Event
Seminar: KOL Marketing @ Christine Tsui International Fashion
Date: 13 March 2018
Seminar Host: Heather-Wuhan-AGL; Alena-Shanghai-AGL
Outline
- INTRODUCTION & BACKGROUND
- ADOPTION AS A MKTTOOL
- PROS&CONS
Part One: INTRODUCTION AND BACKGROUND
KOL, or s so called “Key Opinion Leader”, refers to a person with a significant influence on people. In China, it can be a famous or just a regular person with large-huge fan base. The term KOL has been used in the marketing field, however, in our seminar we use this term as a reference to Chinese KOLs, whereas those in the West will only be called as “influencers”.
KOLs in China are mostly active on different social media platforms, such as Weibo, Bilibili, Wechat and many others. As seen bellow, the KOL was compared to the Chinese words “wang hong” that seems to have a very negative connotation in the Chinese language, which is mostly linked to gossiping.
The very first KOL in Chine appeared in 1988. Taiwanese writer Pi zi Cai became the first Chinese internet celebrity with his online romance novel “The First Intimate Touch”. Since then, as the internet and techniques developed, more apps and platforms have sprung up, bringing huge opportunities and more exposure for this group.
In a nutshell, no matter KOL or influencer, their role is essentially the same — They both collaborate with brands in term of product promotion and trigger the interest of their audience in desirable direction.
The concept of KOL
Alena-Shanghai-AGL
At start, let me ask you the first question: Has everyone in here heard about the concept of KOLs or网红?
Heather-Wuhan-AGL
Someone very popular online and has both social and commercial value. What’s KOL in your opinion？
Vincent-Shanghai-Incubator
KOL is an influencer. For consumer, is influencer blogger. But B2B influencers are called thought leaders. The term is being used quite loosely.
Alena-Shanghai-AGL
Yes,very good. KOL,in other words:Key Opinion Leader.
Hangzhou-Jessie-co-founder
KOL means Key Opinion Leader.
Alena-Shanghai-AGL
Also, just to be sure. When we are talking about KOLs, in particular, we are referring to those in the Chinese market. Otherwise you also could have heard the term”influencer”as it was mentioned, but about that later.
Vincent-Shanghai-Incubator
KOL is a term used worldwide, not just in China.
Alena-Shanghai-AGL
It is, but it refers mainly to China. I would say that in the “West”, they are referred mostly as solely ”influencers”.
Vincent-Shanghai-Incubator
KOL is a term used in advertising and PR for quite sometime.
Alena-Shanghai-AGL
Ok, so to be more accurate. As we will be talking about the Chinese market. Let’s refer to them as wanghongs.
Natalie-Xiamen-Analyst
For me, wanghong is a bit negative, sorry. For the bias.
Vincent-Shanghai-Incubator
Influence’s are more precise in defining the role. Influencers, influence people.
Alena-Shanghai-AGL
Why so?@Natalie~Xiamen~Analyst.
Vincent-Shanghai-Incubator
@Alena-Shanghai-AGL~Shanghai~AGL Natalie’s comment actually is a reason why KOL all changed names into influencers.
Grace-Shanghai-Media
Because people have certain negative impressions about them@Alena-Shanghai-AGL.
Natalie-Xiamen-Analyst
Bias is hard to explain; and maybe because the word wanghong often appears in gossip etc.
Alena-Shanghai-AGL
Oh,I had no idea. How are these KOLs addressed in this case in China?As KOLs, influencers?
Grace-Shanghai-Media
KOL and influencers are more inclusive and precise, as many of the influencers are not only active online but also in real life.
Alena-Shanghai-AGL
Oh, I see. When did they appear?
Alena-Shanghai-AGL
So anyway, Does anyone know how and when did they “appear”?
Alena-Shanghai-AGL
The whole concept of, first online, influencers appeared?
Grace-Shanghai-Media
I guess in China, it has something to do with Weibo.
Alena-Shanghai-AGL
Because I guess, once you are not a publicly known celebrity, you gotta start on the internet.
Astrid-Shenzhen-Operation
Maybe few years ago, people start call those girls“IT girl”？
Grace-Shanghai-Media
Like the Chinese version of twitter.
