Why Influencer Marketing Is a $9bn Industry in China
Influencer marketing in Asia has come a long way. Influencer marketing is now a $9 billion industry in one region of Asia, China. China has become an ideal region for any company because it is the second-largest gross domestic product. Still, it remains a relatively opaque market for many international brands. Because of the differences between the western and Chinese social media worlds, marketing strategies that work in the US and European markets might not work in China. It, on the other hand, makes the nation a desirable market to join.
Although Influencer Marketing is worth about $7 billion in the United States, it is worth about $16 billion in China, contributing significantly to the $9 billion industry’s growth. There is some disagreement as to whether influencer marketing is the right path to take. According to statistical records, it is estimated that China’s influencer industry will be worth over $15 billion in the coming years. The majority of marketers will raise their digital marketing budgets in years to come.
China has established its own digital ecosystem in the absence of social media sites such as Facebook, Twitter, and Instagram. For instance, in China, the word “influencer” is referred to as “Key Opinion Leaders.” While they are similar, there is one significant difference between a KOL and an influencer. KOLs are the “favorite” personnel because their followers often trust their subject of expertise.
Second, China has its collection of social media sites, the most notable ones: WeChat and Weibo. With a population of 1.3 billion people and a slew of new social media outlets launching daily, it’s difficult for brands to stand out in China’s oversaturated influencer market.
As a result of the Chinese government’s strong censorship, consumers have become wary of conventional media and rely heavily on what they hear, which places a high emphasis on promotions. Influencer marketers in this region are most familiar with their target audience. They have a detailed understanding of the types of content that cater to their tastes, resulting in valuable interaction.
Another fascinating factor to consider when dealing with China is the prevalent number of active mobile phone users. According to Forbes, smartphone users account for 98% of all active internet users in China. Adding to this is the fact that in China, there is no age limit for smartphone penetration. This increases the brand’s future e-commerce market appeal as well as its ability to attract people aged between 8 – 80.
This trend is slowly reshaping China’s digital infrastructure, with Wechat being the most well-known example, which can be used as a wallet, social media platform, shopping, taxi, food delivery, and more.
There is no doubt that Key Opinion Leaders marketing will continue to expand and become a requirement of marketing strategies in China, but in what shape or form will depend on how the market and digital culture develop. This has helped brands in China in promoting their products.