Consumers prefer content creators brands

The rise of social media has radically changed consumer shopping habits, but the effects of this shift are only being felt now, after the boom of content creator brands. More and more influencers and other creatives with a strong online presence are deciding to launch a brand to sell beauty or fashion products, following in the footsteps of entrepreneurs like Kylie Jenner (owner of Kylie Cosmetics, Khy, Sprinter, and others) or Hailey Bieber (owner of Rhode). The number of brands launched by content creators seems endless, which is why a new study by Billion Dollar Boy has tried to assess the situation by analyzing the consumer perception of companies founded by influencers and the like. According to the research, which surveyed more than 4,000 people, 500 entrepreneurs, and 500 influencers from the US and the UK, 65% of consumers—almost two out of three—have purchased a product or service from a content creator.

The majority of customers who buy from content creators belong to the younger generations, according to the study by Billion Dollar Boy. However, 27% of consumers interviewed said they are more likely to purchase from digital creators compared to traditional brands. To justify their preference, 35% of consumers said they want to support small or emerging businesses, 30% said they trust influencers more than classic brands, and 26% said they buy from creators out of pure loyalty. The study also explored the main challenges that creators face when launching their own businesses, such as lack of funding, which affects 38% of respondents, lack of industry experience (31%), lack of support (27%), and the need for a reliable supply chain (15%).