♪ in decembmber 2018 an award ceremony was held in the chinese capital of beijing.

the venue was the china national convention center where apex summit meetings and olympic events are held. the award ceremony was hosted by waybo, china's largest social media service. the winners are online video celebrities from various sites. they've recently grown popular in china for being dependable and relatable. they've been ranked the most admired new occupations by young people today. [ speaking foreign language ] . >> china has more than one million people who share their videos online. among them are those serving as

influencers in diverse fields such as cosmetics and education. they're referred to as kols or key opinion leaders. ♪ >> this event has attracted executives from the media and corporate world. for people doing business online, using these kols can greatly increase sales. the top tenen key opinion leade for fiscal 2018 have earned more than $27 million in combined income. the market for the kol business reaches $9 billion yearly. china's video sharing culture is now deeply intertwined with the economy and changing the way business is conducted. one online brand made close to

$1 million in a single night by using kols. [ speaking foreign language ] >> this live broadcast complex was built to max made the influence kols have on consumers. even communist party members have started sending out videos from here. [ speaking foreign language ] >> this episode follows the forefront of the ever-changing world of china's unique online video bloggers.

>> one internet celebrity fundamentally changed video streaming in china by collecting $3 million in advertisement from firms and $1.7 million in investments. her handle name is poppy jon. [ eaking foreign language >> s started releasing videos in 2015 and gned more than 10 million llowers in six mthths. these numbers have made her an attracti candida for investnt. poppy jon now runs a multi channel network that manages kols and produces videos.s.

with 100 registered kols, the companany gets a total of 20 billion views a year and earns more than $14 million in sales. he was chosen as one of the top ten kolest in 2008, lang jinghe, belongs to this company. he posts videos reviewing foods and daily necessities. with more than three million followers watching his videos, products he introduces are quick to sell out. [ speaking foreign language ]

>> l lang is a pioneer in the business model of making individual yvideos on corporate incentives. he gives honest comments, including negative reviews. in pointing out views, they look for positive views that might outway the negatatives. that's how a review becomes an ad. [ speaking foreign language ] >> this strategy created a new business model tying ads with kols. many kols are currently earning a living this way. one online shopping company launched in 2017 to turn amateurs into kols. the company representative zhefanwenhua had worked on one

of china top three retail sites. he quit and launched this firm, believing in the potential of kols. this shopping site that he runs primarily sells beauty products. but the site has no links or ads featuring key opinion leaders. [ speaking foreign language ]

>> on this day, executives from a thai cosmetics comompany vivisited, asking foror adverti on the online shopping site. [ speaking foreign language ]

>> on the online shopping site, when a firm decides to post a key opinion leader will introduce the product. a few of the 200 bloggers suitable for reviewing the product will test the item. the videos made after they try the products are filmed and edited by a dedicated team at the firm. the relation between the shopping site and kols is not publicly disclosed. instead, thehe ad is released a the kols individual views.

at the endnd of thehe v video o, the kols add a linkk to t the s where the products can be purchased. kols are paid based on the number of times items are purchased through the banners. a woman who runs a beauty salon came to the company wanting to become a kol so that she can advertise her store. [ [ speaking foreign language ]

>> the w woman endnded up signi contract with him as a kol. [ [ speaking feign languguage ]

[ speaking foreign language[ s]

>> aspiring kols may not be famous, but they carry a wealth of knowledge. by teaching them how to make videos and advertise products through word of mouth, product sales grow. that is zhefanwenhua's primary goal. wuhan city is located midstream of the yangsu river and is known for having the languagest number of students in china. in the out skirts of wuhan a village is being built for video bloggers. the construction cost is $730 million. about an hour's drive from the center of the city, a key building of the village comes into view. the compound covers an area of 1.47 million hectares. a park has been completed that blossoms with different flowers in each season. this is the town's main street.

