Jakarta, CNBC Indonesia – China is starting to divert the use of influencers for marketing. Brands in these countries choose to sell using their own employees.
Previously, influencers would appear when marketing products, including during discounts. However, it turns out that their use actually eroded brand profits, quoted from the report Asian NikkeiThursday (7/9/2023).
Influencers are said to make profit margins thin. There are even losers because the fees paid are more expensive.
Finally, a number of brands decided not to use influencers anymore. Instead, employees will be present during sales on live streams that are fueling changes in the ecommerce industry.
The e-commerce industry is in a period of change. Apart from no longer using influencers, brands also do not accept orders via links in videos.
Another shift was seen during the 618 shopping festival. Jd.com reportedly featured computer-generated female characters live-streaming fresh produce, such as cherries and peaches.
During the stream, a message contains a product that the viewer has placed in their virtual shopping cart. JD’s featured character is one of hundreds of virtual hosts available during the 618 sale.
It turns out that the use of virtual hosts can drive company revenue. JD.com reported its revenue numbers jumped nearly 400% during its most recent sale compared to its previous live in November.
Live streaming sales in China are also growing rapidly. Taobao and Tmall live stream views increased 43% during the 618 sale.
In December alone, live streaming was watched by up to 750 million viewers. This number, based on data from research firm China Wind, constitutes 70% of China’s internet users.
Live marketplaces on ecommerce or other platforms will generate more than 1.2 trillion yuan by 2021, according to iResearch. The Chinese consultancy expects this market to grow 1.8 times by 2025.
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