Why KOL Marketing is so effective in China – and how you can use it
Photo by Min An at Pexels.
Chinese influencers are trusted by consumers more than anywhere else in the world. Here’s how to use KOL marketing to boost your brand and turn fans into sales.
Influencer marketing in the West is at a crucial tipping point, with many experts predicting its meteoric rise is over. In China, though, it’s booming.
In China, influencers are KOLs – Key Opinion Leaders, and so influential is their reach that in 2019, the industry was valued at over £5.73Billion.
“If you don’t have a KOL, you won’t sell,” Cyril Drouin, Chief e-Commerce Officer for Greater China.
More so than anywhere in the world, consumers place increasing levels of trust in KOLs. In turn, these KOLs are driving purchasing decisions. A Chinese marketing campaign that doesn’t use some form of KOLs is practically unheard of.
Research by consulting firm A.T. Kearney found receptiveness to brand recommendations by celebrities (78%) and KOLs (63%) among social media users in China ranked higher than in any country surveyed.
KOL marketing builds brand awareness and drives sales. It is also a helpful two-way channel to help businesses better understand the interests and preferences of Chinese consumers.
So just how big is the KOL market?
If the figures behind China’s e-commerce boom are mind-boggling, so too are those associated with top Chinese KOLs. British influencer Zoë Sugg (aka Zoella) is considered one of, if not the most influential influencers in the U.K, and has an Instagram following of 9.2 million. The top influencers in China: Austin Li, Papi Jiang and Kevin Chou have 117 million, 78 million and 55 million respectively across all platforms.
Even with more than 20 million followers on social media, journalist-turned-KOL Becky Li has an incredible track record. By converting fans and generating sales, she proves the value of KOL marketing.
In 2017, a collaboration with British car brand MINI saw her sell 100 limited edition versions of their Cooper model in less than 5 minutes.
Such a massive market can prove challenging to crack, though. Not only is there potential for cultural missteps, but fake KOLs with huge followings but very little engagement, new and emerging social media platforms and local shopping nuances like the Double 11 holiday.
Because of this, it’s common for overseas brands looking to tap into the Chinese e-commerce market to partner with a local marketing agency. Their advice on the most effective KOL marketing strategies and collaborations can prove invaluable.
To maximise their benefit, read on for a snapshot of the KOL market.
Photo by Hanxiao at Unsplash.
Types of KOLs
A KOL in China can be anyone – literally, from celebrities and mums, to farmers and even dogs – and generally fall under one of five categories.
Top KOLs & Wanghong: These thought leaders and influencers have the ability to heavily influence the purchasing decisions of their followers, even if they’re not actually selling the product (more on that below). Top KOLs are bloggers, socialites, columnists, journalists or personalities and locally, are often referred to as Wanhong: online celebrity.
Celebrities: Gone is the aura of mystery Chinese actors, singers or TV hosts used to cultivate. Today, they’re sharing their private lives via social media channels. And crucially, they’re using their platforms to collaborate with brands and influence consumers.
Experts: These influencers are authorities in their fields, with a strong knowledge of trends and products. This authenticity and insight obviously gives them considerable influence over consumers, particularly in areas like skincare.
Micro KOLs: These KOLs could also be experts, potential top KOLs or Wanghong, except that they have a smaller number of followers. Despite the name, Micro KOLs are generally considered to those with less than 250,000 followers. Some agencies would still consider those with less than one million followers on Weibo micro KOLs. Smaller follower numbers can have huge benefits, with fewer bots and greater levels of engagement.
E-commerce KOLs: Due to the vast price gap between mainland China and other areas, these influencers are both opinion leaders and entrepreneurs. They have their own brands or retailing channels and are the most commercial profile among all types of influencers.
There’s no doubt that KOL marketing represents exciting opportunities for marketers and brands themselves. In a market with restrictions on almost all of the familiar social media platforms (Facebook, Twitter, and YouTube), though – how does it work?
Let’s go shopping (on social media)
In China, the line between e-commerce and social media is seriously blurred. Multifunctional platforms bring together online payment, chatting and e-commerce interfaces that enhance influencers’ role. And this cohesion is driving the growth of the whole industry.
The key players? WeChat, Weibo, Douyin, Xiaohongshu, Meipai, Tmall and Taobao are some of the leading platforms KOLs use to roll out brand campaigns. Most often, they’ll use a combination, using different platforms to engage with their followers in different ways.
Whatever the campaign though, more and more customer journeys start – and finish – on the app. A Western influencer uses the Instagram Swipe Up function that takes followers to an affiliate link. In China, KOLs use platforms like Weibo that allow in-app purchasing.
It’s a system that works. Chinese consumers often respond better to a third-party endorsement than direct seller communication. Combined with a culture of increased reliance on multifunction apps, it becomes the ultimate shopping environment.
Accenture found that 70% of Chinese born after 1995 will turn to social media to directly purchase products as opposed to other channels.
Compare this with the global average of 44% and you start to see why KOL marketing in China is so successful.
How to use KOLs to boost your brand
Photo by Xianyu Hao at Unsplash.
Collaborating with a KOL has enormous potential, particularly for British retailers without a brand identity in China. Beware though. Like Western consumers, the Chinese are increasingly sensitive to overt promotion and sponsored content. The more subtle and more authentic the content, the more effective it is.
In 2021, there is still a place for the type of competition, giveaway and sponsored posts that KOL was built on. The most successful collaborations, though, will come from thinking outside of the box. For instance:
- Using KOL endorsements to help you sell your products in China is one thing, but utilising a collaboration far earlier might be what gives you the edge over your competitors. Looping a KOL in on product development gives you undeniable insight into the Chinese customer mindset. Plus, it ensures your product offering appeals to the local market (and doesn’t make any cultural missteps). Limited Edition ranges, especially when they’re part of a KOL collab, have proven to be seriously irresistible to Chinese shoppers.
- Consider personalised gifting, even if this type of merging of creativity isn’t on your radar yet. Instead of just gifting KOLs a product in the hope of endorsement, take it one step further. Engrave their name on a perfume bottle, monogram their initials on a product, or customise an eyeshadow palette with colours designed to complement their skin tone, for example.
- Live-streaming will be a major e-commerce trend in 2021 and beyond. KOLs will play a part in the promotion and hosting of live streams. They will also run their own and act as a storefront for your brand.
- Experience marketing is hugely successful in China. Offering visitors a chance to interact with products in the most creative way possible. Think: using AI capabilities to allow customers to ‘try-on’ make-up, for instance. In addition, inviting KOL guests is key. Just be sure to consider how any KOL in attendance will share their experience with their followers: are there plenty of social media-friendly photo opps? What about activities that grab attention/show off great design/tell an interesting story?
The takeaway
KOLs are an essential part of your Chinese marketing strategy. With massive reach in terms of both users and engagement, they can help your brand build online awareness and generate revenue.