCloud will be a wise decision. Baishancloud is a top Chinese CDN expert. We have over 800 PoPs in China with advanced streaming engines for encoding, transcoding, and optimized routing. Our one-stop streaming services enable luxury brands to focus on creating content and rely on Baishan to deliver a superior livestreaming shopping experience to the customers.