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Baihang and the Eight Personal Credit Programmes: A Credit Leap Forward

“The personal credit era has arrived,” some netizens say.

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Baihang Credit has received ample coverage in Chinese press recently as it was launched as “the first unified personal-credit information firm” of the PRC. It joins forces with Alibaba, Tencent, and six other big companies in further building on China’s credit-based society. What’s on Weibo provides an overview of the developments that have led to the formation of this powerful credit platform.

Three years after eight commercial firms were granted permission by the People’s Bank of China (PBOC) to start their pilot programmes in operating personal credit systems in 2015, none of them have received a license.

Instead, they’ve now become shareholders and active contributors to a new unified platform that has access to an enormous number of personal credit data. At the so-called ‘trust alliance’ (信联) Baihang Credit (百行征信), state level and commercial organizations join forces in further developing China’s credit systems.

How they can share data without harming Chinese recent laws on privacy, however, remains vague.

Some background

An important moment within this development started over twelve years ago (to be precise: on March 20 of 2006), when the People’s Bank of China (PBOC) began operating its own independent Credit Reference Center. The goal of the brand-new center was to set up the reliable credit checking platform which China was still lacking at the time.

At its core, it was tasked with managing a national commercial and consumer credit reporting system, to enable financial institutions to assess borrowers’ creditworthiness.

Screenshot of The Credit Reference Center website.

In November of 2013, during the Third Plenary Session of the 18th CPC Congress, new plans were adopted to also “establish and improve a social credit system to commend honesty and punish dishonesty” (USC 2013), putting more pressure on the formation of a solid credit checking system in China.

Months later, in 2014, the Chinese State Council issued an official notice concerning the construction of a nationwide Social Credit System that was to be rolled out by 2020 (Creemers 2014).

 

Three Years of the “Credit Leap Forward”

 

It is perhaps no coincidence that not too long after the formal announcement of these plans, that would lead to a more credit-based Chinese society, the PBOC Credit Center opened its doors to eight Chinese companies to work on trial programmes to prepare for operating their own personal credit information businesses.

At the time, in 2015, the PBOC’s Credit Center had been around for nearly a decade, yet still ‘only’ covered 25% of the Chinese population, leaving ample risks in the control process of Chinese financial services (Yang 2017).

You could say that 2015 was an important year in which competition for China’s multi-billion personal credit investigation market really began, along with the flourishing of China’s Internet population and the growing demand for personal online data information (Jun 2015). A recent Caixin column by Xinhai Liu (刘新海), associate researcher at the Credit Reference Center, even calls the 2015-2018 period the “Credit Great Leap Forward” (“征信大跃进的三年”).

Besides that new personal credit rating tech firms started to pop up, the year 2015 was also the year when misconceptions arose in foreign media regarding these existing credit systems.* ACLU called it “nightmarish,” falsely claiming that all Chinese would be “measured by a score between 350 and 950, which is linked to their national identity card” and that “the government has announced that it will be mandatory by 2020.”

As explained in our recent article about this issue, these discussions – that continue in foreign media to this day – often blur the lines between the national Social Credit system and a number of private programs. (To understand more about the difference between the government’s Social Credit system and the commercial ones, please read the previous article we featured on this topic.)

These misunderstandings partly come from the fact that both the government’s plans on introducing their ‘Social Credit System’ (社会信用体系) and the Central Bank’s endeavors to build a stronger personal credit industry (个人征信行业) were major developments in the period from 2013-2015 up to the present.

 

The Eight Programmes

 

With such a strong demand for solid credit rating systems, why have none of the eight approved tech firms received their license, over three years after starting pilot operations?

One of the main problems with commercial services such as the well-known ‘Sesame Credit’ is, according to PBOC spokesperson Wan Cunzhi, that they are all “isolated islands” (“信息孤岛”) of non-shared data, that they are lacking in independence, and that their data management is not strong enough (Yang 2017).

The coming-together of these “islands” solves this problem and forms one solid platform under the ‘Baihang’ label. Which eight companies does this concern? An overview:

1. Sesame Credit (芝麻信用)

This is the best-known commercial personal credit score programme, implemented by Alibaba’s Ant Financial. Sesame Credit already had 520 million users as of 2017.

Sesame Credit example scores explained, from 385 being in the low range to 731 being in the ‘good’ range.

Sesame Credit was launched in 2015. Because it is part of the Alibaba family, Sesame Credit has an enormous amount of data at its disposal, from e-commerce sites to finance products (Taobao, Tianmao, Alipay, etc), through which it compiles users’ own scores, going from 350-950, for those who have opted into the program. The scores are based on a number of things, including people’s payment history, their contacts and network, and online behavior.

2. Tencent Credit (腾讯征信)

Since the Tencent company currently hosts 55% of China’s mobile internet usage on its platforms (Marr 2018), it has also an enormous amount of data at its disposal. Similar to Sesame Credit, Tencent Credit works with a 300-850 score system. It officially launched a trial of its score programme in January of 2018, but then took it down shortly after.

3. Kaola Credit (考拉征信)

Koala Credit is an independent third-party credit company established by the Shenzhen-based Lakara (拉卡拉) financial services company. Koala Credit was launched in May of 2015, around the same time as Sesame Credit launched its program. Lakara has strategic and powerful partnerships with China Unionpay, five major banks, and hundreds of other financial institutions. Lakara and Koala Credit jointly founded a pioneering lab in China that focuses on big data models. The University of the Chinese Academy of Sciences is involved in this project (Zhuo et al 2016, 299).

