China Internet Watch https://www.chinainternetwatch.com China Internet Stats, Trends, Insights Sat, 11 May 2024 07:59:23 +0000 en-US hourly 1 https://www.chinainternetwatch.com/wp-content/uploads/cropped-ciw-logo-2019-v1b-80x80.png China Internet Watch https://www.chinainternetwatch.com 32 32 WeChat E-commerce Amplifies with Video Account Surge https://www.chinainternetwatch.com/43528/tencent-video-account-ecommerce/ Mon, 12 Feb 2024 06:27:05 +0000 https://www.chinainternetwatch.com/?p=43528 Despite numerous attempts to dominate the e-commerce stage, Tencent has never relinquished its ambition in the competitive arena.

A recent unveiling at the “2024 WeChat Open Class PRO” has shone a light on its video account e-commerce business, demonstrating a nearly threefold increase in Gross Merchandise Value (GMV) in 2023. This growth is complemented by a more than 244% rise in order volume and an approximately 300% increase in product offerings.

Industry insiders estimate that live commerce via WeChat’s video accounts generated a GMV between 40 to 50 billion yuan in 2022. Following the reported threefold growth, the 2023 figures are projected to hit between 120 and 150 billion yuan.

Li Chengdong, an e-commerce analyst and founder of Dolphin Think Tank, acknowledges the impressive growth rates of video account e-commerce in 2023. However, he notes the sector’s scale remains modest compared to giants like Alibaba, JD.com, and Pinduoduo, whose GMVs have breached the trillion yuan mark, alongside emerging live commerce platforms like Douyin and Kuaishou.

A significant development is Tencent’s integration of video account e-commerce with its WeChat advertising system, allowing for video account livestreams to be promoted within Moments. This new feature opens up fresh avenues for traffic acquisition, potentially boosting conversion rates by shortening the consumer journey from ad click to purchase.

The integration extends beyond advertising, as various e-commerce formats within the WeChat ecosystem, such as social commerce and mini-program commerce, are linking up with video account e-commerce. This strategic move positions video accounts as a foundational infrastructure within WeChat e-commerce, facilitating a seamless flow of both public and private domain traffic within the social network.

WeChat’s new social e-commerce platform integrates Shopping Accounts

Launched in 2020 as a counter to Douyin and Kuaishou, WeChat’s video accounts rapidly developed a comprehensive suite of short video functionalities. By integrating with other WeChat services like Official Accounts, Search, and Mini Programs, video accounts have become a crucial part of the ecosystem.

The platform’s commercial exploration, especially in live commerce, started in earnest around the first half of 2021. According to Yu Haijun, founder and general manager of Guangzhou Zhi Ling Network Science and Technology Co., Ltd., early adopters included notable brands drawn by the platform’s promise of a refined operational framework focusing on user experience.

Tencent’s Q3 2023 earnings report highlighted a more than 50% year-on-year increase in total video account views, with WeChat’s video account content ecosystem and creator base continuing to expand. Partnering platforms like Weimob reported a 47.6% increase in video account merchants and a 50.5% increase in their GMV in the first half of 2023, further underscoring the growing importance of video accounts in the e-commerce landscape.

Despite these advances, some insiders express dissatisfaction with the growth rate, pointing to a relatively low ad load rate in video content compared to other platforms. This limitation suggests a need for increased user engagement and refined recommendation algorithms to boost traffic and conversion rates.

The integration of WeChat Moments ads with video account commerce represents a deepening of video accounts’ role within Tencent’s ecosystem, offering merchants enhanced promotional opportunities and streamlined customer purchase pathways. However, achieving a significant uplift in conversion rates through this integration will require meticulous data alignment and robust cross-departmental collaboration.

As Tencent doubles down on its investment in video account and live commerce, the future of WeChat e-commerce hinges on the harmonious fusion of advertising and transactional capabilities, underscoring the platform’s commitment to enriching its commercial ecosystem.

WeChat expanding e-commerce reach with mini program integration on JD, Xiaohongshu

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520 Day: China’s Modern Twist on Celebrating Love https://www.chinainternetwatch.com/7517/internet-valentines-day/ https://www.chinainternetwatch.com/7517/internet-valentines-day/#comments Wed, 17 May 2023 23:00:13 +0000 http://www.chinainternetwatch.com/?p=7517
#520# a trending topic on Weibo on 20 May
#520# a trending topic on Weibo around 20 May in China

What’s this “520 day” that intrigues many in China? The term 520, an abbreviation for May 20, denotes an unofficial Valentine’s Day in China. The number “520” phonetically resembles “Wo Ai Ni” or “I Love You” in Chinese.

While February 14 remains the globally recognized Valentine’s Day, the Chinese honor their affection on several other occasions as well, including May 20 (520 Day) and the Qixi Festival. These days are regarded as Chinese versions of Valentine’s Day, with the 520-day holding special significance as it symbolizes “I Love You.”

Despite not being an official holiday, 520 Day has garnered popularity among couples and singles as an opportunity to express romantic love.

Due to the ongoing pandemic in 2020, the “520 Day” celebration witnessed changes with fewer public gatherings. Nonetheless, businesses capitalized on the festival by initiating online engagement campaigns.

Prada’s 520 campaign page on Weibo

For instance, luxury brand Prada, created a campaign using the hashtag #prada520# on Weibo, one of China’s top social platforms. The campaign featured brand spokesperson Cai Xukun and garnered 180 million views as of May 5.

