Wechat, a bright future towards a m-commerce plateform in China
You have probably heard about millions of times of WeChat and its dominant success in the Chinese market…but what is particularly interesting in Wechat case is not only the fact that it is a powerful social network but how Wechat succeed to optimize it towards an m-commerce platform allowing users to purchase on their own social network.
Here it is the main interesting point that we will go further in this analysis.
How this social network turn out to be a mobile e-commerce platform? The answer is using social weapon for brands and customers.
Before going further, there are some keys elements that you need to remember to understand the impact of Wechat success:
- 65% of Chinese people are using Wechat
- Almost 600 millions of users
- Wechat is owned by Tencent, one of the biggest Internet company in the World
- Wechat understand perfectly trendy wave and people needs at a given time: at first it was mainly a dating tool, then turn out to be a social network tool and even more professional one and now combining all these tool towards an m-commerce platform. Here is the strength of Wechat.
Wechat: the homeplace for brands
In 2012, Wechat decided to open its platform to brands allowing them to create official accounts. Now there are about 10 millions of brands having these official accounts.
But be aware about the word “official account” is not like in USA that proved the authenticity of the value of a brand, it just a word allowing brands to access to further functions of Wechat such as payments, location…etc.
Biggest brands have joined this system such as Nike, Burberry and the first to join was McDonald’s that today enjoy a complete equipment offered by Wechat to optimize its distribution channel by targeting more customers. If you want to know more about Burberry success in China, click here
The website JD.com has understand the Wechat potential as a gateway to target new potential customers and driving the strategy towards a more social aspect to attract Wechat users.
Wechat challenge the brand
Most of the companies think that if they have their official account on Wechat, it will be enough to success their marketing campaign…It is more complex than it.
- First, because you have to understand how chinese use Wechat. Chinese are using Wechat as a tool to chat with friends, share pictures, links, music and comments to the moments of Wechat and use other services that I will detail you on the next part (3) below.
- Second, there is one important thing that you have to remember if you are a company and you want to promote your brand with Wechat. Unlike Weibo and others Chinese social network, the main goal of Wechat is not to generate traffic, not based on exposure or influence but mainly based on a one in one personalized content dedicated to each Wechat’s user. Yes…Wechat focused on a social CRM tool more than other one. How? The content: You have to create relevant and useful content but above all, you have to get the user interested in your post: pictures, videos and interactive content. Besides this, you have to keep constant relevant content because users are not patient and are reagent, if they don’t like they will pass or unfollow your page. Promote your content: Because if you want to promote your brand on Wechat, you have to pass by “user’s approval”.
How? Get your audience interesting about your content and push them share it with friends, for example with incentive sharing, reward a user that has share the content with its friends. If you want to know more about how to promote your brand on Wechat click here.
Why? Because 80% of Chinese are relying on social networks before purchase a good, so it has a huge influence.
As Haoyu Shen, Chief executive officer of JD Mall says: “When you buy something on JD’entry point, you can post it and it will have the little red dot on the tab, allowing your friends to comment and share”
Combining Wechat’user needs and brands offers
Wechat has successfully combined user’s needs and brands offers. Here below an example and you will understand:
Wechat user: You will have an important Wechat Call meting to negociate a contract in Dubai, you don’t have time to eat? Well, you can order on Wechat and be delivered at your place.
Brand on Wechat: Do you want more customers to order your meal? You have a cutomer here, ready to order.
This ecosystem works perfectly because it is fitting nowadays society’s needs. Here below a range of services offered by Wechat:
- You can book a taxi, just indicate your position and where you want to go. At the end of the ride, users can pay through Wechat payment.
- You want to purchase a good? Go on this tab called: “Specials” you will be directed to JD.com website. Shops can also starts selling using Weidian, a mobile commerce plateform on Wechat. JD.com is one of the biggest retail giant having set up a shopping channel on Wechat.
- You want to book a movie ticket?
- You want to book a train ticket? …etc.
Payment facilities for brands and users
Payment is another reason to explain the success of WeChat towards an m-commerce platform. This so called: Wechat Wallet is one of the core strength of Wechat allowing this social network to attracts brands because of the huge amount of Wechat’s users and also users for new payment opportunities.
First, the interesting thing is that Wechat bring user’s money in its intra system, transforming it into a one way of payment. Users link their credit card to Wechat account.
You will not pay by credit card, you will pay by Wechat Wallet. Imagine you purchasing goods with your Facebook credit account…So the main strength of Wechat is here.
Second, Wechat is enjoying the o2o wave and use QR code for offline payment too at those brick and mortar stores, hotels or restaurants…etc.
Besides the wide choice of payment facilities, Wechat payment system work because chinese trust in it. Holding by Tencent, so chinese are not afraid to put their money in and an easy identification process.
To conclude, Wechat is on the way to become an important mobile e-commerce platform online, combining user experience with social network and commerce online.
- WeChat: The biggest social media app you’ve never heard of
- All you need to know about Wechat’s e-commerce features
- WeChat, an ecommerce platform ?
- How to develop your e-commerce via Wechat