wechat key trends report 2017
TRANSCRIPT
8 KEY TRENDS FOR WECHAT IN 2017
MATTHEW BRENNAN
CHINACHANNEL.CO
MATTHEW BRENNAN
CO-FOUNDER OF CHINA CHANNEL
MATTHEW IS A REGULAR KEY NOTE SPEAKER ON THE TOPIC OF WECHAT AND CHINA’S MOBILE
ECOSYSTEM. HE WORKS PRIMARILY WITH INTERNATIONAL BUSINESSES HELPING TO FORM AND
IMPLEMENT THEIR WECHAT PLATFORM STRATEGY THROUGH TRAINING, WORKSHOPS, COACHING.
MATTHEW IS A FLUENT MANDARIN SPEAKER AND HOLDS 13+ YEARS ON THE GROUND
ENTREPRENEURIAL EXPERIENCE IN CHINA. HIS COMPANY ORGANIZES CHINA’S LARGEST WECHAT
MARKETING CONFERENCE SERIES FOR INTERNATIONAL COMPANIES.
EMAIL: [email protected]
LINKEDIN: HTTPS://CN.LINKEDIN.COM/IN/MATTHEW-BRENNAN
THIS PRESENTATION IS ADAPTED FROM A KEYNOTE SPEECH DELIVERED AT CHINA CONNECT
CONFERENCE IN PARIS ON MARCH 2ND 2017 BY
???
IS WECHAT STILL COOL? I HEARD EVERYONE IN CHINA IS USING WEIBO AGAIN.
CHINACHANNEL.CO
CHINACHANNEL.CO
CHINACHANNEL.CO
THESE ARE JUST SOME OF THE SILLY THINGS WE
CAN EXPECT MEDIA TO START SAYING ABOUT
WECHAT IN THE NEXT 12 MONTHS.
LET’S TAKE A LOOK AT WHAT IS REALLY GOING ON.
CHINACHANNEL.CO
“一切以用户价值为依归，用户价值是第一位的”
“EVERYTHING IS WITH USER VALUE IN
MIND. THE VALUE TO THE USER IS THE
FIRST PRIORITY.”
CHINACHANNEL.CO
CHINACHANNEL.CO
IN THE SAME WAY THAT AMAZON IS RELIGIOUS
ABOUT THEIR CUSTOMER EXPERIENCE. TENCENT IS
RELIGIOUS ABOUT THEIR USER EXPERIENCE.
USER NUMBERS
& ENGAGMENT
HITTING THE BAMBOO CEILING?
CHINACHANNEL.CO
WeChat Open Class PRO Edition Dec 2016 Guangzhou
CHINACHANNEL.CO
MOST INTERESTING STATISTIC FROM
WECHAT’S LAST DATA REPORT WAS…
“ONLY 1% OF WECHAT USERS ARE
ABOVE THE AGE OF 55.”
STEPHEN WANG
WECHAT TEAM: DIRECTOR USER GROWTH
AND ENGAGEMENT
CHINACHANNEL.CO
DOESN’T EVERYONE IN CHINA USE WECHAT?
CHINACHANNEL.CO
PREVIOUSLY CHCH SURVEYED
100’S OF PEOPLE IN RURAL
TOWNS IN CENTRAL CHINA
ABOUT HOW THEY USE WECHAT.
MOST SENIORS WE SPOKE TO USED
PHONES THAT COULDN’T RUN WECHAT.
590 618 630 649 668 688 710
460
500530
557594 620
656
235
355
438
500
600
697
806
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016
CHINA INTERNET USERS
CHINA MOBILE INTERNET USERS
WECHAT USERS
Data: China Internet
Network Information
Center (CNNIC)CHINA INTERNET USERS
CHINACHANNEL.CO
Data Source: Tencent
CHINACHANNEL.CO
LINE MONTHLY ACTIVE USERS. THE FUTURE OF WECHAT?
