Industry Background
According to “Mainland China and Hong Kong Luxury Market Insights” released by PWC, it is estimated that by 2025, the global luxury goods market will grow at an average compound annual growth rate of around 11% to reach $447 billion. The Asia-Pacific region has become a significant growth engine for the global luxury goods market. It is expected that by 2025, the Chinese luxury goods market will reach 816 billion RMB, accounting for approximately 25% of the global luxury goods market share.
As major luxury giants continue to release their financial reports for 2022, the Chinese market remains one of the most closely watched markets. Behind the rapid recovery of the luxury goods industry after the pandemic and its remarkable resilience lies the core driving force of rapid growth—consumer upgrades. The rise of lifestyle driven by new media has led people to pay more attention to brands and lifestyles than ever before, making brands more easily disseminated.
For such consumer demand growth that exceeds income growth, especially in the Chinese market environment, its unique and scarce characteristics, as well as symbols of wealth, prosperity, and individuality, have become an indispensable part of brand building and inheritance process under social media marketing.
Challenges
Under intense external competition pressure in the competitive Chinese market, the marketing departments of luxury brands face the following three major challenges:
- Restricted data acquisition — due to time-consuming efforts to obtain platform data only at specific intervals and low flexibility
- Lack of content insights — not able to obtain insights from content data to support social media marketing strategies and content production
- Language barriers — Chinese content makes it difficult for overseas headquarters to understand the Chinese market and marketing environment
Solution
As a social media management platform, KAWO helps the marketing teams of luxury brands achieve one-stop competitive data acquisition and insights, in-depth content insights, and seamless connection between domestic and foreign market departments.
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