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Insights Report - 2021 Douyin Luxury Industry Report

According to the “2021 Douyin Luxury Industry Report” released by Trend insight, China’s luxury goods consumption growth will lead the world in 2021, and major brands have deployed content fields one after another.

The consumer group in second-hand luxury goods market continues to grow, and the luxury consumer age group is gradually younger. According to the analysis of the report, the 18–23-year-old Gen-Z group pays more attention towards luxury goods than the 41-50-year-old Gen-X group, while the 24-40-year-old Gen-Y and Boomers II group over 50 years old pay slightly lower attention towards luxury goods. The Gen-Z group will be the new target group of the brand.

In Douyin, women are still the main force of interest in luxury goods, while users in third tier to lower tier cities show a high level of attention towards luxury goods. From January to November 2021, from the analysis of luxury interest users follow categories, the Top 2 most popular luxury categories for men and women, mainly clothing and luggage, followed by shoes, jewellery, watches, etc.

“FACT” operation to drive long term growth of luxury goods business

FACT: F - Field (self-broadcasting by merchants) A - Alliance (talent matrix) C – Campaign (marketing activities) T – Top KOL (top V)

For luxury content, through the combination of these four business matrices, from daily sales operation and adopts the methods of “self-broadcasting by merchants” and “talent matrix” to accumulate crowds, long term operation and expansion of traffic, by realise user assts to make business grows effectively. In addition, the brand also uses “marketing activities” and the influence of “top V” to expand the popularity and gather traffic to make the product explode! Achieve win-win results for products and marketing.

The brand “Bally” runs through the formulation of self-broadcasting plans, and accumulates brands based on fan portraits. Through daily comprehensive collaboration of talent matrix, the strong publicity of star talent and the strong fan recommendations will be launched at the same time. In addition, Bally and luxury talent will also cooperate to hold special events during Valentine’s Day and luxury fashion season, with popularity expansion and concentrates traffic allows products to be explode.

2021 January – November trends in number of luxury content creators on Douyin

Year-on-Year growth in the number of talents at all levels

Ten million fan talents: +260%

Millions fan talents (100m - 1,000m) : +173%

Ten thousand fan talents (1m - 100m) : +140%

Click here to download the full report in Chinese.

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