“In China, the brands will have to redouble vigilance as to the choices of their kol or muses. »Yuan Zou, Hylink.

Interview

Posted on by Eric Brones

Redistribution des richesses, promotion d'une nouvelle masculinité, encadrement de l'influence... En quoi les récentes directives prises par le Parti Communiste Chinois pourraient-elles impacter le secteur du Luxe et ses composantes ? Entretien avec Yuan Zou, Head of Europe Luxury & Fashion de l’agence digitale chinoise Hylink.

Luxury Journal

Is the plan for the redistribution of wealth in China a real threat to the luxury industry?Can new middle classes also be struck by a luxury tax?

Yuan Zou

What is above all necessary to remember is that desire, a real engine of buying luxury products, is intact. So I think that this announcement will not drastically impact the sector in the medium term. This will more likely lead consumers to turn to a more discreet, less directly identifiable luxury. Niche or less known brands in China have a real card to play in this context. In addition, it is necessary to keep, the redistribution mentioned will only concern the ultra-rich, which represent only about 100,000 individuals. This will have an impact on the volume of their purchases but they will continue to consume luxury products. As for a sharp increase in luxury products, it seems quite improbable. The authorities have done everything to re-locate the purchase of luxury products in China, the pandemic, in this sense, helped to achieve this objective. They know that an increase in prices linked to a tax would have the immediate effect of relaunching purchases abroad. The announced redistribution of wealth will once again concern billionaires which will be more heavily imposed in favor of the middle classes which will thus be able to consume more easily.

Luxury Journal

The PCC is attacking the exceptional influence of the Kol on youth.What are the transformations to be expected in the Chinese digital landscape and beyond what impact for brands?

Yuan Zou

Influencers are an essential and lasting component of the consumer journey in China. They remain a window on the outside, especially today when it remains difficult to go abroad. The fundamentals of influence mechanisms will therefore last. On the other hand, the personalities whose communities are the most important will, a priori, know a slowdown in their activity because they will have to be more selective as to the choice of their collaborations with the brands. From a general point of view, all influencers, VIPs and muses will have to be vigilant and not get out of their role: to discover and promote products and services. No interference on subjects of social or policies will be tolerated. The brands will therefore have to redouble their vigilance as to the choices of their kol or muses. You have to deal with the rules and keep in mind that a mark will keep its latitude of communication as long as it will remain in its field of expression: its product!

Another notable change, the switching from the Kol to the KOCs (Editor's note. Key Consumers Opinion), which will accelerate.The influence of these consumers is more and more sought after by their peers who see it as a more authentic way of sharing their shopping experience.

Luxury Journal

Third major subject: the resumption of male representation.What concrete impact for Chinese Genz and luxury and beauty brands?

Yuan Zou

It is indisputable that the Genz is more protest than its elders.It is also a generation in search of identity to which one asks to be virile while sending him images of androgynous men in the media and social networks.The government's announcement will change the game for brands but will not question their presence in China.The Gen Z will always be looking for care and hygiene products adapted to its needs and desires.It is clear that men's makeup will no longer be able to find its place, at least for a while.However, care products, well-being will always be acclaimed by consumers to whom society imposes a kind of youth diktat.Business leaders, leaders, actors, are always younger and it is essential to stick to this movement by presenting your best profile.

Luxury Journal

Luxury giants adopt openly progressive communications, will they still be allowed by the CCP?Shouldn't brands think their communication first to satisfy Beijing?

Yuan Zou

The brands will have to navigate with subtlety on this point, no big steering wheel movement is desirable neither in a sense, which would amount to over-interpreting the party line, nor in the other, that of approaching controversial subjects.It is essential that they remain faithful to their values and their DNA, to the risk of disappointing their consumers, but must be careful not to offend the government or the Chinese by addressing burning questions.mark according to aesthetics and local messages.More than ever you have to be respectful, to be aware of the consequences of government announcements and to "feel the wind turn".The very fast and frequent adaptability is a real question of survival in China.

Luxury Journal

Limited gaming, income in the framed high-tech universe, control over the staging of oneself ... Do we not risk attending a massive departure of young Chinese people rich to the West?

Yuan Zou

The Chinese are very resilient, they have an innate ability to adapt and subtly bypass government directives.Regarding gaming, if they are imposed on them a too powerful firewall they will use a VPN, if this VPN is prohibited they will find another, etc.Finally, they will not leave the country for two main reasons.First of all, they have a very strong feeling of national pride and moreover, these wealthy Chinese, know that they will lose their privileged status once they are abroad.They do not necessarily have the codes of Western society and do not like to feel inferior.The Chinese have a real sense of Risk Management and we must not forget that many of them, among the richest, have dual nationality.For the moment, the situation does not require them to leave their country.

Luxury Journal

In recent weeks, haven't they demonstrated in China, the party will always be stronger than the market?

Yuan Zou

Whatever happens, it is certain that the party will always have the last word, the population does with and the Chinese remain vigilant.But they love their country.They learned that you have to be on alert to be able to adapt.They know the limits not to be exceeded and know how to navigate between government directives and their desires.In Chinese we are talking about Fen Cun (分寸 or "the right length to the nearest millimeter". It is the same for the market, brands must know the constraints and respect them while expressing their specificities.

By Eric Brones

Interview - Business