Creators Beware: Wuhan Vlogger Speaks Out on MCN Conflict
Plus: Auto brands take to the cloud, YSL's reality show, and Report Corner.
China’s coronavirus outbreak created a surge in demand for firsthand footage from the epicenter of Wuhan, drawing audiences to short video platforms such as Douyin and Kuaishou as well as Bilibili (NASDAQ: BILI) and its established community of creators.
Among the most popular to emerge in the early days was vlogger Lin Chen (林晨同学), whose documentary-style dispatches racked up millions of views, drawing increased attention from brands via his multichannel network (MCN), an agency that connects creators and influencers with brands.
Pre-coronavirus, Lin already had a following as a vlogger and last year he signed with No Bad Travel, which bills itself as an alliance of travel-focused creators. Lin says that after he drew nationwide attention for his coronavirus-related content, the agency sought to insert advertising into the videos, which Lin refused, given their sensitive subject matter.
Now, Lin says, the MCN is demanding he pay a penalty of RMB 3 million (US$420,000), according to the terms of their agreement.
In a 24-minute video posted on Bilibili on April 13, Lin faced the camera as he explained his decision to go public: “Over the past few months I’ve been depressed and collapsed many times, been both mentally and physically exhausted, and written many words, and I finally decided to talk about the issue because it’s not just me that’s facing it.”
Lin shared recordings of his conversations with MCN representatives, former employees and other creators who voiced their concerns about the company’s operations.
Lin claims that his cooperation with the MCN was extremely limited: he operated independently as a creator and did not make any money from his relationship with No Bad Travel, but the terms of his contract did not allow him to enter into other, non-MCN agreements that could produce income. The company has said it will issue a statement on the matter soon.
The video has been a hot topic on Bilibili, racking up 5.6 million views to date and sparking a vigorous debate about law, ethics and the role of MCNs.
There are estimated to be more than 5,000 influencer marketing firms of various sizes currently competing in the Chinese market, representing more than 90 percent of key opinion leaders (KOLs), and with a combined value forecast to surpass RMB 11.6 billion ($1.6 billion) this year.
But the industry is plagued with controversy over fraud via fake followers and click farms — even the largest MCN, the U.S.-listed Ruhnn (NASDAQ: RUHN) has not been able to shake allegations of less-than-transparent business practices, and now faces multiple lawsuits in the U.S.
Mentioned in today’s newsletter: Audi, Bilibili, Buick, Lee Jeans, Lululemon, MAC Cosmetics, Metersbonwe, Nike, Starbucks, Trip.com, YSL Beauty.
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Auto Brands Turn to Content as a Lifeline in China
Auto sales in China took a huge hit during the coronavirus outbreak, with year-on-year sales down around 80% in February. We’ve previously shared how auto brands turned to content to maintain connections with consumers at a time when most were staying home and putting off major purchases.
Now, with some resumption of normal activity, more efforts are being made to boost sales, which remained tepid in March at nearly 50% below 2019 levels. How can brands come back from such a drop? Here are some of the latest tactics:
As seen on TV: Satellite network Shenzhen TV worked with Audi to produce a “Super Press Conference” for the automaker’s A4L model. Under the theme of “Be Your Stronger Self” (做更强大的自己), Shenzhen TV and Audi invited four celebrity guests to give TED-style talks and used AR and VR technology to create a compelling presentation despite ongoing coronavirus-related restrictions on productions.
Enter the cloud: Buick turned to the “cloud” to launch its GL8 Avenir model in China on April 12, deploying a strong content-oriented strategy to draw widespread attention across multiple platforms including Douyin, WeChat and Weibo. Buick invited popular TV variety show host Wang Han to oversee the event, which included a humorous chats with expert drivers, a series of celebrity test drives to highlighted different features of the car in a fun manner, and, a performance of Tan Dun’s latest composition, “12 Sounds of Wuhan” (武汉十二锣), dedicated to the city’s fight against the coronavirus.
Celebrity livestreaming + major discounts: The controversial tech entrepreneur Luo Yonghao followed up on his big e-commerce sales debut by hosting his second broadcast on Douyin, where he offered a dozen cars from Chinese SUV brand Haval at half price, with proceeds going to charity for coronavirus relief efforts. Although Luo’s sophomore effort saw 76% fewer viewers and 70% less in sales than his inaugural broadcast, it was a win for Havel. The steeply discounted cars sold out, as did more than 11,000 vouchers it offered with a face value of RMB 2,777 ($393) apiece.
Speaking of Luo, it appears that “boss livestreaming” could become a lasting trend in e-commerce. The CEO of another recently troubled company, Liang Jianzhang of Trip.com, has been working with short video platform Kuaishou as a sales host. Liang has garnered more positive reviews than Luo, as he aims to provide greater entertainment value by, for example, dressing up as a character from “Crouching Tiger, Hidden Dragon” for a broadcast from the film’s shooting location in Huizhou. Liang also appears to have a more professional demeanor and better knowledge of the products he promotes, and has worked with local governments to promote tourism to various locations.
Trending on Tmall: YSL’s Cloud Variety Show, Starbucks Mystery Movie and More
Tmall launched its first luxury-oriented “cloud” show with YSL Beauty, “I Love You So Pop” (红唇啵普) to promote a Summer 2020 lipstick collection that was inspired by pop art. Singers Wu Xuanyi and Fu Jing from Rocket Girls 101, Lin Yanjun from boy band Nine Percent and actress Bai Lu represented the four shades of the collection and completed beauty challenges that revolved around the lipsticks. The concept of short, branded beauty reality shows is relatively new, but follows a similar Tmall partnership with MAC Cosmetics last month on a makeup competition program timed to coincide with the promotion of MAC’s Super Brand Day on the platform.
