What is the future of the passion economy ?
The rapid transformation in the economy – from a gig economy of contract service to a creator economy of creators and entrepreneurs – has given birth to the term Passion economy. The term was born in Silicon Valley among a small group and has spread like wildfire globally. India is witnessing a massive wave of creators, creator educators, and entrepreneurs who make money simply by following their passion.
What is the Passion Economy?
An economy fueled by digital products and services marketed across the globe via social and digital platforms is what constitutes Passion Economy. The new wave of freelancers and entrepreneurs is breaking archaic chains of traditional marketing with the single tool of digitalisation. Connecting directly to global audiences, these creators are converting their knowledge and skill into marketable products and services, which forms the foundation of passion economy.
Creator educators are a big part of this passion economy. Teachers previously engaged with institutions have today become self-made entrepreneurs who function independently through edutech platforms. Individuals passionate about educating and creating awareness are creating digital content consumable by audiences across the world. The passion economy is the future economy because it not only empowers individuals to sell their products and services but also increases the reach of such products and services. The popularity of passion economy can be further attributed to consumers, who now have access to a larger variety of products and services to choose from. Another factor contributing to the rise of the passion economy is the failure of traditional social media giants to curate content that satisfies consumers and caters to their needs. Thus, consumers are switching to newer content created by creators and creator educators to fulfil their demands.
Statistics related to the Passion Economy
In the past decade, the passion economy has grown faster than technology. The global figure has crossed 100 billion USD. A trembling crack in the economy was felt during COVID. According to the ILO (International
Labour Organisation), the world faced a tremendous loss of 400 billion full-time jobs during the pandemic. At this crucial time, the passion economy saved the day, creating groundbreaking digits in the global economy. India alone has experienced a 2x growth during the pandemic, showing an upward trend even after the cessation of lockdown. It is as if a discovery was made during the pandemic, which changed the Indian scenario drastically. Both consumers and creators continue to use online platforms. The businesses that sprung up during this period continue to flourish. In the past three months, the Indian passion economy went into a new boom with growth levels equal to that of the past whole year. The passion economy also gave rise to new professions like social media marketing and digital consultancies. Digital and technological developments are trying hard to keep pace with the new wave. Innovation can be seen in every aspect to keep up with the rising demand by consumers. Companies like TagMango have gained 600 million Indian subscribers, exemplifying the potential of the passion economy in India. Statistics predict a billion-dollar passion economy in India by 2025. In fact, employment will have a different appearance and meaning through the lens of the passion economy.
Rise of the passion economy in India
Owing to its population, India has an enormous consumer base. It is also a reservoir of knowledge and skill waiting to be recognised by the world. If we put these two statistics together, we can safely conclude that India is the largest potential contributor to the passion economy. India has been moving with an upward trend of 25% after COVID. The reason is that after the pandemic, there was a surge of employees leaving conventional full-time jobs to sign-up for entrepreneurship in the creator economy. The needs of an employee have changed after the two-year-long pandemic. Individuals are looking forward to flexible working hours, greater autonomy, and a hybrid phygital model – a combination of on-site and at-home work. This holds true for the Indian scenario. Workations and workstations have become such an integral part of work-life for any Indian employee that staying for long hours in an office seems unreasonable. The 2022 Linktree Creator Report said that full-time employees have also started their creator journey. According to the report, 66% of the Indian workforce has started creating content part-time, while 43% spend at least 5 hours or more on a weekly basis creating original content; the remaining 34% are creators who create content on a yearly basis. This means that every employee is essentially a creator riding the wave of the passion economy in India.