The “520 Day” traces its roots to Taiwanese singer Fan Xiaolan’s song “Digital Love,” where “520” symbolized “I love you.” Over time, “521” was also interpreted as “I am willing,” and “I love you” in China, earning various epithets like “Marriage Day,” “Love Expression Day,” and “Love Festival.”

These two dates, May 20 & 21, serve as annual internet Valentine’s Days in China, echoing the phrases “I (5) love (2) you (0/1)” in Chinese. While they lack historical roots, they are products of commercial promotions in the 21st century.

Despite not being official holidays, the evenings of these days see restaurants and cinemas bustling and prices surging due to Valentine’s Day celebrations.

May 20 is particularly crucial as men utilize this opportunity to express their romantic love for women, often presenting gifts or ‘hongbao.’ Some couples even choose this date for their wedding ceremony.

The difference between 520 and 521 is that the former is largely a day for women, while the latter caters to men. On May 20, men express “520” (I love you) to their significant other. The subsequent day, women reply with “521” to indicate their reciprocation of love.

For marketers in China, these days present lucrative opportunities for promotions. The rising orders of roses, surging sales of chocolates, and full-house hotels underscore the business potential of the “520-day festival.”

Most Retweeted Photo on Sina Weibo on 20 May
Most Retweeted Photo on Sina Weibo on 20 May in 2014

A few notable examples of this trend include the most retweeted photo on Sina Weibo on May 20, 2014, and a post by The Economist in 2017 asking “how do economists say ‘I love you’?” The topic #Sweet 520# witnessed almost 4 million discussions and over 1 billion views as of noon on May 20, 2017.

Economist’s post on Weibo “how do economists say ‘I love you’?” in 2017

The characteristics of 520 Valentine’s Day include:

  1. Fashionable: “520” resonates with the younger generation who find creative ways to celebrate the day, even choosing this date for their wedding. It’s also a popular topic on WeChat Moments and QQ group chats.
  2. Younger: Those under 30 years old, who are quick to embrace new trends and spend much of their free time on the internet, are the primary followers of 520 day.
  3. Spiritual: Gifts exchanged on May 20 and 21 lean more towards the “spiritual.” It could be a coded message of love sent over the internet or mobile phone.
  4. Implicit: Unlike the globally recognized Valentine’s Day, which is for established couples, the 520 Internet Valentine’s Day is preferred by men and women to subtly express their love using digital codes.

5 key trends shaping the Chinese economy, accelerated by COVID-19

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WeChat Users & Platform Statistics 2023 https://www.chinainternetwatch.com/31608/wechat-statistics/ Thu, 12 Jan 2023 00:00:40 +0000 https://www.chinainternetwatch.com/?p=31608

In 2022, the total views of the original content on WeChat Channel (video account) increased by 350% year on year, and the scale of live broadcast increased by 300%, according to WeChat’s data released on 10 January 2023.

The commercial potential of live video broadcasting continues to be released, and the corresponding e-commerce sales increased by more than eight times year on year.

In 2022, the number of daily active creators and the average number of videos uploaded by the video account increased by more than 100% year on year, the number of creators with at least 10,000 fans increased by 308%.

The number of video account earners increased by 101%, and the total income of live video anchors increased by 447%.

Live video GMV increased by more than 8 times year on year in 2022, and the average selling price exceeded 200 yuan. Among them, the top three categories of consumption are covered by clothing, food, and beauty.

The monthly active users of WeChat Search have increased to 800 million, and the total search volume increased by 54%. Mini Programs are widely used in scenic spots, hotels, airports, and other fields, and the number of WeChat Mini Programs has increased by 183%.

WeChat Search contributed to 27% of Official Account follower growth and 20% of Mini Program’s new daily active users. Its contribution to WeChat Channel follower growth has increased by 120%.

WeChat MAU

Over 330 million of WeChat’s (known as Weixin in China) 1.2883 billion monthly active users use video calling. 780 million users are on the social networking section WeChat Moments and 120 million publish updates. The content network WeChat Official Account has 360 million users.

WeChat has evolved from an instant messaging app to a service meeting the digital needs of over 1.27 billion MAU in Q4 2021. Each day, more than 120 million active users post in social networking Moments, 360 million users read Official Accounts articles, and 500 million users access Mini Programs (Q1 2022) daily.

For Q4 2021, WeChat daily active advertisers expanded by over 30% year-on-year. Over one-third of Moments’ advertising revenue was generated from advertisements using Mini Programs as landing pages and advertisements connecting users to customer service representatives via WeCom.

WeChat Video Accounts’ time spent per user and total video views more than doubled year-on-year as Tencent enriched content diversity and enhanced the product experience.

WeChat Mini Programs

The daily active users on WeChat Mini Programs reached 450 million according to WeChat official data in January 2022. The transaction volume of catering, tourism, and retail increased by 100% year-on-year. Mini Program DAU reached 500 million (Q1 2022).

The number of Mini Program developers has exceeded 3 million.

In 2020, the daily active users of WeChat Mini Programs exceeded 400 million, according to its official data shared at its annual event WeChat Public Lecture.

The number of mini programs used per user increased by 25%, the average transaction value per user grew by 67%, the number of programs with transactions increased by 68%, and the annual transaction volume of more than doubled in 2020.

In 2020, more than 100 million people purchased in shopping malls and department stores on WeChat Mini Programs. With the help of mini program pre-sale + offline self pick-up mode, more than 300 million users purchased fresh fruits and vegetables.