4. Pengyuan Credit (鹏元征信)

Established in 2005, Pengyuan Credit is amongst the oldest personal credit investigation firms of the eight selected by the PBOC. The company states on its website that its main goal since 2005 has been to “create a credit reporting ecosphere on the Internet,” shifting from traditional credit rating systems to online credit rating methods.

5. Sinoway Credit (华道征信)

The Beijing Sinoway Credit was established in 2013 by four large financial companies. As explained by BJReview (2016), Sinoway is among those companies (such as Zhima and Tencent) that accumulate data from their business rather than using traditional algorithms to collect financial and public data. They have exclusive access to enterprise data (Zhuo et al 2016, 299).

6. Qianhai Credit Service (深圳前海征信)

Qiu Han, CEO of Qianhai.

Another company established in 2013, Qianhai Credit is based in Shenzhen. It was launched by financial giant Pingan. The current CEO is the female big data specialist Qiu Han (邱寒).

7. China Chengxin Credit (中诚信征信)

The Beijing-based China Chengxin Credit company was founded in 2005, established by the China Chengxin Credit Management group. The firm provides personal credit information and companies and market research services. As described by the China Money Network, its database is connected to local administrations for industry and commerce, police, courts, telecom service providers to provide comprehensive credit information.

8. Intellicredit (中智诚征信)

Intellicredit is a Beijing-based independent, third-party credit registry. CEO Li Xuan (李萱) has previously expressed the company’s goal to handle any loopholes that let scammers get away with fraud in China’s online financial environment. The company is experienced in credit industries both in China and abroad, and its team has also worked on the establishment of the credit reporting system of the PBOC (Zhuo et al 2016, 299).

 

Baihang & Allies: An Abundance of Personal Data

 

The formal launch of Baihang Credit (百行征信), the “first unified personal credit information firm” of China, has become big news in Chinese media, with some calling it a personal credit industry game changer.

Lauch of Baihang Credit, May 23 2018 (photo via Weibo).

Baihang Credit is a joint establishment of the aforementioned eight and the China Internet Finance Association.* It received its license in February of this year. The firm officially opened for business on May 23rd of 2018.

While the China Internet Finance association reportedly holds 36% of the Baihang firm, the other eight shareholders each hold 8% (Zhang & Liu 2018).

^

The eight companies are not just financial investors, but also active contributors and sharers of technology, resources, and data for the Baihang firm. The launch of this joint establishment means that both state-level institutions and commercial enterprises combine their efforts in building a strong personal credit investigation and service platform; the new system now links data collected by these powerful firms such as Tencent to the state-level China Internet Finance Association, which in itself is an initiative by the People’s Bank of China.

Besides basic data including personal information, education level, salaries or employer, companies such as Sesame Credit or Tencent also have access to a rich collection of consumer data, ranging from social media, e-commerce purchases, online travel data, to location, phone records and even social connections.

The eight firms will also play an important role in Baihang’s management. Sesame Credit, Tencent Credit, Qianhai Credit, Sinoway and Koala Credit have all entered the company’s board of directors. The other three companies will join the board of supervisors (Sina Finance 2018). The 57-year-old Zhu Huanqi (朱焕启) will be Baihang’s CEO and president; he previously worked at Huida Asset Management.

The PBOC told Caixin Global that all parts of the eight companies that previously dealt with personal credit ratings will now be incorporated into Baihang. The other parts can continue to operate as data service providers. In the future, Sesame Credit, for example, will continue to research commercial credit services.

 

Many Questions Linger

 

While the recent alliance has received ample attention in Chinese media as an important moment in China’s transforming alleged ‘credit-based’ society, many questions still linger.

One Nanjing research institute writes on Weibo: “The joining of these companies means they can share big data. This also means that if a person is behind [in payments] on one platform, they will also have no access to loans on any of the others.”

But is it all about sharing personal financial credit information, or is this about the sharing of other data as well? What are the legal implications of Baihang operations? And to what extent, if at all, will the system link to the upcoming nationwide Social Credit System?

Caixin Global noted that Baihang Credit will face challenges regarding Chinese Cybersecurity Law, which imposes strict limits on ‘secondary uses’ of data beyond its original purpose, and requires individual authorization when personal data is transferred from one institution to another (Sacks 2018; Zhang & Liu 2018).

In this Caixin article, the PBOC’s spokesperson would not elaborate on how Baihang will collect and use personal data. He was only quoted in saying only that contributions to Baihang will be handled “according to market rules.”

 

“Personal Credit Era has Arrived”

 

Despite the many articles about Baihang in Chinese media, it has not become a much-discussed topic on social media; netizens discussing Chinese credit systems seem more concerned with the height of their Sesame Credit score.

One Weibo user, however, did write about the Baihang alliance, commenting: “The personal credit era has arrived” (“个人信用时代到来”).

Other people worry about the impact of this alliance, saying: “You’ll see that if you have a negative balance on your bank account, you won’t be able to use the public bathroom anymore.” (Recently, various cities in China are upgrading their public toilets, integrating AI features such as facial recognition for people to receive free toilet paper.)

Some commenters simply call the companies that have joined under Baihang “a pile of trash.”

Although Sesame Credit will not receive a license to operate its personal credit investigation business, it is highly probable that users of their credit programme will still be able to enjoy the perks of, among many other things, entering libraries for free or riding rental bikes without deposit with a high score.

“I’ve just arrived in Hangzhou and can do many things for free,” one person wrote: “I feel like my Credit Score is omnipotent.”

