A comparison of different channels for promotion of luxury brands to Chinese millennials

Abstract

The objective of this paper is to explore Chinese millennials' preferences and motivations of being attracted by different online channels, to purchase products considered to be luxury brands. Chinese millennials are a growing demographic with strong purchasing power and awareness of luxury brands, and a very high internet and smart phone penetration and usage rates. Luxury brands have focused less on online promotion and to sell their products with the exception of cosmetics. Online marketing channels could offer a huge opportunity for luxury brands to appeal to Chinese millennials. Paid, owned and earned media are major channels of online promotion, which Chinese millennials have different attitude to. Data was quantitative, gathered through online surveys, which were completed by 216 Chinese millennials. A pilot study was conducted before the survey and the data was gathered through 15 Chinese millennials. The results are used to identify different products to match different promotional channels. The findings of this study contain several theoretical and practical contributions to the development of luxury brands on online promotion. Advertisers, marketers, social media-related practitioners may benefit from the findings on the preferences, motivations as well as which product match which channel.