WeChat Mini Programs overview

WeChat Games

In 2020, the commercial realization of WeChat mini games increased by 20%.

Last year, the proportion of male and female users in the distribution of mini games accounted for 50% respectively. 40% of the users in the first and second-tier cities, and 65% of the users aged 30 and above.

Compared with 2019, the per capita game duration of mini games increased by 50%, and the average number of games played increased by 20% in 2020.

China game live streaming revenues to double by 2021

WeChat Search

The number of monthly active users of WeChat search has reached 700 million according to WeChat official data released in January 2022.

WeChat search staff said that in the mobile Internet era, search should not be limited by the search box, but need to be accessible by the touch. Users can search while chatting.

WeChat search will screen out the high-quality content of WeChat and produce a more accurate connection with users.

In the future, it can expand the search scope to the whole internet-based the needs of users. The search results are currently mostly provided by WeChat Official Account and Sogou.

Top search trends in China

WeChat Pay

In January 2022, WeChat shared the latest progress on WeChat Pay:

  • 23 thousand monthly service providers
  • Over 10 million merchants
  • More than 1800 banks and Payment institutions
  • 23 thousand monthly merchants
  • In the next three years, WeChat Pay will continue to carry out digital upgrading of WeStore, with a planned investment of more than 10 billion yuan

In 2020, Zhifufen, a credit score on WeChat Pay, saw more than 240 million users. It boosted the conversion rate of e-commerce orders by 14% and the repurchase rate of retail merchants by 73%.

In 2021, WeChat mini stores and Zhuanzhuan (a secondhand-goods marketplace) will integrate Zhifufen.

In the e-commerce industry, WeChat Pay’s Zhifufen enables post-payment after receiving the delivery and faster refund. Users can quickly receive a refund after submitting return logistics information.

As of January 2022, more than 50% of users have activated Zhifufen, whose solutions cover more than 3000 industries. WeChat Pay unit cooperates with the e-commerce industry on “buy first and pay later”, which has been used by more than 100 million users.

Zhifufen also announced the launch of audio and video members’ services such as “watch first and pay later”, which helped solve the problems that bothered audio/music and video users to deduct fees in advance and forget to terminate their contracts.

China’s online payment users penetration reaching 86%

Enterprise version of WeChat: WeCom

In 2020, there were 80,000 enterprise WeChat partners, with a year-on-year growth of 400%. 

11.91 million applications connect to WeCom, with a year-on-year increase of 250%. Since COVID-19, there have been 5.5 million real enterprises and organizations on WeCom with 130 million active users reaching 400 million WeChat users.Click To Tweet

Acquire, convert, and retain customers through WeChat Ads + WeChat Work (WeCom)

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Tencent launched search ads on WeChat https://www.chinainternetwatch.com/35315/tencent-wechat-search-ads/ Wed, 09 Nov 2022 13:00:30 +0000 https://www.chinainternetwatch.com/?p=35315 The WeChat advertising team announced the launch of WeChat search advertising on 3 November 2023, which supports competitive promotion capabilities.

According to WeChat, search ads will support six promotion goals, including WeChat Official Account promotion, sales lead collection, products promotion, branding events promotion, app promotion, and WeChat Mini Games promotion.

WeChat search results on "hotel" and search ads
WeChat search results on “hotel” and search ads

It supports three landing page types, namely, native promotion page, WeChat Mini Program, and custom link. And, based on the search ability of WeChat, WeChat search advertising can support the sale of brand keywords, keywords words, generic keywords, and generic keywords.

At present, Tencent’s mobile search advertising scenarios mainly include WeChat Search and QQ Browser search. In these scenarios, advertisers can do brand and performance marketing.

Since the launch of search feature on WeChat in 2017, it has been at the top of the main interface.

However, after five years of iteration, it has now become a “global search” that includes WeChat Moments, Official Account, and Mini Programs from the early days when it could only search local chat records and contacts.

At the same time, the search scope has also expanded to all content and services related to search queries in WeChat.

WeChat Mini Programs Insights

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China online advertising market insights 2022 https://www.chinainternetwatch.com/31087/online-advertising-market/ Tue, 05 Apr 2022 11:00:02 +0000 https://www.chinainternetwatch.com/?p=31087

In 2022, 42.9% of advertisers in China expect to increase spending in digital marketing, 25 percentage points more than advertisers expect to reduce spending, according to CTR.

China advertising market vs online ad market

Advertisers of large enterprises with a budget of 500 million yuan or more are more confident in digital marketing spending. In 2022, 52.4% of advertisers are expected to increase spending in digital marketing.

The top online advertising medium is e-commerce, accounting for 46.5%, followed by short video (16.6%) and News (16.6%), according to data from QuestMobile. Short video advertising still saw fast growth of over 31% in 2021.

When Chinese advertisers select platforms for digital marketing, platform traffic is the core consideration factor of their advertising budget allocation, ranking first, accounting for 73.8%.

At the same time, advertisers pay more attention to pl...

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China Digital Luxury Report 2021 https://www.chinainternetwatch.com/31265/bcg-luxury-consumer-behavior/ Mon, 07 Feb 2022 11:00:19 +0000 https://www.chinainternetwatch.com/?p=31265

China's post-90s (those born after 1990) are expected to contribute to 46% of China’s luxury purchases in 2021, according to joint research by Tencent Marketing Insight (TMI) and Boston Consulting Group (BCG).

China's post-90s already make up 50% of the luxury goods buyers in the country, with a fast growth rate of between 25-35 percent in the past year.

