Virtual Influencers in China: Opportunities & Challenges
China has become a leader in the virtual human market and has created effective methods for giving computer-generated characters life. These often AI-powered beings are transforming a number of industries, including marketing, entertainment, education, and customer service. They are also changing how we view and engage with virtual characters. These carefully constructed online personalities, also know as virtual celebrities, are becoming increasingly popular not just on major social media and e-commerce platforms such as Taobao or Tmall. Only in 2022, the number of virtual influencers across major Chinese social media platforms like Weibo (31%), Bilibili (28%), and Douyin (22%) increased fourfold.
This new development is a part of country’s wider AI digital revolution, changing the traditional definition of a celebrity endorsements and influencer marketing in China in general. The attraction of virtual idols, or e-celebrities, provides a fascinating glimpse into the future of marketing as companies look for novel ways to grab consumers’ attention.
- What is a virtual influencer and how are they different from human influencers?
- How big is the virtual influencer market in China?
- Who are some of the hottest virtual influencers in China?
- How are virtual influencers being used in the luxury goods market?
- What are some of the benefits of using virtual influencers for brands?
- What are some of the challenges of using virtual influencers for brands?
- What are some of the ethical concerns surrounding the use of virtual influencers?
Who are Virtual Influencers?
Brands are increasingly using CGI influencers (Computer-generated imagery) into their marketing efforts. We will look at both the opportunities and problems that come with developing a virtual KOL, as well as effective marketing efforts that emphasize the potential and diversity of these digital entities.
According to industry forecasts, AI-created virtual influencers market is set to rise dramatically, with a market size of 270 billion yuan expected by 2030. Notably, character-oriented virtual persons, who include digital influencers, idols, and live streamers, are estimated to account for an astounding 65% of the industry, worth 174.72 billion yuan.
Liu Yexi 柳夜熙
Early Examples of Virtual Influencers
A journey of virtual influencers in Asia began in 1998 with South Korean cyber-singer Adam, who earned a reputation as the first-generation virtual K-pop idol. Despite the poor 3D visuals of the time, Adam achieved great popularity, with CD sales exceeding 200,000 and the rise of a dedicated fan group. This pioneering example paved the way for the creation of virtual influencers into extremely realistic and interactive entities.
Another noteworthy example of virtual human technology was Imma (imma.gram). Pioneering the world of virtual fashion, Imma, a Japanese virtual model with a signature pink bob, debuted in 2018. Since then, she’s taken the fashion world by storm, collaborating with luxury brands like Dior and Bulgari.
China started developing its own famous virtual influencers already more than 10 years ago. While not the first in the traditional marketing sense, Luo Tianyi, a virtual singer created in 2012 using Vocaloid tech, was a trailblazer. Her immense popularity paved the way for a wave of virtual characters to come. In 2018, Poka Poka, considered one of China’s first homegrown virtual influencers, debuted as a fashion-forward “intern” with a unique style. Following suit, Tmall, the e-commerce giant, launched their own AI influencer, Aimee, in 2019, specifically focused on promoting luxury fashion brands.
How do virtual humans, like Tian Yu, come to live?
China’s booming virtual human scene has fostered a unique ecosystem where virtual human agencies play a critical role. These agencies act as the bridge between the digital world and reality for virtual influencers and models.
At the core of their function lies creation. Virtual human agency employs skilled artists, programmers, and engineers to design and develop virtual humans. This encompasses crafting the virtual persona’s entire existence, backstories, from their visual appearance and personality to their voice and mannerisms.
Once the persona is created, the virtual influencer agency takes on the role of manager. They handle the day-to-day operations, scheduling appearances, negotiating lucrative brand deals, and crafting engaging content for the virtual persona’s social media platforms and marketing campaigns. The agency essentially becomes the virtual human’s voice, interacting with brands, media outlets, and fans to cultivate a strong online presence.
Source: Tian Yu, Xiaohongshu
While these core functions are essential, some virtual human agencies in China offer additional services. They might have their own in-house technology for creating and animating virtual humans, allowing for complete control over the development process. Data analytics can also be employed to track the virtual human’s performance and optimize marketing strategies for maximum impact. Legal support may also be provided, ensuring the virtual human’s intellectual property rights and brand partnerships are protected.
