By N.K.Narasimhan
Introduction:
In recent
years, the creator economy has experienced explosive growth globally,
surpassing the $100 billion mark, according to Classplus creator trends report
2023. While the industry was initially dominated by entertainers, a new wave of
creators, known as "infopreneurs," is reshaping the landscape. This
article explores the current state of the creator economy in India, delving
into emerging trends, challenges, and the role of tier 2 and tier 3 cities in
shaping its future.
The Rise of Infopreneurs:
Classplus's
report sheds light on the evolving nature of the creator economy, emphasizing a
shift from pursuing celebrity influencer status to establishing sustainable
businesses. Non-academic creators on platforms like Classplus saw a significant
increase in earnings, reaching INR 200 crores in 2023, marking a 2X growth from
the previous year. The report indicates a 300% increase in the number of
creators on the platform since 2021.
Notably,
algorithm changes have impacted 77% of creators' audience engagement, with 25%
experiencing revenue losses ranging from $1,000 to $9,999 due to these changes.
However, despite challenges, the creator economy in India is diversifying, with
personal development, health and fitness, personal finance, and e-learning
witnessing substantial growth.
The Rise of 'Fin-Fluencers':
The year
2023 witnessed the emergence of 'fin-fluencers,' individuals leveraging the rising
financial awareness among retail investors. The number of investor accounts in
India surged from 3.93 crores in December 2019 to 13.23 crores by October 2023.
Classplus reported that trading and investment education became one of the
largest categories on their platform, with 'finfluencers' seeing a 2.2X
increase in 2022 and a 3X increase in 2023 compared to 2021.
Creator-Led Courses as Alternatives
to Traditional Education:
The report
highlights a growing trend of creator-led courses gaining traction as
alternatives to traditional education systems. These courses, known for their
flexibility and accessibility, range from INR 1,000 to 50,000 on platforms like
Classplus. Notably, around 70% of the audience accessing these courses hails
from Tier II+ cities and towns, showcasing the empowerment of individuals,
particularly women, in these regions to generate income.
Tiki's Impact on the Creator
Ecosystem:
Singapore-based
Tiki is making waves in the short video content creation space in India,
especially in tier 2 and tier 3 cities. Tiki's CEO, Ian Goh, mentions that 60%
of their traffic comes from these cities, offering a platform for creators who
might struggle to establish a follower base on more saturated platforms like
Instagram. With over 100 million downloads and currently ranking fifth in the
top free social apps in India, Tiki has become a significant player in the
Indian creator ecosystem.
Future Outlook and Sustainability:
Looking
ahead, Tiki's CEO Ian Goh emphasizes that platforms adding value to creators
and stakeholders will thrive. Sustainable growth, transitioning from the
'attention economy' to the 'intention economy,' where fulfilling user needs is
paramount, is crucial. Tiki aims to break even by 2023, working with local
partners to become the go-to media platform in India.
India's Ascent to a $1 Trillion
Internet Economy:
RedSeer's
report anticipates India becoming a $1 trillion internet economy by 2030,
driven by growing internet penetration, high-speed access, and increased online
activities. The three demographic segments - high earners in metropolitan
areas, aspirational and budget-conscious individuals, and the rural population
in tier-2 cities - collectively contribute to this unique journey toward a
consumption-led economy.
Conclusion:
The future
of India's creator economy appears promising, with a diverse range of creators
contributing to its growth. The shift towards sustainability, the rise of
'fin-fluencers,' and the impact of platforms like Tiki in tier 2 and tier 3
cities are shaping a dynamic landscape. As India inches towards a $1 trillion
internet economy, the creator economy is poised to play a significant role in
this digital-forward journey.