Younger consumers were likely to buy luxury items as a way to express or reward themselves, as well as to experience the brand. They also valued new shopping experiences such as more interactive online shopping or newly launching brands’ pop-up stores.

Heavy-spending consumers who spend more than 300,000 yuan (US$47,000) annually on luxury items represent 40% of the total luxury sales. The number of people in this category will grow at least 28% in the coming year and brands should focus on driving repeat purchases and brand loyalty to continue the momentum according to the Tencent report.

Consumers at large tend to switch ...

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Exploring new ways to capture Chinese Gen-Z’s attention https://www.chinainternetwatch.com/32657/capture-gen-z-attention/ Tue, 02 Nov 2021 02:45:03 +0000 https://www.chinainternetwatch.com/?p=32657 Identifying proper styles of communication is critical in capturing Chinese Generation Z’s attention. Generation Zs value the way brands communicate and prefer particularly “young” and “surprise” ways of communication.

60% of Generation Z said that “the way brands communicate with me” plays a major role in their purchase decisions, according to a survey conducted by Tencent.

“Reliable” & “honest” are the basic requirements for brand communication, Gen-Zs focus more on young lifestyles and surprises while older generations value more “professionalism”.

69% of Gen-Zs are willing to pay for products from brands that they identify themselves with and those who can help them “decorate” their personalities. Brands have become a way for young generations to identify themselves.

Compared with previous generations, Gen-Zs tend to buy more products with specific brand images to help build their own personal image.

Building characteristic communities

Private domain channels have become the main transaction scenario, quality services are highly valued.

61% of Generation Z have joined various types of shopping groups (14% brand membership group, 24% merchant membership group). These shopping groups have a major influence over their purchase decisions. Over 86% of those who joined these groups had purchasing intentions.

Apart from discounts, Gen-Zs also expect more soft experiences, in particular acquiring knowledge (44%), having readily available help (38%), and experiencing privileged treatments, more compared with older generations.

The effectiveness of discount promotions is fading; social media content has become the new major form of influence.

Compared with older generations, promotions through discounts are having less effect on the willingness to buy of the younger generation (Generation Z 44%; group born in 90-95 51%; group born in the 80s 53%).

Private domain channels are effectively capturing Generation Z’s attention. They often see the same brand repeatedly (28%), while social interaction can effectively encourage purchases.

Gen-Zs mainly get influenced by their friends (31%), acquaintances (25%), WeChat Moments (21%), KOLs (21%) through social media.

Creating quality content

Generation Z is spending their attention across multiple fields.

Gen-Zs love to indulge themselves and also love to explore possibilities. Hobbies are their major focus point (88%). In addition, they also pay attention to acquiring new knowledge (41%), enriching real-life experiences (37%).

Compared with previous generations, they pay more attention to product/service reviews (26%) and motivational content (22%).

Celebrities are effective in promoting brand awareness. 35% of Generation Z said that collaborations between brands and celebrities have great influence over their purchase decisions.

Brands collaborating with IPs can also effectively capture Gen-Z’s attention. 42% of them said that this type of collaboration has significant influence over their purchasing decisions.

Chinese Gen-Zs attention insights 2021

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Chinese Gen-Zs’ attention insights 2021 https://www.chinainternetwatch.com/32608/generation-z-attentions/ Tue, 26 Oct 2021 12:00:08 +0000 https://www.chinainternetwatch.com/?p=32608

Attention is a scarce resource in today’s world. It has unique distribution patterns and characteristics. Only with proper methods, can brands capture, develop and manage it.
Chinese Gen-Z Attention Distribution
Time
Chinese Generation Z’s attention is widely allocated across different time periods. If we look at a 24-hour calendar day, Gen-Zs generally spend a significant part of their attention during late night, particularly from 10 pm to 2 am the next day.

They mainly spend their time on watching videos, listening to music, and gaming. And if we look at a 365-day calendar year, Gen-Zs tend to pay more attention to festivities and holidays comparing with elder generations. They often treat themselves by shopping.

Gen-Zs usually have 8 pm-2 am at their disposal to allocate their attention at will. They generally stay until late at night and indulge themselves in entertainment during their private time.

8 am-12 pm and 2 pm - 6 pm are two time periods where they don’t have ...

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Why are the Blind Box so attractive to many consumers in China? https://www.chinainternetwatch.com/32202/blind-box-secrets/ Wed, 28 Jul 2021 00:30:57 +0000 https://www.chinainternetwatch.com/?p=32202

A box is supposed to function as a storage tool. But in recent years, the "Blind Box" has gained its popularity in China.

Benefiting from this trend, a Beijing-based toy maker Pop Mart raised $676 million in an initial public offering (IPO) at the end of 2020 which gave the company a valuation of $7 billion ahead of the trading debut.
The Trendy Box
December 10, 2020, Chinese toymaker Pop Mart International Group made a stellar debut on the Hong Kong stock market, closing nearly 80% higher than its issue price to end the day with a market capitalization of $12.5 billion.

The success of Pop Mart and its subsequent IPO is linked to a simple yet fascinating product - the Blind Box.

The second half of 2019 saw a sudden uprising of fashionable "Blind Box", which can be spotted everywhere, from a physical mall to the vast ocean of the internet - WeChat Moments, Weibo, etc.

As its name indicates, a Blink Box is a box for sale whose content is unknown to the buyer before maki...