As the virtual human industry in China continues its rapid growth, virtual human agencies are poised to become even more crucial. Their expertise in creation, management, and representation will be key in shaping the future of this innovative field.
Market Growth and Predictions
Chinese virtual influencer industry is experiencing explosive growth. The market size has skyrocketed by a staggering 285% in just between 2019-2022. The sector was estimated to be worth 36 billion yuan in 2023 and was set to reach the 300 billion yuan mark by 2030, driven by a powerful advantage: virtual influencers boast fan engagement rates three times higher than their human counterparts.
Fueling this growth is the enthusiastic embrace of virtual idols by Chinese netizens, with over 60% actively following these digital personalities. Looking ahead, the future seems even brighter. Predictions suggest China’s metaverse industry could reach a staggering US$8 trillion, with an estimated 37 million Chinese users expected to have virtual identities by 2025.
China’s Hottest Virtual Influencers in 2024
Among the most famous virtual influencers in China are Liu Yexi, Luo Tianyi, Ayayi, Tian Yu, Xi Jia Jia, and REDDI, . These digital personalities have successfully collaborated with renowned brands, captivating audiences with their unique personas and engaging content.
China's Virtual Influencers: Luxury's New Muses
Virtual influencers in China are making waves in the high-end market. These digital stars are proving their broad appeal and marketing muscle through successful partnerships with luxury brands. Take Ling, for example, who has collaborated with powerhouses like Bulgari and Tesla. She even served as Estée Lauder’s Gift Ambassador, demonstrating the seamless integration of AI influencers into traditional brand campaigns.
Ayayi, hyper-realistic avatar creation, is another shining example. Through strategic partnerships and brand collaborations, she has become a key player in China’s luxury marketing scene, representing prestigious brands like Bvlgari, Tissot, Louis Vuitton, and the list is expanding.
Luxury collaborations are just one piece of the puzzle. Also, the rise of virtual performers, often referred as vocaloids, has exploded in popularity, blurring the lines between reality and digital entertainment. From the captivating vocals of Chinese virtual singers such as Miro from Modern Sky released two years ago , to the electrifying stage presence of virtual idol groups and virtual bands, these digital stars are captivating audiences worldwide. These virtual concerts offer a unique and immersive experience, allowing fans to connect with their favorite performers in ways never before possible.
While virtual influencers dominate headlines with their brand partnerships, virtual models are quietly making waves in the fashion and e-commerce industries. These AI-powered creations grace product campaigns and online runways, offering brands a cost-effective and versatile solution. Unlike human models, virtual models can be effortlessly styled in any outfit, pose in impossible positions, and cater to diverse aesthetics, all without the limitations of physical constraints.
Ayayi’s brand collaborations
Source: AYAYI, Xiaohongshu
Virtual Anchors: China's Livestreaming Gamechangers
China’s livestreaming scene is exploding, and virtual anchors are at the forefront of this revolution. These AI-powered hosts offer brands a game-changing solution: 24/7, cost-effective alternatives to traditional human anchors. Live streaming has become a phenomenon in China. With an estimated value of over 740 billion USD and a user base exceeding 727 million, it’s the country’s most popular video format especially in social commerce. This massive audience has fueled explosive growth, with the number of streamers reaching a staggering 12.34 million in 2020 alone. Live streaming has transcended entertainment, becoming a social and economic powerhouse with the booming live commerce market.
Now, a new generation of hosts is joining the ranks: virtual anchors. This market is projected to experience exponential growth, surging from 300 million yuan in 2021 to a staggering 2.5 billion yuan by 2024. Brands are rapidly recognizing the potential of these tireless virtual hosts. Their 24/7 availability, reduced operational costs, and ability to engage audiences without breaks make them a highly attractive option.
Virtual anchors are more than just cost-effective solutions; they present distinctive opportunities to elevate consumer experiences. Leveraging advanced AI technologies, these digital hosts can offer customized product recommendations, effectively respond to consumer inquiries, and deliver branded content that aligns with individual preferences.
As China advances in the field of emerging technologies, virtual anchors are set to become increasingly sophisticated and immersive. The integration of 5G and the progression towards 6G networks will facilitate real-time rendering, seamless interactions, and an enhanced sense of presence, further blurring the lines between the virtual and the physical.
