In 2023, with the gradual recovery of the global economy, the Chinese market has once again become one of the focuses of high hopes for major brands. In the face of this economically dynamic and promising market, many brand executives have embarked on a "China tour" to show their strong interest in this huge market, and some leaders have chosen to lead their brands to deepen the localization process in this market to show their determination to attach great importance to China. Over the past year, Jing Daily has worked hard to tap into their unique understanding of the Chinese market and precise strategic planning through in-depth conversations with these executives.
The series of conversations focused not only on executives' expectations and confidence in the Chinese market, but also on their sensitivity to local Chinese culture and consumer habits. Through their narratives, we can get a glimpse of the strategies of global brands to succeed in the Chinese market, the challenges they face, and their future strategic layout. In this article, we'll review these executive conversations from three directions, the forward-thinking and industry insights of brand leaders in this dynamic and opportunity market.
The recovering Chinese market
and diverse consumers
Since the resumption of international tourism at the beginning of the year, Bulgari CEO Jean-Christophe Babin has visited China several times, actively participating in the various events held by the brand there, as well as visiting important regional markets such as Chengdu. On the opening day of the "75th Anniversary of the Bulgari Serpenti Collection" exhibition in March, Mr. Babin said in an interview with Jing Daily: "Although we see that the volume of offline ** is still lower than the pre-pandemic level in 2019, the sales conversion rate of stores is much higher than before the pandemic. In his observation, the demand for luxury goods in China is recovering much faster than expected, especially the number of visitors to offline stores is recovering rapidly.
Bulgari's "75th Anniversary of the Bulgari Serpenti Collection" exhibition in March this year.
Bulgari.
The rapid "resurgence" of the luxury market is largely due to the large number of young luxury customers in the Chinese market. After the epidemic, this consumer group has shown greater vitality, and its role in stimulating the domestic luxury market has been significantly enhanced. As senior luxury analyst Luca Solca said in the Bernstein report, Chinese consumers are more diverse than they were before the pandemic, and young people under the age of 30 and consumers from lower-tier markets will become increasingly important to the growth of personal luxury spending.
Our customers are young and what they all have in common is curiosity, openness, quality awareness and personality. Jean-Marc Loubier, the current global CEO of Delvaux, shared the growing interest in Delvaux among the younger generation in China. On the occasion of Belgian artist Margaret's 125th birthday this year, the brand launched an Asian-exclusive surrealist capsule collection that was subtly linked to Qixi Valentine's Day to cement the brand's position among young people.
Delvaux Asia Limited Capsule.
***delvaux
Kilian Hennessy, founder of Kilian Paris, was also impressed by Chinese consumers when she visited China in July this year. "They are very mature, especially in terms of perfume knowledge, which makes them very receptive to perfume brands that they have not yet known. And Moose Knuckles CEO Victor MOn her first trip to China after the pandemic, Luis observed that "Chinese consumers are more confident and diverse in their personal style than before. In the midst of such changes, Mr. Luis is particularly confident in the Chinese market.
However, as Chinese consumers become more sophisticated, confident and diverse, it is becoming increasingly difficult for brands to meet consumer demand. Stefano Curti, Chief Brand Officer, Global Mass Beauty, Coty Group, said, "Chinese consumers are very knowledgeable and 'discerning' about all aspects. Their 'pickiness' is reflected in their knowledge and expertise in product ingredients and technology, online research on products, demand for ** benefits, complex packaging and new distribution systems. "It's driving brands to rise to the challenge and make positive changes.
Accelerate online transformation
Synchronous entity upgrades
The three-year pandemic has accelerated the transformation of offline businesses to online. Online consumption has shown strong vitality and resilience, and e-commerce has become a new outlet for brands to rush into, as a new channel for seeking incremental growth. Andrew Rees, CEO of CROCS, said: "Marketplaces continue to change the way consumers shop. Most consumers now use e-commerce platforms as a starting point for product evaluation, rather than search engines, before making purchase decisions, making e-commerce platforms an important channel for gaining market share. And China has been leading the way in e-commerce, especially e-commerce platforms, for many years. As a result, we continue to invest in various core e-commerce platforms, including Tmall and JD.com, in order to increase the opportunities for our brand in China** and its communication. ”
However, although consumers have formed the habit of buying online during the epidemic, as merchants continue to launch offline marketing activities and increase investment in physical stores, consumers will return to offline consumption, driving the recovery of the physical retail industry. Jean-Christophe Babin, CEO of Bulgari, believes that "as international travel resumes, the proportion of luxury spending in China that occurs both inside and outside China will change. While it's too early to say for sure, it's certain that local customers will spend more in local boutiques than they did before the pandemic. ”
At the third edition of Watches & Wonders Shanghai in September, Christoph Grainger-Herr, CEO of century-old watchmaker IWC, shared with Jing Daily the importance the brand attaches to China's line testing. "All *** are individually designed. We have been trying to respond to the local market and localize the brand. "We'll go on field trips, visit a city, and then think about what we can do here and try to factor everything into account." ”
IWC is located in Taikoo Li, Chengdu
IWC.
