South Korean Firms Resume KOL Marketing in China as THAAD Tensions Cool Off
Xu Wei
DATE:  Nov 17 2017
/ SOURCE:  Yicai
South Korean Firms Resume KOL Marketing in China as THAAD Tensions Cool Off South Korean Firms Resume KOL Marketing in China as THAAD Tensions Cool Off

(Yicai Global) Nov. 17 -- Chinese internet celebrities are becoming less wary about endorsing South Korean products as tensions over the Terminal High Altitude Area Defense (THAAD) system simmer down, South Korean newspaper Aju Business Daily reported.

Shinsegae, one of the South Korea's 'big three' department stores, invited Chinese cyberstars to take part in a Christmas tree decoration event outside its flagship store in Seoul on Tuesday and broadcast the event on Weibo, the Chinese social media platform run by Weibo Corp. [NASDAQ:WB]. Duty-free shops in Silla also made a promo video on the brands and discounts on offer in the stores which featured two internet celebrities from China who have a combined 1.5 million social media followers.

Online celebrities who use their status to endorse and promote products are known as key opinion leaders (KOL). They help firms market effectively by connecting and relating to audiences and coming across as more 'real' than mass marketing.

Last December, Busan City Hall arranged a tour for three travel agency representatives and key opinion leaders from China, who live-streamed the tour and attracted millions of views and interactions. The city already has plans to invite the online stars back for another tour this year.

However, bilateral relations aren't fully back on track yet. China's online celebrities are still cautious about appearing in South Korean marketing events. One Korean cosmetics firm held a press briefing on Oct. 26 with 42 Chinese KOLs in attendance. Before the meeting, the organizer has to warn reporters not to ask any political questions. Considering the current relationship between the two nations, the firm did not want to encounter any hiccups during the event, an informed source said.

Nobody yet knows when the number of Chinese tourists in South Korea's duty-free shops will return to normal levels, but the overall business climate has improved to some extent, a market insider told the newspaper. Companies have restarted Chinese marketing campaigns and are closely monitoring changes in the market place, he added.

The newspaper earlier reported that hiring Chinese web stars to broadcast their shopping tours in South Korea had proved a successful marketing technique for companies in the country.

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Keywords:   Internet Celebrities,Live Streaming,Terminal High Altitude Area Defense,THAAD,South Korea