Future Tech China: The Next Wave of Virtual Influencers
Plus: iQiyi's virtual boom, Lanvin turns to China, and platforms prepare for Singles' Day.
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The global influencer market was valued at $4.6 billion in 2018, and it’s projected to grow 26% annually from 2019 to 2025, with an increasing share of that growth potentially coming from virtual influencers (VI).
The Chinese market shows what the future could look like for the wider world. Influencers have become a seemingly permanent fixture in China, in large part due to a lack of effective targeted advertising. This means that Chinese brands have skin in the game when it comes to the development of virtual influencers. And it shows.
But between C-beauty brand Perfect Diary's Xiaowanzi (小丸子), KFC's Virtual Colonel, and the controversial Lil Miquela, how can we distinguish among the various types and classes of virtual influencers and their corresponding value to consumers or to brands?
The Virtual Influencer Framework
Storytelling indicates the level of character design in virtual influencers. Does he or she exhibit personality? For example, through wants, fears, or desires?
No matter how good the illusion, VI's don't exist on their own. Ownership refers to the creators of the virtual influencer.
Cooperation between brands and influencers fluctuates: they may or may not work well together. Without going into the moral implications of choosing "robots" over humans, virtual influencers can open up new social media channels for brands. Depending on the brand, VI marketing can be a great way to connect with audiences. It’s up to brands to decide what the trade-off is between messaging, having control over a virtual persona, a likely boost in followers, and increased CGI costs versus the opportunities for real-world influencer partnerships, along with the expenses of casting, fittings, and relationship management that come with human influencers.
For independent studios, virtual influencers could be anything from an art experiment to a storytelling technique with the added benefit of the potential brand partnership (and monetization).
The Four Classes
Virtual Stars, developed by independent studios, shine on the storytelling front. Bruv's Lil Miquela is exceptionally strong in this regard. Lil Miquela has her own YouTube account, her own breakup story, and her own ex-boyfriend. She's portrayed as a teenage girl, with teenage girl wants and emotions. It makes her "ultra-relatable." Her story writers clearly want "her" to exhibit personality — making her a Virtual Star.
It also allows her to bag massive brand sponsorships, such as her infamous Calvin Klein ad, in which she kisses (real) superstar Bella Hadid. What a time to be alive.
High and low storytelling is separated by the amount of depth that goes into creating a personality and whether or not the VI has a story, including desires, fears, and personal life. There is massive variation here and storytelling is not as distinguishable in the binary sense, but suffice to say that VI captions such as, "Tap to learn more about my favorite t-shirt" do not indicate extensive storytelling.
Also created by independent studios, Virtual Models fall into the basic caption category due to their low storytelling approach. The Diigiitals, a VI agency, developed Shudu.gram and Brenn.gram. They are branded as "the world's first virtual top models" and have collaborated with a couple of brands, including Balmain. They also walked the "virtual runway" for Miami swimwear brand Paraiso. They are Balmain’s Virtual Army, but Balmain doesn’t own them, making their ownership independent.
For now, the biggest feature of Virtual Models is their shock appeal. Using VM's shows a brand’s dedication to cutting-edge retail tech. Their relatively bland personalities are a feature, not a bug. It makes them more palatable to brands — if you're aiming to "shock" through a VI, does the VI's "personality" matter, or is the novelty of a virtual model enough?
Virtual Models don't need the storytelling maintenance of a Virtual Star and can more easily mix and match with brands. There's been a rise in agencies offering these services too: from Beijing-based boutique VI-specialist Blue Wildebeest to big mainstream agencies such as Wieden + Kennedy, who made KFC's Colonel Sanders. The downside is that VM's don't, by themselves, incite influencer loyalty like Lil Miquela does. They simply aren't all that "relatable".
Brand-owned virtual influencers serve to broadly strengthen brand loyalty and brand identity. In this regard, Virtual Mascots tend to be a manifestation of brand values. They're virtual models that are brand-owned: a bit bland but great for brand recognition. Case in point: JD.com’s so-called "Jingdog" Joy.