Baihang’s recent alliance is about to make Chinese personal credit scores even more omnipotent – the ‘Credit Leap Forward’ is well underway.

By Manya Koetse


Directly support Manya Koetse. By supporting this author you make future articles possible and help the maintenance and independence of this site. Donate directly through Paypal here. Also check out the What’s on Weibo donations page for donations through creditcard & WeChat and for more information.

 

* In an article from December of 2015, for example, The Independent suggested that “China has created a social tool which gives people a score for how good a citizen they are,” describing how “China” had put forward “a concept straight out of a cyberpunk dystopia” named Sesame Credit.

* The Chinese Internet Finance Association, also known as the NIFA (National Internet Finance Association) was established in March of 2015 upon approval by the Chinese State Council and Ministry of Civil Affairs. It is a state-level organization.

References (others linked directly within text)

Creemers, Rogier. 2014. “Planning Outline for the Construction of a Social Credit System (2014-2020).” China Copyright and Media, 14 June China https://chinacopyrightandmedia.wordpress.com/2014/06/14/planning-outline-for-the-construction-of-a-social-credit-system-2014-2020/ [10.6.18].

Creditchina. 2018. “百行征信入场,8家股东剥离个人征信业务.” CreditChina.gov, 4 June http://www.creditchina.gov.cn/gerenxinyong/gerenxinyongliebiao/201806/t20180604_117132.html [10.6.18].

Huang, Zhiling. 2016. “Six Obstacles to Producing Reliable Big-Data Credit Reports.” BJ Review, 15 December http://www.bjreview.com/Business/201612/t20161212_800074419.html [9.6.18].

Jun, Wang. 2015. “Road to Credit.” Beijing Review, 3 August http://www.bjreview.com.cn/business/txt/2015-08/03/content_698269.htm [9.6.18].

Marr, Bernard. 2018. “Artificial Intelligence (AI) In China: The Amazing Ways Tencent Is Driving It’s Adoption.” Forbes, 4 June https://www.forbes.com/sites/bernardmarr/2018/06/04/artificial-intelligence-ai-in-china-the-amazing-ways-tencent-is-driving-its-adoption/#5130d54b479a [10.6.18].

Sacks, Samm. 2018. “New China Data Privacy Standard Looks More Far-Reaching than GDPR” CSIS, 29 January https://www.csis.org/analysis/new-china-data-privacy-standard-looks-more-far-reaching-gdpr [9.6.18].

Sina Finance. 2018. “百行征信揭开面纱 芝麻信用腾讯征信等五家入董事会.” sina Finance, 4 January http://finance.sina.com.cn/money/bank/bank_yhfg/2018-01-05/doc-ifyqinzs8775295.shtml [10.6.18].

USC. 2013. “Decision Of The Central Committee Of The Communist Party Of China On Some Major Issues Concerning Comprehensively Deepening The Reform, November 12, 2013.” USC, 12 November https://china.usc.edu/decision-central-committee-communist-party-china-some-major-issues-concerning-comprehensively [10.9.18].

Yang, Felix. 2017. “Is Xinlian the answer to the Individual Credit Checking System in China?” Kapronasia, 25 Aug https://www.kapronasia.com/china-banking-research-category/item/886-is-xinlian-the-answer-to-the-individual-credit-checking-system-in-china.html [10.6.18].

Zhang, Yuzhe, and Liu Xiao. 2018. “Launch of Unified Platform Boots Private Firms From Personal Credit Business.” Caixin Global, May 28 https://www.caixinglobal.com/2018-05-28/launch-of-unified-platform-boots-private-firms-from-personal-credit-business-101258187.html [10.6.18].

Zhuo Huang, Yang Lei & Shihan Shen. 2016. “China’s personal c>edit reporting system in the internet finance era: challenges and opportunities.” China Economic Journal (9:3): 288-303.

Spotted a mistake or want to add something? Please let us know in comments below or email us.

©2018 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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Manya Koetse is the editor-in-chief of www.whatsonweibo.com. She is a writer and consultant (Sinologist, MPhil) on social trends in China, with a focus on social media and digital developments, popular culture, and gender issues. Contact at manya@whatsonweibo.com, or follow on Twitter.

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Backgrounder

K-Pop’s Recipe for Success: Why Korean Idol Groups Got So Big in China and are Conquering the World

The success of K-Pop in China and beyond is evident – the causes for its success are less obvious.

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K-Pop (Korean pop music) is one of South Korea’s most successful export products today. With bands such as BTS that are dubbed the ‘biggest boy band on the planet’, it is obvious that the locally produced K-Pop has become a globally well-liked phenomenon. Although its popularity is obvious, the reasons why K-Pop became so big, from China to the US and beyond, are less evident.

On coming Saturday, October 13, the South-Korean boy band BTS will perform in an Amsterdam area in front of thousands of fans who have been looking forward to this event for months. Ticket sales for the first concert of the 7-member boy group in the Netherlands were sold out within minutes, despite their relatively high prices, with people paying up to €250 ($290) in the official sales, or even €400 ($460) and more for a single ticket in the unofficial online sales afterward.

It is not just the success of the BTS European tour that is making headlines; the record-breaking views on YouTube on their videos – the latest being the song ‘Idol’, that had more than 200 million views in little over a month – is also attracting the attention of the media.

And BTS is not alone. Other Korean pop (K-Pop) groups such as EXO, BIGBANG, TWICE, Shinee, or Got7, have also broken records when it comes to online video views or Spotify plays.

