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Celebrity economy set for explosive growth in China(2)

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2016-03-16 09:19China Daily Editor: Qian Ruisha
Zhao Daxi, nearly 300,000 followers on Sina Weibo. She setup a store on Taobao when she was still at college. By interacting with her fans and choosing the most popular designs for mass production. She tasted success. She used the sales proceeds to setup a small clothes factory woth 100 empolyees by the time she graduated in 2013. (Photo provided to China Daily)

Zhao Daxi, nearly 300,000 followers on Sina Weibo. She setup a store on Taobao when she was still at college. By interacting with her fans and choosing the most popular designs for mass production. She tasted success. She used the sales proceeds to setup a small clothes factory woth 100 empolyees by the time she graduated in 2013. (Photo provided to China Daily)

"They share their views, experiences and expertise. That saves me time as I don't have to go searching online for clothes or bags. The Internet can be confusing, even stressful, as countless items vie for my attention. Also, the clothes recommended by these cyber stars are very suitable for everyday use. Their prices are not that high compared with those advertised and discussed in fashion magazines," Qi said.

A report published by Guotai Junan Securities Co in January said each Internet celebrity is a brand in herself/himself that caters to diverse, fragmented demands of online shoppers. "The market driven by Internet celebrities in China has great potential with the clothes sector alone being estimated at more than 100 billion yuan."

What's more, the overall size of the Wanghong economy is growing as cyber stars are going beyond the fashion industry and into online gaming, travel and baby products, according to the report.

Ge Wei, vice-president of Youku Tudou Inc, a leading online video site in China, said more and more Internet celebrities are publicizing their lifestyle through online videos.

"There are plenty of business opportunities out there as long as you build up a clear image," she said. "We have a travel program made by a Chinese father in Japan. It is basically about taking his two children out to eat and play, to generally have a good time. But every time he uploads a new video, sales of his Taobao shop go up," she said, adding the program has 110,000 subscribers online.

But an online store on Taobao is not essential for Internet celebrities to rake in the moolah. Cooperation with established brands could take the form of embedded subliminal advertisements in their videos, or hyperlinks in their Weibo posts and online articles.

"These cyber stars are not like superstars who need to maintain some kind of image as idols. Cyber stars are more linked to the grassroots, they are not afraid of being themselves, so their programs are more entertaining and better meet the tastes of young netizens," Ge said.

Ding said if someone wants to earn his/her first 100 million yuan the fastest way, they must consider becoming an Internet celebrity.

"It's like ... in 2008, the best way to succeed in e-commerce was to open an online store on Taobao. In 2013, it was to open an online store on WeChat, an instant messaging app by Tencent Holdings Ltd. Now, in 2016, the best way is to become an Internet celebrity," Ding said. Internet celebrities not only help boost sales but change the way how products are sold online.

Wen of Mobile Taobao said traditional clothing brands usually choose a certain number of designs out of all the options, based on their sales projections. They then produce clothes in thousands or more for each of the chosen design.

"But Internet celebrities such as Zhang Dayi post photos of themselves. Zhang wears a large number of designs and immediately knows what her potential buyers feel about them. She and her team then decide which one should go into mass production," said Wen.

Internet celebrity-run firms are flexible enough to alter designs, colors and sizes of garments based on the feedback from their fans. This flexibility gives their business the dimension of bespoke tailoring that meets specific needs of fans-cum-customers.

Being a cyber celebrity is not just about publishing a few attractive photos online. According to Wen, 1,000 photos of Zhang Dayi are clicked a day, out of which only a few best ones are selected and published online. This is to ensure her taste for good clothes appears distinctive.

Interacting with followers on Sina Weibo is also important.

"Some of the girls send me messages online not only to exchange ideas on how to dress every day but share their experience of job interviews or finding loved ones. I'm truly happy when hearing about these things," Zhang said in a previous interview.

  

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