15 Things You Didn’t Know About TENCENT
Burberry aims to reach more customers in China with Tencent
British luxury brand Burberry said Thursday that it has teamed up with China’s Tencent to implement a digital marketing and sales strategy to bring increasingly sophisticated social media shoppers to the critical luxury market..
Burberry said it will open a so-called social retail store at the Chinese Technology Center in Shenzhen powered by Tencent technology in the first half of next year. It will connect retail and social media to create digital and physical public spaces focused on customer engagement..
Other details of the new collaboration were not disclosed..
With its popular online payment platform Wechat Pay and influential microblogging service Weibo in one of the world’s largest luxury markets, Tencent offers Burberry a universal format for marketing and selling its products online and in stores. Tencent’s Wechat is the dominant chat app in China.
«Social media is becoming such an important part of the luxury shopper journey, especially in the engagement phase, and retail needs to keep up.», – said Burberry CEO Marco Gobbetti.
Burberry’s first social-media store, in Shenzhen, China
«China has become an obvious place to start as it is one of the leading hubs for innovation and technology, and Chinese consumers are among the most active social media users.».
Shenzhen is Hong Kong’s neighboring city on mainland China, where sales are suffering as months of protests force retailers to close stores.
The move is also prompted by wealthier Chinese buyers buying houses, held back from overseas purchases by the weaker yuan..
Burberry, known for its traditional tartan pattern, posted a double-digit decline in sales in Hong Kong in its latest earnings report released on Thursday, although the popularity of designer Riccardo Tisci’s collections boosted overall sales..
Chinese retail giants such as Alibaba and JD.com have also raised the ante in the battle for relevance in the lucrative luxury goods market, launching luxury websites in mid-2017 that feature brands such as Hugo Boss..