Although the English-language media attention for the K-pop phenomenon is more recent, the Korean entertainment industry has since long been extremely popular in China and on Chinese social media. In this overview, What’s on Weibo explores the K-Pop popularity (focusing on its idol boy and girl groups), its short history, and success formula.

 

BTS and More: An Army of Fans

 

The pop group BTS (방탄소년단), also known as the Bangtan Boys (防弹少年团, lit: ‘Bulletproof Boyscouts’), is an award-winning seven-member South Korean boy band formed by Big Hit Entertainment that debuted in the summer of 2013. They are currently hyped as the “biggest boy band on the planet.”

Initial auditions for the band were held in 2010, followed by roughly three years during which the band was formed and prepared for their major debut, that was promoted on social media months before their actual launch in June of 2013.

The band consists of multi-talented young men. Singer-songwriter Kim Seokjin (Jin) (1992) was studying film at Konkuk University when he was invited to audition by Big Hit; rapper Min Yoongi (Suga) (1993) was an underground rapper before he was signed; dancer and rapper Jung Hoseok (J-Hope) (1994) was part of a dance team in his pre-BTS life.

Lead rapper Kim Namjoon (RM) (aka Rap Monster, 1994) was already active in the music scene as rapper and producer; dancer and vocalist Park Jimin (Jimin) (1995) was a top student as Busan School of Arts before joining; vocalist Kim Taehyung (V) (1995) is known to have one of the most expressing voices of the group; and main vocalist Jeon Jungguk (Jungkook) (1997) was only 12 years old when he auditioned for BTS, followed by three years of intense training.

BTS, formerly ‘Behind The Scenes’, is known for its strong social media presence, which helps to spread its music and connect to its fans, who call themselves an ‘ARMY’ (also stands for Adorable Representative Master of ceremonies for Youth). The band has more than 16 million followers on Twitter, 3.3 million fans on Weibo, 12 million subscribers on Youtube, and nearly 8 million followers on Facebook.

Although BTS is the band that is currently dominating the headlines, there are many more K-Pop bands that are extremely popular on Weibo and beyond. The nine-member South Korean–Chinese boy band EXO, for example, has dozens of fanclubs on Chinese social media. Band member Oh Se-hun alone already has almost 9,5 million fans on his Weibo page. BIGBANG has more than 7 million Weibo fans, the eight-member girl band Girl’s Generation (少女时代) is on the rise with 1,5 million Weibo followers, Super Junior over a million, and the list goes on.

 

CREATING SUCCESS

A Short History of K-Pop: Finding a Sublime Entertainment Formula

 

Besides media attention, there has been ample scholarly attention for the Korean pop culture phenomenon over the past decade. The year 2012 especially marked a special moment in the history of K-Pop, when the song ‘Gangnam Style’ by Korean rapper Psy broke all YouTube records and became a global hit.

But before K-Pop became a global force to reckon with – that seemingly rose out of nowhere -, it had already made its first international successes in neighboring countries China and Japan since the early 2000s.

In China, the success of Korean popular culture is defined as Hallyu (韩流)*, the ‘Korean Wave’ since 1997 (Yang 2012, 105). Hallyu encompasses far more than idol bands; it includes the boom of South-Korean dramas, films, celebrity idols, and entertainment programs. In 2002, for example, the South-Korean soap opera ‘Winter Sonata’ became a hit in both China and Japan.

The former Exo (formation has now altered): a Chinese-South Korean band formed by SM Entertainment in 2011, consisting of twelve members separated into two subgroups, EXO-K and EXO-M, performing music in Korean and Mandarin.

The early 2000s mark the ‘first Korean wave’ in China, that mainly revolved around TV dramas produced in South Korea and were liked by females above the age of 30. It was followed by the second wave from the mid-2000s to 2010, when the K-Pop music genre popularized in China.

The third period, after 2010, marks the moment when K-Pop was further incorporated into mainstream Chinese popular culture, with a ubiquity of K-Pop idols in everyday Chinese pop culture, and the launch of Chinese versions of Korean entertainment programs (Ahn 2014, 47). It was also in this ‘third wave’ that you saw the debut of pop groups such as EXO. Formed in 2012, that band incorporates both Korean and Chinese members, performing in both languages.

Although K-Pop from South Korea became somewhat less visible in the PRC during the past few years, mainly because the industry suffered from various politically-motivated bans on Hallyu in China, the genre’s influence on China’s mainstream pop culture is evident, with some Chinese groups, for example, also being modeled after K-Pop bands.

Entertainment Powerhouses

Many studies explain the foreign success of Korean popular culture in Asia, mainly China and Japan, through “cultural proximity,” saying that the success of K-Pop especially occurred in China and Japan because they have, for example, linguistic similarities and corresponding Confucian values (Ahn 2014, 47; Messerlin & Shin 2017, 412).

But the more recent global wave of K-Pop shows that cultural proximity is not the sole answer to the genre’s success. Besides, there is actually nothing traditionally “Korean” about K-Pop, which only emerged in the 1990s (Shin & Kim 2013, 256).

The genre’s success mainly lies in the big players that brought forth the first Korean pop idol groups and have excelled (and still do) in selecting the right entertainment “products” to invest in, with a strong focus on both on the production side and the market demand side.

SM Entertainment, JYP, and YG Entertainment are the first major and leading entertainment houses of the 1990s. Big Hit Entertainment, home to BTS, followed later; founder Bang Si-Hyuk (1972) used to collaborate with JYP Entertainment founder Park Jin-Young (1971) before going his own way in 2005.

