What Should Be Done to Standardize Internet Celebrity Marketing?

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  The boom of live-streaming video and e-commerce platforms in China has attracted many social influencers, or Internet celebrities, to advertise certain brands and products. The number of influencers and their fans is surging. In 2018, sales based on livestreaming marketing amounted to more than 100 billion yuan ($14.3 billion), up by almost 400 percent year on year. Infl uencer marketing is making itself a force that can’t be ignored.
  However, a growing number of cases of influencers making fools of themselves while advertising products are shedding light on a pressing issue. While reaping huge profits, some influencers are turning a blind eye to the quality of the products they are pitching. For example, online celebrity Li Jiaqi, who once sold 15,000 lipsticks within fi ve minutes and was dubbed “the king of lipsticks,” met his Waterloo in a recent live stream when promoting a non-stick pan. The audience could see that the fried egg was fi rmly sticking to the pan. This and other incidents of Internet celebrity marketing have sparked heated discussions online and in many media outlets.
  Some people believe that in the era of the Internet celebrity and fan economy, infl uencer marketing is actually not to blame, but there must be a bottom line for what can and cannot be done. Some others view this incident and the sensation it has caused as an opportunity for this business to be standardized.

Quality before profit


  Huang Qizhe (Wen Wei Po): The emergence of online shopping has given rise to the new phenomenon of Internet celebrities selling goods during their live-streaming shows. Can Internet stars’ popularity be turned into commercial benefi ts? The answer is yes. Consumers’love for Internet stars will easily persuade them to purchase things that their idols are pitching. However, while reaping huge profi ts, these stars and the platforms that they operate on should also take responsibility for their behavior, lest consumers be misled. Otherwise, the business will not last long. The problem now is whether their sense of responsibility has also risen in accordance with the booming business.
  Compared to movie stars making eyepopping amounts of money by acting as ambassadors for certain brands, what Internet stars do is more like getting a commission from marketing. Influential cyber stars can get a commission as high as 20 percent of the sales.
  Whether they will carefully discern and choose quality products as they are lured by high profi ts remains a question. Presently, this depends on their conscience.   In some extreme cases, some cyber stars even pitch products and brands without basic quality certifi cates. These products are rejected by the media, but they are praised and endorsed by these stars during their live-streaming shows. In addition, the language used in live streaming should fall under the Advertising Law and not be exaggerated.
  Fans or ordinary consumers will buy something because of an Internet star’s glamor and blandishments at fi rst, but in the long run, what appeals to consumers is the quality of products and the credibility of brands. There is no lack of examples of Internet stars being rejected by fans and consumers for selling low-quality or fake products. Therefore, given these lessons, Internet stars or blogebrities should refrain from making money at the expense of this industry’s credibility and future prosperity.
  Wang Han (Beijing Youth Daily): Before pitching a certain brand, a full understanding of the brand is a precondition, and social infl uencers are no exception. Compared to conventional commercials, Internet stars can easily turn their fans into consumers. Lured by high commissions, more and more stars are becoming open to whatever products come their way, and given this fact, it’s only natural for the product to fail in the middle of a live-streaming show. Whether they are famous movie stars in traditional commercials or cyber stars, they all need to take accountability for the products and brands they pitch in accordance with the E-Commerce Law and the Advertising Law.
  Influencers usually know a lot about a certain kind of product and are equipped with corresponding professional knowledge. They gain credibility in this way and gradually become guides for consumers. To be an expert does not mean that they can make use of their identity to endorse certain products regardless of the facts. Consumers never lack in choice of what to buy, but cyber stars’ credibility will soon run out if they continue to squander it.

A lesson to learn


  Jiang Meng (www.people.com.cn): Consumers are unlikely to try everything before making a purchase, and usually shop based on key opinion leaders’ introduction to a product. Infl uencer marketing has begun to prosper. The question now is whether these infl uencers are really professional and capable of telling the good from the bad among so many types of commodities. In most cases, infl uencers don’t purchase the commodities that they pitch, but are given them by the manufacturers. So, despite their plaudits, it’s quite possible that there is some kind of interest connection between influencers and those behind the screen.   The delicate relationship between social infl uencers and their fans is making the situation even more complicated. To rely on influencers’conscience or their sense of responsibility to their fans is not enough to correct fraud or other bad deeds in the industry. It’s not enough to generally demand that e-commerce and Internet livestreaming platforms regulate themselves, either.There must be strict supervision and discipline imposed on these business operations, which will require those who violate regulations to pay the price.



  At the current stage, despite regulations in the Advertising Law and the E-Commerce Law, in the specifi c case of Li’s debacle, nothing happened to him except that his agency issued an apology, claimed to have heeded the warning from it and promised to implement stricter management. But will they really learn a lesson and improve their behavior in the future? If there is undue tolerance of the problems related to infl uencer marketing in the nascent stage, more serious issues may emerge in the future. It’s hoped that the watchdogs will pay more attention.
  Li Zining (www.rednet.cn): The booming Internet celebrity economy is not only creating wealth but also all kinds of messes. The incident with Li actually epitomizes the free and unchecked growth of online infl uencer marketing. The bottom line of this practice is morality and conscience, while the red line is relevant laws and regulations. The red line should have been the basic principle, but all kinds of pufferies and advertising for fake products are widely seen online. All this is chipping away consumers’ trust in social influencers. If this trend continues, not only will the Internet celebrity economy be negatively impacted, but the whole e-commerce industry will be prevented from healthy development.
  Given the rapid development of Internet celebrity marketing, it’s quite possible that similar incidents will happen. It’s necessary for the authorities to steer the industry toward a standardized and healthy road through the establishment and improvement of laws and regulations to put influencer marketing under strict supervision. Live-streaming platforms should take more responsibility to match the huge profi ts they have earned online. There must be a strict threshold for influencers and an effi cient reviewing and management mechanism. In order to avoid failures in commodity pitching, social influencers should refuse low-quality products and not mislead or fool consumers. Consumers also have something to do. For example, they should report irregular influencer live-streaming marketing to watchdogs. To create a good e-commerce environment and avoid embarrassing hitches while live streaming, all parties should do something.   These live-streaming failures can serve as a wake-up call to influencers and make the authorities take measures to standardize the industry. To avoid embarrassment, social influencers who are interested in advertising for certain brands have to standardize their behavior. As for netizens who are in the midst of a shopping spree stimulated by influencers’ pitches, the numerous reports on suspect infl uencer marketing should make them think twice before rushing to buy. Instead they should tighten their purse strings. To some extent, frequent failures in infl uencer marketing will help to standardize the e-commerce business in China.
  The fact that top social infl uencers’ failures have stirred up a sensation, becoming a target of so much media criticism, shows that social influencers’ false marketings are no longer isolated instances and it’s time to regulate the industry. If lessons can be learned from those incidents and the Internet celebrity economy can be standardized, then the cases will be a catalyst for correction.
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