LEAP Luxe: Tik Tok... luxury’s friend or foe?

From consumer insights across the world to the latest tactics and trends, you're listening to leap into luxury, the go-to marketing podcast for luxury brands. I'm Natalie and today we're talking to Sophie Bubrick, our very own leap gen Zia. Sophie is our Senior Account Executive, working alongside myself and MJ in Leap's luxury division, looking after brands like Duel, Nars, Fenty Beauty and Verve Keekeau. Sophie, welcome to the podcast. Thanks so much for having me. It's great to have you. Sophie's normally behind the scenes, but today she's front and center, usually behind the scenes making Natalie and I feel very old. So today we're going to be speaking about TikTok and more specifically how luxury brands are currently harnessing the platform, how it can be done well, and why it should differ from other social media strategies. So I guess first we should take a look at the platform in general. So it was founded in 2016 and TikTok for those who don't know is a video sharing platform that allows users to share predominantly short-form videos though that has recently changed to allow longer form too. And according to Offcom in 2022, 69% of 15 to 17 year olds and 65% of 18 to 24 year olds watch short-form videos daily. That's huge. Huge. Huge. So I guess all those to non-users it's considered as a platform to share dances and dance videos, but to the initiated user it's actually so much more than that. In fact, it's so trusted that it's become according to a report by Google in 2022, the primary search engine for Gen Z. So they use TikTok and Instagram 40% of Gen Zers as their primary search engine. That's wild. It's clearly a report by Google saying that. I know. I mean, that is a start. I knew that this generation we're using TikTok as a search engine, but 40% is a start that sounds so unbelievable to me because as a millennial, Google has become such a huge part of our lives. It's become part of our everyday vocabulary as a verb, you know, to Google something. And yet this new generation of flipping it on the head and perhaps because they trust their own generation a lot more or simply for ease of viewing an answer in a format that they're comfortable with, but either way, if brands aren't showing up effectively or even at all in these searches on the platform, they're going to be missing out. And it is a platform for brand and product discovery. In fact, 68% of luxury consumers agree that TikTok content has inspired them to buy luxury brands or products. 68%. And it's not only that, but it's also a great place to get your entertainment to build a community or become part of a community. So it makes sense that it would become an information hub for this generation as well. It does. And I think brands are starting to kind of get a sense of how much potential there is that as of Q4 2022, TikTok raked in $11.65 billion in ad revenue. So, you know, brands are clearly realising the power of the platform and they're viewing it as a channel that just can't be ignored anymore. Absolutely. It's a platform with huge opportunity for brands. So, what's 1.2 billion active user population is 70% Gen Z. So Gen Z currently has $143 billion in total spending power, which is, you know, ridiculous because when I was. Do you know what I was saying? So if he was so rich, wow! Congratulations! So I thought, "Yo, I did not have that." And by 2025, Lennials and Gen Z will contribute 130% of the growth in the personal luxury goods market. You want nice things, I don't know. Was not being predicted yet, though, as well, is the spending influence that they have across their family purchases, too, which would only add to the value of marketing to this kind of TikTok native audience. But how do they do it effectively is probably the biggest question here because you've got a dodge that label of being cringy. I don't even know if you're generation. So that's cringy, really. So if you're saying everything I do is cringy. And how are you going to harness this pocket of potential purchases on this preferred platform of this? Well, to start, for any brands who are considering starting a TikTok account or for those that already have a strong presence on the platform, they need to unpackage TikTok's unique role in the social media landscape. Socials can't be treated as an umbrella concept when it comes to content. And I believe the culture of TikTok is comprised of three things. Community, originality, and a human first mentality. Oh, okay. I mean, I suppose there's a question there specifically about the community platform pillar, four premium brands, which are predominantly viewed as luxurious as exclusive and somewhat unattainable. So how do you then build a community which welcomes everybody on a community-led platform if you're trying to be also exclusive? Yeah, that's a great question, NJ. I'd argue that you can't fully understand the community of TikTok unless you are a native user of the app as well. You need to get into it with a creator mentality versus a brand mentality because only then do you really start to pay attention to what makes you laugh, what makes you feel inspired, what makes you feel something. This is not like an outsider looking in situation. And fortunately, each and every one of us can harness the power of TikTok because it's designed for the authentic real moments of being human. And if brands are willing to leverage these opportunities, they can be successful. OK, but surely, you know, advertising to that extent takes a lot of resource, takes a lot of manpower on the brand's ends. I mean, we all know the likes of Jorolingo and Ryanair who are kind of early adopters of the platform and have been smashing the organic sort of viral TikTok space. I am an avid follower of Ryanair on TikTok. Yeah, it's funny. It's funny and it's out there and it's rogue and it's weird for that brand and it's unexpected. But they've done this by harnessing trends like humour and trending sounds, for