Alena-Shanghai-AGL
Good guess.
Heather-Wuhan-AGL
@Grace_Shanghai_media That’s one of their platforms.
Alena-Shanghai-AGL
Actually the very first one, that could be called an”influence”started in 1998.
Alena-Shanghai-AGL
Taiwanese writer Pi zi Cai became the first Chinese internet celebrity with his online romance novel“The First Intimate Touch”.
Grace-Shanghai-Media
Haha, I know that one, Pi zi Cai.
Alena-Shanghai-AGL
He actually got himself a nerdy audience of wanghong, or“networms”, which the term wanghong later was supposed to be created from:).
Alena-Shanghai-AGL
Sorry for using this term again, just for the sake of explaining. I agree 100%, and done without the internet. Of course with the time, the internet speed , our personal electronic devices and their cameras improved and the internet created a haven for beauty, fashion, lifestyle bloggers. And of course, people started posting and sharing pictures.
Part Two: ADOPTION AS A MKT TOOL
There are many ways of how KOLs/influencer can collaborate with brands. It could be compared to a pyramid of channels: brand ambassador, brand spokesman/woman, product spokesman/woman or regional ambassador.
Either way or another, the collaboration is mostly product-oriented. KOLs/ influencers are responsible for product promotion, such as garments, make-up, handbags in either very apparent way or in a very casual manner, such as randomly sharing their daily life photos with occasional showcase of the product.
As for the effectiveness of such collaboration, some are successful while some are not.
For example, some celebrities, such as Xu Weizhou, known as one of the popular pretty boys or China’s “little fresh meat”, ranking No.1 for social influence, is ranked first among the bottom 10 in term of commercial value. In other words, his influence or number of social media followers in not translated into sales, and therefore may not seem as a good investment from the brands’ perspective.
Therefore, it’s necessary for brands to do a little bit of a marketing research and investigation before choosing suitable KOL. Understanding their fans values, and being clear about their consumption capacity and preference are the most important factors brands should understand.
Heather-Wuhan-AGL
I believe many of you have seen those people online，very very frequently.
Source: 1’H 2017 Bomoda China Key Opinion Leader Index Reports
Natalie-Xiamen-Analyst
Where is the source for this list?
Vincent-Shanghai-Incubator
Oh yeah.
Heather-Wuhan-AGL
It’s a new study by Bomoda, a NY-based consumer intelligence company.@Natalie~Xiamen~Analyst
Heather-Wuhan-AGL
From are port that looks at effectiveness of thoseKOLs throughtwolenses: social influence and commercial influence.
Julie-Shanghai-High-end retail
To me, they are more‘ star’ rather than KOL in china. I will say Chinese KOLs like Zhang dayi , Gogoboi, Freshboy, Rebecca…etc.
Natalie-Xiamen-Analyst
Yes.
Astrid-Shenzhen-Operation
Yes.
Julie-Shanghai-High-end retail
But in terms of a ‘influencer’, maybe they can be classified in the same category?
Grace-Shanghai-Media
Agreed.
Oran-Shanghai-Merchandiser
This list shows much ads companies invest to those people.
Alena-Shanghai-AGL
Where I work, the marketing department refers to”celebrities”and”KOLs” but at the end of the day, the result should be similar.
Heather-Wuhan-AGL
They are all adopted as MKT tool by brands. Many brands are collaborating with them by using their media exposure.
Alena-Shanghai-AGL
Yes.
Julie-Shanghai-High-end retail
Take the example of an bingbing on小红书，she is a KOL there.
Heather-Wuhan-AGL
@Julie-Shanghai-High-end retail~Shanghai~High-endretail Yes！Haha.
Natalie-Xiamen-Analyst
I should say the difference shall be based on whether they have company or group to build their image to become KOL.
Heather-Wuhan-AGL
How many of you know the ways of collaboration between KOLs and brands？
Alena-Shanghai-AGL
Brands’ ambassadors. Angelababy for Dior or UGG.