Virtual Spokespersons are virtual stars that are brand-owned. Wieden + Kennedy created and updated KFC’s Colonel Sanders, who hovers between independent and brand-owned: he represents KFC but has also collaborated with Dr. Pepper, TurboTax, and Old Spice. He’s a millennial reinvention of KFC’s old-school Colonel Sanders, complete with aspirational stories, manicured beard, and updated white suit. In social media posts, he is depicted in photos at the gym, on private jets, and hanging out with fellow VI friends, bordering on influencer satire, but with the KFC brand recognition bonus.
Perfect Diary's Xiaowanzi is another effective Virtual Spokesperson. Xiaowanzi posts beautiful travel and food photos on her WeChat moments and runs countless WeChat groups, where she shares "personal beauty tips" to her "friends." She's a Virtual Spokesperson who is operated by countless customer-service staffers. Instead of having its employees use their personal accounts to connect with consumers, Perfect Diary consolidated all accounts into Xiaowanzi. And by using Xiaowanzi, Perfect Diary eliminated the problem of customer-service staff turnover — audiences don’t become loyal to a staffer, but to Xiaowanzi. She feels like a real person because there is a real person behind her. And unlike KFC’s Virtual Colonel, her visual assets are based on a real person — no CGI needed.
The Impetus From Agencies and Reality TV
For brands that decide to go down the virtual influencer route, make sure you decide on a class that works best for you. The infrastructure that supports VI's is growing, from agencies that can build them to the latest virtual reality idol competition shows from iQiyi, “Dimension Nova” (跨次元新星), with human judges searching for the next big virtual star.
For brands, virtual influencers are a way to strengthen the brand identity. Virtual Mascots make a brand "recognizable” but Virtual Spokesmodels are where real brand-loyalty lies.
Further Thoughts
I'm curious about how this will evolve further. Will brands see the value of owning Virtual Spokespersons?
Lil Miquela's comment section on YouTube is full of fans empathizing with her as if she's a real person. How will audience reactions to virtual influencers evolve?
I personally see Lil Miquela, currently the most advanced VI, as a real-time storytelling medium. Instead of following TV shows like “Gossip Girl,” will we instead be able to follow similar dramas through Virtual Influencers on social media? Storytelling taken to another level.
Do you see this as indicative of "robots" taking away jobs from real influencers? What do you think? How real is too real?
Resources
League of Legends' KDA music video, YouTube
Introducing the world’s first branded virtual influencer, Wieden + Kennedy
I'm Miquela and this is my breakup video, Lil Miquela, YouTube
Fictional Influencer “Xiao Wanzi” is Perfect Diary’s Secret to Success, Jing Daily
- by Tanya Van Gastel
Mentioned in today’s newsletter: Alice & Olivia, Alipay, Arc’teryx, Balmain, Dell, Dr. Pepper, Hey Tea, iQiyi, JD.com, KFC, Lanvin, Maje, Ping An Insurance, Salomon, Sandro, Sprite, Tmall.
iQiyi Aims for a Virtual Boom
by Ginger Ooi
Video streaming platform iQiyi has sharpened its focus over the past year on trend-oriented reality shows aimed at generating buzz among Gen Z and millennial audiences, such as the hit idol competition show “Youth With You” (青春有你), and the streetwear boutique series “Fourtry” (潮流合伙人), which spawned a wave of celebrities-meet-fashion programming from rivals Youku and Tencent Video. iQiyi has made content-commerce a key part of its business strategy, emphasizing youth idols, popular culture, and lifestyle in its reality programming.
One way that iQiyi aims to boost its shows’ impact with its target demographic is through the use of virtual characters, which plays into the Gen Z and millennial love for cross-dimensional content, in addition to allowing for deeper development of iQiyi’s IP through product licensing and collaborations with brands.
iQiyi first released their virtual idol group “Rich Boom” in conjunction with the first season of “Youth With You,” in which the band’s six figures were seen dancing to the theme song of the show. Soon after Rich Boom’s debut in August 2019, the group released two singles that drew widespread attention thanks to participation from producers who had worked with global stars Bruno Mars and Beyoncé. They were even featured on iQiyi’s hit “Rap of China” (中国新说唱) with the character Pang Hu (“fat tiger”) paired with a leading contestant onstage during the semifinals.
