Digital & Intelligent Pathway: Xiaohongshu and VOGUE Business Unveil Groundbreaking Lifestyle Marketing Insights at Milan Summit

MILAN, Sept. 30, 2024 /PRNewswire/ — As the exclusive strategic partner, Xiaohongshu teamed up with VOGUE Business to host the The Digital Silk Road: Pioneering the Future of Luxury Lifestyles summit at Milan’s historic Palazzo Serbelloni on September 26-27, 2024. The event aimed to redefine marketing, product innovation, and brand evolution through a human-centric lens, nurturing a more creative and vibrant ecosystem for global brands. 

The summit gathered marketing experts from prestigious global brands and senior executives from Xiaohongshu’s Beauty, Luxury and Clothing, Fast-Moving Consumer Goods (FMCG), and Durable Goods departments. Together, they explored the forefront of digital marketing trends and pioneering lifestyle ecosystems within China’s luxury, beauty, wellness, beverage, and home living domains. 

Xiaohongshu, a trendsetting hub for brands to gain popularity, boasts a vast young consumer base and a high-quality content ecosystem. With deep insights into industry trends and user preferences, it has become the premier marketing platform for brands seeking to forge emotional connections with Chinese consumers.

For those venturing into the Chinese market or seeking new growth opportunities, Xiaohongshu is not just an optimal community to reach target consumers but also an essential partner for expanding their presence in China. It serves as a crucial platform for business growth, making now the prime time to join this content community platform. 

In the era of digital transformation, artificial intelligence (AI), social media, and innovative commercial solutions are redefining modern lifestyles and enhancing human potential. The two-day event delved into cutting-edge digital marketing tools and emerging consumption trends, with Xiaohongshu showcasing human-centric marketing strategies spanning the luxury, wellness, beverage, and home living sectors. 

In today’s digital landscape, public attention has fragmented, leading to diverse interest circles and personalized lifestyles. How can brands capture the attention and recognition of a broader audience? During a roundtable titled “Tapping lifestyle trends the micro-cultures driving engagement”, Shawn Li, General Manager of  the Commercial Durable Consumption Division at Xiaohongshu, exchanged insights on shifting consumer behaviors with global leaders in fashion, home furnishings, and beauty. 

— Influencers now serve as messengers and amplifiers within specific interest circles, emerging as a novel communication medium and reshaping communication dynamics within these communities;

— Younger consumers prioritize the blend of personal needs and aesthetic experiences, valuing emotional depth, sentimental value, and individuality.

Health, a trending global topic in recent years, dominated the FMCG-Wellness Breakfast Session on September 27. The event, themed “Navigating the new tools for digital success”, featured Rex Zhang, General Manager of the Commercial Fast Moving Consumer Goods (FMCG) Industry Group Division at Xiaohongshu, and Jayden Wu, Head of the Healthcare and Wellness Industry Division at Xiaohongshu. They examined Chinese market trends for global wellness brands: 

— The seamless integration of social media and e-commerce is transforming shopping habits and brand experiences, ushering in an unprecedented revolution in the health sector.

— China’s youth are embracing emerging wellness trends, incorporating traditional Chinese practices, and unlocking substantial consumption potential.

Cynthia Zhong, head of the Luxury Industry Division at Xiaohongshu, presented on the theme “Xiaohongshu:The new frontline of lifestyle platform” showcasing the platform’s unique approach to unlocking brand potential alongside global fashion, luxury, and lifestyle brands. 

— Xiaohongshu has cultivated a distinctive community ecosystem by leveraging its differentiated community positioning and extensive user base, fostering a trusted and engaging atmosphere.

— With premium user-generated content (UGC) as its cornerstone, Xiaohongshu enables brands to authentically share compelling, relevant content featuring users’ genuine experiences, creating exclusive brand identities and enhancing brand appeal.