Julie-Shanghai-High-end retail
I have a good article on this issue to share but it’s in Chinese…
Heather-Wuhan-AGL
Yes，those are very apparent ways@Alena-Shanghai-AGL~Shanghai~AGL
Julie-Shanghai-High-end retail
It explains the difference between brand ambassador, brand friend..etc.
Natalie-Xiamen-Analyst
Gogoboi and Mr.bag, Their commercial collaborations are successful.
Oran-Shanghai-Merchandiser
I think the brands are trying to catch the fans behind the KOL.
Heather-Wuhan-AGL
Exactly.
Vanessa-GZ-couture
Collaboration between KOLs and brands start from bloggers in west, first like models.
Julie-Shanghai-High-end retail
I’ll translate some key points. Pyramid of channels: brand ambassador, brand spokesman (spoke woman), product spokesman (spokeswoman), regional ambassador, regional certain line ambassador. And also brand friend, brand muse…etc. Their levels are different.
Astrid-Shenzhen-Operation
I know that most of time brands send their products to KOLs, they post pictures. Sometimes KOLs get a special link, that will provide their commission according to the sell.
Vanessa-GZ-couture
They share their”daily style”makeup things….somehow actually from the brand.
Yohanna-GuangZhou-Student
Like some YouTubers who update their makeup videos, lots of brands will send their products to them.
Heather-Wuhan-AGL
Yes！As far as i know，Brands often expect more from collaboration with KOLs. They not only wish to expand their exposure by KOL’s attendance in many social activities like fashion show, but wish them to keep promoting their products in their daily lives.
Vanessa-GZ-couture
Maybe at the first they really shared daily style, but after were business.
Heather-Wuhan-AGL
Possible. Because that feels very genuine.
Alena-Shanghai-AGL
The KOLs receive a product from a company and then they decide whether to share it?
Oran-Shanghai-Merchandiser
That’s true! Soft tender ads all from daily life post chicken soup articles.
Astrid-Shenzhen-Operation
Something like that.
Vincent–Shanghai-Incubator
Ha ha ha, Chicken soup articles, ha ha.
Heather-Wuhan-AGL
Is there money payment?
Astrid-Shenzhen-Operation
And sometimes small company will offer KOLs a discount. I mean if you have a lot of fans, sure. But if you are more local, they will offer the discount.
Heather-Wuhan-AGL
So any way, their collaborations are mainly product-oriented.
Astrid-Shenzhen-Operation
Yes,I think so.
Heather-Wuhan-AGL
Do you think those ways are really efficient?
Astrid-Shenzhen-Operation
Oh yeah, it works.
Heather-Wuhan-AGL
And let me post another pic ha ha.
Source: 1’H 2017 Bomoda China Key Opinion Leader Index Reports
Astrid-Shenzhen-Operation
Wow, that’s hurtful.
Heather-Wuhan-AGL
Those stars are very popular, But they’re ranked as bottom 10 in terms of MKT impact. Why？
Natalie-Xiamen-Analyst
Not agreed with Xuweizhou and Liuyifei.
Astrid-Shenzhen-Operation
I mean it hurts their personal feelings…
Astrid-Shenzhen-Operation
Yeah, me too. I thought Xuweizhou are doing good, but maybe his fans are not translated to sales.
Heather-Wuhan-AGL
Yep！
Heather-Wuhan-AGL
At the opposite end of the spectrum are celebrities such as XuWeizhou. Known as one of the popular pretty boys or China’s“little fresh meat,” the actor ranks No.1 for social influence. But when it comes to commercial value, he is ranked first among the bottom10.
Natalie-Xiamen-Analyst
The situation for zhaoliying might be changed in the near future since she now has a very professional and capable agent.
Astrid-Shenzhen-Operation
So that means the brand is wrong, they don’t do the homework well.
Alena-Shanghai-AGL
Yes.@Astrid-Shenzhen-Operation .
Heather-Wuhan-AGL
That because 99percent of the social media buzz by Xu’s fans is non-product or non-brand-related, according to Bomoda.
Natalie-Xiamen-Analyst
@Astrid-Shenzhen-Operation Yes.
