China Daily | 10-Jul-2022 | By LUO WANGSHU
China’s flight attendants are becoming popular salespeople on streaming portals. Their sweet smiles, gentle voices and polite manners attract viewers, in the hope of turning them into customers. Such sales drives are part of efforts made by airlines to weather the impact of COVID-19 outbreaks over the past two and half years.
As the civil aviation industry has been one of the sectors hardest hit by the pandemic, carriers are looking to other forms of business to hedge their losses, with livestreaming sales just one of the avenues being explored to attract potential customers. Qu Guang, a senior civil aviation industry observer, said these sales may not come to the rescue of the industry during the pandemic, but they could be an opportunity for airlines to appreciate the “business model in the internet age “and further diversify their operations.
China Southern Airlines and Hainan Airlines are among the carriers that have opened livestreaming accounts on social media platforms to sell products such as makeup, electronic goods and food. Qu said makeup is always a good initial choice for airlines that lack online sales experience. Carriers could also work with agencies, he said. “It is a misconception that airlines can make sufficient money from livestreaming sales to hedge their losses from transportation, but these sales are an opportunity for traditional carriers to embrace the internet world and understand young people-their potential customers,” he said.
Qu added that some of those working for airlines view non-transportation business as lacking professionalism, but when COVID-19 hit the industry and halted flights, airlines were forced to develop additional forms of revenue. Airlines’ strengths in the retail sector include the availability of flight attendants as high-quality broadcast hosts, and an existing customer pool among their passengers, he said. However, there are also disadvantages to livestreaming, such as sourcing products.
“One major retail obstacle for airlines is deciding what to sell,” Qu said.
Last year, the civil aviation sector in China experienced a loss of 84.25 billion yuan ($12.56 billion), while airlines lost 67.09 billion yuan, according to the Civil Aviation Administration of China. Also last year, the nation’s three major airlines-Air China, China Southern and China Eastern-experienced losses totaling more than 16 billion yuan. Qu said it is not easy for carriers to conduct livestreaming sales, as systematic training and quick development techniques are required. “Initially, it is hard to make a profit from the livestreaming business, but such work will become easier,” he said, adding that at present, a popular domestic airline can earn about 1 million yuan a month from these broadcasts.
Yu Zhanfu, partner and vice-president of the China unit at consultancy Roland Berger, said some overseas airlines have found a measure of success by raising funds in their own way to battle the pandemic. For example, to earn additional income, Thai Airways has sold a fried dough known locally as pa tong go, accompanying it with steamed purple custard. Yu said, “The extra income earned from selling this popular street food is significant for the airline’s revenue, and this is a successful example of battling COVID-19.”