Human-Centric Marketing: Unlocking Marketing Potential

At the summit, Xiaohongshu unveiled its comprehensive insights into 20 demographic groups, with a particular focus on luxury through the introduction of the “Luxury Living” persona. This classification segmented luxury consumers based on their varied spiritual needs, highlighting four core motivators behind luxury spending and granting attendees an insightful glimpse into Xiaohongshu’s luxury consumer base. The diversity of the “Luxury Living” persona opens up fresh avenues for brand-consumer interactions, aligning brand identity with consumer self-expression. It satisfies the target consumers’ quest for self-identity markers and a sense of belonging, transcending conventional status symbols and instead embodying the essence of individuals, nurturing their evolving spiritual world and cultivating a deep, lasting emotional connection with brands. 

Additionally, in the realm of wellness, health-conscious consumers across different age groups exhibit varying physical, experiential, and expressive desires in diverse usage scenarios. Based on health philosophies, consumption motivations, and use settings, Xiaohongshu identified eight key demographic groups as “Physique Care Advocates” within the healthcare and wellness sector at the summit, including Vitality Chargers, Workplace Efficiency Seekers, Slow Living Advocates, Glow-Up Researchers, Self-Care Enthusiasts, Fitness Fanatics, Endurance Explorers, and Silver-Haired Trendsetters.

This comprehensive segmentation underscores the escalating health consciousness among young generations, who adopt a proactive stance in managing their health and drive the health consumption landscape towards greater daily integration and diversity. Xiaohongshu enables brands by unveiling real-world consumer scenarios, and cultivating profound understanding of diverse pain points and shopping preferences. Through a meticulous grasp of consumers’ wellness requirements, brands can enhance their offerings, emphasize core competencies, and fortify competitive advantages, ultimately widening market reach for products that truly align with user demands. 

In the realm of home living, Xiaohongshu pinpointed four distinct personas: Nomadic Youth, Nesting Youth, All-Rounders, and Home Curators. Through collaboration with Xiaohongshu, brands can tap into these unique consumer segments, anchored by the “People-Needs-Scenarios-Trends” framework. Encompassing home decor aesthetics, furniture and appliance efficiency, and emotional satisfaction, brands receive a holistic analysis of crucial growth trends within the home living sector. Jointly, they can carve out innovative avenues for user engagement and catalyze business expansion. 

Innovative Solutions: A Win-Win Ecosystem for a Shared Future 

Brands on Xiaohongshu have enhanced their marketing strategies and bolstered business value, streamlining the process from inspiration to purchase. Xiaohongshu, along with its partner brands, has introduced a novel marketing approach that caters to the preferences of the new generation by bridging the gap between online and offline channels. This strategy has further expedited consumer engagement and communication, providing a convenient, efficient, and reassuring shopping experience.

For luxury brands, effectively communicating brand mantra and proposition is vital in engaging with their target audience. The runway serves as the cornerstone for brand storytelling, acting as a bridge between luxury consumption scenarios and marketing endeavors. Xiaohongshu’s distinctive “See Now, Buy Now” model for luxury fashion shows presents a groundbreaking solution. During Louis Vuitton’s (LV) Early Fall Women’s Collection show, the brand premiered a hybrid live streaming format on Xiaohongshu, showcasing both the runway and a preview event. Through this exclusive collaboration, LV paved an innovative marketing pathway, spanning from show highlights and multi-faceted product previews to direct purchasing via its mini-App, achieving a seamless transition from brand exposure to sales conversion.

Meanwhile, Xiaohongshu continues to break new ground in innovative marketing. Capitalizing on its robust consumer engagement, the platform has established a unique KOS (Key Opinion Sales) ecosystem, proving instrumental for brands in expanding their customer base. Currently, Xiaohongshu boasts over 100,000 business sales accounts spanning all industries, with nearly 2 million content posts. The KOS ecosystem efficiently broadens customer reach, streamlines ordering processes, and bridges the communication gap with consumers. By leveraging various content formats and marketing strategies, it communicates brand identity and aesthetic propositions, accelerating brands’ digital transformation and achieving a seamless closed-loop from inspiration to purchase.

Since its inception, Xiaohongshu has served as a bridge, connecting users to premium products and real-life experiences to the commercial world. With a human-centric approach, Xiaohongshu provides a seamless solution for brands’ business growth and sales conversion. This is achieved through practical marketing strategies, diversified brand solutions, and pioneering omnichannel conversion pathways. 

Looking ahead, Xiaohongshu remains committed to collaborating with brands to navigate the dynamic consumer market, fostering emotional resonance and value alignment with users, and fueling enduring brand vitality. 

