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Virtual Humans Revolutionising E-commerce in China
JD.com utilises AI-powered virtual hosts to promote products and drive sales in livestreaming sessions. Virtual hosts have contributed to a 30% increase in order conversion rates during off-peak hours. Livestreaming costs are reduced by 90% compared to using human hosts.
This digital doppelganger, powered by JD's advanced language model ChatRhino, made its debut in April, appearing in livestreaming rooms to promote a wide range of products, from groceries to electronics.
The virtual avatar of Liu Qiangdong, affectionately nicknamed "procurement and sales manager Brother Dong," stunned viewers with its uncanny ability to replicate Liu's facial expressions, body language, gestures, voice, and accent. It even captured the subtlest movements of his fingers. Within the first hour of its appearance, the virtual Liu generated over 20 million views and drove a staggering 50 million yuan ($6.9 million) in sales during the livestreaming sessions.
But the virtual Liu is not just a sales pitch. He also shares his personal insights on healthy diets, cooking experiences, fitness, and exercise methods. Equipped with 50,000 hours of voice data, JD's LLM technology allows the digital avatar to intelligently adapt to different livestreaming styles and answer up to 70 percent of frequently asked questions during a session.
JD.com is not alone in embracing AI-powered virtual hosts to boost e-commerce sales. Chinese online retailers and tech companies are increasingly leveraging digital humans in their livestreaming campaigns. These virtual anchors have already promoted over 4,000 brands, resulting in a 30 percent increase in order conversion rates during off-peak hours. They have also helped merchants reduce livestreaming costs, enhance operational efficiency, and optimise user experience.
The benefits of using digital avatars are evident. When prompted by customers, these virtual hosts offer tailored product recommendations with an impressive 90 percent accuracy rate. Moreover, hosting livestreaming sessions with virtual hosts reduces costs by a staggering 90 percent compared to using human hosts.
Recognising the potential of this technology, JD.com recently announced a 1 billion yuan investment in video content creation. This move underscores the company's commitment to leveraging short videos and livestreaming to enhance the online shopping experience and create new growth opportunities for brand merchants.
The livestreaming e-commerce sector in China is booming. According to data from iiMedia Research, revenue from livestreaming e-commerce reached 1.7 trillion yuan last year, marking a 16 percent year-on-year increase. Experts predict that this figure will reach 2.14 trillion yuan by 2025. The virtual human market in China is also set to soar, with forecasts indicating it will reach 270 billion yuan by 2030.
While the application of virtual hosts in livestreaming e-commerce is expected to experience rapid growth, challenges remain. Improving the interaction between virtual anchors and users, as well as understanding user demands more precisely during livestreaming sessions, are key areas for development.
Other major e-commerce platforms, such as Tmall and PDD Holdings, have also embraced the use of digital humans in livestreaming activities. Tmall, Alibaba's business-to-customer e-marketplace, has introduced AI virtual models to provide users with a personalised shopping experience. PDD Holdings has successfully attracted a large number of users through product introduction events hosted by digital human anchors.
The adoption of virtual hosts by B2C brands is on the rise, as they offer a cost-effective alternative to human hosts and eliminate the risk of celebrity scandals that could tarnish brand image. Global consultancy Forrester highlights the appeal of virtual hosts in attracting digital-savvy and novelty-seeking young consumers.
JD.com utilises AI-powered virtual hosts to promote products and drive sales in livestreaming sessions.
Virtual hosts have contributed to a 30% increase in order conversion rates during off-peak hours.
Livestreaming costs are reduced by 90% compared to using human hosts.
Source: CHINA DAILY