In addition to enhancing the experience in the retail space, Jacopo Venturini, CEO of luxury brand Valentino, also highlighted the refreshed customer service in the store. "We emphasize the personalization of the customer experience in all aspects, rather than creating the experience with a product-oriented approach. Haute Couture customer service is a unique, customer-centric experience. Considering that China is a key market for Valentino, the brand is also extending this customer service to the digital world and online. "Through our long-standing omnichannel strategy, we have built direct and authentic relationships with consumers across the entire purchase journey and across all touchpoints, allowing them to experience seamless connectivity between online and offline, in-store and digital. We want our customers to have a unified and cohesive experience. ”
A variety of forms of brand localization
Today, when globalization is no longer applicable to all enterprises, striving to operate successfully in all local markets has become an indispensable business strategy in the era of diversified localization. According to Alexis Nasard, CEO of Swarovski, it is important to get to know the local consumer, especially by listening to the salesperson. Since salespeople are "at the forefront of customer and social development", this understanding can be translated into creativity that is unique to the brand, because "as a luxury brand, we don't follow what consumers think, we create beauty and make consumers follow us." ”
Swarovski and other international brands are trying to localize in China.
Swarovski.
Of course, when international brands are marketing in the Chinese market, it is inevitable that there will be a lack of understanding of local operating rules and the actual needs of local consumers, and a localized team can greatly reduce the risks. According to Stefano Curti, Chief Brand Officer, Global Mass Beauty, Coty Group, "We have expanded our local teams to significantly increase our market presence while building tangible connections. With the support of the local team, the Group has also created a localized product portfolio specifically for the Chinese market. "We want to share our world's leading technology and health benefits, combined with local insights and partnerships, to deliver products and experiences that are tailored to the needs of our customers in China. ”
Christoph Grainger-Herr, CEO of IWC, said: "We have someone on our team who is responsible for the brand narrative, and our marketing in China is unique. In order to ensure that communication with local audiences is continuous and in-depth, IWC is constantly launching offline events. For example, the brand has teamed up with Eileen Gu and Laureus Sports Charity Club to start an inspiring conversation in the brand's concept store, hoping to reach consumers with topics that resonate with the audience.
However, as the saying goes, Vuori's founder and CEO, Joe Kudla, believes that unifying and maintaining the brand's unique DNA and tonality across all markets is the key to the brand's international expansion. Although for an overseas brand, how to make local consumers feel the sincerity of the brand localization while ensuring the consistency of the brand tone is a big test. But Mr. Kudla said: "Vuori doesn't need to be a 'chameleon' in this market, our brand values are highly correlated to the market. ”
He also noted, "Community is our unique brand formula. As we enter the Chinese market, we plan to bring the same dedication and community focus to Shanghai. But we also realized that we had to evolve this strategy to make it more relevant to Chinese consumers. At present, the brand has opened accounts on major social media platforms in the Chinese market, such as WeChat, Xiaohongshu and Douyin, and is localizing the community operation that the brand is good at in the Chinese market.
vuori engages consumers through community.
***vuori
In terms of community building, Kelly Jiang, President of Fila Fusion, pointed out, "Through the bridge of community, brands can better understand the needs and preferences of young consumers, get real-time feedback on products, services, market trends, etc., feed back the rebranding, create user engagement and experience brands, and help brands rejuvenate and further strengthen the relationship between brands and consumers." Judging from the signing of the Chinese national skateboarding team and longboard downhill champion Qing Yunhui this year, as well as the collaboration with Team Wang Design, cross-border cooperation is the brand's way of building a young community. "We believe that young people don't stick to just one attitude, they want to stay on top of trends. So for us, crossover is part of our brand DNA, so we don't have any hesitation about the strategy of cross-border cooperation, but just think about how to make more interesting cross-border cooperation. Brian Yiu, President of FILA Greater China, said.
Fila Fusion x Team Wang Design collaboration collection.
***fila fusion
The return of the Chinese market presents great opportunities and challenges for global brands. Brands need to be innovative, agile and adaptable to market changes, understand and adapt quickly to local cultures and consumer habits, and build deeper resonance with consumers. In this process, the forward-thinking and precise strategic planning of brand leaders are undoubtedly the key factors for brand success.
Author | jingyi li
Edit | mos wu