Should a Luxury Brand Invest in Tiktok?

Paid Social, Ecommerce Strategy

Social media has always been a valuable tool to those who hope to find success with digital marketing, offering a way to connect with the right audiences and target specific interests. But as social media platforms change and evolve, our approach to the way in which we market to consumers using it must also adapt. This has become even more clear with the arrival of one of the latest social media platforms, TikTok.

With an emphasis on organic and relatable content produced by creators who seem more ‘real’ to those scrolling the for you page on TikTok, this platform is very different from other apps like Instagram. Whilst organic and sponsored content on the Instagram feed is carefully curated and manicured, this has proven to be unappealing to TikTok users.

Nevertheless, this platform has so much potential when it comes to marketing luxury brands, helping to push promotional content, spark lead gen campaigns, and much more. That’s why we’ve created this guide to show you how TikTok can help your business to thrive.

Why TikTok?

When there are so many other social media platforms out there, why should you bother adding another brand profile to the mix by producing content on TikTok? The proof is in the statistics as TikTok has accrued more than 1 billion monthly active users, has over 2.6 billion downloads of the popular app, and has some of the highest user engagement than any other social media platform. TikTok offers a wider reach than ever before, helping to boost growth and revenue on a much larger scale.

Not only is there the opportunity to create organic content on a brand account, but the platform also offers paid advertising in multiple formats so you can select which one works best for your business.

The Rise of Gen Z

According to TikTok, 60% of their overall user base is made up of Gen Z, the generation of consumers who are quickly becoming one of the main spenders in the luxury retail sector. Even if you don’t consider this age bracket to be a part of your demographic they eventually will be, that’s why it’s so important to make your mark early on or see how you can adjust your service to appeal to this younger market.

According to the report, by Bain & Company, Gen Z are predicated to account for 20% of luxury spending as they become the generation with increasingly more disposable income. The same report claims that 85% of purchases made in the luxury sector were influenced by digital marketing efforts and sponsored content in some way, making the case for TikTok even stronger.

The Trend Cycle

With digital marketing having this effect on purchases to such an extent, it’s important to consider how social media and the trend cycle can play a part in increasing your conversion rate. Consumers are incredibly affected by what is considered popular, which seems to be most prevalent on TikTok with challenges and trends lying at the core of the platform’s format. These can produce massive amounts of revenue as eager users who wish to replicate, they’re favourite content creators and celebrities run to buy the products that can help them do this.

As a luxury brand it is important to be aware of these trends as they can spark opportunity for influencer marketing and viral content, helping to move product like never before.

Using TikTok with Revenue Growth Agency

At RGA, we’ll help you to build a well-rounded strategy, incorporating new platforms like TikTok in a way that can benefit your brand. Encouraging our clients to think big, our knowledge of the latest tools as your disposal is unmatched, with a team who can offer a bespoke service catered to your objectives.

Placing revenue and profitability at the centre of our methodology, we’ll work collaboratively to map out a plan of action that works for you and your business. Contact us today for a consultation and see how you can use TikTok with RGA.

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If you or your brand are looking for support with a particular service or have a question about what you've just read, get in touch and we'll be happy to help!