Luxury brands soar into the Year of the Dragon with winning strategies

Chinese New Year, China’s most celebrated festival, has become an annual battleground for global luxury brands. As the country becomes increasingly critical for the luxury goods industry, brands face the challenge of standing out amid fierce competition and establishing profound connections with local consumers. Below, we examine the strategies leading brands are employing to get ahead this festival season, from product development to digital marketing. Hyperlocalization through parades, films, and partnerships In the wake of global upheavals, there has been a notable shift in consumer priorities from basic needs to spiritual and emotional fulfillment. This is especially true in China, where consumers exhibit increased cultural confidence, as evidenced by the guochao trend. Given this shift, brands must go beyond incorporating red colors and zodiac signs in their Chinese New Year campaigns to truly resonate with local consumers. Kering-owned jewelry brand Qeelin, for instance, organized the “Thousand-Meter Golden Dragon Parade” along the Yu Long River in Yangshuo, Guangxi province, to celebrate the Year of the Dragon. The event, featuring the brand’s global ambassador Liu Shishi in a lantern-lit parade, sparked significant discussion and engagement online, showcasing a successful fusion of traditional folklore and luxury. Other players have taken a more cinematic approach. Rimowa tugs at heartstrings with a film about a family’s journey west, titled The Dragon Roams Far and Wide, But It Never Leaves Our Minds, set in China’s Sichuan region. Cartier, in the film Cartier Epic, artfully blends its iconic panther with the auspicious dragon. Meanwhile, Valentino explores three Chinese cities under the theme of “red,” intertwining the brand’s iconic Rosso red hue with regional craftsmanship. At the same time, Bulgari recognizes the importance of cultural authenticity through its collaboration with Chinese artist Pan Hu. Pan draws inspiration from the snake spirit totem to create an auspicious dragon painting, with his process documented in a short film. This move not only reflects Bulgari’s desire to support local creatives but also to promote them on a global stage. Leveraging China-exclusive offerings In addition to strengthening cultural relevance, brands are capitalizing on the allure of “China-exclusive” and “Chinese New Year exclusive” product series. Brands like Fendi, Ferragamo, Montblanc, and Louis Vuitton have launched special collections across various categories inspired by Chinese cultural elements. Fendi, in collaboration with Hiroshi Fujiwara, has introduced a special Pokémon series for the Year of the Dragon. The collection, which features mini-dragons Hakuryu and Kairyu, uses leather inlay, bead embroidery, and printing techniques to target a youthful consumer base. Meanwhile, Italian brand Ferragamo seamlessly integrates traditional Chinese elements and classic motifs in its Chinese New Year series. Dragon-shaped prints in red adorn men’s and women’s clothing and accessories, complemented by blooming magnolias and hibiscus, adding an auspicious meaning to the products. In contrast, Louis Vuitton looks beyond clothing and accessories to focus on the resilient hard luxury category. Its Chinese New Year’s gift lineup includes the Tambour Horizon Light Up third-generation smartwatch with a dragon-themed dial. Montblanc similarly hones in on timepieces with the release of its 1858 Geosphere Zero Oxygen watch, accompanied by a Burgundy red leather strap and a special edition watch box for the Chinese New Year. Harry Winston has also launched a Chinese New Year exclusive watch, featuring a rose gold case, white mother-of-pearl auspicious clouds, and red dragon details. On the other end of the hard luxury spectrum, Bulgari focuses on high jewelry. The brand’s Serpenti Dragoni collection for Chinese New Year includes a necklace, bracelet, and ring. The snake totem, known as “little dragon” in the Chinese context, is revered as a talisman for vitality, wisdom, and protection, as well as a symbol of transformation and new life. The incorporation of golden dragon scales adds a fresh, cultural twist to this iconic masterpiece. Rather than create gimmicky products just for the festival, Bulgari crafts meaningful pieces that can stand the test of time. This release not only showcases its deep understanding of Chinese culture but also its high regard for the country's discerning luxury consumers. According to the “2023 China Private Wealth Report,” jointly released by Bain & Company and China Merchants Bank, the population of high-net-worth individuals (HNWIs) in China is not only growing but also becoming younger. These young, affluent consumers pay particularly close attention to the investment value of products and the shopping experience, especially when it comes to luxury. Chinese New Year limited edition products from luxury brands thus satisfy their pursuit of value and exclusivity. Red envelopes, celebrities drive engagement To amplify their reach, brands are embracing digital activations and capitalizing on the popularity of online red envelopes. Both Bulgari and Van Cleef & Arpels have launched digital red packets, with the former’s cover featuring the dynamic dragon totem designed by Pan, setting the stage for a vibrant New Year atmosphere. Elsewhere, Balenciaga and Tiffany & Co. are heightening their visibility through creative advertising campaigns. Balenciaga’s series of polaroids called Paris is Home — a phonetic play on Balenciaga’s name in Chinese — and Tiffany & Co.’s visual experience featuring the Jean Schlumberger by Tiffany Bird on a Rock Brooch have captivated audiences with their seamless blend of tradition and modernity. Dior is leveraging star power, with brand ambassadors Zhou Ye and Chen Feiyu showcasing limited edition products. Dior’s Le Coeur des Papillons series and Japanese artist Otani’s capsule menswear collection resonate with younger audiences, reflecting the Maison’s strategic alignment with the evolving preferences of HNWIs in the market. As we reflect on 2023, a year of slow recovery for the luxury goods industry, it becomes evident that brands targeting the Chinese market must create sincere holiday campaigns to secure consumer loyalty. In today’s competitive landscape, a multifaceted approach is essential, combining exclusive products, emotional narratives, and innovative communication strategies to etch a lasting imprint on the hearts and minds of consumers.

Luxury brands soar into the Year of the Dragon with winning strategies

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Published February 05, 2024

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Luxury brands soar into the Year of the Dragon with winning strategies