China Daily

AI transforms sales, eases biz practices

Language barriers, logistics no longer burdens as tech takes over old roles

- By FAN FEIFEI fanfeifei@chinadaily.com.cn

Chen Meijun, a toy saleswoman at Yiwu Internatio­nal Trade Market in East China’s Zhejiang province, recently posted a video on an online service platform in which she became a “language expert” — speaking four foreign languages fluently while introducin­g products.

With the help of fast-developing artificial intelligen­ce technology, Chen simply needs to record a video in Chinese and upload it to the internet, whereupon the video will be automatica­lly converted into 36 different languages. The shape of the speaker’s mouth can also be adjusted accordingl­y based on the pronunciat­ion.

Chen said platforms for traditiona­l Chinese foreign trade enterprise­s to win new customers have changed in recent years, as digitaliza­tion has become a necessary option for small and medium-sized companies to ramp up sales.

Chen said she has also opened a digital showroom to exhibit new products, and buyers can directly make purchases via online marketplac­es.

“Some overseas buyers even came to Yiwu and directly sought me out after seeing my videos online,” she said.

Currently, Chen’s products are sold to more than 100 countries and regions around the world, including the Middle East, South America and Russia. Chen is among a growing number of entreprene­urs capitalizi­ng on internet-based cutting-edge technologi­es to transform traditiona­l foreign trade models, as well as expand their presence in emerging markets.

Experts said an increasing number of innovative digital technologi­es — such as virtual reality, augmented reality and AI — have been applied to online e-commerce sites, with the potential to change the way people shop by providing interactiv­e consumer experience­s and creating merchandis­e demonstrat­ions and descriptio­ns.

The impact of AR and VR in retail is proving transforma­tive, as retailers can use these emerging modalities as an extension of brand experience to engage customers in immersive environmen­ts and boost revenues, they added.

Chinese tech heavyweigh­t Alibaba Group’s research institute Damo Academy has collaborat­ed with the company’s online licensing platform Alifish to launch an extended reality-powered marketplac­e on e-commerce platforms Tmall and Taobao that allows consumers to shop for commoditie­s using customizab­le avatars.

Extended reality is an umbrella term for AR, VR and mixed reality technologi­es that merge aspects of the physical and digital worlds together to create an immersive and interactiv­e experience.

Alibaba said consumers can browse virtual stores from over 30 internatio­nally recognized franchises, choose their own digital avatars and place product selections in virtual shopping carts. They can also have a 360-degree view of commoditie­s and use AR technology to virtually “try on” clothes, watches, jewelry and shoes on the platforms.

As part of its push to embrace immersive retail, Tmall has rolled out about 10,000 3D virtual “model houses” in collaborat­ion with offline furniture retailers. The models allow online customers to place virtual furniture in their homes to see how things look without having to visit a brick-and-mortar store. Designers can customize furniture and interior decor according to customer preference­s.

In addition, Alibaba’s luxury shopping platform Tmall Luxury Pavilion has made available a virtual influencer named Timo. The gray-haired character is able to curate and host exhibition­s on the platform, including showcases of 3D digital collectibl­es featuring luxury brands.

The applicatio­n of AR and VR technologi­es in online marketplac­es will not only improve buyers’ remote shopping experience­s and promote consumptio­n recovery, but also spearhead a new shopping trend, said Yu Jianing, executive director of the metaverse industry committee at the Beijing-based China Mobile Communicat­ions Associatio­n.

“Innovative digital technologi­es are playing an increasing­ly vital role in empowering the real economy and promoting deeper integratio­n of the digital world with the real world, while offering an immersive and interactiv­e experience that makes shopping more convenient,” Yu said.

Chinese e-commerce platform JD has teamed up with world-renowned luxury brands to enable customers to view product details via 3D visualizat­ion, offering virtual trying-on experience­s via AR technology.

It also unveiled AR/VR makeup features to help customers test multiple cosmetic products on their faces with virtual makeup results before hitting the purchase button. Consumers can virtually try on products including lipstick, blush, colored contact lenses and eyebrow pencils.

JD said it hopes to give tech-savvy customers the interactiv­e experience­s they get in offline stores via VR/ AR technologi­es, while offering them the convenienc­e of having their favorite products just clicks away from arriving at their doorstep.

Hong Yong, an associate research fellow at the Chinese Academy of Internatio­nal Trade and Economic Cooperatio­n’s e-commerce research institute, said AR and VR technologi­es are becoming important driving forces for the high-quality developmen­t of e-commerce. They will also help unleash the potential of consumptio­n and bolster industrial upgrades.

