Luxury Brands Could Learn What from Zara’s Recent Livestream Session in China?

Amidst the chaos of fast-paced livestreams and strong sales-driven messages, Zara is introducing a more serene and organized concept. Is this a strategy that luxury brands could adopt?

Content Overview Livestream Session Overview Changing Livestream Preferences in China Utilizing Livestreams to Enhance Brand Image But Can it be Scaled?

Livestream Session Overview When it comes to live commerce in China, it can be implied that Zara is currently setting the standard. With 12 cameras, 50 experts, and a set spanning 9,000 square meters, the latest livestream from this Spanish fashion brand could easily be mistaken for a movie set or music video backdrop.

On November 17th, the fashion brand introduced a new livestream concept on Douyin, hosted by supermodel You Tianyi. Lasting for 5 hours, the livestream included catwalk walks, dressing room entrances, makeup areas, as well as behind-the-scenes footage of cameras and staff.

Instead of the fast pace typical of China, Zara’s livestream was much calmer and more organized. The host took time to model the products, introducing the brand in a stylish and sophisticated manner.

A spokesperson from Zara China’s PR department shared: “The live streaming in a ‘program style’ reflects our continuous efforts to enhance our image and seek the best experience for customers.” “This is the approach we applied to our first livestreams on Douyin. With the experience from the initial broadcasts and the long-term goal of promoting the brand with the highest quality, we have launched our new Douyin livestream style.”

Although Zara did not disclose viewership numbers for the session, e-commerce data from the Douchacha analytics platform showed that the total viewership exceeded 1.2 million, a significant leap from the average of 200,000 viewers per livestream session.

Changing Livestream Preferences in China Sophie Coulon (CEO of digital consultancy firm VO2 Asia Pacific) said: “The livestream itself is not only a place to introduce fashion but also an experience designed to cater to the increasingly sophisticated tastes and luxury preferences of Chinese consumers.”

User @UFO西境艺创空间 (a photography studio in China) wrote: “After watching Zara’s livestream, I feel like the livestream industry is about to change.” “The hosts are talking about the products, combining everything in a relaxed manner… The whole atmosphere is like an online meeting for brand enthusiasts, without the noise and discounts like other livestream rooms. The brand’s reputation is at its peak.”

However, despite the positive reactions, the gross merchandise value (GMV) for the livestream is said to be dim. Data from Douchacha showed sales figures ranging from 250,000 RMB (35,054 USD) to 500,000 RMB (70,100 USD), with conversion rates lower than previous livestreams.

Utilizing Livestreams to Enhance Brand Image Zara’s new format is not about immediate sales but about investing in brand positioning. According to Daxue Consulting, increasing brand awareness is crucial in the fast fashion context, especially in China, where domestic brands occupy 70% of the market share and some global companies have been forced to retreat due to profit concerns.

Beyond fast fashion, Zara’s new idea may attract luxury brands, who see typical livestreams led by KOLs as not aligning with their brand image.

Coulon said: “Luxury brands have the opportunity to use this platform to create compelling stories that showcase their heritage, craftsmanship, and values.” “This approach elevates livestreaming from a simple sales channel to an engaging storytelling medium, fostering deeper connections with the audience.”

More creatively, luxury brands could integrate interactive elements into their livestreams such as live Q&A sessions with designers or virtual tours of the ateliers for a more comprehensive brand experience. She said, “Such elements can enrich the viewer’s experience, making the livestream not only informative but also engaging and memorable.”

But Can it be Scaled? However, not every brand can afford to implement backstage livestreams due to high operational costs, as some netizens point out. “The reason Zara is criticized is the high cost and unclear profit. In the context of an overall turbulent economic environment, where small brands are trying to grow and large brands are trying to survive, who would dare to spend such amounts on brand image?” User Xiaohongshu @立里 wrote.

But GMV is not the sole measure of whether a livestream is successful or not. Interaction rates, post-event brand sentiment, customer interaction quality, and long-term impact on brand awareness are all factors to consider.

Coulon said: “The goal is to create a memorable brand experience, make a splash with the audience, foster loyalty, and enhance the brand’s position in consumers’ minds.”

While Zara keeps its exact GMV figures confidential, the brand remains satisfied with the progress and intends to continue in this direction.

A spokesperson from Zara China said: “We are delighted to see our unique and creative livestream style being well received by customers.” “In the future, we will continue our livestream activities in this style weekly and strive to provide the best imagery as well as the best fashion deals. In the future, we will continue to evolve based on customer feedback.”