We already highlighted the Douyin app in the section on Singles Day (11 November) sales in China, noting that it corresponds to what we know in the rest of the world as TikTok. Both are owned by tech giant ByteDance.
In a recent interesting article by the China-Britain Business Council, CBBC, it was explained how mainly luxury brands have been very successful in developing Douyin strategies to significantly increase their sales in China.
But how do they do it and why is the Chinese variant of TikTok so important? As indicated by Vogue magazine, the luxury sector is one of the few market segments that has been able to grow considerably in the current complex economic context. It is above all the proximity to the consumer that allows the Douyin app to generate high returns for major brands.
For example, both Burberry and LVMH reported 40 to 50% growth in sales, thanks to their activities on Douyin. The app (the Chinese version, not TikTok) currently has more than 600 million users (!), of which 150 million are thought to have high purchasing power. In fact, it is estimated that more than 70% of regular luxury shoppers use the app. Source: https://www.cbbc.org
