Digital characters, akin to influencers, rise in popularity
Virtual Influencers Shaping Retail Partnerships
In the ever-evolving world of retail, virtual influencers are making a significant impact on human influencer collaborations. These digital personalities, such as Lil Miquela and Cindy, are being experimented with by various companies to bring a new dimension to physical stores.
These AI-driven influencers offer several advantages to brands, including speed, scalability, and controlled messaging, making them particularly appealing to fashion and beauty industries. For instance, Cindy, developed by Imaginuity, was introduced at 13 shopping centers in the U.S. to drive traffic across stores and digital properties. Similarly, brands like Dior, Calvin Klein, BMW, and Coach are investing in virtual influencers to sway consumers.
However, consumer trust remains a critical factor. Roughly one-third to nearly half of consumers show discomfort or distrust towards AI influencers, necessitating transparency and careful strategy around their use. Consumer trust in influencer personalities is on par with trust in family and friends, underscoring the importance of maintaining authenticity.
Despite the rise of virtual influencers, human influencers continue to hold a dominant role. Their authentic content and emotional connections are vital for retail affiliate and influencer marketing success. Brands still prioritise authentic alignment where the influencer’s voice matches the brand values, a factor that virtual influencers struggle to emulate fully due to perceptions of inauthenticity.
Some brands are pursuing a hybrid approach, using virtual influencers for certain campaigns but relying on human creators, especially micro-influencers, for credibility and emotional engagement. For example, J.C. Penney partnered with human influencer LaDarius Campbell to create a limited-edition collection and promote it.
Legal and ethical considerations for retail brands using virtual influencers are increasingly important, covering advertising transparency and intellectual property rights to ensure compliance and consumer protection. The Skims brand, an influencer-founded brand, is a notable example, having been valued at $4 billion and opening its first permanent store in Washington, D.C.
In summary, virtual influencers are an emerging complementary tool that impacts human influencer partnerships by forcing brands to rethink authenticity, trust, and creative execution in retail marketing. Human influencers remain essential, particularly in driving genuine engagement and retail sales, while virtual influencers provide novel avenues for content control and innovative branding approaches, provided consumer skepticism is managed well.
Meanwhile, consumer interest in human influencers remains high. 60% of Generation Z aspire to become influencers, and retail brands are responding to this by creating platforms like Claire's The Collab, which enlists Gen Z and Gen Alpha brand ambassadors.
As the retail landscape continues to evolve, it's clear that both virtual and human influencers have their unique roles to play. The key will be for brands to navigate this new terrain with care and transparency, ensuring they maintain consumer trust while leveraging the benefits that each type of influencer offers.
- The fashion and beauty industries are experimenting with AI-driven virtual influencers, such as Lil Miquela and Cindy, to bring a new dimension to physical stores and drive traffic.
- Artificial intelligence technology offers several advantages to brands, including speed, scalability, and controlled messaging, making virtual influencers appealing to certain industries.
- Despite the rise of virtual influencers, human influencers continue to hold a significant role, particularly in driving genuine engagement and emotional connections.
- The retail landscape is evolving, with both virtual and human influencers playing unique roles. Brands need to navigate this new terrain with care and transparency, ensuring consumer trust while leveraging the benefits that each type of influencer offers.
