In China, internet celebs are turning into entrepreneurs. Here's how.

On a tree-lined street in Shanghai, a glass storefront shows off frilled dresses and high heels. It looks like a typical clothing store, except that it belongs to online fashion sensation LinForeverGirl, who has over four million followers on Weibo, China's Twitter equivalent.

Now, she's funneling those fans into foot traffic - and turning them into customers of her own clothing brand.

"[Key opinion leaders, or KOLs,] understand what people want. They understand what they'll buy," says Elijah Whaley, chief marketing officer of Parklu, which helps brands find and collaborate with social media influencers in China.

"All they have to do now is create the products, and in China, it's particularly easy to get hold of a manufacturer to make something," he adds.

Internet celebrities, sometimes called KOLs, have been around since the dawn of social media. Unlike traditional celebrities - such as actors, musicians, and athletes - KOLs gain a following through their online content, whether it's photos of food or videos about gaming.

In China, KOLs have taken off in the past few years because of their rising net worth. Last year, online comedian and celebrity Papi Jiang made headlines when she raised more than US$1 million in VC funding. Other KOLs, such as fashion and beauty bloggers, have been able to monetise their fan base by charging brands advertising fees, or receiving tips and gifts on live streaming platforms.

They're also starting their own product lines and launching online shops. For instance, Whaley and his girlfriend, Maggie Fu, are creating their own cosmetics brand under Melilim Fu, her online persona and brand. Currently, they're working on their first product, a cosmetics tool.

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This article was first published in Tech In Asia.