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WeChat Apps Guide (Weixin Mini-Programs) https://www.chinainternetwatch.com/28090/wechat-mini-programs-2019a/ Wed, 09 Jun 2021 12:30:20 +0000 https://www.chinainternetwatch.com/?p=28090

The launch of Mini-Game “Jump” (Tiaoyitiao)  made WeChat Mini-Programs (or WeChat Apps) an instant hit in early 2018. On average, 230 million users used WeChat Mini-Programs daily, 60 million more than 2017. It is estimated to exceed 350 million by the end of 2019.

Read the latest insights on WeChat apps and mini programs here.

WeChat’s Mini-Programs has covered over more than 200 industries and provided over 100 billion times of requests. The sector of public services has been available among 362 prefecture-level cities and created over 500 billion commercial value. The total transactions were 600% more than a year ago.

At the end of 2018, over 2.3 million WeChat Mini-Programs has gone online since its launch in January 2017, which increased by nearly 300% from early 580 thousand.

In terms of the total number of applications, WeChat took less than two years to surpass Apple’s App Store, which held 2.1 million apps with ten years. Aldwx.com’s Mini-Programs data statistics platform forecasts the total mini-apps on WeChat will surpass 5 million by the end of 2019.

It is becoming more and more difficult for a mini-programs to get enlisted in the top 100 ranking on WeChat.

Tongcheng-eLong and Pinduoduo took the first two spots in December 2018. 34% of the top 100 mini-programs turned out to be newcomers. On average, 30% of the top 100 would be replaced by new ones every month in 2018.

All WeChat mini-programs attracted more than 8 billion yuan (US$1.19 billion) from 110 funding rounds led by 120 investment agencies. The figure was eight times higher than it was in 2017.

Offline retail and online shopping mini-programs were the two most popular areas, which together accounted for nearly 70% of total funding.

9 Brands see great results from WeChat Mini Program live streaming campaigns

The advertising market of WeChat Mini-Programs is projected to grow from 5 billion yuan in 2018 to 20 billion yuan by 2019. The retail transactions made with WeChat ecosystem is to exceed 3 trillion yuan by 2019.

Following the launch of Nearby Mini-Programs feature, some leading retailers have successfully connected online marketing scenarios with offline. For example, IKEA WeChat Mini-Program saw 2.26 million visits in 24 hours on the day it went online.

On average, each user accesses WeChat Mini-Programs 4.25 times a day and spends 8.7 minutes on it. WeChat Mini-Programs has seen 600 million users as of the end of 2018. 72% of WeChat users have used WeChat Mini-Programs; 34% of whom used it frequently.

Business guide to WeChat Mini Program live streaming

WeChat Apps Usage Scenarios

53% of users use WeChat Mini-Programs mainly for temporary usage, 40% didn’t want to download mobile apps, 33% are automatically redirected to it after scanning QR code or clicking, and 31% just want to give a try.

User profile & usage preference

Among WeChat Mini-Programs users, 58% were men, 70% under 40 years old, 76% college educated or above, and 52% lived in tier-3 or lower tier cities.

42% of users played Mini-Games on WeChat, 39% used lifestyle services mini-programs, and 28% viewed news.

Specifically, those aged 17 years or younger mainly used WeChat Mini-Games. Users between 18 and 49 years old like to use Mini-Games and lifestyle service mini-programs. And, older users over 50 years old prefer news mini-programs, such as People’s Daily, and lifestyle service mini-programs.

Out of the 69 entry paths to access WeChat Mini-Programs, chatting, sharing, search, QR code, and shortcuts are most frequently used.

44% of users chose shortcuts from My Mini-Program in the main chat interface, 40% accessed from friends’ sharing (especially preferred by older users), and 35% entered through Official Account redirection.

Usage scenarios

53% of users use WeChat Mini-Programs mainly for temporary usage, 40% didn’t want to download mobile apps, 33% are automatically redirected to it after scanning QR code or clicking, and 31% just want to give a try.

Mini Program platforms in China: WeChat vs. Alibaba vs. Baidu

In the eyes of users, what makes WeChat Mini-Programs attractive is its ease to use (60%), no need to download apps (57%), no RAM usage (31%), and convenience to share with friends (28%).

71% of users have shared Mini-Programs to others because they deem it valuable (57%), they were asked by friends (22%), or attracted by rewards (15%).

56% shared practical tools for office collaboration, 48% shared interesting contents to create topics and enhance interactions, and 32% shared Mini-Games to show gaming advancement, earn red envelops, or invite someone to compete against themselves, etc.

30% of WeChat users have used Mini-Programs to shop. 43% of them are willing to download apps, 40% found the product offer was cheaper, and 34% were redirected from posts on WeChat Moments.

However, some program designs affect users’ experience while shopping, such as profit-provoking shares and useless vouchers.

Users’ impressions on WeChat Mini-Programs

For those not using WeChat Mini-Programs, 30% found it not easy to find the one they want as many users mainly get access from friends’ sharing. 25% found the interface choppy especially when they played Mini-Games. And, 23% are worried about a specific function because it seems only useful for temporary usage.

Overall, users hold positive impressions toward WeChat Mini-Programs. 44% of users thought Mini-Programs could replace apps for occasional usage, 36% believed it could help save the smartphone storage, and 32% only viewed it as a tool.

40% of users expect WeChat Mini-Programs to improve the interface switching fluency between chat and mini-programs. 37% expect more useful mini-programs. And, 37% wish it more active in interactions.

One-third of users are willing to download the app after they have a try with a mini-programs. However, most of the users are primarily provoked by profits to download the app.

