Flash back on the 8 week ReStart Live Series

Today,  Conversation Highlights of the 7th LIVE: "How premium brands tackle Post Covid-19 Shopping Festivals?" with Markable.ai, Hugo Boss and Filorga which took place May 27

  "How premium brands tackle Post Covid-19 Shopping Festivals?"  
With: MARKABLE.AI, HUGO BOSS, FILORGA

“If you want to catch up on Q1 which very likely has been difficult, you will have to leverage and best use all the Festivals that you can, but all festivals are not equal”
Jérôme BACHASSON, Managing Director Greater China, HUGO BOSS

“ We were considering Live Broadcast, but we had merely scratched the surface… And now we are planning our live broadcast (agenda) for the next 12 months. Everything just became much more about execution and finding exactly the right formula while doing it. It’s a time to be entrepreneurial” 

Festival which we call KCM (Key Commercial Moments- CNY, Women’s day, May holiday, 520, Dragon boat, Chinese Valentine day (Qixi), MAF, OCT holiday, D11, etc..). They are traditional festivals which have become a commercial celebration that were relevant, and are even more relevant now. 

“If we take a step back, most of these festivals did not exist 10 years ago. There's been an evolution and we've been from the emergence of these festivals to the reinforcement as being important commercial moments to now the total domination of these events, actually making the tempo, the beat of the market ”

 “ Don't ask yourself why so many brands change the pace / rhythm at which they work. Why an English brand has abandoned seasons in favor of monthly drops, or why a very famous Italian brand (ie Gucci) is going "seasonless" / these are complex issues, I don't want to over simplify but one of the reasons they go that way is to better serve these KCM. ”

In every crisis, lies an opportunity. There are a lot of opportunities with this crisis. Here are two of the main ones

  1. Social commerce: “ an area where China was ahead of the curve prior to Covid and keeps racing ahead. The opportunity to ``surround`` the transaction with real interactions with a real human being you know and you’ve probably met is still largely untapped ”
  2. Capitalize on the traffic that is normally shopping Hugo Boss abroad (in Japan, Europe, etc.) . Data companies such as Alibaba or Tencent can help leverage

To get Better engagement, lower cost of traffic, higher basket size, it is key to combine both e-commerce and social commerce
Damon YEAH, General Manager China, LABORATOIRES FILORGA

FILORGA is the 1st French laboratory of aesthetics medicine. Over the last 15 years, beauty industry has braved most storms. But Q1 this year has seen a rough time with -13% YoY result. Filorga, thanks to e-commerce efforts and a good women’s day, only saw a -2% YoY drop in China. “ Once we were getting into February, we anticipated there would be a quick rebound on E-commerce. ”

“ During 520 Festival (May 5) we also managed to over perform 2019 by 302%. Of course, these two would not have happened without the use of some top live broadcasters who brought us many new recruitments ”.

There is a shift in values and media consumption after the Covid. “ We know that the Chinese are getting more health conscious and quality conscious in the long term, and also travel conscious on a shorter period. Concerning media consumption, the Covid effect on short video and stream media consumption will last longer than on TV and News. 

Watch for more explanations: 18”30 → 23”00

Key steps to best prepare the next Shopping Festivals.

  • Competition: There will be a strong internal and external competition. “Everybody will look at China being the first to recover ”. There will be strong offers from all brands, strong investment, high costs with a limited top life broadcasters.
  • E/Social Commerce:  “E-commerce is an obvious shift. But it was a good sign seeing how Brick & Mortar (usually more traditional) moved forward quickly to embrace the digital world ”. “ Social commerce is a big field (..) especially for cosmetics and beauty brands. It is not only just to buy or to recruit new members. It's also very much to keep them engaged, to keep the retention where loyalty is low. ”
  • Data: “ Data is now key in all digital activations, it helps one to know who your consumers are and their behavior, this should be at the core of all activities. ”
  • Structure: The adaptation of companies to the health context has opened the door to a diversification/modification of their activities (e.g. many companies have tried live-streaming) requiring different ressources, thus modifying their structure. Flexibility is crucial.

Watch more on these 4 steps: 35”50 → 45”30 

We at Markable care about the micro emotional shopping impulses” 
Joy TANG, Founder & CEO, MARKABLE.AI

“ Markable.ai is a technology company that whenever you’re watching a tv show, movie or looking at a content, we immediately pop-up relevant products in a screen. We only make money when our partners make more money”. Indeed, offline traffic dropped 90% and ad spendings dropped 45%, so companies don’t have money to spend anymore. We take a commission on sales but we don’t charge for clicks and impression. It’s all performance-based advertising. AI in advertising can be extremely powerful ”

Many people just throw ads that are irrelevant and it’s a very disturbing experience. Markable.ai click-to-shop technology is high, with a 25 time higher conversion. ”

Watch examples of pop-ups: 27”15 → 28”00

“Some brand come to us and say : ‘we have a lot of customers asking where do I get the look from this photo or this celebrity ?’ We give new features th these brands where consumers can go to their app, upload a photo or a video and we immediately find the product carried by this brand ”

Shopping "Festivals" were very effective, but now over played in China and actually made consumers relying on discounts which is bad for brands. “ We at Markable care about the micro emotional shopping impulses, such as when a new episode of your favorite drama is out, when your favorite bloggers made a new fashion posts. They are the emotional "moments" that target fashion consumers with the highest conversion rates ”. Especially with consumers now spending 400% more time online browsing contents. People are not visiting stores. Online streaming and content are becoming new "foot traffic". We want to capture every small "online moments" and bring "online traffic" to brands and retailers, instead of relying on traditional "shopping festival discounts"

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