Social media and big data have ‘fundamentally changed’ our society and will continue to do so as online platforms evolve. Businesses must adapt quickly to survive in the new internet environment or risk being left behind by competitors. A case in point is the Asian restaurant giant, Haidilao Hotpot.
Compared to what it is now, China’s restaurant business was still rather traditional in 2011. It made an effort to provide high-quality goods and allowed customers to spread the word about them. At that time, Haidilao Hot Pot made the decision to set itself apart from its rivals and provide the greatest customer service and communication possible. ‘Consumer is God’. For example, 24-hour service and free nail and hand care in the waiting area while queuing. Haidilao has shortened the emotional distance between itself and its customers through its comprehensive service and sincere attitude, increasing their loyalty and stickiness to Haidilao.
https://www.irishtimes.com/life-and-style/food-and-drink/the-restaurant-offering-free-pedicures-and-manicures-with-your-hot-pot-1.3651704
In such an environment, a post on Weibo about the feelings of Haidilao employees became popular. The author elaborated on the experience of feeling happy by providing the best service to customers at Haidilao, and the comment section was flooded with comments from satisfied customers.
A form of co-creation has resulted from the Internet’s decentralised nature and interactive features, increasing citizen involvement and participation in what appears to be a silent “revolution.” The popularity, reach, and simplicity of Weibo in the realm of economics are sufficient to bring about a revolution in marketing. Weibo’s open platform will provide Haidilao access to various revenue streams and assist Haidilao in keeping tabs on the price of its online advertising. The attention and opinions of the fans will help draw more attention to the business and immediately attract potential clients. Haidilao has had great success harnessing the beneficial effects of the internet to generate constant buzz in terms of word-of-mouth marketing.
However, the secret to Haidilao’s sustained success in recent years has been the UGC effect. Freedman makes the argument in one of his essays that the new economy brought on by the internet has made it possible for businesses to benefit off the unpaid labour of users, sometimes known as “user-generated content” (UGC). User-generated content (UGC) indicates a more collaborative form of creation while also being incredibly cost-effective as a way to produce free material, aiding advertisers and marketers in more precisely identifying and targeting their target market.
On the internet, Haidilao has cast a UGC “marketing net.” More devoted Haidilao fans are offering their advice on the Chinese social media sites Xiaohongshu and tiktok with postings like “Haidilao tiktok eating,” “Haidilao money-saving methods,” and others as a result of the variety of the restaurant’s cuisine and sauces. Even more, TIKTOK introduced a Haidilao money-saving competition, which inspired users in China to create impromptu videos and attracted over 100 million viewers worldwide.
While Haidilao has utilised this “huge net” to increase visibility and reap practical advantages, it has also provided TIKTOK with a wealth of information and content. Overall, it’s a win-win situation.
Users are delighted to contribute their cost-cutting advice, the media platform keeps reaping rewards for its content. And Haidilao hotpot restaurants, which operate like technology companies, still continue to widen their marketing net. According to Freedman, this is not a case of Orwellian “group mentality,” but rather a chance to use technology to tap into the creativity and ideas of millions of regular people.