Soon after, iQiyi released a new character— PDC (also known as Producer C), who served as the producer for Rich Boom. The characters created by iQiyi have been customized so that they display distinct personalities, making them more interesting and relatable to viewers. For instance, Producer C is described as seemingly quiet on the outside but passionate in his production work.
Another example is Yuni (known in Chinese as Jing Mei, 婧妹), created for the second season of “Youth With You” earlier this year. iQiyi personalized her with a birthday (March 12), height (165 centimeters), and a job description (“helping the contestants find their passion”). Her name combines the Chinese characters for “girl” and “youth” (女+青) and contestants also refer to each other as Jing Mei on the show. The show also featured a segment that saw contestants dress Yuni’s avatar in their own styles, and the designs were then made into figurines that were up for grabs by fans.
These virtual figures have enabled iQiyi to expand the reach of its IP, such as through concert appearances by Rich Boom in holographic form and partnerships with brands. In September 2019, Nongfu Spring Water announced Rich Boom as brand ambassadors, while Producer C has endorsed Tsingtao Beer, with a limited-edition drink created featuring the character on beer cans and bottles.
Next up, iQiyi is turning digital avatars into the stars of their own reality competition show. The newly release “Dimension Nova” (跨次元新星) enlists real-world celebrities Angelababy, Wang Linkai, and Esther Yu as mentors for more than 30 virtual competitors as they vie to win the title, and potentially many more lucrative sponsorship and licensing opportunities.
CCI Take: Chinese Owners Bring International Brands to Double Down on the Market
by Avery Booker
Last month, CCI highlighted the new emphasis on China by Finland-based Amer Sports, which was acquired in 2018 by a consortium led by China’s Anta Sports and recently installed Anta executive James Zheng as CEO to drive growth for its portfolio of brands that includes Salomon and Arc’teryx. As we noted, acquisitions of prestige brands by Chinese investment or brand groups are often followed by a pivot to prioritize the China market, and the attendant marketing and e-commerce shift that comes along with that.
For Arc’teryx in particular, this pivot meant opening the brand’s biggest-ever store in Shanghai, localizing marketing efforts via its official Tmall store, appointing supermodel Liu Wen as its first brand spokesperson, and announcing plans to accelerate its direct-to-consumer (DTC) efforts in China in the coming months.
And smaller labels acquired by Chinese brands are also accelerating their efforts in the market, such as Milan-based streetwear and skatewear brand Coppolella. Having been purchased earlier this year by the Peacebird Group, owner of multiple domestic Chinese fast fashion brands, Coppolella has set an ambitious target of €200 million ($237 million) in sales in China within the next five years.
Chinese-owned global luxury brands are also focusing more on Chinese consumers as revenue plummets in Europe and North America. One brand that is very publicly looking to the market for growth is French fashion house Lanvin, which was purchased in 2018 by Shanghai-based Fosun International and has been led by Joann Cheng, the chairman of Fosun Fashion Group, as interim CEO since the resignation of Jean-Philippe Hecquet in March 2020.
Read the full article at Content Commerce Insider
Brand Film Pick: From Reality Competition to Brand Darling, Folk Band Wu Tiao Ren Takes a Star Turn for OnePlus
The veteran folk-rock band Wu Tiao Ren was the unlikely star of the second season of iQiyi’s “Let’s Band” (乐队的夏天), enjoying a resurgence of popularity among new Gen Z and millennial fans akin to that experienced by indie rockers New Pants during last year’s show. After being voted off following a last-minute song change during the first episode, Wu Tiao Ren was brought back by popular demand, eventually taking second place in the competition.
But the band has been the clear winner among brands who have sought to collaborate with the group, leveraging Wu Tiao Ren’s distinct look and sound to stand out among consumers. Already, Wu Tiao Ren has worked with big names such as Alipay, Ping An Insurance, Sprite, Dell, and Hey Tea, among others.
