As China resumes luxury spending, users on China’s popular social commerce platform Xiaohongshu believes brands need to seduce them with tantalizing entry-price baubles, or ramp up prices on more luxurious and iconic handbags.
Xiaohongshu users documented busy scenes in Chanel stores across China. According to the platform, the pandemic has forced luxury brands to close their stores in Europe and North America for nearly two months, and seen their share prices plummet, while retailers such as Neiman Marcus, J. Crew and True Religion have filed for Chapter 11 bankruptcy protection.
Luxury brands are implementing a mix of strategies to recapture the business they had lost. In addition to price hikes for best-selling core products, as Vuitton and Chanel did, brands like Dior, Gucci, Prada, Hermès and Vuitton are also doing major pushes of entry-level products with their China-focused campaigns.
Dior unveiled two local ambassadors for its beauty line last week: Actress Ziwen Wang as its cosmetics ambassador, and Jinyan Wu as the face of the Capture Totale skin-care line. Gucci and Prada, on the other hand, are going big on the 520 Chinese Valentine’s Day with a focus on classic styles and lower-price-point items.
Hermès and Vuitton are mixing both tactics. While shipping lots of rare Birkin bags to China, Hermès launched a WeChat mini-program store for 520. The program features products with more affordable price-point products such as silk scarves, belts, earrings, sandals, a Baby Hermy toy and a Kelly wallet available in four colorways.
Vuitton worked with China’s top livestreamer, Austin Li, to promote its fragrance collection on Xiaohongshu, as well as releasing a dedicated campaign later this week.