Introduction
As Chinese New Year approaches, luxury fashion marketers in the UK are increasingly capitalizing on this significant event by launching specific Lunar New Year campaigns. According to a study conducted by Rakuten Marketing among 600 retail marketers in the UK, France, and Germany, there has been a 35 percent increase in UK campaigns targeted at international shoppers in the last two years, with the luxury fashion sector experiencing the highest growth at 42 percent1.
The Impact of Lunar New Year Campaigns in the Luxury Fashion Sector
Luxury fashion brands are recognizing the importance of targeting international shoppers, especially during major cultural events like Chinese New Year. Burberry, a prominent British luxury brand, recently launched a Chinese New Year 2020 campaign to celebrate the Year of the Rat. The campaign not only included traditional marketing efforts but also introduced an online mobile game called Ratberry, adding an interactive element to engage their audience1. Other luxury brands are following suit, leveraging Lunar New Year to connect with Chinese consumers and drive sales.
The Growing Trend of Luxury Fashion Marketers Focusing on International Shoppers
The Rakuten Marketing study revealed a significant increase in campaigns targeted at international shoppers, particularly in the luxury fashion sector. Over the past two years, there has been a 35 percent surge in UK campaigns aimed at this market segment, with luxury fashion leading the way with a growth rate of 42 percent1. This trend showcases the increasing importance of attracting and engaging international consumers in the luxury fashion industry.
The Importance of Smarter Marketing Investment
Rakuten Marketing’s study highlights the significance of smarter marketing investment, emphasizing the need for personalized experiences in advertising campaigns. The study found that two-thirds of campaigns lack personalized experiences, indicating that marketers are facing challenges in delivering tailored content to their target audience. This struggle is further amplified when targeting multinational markets1.
Consumer Fatigue with Online Ads: A Major Concern
According to the Rakuten Marketing study, 32 percent of retail marketers believe that “consumer fatigue with online ads” is the biggest threat they will face in 2020. As consumers are exposed to an increasing number of online advertisements, they are becoming more resistant and fatigued. To combat this issue, nine out of ten retail marketers are opting to create more relevant campaigns centered around major sales moments in the calendar. These moments include Christmas, Cyber Weekend, Amazon Prime Day, and Chinese New Year1.
Overcoming the Multi-National Challenge
Reaching a diverse audience across multiple channels and markets poses a significant challenge for marketers. Marketers must rationalize their approach and make data-led decisions about who to target, when, and through which channels. Going international with marketing campaigns requires fundamental alterations, including language, pricing, and messaging. While price competition and discounts play a role in driving cross-border commerce, they should not be seen as a substitute for providing exceptional customer experiences1.
Replicating Success in New Markets Through Personalized Experiences
To ensure brands can replicate their success in new markets, it is crucial to provide experiences that feel personal to consumers. This entails tailoring marketing efforts to suit local preferences and cultural nuances. By adapting language, pricing strategies, and messaging, luxury fashion marketers can effectively engage international shoppers, fostering brand loyalty and driving sales1.
Conclusion
The rise of Lunar New Year campaigns in the luxury fashion industry signifies the growing importance of targeting international shoppers, specifically during significant cultural events like Chinese New Year. Luxury brands are recognizing the need to create personalized experiences and tailor their marketing efforts to engage consumers from different markets. By leveraging the power of cultural celebrations, luxury fashion marketers can strengthen their brand presence and drive sales in the global marketplace1.