In recent years, a curious trend has emerged: affluent celebrities and business magnates are flooding livestream platforms to hawk ultra-cheap products, some priced as low as $1.50 with free shipping. What drives this phenomenon? The recent controversy surrounding Hong Kong media personality Chan Lai’s livestream sales offers revealing insights.
A Livestream Debacle: When Trust Erodes
On January 26, Chan posted a festive video promoting an upcoming livestream sale with promised New Year gifts. The celebratory mood shattered when a top comment alleging “quality issues, no refunds allowed” sparked a wave of consumer complaints.
Viewers reported receiving allegedly counterfeit cookies, undelivered promotional items, and orders like $1.50 heating patches that never shipped. When confronted, Chan merely tagged her team’s customer service account before deleting both the video and critical comments. Though her profile now shows curated positivity, the episode exposed systemic product quality concerns.
The Data Behind the Hype
Third-party analytics reveal Chan’s livestreams generated $75–100 million in 30 days, with single sessions exceeding $20 million. Her follower count surged by 110,000 in one week, nearing 10 million total. Yet this scale magnifies risks: when a top influencer’s products falter, fallout spreads exponentially.
Notably, Chan’s average order value sits at just $7.23, with most items under $28. The inventory includes toothbrushes, soy sauce, and disinfectant wipes—plus “flash sale” items priced as low as $0.69. This bargain-bin approach has drawn criticism from audiences expecting luxury goods from a famously wealthy host.
The “Loss Leader” Trap
In livestream commerce, ultra-cheap items function as “hook products”—loss leaders that attract viewers and create buying momentum. Typically time-limited, these deals rely on high volume for profitability, incentivizing cost-cutting that compromises quality.
While effective for short-term traffic spikes, hook products risk long-term brand damage. Chan’s case demonstrates the consequences: after quality complaints surfaced on January 27, she lost 16,000 followers, and viewership dropped to 8.1 million from previous highs exceeding 30 million.
Beyond the Hype: Quality as the True Currency
The incident underscores a pivotal lesson for livestream commerce: while traffic matters, sustainable success requires product integrity. Effective hosts must not only draw crowds but retain them through reliable quality and service.
For brands and influencers, prioritizing reputable suppliers and robust customer service builds lasting trust. Over-reliance on cheap “hook products” may yield quick wins but ultimately erodes consumer confidence—a lesson increasingly relevant as audiences grow wary of gimmicky deals.
Global Implications for E-Commerce
This case holds particular significance for cross-border sellers. As consumers worldwide grow more quality-conscious, international merchants must elevate product standards and supply chain oversight. Comprehensive after-sales support also becomes critical for maintaining trust across markets.
Chan’s livestream stumble serves as both cautionary tale and opportunity—a reminder that while viral moments fade, product excellence remains the foundation of enduring commerce.