Paying for the dumping “god of livestream” dumping: Customers are psychologically manipulated, the brand takes too much risk!

Tram Ho

Selling via livestream (live broadcast) is currently one of the most powerful marketing channels. Although livestream helps to diversify shopping experiences and grow strongly in revenue, it also entails a lot of problems around.

More and more brands cooperate with KOLs, KOCs (influencers) to broadcast live and sell products. This is also a prominent marketing trend that businesses will spend money on in 2023. But accordingly, some brands also face unpredictable risks that these KOLs and KOCs carry. Just a single word of mouth can cause terrible media influence.

Lack of authenticity

As collaboration between brands and influencers explodes, consumers begin to feel overwhelmed with advertising. They question the authenticity of KOLs, as even bread sellers can market products that have nothing to do with them. Brands themselves tend to see KOLs as advertising signs, painted based on the personality of each person. Accordingly, KOLS tend to sacrifice authenticity in the face of community pressure. Sometimes, they are also forced to say and share things they don’t really believe in, just to please their viewers and maintain a good engagement rate. Once this truth is exposed, the level of consumer trust in that brand almost has to return to the original starting line.

Risks of hiring dumping KOLs

Not a few brands today choose to dump to increase the conversion rate. They choose to follow the market, accept to hire artists, livestream KOLs “lower prices” to sell products. This action attracts a lot of buyers to participate. According to statistics, the recent livestream campaigns of some e-commerce platforms only need to spend very little, but the effect is huge. Everyone thought it was a lucrative piece of cake, but did not expect that behind it were the floors that burned a lot of money, pushing interaction to KOLs for viewers to buy and interact. The main purpose is to entice fledgling brands to participate in this dumping game.

Thao túng tâm lý bằng "giá thấp nhất" trong các buổi livestream bán hàng: Rủi ro khi thuê KOL bán phá giá - Ảnh 1.

Risks of dumping livestream (Artwork)

But the story doesn’t just stop at the terrible amount of goods consumed after a livestream session. The consequences behind that brands have to suffer are: High liquidation and return rates, breach of price contracts with suppliers affecting consumption, or sometimes getting involved in some groves The scandal damages the reputation of the brand. In this case, the brand may suffer some of the following consequences:

– Inventing the original price, then increasing and lowering the price without control, causing the product to be discredited.

– Failing to comply with price commitments with 3rd parties.

– Making false statements about selling prices lower than other parties, enticing consumers to make transactions, and affecting competitors.

These moves can push a brand out of the game.

KOLs are involved in a scandal that directly affects the reputation of the brand

There are many brands that have had to taste the blood of these media marketing campaigns. When signing a cooperation contract with KOLs, almost the brand will not receive a commitment to maintain the image or compensate the contract at the end of the campaign. Once these influencers get involved in scandals, or unsavory rumors, it will directly discredit the range of products they have received marketing. This not only makes the number of new customers reach less and less, but also the boycott of old customers. This is also a problem that many brands do not know how to solve satisfactorily!

“Fake” images cause adverse effects on consumers’ mental health

Some of these KOLs, KOCs tend to hide their real image. They use edited bodies and faces, fake positivity and happiness to blind the viewer. Many KOLs are willing to manipulate viewers through these. The closer the distance between content creators and consumers, the more susceptible they are to suggestion and manipulation. Marketing from KOLs has also been criticized for promoting a hedonistic consumer society that confuses users when making shopping decisions. Each partnership, if not officially announced, can motivate followers to buy any product or service they don’t really need.

All social media marketing exposes brands and consumers to a number of different negative issues. This reminds brands to be more careful in cooperation, and consumers to be more informed in each of their shopping decisions!

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Source : Genk