example, which I don't know. I feel like a hard thing to make fit into a luxury look and feel. Yeah, I think being a successful brand on TikTok kind of means throwing the marketing playbook as it was once known out the window. You've got to really embrace that opportunity. I mean, TikTok made me buy it as a phrase for a reason. It doesn't mean you have to use weird filters or suddenly adopt a funny or silly tone of voice, but like even that slight pivot away from a meticulously curated brand book, the likes of which have been crafted for unhoned for decades can be something completely new and terrifying for luxury brands. I think Burberry, a someone who've done this really well, they've really got on board and understood what TikTok's about. I don't know if any of you saw the cliff creativity collaboration, for example. It's totally outside what you would expect from them, but it doesn't feel inauthentic. I do want a miniature but re-hot water bottle. Thank you. It's my cute stuff. And they got great reach with that. I got over 80 million views. So you can do it. It's just you've got to think outside the box a bit. Yeah. Yeah, definitely. That completely makes sense. TikTok content is raw and filtered and oftentimes lighthearted. So brands might be looking at this and thinking this wouldn't fit into our strategy. So we're going to continue to pump out the same content we do on Instagram or a TV campaign, for example. They're afraid that it will sacrifice their exclusivity and brand DNA. They've spent decades or even centuries, like Natalie mentioned, to the platform. But what they need to understand is no one's asking them to throw out their heritage or their values. They just need to be delivered in an organic, relevant way that blends with TikTok's DNA. Otherwise, it's going to feel out of place. Okay. I wonder if this is something a conversation that happens internally at brands where marketing managers, they know the power that TikTok has, but maybe it's sort of it's higher up. So it's kind of changing a whole mentality internally that builds that fear, that fear that's mixed with the phomo or the pressure of having to show up on that platform. So I suppose then showing up, you know, meeting halfway, showing up on the platform, but not not being present on the platform can lead to quite dull and unengaging content that has been sort of repurposed from things they post on Instagram and YouTube, like you say, not realising the uniqueness of the TikTok native user. Maybe they do realise that, but maybe they just don't have a long enough kind of lead of lack of a better term to really flex on there. And that TikTok native user, as you say, want you to be a lot more relatable and interactive. And as a consequence, they're accounts or the accounts of brands that don't do that end up coming across as impersonal and a little out of touch, which then probably actually from a data perspective does not then convince the people who are on the fence anyway that you should lean into that more. Yeah, I definitely agree with that. What these brands, in my opinion, are failing to understand is that the democratic mentality of TikTok actually allows your audience to be involved in your brand in a way that they couldn't before. And to go beyond the transactional relationship that the industry has been dominated by in the past. And what I mean by this is consumers are increasingly sensitized to being advertised to. I mean, I think we've all experienced this where you see an unwanted ad crawl into your feed. And if the content feels too commercialised, especially on a platform like TikTok, I'd argue these brands have a lower chance of retaining engagement. When I go on TikTok, I don't want to go on the platform to see brand ambassadors. I see an every other initiative of a campaign to show up on my feed and talk about the color blue. And it's existential meeting wrapped up in a picture-perfect video with a bow on top. and the models are a brush and all this stuff. I don't want that. I want to come to the platform for a relatability, inspiration, and to learn something in an entertaining and valuable way. - Okay, so how can luxury brands stay premium, I suppose, with that in mind, when following the platform norm of sharing culture-led trend-focused, reactive content, the difference being that the luxury brand content is typically rooted in slow culture. So it's heavy on craft and I'm representative of the brand DNA exactly like you've just described, really. Whereas fast culture content, which it sounds like is what you're saying works best or is what you want to be seeing on this platform, is more social trend-led tailored to be platform-specific and reactively taps into cultural conversations. I mean, how do you retain that premium feel when you're adapting your content strategy towards this? - Yeah, I feel like a luxury brand that's done a really great job of adapting to the platform and engaging with audiences is Gucci. Gucci joined in on the, just like a Gucci model challenge where users posted in clothes that they had around the home. It didn't even have to be luxury. It was a fun, creative opportunity for the brand to be a part of. So alongside the users, the brand was engaging in this challenge and I think this really drives home the value of TikTok. The key is for brands to be humble in their messaging and collaborating with the community, allowing them to be that co-story teller of the brand that they haven't been able to be in the past. - Yeah, I think that making the user part of the journey or part of the experience is really key on TikTok, to be honest. I'm Cartier of also been a great example of that. I don't know if you've seen the behind-the-scenes footage of the Met Gala that they did with Emma Chamberlain. I just think it's a great use to that platform. It still feels luxury, but it's giving a sneak peek behind the curtain of an event that people obsess over. Most of us will never get the opportunity to attend the Met Gala. Although