China’s luxury market in 2024: VICs, omnichannel & CRM strategies.
Despite economic challenges prompting increased savings among over half of Chinese consumers in 2023, China’s luxury market experienced a rebound, fueled by financially resilient core luxury consumers. In this landscape, Very Important Customers (VICs) have emerged as pivotal drivers of consumption, inducing luxury brands to pivot their focus from entry-level consumers.

In tandem with this shift, brands are embracing digital innovations to cater to digitally-savvy Chinese consumers, facilitating instant communication across online and offline platforms. The convergence of digital and physical realms is evident as omni-channel strategies redefine retail practices. CRM systems provide crucial tools for creating highly personalized customer experiences, enabling luxury brands to tailor marketing, communication, and offerings to meet the unique preferences of their clientele, fostering lasting loyalty.

The insights provided in this report, crafted in collaboration with Daxue Consulting, shed light on the evolving landscape of China's luxury market and offer valuable guidance for luxury brands aiming to navigate this dynamic environment effectively.

SOME KEY FINDINGS FROM OUR REPORT :

  • • China’s luxury market has embraced a new normal, with a significant emphasis on domestic sales, particularly boosted by the appeal of duty-free options in Hainan and a wider product offering.
  • • VICs are pivotal in China's luxury market, with brands prioritizing tailored strategies to engage and satisfy them, including exclusive access, personalized gifts, and invitation-only events.
  • • Luxury CRM systems play a pivotal role in facilitating these strategies, enabling brands to cultivate personalized digital relationships with their VICs.
  • • The power of luxury CRM lies in its ability to offer a “one-stop shop” luxury experience, where brands can provide post-purchase services like cleaning, tailoring, maintenance, product exchanges, and adjustments both online and offline, ensuring customers receive the same quality of service wherever they engage with the brand.
  • • WeChat serves as the main social CRM platform in China, enabling luxury brands to gather data from multiple channels and employ personalized strategies to enhance customer loyalty and satisfaction while ensuring a cohesive and personalized experience throughout the consumer lifecycle.
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China’s luxury market in 2024: VICs, omnichannel & CRM strategies.
The insights provided in this report shed light on the evolving landscape of China's luxury market and offer valuable guidance for luxury brands aiming to navigate this dynamic environment effectively.
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Download our Whitepaper
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CASE
STUDY

Gamifying F&B
E-commerce with a
Mini-Program

Objectives

Zikoland, a dynamic community-centric company, partnered with VO2 APAC to simplify their daily operations and reinforcing their position as a leader in delivering top-quality products with exceptional service. The goal was to digitalize their existing offer, captivate a new audience and streamline their operations, fostering a seamless experience for their diverse communities. Together, we crafted an interactive Mini-Program with gamification elements, offering a unique shopping experience for groceries, wines, pets' food, and more.

Context &
Challenges

Defining the games rules, and the pricing logic around it was challenging during the workshop phase as well as during the development and testing phase. Users collectively reduce prices based on their individual purchases.
Pages are live and always up-to-date, VO2 APAC hence installed web sockets to insure a seemless experience for the customer but also for the admin back office user.

Methodology

A series of workshops were organized between both teams to understand the internal business work flow and the new commercial direction Zikoland wanted to take within their community. This in-depth work was made to build a coherent solution that would perfectly connect internal and external needs. An agile method in the development and maintenance is required to ensure flexibility for Zikoland team and business priorities.

Deliverables

  • Custom ERP system that streamlines customers orders, customer service management, inventory, finance
  • Gamified interactive Mini-program
  • Instant order processing
  • Back office team training sessions
  • On-going maintenance to deliver new features and evolutions

1 Year

development

700

users

11

talents involved

1 Year

development

700

users

11

talents involved

CONTACT
OUR TEAM

Talent

Tech-savvy, business-minded, or UX design-inspired? Join our team to unleash your potential. Contact us!

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Client

Office 301, building 6
50 Yuyao Road, Shanghai, China

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