Heather-Wuhan-AGL
In an other word，what makes you follow their recommendation? Any thoughts？
Natalie-Xiamen-Analyst
Who I follow are normally someone do a great in some other industry rather than just fashion industry such a s ads company or PR, etc.
Natalie-Xiamen-Analyst
I reckon their lifestyle and value first, then products.
Astrid-Shenzhen-Operation
Brands need to do a better marketing research. Understanding their fans are most important.
Oran-Shanghai-Merchandiser
Me too!I never pay for the person I like, while pay for the products I need.
Vanessa-GZ-couture
@Oran-Shanghai-Merchandizer +1.
Heather-Wuhan-AGL
@Oran-Shanghai-Merchandizer Do they recommend things you need？
Astrid-Shenzhen-Operation
But what if you have second thought about two products, but KOL just post one of them?
Alena-Shanghai-AGL
Well, their job is actually to INFLUENCE your thoughts to get the first one. The one they are posting.
Natalie-Xiamen-Analyst
I will check the feedback from real consumers.
Astrid-Shenzhen-Operation
Let’s say they are equally good.
Vanessa-GZ-couture
I got to say i will choose the one looks more adorable.
Part Three: PRONS & CONS
When it comes to the PRONS & CONS of such marketing moves , It is undeniable that KOLs will bring huge profits for brands, and more undiscovered good products for consumers as well.
However, they can also be misleading for the public, by recommending those from brands they collaborate with, out of gaining interests.
And another fact is that most of the expensive KOLs actually won’t have any influence in China, simply because they don’t have any real influence. Their popularity is an illusion, created by so called zombie fans.
Such influencers, with a seemingly large fan base demand thousands of dollars to promote products on their personal accounts for…well…nothing.
So as it was mentioned before, with the goal of increasing sales and expanding the market, the brands need to do their homework. And as a consumer, you need to identify those really influential and beneficial to you.
Alena-Shanghai-AGL
There are several platforms which allow influencers to reach their audience and get paid directly–virtual currency, gifts and many others. For example MeiPai, Yizhibo and HuajiaoZhibo, right?
Speaking of Weibo. I chose one example for our discussion, to see the concept from more practical, less theoretical perspective, and so 25-yo fashion blogger LiangTao, known as Mr.Bags(包先生).
Mr Bags: https://weibo.com/mayumilux?refer_flag=1001030102_
Mr Bags: https://weibo.com/mayumilux?refer_flag=1001030102_
Oran-Shanghai-Merchandiser
Pls also check the feedbacks from other users!
Alena-Shanghai-AGL
Everyone familiar?
Vincent-Shanghai-Incubator
Not really.
Astrid-Shenzhen-Operation
Just followed him last week.
Vincent-Shanghai-Incubator
I like to watch benny’s vlog on bilibili.
Alena-Shanghai-AGL
I am not familiar with bilibili.
Vincent-Shanghai-Incubator
Is fun!
Astrid-Shenzhen-Operation
Although I’m not a big fan of his writing style, use too much“!”
Oran-Shanghai-Merchandiser
Check the numbers of fans 3millions. Don’t you think that is because fakes bags are to much in well-known platform like Taobao..but he can offer real ones.
Vincent-Shanghai-Incubator
He is one of the most successful influencers at the moment, focusing on collaboration with luxury brands and promoting their products—bags.
Alena-Shanghai-AGL
Yes, he does. A huge fan base.
Vincent-Shanghai-Incubator
Some of those’开箱(Means unpacking)’ open boxed is so fake…so promotional…so bad…
Alena-Shanghai-AGL
He has direct links on his Wechat to e-commerce platforms of the brands. Or he even has the”limited”editions.
Mr Bags: https://weibo.com/mayumilux?refer_flag=1001030102_
Mr Bags: https://weibo.com/mayumilux?refer_flag=1001030102_
Alena-Shanghai-AGL
That get SOLD OUT within minutes. That is the power of such a strong KOL.
Vincent-Shanghai-Incubator
I need to check my watch history hehe.
Oran-Shanghai-Merchandiser
Oh limits make people crazy!
Astrid-Shenzhen-Operation
He is more into sale bags compare to other KOLs like gogoboi.
