An Ultimate Playbook of Web 3.0 Luxury Marketing in China
Are you ready to discover the future of luxury? China's Luxury Web 3.0 marketing trend is transforming the industry with its cutting-edge technology that creates personalised shopping experiences like never before. From blockchain to XR, luxury brands are fostering trust and engagement with their customers, revolutionising brand-customer connections. And the future looks even brighter, with four major growth forces predicted to drive this trend by 2030, including a return of Chinese shoppers as the top luxury buyers and digital commerce becoming the primary channel for luxury sales. To learn more about this exciting trend and its potential impact on the luxury industry, download ChatLabs' x DAO's full report today!
Here's a little sneak peek of the report:
Web 3.0 Marketing Potential in China
The outlook for China's eCommerce market is exceedingly bright, with ecommerceDB projecting a staggering revenue of US$1,487,233.0 million in 2023, surpassing the United States and making it the largest eCommerce market in the world.
The market is predicted to maintain an impressive CAGR (Compound Annual Growth Rate) of 12.4% from 2023 to 2027, resulting in an estimated total market size of US$2,374,985.2 million by 2027. Moreover, the Chinese eCommerce market's growth has been nothing short of remarkable, with a 13.9% surge in 2021, it has outperformed the global growth rate of 17%. This upward trend is expected to continue over the coming years with global eCommerce sales continuing to grow significantly.
The market is dominated by five major segments, with Electronics & Media being the most prominent at 25.6%. Fashion follows in second place at 22.6%, and Toys, Hobby & DIY in third position at 21.0%. Food & Personal Care follows closely with 20.9% of revenue, and Furniture & Appliances rounds off the list with 9.9%.
What are China's Metaverse?
China's Metaverse (Chinaverse) represents a revolutionary leap into a new era of online virtual environments. By seamlessly blending the physical and virtual realms, it creates a dynamic and engaging 'phygital space' where users can experience a wide range of immersive and interactive experiences. Powered by cutting-edge technologies such as artificial intelligence, virtual reality, blockchain, and gamification, this revolutionary ecosystem offers limitless possibilities for users to explore and engage with a world that transcends the boundaries of traditional online platforms. As such, China's Metaverse represents a powerful and transformative force that is set to shape the future of online experiences in exciting ways.
What are China's Virtual Avatars?
China's Virtual Avatars represent a fascinating intersection of advanced technology and human-like characteristics. According to the China Augmented Reality Core Technology Industry Alliance (CARA), these avatars are classified into five levels based on two key factors: the level of automation and the degree of similarity to human beings. At level 1, digital interfaces are utilised, but humans are still required to execute various functions. At the other end of the spectrum, level 5 avatars incorporate advanced artificial intelligence that can independently interact, make decisions, and carry out complex tasks. This remarkable innovation offers vast potential for applications in fields ranging from entertainment to education and beyond.
What are China's Digital Collectibles?
China’s digital collectibles is a new form of asset created based on the concept of non-fungible tokens (NFTs). However, unlike NFTs, digital collectibles from China are non-transferable and do not need NFT authentication. Additionally, they are indivisible, with unit ownership fixed and immutable. As a result, they offer a unique way to store value and serve as a form of currency. This innovative approach to digital assets has the potential to revolutionise the way we think about ownership and value in the digital space, opening up new avenues for creativity and entrepreneurship.
What are China's Digital Collectibles?
Chengdu is leading the charge in virtual avatar adoption, surpassing top-tier cities like Guangzhou and Shenzhen. Meanwhile, Xiamen and Nanchang have emerged as dark horses in the virtual avatar space.
In the digital collectibles arena, Hangzhou has surpassed Shanghai in target group index, with Beijing taking the top spot. Nanchang and Xiamen also make the top ten, demonstrating the growing popularity of digital collectibles across China.
Main Players in Chinaverse
1. Baidu's Metaverse Application: XiRang, and the Revolutionary MetaStack Technology
In December 2021, Baidu caused a stir in the virtual world by launching their metaverse application, named 'Land of Hope' (in Chinese: 希壤 xīrǎng), and entered the race to create an immersive virtual environment. However, Baidu's innovations in China’s Web 3.0 space did not stop there. In January 2023, they introduced MetaStack, a revolutionary technology that is not only compatible with popular platforms such as VR, mobile phones, and PC, but can reduce the amount of time taken to construct an independent metaverse project from around 12 months to a mere 40 days.
What makes MetaStack even more impressive is its plug-in social commerce capabilities, enabling functions like livestreaming, conventions, and exhibitions, and digital collectibles. With MetaStack, businesses can now offer an immersive and interactive experience for their customers in a virtual space.
2.Tencent Cloud: Metaverse-in-a-box
Tencent Cloud's Metaverse-in-a-box is revolutionising the creation of metaverse applications by integrating its infrastructure with entertainment, gaming, and media. With strategic partnerships including Avalanche, Ankr, Sui, Scroll, and MultiverseX, Tencent is expanding its capabilities to create engaging and agile metaverse experiences.
Tencent Cloud's metaverse-in-a-box allows brands to create metaverse applications that are more engaging and agile by integrating its infrastructure with entertainment, gaming, and media. To expand its capabilities, Tencent has made several strategic partnerships, including:
Avalanche, a smart contract platform
Ankr, a company that builds Web 3 infrastructure for layer-1 blockchain Sui
Scroll, a scaling solution for Ethereum
MultiverseX, which is partnering with Tencent Cloud to expand the metaverse offerings
Luxury Brands x China Web 3.0 Marketing and Sales Case Studies
China's luxury brands are embracing the power of Web 3.0 marketing, with a strong preference for metaverse and digital collectibles, according to a recent survey by Mohodata. Of the brands surveyed, 70% opted for metaverse marketing, while 56% chose digital collectibles, and 11% preferred virtual avatars, with many utilizing multiple forms of metaverse marketing.
To navigate government regulations and ensure compliance, luxury brands in China are advised to collaborate with established Chinese metaverse platforms. Integrating virtual worlds and reality into products, services, and events is crucial for luxury brands to create immersive experiences for customers, while also avoiding any potential issues related to being "too virtual." As Web 3.0 continues to shape the future of luxury marketing in China, brands must stay ahead of the curve and leverage emerging technologies to create unforgettable experiences for customers.