WeChat’s new social e-commerce platform integrates Shopping Accounts

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China social e-commerce market insights https://www.chinainternetwatch.com/31901/social-e-commerce-market/ Tue, 04 May 2021 03:00:40 +0000 https://www.chinainternetwatch.com/?p=31901

Social e-commerce accounted for 34.37% of total e-commerce transactions in 2020 according to a survey conducted by the Internet Society of China. For social e-commerce merchants, the top sources for users are WeChat Groups and WeChat Moments.

Tmall accounted for about one-third of the surveyed brand merchants' e-commerce sales in 2020. JD and Pinduoduo are also essential sales channels.

WeChat plays a vital role in the social e-commerce segment; WeChat Groups and Mini Programs are important channels for transactions.

Total transactiosn on WeChat Mini Programs totaled 1.6 trillion yuan in 2020 while social e-commerce accounted for 89.15%.

Brand merchants' owned mini-programs saw a total of 614.5 billion yuan in e-commerce transactions while platforms' reached 812 billion yuan.

For social e-commerce merchants, the top sources for users are WeChat Groups, WeChat Moments, and WeChat Official Accounts.

Factors influencing social shoppers' decisions are ...

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How content help businesses in branding and driving sales in China https://www.chinainternetwatch.com/30604/diversifying-content/ Wed, 08 Jul 2020 00:00:19 +0000 https://www.chinainternetwatch.com/?p=30604

Nowadays, contents have penetrated all sectors in China and become an important productivity tool. They can help companies realize brand premium, iterate product selection, and upgrade CRM tools.
Use contents on building a new brand
Some Chinese content specialists think that they should work on content as if they were working on products. For companies, it will be useful to work on branding as if they were working on content.

The new generation of consumers is rising and when they select what to buy, they not only consider the functional aspect of the products but also the cultural aspect. Products will be closely tied with contents in order to meet what consumers demand.

According to Xinbang’s survey, 77.2% of Chinese consumers consider that the cultural elements of a certain product will influence their purchasing decisions, among which 10.1% even consider the cultural elements the most important factors.

Cultural elements are especially important when consumers choose cl...

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WeChat advertising trends for luxury products https://www.chinainternetwatch.com/30483/luxury-wechat-ads/ Tue, 28 Apr 2020 01:45:36 +0000 https://www.chinainternetwatch.com/?p=30483

It has been 6 years since the first advertising for luxury products appeared on WeChat Moments in 2015 and the luxury sector first tested out WeChat Advertising. WeChat as a social platform has redefined luxury product marketing, allowing luxury brands to use social and digital ways to tell Chinese customers their own brand stories.
Over 90% growth in advertising investments for the last 5 years.
What are the changes in luxury product marketing on WeChat?

In the last 5 years, the average annual growth rate of advertising investments from luxury brands on WeChat exceeded 90%. Advertisers' demand and focus have also changed following high growth.

WeChat has become the main battlefield for digital marketing strategies.

From the display advertising at the very beginning, to the current social marketing matrix, WeChat has become far more than an advertising platform for the luxury sector, but also an important digital marketing battlefield where long term brand maintenance, daily...

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Review: Xiaohongshu’s live streaming on Business Accounts https://www.chinainternetwatch.com/30326/xiaohongshu-live-streaming-business-accounts/ Wed, 04 Mar 2020 02:00:38 +0000 https://www.chinainternetwatch.com/?p=30326

Xiaohongshu, also known as RED or Little Red Book, has been preparing its Business Account live streaming function for almost a month. It is officially announced that Xiaohongshu will provide quality brand partners and the campaign-based partnership project with access to its Business Account live streaming platform.

Xiaohongshu explains that brand representatives, professional sales guides, and quality KOCs can live stream to followers directly through its Business Account platform.

At the same time, it will allow direct interactive live streaming between brands and KOLs, in order to help brand owners overcome the barriers between online and offline, as well as to get closer to their customers.

Last year, Taobao, Kuaishou, and TikTok all started and witnessed successful live streaming performances. Now since the official announcement, many sellers on Xiaohongshu are very eager to try out the new function, in the hope that it can generate significant traffic.

There are many...

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How some industries in China benefiting from the novel coronavirus outbreak https://www.chinainternetwatch.com/30311/covid19/ Wed, 26 Feb 2020 02:12:07 +0000 https://www.chinainternetwatch.com/?p=30311

While most industries are hit by the novel coronavirus outbreak (COVID-19), some sectors in China besides the e-commerce (especially fresh food e-commerce) sector see a boost. Find out how businesses in entertainment, healthcare, and real estate are responding as well as the live streaming's being vastly adopted as a sales and marketing tool in China.
Entertainment
Cloud Music Party

Recently, Kuaishou and Taihe Music announced that they would introduce a Cloud Music Party Week, providing users with non-stop online music events every day including a live streaming show at 12:00, a musician live streaming at 15:00, and a DJ show from 19:00 to 24:00.

Bilibili also introduced its online music live streaming event recently, partnering with organizations such as Modern Sky and Live House-School. Over 70 bands and musicians participated in this project.

Thanks to the Music + Internet model introduced by the c...

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Rising consumption power of China’s small town youth, part 3 https://www.chinainternetwatch.com/30285/small-town-youth-part3/ Tue, 25 Feb 2020 02:02:28 +0000 https://www.chinainternetwatch.com/?p=30285

Like all parents in the world, new small-town youths who have become parents always want to provide the best for their children. When they make the purchase for their children, they pay more attention to quality, safety, and children's preferences; and, they are much less price-sensitive.