Calvin Chen's AI Clone Goes Viral (But Not for the Right Reasons)
Last September, a digitally created version of singer and actor Calvin Chen took the internet by storm with a 15-hour livestream. But there was a twist: it wasn’t actually Calvin. This AI clone, chomping down on chicken feet for his 9 million followers, was a computer-generated simulation.
While the concept grabbed attention, the execution fell flat. Chen’s audience wasn’t buying it. The perceived lack of effort and creativity sparked backlash, leading to a loss of 7,000 followers in just three days. Netizens accused Chen of laziness, with comments like “He doesn’t even have to go to work anymore,” and “Are you really that lazy you don’t even want to put in any effort to earn money anymore?”
Big players like Baidu, Tencent and Alibaba are innovating AI cloning technology, and even Xiaoice, Microsoft’s spin-off chatbot for China, has announced a program seemingly aimed at influencer and celebrity AI cloning.
Calvin Chen’s Livestream
Source: Weibo
Beyond e-Commerce - Cultural Preservation and Promotion
In China, virtual beings are significantly contributing to the preservation and promotion of the country’s extensive cultural heritage, beyond their use in business. These digital figures serve as modern-day custodians of tradition, from serving as virtual guides in famous museums to AI-driven presenters of traditional arts, effectively connecting historical narratives with contemporary audiences and ensuring the longevity of cultural relevance across generations.
The National Museum of China has teamed up with Tencent to introduce Ai Wenwen, a digital guide powered by AI, who can acquaint visitors with over 1.4 million historical artifacts. This inventive method not only improves the museum-going experience but also plays a crucial role in safeguarding and sharing the rich stories and knowledge associated with these cultural assets.
Moreover, the creation of virtual performers and presenters like Gu Xiaoyu and Qin Xiaoya aims to celebrate and spread the heritage of Song poetry and Qinqiang Opera to a worldwide audience. By utilizing the latest in technology, these virtual entities offer a new vantage point from which to appreciate these traditional art forms.
Ai Wen Wen
Source: National Museum of China, Douyin
Advantages of Virtual Influencers for Brands - Unmatched Creative Control
Virtual influencers are essentially blank slates, allowing brands to tailor their appearance, personality, and messaging to perfectly match their target audience and campaign goals. This flexibility provides unparalleled creative freedom in image creation, ensuring a consistent brand image that resonates with consumers.
Additionally, virtual influencers maintain a perpetually youthful appearance, eliminating the concerns about aging or changes in style that can occur with human influencers. This advantage protects brands from the risk of the influencer’s personal life impacting campaigns, and ensures a scandal-proof reputation.
Also, China’s gaming landscape is witnessing a metahuman boom. AI-powered personas are specifically designed to engage with gamers and elevate the overall entertainment experience. And unlike traditional player avatars, virtual idols boast unique personalities, voices, and backstories. They actively interact with fans through live streams, participate in in-game events, and even release AI-driven digital assets such as original music. This deepens the connection with gamers, fostering a sense of community and loyalty.
Ling is a popular virtual idol associated with the mobile game “Honor of Kings.” She is a swordswoman with a rebellious personality who frequently interacts with fans through live streams and social media.
Brands Take Control: The Allure of Virtual Influencers
For brands, virtual influencers hold immense appeal. Unlike their human counterparts, virtual influencers offer unparalleled control and consistency, eliminating the risks associated with human unpredictability and potential scandals that plagues some of top Chinese influencers in the recent years.
These digital stars can be meticulously programmed with specific skills and personalities, ensuring they perfectly embody the brand and resonate with the target audience. Brand messaging is always on point, as virtual influencers can be tailored to deliver specific messages and promote products or services seamlessly.
An additional advantage? Longevity. Unlike regular Chinese social media influencers who may age or experience personal challenges, virtual influencers remain eternally youthful and scandal-proof, providing a long-term and stable solution for brand endorsements.
The rise of virtual influencers in China’s gaming industry, with their captivating personalities and marketing potential, suggests a potential shift in brand strategies, perhaps jeopardizing human KOLs’ (Key Opinion Leaders) dominance. Are we going to see more brands leverage virtual influencer strategies in the near future?