Alena-Shanghai-AGL
It has been taken to the extend that he even kind of sells or intermediates the sale of purses with his signature. So basically, as a fashion brand, you can get in touch with Mr.Bags and offer him a collaboration.
Astrid-Shenzhen-Operation
Mr.bag post more often compared to others bloggers.
Alena-Shanghai-AGL
Yes, because brands approach him very much.And he gets a lot of money out of such cooperation It can reach up to hundreds of thousands RMB for one article,Which I think is crazy crazy crazy scale of a business.
Astrid-Shenzhen-Operation
I’m not a big fan of him, so this whole cooperation is a little bit bother me. Because I only follow him for the content of the bag.
Alena-Shanghai-AGL
In this case, of course, the problem may appear if you are dealing with such an influencing person. As they very much case for their reputation, they can very picky in terms of the brands and their products.
Vanessa-GZ-couture
Anyone Follow her? Rebecca.
https://jingdaily.com/bomoda-report-ranks-china-kols-effectiveness/.
Astrid-Shenzhen-Operation
Don’t like her style that much, not for me.
Vanessa-GZ-couture
She writes stylist, make-ups.
Astrid-Shenzhen-Operation
She cooperated with Mini Cooper last year.
Alena-Shanghai-AGL
It more than just paying the KOL to promote your product, of course they are more sophisticated than that. First of all, the must like the product(which does not have to be obvious, since being a KOL has turned into a very well-paid job).
Second of all, the product itself should be align with the KOL’s philosophy/ideology/lifestyle/fashion style. Just as a brand, they need to be consistent in terms of their articles, post and recommendation to keep their credibility.
Another question I would like to ask, is…do you think there are any cons about KOL marketing? For the brands. After what we have gone through and what we have learnt about KOLs.
Heather-Wuhan-AGL
Misleading, they could mislead their followers to some extend，but that’s also inevitable, tho.
Alena-Shanghai-AGL
Nice guess.The fact is that most of the expensive KOLs won’t have ANY influence in China, simply because they don’t have any REAL influence.
Their popularity is an illusion, created by so called zombie fans. Such influencers, with a seemingly large fan base demand thousands of dollars to promote products on their personal accounts for…well…nothing. So as it was mentioned before, the brands need to do their homework:).
Astrid-Shenzhen-Operation
If you pick the right KOL, sure you can increase your brand awareness. That’s a con I think.
Conclusion
We have covered three parts during this group discussion: introduction and background of KOLs；their adoption as a marketing tool; pros and cons.
As for the first part, KOL, or s so called “Key Opinion Leader”, refers to a person with a significant influence on people. In China, it can be a famous or just a regular person with large-huge fan base. The term KOL has been used in the marketing field, however, in our seminar we use this term as a reference to Chinese KOLs, whereas those in the West will only be called as “influencers”.
KOLs in China are mostly active on different social media platforms, such as Weibo, Bilibili, Wechat and many others. As seen bellow, the KOL was compared to the Chinese words “wang hong” that seems to have a very negative connotation in the Chinese language, which is mostly linked to gossiping.
The very first KOL in China appeared in 1988. Taiwanese writer Pi zi Cai became the first Chinese internet celebrity with his online romance novel“The First Intimate Touch”.
Since then, as the internet and techniques developed, more apps and platforms have sprung up, bringing huge opportunities and more exposure for this group.
For the second part, KOLs are often adopted as a marketing tool. They can serve as brand ambassadors, brand spokesmen/women, product spokesmen/women or regional ambassadors. As for any type, the collaboration is mainly product oriented.
As for the effectiveness of such collaboration, some are successful while some are not. For example, some celebrities, such as Xu Weizhou, known as one of the popular pretty boys or China’s “little fresh meat”, ranking No.1 for social influence, is ranked first among the bottom 10 in term of commercial value.
In other words, his influence or number of social media followers in not translated into sales, and therefore may not seem as a good investment from the brands’ perspective.
Therefore, it’s necessary for brands to do a little bit of a marketing research and investigation before choosing suitable KOL. Understanding their fans values, and being clear about their consumption capacity and preference are the most important factors brands should understand.