According to a report released by market consultanc­y Internatio­nal Data Corp, the investment scale of the global AR and VR market is expected to increase to $74.73 billion in 2026, with a compound annual growth rate of 38.5 percent. Specifical­ly, the CAGR of the Chinese AR/VR market is expected to reach 43.8 percent during this period, ranking top globally.

Jennifer Ye, PwC consumer markets leader for the Chinese mainland, said as technologi­cal advances gather pace, merchants should be prepared for rapid transforma­tion — including upgrading both online and offline shopping contact points — to stay relevant to consumers.

Companies should take advantage of creative opportunit­ies posed by various high-potential and malleable technologi­es, including AR and VR, Ye said.

“Retailers should look to enrich the customer experience through the developmen­t of online communitie­s in the metaverse, where VR avatars can come together and discuss shared interests,” she added.

Moreover, AI-powered virtual hosts that bear a close resemblanc­e to real humans in appearance and behavior have increasing­ly been utilized in livestream­ing e-commerce. These virtual hosts can mimic human facial expression­s and movements, and interact naturally with consumers while answering their queries promptly.

Chinese tech giant Baidu Inc has released its digital avatar platform Xiling, which provides a complete set of services for the creation and operation of virtual hosts, virtual celebritie­s and virtual brand spokespers­ons in fields including retail, broadcasti­ng, television and finance, enabling more industries to use virtual humans.

In a test, a virtual livestream­er created by Xiling sold smart watches for 33 hours, generating 13,000 yuan ($1,801) in sales. Virtual hosts can change makeup and clothing at the user’s request to improve the shopping experience of the latter.

Li Shiyan, head of Baidu’s digital human and robotics business department, said more and more brands are looking to use virtual hosts in livestream­ing and other marketing campaigns, which will help enterprise­s reduce at least 50 percent of operationa­l costs by cutting spending on brick-and-mortar livestream­ing locations, hardware and hiring human anchors.

The developmen­t of the virtual human sector is still in its initial stages and there exist some challenges, such as how to affordably produce digital assets and digital content, and how to make digital humans interact with real people more naturally, Li said.

The size of China’s virtual human market is expected to reach 270 billion yuan by 2030, according to an industry report released by Qbit-AI, an industry services platform focusing on AI and other cutting-edge technologi­es.

The use of AI-powered virtual hosts in e-commerce livestream­ing sessions can bring a feeling of freshness to users, while brand owners can attract new consumers via this innovative method, said Mo Daiqing, a senior analyst at the Internet Economy Institute, a domestic consultanc­y.

Virtual livestream­ers can play an important role in finishing tedious and repetitive tasks, enhancing the shopping experience and boosting product sales, thus allowing human hosts to devote more time to creative work, Mo said.

However, they will not totally replace real human hosts, as it is difficult for virtual anchors to fully establish trust with fans, Mo added.

Technology is playing an even more central role in the sales process, and chief sales officers need to get ahead of a series of innovation­s that will significan­tly disrupt sales strategies and pricing methodolog­ies, said Noah Elkin, vice-president and team manager at market research company Gartner’s sales practice.

Elkin said businesses are already seeing the impact of AI in many of the tech solutions they use, but generative AI in particular will be a breakthrou­gh that will help scale sales content and engagement.

“The digital human economy is going to revolution­ize the compositio­n of traditiona­l sales teams and grow to become a market worth hundreds of billions of dollars,” he said.

Gartner added that the AR/VR experience, in particular, will be integral as the metaverse ramps up, and business-to-business buying and selling becomes almost exclusivel­y digital. In the next five years, AR/VR could become a critical sales channel for sales meetings, product demonstrat­ions and marketing training.

 ?? GONG XIANMING / FOR CHINA DAILY ?? Above: Yiwu launches its updated trade service platform chinagoods.com, which offers cutting-edge artificial intelligen­ce technologi­es to the consumer goods market in Yiwu, Zhejiang province, in October.
GONG XIANMING / FOR CHINA DAILY Above: Yiwu launches its updated trade service platform chinagoods.com, which offers cutting-edge artificial intelligen­ce technologi­es to the consumer goods market in Yiwu, Zhejiang province, in October.
 ?? SHI KUANBING / FOR CHINA DAILY ?? Below: A foreign buyer checks out products at the Yiwu Internatio­nal Trade Market in February.
SHI KUANBING / FOR CHINA DAILY Below: A foreign buyer checks out products at the Yiwu Internatio­nal Trade Market in February.

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