Source: PR Newswire

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Xiaohongshu x VOGUE Business in Milan: Exploring New Paths for Sustainable Growth in the Luxury Industry 

MILAN, Sept. 30, 2024 /PRNewswire/ — In the face of a global downturn in the luxury market, identifying new avenues for innovation has become a pivotal challenge for leading luxury brands.

China’s luxury market is transforming, characterized by the rise of new consumers, accelerated digitalization, and shifting consumption patterns, each having a significant impact on the industry.

As the birthplace of fashion trends in China, Xiaohongshu has emerged as the go-to social media platform for brands looking to establish a foothold in the Chinese market, engage in meaningful conversations with consumers, and drive growth.

From September 26th to 27th, Xiaohongshu, in collaboration with VOGUE Business, hosted the Milan Digital Summit themed “The Digital Silk Road: Pioneering the Future of Luxury Lifestyle”. The event focused on digital transformation practices, showcasing how brands can adapt their marketing approaches to expand their presence and reach in China.

Co-Creating a New Model to Develop a Fresh Perspective on Marketing in the Chinese Context

Luxury brands are increasingly incorporating local cultural elements into their branding. However, to truly succeed in the Chinese market, they must also develop the ability to craft compelling Chinese cultural narratives.

Xiaohongshu, as a key platform for luxury products and a hub for high-potential consumer groups, has become essential for major brands seeking new customers and enhancing market penetration.

At the summit, Cynthia Zhong, head of the Luxury Industry Division at Xiaohongshu, explored how brands can offer more exceptional, immersive, and personalized experiences by increasing communication touchpoints and employing flexible seeding strategies.

Cynthia emphasized that Xiaohongshu’s deep-rooted fashion culture and commitment to “human-centric marketing” enable brands to rejuvenate and uncover new business opportunities through effective strategies, fostering a beneficial content ecosystem for both brands and shoppers.

As China’s leading social media platform, Xiaohongshu offers brands a unique marketing perspective localized for China. To build stronger emotional connections with consumers, it is essential to focus on their core needs and gain deep insights into the evolving behaviors of different consumer groups.

The summit showcased Xiaohongshu’s exploration of the relationship among users, needs, and products, introducing the “Enjoy Luxury” lifestyle segment to uncover the consumption logic of this group and highlight their value within the luxury sector.

By understanding the varied motivations of different consumer groups, brands can develop tailored communication strategies that ensure the aesthetics, artistry, culture, and prestige of luxury products resonate more with consumers’ self-perceptions.

From “Seeding” to “Experiencing”: Creating a Win-Win Ecosystem

Countless luxury brands have revitalized their marketing strategies and enhanced their commercial value on Xiaohongshu.

The platform not only serves as a key community for major campaign marketing but is also a prime venue for building brand value. Xiaohongshu has developed a unique Key Opinion Sales (KOS) ecosystem, helping brands expand their customer base and facilitating the digital transformation journey from interest to purchase.

Xiaohongshu has also launched an official mini-program focusing on “brand building, online conversion, and interactive communication,” enabling efficient consumer engagement, deep connections, and driving comprehensive conversions and growth.

International shows serve as vital touchpoints for luxury brands to express themselves and forge deep connections with consumers. With a global perspective, Xiaohongshu’s presence in Milan supports brands in rejuvenating their enduring vitality and sparking the next wave of consumption growth.

Source: PR Newswire

Xiaohongshu and VOGUE Business Redefine Home Aesthetics During Milan Fashion Week

MILAN, Sept. 30, 2024 /PRNewswire/ — At the recent Milan Fashion Week, the world’s premier fashion showcase, a wave of new trends emerged, notably in the realm of home decor. Here, fashion and home furnishings merged seamlessly, signaling a novel trend. Xiaohongshu, in collaboration with VOGUE Business, hosted the VOGUE Business Milan Digital Summit themed “The Digital Silk Road: Pioneering the Future of Luxury Lifestyles” during the week. Mr. Shawn Li, General Manager of Commercial Durable Goods Business Group at Xiaohongshu, was one of the speakers on the “Tapping Lifestyle Trends: The Micro-Cultures Driving Engagement” panel. The summit, which explored the evolving concept of home living, provided profound insights into the changing lifestyles and preferences of today’s youth in China. It introduced innovative ideas and trends that are reshaping how young people envision their living spaces, offering avant-garde perspectives for brands on consumer engagement. The event also sparked a new discourse on aesthetics in home and lifestyle, creating a confluence of fashion, art, and daily living.