Full Brand Control and Safety of Virtual Influencers in China
The rise of virtual influencers is partly due to their ability to maintain a flawless public image, crucial in markets like China where celebrity scandals can significantly impact brand perception.
By partnering with AI-powered ambassadors, companies can sidestep the potential pitfalls of human error and maintain a consistently positive brand image. This control extends beyond just the influencer themself. Brands can meticulously manage the entire aesthetic and messaging associated with the campaign, further minimizing the risk of any negative publicity.
Cost-Effectiveness and Scalability
Creating a virtual influencer is a significant initial investment but offers potential long-term cost savings compared to traditional celebrity endorsements. Virtual influencers can engage with an audience 24/7 across multiple platforms without additional costs incurred from human influencers, such as travel and scheduling conflicts. This scalability makes them particularly attractive in the competitive digital marketing space. Furthermore, the ability to reach diverse demographics without geographical limitations enhances their appeal to global brands seeking to maximize their China market reach.
The Dark Side: Ethical Concerns with Virtual Influencers
The rise of virtual influencers is undeniable, but with great power comes great responsibility. As these digital personas permeate society, ethical considerations and regulations become crucial. Several key concerns demand attention. First, there’s the issue of data privacy. How is user data collected and used when interacting with virtual influencers? Transparency is also paramount. Are brand partnerships clear for consumers? Finally, the potential for unrealistic ideals is a growing concern. Do virtual influencers promote unrealistic body standards or idealized lifestyles, potentially impacting young viewers’ self-esteem? Addressing these issues is critical to safeguard consumer well-being, particularly among impressionable youth audiences.
Virtual influencers also operate within a complex legal framework. Issues such as copyright protection, trademark enforcement, and the ethical use of AI-generated content pose significant challenges. Without clear legal guidelines, the commercial value of virtual content could be diminished through unauthorized use or reproduction.
China Leads the Way in the AI Regulation
Recognizing these challenges, Chinese regulatory bodies are taking a proactive stance. Potential measures include mandating clear disclosure of virtual influencer partnerships and establishing clear guidelines for ethical content creation by virtual influencers in China. Additionally, implementing safeguards to protect vulnerable populations, like young people, from potential negative impacts is a priority.
By addressing these issues and establishing clear regulations, virtual influencers can continue to be a powerful marketing tool while ensuring consumer safety and responsible development.
Consumer Authenticity Concerns
Despite the appeal of virtual influencers, there are significant concerns about their ability to form authentic consumer opinions. This skepticism stems from their perceived perfection, which can set unrealistic beauty standards and create social pressure.
While virtual influencers can be visually appealing, they may struggle to connect with audiences on an emotional level. Consumers might perceive them as lacking genuineness, especially compared to relatable human influencers. Moreover, current virtual influencer technology might restrict their ability to have natural, interactive conversations with followers. This can make real-time engagement and response to comments more challenging.
High Production Costs
The financial burden of creating and maintaining a virtual influencer is substantial. Initial development costs can range from several hundred thousand to over three million RMB. All depending on whether the influencer is agency-recruited or independently developed. Furthermore, ongoing expenses, such as producing short video content featuring virtual idols, can be exorbitantly high. Such videos can cost between RMB 8,000-15,000 per second.
Psychological Impact on Youth of Virtual Influencers in China
The psychological impact of virtual influencers on Chinese Gen Z is a complex and multifaceted issue. Compared to their Western counterparts, China’s younger generations appear to be embracing generative AI with few reservations. Over 60% of the young Chinese surveyed said they either “like” or “love” generative AI. Fewer than 3% said they “dislike” or “hate” it.
While these AI-generated personas offer a sense of novelty and creativity, concerns arise regarding their potential to promote unrealistic body standards, idealized lifestyles, and the authenticity of their endorsements.
Research indicates that a significant portion of Chinese youth, particularly those under 30, report being influenced by virtual influencers’ promotions on video and live streaming platforms. This influence extends to purchasing decisions, with a majority of respondents admitting to buying endorsed products, especially clothing and cosmetics.
