(Dan Tri) – The boom of the livestream online sales industry has helped many famous people in China become millionaires, even billionaires.
Chinese online sales star Vy A (Photo: FT).
The unbelievable scale of the online business model (livestream) in China was recently revealed when the country’s authorities imposed a record tax evasion fine of 1.34 billion Yuan (210 million USD) on the `queen`.
`It turns out, those who sell livestreams make so much money. What do they contribute to the country other than convincing consumers to buy things they don’t really need,` a netizen commented.
According to the tax authority of Zhejiang province, between 2019 and 2020, Vy A evaded taxes of about 700 million Yuan.
Vy A, 36 years old, and her husband Dong Haifeng are both on the list of 500 richest people in China according to Forbes.
Vy A is a clothing store owner and an emerging singer since 2016 thanks to achieving online sales revenue of 100 million Yuan in just 4 months.
This business model is very simple.
When sales amount to millions or even billions of Yuan, their income is also incredibly high.
`It is consumers who give livestream stars bargaining power, influence and money,` said Zhang Yi, analyst at iiMedia Research (Guangzhou).
Joey Zhu, owner of a snack processing company in China, said his company hired Vy A to advertise and sell products via livestream because she has a positive image and is very convincing to customers.
According to consulting firm McKinsey, online commerce can help brands and retailers speed up conversion and improve brand appeal and differentiation.