Xiaohongshu: A Go-to Social Media Platform for Tens of Millions of Users Finding Home Inspiration

Aligning perfectly with Xiaohongshu’s human-centric values, consumers are increasingly seeking harmony between their home environments and personal lifestyles. As a lifestyle community beloved by youth, the social media platform excels in understanding people’s needs, gaining insights into emerging consumer scenarios and industry trends in China. According to Xiaohongshu Research, as of Q2 2024, with a monthly active user base of 300 million, nearly 65% of whom are passionate about home life.

The shift has revitalized the home furnishing sector. Data from the Xiaohongshu Research shows a remarkable surge in home decoration and furnishings content over the last three years. Searches have soared by 450% from January to September 2022 to the same period in 2024. According to Nielsen’s report released in September 2024, about 89% of users prefer searching on Xiaohongshu for product reviews and user experiences before purchasing home appliances and furnishings. Xiaohongshu Research also indicates that Italian high-end brands like Natuzzi are experiencing significant market potential on the platform, with over 500,000 monthly searches, attracting numerous potential buyers.

During the summit, Shawn Li analyzed the diverse trends in the home furnishing sector from a human-centric perspective. By examining user demographics, preferences, and lifestyles, Shawn Li identified four demographic groups: Nomadic Youth, Nesting Youth, All-Rounders, and Home Curators. Emphasizing the “People – Needs – Scenarios – Trends” framework, Shawn Li highlighted Xiaohongshu’s role in helping brands understand their audiences, discover innovative marketing solutions, and outperform competitors.

Xiaohongshu’s Role in Shaping Home Furnishing Trends

In recent years, the flow of home furnishing fashion trends has shifted significantly. Previously, trends were dictated top-down, starting with designers and trendsetters, then trickling down to major brands and eventually reaching consumers. Now, this dynamic has reversed, with consumer behavior driving the trends. Xiaohongshu has been instrumental in the shift, creating a platform that encourages shoppers to express their personal styles, preferences, and lifestyles—effectively advocating for their preferred living environments. Each search, share, comment, and collect of posts on Xiaohongshu reflects the genuine needs of Chinese shoppers, fostering new trends in home furnishings in China that lead to industry innovations.

In September, Xiaohongshu unveiled its latest Annual Home Lifestyle Report. This analysis of community content and user search preferences highlighted eight new home ideas popular among Chinese youth. Focused on human-centric themes, the report emphasized vibrant life scenarios, emotional expression, and attitudinal resonance, enriching insights with warmth and energy. It shows that consumers are keen to reshape residential aesthetics with innovative furnishings and redefine family dynamics through thoughtful design, pushing the boundaries of traditional home spaces. Notably, the approach to incorporating hobbies into home design has evolved from merely finding storage solutions to creating spaces specifically designed around those hobbies. Consequently, more Chinese individuals are establishing specialized home studios dedicated to their passions.

Brand Strategy on Xiaohongshu Shifts: Witnessing Renewing Marketing in Home Furnishings

However, in the home furnishing industry, brands have formed unique business models and product structures due to domain and product differences, leading to distinct consumer decision-making processes. Based on Xiaohongshu’s research on Chinese consumer and business characteristics, brand marketing should start with the overall product structure, deeply understand consumer needs, and tailor strategies to specific category characteristics. For example, in major appliances, furniture, building materials, and daily home supplies, product structures span multiple related categories. Consequently, Xiaohongshu recommends that brands adopt a matrix-style product selection strategy on the platform, crafting content that aligns with consumer preferences and life scenarios. This approach aims to enhance category penetration and captivate consumer attention.

Data shows that the Gross Merchandise Volume (GMV) growth rate of the top 1,000 Single Product Units (SPUs) gaining traction on Xiaohongshu exceeds the overall market growth rate, highlighting the social platform’s refined strategies that can help brands achieve overall success.

