Why are Luxurious Manufacturers Getting Left Behind on TikTok?
If you’re a brand targeting a younger audience, or you’ve recently felt your brand could use a little brush up to appeal to Gen Z and Millennials, then you’ve probably at least tried your luck building a presence on TikTok, although the short video platform has taken a back seat for some.
There are so many brands that are killing it on TikTok by creating exciting, engaging, and recognizable content that, in turn, will increase their sales. That approach may be key for fast fashion brands and high street beauty retailers to becoming a hit with young consumers, but for big names in luxury fashion, TikTok seems a bit missed.
In their new report, influencer marketing agency Fanbyes, which specializes in engaging Gen Z on their native platforms, explored why luxury brands may be left behind on TikTok.
Are you staying true to your brand – or are you following the crowd?
As reported by Vogue, the number one reason consumers cite for interacting with luxury content on TikTok is for entertainment – but do luxury brands and entertainment really and authentically go hand in hand?
Simply put, as stated in the report, TikTok is mostly made up of young Generation Z users and Millennials, who are less likely to have the disposable income to spend on luxury goods. And so people like Louis Vuitton or Aston Martin may not see TikTok as a “priority platform” compared to traditional channels like out-of-home, print and TV, as the chances of converting content into sales are minimal.
In a recent interview with Vogue Business, Francesca Bellettini, CEO of Saint Laurent, said that the brand would do nothing in the gaming space “simply because Gen Z is on it” and only if it “goes with the aesthetics of the brand” and “ makes sense with the vision ”. When it comes to luxury, the big names seem to invest more in retaining their loyal customers than in experimenting to attract new customers.
But what about the changing purchasing behavior of consumers?
While the TikTok style of content may conflict with the exclusive and luxurious message that luxury brands are conveying, changing consumer behavior can leave luxury brands with no choice but to join in.
As Fanbytes reports, research by Bain & Company has shown that sales of personal luxury goods are projected to be € 283 billion this year as we see a rebound from the pandemic. Much of this has been driven by Generation Z / Millennials consumers, and it is estimated that they will account for 70% of the luxury market by 2025 (WARC, 2021). As of now, 35% of TikTok’s global audience are between 19 and 29 years old, which means it’s a prime place to reach out to them (BOA). And according to Vogue Business, 31% of respondents in a survey she created said they already buy luxury goods through social commerce.
If you want to dig deeper, the aim of Fanbytes’ report is to provide readers with valuable and actionable insights by examining how luxury brands are currently using TikTok. To do this, the team took a close look at some of the top luxury brands in direct comparison.
While the current opinions of some of these key players tend to steer clear of TikTok in order to stay in tune with their exclusive charms, this room should be kept an eye out as 2022 could be the year luxury brands dominate our TikTok feeds.