Singles’ Day in China has witnessed a surge in the popularity of livestreaming, and AI influencers are at the forefront of this booming trend. With four times as many broadcast rooms opening in the first 10 minutes of this year’s Singles’ Day shopping festival compared to the previous year, AI-powered livestreamers are making a significant impact. Brands like Estee Lauder, L’Oréal, and Jo Malone are leveraging virtual anchors for live e-commerce, marking a shift from pre-recorded videos to real-time engagement.
The emergence of virtual livestreams
Traditionally, livestream mega-celebrities like Li Jiaqi, known as the “Lipstick King,” and Viya, the “Livestreaming Queen,” have dominated the Chinese livestreaming landscape. These influencers wield enormous influence, with Li Jiaqi rumored to have driven nearly a third of all Singles’ Day sales last year. However, influencers, both real and virtual, are not immune to scandals and controversies. Viya faced a $210 million fine in 2021 for tax evasion, and Li Jiaqi stirred controversy with out-of-touch remarks. Such incidents can disrupt brand campaigns and budgets when they collaborate with these influencers.
The appeal of virtual influencers
Virtual influencers like Liu Yexi are changing the game. They offer a unique advantage by mitigating the risks associated with real influencers. Brands can collaborate with virtual influencers, reducing the potential fallout from controversies and scandals. Virtual influencers also provide brands with more control over their campaigns.
AI influencers: Disrupting the livestreaming landscape
Livestreaming in China is not solely about celebrity influencers. Many viewers tune in primarily for discounts, not the charm of the presenters. This is where AI influencers come into play. AI-powered virtual influencers offer an economical alternative to traditional livestreaming setups. Their impact is profound, enabling brands to maintain a continuous online presence, a vital strategy in the highly competitive digital market. AI anchors can deliver consistent, tireless broadcasting, ensuring brands remain visible and engaging to consumers at all times.
Lower costs and increased GMV
The adoption of virtual influencers primarily aims to reduce costs. According to CICC, virtual influencers can boost average Gross Merchandise Value (GMV) by over 30% by maximizing user growth during off-peak periods and having a virtual livestreamer active 24/7. While quality engagement may not necessarily increase, the cost-efficiency of virtual influencers is a game-changer.
Luxury brands and AI integration
Luxury brands face unique challenges in integrating AI influencers. While AI offers scalability and cost-efficiency, it lacks the personal touch and deep product storytelling that luxury consumers seek. Reactions to AI anchors in the luxury sector have been mixed. Some appreciate the innovation, while others find AI influencers lacking in emotional resonance.
Balancing AI and human elements
The key for luxury brands lies in striking the right balance between AI and human anchors. AI can efficiently handle routine tasks and expand reach, but human anchors remain indispensable for delivering nuanced, emotionally engaging experiences. Shiseido’s collaboration with virtual influencer Ayayi demonstrates that even in sectors like skincare, AI influencers can make an impact. The challenge for brands is to adopt AI while preserving their unique brand identity and customer experience.
JD.com’s Yanxi virtual anchors
During this year’s Singles’ Day, JD.com featured virtual influencers called Yanxi virtual anchors in over 4,000 live broadcast rooms. While there is no data on the GMV generated by these rooms, the sheer number indicates brands’ willingness to embrace this technology for significant sales events.
The bottom line for consumers
For many consumers, the appeal of digital influencers, whether real or virtual, lies in the bottom line. Virtual influencers offer an alternative to the traditional livestream anchor industry, which often involves inflated prices and high commissions. Consumers appreciate the cost savings that AI influencers can provide.
The future of E-commerce: AI and human integration
As e-commerce continues to evolve, the integration of AI influencers represents a significant trend. AI can enhance capabilities without overshadowing the human elements essential to brand storytelling and consumer connection. Brands must navigate this integration carefully to cater to evolving consumer preferences while maintaining their unique brand identity.
AI influencers have emerged as the big winners of this year’s Singles’ Day, reshaping the livestreaming landscape and offering brands new opportunities for engagement. While challenges remain, the future of e-commerce will likely see AI and human elements working together to create compelling and cost-effective shopping experiences.
