For luxury brands in China, there are three ‘Valentine’s Days’ that represent important gifting occasions among couples: Western Valentine’s Day (14th February), 520 (Internet Valentine’s Day), and Qixi, which falls on the 7th day of the 7th month in the lunar calendar.

The relevance of Western Valentine’s Day has diminished among the local audience, while 520, a modern event originating from social media, has become more of a shopping festival. In contrast, Qixi, a traditional festival rooted in a folk tale, not only drives a significant surge in revenue but also offers a rich cultural context for brands to craft resonant, localized narratives.

August is typically a quiet month in Western markets. However, this year, luxury brands have been particularly active, not only preparing Qixi campaigns for the Chinese market but also engaging in nearly a month of Olympic-related activations.

This required brands to allocate resources for diverse communication activations within a compressed timeline. Despite these challenges, leading brands have continued to deploy impactful marketing tactics that drive both awareness and sales.

A larger issue, however, looms over the market: Chinese consumers are becoming more cautious about purchasing luxury goods domestically, raising questions about whether local milestones like Qixi can still generate the same level of desirability and excitement. To explore this, DLG (Digital Luxury Group) partnered with Re-Hub once again to examine the social and e-commerce performance of 104 luxury and premium brands during this festival.

Market Overview

Despite lower-than-expected performance in the Chinese luxury market reported by a slew of brands during the first half of the year, this Qixi, we observed that the majority of brands made concerted efforts to engage local consumers with targeted campaigns. Out of the 104 sampled brands, 78 successfully launched dedicated marketing activities around Qixi.

This resulted in impressive outcomes on social media during the festival. Brand-generated content saw a 28.4 per cent increase in engagement compared to Qixi in 2023, while brand-related user-generated content (UGC) on RED (Xiaohongshu) grew by 11.6 per cent year-on-year.

However, Tmall performance told a different story, with a 14.2 per cent decrease in total revenue among the 104 brands compared to 2023. This divergence between social media performance and e-commerce revenue suggests that while Qixi marketing remains effective in connecting with consumers, it does not necessarily translate directly into immediate sales.

Brands are also demonstrating a more nuanced understanding of Chinese culture and modern consumer preferences, moving beyond stereotypical romantic themes. For instance, Loewe collaborated with BAFTA-winning director Nina Gantz and Chinese dubbing maestro Lin Dongfu to create a stop-motion animation reminiscent of nostalgic Chinese cartoons. Prada, on the other hand, returned to the ancient town of Huizhou, featuring actor Li Xian and model Xie Xin in a campaign that juxtaposes classical tradition with modern aesthetics.

The Rise Of New Channels

Digital channels have become central to luxury marketing strategies. In China, the digital ecosystem is constantly evolving, requiring brands to adapt swiftly.

On social media, RED and Douyin have emerged as pivotal platforms where luxury brands compete for consumer attention. By increasing their investment in content on these platforms, brands have effectively amplified the impact of brand-generated content at key milestones.

For example, Chopard experienced a nearly 25-fold increase in engagement on Douyin compared to the previous Qixi, driven largely by content featuring its brand ambassador, Zhu Yilong. Despite this, some brands in our sample have yet to establish an official presence on RED and Douyin, indicating untapped opportunities for brand communication.

On the e-commerce front, Tmall is no longer the sole marketplace for luxury brands in China. Many are now exploring JD.com, another leading e-commerce platform. Brands like Prada, Bottega Veneta, and De Beers have already launched flagship stores on JD.com, while others, such as Louis Vuitton and Dior, which are not on Tmall, have also chosen JD.com as their third-party transactional platform.

Launching new products during key marketing milestones to generate excitement is a crucial strategy for Saint Laurent in China. This Qixi, the brand continued this approach by exclusively dropping new colourways of its Jamie 4.3 Pochon handbag on JD.com to celebrate its recent debut on the platform.

Elevating The Gifting Experience

Qixi, as a traditional festival symbolising romantic love, sees most purchases focused on gifting. Consequently, jewellery, which is ideal for presents, performed exceptionally well during this festival, occupying 14 of the top 20 best-selling products on Tmall. In contrast, handbags, which usually perform strongly during these events, only secured two spots. Cartier emerged as the best-selling brand on Tmall, with Van Cleef & Arpels making its debut in the rankings.

Although Chinese consumers are increasingly taking advantage of price differences when purchasing luxury goods abroad, particularly in categories like handbags, ready-to-wear, and footwear, the urgency of gifting drives local purchases as key occasions approach.

Brands have responded to this demand by enhancing their e-commerce experiences. Personalised services have become essential tools for driving consumer intent during these festivals. With the development of digital platforms, consumers can now create custom voice greeting cards on Tmall, JD.com, and WeChat Mini Programs or even opt for personalised engraving to create unique gifts for loved ones.

Louis Vuitton, for example, has taken a step further by developing a gifting experience on WeChat centred around its perfumes. To address the challenge of consumers feeling overwhelmed by too many choices, the brand offers an e-gift card, allowing recipients to redeem any perfume of their choice. This service, introduced during the 520 festival in 2023, has been maintained ever since.

Despite the significant transition the Chinese market is currently undergoing, leading brands have not halted their investments. They understand that while the destination of Chinese consumers’ purchases may be shifting, they remain the most promising consumer group globally.

For comprehensive insights into brand performance and additional analysis of this year’s Qixi, please download the full report at the link below.