If you are a marketer or part of a luxury brand that didn’t initially take TikTok seriously, we understand. Many luxury brands dismissed TikTok as a content app for dancing and jokes. Over the past two years, however, the app has evolved incredibly quickly, solidifying itself as a reputable content medium. The proof is in the demographics:
- 25% of TikTok’s active user accounts in the U.S. are people aged 10-19
- 22.4% of TikTok’s active user accounts in the U.S. are 20-29
- 21.7% of TikTok’s active user accounts in the U.S. are 30-39
- 20.3% of TikTok’s active user accounts in the U.S. are 40-49
(Source: https://backlinko.com/tiktok-users)
This is huge news considering the app was initially touted as a channel owned by Gen Z and ignored as a potential marketing tool by many brands. While Gen Z does still make up a large percentage of the audience, their purchase power shouldn’t be ignored. A recent report finds that Gen Z is set to become one of the primary spenders in the luxury industry by 2025, accounting for 20% of net luxury spending. Gen Z and millennials will account for 180% growth in luxury markets between 2019 and 2025.
When you combine that with the fact that 85% of luxury purchases in the last two years have been influenced by digital ads or content, the potential of TikTok becomes undeniable for the luxury segment. With a strong content presence, luxury brands can leverage their digital footprint to boost sales long term. Luxury consumer brands with digital foresight like Prada, Louis Vuitton, and Gucci have invested in TikTok since early on and have had tremendous success in sharing aspirational campaign content amongst authentic platform content.
To understand what content will perform best on TikTok, you need to spend time on the platform. Research will have to be factored in before diving into communicating or creating. We recommend that brands secure their brand handle as soon as possible and spend time interacting with content that aligns with the brand. Follow the same brands that you would follow on your other brand social channels. Search creators using hashtags that you may utilize on other social platforms. Discover what your brand’s consumers are watching on the platform and where you might fit in.
On the flip side of such research is an opportunity to explore content creation strategies or establish ambassadors to create in the name of your brand. Where your content budget may have previously been invested in editorial photography and large-scale video, it should now be dedicated almost entirely to social-first content creation. Considering the changes in the brand landscape, luxury and legacy brands need to maximize their digital and social reach to ensure longevity with a very different consumer come 2025.
Trying to understand where to start? We can help! Contact us today at DigitalTeam@hawkpr.com to discuss social content and influencer solutions for your brand and discover why some of the world’s top luxury brands choose Hawkins International for content strategy.