With over 1.16 billion active users in more than 200 countries, WeChat is continuing to expand its influence, particularly in China. Many luxury brands have recognized the potential of the platform and have already invested in it due to its ability to offer branded spaces and provide a range of features for storytelling, customer experience, and conversion. However, a recent report by the Digital Luxury Group and JINGDigital suggests that these brands may not be utilizing WeChat to its full potential.
The WeChat Luxury Index 2020 report focused on a panel of 35 luxury brands with a WeChat brand community ranging from 3,000 to 3 million followers. The study analyzed the brands’ practices on WeChat from January to December 2019.
One key finding of the study is that there has been an increasing volume of content from luxury brands on the platform. In 2019, 67.52% of the brands analyzed used their maximum quota of four monthly push contents authorized by WeChat, compared to only 17% in 2018. While this may seem like a good strategy to stay relevant and engage with users, it also creates a challenge for brands to stand out in a crowded marketplace. Furthermore, the study found that many brands tend to publish their content at similar times, particularly on Thursday and Friday evenings. To differentiate themselves, the report recommends brands to post content during less crowded time slots, such as mornings during the week or Saturday nights.
Another important factor highlighted in the report is the attention span of users on WeChat. The longer a post is on the platform, the more likely users are to lose interest. The study found that around 20% of users drop off after scrolling the equivalent of 3.27 times the length of their screen, and this figure increases to 50% when scrolling 8.87 times. To combat this, brands are advised to create shorter and more dynamic content, such as illustrations, infographics, and videos, in order to capture users’ attention early on and prolong engagement.
Personalization is also emphasized as a key strategy for brands to engage their online communities. However, the report reveals that less than half of the luxury brands surveyed (45.71%) employ segmentation to provide personalized content to their audiences. This may be due to unfamiliarity with the medium or lack of time and budget. The report suggests that even simple changes, such as adjusting titles and cover images to target different interests and sensitivities of audience segments, can have a significant impact on engagement. Brands are advised to conduct experiments and A/B testing to observe the response of their communities.
Overall, the WeChat Luxury Index 2020 report highlights the need for luxury brands to optimize their strategies on WeChat. By posting content during less crowded time slots, creating shorter and more dynamic content, and personalizing content for different audience segments, brands can enhance their presence and engagement on the platform.
Useful links:
– Digital Luxury Group
– JINGDigital
