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L’Oreal offers vouchers to end spat with China’s “lipstick brother” -Breaking

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© Reuters. FILE PHOTO: Staff members work at a hair salon of L’Oreal in Beijing, China November 18, 2021. REUTERS/Tingshu Wang

Sophie Yu and Mimosa Spence

BEIJING/PARIS, (Reuters) – L’Oreal France is giving shopping vouchers to Chinese customers in settlement of a dispute about discounts. The discount controversy drew the ire from two top livestreaming sales figures.

Li Jiaqi is also known as Viya (or “lipstick brother”), and shared details on the compensation program to his followers in a livestreaming video event that took place late on Thursday. L’Oreal Paris has confirmed details via its Weibo account (NASDAQ:).

After some of their followers claimed that the facial products they promoted for the greatest discounts during the year, the duo announced this week that they have cut all ties to L’Oreal. Alibaba L’Oreal’s Singles Day promotion for Groups could be bought less than a week later via its platform.

This spat has brought to light the influence of Chinese pop culture figures and the dependence on these personalities by retailers for their products.

Li, 29, who counts 47 million followers on his Taobao livestream room and Viya, 36, who counts 92 million, have risen to become two of the country’s most influential shopping hosts.

Li began his career in cosmetics sales. His popularity has been built on entertaining, and sometimes, critical, commentary about cosmetics. He is famous for trying hundreds of lipsticks at once.

Viya won a Chinese singing competition early in her career. She rose to prominence selling fashion clothing and houses.

With a casual, relaxed conversational style she has built her fan base.

The news that Viya Li and Li had stopped their collaboration with L’Oreal gave the company 24 hours to develop a compensation plan for customers misled by shopping discounts. It became the topic most popular on China’s Weibo social network, which saw 450 million visits on Thursday.

The pair said that L’Oreal will offer a 200-yuan coupon ($31) for consumers who have spent over 999 Yuan in the past 11 days on the facial masks at center of the controversy. This can be used to purchase any L’Oreal product.

If you spend less than 999yuan on facial masks purchased, two coupon codes are valid. Each coupons is worth 100yuan and can be used for a maximum of 499yuan.

L’Oreal, who apologized for “too complicated” promotion mechanisms to customers, said it earlier had found a constructive solution.

Chinese media reported that Li and Viya sold 18.9 billion Yuan ($2.96 Billion) of products on October 20th in promotions for Singles Day. China leads the luxury cosmetics and luxury goods sales growth.

($1 = 6.3881 renminbi)

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