Influencer Marketing in China: Key Opinion Leaders and Regulatory Framework

China boasts one of the most advanced social media ecosystems in the world, characterized by a vast online population and a highly diverse digital landscape. As the largest social media market globally, it has facilitated the rise of innovative advertising strategies, including influencer marketing, referred to as Key Opinion Leader (KOL) marketing in China. This marketing approach has become an essential instrument for businesses seeking to enter the Chinese market and enhance brand visibility. This thesis aims to examine the legal and regulatory frameworks that both domestic and international brands must consider when implementing these advertising strategies in China. Particular attention is given to the legislation regulating the use of KOLs and promotional tools such as live streaming, which has become a core component of KOL marketing. The first section of the thesis introduces the concept of influencer marketing, providing an overview of its principal characteristics. It then addresses KOL marketing in China, emphasizing the distinctive role of KOLs in the advertising sector, the associated benefits and risks, and the growing prominence of live commerce, an emerging trend that integrates live streaming with e-commerce platforms, reshaping product promotion and sales in the Chinese market. The second section explores the regulatory landscape governing influencer marketing, with a focus on recent developments and the legal requirements related to advertising and live streaming. These state regulatory measures are designed to promote transparency, safeguard consumer rights, and uphold ethical standards in an ever-evolving digital landscape. Furthermore, the section examines the self-regulation undertaken by industry associations and digital platforms in complementing the government’s regulations to ensure compliance and effective oversight of live streaming content. The final section focuses on the analysis of the collaborations between brands and KOLs from a legal perspective. It underscores the importance of formal contractual agreements in collaborations between brands and KOLs, detailing the essential elements of such contracts. A case study of a legal dispute between a brand and an agency providing KOL live streaming services is presented to illustrate the practical implications of these agreements and the legal consequences of non-compliance.