Anna went to her, if you're listening, I'm very available the first Monday of May. - I do. - Plus two. - Yeah. But it brings, it brought users kind of a tiny glimpse of that experience, which I just thought was genius. And it makes something that was so unattainable, a little relatable. Louis Vuitton also with their behind-the-scenes footage of the fashion shows has been a great success. And they've got over 11 million followers on TikTok. So I'd probably argue that they're the best fashion brand and that they've really harnessed the app and understood what users want. - Yeah, that's a great point, Natalie. Behind-the-scenes content is a super powerful example of how luxury brands can be leveraging the originality of the app with in-feed videos. Behind-the-scenes allows users an inside look into how these very reputable companies operate and makes them feel a lot less faceless that humanizes the brand as a result. And in turn, this builds trust and transparency with their audiences, which is becoming very paramount in what consumers are demanding today. They want more and more from their brands. So it's important that they meet those needs. Another strategy that we are all very familiar with are influencer collaboration. So I think they're important to touch upon as well. This is a powerful way for brands to tap into all stages of the consumer journey. So for example, macro influencers, who we can consider to be individuals with over a million followers, are a great tool for brand awareness. Whereas micro influencers, which usually hold between 100 to 300,000 followers, are extremely effective for higher engagement rates. So it kind of just goes to show how you can target different points of the consumer journey funnel in order to yield a certain result. - I do love an influencer collab, especially on an expected one. I'm looking at you, Burberry and Sylvainian, Roma. And that's what's really cool about this is the success of content on TikTok is based on the engagement. Rather than the number of followers a creator might have such as Instagram. This is a great opportunity for brands to reach new audiences and partner with rising creators on the app. I feel like a brand that really demonstrates this is Montclair with the Montclair Bubble Wrap Challenge or Bubble Up Challenge, excuse me. So the idea was for creators who were not necessarily even in the luxury fashion niche to wrap themselves in a conceptual bubble, shall we say, which turned into a Montclair jacket as the final look with some handy dandy TikTok editing magic. And this reached billions of views. So we would see creators that were traditionally maybe in the dancing sector embracing this. And it was very interesting to see how the engagement just went through the roof for this type of challenge. I also think it's worth touching on the viral nature of the app. You can't talk about TikTok without talking about its virality. It's not just about jumping on the next hot thing just because it's popular. It's about choosing trending songs or audios that relate to your brand image in a way that feels authentic and emotionally relevant to the consumer. And when you feel like a brand, which I think we have all experience, when you feel like a brand is connecting with your identity and values through song or other elements of the content, you are far more likely to remember that brand in the long term and develop some sort of relationship with them. So I think the key difference is using TikTok, not as a sales generator, but as a brand awareness tool. Oh, okay. So could this be the answer to the problem facing TV advertising right now, which we spoke about a little bit in our last episode? But TV advertising, which even now is still reported to be the biggest driver of awareness for brands. I think it attributes to something like 70% of all brand awareness. And if digital or social marketing methods have naturally been more focused on that more instant return on investment for various reasons, brands still need a way to connect emotionally with this new generation who actually aren't sat there watching linear TV anymore. And they need to do so beyond just pushy kind of sales messaging. So how do they get their story out there and could this be the answer? Is this the platform to be doing this in? I mean, TikTok users are 31% more likely to buy a premium version of a product than the average social media user, which shows that something isn't working with the pay-to-play drive for instant returns that we've been seeing from the likes of meta-ads for the last sort of, how long has it been a decade now? (laughing) I don't want to play that game. I think the idea of engagement is something that brands could really lean into. Like, Versace for example, they, you know, the '90s is having a huge moment now. I thought I'd seen the back of low-hung jeans, but no, here we are, back with them. And you know, there's so many iconic Versace looks from the '90s. They could really play on that and have kind of content that feels relevant and authentic and it's taking part in a zeitgeisty conversation that the consumer is interested in, rather than just pushing products. I think that would be something that I think would work really well on the platform. Yeah, I mean, it's also a great way to introduce your brand to a new audience as well. Lockdown and the luxury e-commerce boom that followed it have prevented many consumers from engaging with products in real life. They're not going to the stores anymore. So brands had to think outside of the box to get in front of these audiences. I mean, you mentioned behind the scenes that fashion shows earlier on, but Dior was one of the first luxury fashion brands to really utilize TikTok to do this. I mean, they took their spring summer 21 fashion show live to the platform and they used it to communicate with that audience in real time, which was fairly innovative at the time. Although I do believe it was done on Instagram beforehand, back when