“The Cost of Words”: The Fall of Florasis, China’s Leading Beauty Brand

Florasis Emerges: Revolutionizing Makeup in China

In Hangzhou, China, on March 8, 2017, a makeup revolution was initiated with the birth of Florasis. This brand, with floral essences and extracts of traditional Chinese herbs as its core ingredients, is dedicated to creating makeup products that are healthy and suitable for use by women. Its delicate appearance and high-quality product offerings have attracted countless women, not only in the Chinese market but also rapidly gained popularity in countries such as Thailand, Japan, and the United States.

The Influence of Li Jiaqi: From Anchor to Brand Ambassador

However, Florasis’s rapid success can be attributed in no small part to an e-commerce anchor named Li Jiaqi. Li Jiaqi is a shining star in the Chinese beauty industry, and his partnership with Florasis dates back to the inception of the brand. With his unique live streaming style and outstanding sales performance, Li Jiaqi has won broad audiences and attention for Florasis.

In Li Jiaqi’s collaboration with Florasis, he is not just a salesperson but also an influential brand ambassador. Through precise audience management and deep interaction, he successfully shapes the voice and tone of the Florasis brand.Firstly, Li Jiaqi has built an intimate and active community through his live streams. Each live broadcast, lasting over six hours, not only shares makeup tips and product experiences with female fans but also establishes deep trust and emotional connections with them. He doesn’t shy away from discussing the brand’s shortcomings with fans, such as high product prices, demonstrating his authenticity and affability. This interaction not only makes fans feel valued and understood but also establishes a solid and trustworthy image for the Florasis brand, enhancing its position and influence in the minds of consumers. 

Secondly, Li Jiaqi’s voice and brand tone play a crucial role in brand promotion. His lively, humorous, and enthusiastic live streaming style, coupled with professionalism, align perfectly with the positioning and image of the Florasis brand. His words are full of passion for makeup and pursuit of quality, perfectly matching Florasis’s image as a high-quality makeup brand, enhancing its attractiveness and competitiveness. Li Jiaqi’s voice and brand tone run through live streams and social media interactions, maintaining a consistent brand image, establishing a stable and trustworthy brand image, further enhancing Florasis’s position in the minds of consumers.

The Peak and Pitfall: Success and Crisis in Florasis’s Journey

Li Jiaqi’s live stream has become an important platform for the promotion of Florasis products. During the 2020 Singles’ Day alone, Florasis’s sales on Tmall reached 220 million yuan (approximately $34 million), making it the second highest-selling domestic cosmetics brand. On the Douyin platform, it topped the list of domestic makeup sales, with a transaction volume of 75 million yuan (approximately $11.6 million). Florasis’s sales also experienced explosive growth, increasing from 43.19 million yuan (approximately $6.7 million) in 2018 to 3 billion yuan (approximately $465 million) in 2020, a year-on-year increase of 165.4%. With Li Jiaqi’s assistance, in less than three years, Florasis has become the leader in the Chinese beauty market. 

However, in a live broadcast in November 2023, the Florasis brand encountered a major marketing crisis, resulting in a sharp drop in sales and serious damage to the brand image. The root cause of this crisis can be traced back to Li Jiaqi’s response to product prices during the live stream. When customers reflected that eyebrow pencil prices were even higher than some international makeup brands, Li Jiaqi’s response seemed inadequate and even somewhat indifferent. He said, “Expensive? Sometimes you should look at yourself. Have you had a raise in salary over the years? Have you been working hard?” This statement disappointed and angered many customers, as it was seen as disrespectful to customers’ hard work, sparking discussions and resistance among them. Many people began to mimic his tone to shoot various videos expressing their dissatisfaction with the brand. What’s more serious is that this video segment was translated into various languages using AI technology and distributed on different social media platforms, further amplifying the impact of the incident, leading to negative evaluations and criticisms of Florasis globally. 

Li Jiaqi’s Weibo followers decreased from 30.435 million to 29.477 million, losing nearly 1 million followers in one day. The daily sales of Florasis’s official flagship store plummeted by over 90%, from the usual sales of millions of yuan to less than 100,000 yuan (approximately $15,500), directly reflecting customers’ lack of trust and resistance to the brand, dealing a severe blow to the brand’s performance.

Lessons Learned: Effective Customer Relationship Management in the Social Media Age

This incident exposed serious mistakes in Florasis’s brand communication and audience relationship management. Li Jiaqi, as the brand’s spokesperson and image representative, directly influences the brand image and the audience’s trust in the brand through his words and actions. However, his performance in this incident was evidently unprofessional and insensitive. His response lacked understanding of customers’ emotions and needs, appearing somewhat indifferent and irresponsible. This lack of resonance and communication severely damaged the trust relationship with the audience, leading to a damaged brand image and a decrease in sales.

From a marketing theory perspective, this incident exposed shortcomings in Florasis’s brand communication strategy and the shaping of brand voice and tone. Brands should pay more attention to communication and understanding with the audience to establish good relationships and trust. Effective brand communication is not just about one-way information push but about establishing two-way interaction and resonance with the audience to better meet their needs and expectations. However, in this incident, Florasis failed to do so, resulting in a damaged brand image and decreased sales. 

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