With over 1.2 billion active users, WeChat is the most effective platform for luxury brands to interact with Chinese consumers.
Why do luxury brands or other retail brands choose the China market? Why do they prefer WeChat? Here are 5 statistics that may answer your questions.
1. China is winning half of the luxury world
According to Bain’s prediction in May 2020, when Covid-19 hit, the luxury industry faced a struggle when countries around the world went into lockdown and forced shutdown on all tourism industries. During the first quarter of 2020, an estimated fall of 25% was experienced and was expected to accelerate during the second quarter of 2020. It is also expected that an estimated contraction for the full year may reach between 20% to 35%.
China began to step up their recovery efforts and expects Chinese consumers to make their status as vital roles of the industry, accounting for almost 50% of the market by the year 2025. Online luxury purchases have escalated throughout this year and by 2025, online channels may perhaps represent up to 30% of the market.


2. Generation Y have been consistent buyers of luxury goods
Millennials, also known as Generation Y (or simply Gen Y, born between 1980 and 1995).
According to Bain’s report, they account for 35% of consumption in 2019 and by 2025, they could make up for 45% of the market.
Did you know? How many Gen Y users on WeChat?
As of Q2 of 2020, according to the overall MAU of different social platforms in China, WeChat has the most MAUs between 25 and 40 years old.
3. In the past five years, the average annual growth rate of WeChat advertising in the luxury goods industry exceeded 90%
In Q1 2020, Tencent’s report on “WeChat Ads Solution for Luxury Brands” revealed that the average annual growth rate of WeChat advertising in the luxury industry has exceeded 90% in the past five years.
Did you know? The most popular ad on WeChat is the WeChat Moments Ads.
Moments ads are the native ads displayed on users’ moments’ feed, with an additional “Ad” tag in the upper right corner.
The same report shows that in 2019, the brand’s favorite is the card format with video, which is 43.33% of the total amount of ads.

By using Moments Ads, merchants can promote their brands and increase consumer conversion rates by targeting people based on their interests and other traits.
At the same time, consumers believe in recommendations from influencers. By using Moments Ads to place advertisements into the user’s daily moments, allows users to resonate with the advertisements and is very conducive to monetizing traffic.
4. Mini Programs have become a standard for brands on social media marketing
By Q4 2019, more than 90% of the luxury brands present in China established their WeChat Mini Programs. Here, luxury brands realize in-depth communication with users and operations such as online purchase, loyalty program, brand service, and marketing engagement.

What is Mini Program?
It is a program that is integrated into the WeChat app, giving brands expanded functions to engage users.
A Mini Program offers more interactive features than a brand’s official Facebook page. Here, buyers can browse products, see campaigns, live chat feature with customer service representatives, easy way to purchase products with WeChat Pay, and many more.
5. WeChat Official Account (OA) Verification: First Step to WeChat Advertising
As stated in the 2019 Tencent report, 49% of luxury brands chose to link their official webpages straight to a third-party eCommerce for diversion while 40% chose to stick to the brands’ official accounts.
Hence, before the brand wants to be exposed in the market, it is very important and necessary to have a WeChat OA certified by WeChat.
Why is WeChat OA Verification important?
* It’s the first step of WeChat Advertising: Hotels should have a verified WeChat OA ready before applying for a WeChat Ads account.
* Authentic presence of a brand: After OA authentication, it strengthens the credibility of the WeChat account.
* Enjoy more advanced functions: WeChat Advertising, WeChat Pay, Voucher, and more advanced APIs.
Explore WeChat digital marketing opportunities in Asia
Are you ready to take a leap and win the Chinese-speaking market? WeChat may be the platform you’re looking for.
Digital 38 Group member Asia Travel Club is now an Official Sales Partner of WeChat Ads. With this, we can help you get started with WeChat digital marketing services such as:
- Official Account Setup & Verification
- Content & Page Management
- Mini Program Setup
- WeChat Pay Setup
Get in touch with our team today.
About Asia Travel Club
Asia Travel Club (ATC) is a social media agency focusing on China digital marketing, influencer and social messaging marketing.
ATC is the Official Sales Partner of Tencent (WeChat), Weibo, and Bytedance (TikTok, DouYin & TouTiao). Our China marketing team has verified and managed more than 100+ WeChat and Weibo Official accounts since 2016.
With teams across Asia, ATC can help brands connect with over 3,000+ influencers from China, Korea, Japan, Singapore, Malaysia, Thailand, and Vietnam.
Through our ATC Bookings, Chinese travellers can now Search, Compare, Book and Pay for hotel rooms via WeChat Pay directly with hoteliers.
Asia Travel Club (ATC) is a member of Digital 38 Group.
IH Digital, Digital 38, & ATC are members of the Digital 38 Group
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