-SM Entertainment, founded 1988 by musician and TV host Lee Soo Man (1952)
-YG Entertainment, founded in 1996 by musician Yang Hyun-Suk (1970)
-JYP Entertainment, founded in 1997 by musician and producer Park Jin-Young (1971)
-Big Hit Entertainment, founded in 2005 by producer/songwriter Bang Si-hyuk (1972)

What characterizes these entertainment houses is that they are/were small in terms of revenue and employees (very different from big labels such as Sony or Universal), and play multiple roles as intermediate between musicians and consumers, as well as producers.

Different from many international big players in the entertainment world, K-Pop entertainment companies integrate processes of artist selection, songwriting, management, signing advertisement deals, etc. in-house rather than leaving these processes to various parties outside their own studio (Shin & Kim 2013, 260). Significant about the founders of these entertainment powerhouses is that they all had ample experience in the music industry themselves before starting their studios.

Lee Soo Man, image via AllKpop.com

The story of SM Entertainment, which was founded by musician and TV host Lee Soo Man in 1988, is crucial in understanding the beginning of the K-Pop industry. Lee was inspired by the transforming American music market after spending time there in the 1980s, and decided to replicate US entertainment in a new way. In his first studio he brought together the right equipment, the right expertise, and the right talent all in one place to kick-start his business (Shin & Kim 2013, 263).

Although the first acts that came from SM’s studio were no instant success, Lee was determined in learning through trial and error until he found the right beat and image that struck a chord with young consumers. In doing so, he adopted a strategy in which teenagers were surveyed on what they wanted, and in which he focused on scouting new talent from all over the country to give them intensive training in dancing, singing, and acting at the SM Studio (Shin & Kin 2013, 264).

The band H.O.T. stood at the beginning of the K-Pop genre. (Image by Soompi).

In 1996, eight years after Lee Soo Man started his entertainment company, and going through years of changing, refining, and improving his strategies, the first success was there. The boy band H.O.T., consisting of five hand-picked members who each had their own strength, debuted in 1996 and became the first major success in the short history of K-Pop.

Companies that followed after SM’s initial successes further experimented in adopting new strategies and trying out new styles of music, but stayed true to the idea of in-house training of young, new artists, rather than selecting renowned artists with defined styles (Shin & Kim 2013, 264). With frequently held auditions and training programmes that can last for years, some trainees start as young as 5 or 6 so that they are fully equipped for the entertainment industry by the time they reach adolescence (ibid., 265).

More than being teachers, producers, songwriters, marketers, etc., these entertainment houses are also trend watchers; training their talents in various areas now in order to be able to place them in the right setting and format in the future, corresponding with (global) market demands.

Companies such as SM place an emphasis on the export of music, and focus on appealing to global audiences, making use of hundreds of composers and experts from around the world in doing so. In producing and performing the K-pop girl band Girl’s Generation’s song ‘Genie’, for example, SM Entertainment used a Japanese choreographer, a Norwegian songwriter, and Korean lyricist (Shim 2016, 38).

 

SHAPING SUCCESS

The Popularisation of K-Pop: A Digital Strategy

 

Although a main cause of K-Pop’s initial success lies in the (training) strategies adopted by the aforementioned entertainment houses, there are also other major factors that have contributed to its global influence.

The Korean government contributed to the initial success of K-Pop by developing a world-leading internet infrastructure (although the goal of developing that infrastructure, obviously, was not to promote K-Pop), which helped the rapid rise of the genre through online strategies.

According to some studies (e.g. Messerlin & Shin 2017, 422-425), Korean entertainment companies have been the first in the world when it comes to realizing the potential of the internet for the distribution and marketing of their performances; they were already long awake to its possibilities and were acting upon them, while many big players in Europe and America were still focusing on traditional album formats.

What also helped the spread of K-Pop at the time were the relatively friendly and equally balanced Korean policies on issues such as copyright, that were (and are) less protective and restrictive compared to America or the EU (Messerlin & Shin 2017, 421).

The first success (1997-2007) of K-Pop and other Korean popular culture products in China, Japan, and other countries within Asia, have also been called the first major Korean Wave, whereas the current period (2008-present), represents the ‘New Korean Wave,’ that is defined by the role that is played by new media technology and social media as a platform for K-Pop to reach every corner of the world (Jin 2016).

Online strategies were particularly relevant in the context of the (early) K-Pop industry because 1) it was dominated by relatively small businesses that did not have the means to invest in other major publishing platforms than that of efficient online distribution and 2) they did not have costly plants where they could produce CDs, DVDs, or vinyl. Having the high-tech Korean electronical market on their side, online strategies were thus a natural and cost-efficient solution to give publicity to their performances (Messerlin & Shin 2017, 426). More so than focusing on traditional album releases, the release of digital singles that come with visually attractive online videos, for example, is one important K-Pop production characteristic.

Probably the best example showing that this strategy works is the global success of ‘Gangnam Style’ that was made possible through YouTube. By now, six years after its release, the world-famous song by Psy, who was signed by YG Entertainment, has over 3,2 billion plays on YouTube.

The revenue of concert tickets for K-pop performances, its merchandise industry, the digital singles, advertisement income, the many brands wanting to associate themselves with the star industry that K-pop has generated, etc., makes K-Pop production a money-making machine that shows that the model that focuses on traditional (CD) album formats and promotional single releases has become outdated.

 

CONTINUING SUCCESS

Marketing more than a Band: Active Fans and Interesting Characters

 

While South-Korea’s innovative music enterprises were crucial for the international launch of K-pop, its worldwide fanbase has now also become a motor driving its continuing success.

