Fan Economy: How Idols and Fans Drive Real Consumption
What is Fan Economy?
The fan economy is a phenomenon where fans of a particular celebrity or influencer create a thriving market around their idols. It’s a market that revolves around fans’ support of their idols by consuming their products, attending their events, and promoting them on social media. It has become a popular trend across the world, but certain regions have shown the highest fan economy development.
One of the regions that have demonstrated exceptional growth in the fan economy is China. In recent years, China’s fan economy has witnessed remarkable development, which has led to the emergence of a new class of celebrities — the “idols.” These idols are a subset of celebrities who are carefully crafted to attract fans through their looks, personalities, and stories. Chinese fans are more likely to follow these idols based on their personalities rather than their artistic achievements.
Chinese fans are also known for their willingness to spend money on their idols. They see it as a way to show support, and they do it with pride. According to a survey, about 40% of Chinese fans spend more than US$850 annually on their idols. This level of devotion has driven the fan economy in China to new heights, with a market size of 4,942 billion yuan in 2021. Experts predict that it will reach 6,423 billion yuan by 2023.
Who Dominates the Fan Economy?
Idols are the ones who dominate the fan economy in China. They are a subset of celebrities, mainly from Japan or Korea, who are good-looking and likable. Their looks, personalities, and stories are all carefully crafted to attract the most fans. Chinese fans are more likely to follow idols and celebrities because of their personality rather than their artistic achievements. They’re also willing to spend money, with 40% of them spending US$850 or more a year on their favorite idols.
The Chinese fan ecosystem is not only active but also tech-savvy. The growth in the past few years has been made possible by apps that allow fans to organize, raise funds, and spend on behalf of their favorite stars.
How Do Chinese Idols Make Money?
In addition to appearing in commercials and becoming brand spokespersons, Chinese celebrities can also “move goods” and drive real consumption. Idols often endorse a product and explicitly ask their fanbase to buy it. In China, fans understand and support this behavior. Fans are proud to contribute to the idols’ commercial success. In other words, Chinese fans buy products not because they trust their idol’s taste or want to imitate them, but because they want the idol to make more money.
How Do Fan Clubs Work?
Most of the fan groups are self-organized and highly structured. The community leaders typically communicate directly with the idol’s management team and often work full-time for the fan club. Each fan group’s purpose is different, but they mainly focus on “exploiting the business world for the benefit of their idols”. Apart from product promotions, there’s a lot of digital click farming. Most of these activities are rather harmless, like making an idol top the Weibo hot search list. Still, others, like cancel demands for a rival idol, are clear cyberbullying.
What Do Chinese Fans Want?
While in the West, a loyal fan’s goal is primarily to support the creator’s artistic output. In China, artistic output is secondary to the connection fans have with their idols. What tops the list for Chinese fans is the well-being of their idols, which is often measured in wealth, recognition, popularity, and more.
In Conclusion
China’s fan economy is thriving, and it is being dominated by idols who are driving real consumption through their fans. Chinese fans are more likely to follow idols and celebrities because of their personality rather than their artistic achievements. The Chinese fan ecosystem is active, and tech-savvy, making use of apps that allow fans to organize, raise funds, and spend on behalf of their favorite stars. While there are issues of cyberbullying and other harmful activities, the fan economy continues to grow, and it’s becoming a vital part of the entertainment industry in China.
