Risk Management is the Main Driver of Investment in Virtual Influencers in China

In 2021, a Chinese blogger sold $1.7 billion in goods during a 12-hour stream. Last summer 2022 he suddenly disappeared.

This is not an unprecedented case. A person for something scandalous in China can even be cut from the information field as if he never existed. How should brands respond to this? Make investments in virtual Influencers, of course.

According to the Financial Times, foreigners are now taking a huge interest in virtual Influencers in the Chinese market, to eliminate the risk of damaging their reputations. Local corporations are the same, but in addition to their own needs, they are also motivated by external demand in developing the market for digital people.

How can this experience be useful in territories outside China?

In different parts of the world, we see a cancel culture growing in one form or another. Because of personal opinion and beliefs any Influencer can be removed from the public space. As a consequence, this also causes financial and reputational losses for brands. To minimize them, decisions made in the Chinese market become relevant outside its borders as well.