Trading on celebrity

Internet stars are now using their brands to rake in the cash from online shoppers

Zhang Dayi isn't a movie star, nor does she appear on TV. Her celebrity has grown purely online, yet an endorsement from her can send sales of a product soaring.

The former fashion magazine model, 28, has won millions of fans online by regularly posting selfies across social media and offering style advice - and now she is cashing in.

In May 2014, she opened Wuhuanxide Yichu (The Wardrobe I Like), a store on online marketplace Taobao that sells women's clothes designed and made by her team. Thanks to her massive social media fan base, the shop has been a roaring success.

Zhang is among a growing number of cyberstars - known as wanghong in Mandarin - who are capitalizing on their celebrity to build thriving businesses that target China's army of Internet users.

According to data from Taobao, Web celebrities owned half of the 10 biggest selling womenswear stores last year.

"These stores don't advertise or take part in sales events," says Wen Zhong, director of Taobao's mobile Internet division. "Instead, they turn their customers into fans and offer enhanced shopping experiences by getting the celebrity to interact with them online. They monetize that celebrity influence."

Qi Ting, for example, follows several Internet celebrities. The 25-year-old says the style guidance saves her time, "as I don't have to search endlessly online for clothes or bags", and that prices are often lower than products highlighted in fashion magazines.

Wen predicts the so-called wanghong economy could explode, as cyberstars appeal to a diverse range of shoppers.

A recent report by Guotai Junan Securities Co appears to agree. It says the sector has "great potential" and estimates that the clothing sector alone is already worth more than 100 billion yuan ($15.3 billion; 13.8 billion euros). It adds that Web celebrities are now branching out into online gaming, travel and baby products.

Ge Wei, vice-president of Youku Tudou Inc, which runs several video-streaming websites, says more cyberstars are also publicizing themselves through online videos.

"There are plenty of business opportunities out there as long as you build up a clear image," she says. "We have a travel program made by a Chinese father in Japan. It's 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 on his Taobao shop go up."

Having an online store isn't essential, however. Some people merely use product placement in their videos, or add a link to a partner company's websites when they post on social media.

"Internet celebrities are not like (traditional) superstars who need to maintain some kind of image," Ge says. "They are more linked to the grassroots and are not afraid of being themselves, so their programs are more entertaining and better meet the tastes of young Internet users."

In fact, online stars are not only helping boost sales, but also changing the way products are being designed and sold.

Taobao's Wen says traditional clothing brands usually choose a product design based on sales projections, then produce their clothes in large quantities.

"But Internet celebrities like Zhang post photos of themselves wearing many different designs and can know instantly what potential buyers feel about them. Then they decide which one to go with," he says.

This allows greater flexibility to alter products to suit customers based on feedback from fans, giving them a more bespoke feel.

Of course, being a cyberstar means more than just posting selfies online; fan engagement is a major ingredient of the wanghong economy.

"Some girls send me messages online not only to exchange ideas on how to dress, but to share their experiences of job interviews or finding loved ones," Zhang said in an earlier interview. "I'm truly happy to hear about these things."

Ma Si contributed to this story.

mengjing@chinadaily.com.cn

(China Daily Africa Weekly 03/18/2016 page31)