What are premium brands in China
The concept of “premium goods” was originally directly related to exclusive, handmade products that were not available to the mass buyers. The main value of such a product is the ability to emphasize status. Therefore, customers are ready to pay more for premium brands. There is a so-called brand markup. Such products bring the buyer closer to the status of rich people.
Now the range of premium products has become much wider. The basis for creating and promoting premium brands in China is correct positioning.
Two types of premium brands in China
From the point of view of marketing promotion, premium brands can be either status products and products with unique properties or history.
The first type is brands which deal with so-called status goods. This market segment includes famous brands of perfumery, haute couture, pret-a-porter clothing and some other product categories. They immediately assume the use of prestigious promotion channels, expensive advertising materials, appropriate packaging design. That is, everything that will speak about the high cost of the product itself and cause associations with the fact that people who use them occupy a high place in the social hierarchy.
The second type – brands which deal with products with unique properties or history, in most cases just a legend (product story). This applies, as a rule, to high-tech goods, real estate, cars, etc.
How to do promote premium brands in China
First of all, Doxaganda team will conduct a comprehensive analysis of the market, competitors, target audience and marketing strategy. It will help determine the strengths and weaknesses of the company, as well as the vacant market niche and unmet needs of the target audience, which should be emphasized.
An important aspect when promoting luxury brands is a clear understanding of product features. Doxaganda distinguished branding for premium products and mass-market products. When creating a branding strategy Doxaganda team takes into account the specifics of the target audience and skillfully emphasizes the design of the products by premium brands.
Target audience of premium brands in China
All the features of premium brands stem from the characteristics of their target audience. The core of the target audience is wealthy people. According to McKinsey, there are two age groups of consumers that luxury brands are targeting – millennials and Gen X. Today, a new young millennial shopper has clearly emerged on the market. A wave of very young but rich people is ready to give millions to bring themselves closer to high society. Therefore, it is important to make your brand attractive for young consumers.
Advertising for premium brands in China
Premium brands are more difficult to promote because the target audience is capricious and whimsical. However, the right branding strategy can bring the company substantial profit. In the positioning of premium brands, it is important to use different tools and methods of communication with consumers and promoting the company. Knowing the portrait of a potential buyer, we can suggest the advertisement that he wants to see, and, therefore it increases the possibility to buy. Doxaganda analyzes the interests of the target audience, the sites most visited by them, activity in social networks. The more we know about the customer, the better we can make the ad that people want to buy.
Another tool is KOL – people who promote your brand. Wisely chosen ambassadors can bring more customers and increase brand’s revenue.
Personalization is important for premium brands in China
Products offered by a premium brand is not so much about communicating with the product or service itself. Premium brands, together with the product, offers entry into a certain elite club, a touch of something exclusive. Another difference between a luxury goods brand and a mainstream brand is the high level of personalization. The spectrum of personalization can be very wide. There can be nice but expensive little things, such as the Mon Monogram Louis Vuitton service: the customer can add their initials to the bag. The emphasis for premium brands in China should be on cooperation with authoritative resources, closed portals and projects on the network.
Maintaining relations with customers
Regular customers are the main income of the manufacturer’s company. Doxaganda team will help to remind them of yourself. It can be small gifts or congratulatory letters to significant events.
In the luxury segment, the company’s website is its face. People often shop online, so the design of the site they shop on can play a huge role in successful sales and promotion in general. Social media platforms in China also can play a significant role in maintaining relationships with customers. Responding to your brand’s tags in other people’s publications, participation in co-branding, making special offers to your regular customers can help to maintain strong relations with customers. However, some companies are becoming overly reliant on non-stop “promotions” and “discounts” that reduce both the cost of products and their perceived value. Forced to set prices lower and lower in order to meet the demands of constant sales, brands sacrifice quality and reputation.
Service for premium brands in China
In recent years, the premium industry has become firmly established in China. A product in the premium segment is just as important for the buyer as the service accompanying it. From the point of view of premium segment marketing, the more a buyer pays for a service, the more “special” he feels. The secret of success of service for premium brands is in the ability to sell not only a product, but also a status emphasized by quality and service. A buyer interested in purchasing a luxury product is not looking for the lowest possible price. He is much more interested in getting the best possible service.
How Doxaganda helps premium brands in China
The image of a company and its brand is not so much a set of tools, but a set of actions, the history of the manufacturer, its interactions with customers. Doxaganda team will help you to write the story behind your premium brand, create a branding strategy and promote your premium brand in China.