2017中国奢侈品行业（英文版）_14页_8mb

Summary of L2 Luxury China Report (May 2017)

Core Content

The L2 Luxury China report highlights the digital landscape of the luxury industry in China, emphasizing the importance of digital strategies in capturing the growing spending power of Chinese consumers. Despite being the largest market for luxury spending by nationality, China's domestic market accounts for only 7% of the global luxury market. This indicates that Chinese consumers predominantly shop abroad, underscoring the need for luxury brands to enhance their digital presence both in China and internationally.

Main Points

• Chinese Consumers' Spending Behavior: Chinese shoppers are the biggest spenders in the luxury industry, yet most of their purchases occur overseas.
• Digital Investment Importance: Digital strategies are essential for engaging Chinese consumers before and during their travels, especially in the context of e-commerce and social media.
• Digital IQ and Shareholder Value: There is a strong correlation between digital competence and shareholder value, with brands being ranked based on their digital IQ scores.

Key Findings

• Digital IQ Categories:

  • GENIUS +140: Brands with exceptional digital competence.
  • GIFTED 110-139: Brands experimenting and innovating across digital platforms.
  • AVERAGE 90-109: Brands with functional yet predictable digital presence.
  • CHALLENGED 70-89: Brands with limited or inconsistent digital adoption.
  • FEEBLE <70: Brands with underwhelming digital investment relative to opportunity.

• Top Performers:

  • Burberry Group, Cartier, Richemont, Coach Inc., and BVLGARI are among the top brands in terms of digital IQ.

• E-Commerce Growth:

  • E-commerce in China is on the rise, with 9% of fashion and 5% of watch and jewelry purchases made online.
  • Direct-to-consumer (DTC) and WeChat commerce have seen significant growth, with 40% of fashion and 38% of watches & jewelry brands now having DTC e-commerce.

• Social Media Engagement:

  • Weibo and WeChat are the dominant platforms for luxury brands in China.
  • Youku is losing popularity, with a 16% decline in adoption, while short video and livestreaming platforms are gaining traction.
  • Brands like Cartier and Coach are leveraging social media for engagement, with Cartier achieving over 10 million views on a Youku ad featuring Lu Han.

• Mobile Optimization:

  • 66% of digital purchases in China are made via mobile, making mobile optimization crucial.
  • 64% of brands use responsive mobile designs, and 44% of fashion and 40% of watches & jewelry brands offer m-commerce.
  • Some brands, like Bulova and Patek Philippe, still lack mobile-optimized Chinese sites.

Digital Marketing Insights

• Baidu Index: Indicates brand popularity and search volume trends.

  • Coach and Dior are notable for their significant growth in search volume.
  • Rolex and Burberry are leading in terms of brand buzz.

• Digital Marketing Strategies:

  • Brands are increasingly focusing on SEO & SEM, web advertising, and community engagement.
  • WeChat commerce is growing, with some brands using it for limited product sales.

E-Tailer Performance

• Tmall and JD.com are the dominant e-tailers in China, but Yoox and Farfetch are also gaining visibility.
• Brands should optimize their presence on these platforms to enhance their reach and sales.

Methodology and Tools

• Digital IQ Index: Measures brand digital performance across four dimensions: site performance, social media, mobile experience, and advertising.
• Deep Dives: Offer detailed brand-specific analysis for L2 members.
• Intelligence Modules: Provide insights into areas such as omnicommerce, social content, localization, and data targeting.

Conclusion

The report emphasizes the importance of digital strategies for luxury brands in China, particularly in the areas of e-commerce, social media engagement, and mobile optimization. Brands that fail to adapt to these trends risk losing out on a significant market opportunity. The data highlights that while many brands are making progress, there are still gaps in digital competence that need to be addressed to fully capitalize on the Chinese luxury market.