China Digital WorkshopIn Association with TONG Digital

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$131bnProjected total value of Chinese luxury spending in 2020.

46%Chinese share of global luxury spending in 2025.

73%Proportion of Chinese luxury spending conducted overseas in 2018.

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58%Chinese luxury consumers are aged under 30.

40%Maserati & Porsche China sales made to female customers.

730mWeibo views for Swarovski’s apology post.

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61%Chinese consumers who search for online reviews.

27%Growth in Chinese luxury online spend (2018).

2xIncrease in digital spend among top 40 luxury foreign brands in China.

RED’s ”Nearby” function allows users to discover dining, accommodation, shopping and tourism recommendations within the vicinity.

RED’s reliance on user-generated-content sets it apart from other Chinese social media platforms. Brands are unlikely to post official content, but rather curate a selection of the best UGC on their accounts.

What really sets RED apart is its commitment to relative transparency and authenticity. Anonymous product reviews and one-click ratings are not a feature (unlike other ecommerce platforms), while influencers are in some cases required to mark their content as paid-for.

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Little Red Book:

China’s Answer to ‘Infotoxination’

⼩红书

150mRegistered users

88%Users are female

66%Users under 30

57%Users live in Tier-One cities

While official subscription accounts can post more frequently, they are hidden away in a separate folder meaning article open rates are much lower.

1.1bnDaily active users

38bnWeChat messages sent every day

50x1/5 users open app more than 50x daily

47%WeChat accounts for almost half of all time spent on mobile

4 hours1/3 users spend more than four hours daily on WeChat

97%WeChat penetration in tier-one cities

24 Hours in the

Life of WeChat

Articles posted by service accounts are inserted right into a user’s chat feed, just like a personal message. This creates an intimacy and directness not found on other platforms. Abuse that intimacy with poor or overly commercial content, however, and WeChat followers will not hesitate to unfollow you.

Since launching a couple of years ago, WeChat Mini Programs have become to must-have extension for any brand’s platform strategy. Essentially a mini-app hosted within WeChat, they offer endless possibilities in the form of integrations with a host of additional functions.

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WeChat:

One App to Rule Them All

微信

WeChat for Luxury

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23%Percentage of Walpole members with official WeChat accounts.

1,758No. WeChat articles published by Walpole members in 2019.

13,841,178No. WeChat article reads across all Walpole members in 2019.

13.96%Average monthly increase in article reads across all Walpole members.

40%Walpole members on WeChat also using Mini Programs.

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The Walpole WeChat IndexThe Walpole WeChat Index 2020 draws on research into the digital presence of 197 member brands in China*.

All information used is publicly available and thus excludes some key statistics such as follower count (viewable only to account owners). While incomplete in this sense, we hope that the following insights will shed some light on an otherwise typically opaque platform.

Over the following pages are rankings broken down by sector, as well asseveral case studies of Walpole member WeChat campaigns from 2019.

* Including Walpole International Members, but excluding Patrons, Strategic Partners, Media, Brands of Tomorrow, Sponsors and Friends.

1 Tiffany & Co. 58 4,017,500 69,267 11,272 194

ARTICLES READS AV.READS/ARTICLE LIKES AV.LIKES/ARTICLE

2 Burberry 63 2,493,241 39,575 7,361 117

3 Rolex 47 1,890,600 40,226 8,306 177

4 Jo Malone London 52 1,474,404 28,354 5,914 114

5 Leica 59 655,462 11,110 4,350 74

6 Farfetch 108 463,882 4,295 1,746 16

7 NET-A-PORTER 49 429,738 8,770 988 20

8 Bentley 39 353,595 9,067 3,921 101

9 Bicester Village 152 215,520 1,418 1,443 9

10 Chivas Regal 36 206,236 5,729 9,005 250

11 Selfridges 26 176,759 6,798 430 17

12 Dunhill 65 159,487 2,454 2,834 44

13 Mulberry 37 150,050 4,055 1,204 33

14 Alexander McQueen 44 148,676 3,379 789 18

15 The British Library 37 148,260 4,007 3,181 86

16 Rolls Royce 111 127,628 1,150 941 8

17 Glenfiddich 43 108,622 2,526 608 14

18 Charlotte Tilbury 47 104,460 2,223 595 13

19 Northacre 47 80,498 1,713 5,665 121

20 Harrods 50 69,562 1,391 457 9

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Jo Malone LondonWalpole WeChat Case Studies

Since launching in China in 2014, Jo Malone has successfully pitched itself as the go-to perfume brand for everyday wear, outperforming many of the more established players. In a market where consumers favour lighter, fresher scents, Jo Malone’s emphasis of English country fragrance and British heritage in its marketing has performed well. In 2017, Jo Malone was the top-selling fragrance brand on Tmall’s Singles Day.

