What lies behind the success of record live stream in Vietnam?

A recent TikTok live stream in Vietnam which generated up to VND75 billion ($3 million) in sales revenue during a single session has been hailed as a success by simply targeting the right customer, utilizing the right channel, delivering the right message, and timing it effectively.

“The right customer means the TikTok account Quyen Leo Daily effectively targeted its ideal customer base by consistently creating content for family-oriented individuals with stable incomes and significant purchasing power,” said Dr. Alrence Halibas, a senior lecturer in digital marketing at RMIT Vietnam.

Meanwhile, the right channel refers to the fact that there are now almost 50 million TikTok users in Vietnam. Dr Halibas added that utilizing TikTok's live streaming feature allowed Quyen Leo Daily to reach a large audience and capitalize on the platform's interactive and engaging nature to drive sales.

In terms of the right message, the promotion played a crucial role in generating anticipation and excitement among viewers.

“By leveraging well-known influencers with teasing exclusive deals, Quyen Leo Daily effectively communicated the value proposition of attending the live stream event. During the stream, they continued to deliver the right message by presenting highly attractive deals.

“This strategic approach aligns seamlessly with the preferences of consumers in Vietnam, who are known to be price sensitive and value conscious,” Dr Halibas said.

She further elaborated on the right timing factor. The timing of the live stream coincided with promotional activities on TikTok Shop and memorable dates such as 2/2, 3/3, and 4/4. “This strategic timing helped the event capitalize on consumer behaviour patterns and the habit of checking the platform for sales during these periods. Additionally, the 13-hour duration of the live stream ensured that it provided ample opportunities for engagement and sales," she added.

RMIT lecturer in digital marketing Dr Jasper Teow provided insights from a consumer behaviour perspective covering trust, scarcity, and likeability.

Dr Teow said that the groundwork for this successful stream was laid long before the event. It started with Quyen Leo Daily creating consistent, relatable and authentic content, which established a sense of connection and trust with their audience. This trust made viewers more receptive to their product recommendations and discounts during the live stream, increasing their purchase intentions.

Besides, the live stream successfully utilized scarcity tactics in terms of time (“limited-time exclusive discounts”) and quantity (“while stocks last”), creating a sense of urgency or the fear of missing out (FOMO) among consumers. “This leads to consumers adopting an automatic, “buy first, think later” mindset, which makes them more susceptible to making impulsive, instant purchases,” said Dr Teow.

In a traditional marketplace, these constant sales pitches and marketing tactics may be viewed as annoying, pushy or pressurising. This was not the case in the live stream’s dynamic. Dr Teow pointed out that the likeability and “star power” of influencers and KOLs, with their followers egging them on with likes and comments, cannot be overstated.

“Overall, this dynamic interaction with their viewers created positive selling momentum that contributed to the record-breaking sales revenue,” he added.

Insights for brands to amplify online sales performance

Dr Halibas suggested that one strategy for brands is to invest in influencer marketing, utilizing influencers to expand their reach and boost engagement.

Echoing Dr Halibas's comments, Dr Teow also underscored the significance of influencer marketing. According to him, brands should ensure that the chosen content creators are the right "face for the space”.

Dr Halibas said that ideally, these should be influencers who can provide compelling, authentic narratives to engage their followers, and can speak about the products or product category with genuine passion and/or subject matter expertise.

“Providing exclusive deals and promotions can encourage consumers to make purchases while watching live stream events. Brands should prioritize developing captivating and interactive content to attract and retain viewers' attention throughout live streams. Likewise, it is important to create anticipation through pre-event promotions to spark excitement and build anticipation among viewers,” she explained.

Will another record be set?

Dr Halibas anticipated that this record will likely be surpassed in the future. This live stream event's success marks the start of a viral live stream trend in Vietnam. “With the ongoing evolution of digital platforms and the changing consumer behaviour towards online shopping and entertainment, more brands and influencers will likely utilize live streaming to effectively connect with their audiences and boost sales.”

Dr Teow also saw the possibility, given the increasing prominence of live streaming and influencer marketing in Vietnam. “Followers/fans/friends/family of different influencers may be motivated to see their favourite influencer succeed, which may lead to competition between influencer communities and increasingly higher sales records,” he noted.

However, as competition intensifies, businesses should note that an oversaturation of live stream events may lead to consumer fatigue. “It will be up to brands to come up with more innovative and creative methods to maintain consumer interest and engagement in these events,” Dr Teow concluded.