2024 Douyin Luxury Industry Summit: Targeting Audiences and Content Upgrades to Seize New Omnichannel Opportunities

The “business challenges” faced by global luxury brands have intensified, becoming a widely recognized issue in recent years. Amid this pressure, luxury brands face three major marketing challenges: How can they accurately identify the target audience and gain precise insights into their needs? How to effectively communicate with consumers and initiate connections quickly? How can they assess the effectiveness of online and offline omnichannel marketing?

In the first half of 2024, the GMV (Gross Merchandise Value) of luxury goods on Douyin surged by over 45%, highlighting Douyin’s emergence as a crucial business platform for luxury brands. To help luxury brands resolving the stalemate, Ocean Engine hosted the “Spark Creativity, Endless Exploration—2024 Douyin Luxury Industry Summit” on August 20th. The summit showcased Douyin’s comprehensive solutions for luxury brands.

From Brand Content to Social Scenarios: ‘OPUGC’ Unlocks New Horizons for Luxury Marketing.Luxury brands are consistently generating buzz, with styles like Miu Miu girls and intellectual fashion gaining popularity on Douyin. High-end brands such as LVMH, GUCCI, and Cartier are hosting offline events like pop-up exhibitions while creating online “sub-events” to engage with consumers.

This year, Douyin’s innovative “OPUGC” (Occupationally Generated Content (OGC) – Professional Generated Content (PGC) – User Generated Content (UGC) ) interaction model has introduced new opportunities for luxury brands in content marketing. It deepens connections with users and transforms into an impactful marketing scene for luxury brands. Unlike traditional integrated marketing strategies, the “OPUGC” content integration approach focuses on content, enhancing its value through impact, coverage, and authenticity to drive consumer engagement and brand conversion.

Specifically, Douyin provides the IP to create unique luxury marketing solutions, enhancing brand value with IP momentum and generating authoritative OGC content. This is then linked with influencers from the fashion, art, culture, and sports sectors, using formats and methods like topic challenges and AICG to produce engaging PGC content. This approach boosts the luxury brand’s exposure, reaches the core audience precisely, and deepens brand recognition. A large number of users, influenced by the OGC and PGC content, spontaneously share authentic UGC content on Douyin, achieving triple coverage of brand influence, reach, and reputation.

Douyin’s “DOU Content Lab” enhances content originality, with a dedicated production team familiar with the platform’s users, offering customized on-site content ideas for global luxury events, and leveraging the platform’s IP to maximize brand content value.

By reimagining brand content and social scenarios, luxury brands are building and reshaping their marketing environments.

For the luxury industry, it is not easy to find the right people, especially to capture the hearts of the GEN Z generation who are at the forefront of technological and cultural change. They come from different cultural circles, have distinct and constantly changing personalities, and socialize and express themselves soberly and authentically. Therefore, only with more refined labels can we better understand them.

Douyin’s super-detailed tag insight system includes more than 2.3 million refined tags such as crowd/product/content/touchpoint/industry dimensions. Through more scientific tagging logic and more refined crowd circle anchoring, brands can find the consumer groups they want.

After finding GEN Z, how to break the ice with them? Douyin’s answer is: technological innovation.GEN Z’s life is inseparable from high-tech production tools and digital social networking. They are positive about all new technologies and are riding the wind and waves in the AI era. They are willing to share their attention span, which is only 8 seconds shorter than that of a goldfish, with a higher-dimensional technology experience, so that technology can empower life. For example, Douyin’s accurate facial capture and newly upgraded AR/VR technology allow users to easily be in the same frame with Van Gogh across the ages.

In the face of the demand for more offline scenarios for luxury goods, Douyin has opened up through the CRM membership system, attracted new members for the brand through the online entrance, and introduced more accurate people for the business based on LBS recommendations. In 24 years, the “OPC” matrix has created a new grass-planting model. It is expected to attract offline stores through SA content, provide a one-stop service experience of new product delivery/physical display/reservation service, and complete more accurate “shopping guide” content conversion in the future.

At the same time, Douyin Yuntu system can take into account both short-term and long-term measurement and track long-term brand power.

From a rational perspective, its Campaign cycle tracking capability covers the early, middle and late stages of the marketing plan in terms of time span, and with the 5A and A3 basic models, it provides brands with a mature scientific marketing full-domain measurement system.

From a perceptual perspective, in the short term, we can use search + SOV + NPS (recommendation value to others) to measure brand power, and in a longer period of time, we can conduct multi-dimensional brand image insights such as voice, association, reputation, preference, etc., and expand to a measurement system for measuring brand image.

By emphasizing the latest trends in the luxury products sector and uncovering potential future prospects, Douyin utilizes its powerful content marketing strengths and extensive data technologies to perpetually refine its marketing environment and instruments. It is dedicated to improving generation, nurturing, and progression of premium content, collaborating with brands to forge innovative approaches to addressing marketing obstacles.