ACG gaining traction in China

According to him, most of the income will come from licensing and theme parks. Others include membership fee for paid content, including animation series and comics, and sales of authorized merchandise such as stationery, toys, cosmetics and food.

Already, income foreseen next year is likely to cover the estimated expenses, he said.

Besides And2girls, 14 virtual idols made their debut in China last year. The country now boasts more than 20 such virtual groups, including the oldest one Vsinger, a 15-year-old 'girl' produced by Shanghai-based entertainment company Zenith Group in 2012. It is the only one that has reportedly turned profitable already.

Like human singers, Vsinger was hired to endorse brands such as KFC, major dairy company Brightdairy and makeup brand Pechoin. Tickets of its latest concert in Shanghai, ranging from 480 yuan to 1,280 yuan, were sold out the minute they were launched on online ticketing apps, said a report from media website Economic View.

Many producers are trying new techniques to cut costs. Some dub the images with voices and songs uploaded by netizens and processed by music synthesizer software Vocaloid. But such alternative methods may carry potential copyright violation risks, Liu said.

Chen Rui, chairman of Bilibili, a popular video streaming site, said that young people in China are now able to afford diverse material things, especially in terms of cultural consumption.
Zhou Xiaolong, 24, who works for an infotech company in Shanghai, said, "It (the love for digital idols) is a hobby, just like computer games and shopping. It doesn't mean we lack the ability to communicate with real people."

He said he spent "a lot" on his hobby. A visit to an animation exhibition could set you back by a minimum of 500 yuan and a maximum of up to 2,000 yuan, he said.