Different from the initial spread of K-Pop in China or other Asian countries – where K-Pop has become common in everyday pop culture -, is that many consumers of the genre in the US, Europe, or elsewhere, fully depend on the internet and social media to access K-Pop, as it is not a genre that is prevalent in the mainstream popular culture of their own countries.

The fact that fans of K-Pop in these regions have to actively seek for the latest information and releases of their favorite groups, also means that they have become participatory and engaged consumers in the spread of K-Pop – almost turning them into the ‘soldiers’ of fandoms such as the BTS ‘army’. They have become part of enormous (online) subcultures in various countries across Europe and America.

More than just listening and watching K-pop, these fans become members of the ‘culture’ by translating material, circulating it to friends, or integrating it on their own social media channels (Jin & Yoon 2016, 1285).

TWICE

What further strengthens this fandom is that the successful K-Pop bands are anything but one-dimensional. More than just building on their synced choreography, flawless singing, fashionable looks, and visually attractive videos, the band members of groups such as BTS, EXO, or TWICE, have their own identities, voices, and goals that go beyond music; their various characters and roles within the group resonate with their different fans.

The fact that many K-Pop groups and members also have an androgynous and gender-bender appearance also makes them more interesting to many fans, with many K-pop boys being ‘pretty and cute’ and girls having a ‘strong and handsome’ look, breaking through typical male and female stereotypes.

Amber from F(x) has an androgynous look.

Heechul from boy band Super Junior.

Furthermore, more than pop bands, these K-Pop groups have virtually become ‘platforms’ with their own streaming channels, websites, television shows, merchandise shops, lively online communities, stories, and so on.

In their recent appearance on the US Tonight Show by Jimmy Fallon, BTS frontman RM explained the group’s mission in perfect English, saying: “It is about speaking yourself, instead of letting other people speaking for you. Cause in order to truly know ourselves, it is important to firstly know who I am, where I’m from, what my name is, and what my voice is.”

Many find their voice in K-Pop. And that is a sound, from a local Korean product to a global force, we can expect to grow much louder in the future.

By Manya Koetse

* For clarity: note that due to scope this article focuses on the development of the K-pop phenomenon, and does not explore the anti-Hallyu or anti-Korean wave movement in China, and the previous bans on Hallyu in the PRC.

References

Ahn, Jungah. 2014. “The New Korean Wave in China: Chinese Uders’ Use of Korean Popular Culture via the Internet.” International Journal of Contents, 10 (3): 47-54.

Jin, Dal Yong. 2016. New Korean Wave: Transnational Culture in the Age of Social Media. University of Illinois.

Jin, Dal Yong, and Kyong Yoon.2016. “The Social Mediascape of Transnational Korean Pop Culture: Hallyu 2.0 as Spreadable Media Practice.” New Media & Society 18 (7): 1277-1292.

Messerlin, Patrick A. and Wonkyu Shin. 2017. “The Success of K-Pop: How Big and Why So Fast?” Asian Journal of Social Science 45: 409-439.

Shim, Doobo. 2016. “Hybridity, Korean Wave, and Asian media.” Routledge Handbook of East Asian Popular Culture,Koichi Iwabuchi, Eva Tsai, Chris Berry (eds), Chapter 3. London: Routledge.

Shin, Solee I. and Lanu Kim. “Organizing K-Pop: Emergence and Market Making of Large Korean Entertainment Houses, 1980-2010.” East Asia 30: 255-272.

Yang, Jonghoe. 2012. “The Korean Wave (Hallyu) in East Asia: A Comparison of Chinese, Japanese, and Taiwanese Audiences Who Watch Korean TV Dramas.” Development and Society, 41 (1): 103-147.

Spotted a mistake or want to add something? Please let us know in comments below or email us.

©2018 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com

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Backgrounder

Beyond Four Walls: ‘Home’ and ‘Unhomeliness’ in a Rapidly Transforming China

About changing concepts of home in China: from ‘home is where my pig is’ to ‘has your frog returned home yet?’

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A new global research report by IKEA has found that, increasingly, the feeling of home is no longer restricted to the four walls of residential buildings. In China, the study finds, approximately one-third of people in cities feel more ‘at home’ at other places than the space they live in. How can we translate these findings into present-day China? An overview by What’s on Weibo editor Manya Koetse.

According to a global research report released by IKEA Group this week, traditional ideas of where people “feel at home” are drastically changing. The annual study on international living trends found that 35% of people feel more at home elsewhere than the place where they live, with a staggering 29% of people not feeling at home where they live at all.

The findings show remarkable changes associated with “feeling at home” compared to earlier annual reports, indicating that demographic, technological, and cultural forces are rapidly transforming conceptions of “home” in various places across the world.

China is part of this trend. The report, undertaken by London-based agency C Space, is based on studies that were conducted from March to August of 2018. Besides China, a large-scale survey was undertaken in 21 other countries among 22,854 respondents (11,325 from urban areas), and qualitative research was conducted in China, US, Germany, Denmark, Italy, and the UK.

The results of the study might resonate with what many experience in Europe and the US, but also with the societal changes they have seen in China over the past decade – although the reasons for these developments are different between these places.

These are transformations that do not only become clear from the trends on Chinese social media, but, for me personally, also from the lives of friends and social circles in Beijing and Shanghai, and the rapid pace in which I have seen them moving from residence to residence, from neighborhood to neighborhood, and sometimes even from city to city, often with seemingly little emotional attachment to the houses where they have lived for years as urban dwellers. Where is that place called ‘home’?

