What are brand communities, and how are the interests of companies and community members balanced within them?

Abstract

In the context of Web 2.0 and the proliferation of social media, this study investigates the dynamics of brand communities and the
mechanisms through which corporate and individual interests are balanced. Brand communities, defined as social networks centered around
shared brand affiliations, have evolved into critical platforms for value co-creation, driven by digital collaboration and user-generated content
(UGC). The analysis traces the transformation from traditional consumer-producer dichotomies to decentralized, community-driven economies, where consumers actively participate in product development, marketing, and innovation. Case studies such as Xiaomi and Gymshark
illustrate how virtual communities foster brand loyalty through emotional engagement, offline-online integration, and user empowerment.
Key findings reveal that individuals join brand communities to fulfill utilitarian needs (e.g., exclusive benefits), social identity, and social
capital acquisition, while companies leverage these interactions to enhance customer loyalty, reduce retention costs, and innovate iteratively.
The study highlights the emergence of a “community share” business model, where profitability hinges on trust-building, personalized user
profiling, and collaborative ecosystems. Ultimately, the equilibrium between corporate objectives and member interests is achieved through
reciprocal value exchange: consumers gain belonging and influence, while brands secure advocacy and sustainable growth. This research underscores the imperative for firms to adopt psychologically informed strategies to optimize co-creation in the mobile internet era.