Virtual idols, such as Liu Yexi, are gaining immense popularity on platforms like Douyin (the sibling app of TikTok). Liu Yexi, a virtual beauty blogger, quickly attracted millions of followers with her debut video, showcasing her makeup skills in a traditional Chinese style. Virtual idols are not new, but the rise of social media platforms has allowed them to engage with fans more intimately. In China, the popularity of virtual idols is closely tied to the rise of Bilibili, a video platform favored by ACG fans. These virtual idols, known as Vtubers, appeal mainly to Gen Z consumers, who grew up in the internet era. Brands are recognizing this market and collaborating with virtual idols to communicate with this demographic. The appeal of virtual idols lies in their immunity to scandals, unlike real-life celebrities. However, the creation of virtual idols is a costly process, with high upfront and operational costs. Despite this, multinational brands are already commissioning virtual idols for promotional campaigns, and the future holds potential for virtual idols to exist in metaverse environments and connect with viewers and fans.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Virtual idols gaining popularity | From traditional celebrities to digital characters | More virtual idols, widespread use in marketing and entertainment | Rise of ACG platforms and Gen Z’s interest in virtual idols |
| Virtual idols as a branding strategy | Safer image for brands compared to real-life celebrities | More brands collaborating with virtual idols | Avoiding scandals and negative publicity |
| Cost of creating virtual idols | Expensive upfront costs, low immediate returns | More affordable creation and operation costs | Advancements in technology and increased demand |
| Virtual idols in metaverse environments | Expansion of virtual idol presence and interaction | Virtual idols in metaverse concerts and events | Metaverse development and demand for virtual experiences |