“The Secrets Behind Shark Binh’s Livestream Success: Why Brands are Willing to Take a Loss”

In a behind-the-scenes video from the recent seventh season of Vietnam’s Shark Tank, when asked about the current trend of livestream selling, NextTech Chairman Nguyen Hoa Binh shared that he has participated in livestreams and found himself to be quite charismatic.

Looking globally, Shark Binh pointed out that this trend is so popular in China that it’s commonplace for officials, chairpersons, and CEOs of enterprises to engage in livestreams to set an example and host key live sessions to boost e-commerce.

“However, in Vietnam, business leaders are still absent from this channel, perhaps due to various reasons. Consequently, KOLs (Key Opinion Leaders) and KOCs (Key Opinion Consumers) remain the dominant forces in livestream sessions,” Shark Binh noted.

At the same time, he also revealed the “hidden secrets” behind these livestreams. Firstly, many livestreams attract a massive audience because these key live sessions collaborate with platforms that prioritize boosting their traffic. According to Shark Binh, without the coordination and support of these platforms, such high traffic would never be achievable.

Secondly, it is typical for brands to commit to offering steep discounts or even selling at a loss during key live sessions in exchange for the platforms’ support. “The platforms drive traffic, offer vouchers, and provide free shipping, so the participating brands must also commit to significant price reductions and promotions. As a result, many livestreams we see have enormous sales volumes but little to no profit, with brands even incurring substantial losses. However, they accept this, treating it as a form of publicity and brand promotion,” Shark Binh explained.

“The KOLs and KOCs are the primary beneficiaries. Some sell 50 billion VND, 70 billion VND, or even 100 billion VND… They are hired as brand representatives and are paid a few hundred million VND, plus a small percentage of the order value from the live session. The brands themselves handle the sales, taxes, and other logistics,” the shark added.

According to publicly available information, the livestream that achieved the highest sales revenue in Vietnam to date belongs to the couple Nguyen Lan Anh and La Quoc Quyen, owners of the TikTok channel “Quyen Leo Daily.” Their 17-hour livestream generated an impressive 100 billion VND in sales.

Prior to this record-breaking session, the couple had also astonished viewers with a 75-billion-VND livestream. They attributed their success to the collaboration between TikTok Shop, the brands, the TikTok channel owner, and the customers. TikTok Shop offers numerous vouchers during these livestreams to attract new users, while the brands accept minimal or no profit to gain extensive publicity compared to advertising on other platforms.