In its latest collaboration with mobile phone maker OnePlus to promote its new 8T 5G model, the members of Wu Tiao Ren star in a series of short vignettes based on modern film classics — Wong Kar-wai’s “Chungking Express,” “The Grand Budapest Hotel” by Wes Anderson, and Quentin Tarantino’s “Kill Bill” — each highlighting the phone’s features in a quirky manner that meshes well with the band’s image.
News From China
China’s major e-commerce platforms have launched their Singles’ Day warm-up campaigns, which essentially turn the world’s biggest online shopping event into a weeks-long season of sales and promotions.
Alibaba launched its presales on October 20 with a media event in Shanghai that shared some of the e-commerce giant’s ambitions for this year. The company reports that 250,000 brands will participate in this year’s Singles’ Day (25% more than last year) with the debut of 2 million new products (double the 2019 figure), and an anticipated record turnout of 800 million shoppers.
In addition to the presales, Tmall will have more days of special deals, with a bonus period running from November 1-3, along with the expansion of discounts into non-traditional areas such as apartments, cars, and services such as interior design.
While not quite at the level of Alibaba’s 100 million items being sold for one yuan (15 cents), rival JD.com plans to offer a 50% discount on 200 million products, along with the launch of some 300 million new products during the three-week run-up to November 11.
The trend of using big names to boost e-commerce livestreaming will continue. Taobao Live plans to feature 300 celebrities and 400 company founders and key executives in its broadcasts over the coming weeks, while JD.com has invited 300 celebrities and 500 corporate leaders to conduct livestream sales.
As the big rivals step up their Singles’ Day game, content will increasingly be used to drive sales. Already, Tmall hosted an online/offline fashion event that kicked off with a live fashion show in Shanghai highlighting styles that would be available during the presale period from international labels such as Alice & Olivia, Sandro, and Maje. Celebrities and influencers who took a turn on the catwalk walked straight off and into the livestream studios to connect with fans online, where the digital activity continued for another 48 hours, drawing nearly 16 million views in total.
JD.com took to popular culture for its Singles’ Day launch, with the livestream of the “third-and-a-half” season of comedy competition “Rock & Roast” (脱口秀大会) which recently concluded its much-buzzed-about third season on Tencent Video. The broadcast featured popular comedians alongside JD.com Retail CEO Xu Lei and other executives using the light-hearted format to introduce various benefits of shopping via the e-commerce platform during the Singles’ Day season, such as the billions in consumer subsidies on offer and the platform’s highly regarded logistics and customer service.
News in English
Alibaba is taking a controlling stake in Chinese retailer Sun Art, one of the country’s leading big-box chains, furthering the tech giant’s integration of online and offline. Forbes
Alibaba is also aiming to grow its global influence with a new program to educate small and medium U.S. businesses on how to accelerate their digital transformations. Alizila
American luxury brands struggle to gain traction with Chinese consumers, the result of insufficiently upscale images and laggard marketing efforts. SCMP
The Chinese experience of successfully selling luxury online via platforms such as Tmall’s Luxury Pavillion could offer some lessons for Amazon in its latest effort. Azoya
E-commerce livestreaming has been the big China marketing story of 2020, so what might 2021 hold for brands interested in the hugely popular format? Parklu
Edelman’s Trust Barometer Special Report: Brand Trust in 2020 takes an in-depth look at what matters most to Chinese consumers and how to earn their loyalty. Campaign Asia
Digital natives, only children, and raised in relative prosperity: A look at some of the key factors that shape the media consumption habits of China’s Gen Z. GroupM
It’s not only foreign brands that run afoul of the Chinese government’s position on geography: Major milk producer Bright Dairy was recently fined $45,000 for a reportedly incorrect map on its website. Sixth Tone
An apparently fake Panda Express has opened in the southwest city of Kunming, although its operators deny that it is an unauthorized outlet of the American chain. That’s China
We’ve Got China Covered