When brightly dressed female hosts dance energetically in livestreams, Chinese consumers might recall Coconut Palm Group—the beverage company known for its bold slogans and distinctive packaging. This legacy brand is attempting a controversial approach to find new growth in the booming live commerce sector. But can this "black marketing" strategy truly reverse its declining market share and reshape its brand image?
Provocative Livestreams: Coconut Palm's Viral Formula?
Coconut Palm Group's entry into live commerce has drawn widespread attention, though not necessarily for its sales performance. The company's signature attention-grabbing style remains its most notable feature. In livestreams, young female hosts wear form-fitting outfits in vibrant colors while performing what many describe as "cheesy" dances. This approach has sparked heated debates online, with critics calling it "softcore marketing" while others view it as brand consistency.
Regardless of public opinion, the strategy has generated remarkable visibility, repeatedly landing the company on trending lists. This "fame through controversy" approach isn't new for Coconut Palm. The company has faced multiple penalties for its provocative advertisements—including a 2019 fine of 200,000 yuan for packaging featuring "busty models" with claims of breast enhancement effects, and a 2021 penalty of 400,000 yuan for recruitment ads promising "cars, houses, high salaries, and attractive partners." Despite regulatory actions, the company continues flirting with marketing boundaries.
Views Versus Sales: The Paradox of Coconut Palm's Livestreams
While controversial, Coconut Palm's livestreams attract massive audiences. Data shows its official Douyin account has amassed nearly 300,000 followers with rapid growth, regularly exceeding 10,000 simultaneous viewers shortly after broadcasts begin. However, this engagement hasn't translated into significant sales—monthly revenue reportedly ranges between 10,000-25,000 yuan, with some sessions generating as little as 500-750 yuan.
Company representatives attribute low sales to purchase limits, suggesting the primary goal is brand exposure rather than direct commerce. When questioned about the suggestive content, a spokesperson stated they were "unaware of public feedback" regarding the livestreams.
Market Pressures: A Brand Losing Relevance
Coconut Palm's provocative tactics may stem from growing market challenges. The company's market share has steadily declined from 50.3% in 1999 to 26.32% in 2019, signaling waning consumer interest. Meanwhile, emerging beverage brands—particularly milk tea and coffee products—have gained ground through flavor innovation and contemporary marketing, leaving Coconut Palm's single-flavor coconut drink struggling to attract younger demographics.
Rebranding Crossroads: Which Path Forward?
The company has experimented with alternative strategies, including a collaboration with Luckin Coffee centered around "copycat celebrity poses," though this yielded limited results. Its current livestream push represents another attempt to reconnect with younger consumers.
While the controversial approach generates attention, it carries significant risks. Overreliance on provocative content may alienate consumers and damage brand equity. Furthermore, regulatory scrutiny is intensifying—Hainan's market regulator confirms receiving multiple complaints about the livestreams and is monitoring the situation closely.
For sustainable revitalization, Coconut Palm may need to move beyond shock tactics. Product innovation, quality improvements, and cultivating a positive brand identity could prove more effective for long-term competitiveness than temporary viral moments. The company's livestream experiment demonstrates boldness, but whether "black marketing" can drive meaningful brand renewal remains uncertain. Lasting success may require balancing attention-grabbing tactics with substantive value creation.