on this street are homes that bloggers can rent at low cost and locations like restaurants where they can shoot videos. the first stage of construction has just been completed with work scheduled to finish in 2020. the village comprises three main areas, the housing area for kols, an event area for interactive events, and a hotel area for fans. the village is expected to be inhabited by 1,000 kols and visited by 30,000 tourists a year. it was planned and built mainly by the government. [ speaking foreign language ]

>> a new project began when the first section of the village opened. it made an open call for kols to help spread the government's policies. currently, about 50 people, including public officials and lawyers, have registered and are making regular broadcasts. [ speaking foreign language ]

>> registered bloggers are expected to make more than 200 hours of broadcasts a year. [ speaking foreign language ] >> jing ying is another person that respoponded to the e government's c call. she is a l lawyer s scializing civil law.w. [ speaking foreign language ] >> the city government pays these people for each broadcast, but jing says the trust she gained as a lawyer means more than the pay. [ speaking foreign language ]

>> there are studios, editing rooms and other facilities where people can broadcast with the view of the village as a backdrop. any registered person can use these facilities. video blogging began in the private sectorr and grew to command great influence. w the pubublic sector is using it, too. hangzhou is known for its apparel industry. the city has always stood on the front line of fashion.

it is the location where a woman who once ran kol production in shanghai launched a new business. li jie started her first company in 2015, but she quit, feeling the limits of her business as the diversity and expertise of kols blossomed. she then reached out to kols who specialize in fashion and launched a company creating clothing brands based upon them. [ speaking foreign lananguage ]

>> li's company has now hired 20 kols. their cumulative followers exceed eight million. these followers come together during monthly launch events for

new prododucts. ♪ >> among the company's kols, se generates the highest sales. she used to work as a nurse. she began working agency a blogger four years ago. she started by uploading videos of herself making fashionable outfits by combining affordable clothing. that relateability and fashion sense attracted female fans. li suggested that fan start her own brand. currently fan is engaged in the entire process, from designing, making and checking clothes to sending out videos to her own followers. [ speaking foreign language ]

>> fan makes 30 new clothing items every month for the release event. she named her brand fan fan based on her family name. [ speaking foreign language ] >> shehe also updates her blog d streamining videos. it leaves her little time for her private life. [ speaking foreign language ]

>> the monthly launch event is about to begin. the total sales from these one-night events are hoped to exceed $730,000. ♪

>> from early that morning, preparations are underway in the office. 100 items of clothing from the entire company are piled up. the event is scheduled from 8:00 p.m. to 1:00 a.m. fan takes part in thorough rehearsals. the number of staff total 50, including the kols, clothing staff, broadcasters and sales reps. at 8:00 p.m., the streaming begins. it is being streamed in an ordinary office, not a studio with special equipment. fan is speaking into a smartphone. [ speakingng foreign language ]

>> this single device uninites e staff and audience members. [ speaking f foreign languagage] >> the number of views is constantly checked, with directions given in response. [ speaking foreign language ]] >> the broadcast director is only i in charge of keeping tra of time and doesn't monitor the contenent. the kols have free rein. sales figures are immediately reflected on the monitor in the first floor office. three hours into the event and

sales have stalled at $14,000. each clothing item is priced at an average of $45. that means only 300 items have been sold. to exceed $700,000 in sales, they need to sell another 15,000 items. but strangely, the staff seems totally at ease. an hour before the event ends, everyone suddenly gets together in front of the monitor. [ speaking foreign language ]

>> just after midnight sales suddenly begin to rise. sales exceed $140,000 over the course of an instant. over just a few minutes, the number nears $440,000. [ speaking foreign language ]

>> the secret behind the sudden sales increase was the distribution of coupons before the broadcast. the discounts only take effect after midnight. that's why many people waiaitedo make purchases, boosting sales in the last hour. at 12:50 a.m.m., sales purchase passed $730,000. li successfully reached her target. born out of china's unique online environment, kols have shown an influence that has changed the way businesses work and they continue to grow in popularity. they have become a new medium, deeply connected too the lives f ordinary people in the country and are sure to see continued growth in the future. ♪

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