Alibaba’s flash sales platform Juhuasuan worked with Starbucks to produce a short mystery film, “Bear Store Manager’s Secret” (熊店长的秘密) to promote the coffee chain’s Party Day shopping event on April 13. A suspenseful trailer for the film was released publicly, but audiences were required to register on Starbuck’s page on the Taobao app to find out what happened next. The film’s bear-costumed lead character also hosted a livestream on Taobao Live, during which 10,000 cups of coffee were given away and bear-themed product were launched for sale.
In conjunction with Tmall’s ongoing campaign to support domestic “national trend” (guochao) brands, fast fashion brand Metersbonwe designed a collection inspired by Peking opera, with a video produced with Elle magazine promoting the new line and starring Chinese supermodel Liu Wen. The collection was launched for sale via a livestreamed broadcast hosted by Wang Peiyu, a top Peking opera artist.
How long can livestreaming go? Another domestic fashion label, Mark Fairwhale, recently made a splash by hosting a 72-hour broadcast via its Tmall flagship store. The show drew attention for the participation of several popular e-commerce livestreaming hosts along with Mark Fairwhale CEO Yang Kuntian, who surprised viewers by sporting the brand’s trendy streetwear instead of his usual business attire.
Brand Film Pick: Lee Jeans Adapts “Stand Tall” Campaign for China
A recent campaign by Lee Jeans highlights how brands can adapt somewhat generic regional marketing to speak more directly to Chinese consumers. For the broad Asia-Pacific region, Lee’s “Stand Tall” campaign for Spring/Summer 2020 features an English-language video with an anonymous caucasian male actor/model narrating his transformation from an insecure and literally invisible youth to a confident adult, proud to “stand tall” in Lee denim.
But in a Chinese version of the video, Lee replaced the lead with actor Eddie Peng, who has worked with the brand since 2018, and gave him a somewhat more compelling script that underscores the contrast between celebrity and “invisibility” while encouraging greater self-awareness. Peng’s reputation as a hardworking celebrity meshes well with the brand’s image and the campaign’s messages of courage and self-affirmation.
The Chinese film was released on Weibo in the lead-up to Lee’s upcoming Tmall Super Brand Day, which will bring the brand additional attention through Tmall’s marketing initiatives. Lee also worked with top e-commerce livestreamer Li Jiaqi (whose name matches the brand) and streetwear magazine YOHO!, which ran a spread of a denim-clad Li along with an interview discussing what it means to “stand tall.”
Report Corner
The spike in media consumption during the initial period of China’s coronavirus lockdowns has been well documented, and GroupM follows up with a report on how consumer habits changed during the later weeks as people resumed work following the end of the extended Spring Festival holiday.
Kuaishou’s “2019 Beauty Industry White Paper” shares data on the rapid development of beauty e-commerce via the platform, which hosted more than 30 million videos from sellers of beauty products last year.
Coresight Research takes a detailed look at Nike’s four-phase coronavirus strategy and Lululemon’s two-workstream approach to managing the coronavirus crisis in China.
News in English
Why major food and beverage brands such as Pepsi and Nestle have taken to Douyin to work with Chinese influencers on the popular short video platform. Parklu
A broader look at how brands from beauty to sports are using short video to reach Chinese consumers. KrAsia
Beijing, Shanghai and Guangzhou have just issued stringent new gaming regulations that include a reminder that all in-game advertising requires approval from authorities. Pandaily
And just a few days after grey market imports of Nintendo’s “Animal Crossing: New Horizons” were pulled from e-commerce sites, livestreams of the game have disappeared from popular platforms such as Douyu, Huya and Bilibili. Abacus
Despite the coronavirus restrictions, Nike’s out-of-home campaign for International Women’s Day last month managed to draw news coverage, attention on social media and, most importantly, increased female engagement. The Drum’
A single Hermès store in Guangzhou reportedly sold $2.7 million worth of merchandise on the first day of its post-coronavirus reopening — that would be a single-day sales record for the luxury brand’s stores in China. WWD
Best known as a food delivery app, Meituan Dianping is moving into broader e-commerce sales, offering cosmetics and clothing among other products. Tech in Asia
Alibaba’s Idle Fish (Xianyu) platform for secondhand goods has emerged as a source of community support during the coronavirus epidemic. Sixth Tone
Diane von Furstenberg’s head of business development for Asia Pacific shares the brand’s experience as a participant in this year’s virtual Shanghai Fashion Week on Tmall. Alizila
Damage control: McDonald’s issued an apology after a store in southern China posted a notice banning black people from entering the restaurant. CNN
China’s highest court handed Michael Jordan and his brand a final victory in a long-running dispute against Qiaodan Sports. Sports Illustrated
We’ve Got China Covered
China Film Insider: China’s TV Regulator Moves to Deter Inflated Audience Data
Jing Daily: Lanvin’s Tech-Minded Interim CEO Joann Cheng on the Future of Fashion
Jing Travel: VR Travel, Pre-Sale Deals, and Hotel Robots — Post-COVID Trends
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- CCI Team