As these digital tastemakers continue to gain traction, it is crucial to examine their impact on the psychological well-being and decision-making processes of young consumers. Promoting responsible consumption, ensuring transparency, and protecting vulnerable groups should be prioritized to mitigate potential negative consequences of virtual influencer aesthetics.
Future Prospects and Trends
Leading tech giants in China, such as Baidu and Tencent, are investing heavily in developing platforms and infrastructure to facilitate the creation and deployment of virtual humans. These efforts aim to streamline the production process, reduce costs, and enable a wider range of applications across various industries.
Expansion to Global Markets
Virtual influencers are poised to transcend geographical and cultural barriers, offering brands a unique opportunity to engage with global audiences. With the ability to speak multiple languages and adapt to different cultural contexts, VIs like Lu do Magalu have already garnered significant followings across diverse regions. This global appeal is critical for brands aiming to expand their reach and connect with consumers on an international scale.
The Role of AI and Technology
Advancements in AI and technology are set to enhance the realism and interactivity of virtual influencers. While anime characters continue to be a popular choice for some virtual influencers, hyper-realistic digital personas enter the arena. They captivate audiences with their near-lifelike appearances, pushing the boundaries of virtual representation.
Future VIs may interact with the physical world through robotics and augmented reality. This can provide even more immersive and personalized experiences for users. As AI technology continues to evolve, these digital personalities will become increasingly sophisticated, blurring the lines between virtual and reality.
Predicted Impact on China Influencer Marketing
The integration of digital idols in marketing strategies will most likely become a standard practice by 2025. It will have a significant impact on virtual influencer marketing and perhaps even whole fashion industry.
Brands will leverage the consistency, aesthetic appeal, control, and cost-effectiveness of VIs to execute innovative campaigns, enhancing engagement and minimizing the risks associated with human influencers. As the technology matures, the ethical and cultural implications of using virtual ambassadors will require addressing to maintain transparency and trust with consumers.
Virtual Influencers in China: A Disruptive Force with a Promising Future
Virtual influencers in China have transcended mere novelty status. They’re a disruptive force across industries, from revolutionizing marketing and music to propelling e-commerce forward. Offering brands a cost-effective and scandal-proof solution, personalities are weaving emotional intelligence into online shopping experiences. However, their creation and upkeep aren’t without challenges.
The initial investment to create a virtual influencer can be substantial, reaching millions of RMB. Ongoing content production also carries a significant financial burden. This raises concerns about the long-term viability of this high-risk, high-reward market.
Despite these hurdles, the future of virtual influencers remains bright. Advancements in AI, Web3 and development of digital worlds, promise to enhance their sophistication and emotional intelligence. This will pave the way for more nuanced interactions and wider acceptance. However, ethical and cultural debates will undoubtedly evolve alongside this technology. Transparency and cultural sensitivity must remain at the forefront as virtual influencers navigate this complex landscape.
In the ever-expanding digital ecosystem, particularly metaverse, brands must develop clear strategies to leverage the power of virtual influencers. This ensures they’re not only cost-effective but also ethically sound marketing tools. By navigating these considerations, brands can unlock the immense potential that virtual influencers hold in China’s ever-evolving virtual influencer landscape.
Virtual Influencers in China: FAQ
A virtual influencer (VI) is a computer-generated character designed to look and act like a real person. VIs have social media accounts, post content, and collaborate with brands just like human influencers.
Teams of artists, programmers, and engineers work on virtual influencers. They design the VI’s appearance, personality, voice, and backstory.
VI agencies manage the virtual influencer’s career. They handle social media accounts, schedule appearances, and create content. VIs can promote products, host livestreams, and interact with fans.
- Liu Yexi (beauty blogger)
- TianYu (celestial maiden)
- Ayayi (fashion and luxury)
- Ling (luxury and gaming)
Virtual influencers are a hit with brands: they generate excitement with fans. They maintain a flawless image and can be tailored to fit any campaign. All at a lower cost than human influencers.
Launching virtual influencers can be expensive, with ongoing content creation costs. Plus, building trust with fans might be tough, and unrealistic portrayals raise ethical concerns.
The VI market will most likely grow rapidly. Advancements in AI will make VIs more realistic and interactive. They will likely become a standard marketing tool across various industries.
