GUCCI’s KOLS IN CHINA
Most luxury brands deploy a single KOL for marketing, advertising and promotion in China. For the popular Italian brand, Gucci, however, one is not enough and the brand currently utilises 4 KOLs in the country as brand ambassadors, all appointed by the brand since Alessandro Michele became the Creative Director of the luxury label in January 2015.
PHENOMENAL FINANCIAL GROWTH IN CHINA
In 2015, Gucci’s turnover in China was £341 million with an operating loss of £5 million. By 2020, the brand had witnessed almost unprecedented growth in the country, with a revenue of £1.5 billion and a healthy profit of £327 million. How much of Gucci’s success can be attributed to marketing with KOLs?
WHAT ARE KOLS?
KOLs – Key Opinion Leaders – are generally individuals, organisations or groups having an impactful social status and whose recommendations and opinions can be pivotal for a brand’s marketing and advertising strategies. Unlike influencers, who make their money directly in social media, KOLs are often movie stars, pop idols or models who have significant influence over their fans and followers. Marketing using KOLs has proven extremely successful in China as they are relatable and also able to target specific consumer demographics and lifestyle choices. With research showing that 49% of Chinese consumers depend on KOLs recommendations for purchasing decisions, it’s easy to see why they are a necessary port-of-call for foreign brands wanting to establish themselves in China.
WHO ARE GUCCI’S KOLS?
- Chinese singer, songwriter, DJ and actress, Li Yuchun aka Chris Lee, was one of the first KOLs to collaborate with Gucci in November 2015. Since then, she has continued to partner with the brand in campaigns, on the red carpet and wearing its costumes on stage. Yuchun has 13 million Weibo followers.
- Then came Chinese actress Ni Ni, made famous for her role in the 2011 movie The Flowers of War starring opposite Christian Bale. In 2017, she became the Asian ambassador for the Gucci Eyewear line and is also regularly attends Gucci events. Ni Ni said of her collaboration with the brand:
“I have been captivated by Alessandro Michele’s collections; his passion for beauty of the past, and how he imparts his own poetic language into designs. To be part of this new chapter at Gucci is truly inspiring.”
Ni Ni has 4.7 million Weibo followers.
- In May 2020, for China’s 520 Valentine’s Day, Gucci bought acclaimed Chinese singer and actor, Lu Han, into the fold. Han is exceptionally popular with China’s Gen Z consumers and boasts an impressive Weibo following of 63 million on the social media platform. Han’s 520 Gucci campaign, in which he wore selected items from the GT Collection, received 217,000 shares, 270,700 likes and more than 50,000 comments on Weibo within hours. Han has also been a successful KOL and brand ambassador for Cartier and Lancôme.
- In October 2021, Gucci enlisted its latest and 4th KOL, singer and actor, Xiao Zhan, whose single Made to Love has become the highest-selling digital single of all time with 53 million copies. Zhan was featured in a series of images and a video short wearing Gucci Tailoring and other ready-to-wear pieces and accessories. The Chinese superstar said of his alignment with the brand:
“I am honored to be the face of Gucci. I have always admired Gucci’s vibrant design aesthetic and Michele’s romantic fashion language. I hope to collaborate more with the brand in the future, to explore the world of Gucci’s creative inspiration, and to open up a multifaceted aesthetic dialogue.”
Zhan has over 29 million followers on Weibo.
WHAT’S IN IT FOR THE KOLS?
Chris Lee, Ni Ni, Lu Han and Xiao Zhan are all famous in China, so why then did they partner with Gucci? Other than Zhan, the other collaborations were initiated in the early years of the KOL’s careers. More importantly, by partnering with an established luxury brand that is well-received in China, they have all enjoyed, substantial income, enhanced personal and professional growth.
LV and GUCCI ARE TOP IN CHINA
From as early as 2009, Gucci has been amongst the top luxury brands in China. According to research carried out by Gartner, in 2020, Gucci scored 2nd place in luxury in the country, only been beaten by Louis Vuitton. With a digital IQ of 146, Louis Vuitton is said to be at the forefront of digital innovation. In China, the brand made use of KOLs such as rapper Kris Wu to appeal to Gen Zers, who was removed from Chinese social media in August 2021 following allegations of rape. In 2019, Louis Vuitton created a WeChat Mini Program specifically for the drop of its Virgil Abloh-designed sneakers, another hit for the brand on social media in the country.
WHAT MAKES GUCCI A CHINESE STAR
Gucci’s digital IQ of 145 in China can be attributed to its strong Chinese social media presence, being sold on Tmall, and indeed leveraging the power of KOLs. Gucci has also been able to re-position itself in China by incorporating their unique personalities into region-specific collections. The Asia-Pacific region constituted 44% of Gucci’s revenue in 2020, with North America and Europe being only 22% each. With China capturing such an enormous share of the brand’s market, maybe 4 KOLs are only a start?
