How digital fans clubs become a revenue stream for many businesses
The Korean wave has spread out worldwide, resulting in mushrooming fandoms of numerous boybands and girlbands and the rise of the fans economy. I was a fan of Super Junior when they were very popular among teenagers from 2007 to 2015. I always kept myself updated about them from ELF fandom (fanbase of Super Junior) on Facebook and Twitter. I also spent so much money buying their albums, collecting merchandise, and joining their world tours twice.
A K-Pop fandom comprises fans who love the same idol and share the same interests and cultural tastes. K-Pop fandom may have sub fandoms to cater to smaller groups of fanbases, for instance, based on country. Their common activities are sharing and translating updates about the idols and discussing different interpretations to ensure that all K-Pop fans understand. Their creativity, dedication, and solidarity make K-Pop fandoms powerful.
Social Media and Fans Economy
In fandom culture, everything starts with interaction: between the fans and the idol and between fellow fans. This interaction mostly happens on social media, especially interactions in K-Pop fandoms. Social networks built by the fans and the strong connection among them are tools for the idols and label companies to promote the bands. For instance, BTS has a strong social media presence. They regularly share vlogs and selfies to promote their albums and interact with fans. ARMY (BTS fandom) ensures the bands' success in music charts and awards by encouraging and reminding their followers to support and vote for BTS on their social networks. "The more data-savvy and proactive your fans are, the more power they have to impact charts," said one of BTS on Billboard! Twitter account administrators on Forbes. On the other hand, BTS' label company, Hybe (formerly Big Hit Entertainment), sells BTS merchandise and other artists under the company to the global market through global stores, such as Weverse (a community app launched by Hybe), Amazon, etc.
It delineates the concept of fans economy. The relationship between fans and idols is the commodity to earn economic and social benefits. Hybe is not the only one that enjoys revenue growth from ARMY. Mcdonald's, Converse, CGV Cinema, and many other brands collaborate with BTS to promote the brands because BTS ARMY is one of the most active online communities and perhaps the world's most powerful fandom.
Do you that notice today more brands appoint Korean idols to endorse their products? Share it if you remember one or more! And do you think brands should target fandoms?
Hi Pheseline,
I find this blog very relatable! I am a k-pop fan myself, and I surely know how k-pop can help generate profits! Simply pointing out one, I was a huge fan of Twice, and I bought a ticket to Singapore just to see their concert, although indirectly, this helped the airline, hotel and restaurants earn money. Back to the main topic, I was also a fan of EXO, and a Korean skin care brand “Nature Republic” has partnered up with EXO to sell their products. I have been purchasing Nature Republic products ever since, until now, even after I have no interest in EXO. Nature Republic has created a brand loyalty with me through the help of k-pop.
Thank you for the very insightful blog post. I think what’s really interesting is this makes us think about how significantly the shift has been of self promotion as well as how social media has become the primary economic booster for these Kpop idols and bands. It also makes you think about how much the social media scene has enhanced the fanbase not by just allowing the fans to communicate with one another but by exposing people who would’ve never come across Kpop in their day to day lives thus gaining their interest too.
Brands have clearly seen this and discovered that it can be a huge selling point for them which is honestly a very smart marketing staggery and…
Hi Pheseline,
The concepts of Fans economy really fascinates me. As I am not part of a fandom, the cult like following that a lot of these bands enjoys really intrigue me. And it is easy to say that this level of engagment enjoyed by these big brands must be a gold mine for a lot of producers. And to be honest, I am really interested in knowing just how did K-Pop buildup such as large following of loyal fan base - how are they different from western bands which seems to have faded in popularity in the recent years.
And on the topic of fandom, this also remindes me of the concept on parasocial realtionships and its impact on…
Hi Pheseline, really enjoyed this post (what can I say, I’m an army)!
One of the main events I can think of is the BTS and McDonald’s, where sales for certain items on the meal menu increased by up to 250%. I think the true power of the fan community is seen when products that members are not advertising, but merely in the presence of, are sold out. I do believe that companies need to be wise about the ambassadors they do incorporate - as the bigger the fanbase, the wider the demographic within it and fans are able to buy to their capabilities.
However, I wonder whether the use of Asian brand ambassadors is due to the fans or…
I have noticed that more and more luxury brands are using Asian models or celebrities to market their brands. A lot of it has got to do with the Asian Century, which in short, refers to the economic dominance that Asian countries possess.
Fun fact: Asia accounted for more than half of the worlds economic output for 18 of the last 20 centuries. It’s no wonder that there is a shift in how brands are marketing their products.
With that being said, I am more inclined to believe that this is the main reason for brands opting to choose Asian models and celebrities as their brand ambassadors. I don’t think we can discount the power of online communities like the…