How and why luxury brands should embrace TikTok


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TikTok has become an exception in the social media world. The short video app features over a billion monthly active users and a presence in over 150 countries.

Very few platforms have gained such rapid popularity across the world as TikTok. The immense popularity of the short video sharing app among Generation Z makes it an essential part of the marketing strategy of any luxury brand.

Here are some key strategies for interacting with the younger generation.

TikTok in numbers

Unlike other social media platforms that have been slow to develop, TikTok has literally exploded globally after its international launch in 2017.

Here are some interesting facts about TikTok.

  • TikTok has over a billion monthly active users.
  • TikTok has been downloaded over 2.6 billion times.
  • Gen Z makes up about 60% of TikTok’s user base.
  • TikTok has the highest engagement rate among social platforms, including Instagram and Twitter.

Related: TikTok vs IG Reels: 3 Reasons Your Brand Should Take Advantage Of Both

Why luxury brands should embrace TikTok

TikTok is notoriously famous among younger users, with almost two-thirds of its users coming from General Z. TikTok’s affiliation with a younger audience makes it a potential sales channel for luxury brands around the world.

Generation Z will account for 20% of global luxury spending

A recent report reveals that Gen Z is on track to become one of the luxury industry’s top spenders by 2025, accounting for 20% of net luxury spending. Associated with the millennial cohort, these two generations will represent 180% growth in luxury markets between 2019 and 2025.

Another critical idea for luxury brands is that over 85% of luxury purchases in 2020 were influenced by digital content or marketing efforts. Luxury brands with a strong online presence can leverage their digital footprint to increase sales.

Younger users spend more time on TikTok

The luxury industry lags behind other sectors when it comes to riding new waves or technological trends. New brands or existing brands that adopt TikTok are likely to increase their levels of customer interaction and their conversion matrices.

How Burberry and Gucci Reached Millions on TikTok

Some luxury brands are already taking advantage of TikTok’s huge user base, and Burberry is the perfect example.

Burberry launched #TBChallenge for the new Thomas Burberry Monogram collection, challenging its audience to create the Thomas Burberry Monogram Motif design with their hands to unlock a new goal. The challenge generated more than 57 million views and 30,000 videos generated for the brand.

The “Gucci Model Challenge” was another example of TikTok’s unparalleled organic reach. Gucci generated over 12 million views through its organic campaign, enticing users to create videos with layered outfits. Likewise, the Prada creator’s partnership with an influencer has generated over 36 million post views.

Related: Here’s Why Not Being On TikTok Is A Huge Mistake

A practical strategy for luxury brands to succeed TikTok

A growing number of luxury brands are already harnessing the power of TikTok’s explosive influence and viral reach.

Here are some TikTok marketing strategies that brands can leverage for better digital delivery.

Influencer collaborations

TikTok influencers provide an established strategy for luxury brands to reach a wider audience base. Several brands engage with influencers to increase their organic reach.

  • Charli D’amelio and Prada: Prada is one of the first brands to work with influencers, including Charli D’amelio. The luxury Italian fashion house invited D’Amelio to Milan Fashion Week, where the influencer interacted with models, went backstage and created a live experience for her audience. Not only did Prada reach millions of viewers, it also connected with a younger user base.

Influencer collaborations require three simple steps.

  • Find the right influencers: The key is to work with influencers with the right user base for a brand. The TikTok Designer Marketplace features all the important matrices that brands need to know before collaborating with an influencer.
  • Create content adapted to the influencer’s followers and the brand. This can be done by unboxing the product or inviting the influencer to behind-the-scenes experiences, photoshoots.
  • Engage in cross-platform promotions. In addition to leveraging TikTok, brands should promote their content on all social profiles of all influencers, increasing their reach across multiple platforms.

Paid campaigns on TikTok

Another strategy for luxury brands is to run paid campaigns on TikTok.

Branded Augmented Reality (AR) allows businesses to create custom branded filters, lenses, or even stickers for users. TikTok users can unlock these filters or goals by creating a video with a hashtag or brand name.

In addition to branded AR, luxury brands can run paid hashtag challenges. The advertising brand can sponsor a hashtag, inspiring TikTok users to use it for content creation. Brands may offer promotional products or other prizes to top content creators throughout campaigns.

Apart from these strategies, TikTok offers different types of advertisements for brand promotions.

Direct content creation through branded accounts

Luxury brands can interact directly with their users through their own TikTok brand accounts. Some of the leading luxury brands to do so include Gucci, Louis Vuitton, Burberry, and Alice + Olivia.

Brands can create content around:

  • Behind the scenes videos arouse a lot of curiosity among users because of their exclusivity.
  • Live Events quick reactions from most of the brand’s followers. Prada has used this tactic before with D’Amelio.
  • Style tips for users are likely to resonate well with followers. It can be easy style advice with or without branded products. The idea is to stimulate engagement.
  • Dress up challenges for followers are among the best types of content for mass user awareness.

As more brands embrace TikTok, latecomers will likely pay the price for not taking advantage of this new avenue of promotion. While TikTok faces strict regulations in some regions, its presence in more than 154 countries will continue to provide a wider audience for luxury brands.

Related: How To Use TikTok To Promote Your Business

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