China Xiangtai Food Co Ltd (NASDAQ:PLIN), a food processing company, announced Tuesday that it entered into a service agreement with online media and brand promotion firm Chengdu Quanmin Doushang Media Co Ltd (CQDM) on August 28, 2020.
The deal will see CQDM provide the company with short videos and live streams by influencers (known as key opinion leaders, or KOLs) on popular Chinese social media platforms such as TikTok, Kuaishou, Weibo and Xiaohongshu.
CQDM is expected to help put together 66 eCommerce live streaming events, which China Xiangtai Food expects will each draw more than 100,000 virtual attendees.
"We are pleased to start working with CQDM, who has terrific media and audience coverage,” China Xiangtai CEO Zeshu Dai said in a statement. “While eCommerce live streaming has existed in China for several years, it took off in 2019 and became one of the most effective online marketing channels.”
Merchants in China are warming to the idea of live streaming as a marketing tool, she added.
“Faced with increasing competition and ever-higher traffic acquisition costs, Chinese merchants became increasingly open to the idea of using live streaming,” the CEO said. “As we already have a strong brand recognition in southwest China, we are constantly exploring opportunities to expand our online presence, in order to meet the ever-evolving consumer behavior and business model. We look forward to having CQDM help us add another dimension to our existing marketing channels."
Headquartered in Chongqing, China Xiangtai Food is primarily engaged in pork processing, with its operations spanning key sections of the value chain, including slaughtering, packing, distribution and wholesale of a variety of fresh pork meat and parts.
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