The home furnishing industry is on the brink of significant market growth, and Xiaohongshu, the source of lifestyle inspirations in shaping Chinese youth’s living spaces, provides an optimal community for brands looking to expand their influence. Looking ahead, the social platform plans to leverage its extensive expertise in user insights and brand management to drive innovative marketing strategies within the home furnishing sector.

SOURCE Xiaohongshu & PR Newswire

India’s luxury beauty market presents massive growth potential amid unique challenges, finds report by Kearney and LUXASIA

SINGAPORE, Sept. 30, 2024 /PRNewswire/ — Building on insights and industry interest arising from their inaugural whitepaper last year, global management consulting firm Kearney and LUXASIA, the leading omnichannel brand-builder in Asia Pacific, have released a second whitepaper titled “India’s massive untapped growth opportunity in luxury beauty“. This report explores the immense growth potential, complexities, and challenges of the luxury beauty market in India, along with key commercial areas for market success.

Already a billion-dollar market, the Indian luxury beauty market is expected to reach USD 1.6 billion by 2028 and quadruple to USD 4.0 billion by 2035. With an expected CAGR of 14%, India is one of the fastest-growing markets in both Asia and the world. This growth is driven by the country’s overall economic development, a burgeoning middle-class, and increasingly sophisticated luxury-conscious consumers eager to trade-up.

While relatively small compared to its population, the luxury beauty market in India is poised to follow the high-growth trajectory that China enjoyed over the past 15 years. Therefore, it is crucial for brands to enter now to establish their name, win the loyalty of Indian consumers, and ride the impending growth wave. This potential has not gone unnoticed, as numerous international brands have entered India in recent years to capture early-mover advantages.

However, market entry is fraught with challenges. India is a complex market – a “land of many Indias”. Unlike other Asian countries, India’s vast geography and ethnic diversity create divergent consumer preferences across the country. To succeed, brands must develop a range of region-specific (even city-specific) strategies rather than relying on a generic or single-market strategy. Additionally, brands need to navigate operational and regulatory complexities such as product registration and importation while optimizing their supply chain setups.

For India specifically, the three strategic pillars must be addressed: product-offering customisation, targeted regional marketing strategies, and omnichannel distribution optimisation through strategic partnerships. The last point is crucial for unlocking value quickly, such as leveraging a nationwide sales team, including training, deploying, and managing a dedicated network of beauty consultants across various omnichannel environments.

Karan Dhall, Partner at Kearney’s Consumer Industry and Retail Practice, shares, “India’s luxury beauty market is at a pivotal moment, poised for exponential growth. There has never been a more opportune time to invest in this sector. Brands that strategically navigate its complexities will not only establish a strong foothold but also cultivate lasting relationships with a new generation of luxury consumers.”

Shashank Goel, Principal at Kearney, emphasizes, “As we witness increasing consumer sophistication and a robust economic landscape, it’s evident that the time to invest in India’s luxury beauty market is now. Success will hinge on a nuanced understanding of local preferences and the ability to customize offerings to meet diverse regional demands. Ultimately, brands that understand the pulse of Indian consumers will be the ones to thrive in this dynamic environment.”

Satyaki Banerjee, Group COO, LUXASIA, who is also the overall commercial leader for numerous markets including India says, “Despite the complexity and heterogeneity intrinsic to India, it is an extremely vibrant and attractive market for luxury beauty. Growth is expected to come with a sharp inflection point and not gradually over time. Brands need to be present in-market prior to these sudden spikes. It is imperative that brands play the ‘long game’ and invest into an understanding of Indian consumers, as well as the dynamic omnichannel ecosystem in the market. This effort needs to start today. Given the evolving market structure, complexity and information asymmetry, gains are most effectively multiplied by collaborating with the right partner on this journey.”

Dr Wolfgang Baier, Group CEO, LUXASIA affirms, “The time to enter in India is now. However, given the market risks and potentially costly learning curve, brands need expert support to ensure a growing market presence. Having delivered solid growth for numerous brands in India so far, LUXASIA stands ready to lend our expertise and partner with international luxury beauty brands for long-term success in this promising market.”

SOURCE LUXASIA & PR Newswire