In the context of economic difficulties, it is essential for retail businesses and store owners to understand that they should not wait for customers to come to them but actively seek out customers instead. Unfortunately, some businesses and sellers on e-commerce platforms have taken advantage of loopholes by intentionally advertising misleading information or exaggerating the benefits of low-quality products to maximize profits. Additionally, Key Opinion Consumers (KOCs) or content creators on various platforms may lack the necessary skills and knowledge to evaluate and choose quality products when advertising, leading to the situation where "not all famous KOCs/KOLs are synonymous with quality advertising products".
Low-quality products are sometimes advertised at higher prices through the endorsement of KOCs
The advertised product is premium milk, but it's surprisingly cheap at only 90,000 VND per box
The powdered milk products flooding the market share similar characteristics in terms of appearance, description, ingredients, target audience, and manufacturer. However, there is a significant price disparity among these products: some shops sell them for as low as 125,000 VND per box, while others sell them for 499,000 VND. The wholesale price of these milk products even reaches as low as 55,000 VND per box.
It is known that the powdered milk product priced at 499,000 VND per box, despite having the same quality and supplier as other products from the same company, is advertised by a KOC with over 6 million followers on livestream and social media, hence driving its price up to 499,000 VND per box.
According to the analysis, if the wholesale price of the product is 90,000 VND per 900g box and the profit for the distributor and manufacturer is 15,000 VND, with processing costs in the market at 40,000 VND per box, which accounts for 50% of the total cost of one box of milk, then the cost of raw materials for this milk product is only 35,000 VND. Therefore, how can this milk product ensure quality for consumers, not to mention the nutritional content of the milk?
Using images of doctors or pharmacists to advertise
And to advertise the product, the company manufacturing this milk product has booked a KOC on TikTok to serve as a representative and introduce the product, advertising regardless of unverified and unauthenticated information.
Additionally, this milk company also uses images and information of doctors and hospitals to enhance the credibility of the product without permission. According to food safety regulations, it is not permitted to use the names of doctors, pharmacists, or healthcare facilities to advertise food products.
The use of images or voices of pharmacists and doctors to enhance the credibility of the product, thereby intentionally highlighting the functions and effects of the product to consumers to sell more products, is a reckless selling behavior. This will have a significant impact on consumers, and in the long run, it will certainly affect the development of the brand and the business.
Consumer reactions to low-quality products
And of course, many negative reactions from consumers regarding this milk product have emerged: users have reported experiencing stomachaches, headaches, nausea, diarrhea, and some have even had to be hospitalized. This has clearly demonstrated to consumers that the quality of the product is not guaranteed.
Comments and opinions from netizens suggest that "KOC and the milk advertisements at this factory" do not ensure food safety standards within the factory and are not reputable enough to authenticate the quality of the product.
Preventing counterfeit goods and unauthorized shops on e-commerce platforms
Due to the nature of selling on platforms with a C2C model, individuals only need to register their personal information, such as their ID card, to list items for sale. Therefore, if sellers intentionally provide false information or use images of other products to bypass filters, the only way to prevent this is through quick reactions from customers reporting or through hotlines. Additionally, platforms employ filtering measures combining AI and manual methods.
A representative from Sendo estimates that the filter can accurately detect 80-85% of cases of counterfeit and fake goods, and 100% in cases of prohibited items according to legal regulations. The remaining cases are manually detected based on commonly counterfeited items and shop reviews. For Tiki, customer satisfaction is a top priority, so for over 4 years, they have maintained a program offering 111% compensation for cases of inadvertently purchasing counterfeit or fake goods on the platform. By implementing this policy, Tiki once again affirms its stance against counterfeit and fake goods. In addition to refunding and compensating customers, Tiki also has appropriate measures against sellers, the strongest of which is permanently terminating business cooperation.
It can be seen that preventing counterfeit and fake goods is a challenge for both regulatory agencies and e-commerce platforms. However, businesses and brands can provide sufficient documentation proving the authenticity of their products and file complaints with suppliers to request the closure of counterfeit shops to avoid affecting their own reputation and consumers.
Dealing with misleading advertising requires more than just action from consumers
Advertising a product falsely is not only unethical but can also potentially violate the law. This action can have negative consequences and harm consumers, leading to dissatisfaction and a lack of trust in the brand. Additionally, it may result in legal repercussions and damage to the company's reputation.
Regulatory agencies and standard-setting organizations regularly monitor and control advertising strategies to ensure honesty and transparency. Consumers also have the right to protect themselves by submitting complaints or reports to regulatory agencies if they encounter inaccurate advertising information.
If you are a manager or marketer, create advertising content that is truthful, transparent, and compliant with advertising regulations. This not only helps protect the company's image but also enhances trust from customers.
If you are a consumer, be savvy and evaluate advertising information objectively. If you discover inaccurate advertising information, report it to the appropriate authority so they can address the issue.
UpBase - A partner collaborating to ensure product quality for consumers
UpBase, a Technology Joint Stock Company, is an eCommerce Enabler that accompanies businesses and brands in their growth and development on e-commerce platforms. UpBase is currently a Premium Partner of Shopee (Shopee Premium Enabler Program), a 3-star partner of Lazada, and an official partner of TikTok Shop.
Choosing sustainable business practices, maintaining product quality, providing excellent services, and ensuring good customer care are essential factors that contribute to the revenue growth of businesses on e-commerce platforms. These are values that UpBase prioritizes when selecting partnerships with businesses and brands.
For businesses, brands, distributors, and sellers who have engaged in collaboration with UpBase, our strategic team always conducts in-depth research and analysis on the brand, product quality, and origin. This ensures that the advertised product quality reaches consumers and enables us to devise accurate development plans and strategies for businesses and brands on e-commerce platforms.