Read Part 1 here, or Part 2 here. Or, download CIW eBook: Small Town Youth, New Growth Engine in China

New small-town youths who have become parents do not compromise on their children's education. Like all parents, they hope that the next generation can stand out and live a better life.

They spend an average of 2,031 yuan per month on their children's education. They not only attach importance to their children's academic knowledge but also attach importance to the cultivation of their children's interests and hobbies.

83% of the new small-town youth families own real estate, which is higher than that in the first and second-tier cities; and, a higher proportion of new small-town youths l...

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Acquire, convert, and retain customers through WeChat Ads + WeChat Work https://www.chinainternetwatch.com/30251/wechat-ads-wechat-work/ Wed, 29 Jan 2020 08:00:00 +0000 https://www.chinainternetwatch.com/?p=30251 WeChat Advertising provides advertisers with a customer acquisition solution integrating WeChat Advertising with WeChat Work.

It connects the advertisers’ accounts with their WeChat Work (enterprise version of WeChat) accounts in order to better reach out to target groups and to increase customer management efficiency. This, in turn, can help improve customer services and conversion rates.

Making the connecting more efficient

The customer acquisition solution combining WeChat Advertising with WeChat Work can provide advertisers with tools for building landing pages, automatic deployment of multiple customer services and smart optimization.

These tools allow advertisers to acquire customers in a new way and significantly simplify the process of customer reach-out and acquisition. With these tools, advertisers can manage their traffic volume at a more granular level and maximize customer value.

WeChat Ad to Retainment on WeChat
WeChat Ad to Retainment on WeChat

Tools for Building Landing Pages

In order to help advertisers achieve high efficiency in reaching out and acquiring customers, new follow-widgets and pages for WeChat Work are added to the native promotion pages and landing pages.

In this way, WeChat users can quickly and easily follow the advertisers’ WeChat Work account. Advertisers can quickly achieve conversion and track their landing pages on WeChat Work based on the characteristics of the sector they are in.

Advertisers can monitor the number of their followers on their Tencent Ads back-end dashboard or WeChat Work in the process of advertising campaigns.

Automatic Deployment of Multiple Customer Service Staffs

This solution provides advertisers with the ability to automatically deploy customer service staff in order to make their services more efficient.

Advertisers can authorize WeChat Work via the Tool Box in the back-end. After authorization, they can add departments or employees within their organization to create customer service groups.

In the process of advertisement deployment, unique QR codes will be generated automatically for each customer service group. When the user scans the QR code, the system will automatically deploy a customer service staff within the group. The user can then enjoy 1-1 service after adding the operator as a friend on their WeChat.

Smart Optimization

With the new solution and oCPM bidding, it can help to optimize the “Follow WeChat Work customer service account” process, and in turn, can improve the conversion rates for customer acquisition.

Advertisers can rate the process and identify target groups that are more likely to follow, then optimize their advertisements with better conversions.

The new solution makes the process of customer acquisition significantly shorter and improves the conversion rate, allowing them to effectively lower the costs of customer acquisition.

In the meanwhile, the new process fully leverages on the connection between advertisers and users to build a direct communication channel between users and customer service operators. This can allow advertisers to offer users efficient, high-quality, and real-time services.

In addition, advertisers can achieve high-conversion and retain target users in their WeChat Work. These users can be reached and engaged again through WeChat Moments (WeChat’s social networking section) and community management (WeChat Group) in order to maximize their user value.

Currently, this solution supports an omnichannel deployment through WeChat Moments Ads, Official Account Ad, and Mini Program Ads.

Thanks to the 1.15 billion users, the highly efficient smart deployment technology, and the targeted reach ability, advertisers can retain users in their WeChat Work in a highly efficient way. They can then provide these users with more personalized professional service, increase the user value, and achieve business growth.

Helping eCommerce to Capture Long-term Value

1-on-1 customer recommendation
1-on-1 customer recommendation on WeChat

With the increasing cost of traffic, the marketing-to-sales eCommerce business model starts to encounter its bottleneck. The difficulty to retain users, together with the long sales cycle for high premium products makes it very difficult to guide users with high-quality products and services in the long term.

Therefore, the operational advantage of being able to constantly increase user value proves to be of great value.

With the new process, users can follow the advertisers’ WeChat Work account and interact directly with customer service staff after seeing the ad, allowing higher effective and real-time services.

At the same time, advertisers can also introduce their products and content directly to users and keep them engaged. Combining with e-commerce promotions such as Double Eleven, advertisers can keep the push marketing content effective.

In addition, thanks to WeChat Work accounts’ ability to post on WeChat Moments, advertisers can timely update users on their products, professional knowledge, and maintain customer relationships in a non-intrusive way.

Targeting users with a certain level of knowledge on the products, advertisers can manage the community through groups in WeChat Work too.

In this way they can efficiently reach out to their customers afterward and provide them with more professional and customized services, therefore improving user engagement and increase their re-purchasing frequency.

Combining with the ability to connect to WeChat mini-programs, advertisers can integrate the online shopping function of the mini-programs into their WeChat Work, providing multiple service windows to customers.

WeChat Ad
Left: WeChat Ad. Middle: Mini Program. Right: Connect with users on WeChat account

A fashion brand ALFA has successfully reduced the time from acquisition to conversion and its user acquisition cost by 50% with the help of the new WeChat Advertising + WeChat Work solution.

