After Louis Vuitton, recently Prada, Dior, and Burberry have also opened WeChat Channels accounts. The four well-known luxury brands are quickly responding to this new feature of WeChat platform and investing in it. Does it mean that WeChat Channels will become Luxury brands’ next battlefield in China market?
What is WeChat Channels?
WeChat Channels is a short-content function newly developed by WeChat, where the content could be either video within one minute or images no more than nine. Compared to the top short-video platforms of Douyin (Tiktok) and Kuaishou, it is not powerful in editing video or entertaining audience. Instead, it focuses on helping brands drive leads and build value.
Why for luxury brands?
While the function is still under internal test, many head short-videos creators, celebrities and medias have joined the platform, as well as the luxury brands mentioned above.
As one of the most popular social media in China, WeChat has more than 1.1 billion users who are highly active. Although WeChat Channels has a secondary entry, it still has the absolute advantage in terms of traffic leads, making it easy to gain exposure and followers even at the beginning.
Taking Prada as an example, its WeChat Channels account has released 17 promotional videos about Prada 2020SS. The videos were all commercial advertisements shot, edited and produced by professional teams. WeChat Channels account serves for not only increasing the traffics of luxury brands, but also building its brand image and supporting the overall ecosystem within WeChat.
By clicking the link within the post of brand’s WeChat Channels, users can enter WeChat Official Account of the brand for product details. On this page, there will be other links directing to e-commerce WeChat Mini Programs, guiding the users to make the purchase. Thus, WeChat Channels, WeChat Official Account, WeChat Mini Program and WeChat Pay have together formed the closed loop of content monetization.
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Further, it is reported by WeChat Ads that the average growth rate of WeChat advertisements placed by the luxury industry has exceeded 90% in the past 5 years, while the use of intelligent advertising optimization tools has also increased 5 times.
Therefore, it is effective and able to cover all functions for a brand to place its overall arrangement on WeChat. The closed-loop helps brands grow their private-domain traffic rather than compete for unpredictable public-domain traffic. That is exactly what luxury brands value.
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