Examples of AI marketing in China and how it is becoming mainstream

Marketeers have been flirting with AI for some years now, but it wasn’t until last year when it became a part of most marketing conversations in China. This year is looking to be the year when most brands have incorporated some form of it into their marketing plans.

Early adopting brands in China have been all over AI with everything from robotic chefs to delivery robots, to AI-enhanced in-store experiences and utilising AI-powered brand health tracking and analysis . China’s largest PR firm shocked many last April, when it announced it would be bringing copywriting and designing in-house with the help of AI . It seems much more normal now.

Some of the most straightforward applications of AI in China are utilising services available through platforms such as Tmall and JD. These platforms are typically ahead of the curve and with innovations, and have more data than anyone that canto be used to fuel machine learning. They offer customers convenience such as personalised product recommendations and voice search optimisation, and offer brands a number of AI tools to enhance performance and improve their customer experience.

As Holland & Barrett's Joanna Zhou said, “to be competitive on Tmall, a brand needs to be using the latest technology, and right now, that’s virtual avatars," referring to the brand’s wide-eyed, rosy-cheeked, overall-wearing AI-powered avatar.

Brands are increasingly using virtual livestreamers to fill the gaps between real people and work around the clock, avoid scandals, as well as field questions which provide insights into customer needs and feed the support bots.

Consumer brands are utilising AI to enrichen the consumer experience. The beauty category has seen many brands such as L’Oréal , SK-II and Perfect Diary provide personalised recommendations, entertainment and virtual try-ons. Luckin Coffee uses AI in its app for personalised promotions and recommendations based on previous orders. Coca-Cola has long utilised AI into its vending machines . Behind the scenes, AI is optimising everything from warehouses, to supply chains, to logistics.

Some elements of AI will be forced upon brands this year. The most common consumer touch point for many brands – the smartphone – is seeing AI increasingly incorporated into everyday use of the devices . Brands would be wise to understand how AI is impacting the customer journey on smartphones, and do what they can to be on the right side of algorithmic decisions.

As AI evolves, so too do Beijing’s regulations and laws. As the US and China battle it out for AI-supremacy (with the US having the edge at this stage), China is ahead on AI regulation , while balancing their support for the industry.? Last week we saw China pass the world’s first legally-binding verdict on IP theft from AI-generated images of Ultraman - something brands using AI-generated content in China should be aware of.

Although incorporating AI can be very complex, requiring major redesigns of operational models, interestingly, some of the most rudimentary forms of AI are among its most successful commercially to date. On Douyin, AI-generated images of attractive ladies flogging low-quality goods through low budget photo carousels are seeing some accounts selling over 100,000 items .

Whether we like it or not, there are enough AI-success stories in China to confirm that brands should be thinking more about how to incorporate it into their marketing and operational plans. Contact China Skinny to learn how we can work with you to determine how to best to start to doing that, or improve what you are already doing , or to dip your toes, try our AI-powered brand health tracker . We hope you enjoy this week’s Skinny!