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5/20 Campaign (China’s made up second Valentine’s Day): followers were encouraged to leave comments starting with “Hello Honey, there’s something I’d like to say to you...” to be in with a chance of winning a bottle of Honeysuckle & Davana scent.

R E A D S

39,000+

Campaign announcing the launch of Jo Malone’s new ‘The Blossoms’ range of fragrances. A departure from the brand’s typical monotone packaging, this campaign gave Jo Malone the chance to get creative with its WeChat posts. Beyond beautiful imagery, the brand employed sterling copywriting to evoke certain scenes in the minds of their readers in true poetic format.

R E A D S

44,000+

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Johnstons of ElginWalpole WeChat Case Studies

Johnstons of Elgin has successfully leveraged the increasing popularity and reputation of Scotland to establish China as a major market for its products. Popular among East Asian tourists visiting the UK, Johnstons has thrown itself full force into WeChat as a way of converting and retargeting tourists once they have returned to China, as well as reaching new audiences. WeChat has been the brand’s primary marketing and sales tool in China since launching its first account in late 2016.

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JoE x Avo campaign in December 2019 saw Chinese influencer Avo come to Scotland and meet with the brand. Followers were then directed to a selection of new products curated in classic Chinese colours.

R E A D S

2,400+

Fully localised WeChat store offering both curated selection of seasonal collections, as well as limited edition products. Payments taken through WeChat Pay and fulfilment carried out by local Chinese partner.

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Walpole WeChat Newcomers

2019 saw ten Walpole members join WeChat for the first time. Getting started on China’s most important but most competitive platform is not easy. The initial successes of the brands opposite show that it’s never too late to launch your WeChat presence.

6 Ettinger (February) 43 2,685 62 60 1

7 Turnbull & Asser (July) 21 1,788 85 78 0

8 DAKS (April) 4 1,615 404 13 3

9 Beefeater Gin (November) 6 849 142 21 4

10 Sybarite (February) 20 842 42 30 2

1 The V&A Museum (June) 29 34,920 1,204 451 16

2 John Bell & Croyden (March) 10 14,005 1,401 405 41

3 Penhaligon’s (August) 20 6,692 335 123 0

4 Church’s (December) 4 4,262 1,066 64 16

5 The Berkeley (September) 16 3,304 207 900 0

ARTICLES READS AV.READS/ARTICLE LIKES AV.LIKES/ARTICLE(Month Joined)

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Despite only launching in December 2019, Church’s has already acquired a solid readership.

Both Turnbull & Asser and Beefeater Gin stand out among Walpole newcomers for their use of WeChat ecommerce.

In Turnbull & Asser’s case, a basic MiniProgram offers a selection of products, whilewith Beefeater, users are directed to the brand’s listing on JD.com’s WeChat store.

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The V&A MuseumWalpole WeChat Case Studies

Launched last summer, The V&A Museum’s WeChat account has proved to be the best-performing newcomer to the platform among Walpole members. A combination of well-designed posts, targeted influencer collaborations and a focus on emphasising the museum’s relevance to its Chinese visitors has proven to be a winning formula.

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In an attempt to engage younger audiences, especially London’s many Chinese design students, the V&A has worked with a number of local influencers. Interviews with aspiring Chinese designers as they tour the museum and select their favourite objects of inspiration regularly secures the museum up to 1,000 reads per article.

A focus on objects, designers and exhibitions most relevant to Chinese visitors has emphasised the museum’s deep China roots. Perhaps unsurprisingly, the V&A’s most popular WeChat post detailed its porcelain Blanc de Chine exhibition, garnering over 4,400 reads.

Well thought-out brand guidelines, localised for China and WeChat provide a unifying theme across the V&A’s articles.

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WedgwoodWalpole WeChat Case Studies

The irony of selling porcelain chinaware to China is one that Wedgwood has successfully overcome to establish itself as a true icon of British luxury. In order to help differentiateWedgwood from domestic producers of fine ceramics, the brand has relied on a WeChatstrategy that emphasises culture and lifestyle.

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For Chinese New Year, Wedgwood invited VIP customers to an offline event collaboration with a celebrity chef.

R E A D S

2,200+

Influencers were also used to drive Singles Day sales through live-streaming across a range of platforms.

R E A D S

1,000+

Wedgwood regularly collaborates with local influencers from other industries (such as ‘lipstick king’ Li Jiaqi seen here) to help position its products within a contemporary luxury Chinese setting.

R E A D S

1,200+

Limited edition, Chin-specific products help to create a sense of exclusivity and appreciation for the market.

R E A D S

1,000+

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WeChat Mini Programs

Some 40% of Walpole members with WeChat accounts have linked their accounts to a Mini Program. The number actively selling through WeChat remains relatively low, but in some cases additional functionality has been added.

