“Influencer Economy+” How to boost the new consumption cycle

At the policy level, influencers have been regarded as an important resource and element in the new economic era, focusing on market incubation, and urged the influencer economy to evolve in a wide area and in depth.
The "2020 China's influencer economy business model and trend research report" released by IMS is a major event that has attracted much attention in the industry this year.


Two important data in the report are particularly worthy of attention:

 

  • In the past five years, China's GDP growth rate has stabilized at around 6%, which is far lower than the growth rate of the new economy based on the Internet (the latter has maintained a growth rate above 20% for a long time).

  • “The fan economy format built on consumer life, cultural entertainment and online media tracks is already an important driving force for the innovative growth of the new economy. In 2019, the scale of the fan economy-related industry exceeded 3.5 trillion yuan, with a growth rate of 24.3%. In the next five years, it will maintain a steady growth rate of about 15%, and influencers and KOLs (opinion leaders) are the absolute center.


Since the beginning of 2020, the influencer economy has continuously infiltrated various vertical areas of the consumer market. The business model has shifted from advertising in the past to e-commerce with goods, and then integrated into everyone's lifestyle. Everyone can become a smallest economy.
Recently, local governments, including Guangzhou and Hangzhou, have successively introduced policies and measures with considerable stimulus to bring the influencer economy into the government's planning vision. " Influencer Economy+" has truly entered the mainstream track and has become a new consensus among all sectors of society.
 

01 Why is it said that the important value of " Influencer Economy +" is to boost the efficiency of the domestic market?

Starting in 2019, China's per capita GDP has reached 10,000 US dollars. 2020 is the starting point for China's per capita GDP to move from US$10,000 to a high-income period of US$15,000. The top priority is to improve the service industry and the economic efficiency of the domestic consumer market.

Start from 2019, China's per capita GDP reached 10,000 US dollars. There are two important meanings behind it:

  • The size of China's economy is large enough. For every 1% increase in the future, the absolute economic growth will be a large number. The past growth methods, such as opening many production lines in factories and building many houses in cities, have been unable to support sustainable high growth.

  • Since 2013, the Chinese economy has begun to switch tracks, driven by the continuous growth of the domestic consumer market. Among the four major variables of economic growth-consumption, investment, foreign trade, and government procurement, the contribution rate of the consumer market has exceeded 50%.

 

Based on the above background, I believe that the important value of " Influencer Economy +" is to promote the economic efficiency of boosting the domestic consumer market, not just how much goods the influencers bring and how much KOLs spread.

02 How does "Influencer Economy+" promote the efficiency of the social consumer market?

What will China's sustained and rapid economic growth depend on in the next few years? Activation efficiency. There are two main sources of efficiency: 1. Lasting consumption boom 2. Digitalization of the economy. " Influencer Economy+" is very useful in two aspects.


In general, the " Influencer Economy+" has become a mainstream business variable that has deeply penetrated into China's economy. There are three main indicators:

  • The volume continues to grow, and the income structure is continuously optimized.

  • The value output of influencers and KOLs continues to iteratively upgrade.

  • The systematization of influencers and KOLs capabilities will be the moat of the new economic era.

03 Why is it said that " Influencer Economy+" can provide traction for " New Infrastructure Construction "?

Most of the commercial forms of the influencer economy can immediately turn into money, especially in times of crisis, which can immediately create cash flow for 60 million small and medium-sized enterprises in China.


The " New infrastructure construction " has built the foundation of China's economy, while the " Influencer Economy+" continues to create bright spots in the terminal of the consumer market. The two improve separately and jointly prosper the macroeconomic ecology.

04 Why is " Influencer Economy+" a commercial bonus that you can't miss?

From 2016 to 2020, influencers and KOLs (opinion leaders) have gradually become new variables in the new economic sector. Once the click era marked by portals (Sohu, Yahoo), the search era marked by search engines (Google, Baidu), including e-commerce platforms such as Alibaba, were also search mechanisms (product and brand search guided traffic) until Today, the era of influencers, marked by influencer e-commerce, has realized an efficiency upgrade of a recommendation mechanism.


Search engines are more efficient than portal websites, and influencer live video streaming are more efficient than search engines. The efficiency improvement of the influencer economy eliminated all the links that have no value among products and consumers. Influencers and KOLs are both advertising spaces and shelves. The influencer’ lines, interactions, and action details continue to improve, creating a consumption scene with the best visual effects and greatly improving the marketing output of the brand company.


If you fail to grasp this vent in time, you will compete with the influencers, and you will be suppressed and bear the consequences of the commercial revolution; if you step on this vent and "follow" the influencers to compete, you will be motivated , enjoy the dividend of the times.

  • Facebook Social Icon
  • LinkedIn Social Icon
  • Twitter Social Icon

To keep up with China Market, please check our Linkedin