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Virtual human livestreaming is a new trend in China’s e-commerce sector, where digital hosts sell products to millions of online shoppers. This is a way for retailers to innovate and monetize in a slowing economy, as well as to differentiate themselves from competitors.
How virtual human livestreaming works
Virtual human livestreaming is the use of digitally created humans to host live video sessions, where they showcase and promote various products. These virtual hosts can be either avatars that represent real human hosts, or completely synthetic beings created from scratch.
They are powered by artificial intelligence (AI) technologies, such as natural language processing, computer vision, and deep learning. Some of them can even interact with viewers and answer their questions.
Virtual human livestreaming is not only cheaper and more scalable than hiring real human hosts but also more appealing and engaging for some consumers, who may prefer the novelty and variety of digital personalities.
The rise of virtual human livestreaming in China
China is the global leader in livestreaming e-commerce, a phenomenon that has exploded since the onset of the Covid-19 pandemic in early 2020. According to McKinsey, livestreaming e-commerce saw sales surge by 19% during the latest Singles Day shopping festival in November 2020, while sales via traditional e-commerce dropped by 1%.
Livestreaming e-commerce is a form of online shopping where live video hosts, often celebrities or influencers, showcase and sell products to viewers in real-time. It combines entertainment, social interaction, and convenience, creating a more immersive and interactive shopping experience.
Some of the most popular livestreaming hosts in China, such as Austin Li and Viya, have become household names and earned millions of dollars through commissions and tips.
However, as the market becomes more saturated and competitive, retailers are looking for new ways to stand out and attract customers. This is where virtual human livestreaming comes in.
The examples of virtual human livestreaming in China
During the 2020 Singles Day, several Chinese tech giants and e-commerce platforms launched or showcased their virtual human livestreaming products, featuring digital hosts that sold everything from cosmetics to electronics.
For example, Tencent has a product that can create a virtual avatar from a three-minute video and 100 spoken sentences of a user. The company also has a “Zen Video” platform that allows users to create simple promotional videos with a virtual human spokesperson.
JD.com, one of China’s largest online retailers, has a virtual anchor product called Yanxi, based on its own AI model. The product was used in livestreaming sessions for more than 4,000 brands during Singles Day, with one virtual streamer broadcasting for 28 hours straight.
Baidu, China’s leading search engine and AI company, has a virtual human livestreaming product called Huiboxing, which was used for the first time on its “Youxuan” e-commerce platform during Singles Day. The product claims to have run 17,000 streams from Oct. 20 to Nov. 11, generating more than 3 million yuan ($420,000) in gross merchandise value (GMV) for electronics giant Suning on a single day.
Huiboxing is based on the large language model behind Baidu’s Ernie bot, which can generate multiple livestreaming scripts in an instant using big data, said Wu Chenxia, head of Huiboxing.
The challenges and opportunities of virtual human livestreaming in China
Virtual human livestreaming is not without its challenges and risks. For one thing, it is subject to China’s strict regulation on content, which may limit its scope and creativity. For another, it may face ethical and social issues, such as the authenticity and trustworthiness of the digital hosts, and the potential impact on human hosts and their livelihoods.
However, virtual human livestreaming also offers many opportunities and possibilities for the future of e-commerce and entertainment. For instance, it may enable more personalized and customized shopping experiences, as well as a more diverse and inclusive representation of hosts and consumers.
Moreover, virtual human live streaming may pave the way for more advanced and immersive technologies, such as 3D and holographic livestreaming, which could revolutionize the online shopping experience.
Joe Wang of Huawei’s ICT department said that 3D livestreaming may be a reality in about two years, thanks to the development of 5.5G and AI technologies. 5.5G is expected to increase download speeds by 10 times and upload speeds by two to three times compared to 5G, which is already enabling livestreamers to broadcast outdoors or simultaneously on multiple platforms.
The future of virtual human livestreaming in China
Virtual human livestreaming is not a hype, but a trend that is here to stay, according to Daniel Zipser, senior partner and leader of McKinsey’s Asia consumer and retail practice.
He said that businesses are shifting from using influencers, known as KOLs in China, to in-house livestreamers, whether they are real or virtual. This is a clear indication that livestreaming is something that companies are embracing and putting resources behind, he said.
Virtual human livestreaming is a new frontier in China’s e-commerce sector, where digital hosts sell products to millions of online shoppers. It is a way for retailers to innovate and monetize in a slowing economy, as well as to differentiate themselves from competitors. It is also a glimpse into the future of online shopping, where AI and 3D technologies may create more immersive and interactive shopping experiences.