Instagram live was a thing. It was the new hot thing. But they also joined Salaron, JW Anderson, and Louis Vuitton, as you spoke about, in holding kind of TikTok fashion shows, because the world had to pivot towards a different approach during the pandemic. And McKenzie and the business of fashion have reported that digital fashion shows have become essential to brand survival since the pandemic. So this is going to carry on. And TikTok's social commerce features mean that brands can actually gain sales from these digital shows. So in addition to that, arguably more valuable brand awareness can happen alongside those sales. Yeah, I mean, this is a fantastic example of advertising where brands are still nurturing a community and focusing on the brand building, instead of trying to just make a hard sale on the product. Like what Natalie mentioned with Versacee is another really cool demonstration of the culture of the brand and how it's still resonates with people today since the '90s and how it's really kind of shaped the pathway of the brand. Like that's the stuff that's really going to stick with people. Yeah, I mean, the language and the tone on this platform is less salesy than we have ever been used to. I suppose, but the sales still come. And more so as a result of that, that kind of investment in community. I mean, 65% of TikTok users have been prompted to make an unplanned purchase after seeing it on TikTok. I don't know what that says about TikTok users. Maybe we just love stuff. I don't know. I have purchased off of TikTok. I will not lie. You need that. You need that dopamine hit more. I don't know. Times itself. But how do luxury and slow to adopt brands, let's be honest, give in and let go and embrace TikTok and embrace all that TikTok stands for? I mean, the answer I suppose is from the examples you've given is still to work with influencers whose content on the platform actually makes up nearly 70% of media impact value for top brands. I completely agree. I think the power of influencers is real on TikTok. I mean, look at Manchester Bay start up Reffy. So influencers, Jess Hunt and Jenna Meek started the brand back in 2020. And according to Forbes, their first product sold out six weeks of launch. Even for an established brand, selling out in six weeks of launch would be an achievement. But for a new brand, entering a completely oversaturated beauty market, that's. incredible. And I think the founders knowledge of social media was a massive factor in that. You know, their natives to the platform, their content they're putting out feels really authentic. We see guests talking to users about pro development. You see the team in the office wearing the new shades and as a viewer, you kind of feel part of their world. Like you care about the team, you're more invested in the brand and that translates to the sales figures. It's really hard to ignore that kind of success. Yeah, so I guess using or utilising kind of premium influencers or ambassadors or whatever you want to call them, the word influencer gives me the heck a little bit. I like to prefer to them as ambassadors. You sort of use them as a celebrity catalyst, I suppose, which cures that issue that you have around not wanting to strip your content of that premium look and feel or you know the brand essence that nationally, as you said, has taken decades to build up. So you can use them as a catalyst to create those intimate moments with the users on that platform without you know the sacrifice I suppose that you have to make to how your content comes across. Someone who came to mind for me as you were speaking MJ was Kira Farongni. She's a celebrity status content creator. She's the CEO of her own company among many other things. She's done a lot of impressive stuff. She may be the biggest influencer in fashion actually, which is very very cool. I'm going to show my age here and say I followed her from the start when she was the blonde salad. Oh, that Sophie doesn't even know what blog live in is. I sadly missed that era when blonde salad was a humble blog. But yeah, I feel like she's a really great example of someone who's obtained that celebrity status and works with you know some of the biggest fashion houses out there. But she does it on the TikTok platform in such a personalized way where it really is a two-way conversation with her and her viewers. So you know maybe she's doing like an outfit of the day. She's showing you the prod a bag. She's doing all these things. But she wants your opinion. She wants you know your insight onto what outfits she should be wearing the next day. So I feel like she's a really good example of how celebrity influencers are leveraged on this platform. And it works better. I suppose for Gen Z because they trust influences more than traditional forms of marketing. But at what stage is that going to change? I mean you know when Instagram came on the scene we thought it was the best you know the best way to build communities and the best way to kind of show your authentic self from day to day. And suddenly it changed it evolved and it became this paid to play platform that a lot of brands use and and laden with ads. I wonder if TikTok is going to go the same way and I suppose if that happens we'll have to see you know what they say if it's free we're the product. I mean we say users for a reason. Exactly. I think it will be really interesting to see where it goes. And I think that there's a real opportunity for luxury brands but it does have to be done carefully like Sophie says it has to feel authentic to the platform and relevant to the user experience that people go therefore. Thank you for joining us Sophie. I hope you've enjoyed your time with us today and we'll hear more from you in the future I'm sure. Thank you so much for having me guys this was a really fun conversation to have. And if you want to hear more of our episodes you can head on over to @leapintaluxurypodcast on Instagram to find out who we'll be speaking to next.