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How to work with Red Influencers in China ? Livestreaming & KOCs.

Online marketing in China is different from any other place in the world. Cost-per-click or CPM ads play a smaller parts in the advertising mix. Instead, influencers are an essential marketing tool in China. Small influencers (Key Opinion Customers or KOCs) are particularly essential. Let’s learn how to leverage KOCs to boost your business in China.

Livestreaming campaigns

Live-streaming campaigns are the most direct approach to work with Red influencers to generate sales.

Requirements

How much do they cost ?

Livestreaming campaigns are charged based on a commission on revenue (ranging from 5% to 25%)

Commission Fee = (GMV- Refund) x Commission rate

How to launch a Red Live-streaming campaign

  1. Log in
    Use your brand’s Xiaohongshu account to access the PGY platform. (https://pgy.xiaohongshu.com/)
  2. Choose a KOL
    Browse and select the right influencer based on their profile and performance data.
Influencers can be selected directly from Red backend
  1. Send Invitation
    Initiate a collaboration by sending an invite directly through the platform.
  2. Set Livestream Commission
    Define and input the commission amount or fee for the KOL. Normally, the brand will set up 5% – 25% commission for KOLs
  3. Place Order & Collaborate
    Confirm the collaboration and complete the order for the livestream session.
  4. Track Campaign Data
    Monitor performance and sales metrics in real time through the platform’s dashboard.

A case study of Red Livestreaming : Ralph Lauren

Ralph Lauren cooperated with Top KOL Darrrrcy. The campaign generated 80+ orders with 36k+ RMB GMV. The estimated refund rate was around 30%, and estimated commission rate was 25%. Then,

Unfortunately, this case study highlights the high refund-rate for Red campaigns. However, as the commission is not applied to these refunds, they don’t impact campaign cost besides potential logistics costs (though many of these refunds might happen before the products are sent out).

Key Opinion Customers

Key Opinion Customers are small influencers with less than 1,000 followers. They can be essential in building an impression of consensus for your brand through repeated exposure. There are two main tools to leverage KOC’s content via Xiaohongshu: KoubeiTong and Collaboration Codes.

KoubeiTong (口碑通)

KoubeiTong (口碑通) is a tool that amplifies high-quality UGC posts officially recognized by the platform. Red tends to consider posts as high-quality if they feature major brands, so this tool might be harder to use for smaller brands.

The Koubeitong backend

Xiaomi: a KoubeiTong case study

The electronics brand Xiaomi used KoubeiTong to promote their products. They reported impressive improvements in metrics compared to their regular ads/online marketing:

Collaboration Codes (合作码)

Collaboration Codes (合作码) are a low-barrier solution that empowers small-scale creators (under 1,000 followers) to participate in brand campaigns through verified original posts. Here brands have to proactively contact Key Opinion Customers to get a collaboration code.

Once the code is obtained, it will enable the brand to run an “official” campaign with the KOC, which will make sure the post gets maximal exposure and can be boosted via ads budget.

Conclusion

In China, working with influencers is not as easy as just contacting an influencer and running a campaign. Campaigns need to be whitelisted by Red to get exposure and so they can be boosted with ads. Depending on the size of influencers and the type of campaigns you want to run, it is important to pick the appropriate tool in Red’s toolbox to get maximal exposure.

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