Technology is reshaping how businesses connect with consumers in the evolving landscape of e-commerce. One groundbreaking innovation is the use of virtual humans—AI-powered digital avatars that are transforming e-commerce marketing. These virtual beings offer an engaging, cost-effective way to market products, driving sales and enhancing customer interaction.
The Rise of Virtual Humans in E-Commerce Marketing in China
Virtual humans have become a significant force in e-commerce marketing. These AI-driven avatars replicate human behavior and appearance with remarkable accuracy, providing a dynamic and interactive shopping experience. By utilizing advanced AI technologies, companies can create lifelike digital hosts that engage with customers in real-time, significantly enhancing the marketing potential of online platforms.
A prime example of virtual humans’ marketing prowess is the digital avatar of Liu Qiangdong, founder and chairman of JD.com. In April, Liu’s virtual counterpart appeared in livestreaming sessions to promote a variety of products. Nicknamed “procurement and sales manager Brother Dong,” this digital host showcased items ranging from groceries to electronics, all while mimicking Liu’s mannerisms and voice. The result was a marketing triumph: over 20 million views within the first hour and 50 million yuan ($6.9 million) in sales during the broadcast.
Personalized Marketing and Customer Engagement
The use of virtual humans in e-commerce marketing is not just a novelty; it’s a strategic tool for enhancing customer engagement. These digital avatars can adapt dynamically to various livestreaming styles and respond to frequently asked questions, creating a personalized shopping experience. For instance, Liu’s avatar discussed healthy diets, cooking tips, and fitness routines, adding a personal touch that resonated with viewers and strengthened the marketing message.
Cost Efficiency and Marketing Impact
One of the key marketing advantages of virtual humans is their cost efficiency. Traditional livestreaming requires significant investment in human hosts, equipment, and production crews. Virtual hosts, however, can reduce these costs by up to 90%, allowing brands to allocate more resources to other marketing initiatives. Additionally, virtual humans can operate 24/7, maximizing marketing reach and sales potential without the need for breaks.
Boosting Sales and Conversion Rates
Virtual humans have a proven impact on sales and conversion rates. JD’s AI-powered virtual livestreamers have promoted over 4,000 brands, leading to a 30% increase in order conversion rates during off-peak hours. This boost is attributed to the avatars’ ability to offer tailored product recommendations with a 90% accuracy rate, providing a highly effective marketing tool for e-commerce platforms.
Expanding Marketing Horizons
As technology evolves, the applications of virtual humans in e-commerce marketing continue to expand. Major e-commerce platforms like Alibaba’s Tmall and Taobao have launched AI virtual models to provide personalized shopping experiences. These platforms utilize digital humans for real-time broadcasting campaigns, further enhancing customer engagement and driving sales through innovative marketing strategies.
Investment in Video Content Creation
Recognizing the marketing potential of virtual humans, companies are investing heavily in video content creation. JD.com, for example, announced a 1 billion yuan investment in this area, highlighting the company’s commitment to leveraging short videos and livestreaming to improve the online shopping experience and create new growth avenues for brand merchants.
Staying Competitive with Virtual Humans
For brands looking to stay competitive, incorporating virtual humans into their marketing strategies offers a distinct advantage. These digital hosts not only reduce costs but also appeal to digital-savvy and novelty-seeking consumers. Furthermore, virtual humans eliminate the risk of celebrity scandals, providing a reliable alternative for brand representation.
The integration of virtual humans into e-commerce marketing marks a significant advancement in the industry. As AI technology continues to advance, the capabilities of these digital avatars will improve, offering even more personalized and engaging shopping experiences. For brands, leveraging virtual humans presents an opportunity to drive sales, enhance customer engagement, and maintain a competitive edge in the e-commerce market.