 

Going “Home” in China

“‘Home’ is much more than the place where people sleep at night: it is there where the (grand)mother cooks.”

 

Every year at the time of China’s Spring Festival, there is one hashtag that always goes trending on Chinese social media platform Weibo: “Return Home”, #回家, Huíjiā.

For many people, the Spring Festival is the only time of the year they can return to their hometowns to celebrate the new year with their family and friends. As many now know, the travel season leading up to the Festival, the chūnyùn (春运), is the biggest annual mass migration of the world. Many of China’s urban areas become deserted as people return to their native provinces to be ‘home.’

Image via China news

The word for ‘home’ in Chinese, ‘家’ jiā, means both ‘home’ and ‘family.’ The character has a history of some 3000 years; first depicting a house with a pig inside, as this article explains, and then evolving into the character it is today (see image below). In its earliest meanings, the ‘home’ was simply there where pigs were raised and where family activities took place; there where the family house was situated.

Via zhihu.com

This duality in the concept of jiā still plays an important role in how the meaning of ‘home’ is understood in China today. In a small-scale survey that was done for the dissertation research of Wei Zhao (2015), for example, participants had various answers to the simple question of “what is jiā?”, some describing it as a space or place, some seeing it as an abstract concept (representing, amongst others, ‘harmony’), with others understanding it as the (extended) family itself (Zhao 2015, 125).

A simple search for the words ‘going home’ (回家) on Chinese social media today comes up with dozens of photos of mostly food, with Weibo users describing ‘home’ as that place where they eat the traditional home cooking from their family, also suggesting that ‘home’ is much more than the place where people sleep at night: it is there where the (grand)mother cooks, it is there where the land is, it is there where the family residence might have been situated for decades.

According to Wei Zhao’s research, people from Yanxia, a town in the Zhejiang region of China, often associate ‘home’ with the various forms of land, both in the present and past, that is tied to where their families live or lived. It is a “place-bound relationship,” Zhao writes (2015, 123), “enriched with social meanings,” where the land incorporates those places that “support various kinds of daily activities, help construct social relations, and sustain cultural performances.”

Many people who have moved from outside their family homes or villages to far away places or cities are no longer physically connected with this concept of ‘home’, drastically impacting how people experience “feelings of home” and how it relates to the places where they actually reside.

 

Unhomeliness and the City

“36% of Chinese renters get a sense of “belonging” from other spaces outside their residential home.”

 

Due to many different factors, including the privatization of farmland, surplus of rural labor, and increased labor demands in the city, China is currently seeing the largest rural-to-urban migration in human history.

Rural residents who have lived in the same homes for decades are being relocated to new settlements, old houses are being demolished, and China’s so-called ‘ghost cities‘ are rapidly coming to life.

For the first time in Chinese history, more people are living in China’s cities than they do in the countryside. In 2020, it is expected that 60 percent of the Chinese population will be permanent urban residents (Xinhua 2018).

A significant percentage of China’s population is what is called a “floating population,” China’s internal migratory population; those who are living as temporary residents or ‘migrant workers’ in the cities (without changes in their ‘hukou‘ or household registration). According to data provided by Chinese state media, that number of people is expected to hit 291 million in 2020 (Xinhua 2015).

As described by Yang et al (2014) in their article in Transforming Chinese Cities, there is a gap in living conditions between household residents and the ‘floating’ population, with the latter holding an 11,4 square meter size residence per capita, compared to 27.1 square meter per capita for the household population. Besides size, the ‘floating’ population also has less access to the more basic necessities in a home such as a kitchen (more than 45% has no kitchen) or flushing toilet (nearly 75% have to do without) (Yang et al 2014, 71).

In cities such as Beijing, underground nuclear bunkers from the Cold War era still serve as a residence to many urban dwellers. According to some sources, there are still one million people living in this underground world in Beijing alone, often dealing with poor air circulation and tiny living spaces with no daylight.

Via http://projects.aljazeera.com/2015/01/underground-beijing/.

Although the nuclear bunkers are an extreme example, the living conditions of many people in Chinese cities, whether they are migrant workers, students, or those who have restricted access to urban housing, are far from ideal; think of overcrowdedness and a lack of what many would consider basic conditions for comfortable housing.

So, without even considering the idea that the perfect concept of “home” might always be a place outside of one’s (urban) residence, it perhaps does not come as a surprise that many people do not always feel at home at all in their own house.

In China, the IKEA-commissioned study* found that 32% of those surveyed felt more at home outside their residential home, and that 36% of Chinese renters get a sense of “belonging” from other spaces than where they actually live (in other physical and/or virtual environments).* Since 89% of those surveyed lives in an urban location, these sentiments are especially telling about experiences of ‘home’ in the city.

 

A Sense of Belonging

“I felt that my house was the place I rented, but it was not my ‘home’.”

 

When residences are experienced as “unhomely,” it could mean many things. There might be a lack of comfort, a lacking sense of community, a feeling of security/privacy that is not there, or a missing feeling of ‘rootedness’ in the place where one lives.

The findings of IKEA’s study in China perhaps makes more sense when one considers the study’s results that found that 62% of those surveyed believe that community is an extension of the residential home. This strengthens the idea that ‘home’ is not the four walls one lives in, but an emotional landscape that is influenced by all kinds of factors.

An interesting 2013 study by scholar Xiaobo Su argues that ideas of ‘home’ are made through social and emotional relationships, and that ‘houses’ in China are often perceived as exchangeable commodities to which one does not necessarily have these emotional connections, whereas ‘home’ is a sphere where one feels free and at ease.

