Influencers Worth 'Eok' Sound... "Hiring Virtual Models"

Virtual human 'Rosie' created by Sidus Studio X Instagram account (Photo by Instagram)

[Asia Economy Reporter Seungjin Lee] The fashion and beauty industries, which actively engage in marketing activities using social media influencers, are facing growing concerns. This is due to the skyrocketing fees of these influencers amid the COVID-19 pandemic.

Subscriber Count Remains the Same, but Fees Double in One Year

According to industry sources on the 6th, a major domestic fashion company recently gave up on marketing activities using influencers due to cost issues. The company had planned to use influencers for marketing to promote a new brand launch. However, the influencer side proposed fees twice as high as initially expected, leading to the cancellation of the plan.

An official from the company explained, "Last year, when we conducted a one-time marketing activity with an influencer who had just over 100,000 SNS subscribers, the fee was about 20 million KRW. This time, they demanded more than double, around 50 million KRW, so we had to withdraw due to budget constraints." The official added, "The fees for influencers have risen sharply this year compared to last year, and without any clear criteria based on subscriber numbers, it has become a situation where prices are arbitrarily set, which is quite frustrating."

Industry insiders explain that the fashion and beauty sectors have seen a particularly active use of influencers for marketing during the COVID-19 pandemic, and the recent sharp increase in their fees has become a significant burden. As concerns over COVID-19 infection made direct consumer experience marketing impossible, most marketing activities shifted to indirect experiences conveyed through celebrities.

A representative from a major domestic cosmetics company also shared difficulties in marketing activities using influencers. He said, "Despite little change in subscriber numbers compared to last year, fees have nearly doubled, and it is common for YouTube promotional video production to require basic fees of tens of millions of KRW. There are no specific standards, and the promotional effects of using these influencers cannot be guaranteed, so while we feel burdened by influencer marketing, there are no suitable alternatives."

In response, some companies have started nurturing in-house influencers. For example, Samsung C&T Fashion Division operates a popular YouTube channel called 'AlkkongTV' run directly by employees. Without using celebrities or influencers, this channel promotes Samsung C&T Fashion Division’s brands and corporate culture, approaching 70,000 subscribers.

LG Household & Health Care has launched a program to train live commerce specialist influencers. The program includes expert-led training on sales speech, broadcast planning, and communication methods. Participants observe live commerce sites and engage in challenge contests as practical training. After completing the course, they introduce LG Household & Health Care products through live commerce.

Lotte Homeshopping Virtual Model Lucy

'Virtual Humans' Taking Over Influencer Roles

Some companies have begun utilizing artificial intelligence (AI) models.

'Rosie,' a virtual human created by Sidus Studio X, has conquered not only the food industry but also beauty advertisements typically reserved for top models. Since April, Rosie has been promoting Amorepacific's 'Hera' Black Cushion, leaving detailed SNS reviews expressing the product experience.

Lotte Homeshopping started development in September last year and unveiled 'Lucy' in February. Lucy mainly uses a method that composites a virtual face onto photos taken by real humans and posts pictures on Instagram to build recognition. Lucy currently has 21,000 followers.

Lotte Homeshopping plans to enhance Lucy with AI-based voice expression technology to a level similar to real humans and expand her activities as a virtual consultant and virtual show host.

CJ ENM recently formed a strategic business partnership with Afun Interactive, a real-time 3D content production studio, and declared plans to develop digital virtual humans for the global market. Given that marketing using virtual humans has already become mainstream overseas, they anticipate the related market will grow even further.

This content was produced with the assistance of AI translation services.