The country’s rising middle class and strong economic growth will drive Vietnam’s luxury market to expand. Luxurious brands are investing to capitalize on coming opportunities this market offers. This article will highlight top marketing strategies to help luxury brands realize their ambition in Vietnam.
Impress customers with beautiful visuals on Instagram
Luxury products are usually promoted using photographs. Photographs can invoke the same feelings of aspiration we experience when driving a luxury vehicle, wearing designer clothing, or experiencing something new.
Instagram is a visual platform that allows luxury brands to showcase their best work.
In December 2022, Viet Nam had 11,421,500 Instagram accounts. This accounted for 11.3% of its entire population. 62.6% of that are women who are the main force for luxury products.
Luxury Vietnamese consumers use Instagram to keep up with the latest styles and trends. They also follow celebrities to see what luxury brands they are wearing.
Create a localized website that blends style, user experience and online shopping
It is still in the “Moderate Proficiency” group despite significant efforts to improve English language proficiency in Vietnam. It means that if you introduce your website or e-commerce company in Vietnam without translating it or localizing, you are likely to alienate a large market. This is not good news for your business. Localizing your website in Vietnamese can help you achieve and surpass your goals. You’ll be able to communicate with Vietnamese native speakers, which will create trust and generate more revenue.
Luxury brands must invest in websites that are not only localized but also stylish, intuitive, and user-friendly.
Furthermore, you can increase sales by including an online-shopping feature on your website, especially since e-commerce has been growing in Vietnam. Gen Z is a growing target audience for luxury brands. They love shopping online, even for expensive items. An official website of a luxury brand would be more authentic and trustworthy than those sold by retailers, especially when Vietnam has encountered numerous fake product scandals.
Use Facebook Ads to reach more Luxury Shoppers
Facebook Ads are one the most efficient forms of online advertising thanks to the high degree of targeting and segmentation.
Over 90% of Vietnamese Internet users use Facebook regularly. Facebook ads are a powerful tool for reaching a large number of users or hosting campaigns to increase brand awareness.
You don’t need to worry about having to spend on mass audience because of Facebook’s detailed targeting. For example, you could target ads to 35-year-old married women from Ho Chi Minh who are fans of Versace, Gucci, Prada. You could even target people based on their college, where they work and what their job title is.
Work With Established Influencers
The key to working with influential people for luxury brands is selecting the right followers. Don’t hesitate to take advantage of the opportunity if an established figure is already a fan. If it is your turn to recruit, however, you will need to look to established figures who are highly regarded by your target clientele.
Consider the followings when deciding on potential influencer partnerships for your luxury brand’s digital marketing strategies:
- Their total following base
- This fandom’s demographics: How old are they? They are located where? What is their purchasing power?
- What kind of aesthetic do influencers prefer? Does it fit with the brand’s image and spirit?
The top KOLs in high fashion in Vietnam include Chau Bui with 1.7M Instagram followers, Le Ha Truc with 183K Instagram followers, Tran Quang Dai with 711K Instagram followers, Tran Quang Dai has 711K Instagram followers, and Quynh Ann Shyn, who has 2.6M followers.
Make successful Tiktok‘s viral campaigns to approach Gen Z
TikTok’s viral reach and explosive impact are being used by a growing number of luxury brands. Here are some TikTok marketing strategies that brands can use for better digital performance.
Directly create content
Luxury brands can connect directly with their customers through their TikTok brand accounts. Gucci, Louis Vuitton and Burberry are just a few of the luxury brands that use this method.
Luxury brands can reach a larger audience with the help of TikTok influencers. Influencers are a common way for brands to expand their organic reach.
TikTok’s paid promotion
A paid TikTok campaign is another strategy for luxury brands. Branded Augmented Reality allows companies to create customized filters, lenses or stickers for their users. These filters can be opened by TikTok users who create a video with a hashtag and mention of the brand.
TikTok allows brands to sponsor hashtags. Users are encouraged to use them to create content. In campaigns, brands can offer prizes or promotional products to top content creators.
Recently, Hot girl Quynh Thi excited the Tiktok community with her video of changing her appearance wearing luxury brands such as Gucci, LV, Versace in the lyrics of the song “Make You Look” by Meghan Trainor . After this video, she has received more than 60 million views on Tiktok and is being responded by many young people to show off her talent in dressing and make-up.
Appear in prestigious fashion magazines
Although Vietnam is a digital country, with over 70% of its population using social media, PR on prestigious fashion magazines is still a valuable marketing method for luxury brands. The splendid appearance on the leading prestigious fashion magazines reinforces the luxury position of these brands and what differentiate them from affordable clothing brands.
When looking at the images of the collection on the pages of Elle or Vogue, customers will feel the difference and have a deep resonance, which is what luxury brands want. Digital marketing can only bring speed and distribution, but it cannot communicate the message or charisma that fashion houses want.
Despite the rapid development of digital marketing, the main marketing trend for high fashion will still be competing for a prominent position on beauty magazines.
Invest in physical luxury stores
Retail has been changed forever by the global pandemic. However, despite the rise in e-commerce following the COVID-19 epidemic, there are clear signs of traditional luxury returning.
The luxury experience is enhanced when you can communicate with sales representatives and feel/touch the products. Customers will not receive the same sensory stimulation online as they can touch, smell, and taste the product. Customers can better visualize the products in the showroom and storefront.
However, the biggest bottleneck that luxury goods businesses face in the process of entering the Vietnamese market is the condition of the premises. Even with the stores of Louis Vuitton and Dior opened nearly 2 years ago, LVMH Group had to combine many new townhouses to create a large space suitable for the brand. At the same time, the premises were also renovated and upgraded to meet international standards.
Brands in this segment tend to focus on high-end customers, often in expensive central areas, such as Hong Kong’s IFC Mall or Shanghai’s IAPM Mall. Currently, Ho Chi Minh City only has Union Square that meets the criteria. In Hanoi, the central area of Hoan Kiem district is lacking in space suitable for high-end brands.
This is the reason while high-end brands all have 5-6 stores in Singapore and Bangkok, but only 1-2 stores have opened in major cities of Vietnam.