Selfridges offers store directions and Chinese New Year-themed interactivity.

Tiffany offers afternoon tea bookings through its Mini Program.

Gieves & Hawkes runs a VIP membership programme.

Burberry offers a curated selection of seasonal products.

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Four Next Steps for

Brands New to WeChat

Registering and verifying an official WeChat account has become far simpler over the last 12 months. Accounts can now be setup without a Chinese business licence or any minimum media spend. For information on how to register, please see our DIY guide: http://www.cbbc.org/cbbc/media/cbbc_media/8.%20Sector%20PDFs/CBBC-wechat-brochure.pdf

Account SetupWeChat’s microsite function allows you to host static, evergreen brand content within the app. Combined with the design possibilities WeChat has to offer, this negates the need for a localised Chinese website in the first instance, by positioning WeChat as a form of digital brochure. Brands can include up to 15 page links housed within three menu tabs.

Build a Microsite

The ability to take payment through WeChat has become a powerful O2O tool for brands seeking to engage with Chinese tourists. At least a dozen payment service providers in the UK can assist with setup of WeChat Pay terminals in-store. Linking these with your official WeChat account allows for retargeting and reselling through ecommerce further down the line.

Offline IntegrationThe UK is home to dozens of mid-size influencers with expertise in a number of sectors. Prices range from a couple of hundred pounds to a few thousand depending on the level of engagement and production time required. Calculating ROI can be difficult, but work closely with your chosen influencer to form longer-term ambassadorial relationships as well as to set KPIs and expectations.

Influencer Collaboration

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Four Next Steps for

Brands Scaling Up on WeChat

Mini Programs are here to stay and every retail brand will at some point need to build and integrate one if they are serious about the Chinese market. Template-based applications will help brands overcome high development costs, while specialist agencies can assist with more advanced functionality and data analysis. VIP schemes and booking engines will help drive O2O engagement.

Build a Mini ProgramWhile WeChat’s dominance is set to continue, the high cost of doing business as well as over-saturation of content have opened up new opportunities across a range of other platforms. Of most relevance to luxury brands are RED and Douyin. The former allows for strong user-generated content and social commerce, while the latter opens the door to hundreds of millions of younger users.

Look Beyond WeChat...

Statistically, the easiest way to lose a WeChat follower is to post an article. WeChat users are notoriously fickle and publishing content for publishing’s sake will get you nowhere. With competition high and cost-per-follower rates even higher, it pays in the long-run to invest in good quality copywriting and design. Understanding the uniqueness of your China offering will be key.

Invest in ContentWeChat’s paid media function is largely unhelpful in reaching new followers – a lack of nuanced targeting makes influencers a far better investment. Recent developments in the way that accounts can target tourists as they land in the UK, however, have created some interesting opportunities. This can be a good way to push out limited time promotions and drive footfall.

Use Targeted Advertising

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Most WeChat data is private – if granted access to your brand data(under NDA), we can assist with a deep-dive on performance.

Brand Consultation We can also assist in compiling the same reports for

competitor brands, whether Walpole members or not.

Competitor BenchmarkingReach out if you would like to see all of your brand-related data

and better understand your performance in 2019.

Access to the Full Dataset

Get in touch with us for...I N F O @ T O N G D I G I T A L . C O M

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h t t p s : / / m a i l c h i . m p / 4 2 f d f 6 f b 3 0 a d / t o n g - w a l p o l e - r e p o r t

I N F O @ T O N G D I G I T A L . C O M

The Walpole WeChat Report 2020A Snapshot of British Luxury on China’s One-Billion-User Super App

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Update:

COVID-19新 型 冠 状 病 毒

$30-40bn in missed sales

3-6 month period of physical and emotional impact

Both like and unlike SARS

Impact1. Big Statement

2. Solidarity

3. Say Nothing

Approaches1. Demonstrate Empathy

2. Be Authentic

3. Plan Ahead

Response

TONG is the UK’s first and leading Chinese social commerce agency. TONG offers turnkey digital market entry solutions,

assisting over 60 brands enter and scale up in China since 2014. TONG’s clients have included many Walpole members, as well as brands as diverse as Chelsea FC, Fortnum & Mason, Boden, BAFTA, Sunspel, Whittard of Chelsea and Manchester Airport.

T O N G D I G I T A L . C O M

Walpole is the official sector body for UK luxury. Founded in 1992 as a not-for-profit organisation, it counts more

than 250 British brands in its membership and is recognised in both Westminster and Brussels. As the

voice of British luxury, Walpole’s purpose is to promote, protect and develop a sector worth £48 billion to the UK

economy and the jewel in the crown of UK business.

T H E W A L P O L E . C O . U K

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