Chinese digital influencers fuel massive 'fan economy'

Mar 13 , 2017

Luxury brands are leveraging Chinese celebrities and digital influencers to target millennial consumers

Liang Tao was left stunned by the buying power of his fans after all 80 of the 14,900 yuan (HK$16,800) Givenchy bags he co-created sold out within 12 minutes on WeChat.

The 25-year-old founder of fashion blog Mr. Bags is among the rising band of Chinese entrepreneurs converting digital influence into sales, and attracting the attention of luxury brands eager to cash in on the huge “fan economy”.

“The fan economy has transformed from relying mainly on merchandise to being spontaneously multidirectional,” says Angelito Perez Tan jnr, CEO of RTG Consulting. “There are numerous channels for celebrities and key opinion influencers to monetise their influence directly and the rewarding systems the platforms use are also fostering changes in user habits and business models.”

“It’s a myth that people don’t buy luxury online,” says Liang, a Columbia University graduate. “My initial followers were Chinese college students who were also studying overseas. It was normal for them to spend more than 20,000 yuan on luxury items a month.”

Liang Tao, founder of Mr Bags, expands his digital influence to offline fan events.

Liang, who has more than 2.7 million Weibo followers and whose posts on WeChat easily generate over 100,000 views, is a regular on the front rows at Fendi, Valentino and Dior’s fashion week.

Also cashing in on her loyal fan following is journalist-turned-blogger Fang Yimin, founder of Becky’s Fantasy, who has collaborated with Burberry, Tiffany and Chanel. More than 900 bags she co-designed with American brand Rebecca Minkoff sold out within two days online.

Fashion bloggers such as Mr. Bags have wasted little time expanding their boundaries by hosting events and gatherings with fans often sponsored by luxury brands and retailers.

Liang hosted a fan meeting at New York’s Bergdorf Goodman, where some followers snapped up dozens of Mansur Gavriel’s iconic bucket bags apiece.

“The shop had just got new stocks of the Mansur Gavriel bags that morning and all of them sold out after my event,” Liang says.