How about selling 15000 units of lipsticks in 5 minutes?
That's the magic of Live Streaming in China. It has been an effective sales & marketing tool initiated by local Chinese brands and nowadays adopted by more international big players. Why has it become so popular? Is it a universal solution for all industries?
Live streaming by Austin Li, one of the most famous live streamer for cosmetic brands, trusted and beloved by his fans because of his honest, direct and objective reviews about brands.
Live Streaming drives sales
- Austin Li, dubbed “King of Lipstick”, once sold out 15000 units of lipsticks in 5 minutes.
- Viya, “Queen of live streaming influencer”, who brought 33 millions euros sales during a 2-hours-long streaming.
- Direct communication with the influencer. The personal charm of an influencer* or KOL (Key Opinion Leader)* is often the reason why people watch a live streaming. Some critics say live streaming is just like TV sales in the past, but there is an essential difference about live streaming: the sense of real time participation and direct communication through comments and likes, knowing that your favorite influencer will see your comments and maybe “cue” you back. For example, Austin Li once responded live to a comment from a 15 years old teenager: “15 years old is not quite ok (to watch my live streaming)” and that he expects audiences to have personal income before spending money impulsively in his live streaming. Even more fans are attracted to him because of his value and honesty.
Difference between influencer and KOL: they are quite similar in the way that both influence customer's opinion and decision about brands or products. Although the term “influencer” is more focused on the popularity of the individual, “KOL” put more emphasis the individual's on professionality and trustworthiness since it's called key opinion leader.
- Discounts and incentives. This is an important reason why people decide to purchase in a live streaming instead of other channels. Big KOLs usually have the negotiation power to get the lowest price in the market and bring real benefit to their fans, this is so-called “spoiling the fans”. Nowadays, especially after the crisis of COVID, consumers are more realistic than ever. Offering special discounts and incentives plays a crucial role in driving consumers purchasing decision.
- Save time and effort. Finding a trustworthy influencer means that consumers will save time and effort in investigating the brand and trying on the products. Especially in a fast-speeded society like China, everyone wants to reduce the possible cost of mistake by listening to the advice of an influencer or KOL. Imagine when people watch a live streaming on the metro back home, they can make the best use of their time by easily completing the purchase without having to visit a physical store.
Live Streaming in 2020
Viya selling a real rocket with launching service in her live streaming. 500k rmb showing in the picture is the down payment while the full price is 40 million rmb / 5 million euros.
Is it a universal solution for sales?