At the same time, their operation efficiency increases significantly thanks to the integration of WeChat Moments and various promotional campaigns in WeChat community. Users in the WeChat groups are highly engaged and frequently re-purchase.

Helping the Travel Sector by Converting Target customers Online

Travel related products usually feature high price and long decision process. Its target customers have high conversion barriers and diverse needs. In order to boost conversion, advertisers from the travel sectors usually need 1-on-1 real-time communication to fulfill the customer’s different needs.

In the future, by converting offline customers online and integrating operation and management online, the travel sector can effectively benefit from this new solution.

In the new process, advertisers from the travel sector can exhibit their brands and promote their products on their native promotion page, in order to attract target customers and retain them on their WeChat Work accounts.

At the same time, with the personalized welcome display, advertisers can send useful content such as product information to their new users in a faster manner, encouraging better user engagement.

WeChat Work provides advertisers with a more convenient online communication tool, enabling real-time communication, and facilitating the delivery of personalized services.

Corporate images are clearer on the WeChat official account, effectively building trust and awareness of the brand. At the same time, advertisers can manage users based on various tags such as destination, travel time and wiliness, and provide users with more customized services.

They can also roll out different promotional information in the WeChat groups and constantly reach out and convert users, allowing a more granular service.

WeChat Ad to landing page; and, connect users on WeChat account

Yunnan Kunming Travel Agency, focusing on Leisure Family Trip, has significantly shortened leads engagement time and reduced their costs with the help of the new process and oCPM model.

Within the trial period, the cost of acquiring a new follower for WeChat Work is near the cost of their mature conversion funnels. In addition, it has profiled their users using tags and promoted limited time offers, group purchase offers in their WeChat groups in order to guide users and achieve better conversions.

With the help of WeChat group promotions, the deposit conversion rate increase by 60%.

The integration between WeChat Advertising and WeChat Work effectively could meet various advertisers’ needs, helping them shorten the acquisition path, reach out, and convert targeted audiences.

WeChat Work allows advertisers to get closer to their users and lower the conversion barrier. At the same time, WeChat Advertising helps advertisers to reach out, convert, and retain target users in multiple ways.

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Top 10 WeChat Moments ads in 2019, voted by 1+ million users https://www.chinainternetwatch.com/30219/top-10-wechat-moments-ads/ Mon, 20 Jan 2020 12:00:18 +0000 https://www.chinainternetwatch.com/?p=30219

Tencent conducted a poll for the favorite advertisements on WeChat Moments, involving over one million WeChat users; the top 10 ads received more than 2.218 million votes. You can review these engaging Moment ads from Mercedes Benz, VanCleef & Arpels, Estee Lauder, Shuijingfang, Yili, Buick, Dyson, McDonald's, Coca Cola, L'Oréal.

1. Mercedes Benz 4-seat Sports Car
It received 322,613 votes, 118,091 comments "cool; style".

2. VanCleef & Arpels
304,160 votes, 87,731 comments "romantic, high-end"

3. Estee Lauder Micro Essence
291,225 votes, 93,846 comments "pretty Yang Mi (Chinese celebrity), creative ad". Celebrity: Yang Mi

4. Shuijingfang Baijiu (Chinese liquor)
236,629 votes, 69,897 comments "auspicious“

5. Yili
229,634 votes, 65,545 comments "goddess; have the feeling of Chinese New Year". Celebrity: Liu Tao

6. Buick
205,350 votes, 53,353 comments "creative; original"

7. Dyson
7. 198,357 votes, 48,889 comments "sense of technology; want ...

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Case study: selling luxury product through Taobao live broadcast https://www.chinainternetwatch.com/30070/feiyu-luxury-live-broadcast/ Thu, 02 Jan 2020 02:00:30 +0000 https://www.chinainternetwatch.com/?p=30070

Feiyu Live Broadcast

Competition in categories such as clothing, jewelry, and makeup is stiff in Taobao’s live streaming ecosystem and there are still opportunities in other categories such as luxury products. A Taobao Live MCN (Multi-Channel Network) Feiyu specializing in second-hand luxury products provides an excellent case for study.

Since its debut on Taobao back in 2016, Feiyu has been focusing on luxury goods, a category with high ATV (Average Transaction Value). It has established its own overseas team of buyer-streamers, and at the same time engaged in the supply chain of second-hand luxury goods.

In November 2018, Feiyu transformed and upgraded to a steaming MCN focused on second-hand luxury goods. In less than a year, its monthly GMV reached RMB 100 million.

Investors have shown strong interests in this particular business model. So far, Feiyu has completed two rounds of financing: a seed f...

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How is WeChat Work 3.0 valuable to businesses https://www.chinainternetwatch.com/30158/wechat-work-v3/ Thu, 26 Dec 2019 09:00:01 +0000 https://www.chinainternetwatch.com/?p=30158

Tencent launched a critical update to WeChat Work (version 3.0), an enterprise version of WeChat. The updated WeChat Work helps businesses connect deeply with consumers and retain customer resources. New features include productivity tools and WeChat Moments integration.

WeChat Work 1.0 only supported simple functions including Business Contacts, paid phone calls, attendance, announcement, etc while version 2.0 release API. And, the version 3 focuses on three key pain points:

connecting employees with customers
continuing to connect with customers after employees leave the company
connecting employees within enterprises

In Customer Contact, employees can directly add WeChat friends and send messages to each other through WeChat Work. Customers can see their real name and job titles and communicate with consumers through the verified identity.

WeChat is widely adopted for business purposes. But when an employee quits and leaves the company, the company loses connecti...

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