People, therefore, go looking for that ‘experience of home’ through other ways; it might be through friends and social events, through (digital) communities, or through tourism: traveling to those places where people do get that sense of home. Su (2013) suggests that Chinese domestic tourists consume the idea of ‘home’ by visiting (heritage) tourist sites that embody that image for them.

Earlier this year, the huge success of the mobile ‘Travelling Frog’ game in China became a media hype. The game revolves around the travels of a little frog who lives in a stone cave and goes on frequent trips. Although perhaps far-fetched, some Chinese media tied the success of this game to a need for belonging and family, saying that higher house prices, intensive jobs, and the collapse of the pyramid family structure had led to a decline in young people starting their own family and homes; and started looking to these type of games or digital communities to fill the gap. “Has your frog returned home yet?” even became somewhat of a common question among young people in January of 2018.

The Traveling Frog at home.

Besides the rise of various online communities, the rapid digitalization of China has also made it easier for families and friends to stay in touch through social media and messaging apps. This also brought about that physical proximity to relatives has become less of a priority now than in earlier (nondigital) times (Tao et al 2014, 197).

A China Merchants Bank commercial that went viral in late 2017 titled ‘The world is no bigger than a fried tomato omelette’ (“世界再大,大不过一盘番茄炒蛋”) shows how a mother helps her son to cook a home-made dish via mobile video while he is studying abroad. The viral campaign hit home for many exchange students.

Despite the fact that the dwellings of many people in present-day China lack space, privacy, or comfort, it does not necessarily mean that those living in these houses are dissatisfied. An interesting study by Li Tao et al (2014) on residential satisfaction of migrant workers in China found that kinship, family, friendship, and mobility, all play a significant role in how people feel about how they live. Additionally, instead of a focus on the sizes of their houses or the privacy they have, there is also a heightened focus on the low costs and transportation convenience of where one lives.

The fact that ‘home’ is an ever-changing and hot topic also becomes evident from the many posts on Chinese social media dedicated to this issue. As said, food is a recurring topic in these posts. On October 9, one Weibo netizen named Zhang Xizi (@张西子) wrote:

What do you think is ‘home’? For me, at one time, I felt that my house was the place I rented, but it was not my ‘home’. If I was hungry, I would just order something, and I hardly touched my stove at all. But then I started feeling that although I rent my home, it is still my life. Home should be a place with character. And then I started to enjoy cooking, especially when other people enjoy the food with me, is when I feel happy. So feel welcome to come to my home.”

Another Weibo user nicknamed ‘I love rabbits’ (@我爱兔子) writes:

What is home? It’s a person’s most private space. What is happiness? It is the warmth one feels with every dish at the dining table after returning home.”

A person named Sofo concludes: “What home is? If the people I love are there, then even a tent on the beach could be my home.”

Interested to read more relating to this topic?
* Viral Merchants Bank Commercial Hits Close to Home for Chinese Students Abroad
* Chinese Ghost Cities Coming to Life
* Chinese Media Ascribe ‘Traveling Frog’ Game Hype to China’s Low Birth Rates
* “I Am Fan Yusu” – Beijing Migrant Worker’s Writing Takes Chinese Internet by Storm

Find the IKEA Life at Home report here.

By Manya Koetse

* Note that not all of the market specific results have been publicly issued by IKEA. What’s on Weibo author has access to the market-specific results. Please email us if you have further questions about this data and the report’s findings or contact IKEA.
* The report says that “36% of renters look to other physical spaces or even virtual environments for a sense of belonging”; for Chinese home-owners, this is 22%.

References

IKEA. 2018. Beyond Four Walls: Life at Home Report 2018. October. https://lifeathome.ikea.com/home/ [9.10.18].

Su, Xiaobo. 2014. “Tourism, Modernity and the Consumption of Home in China.” Transactions of the Institute of British Geographers, 39(1): 50-61.

Tao, Li, Francis K.W. Wong, Eddie C.M. Hui. 2014. “Residential Satisfaction of Migrant Workers in China: A Case Study of Shenzhen.” Habitat International 42:193–202

Xinhua. 2015. “China’s floating population to hit 291 million in 2020: report.” China Daily, Nov 12. http://www.chinadaily.com.cn/business/2015-11/12/content_22438127.htm [9.10.18].

Xinhua. 2018. “Urbanization rate of China’s agricultural province exceeds 50 pct.” Xinhua, March 5. http://www.xinhuanet.com/english/2018-03/05/c_137017957.htm [9.10.18].

Yang, Shangguan, Chunlan Wang and Mark Y. Wang.2014.”Synergistic Evolution of Shanghai Urban Economic Development Transition and Social Spatial Structure.” In Transforming Chinese Cities, Mark Y. Wang, Pookong Kee, and Jia Gao (eds). London: Routledge.

Zhao, Wei. 2015. “Home Beyond the House: The Meaning of Home for People Living in Yanxia Village, Zhejiang Province, China.” Dissertation / Degree of Doctor of Philosophy in Architecture, Graduate College of the University of Illinois at Urbana-Champaign.

Spotted a mistake or want to add something? Please let us know in comments below or email us.

©2018 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com

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What’s on Weibo provides social, cultural & historical insights into an ever-changing China. What’s on Weibo sheds light on China’s digital media landscape and brings the story behind the hashtag. This independent news site is managed by sinologist Manya Koetse. Contact info@whatsonweibo.com. ©2014-2018

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