Data Source: LINE Corp
140
120
180
160
220
200
CHINACHANNEL.CO
LINE DOMINATES
MESSAGING IN JAPAN
Graphic Source: ARK Invest (2017 Jan)
CHINACHANNEL.CO
PRETTY MUCH
EVERYTHING
THAT’S GOING UP
ON THIS CHART IS
OWNED BY
FACEBOOK…
CHINA TOP 10 APPS JAN 2017MONTHLY ACTIVE USERS (MILLIONS)
*Data: Analysys.cn
(mainland China users only)
767
580
355
283244 241 233 231 220 215
CHINACHANNEL.CO
SOURCE: WECHAT TEAM
TYPICAL DAILY SCHEDULE FOR AN ENGAGED WECHAT USER
CHINACHANNEL.CO
TIME SPENT ON MOBILE IN CHINA
Data Source: QuestMobile, TrustData and Hillhouse Estimates
45%35%
10%
EVERYTHING
ELSE
10%
TENCENT OTHER
TENCENT OWNS 55%
OF ALL TIME ON
MOBILE IN CHINA
CHINACHANNEL.CO
Data Source: QuestMobile
TOTAL TIME SPENT ON MOBILE IN CHINAVS. TIME SPENT ON WECHAT
1,000
26.5%
TOTAL MOBILE TIME SPENT
WECHAT TIME AS % OF ALL TIME ON MOBILE IN CHINA
26.7%29.4%
31.5% 31.9%
36.3% 35.5%34.5% 34.1% 35.2%
33.7% 32.8% 35.2%
SEPT 15
OCT 15
NOV 15
DEC 15
JAN 16
FEB 16
MAR16
APR 16
MAY16
JUNE 16
JUL 16
AUG 16
SEPT 16
2,000
3,000
4,000
5,000
BILLION
MINUTES
TIME SPENT IN WECHAT
40%
35%
30%
25%
20%
15%
10%
5%
CHINACHANNEL.CO
BOTTOM LINE
• USER NUMBERS WILL TOP OUT
• EXPECT WIDE NEGATIVE MEDIA
COVERAGE
• SENIORS ARE KEY (ONLY) AVENUE
FOR GROWTH
CHINACHANNEL.CO
WECHAT PAID
ADVERTISING OPTIONS
FACEBOOK ADS FOR CHINA?
CHINACHANNEL.CO
VALUE ADDED
SERVICESONLINE
ADVERTISING
OTHERS: PRIMARILY
PAYMENTS & CLOUD
69%
19%
12%
TENCENT 2016 Q3 EARNINGS REPORT
CHINACHANNEL.CO
ESTIMATED NUMBER OF NEWSFEED AD IMPRESSIONS PER DAY
PLATFORM Q1 2016 Q2 2016 Q3 2016
MOMENTS0.2 0.3 0.4
GLOBAL8.8 9.3 10.6
US & CANADA20.6 23.2 25.6
ASIA9.0 9.2 12.4
Data Source: Daiwai Capital Markets
CHINACHANNEL.CO
“THE NUMBER OF ADVERTISERS (USING
WECHAT MOMENTS ADS) INCREASED
OVER 100% IN THE LAST QUARTER.”
JAMES MITCHELL
CHIEF STRATEGY OFFICER,
SENIOR EXECUTIVE VP, TENCENT
CHINACHANNEL.CO
NEW FORMATS
MOMENTS ADS:
FULL SCREEN
& INTERACTIVE
CHINACHANNEL.CO
AD > MEMBER CARDS > COUPONS
CHINACHANNEL.CO
CHINACHANNEL.CO
“GIFTING FEATURE WILL GRADUALLY
BE OPENED TO OTHER QUALIFIED
RETAILERS IN THE FUTURE”
- WECHAT TEAM
CHINACHANNEL.CO
MOMENTS LOCAL ADS
LAUNCHED NOV ‘16
FIXED PRICE PPM (PAY PER 1,000 IMPRESSIONS)
STARTING FROM 300 RMB (42 EURO)
UP TO 10 DAY CAMPAIGN
4,400 BUSINESS DISTRICTS IN 81 CITIES
AREA PPM
SHANGHAI / BEIJING 150 RMB (21 EURO)
LARGE CITIES (22 IN TOTAL) 100 RMB (14 EURO)
ALL OTHER DISTRICTS 50 RMB (7 EURO)
CHINACHANNEL.CO
MOMENTS ADS FOR SMALL BUSINESSES
2016: WECHAT BANNED
INCENTIVIZED SHARING
2017: H5 CAMPAIGNS
ARE DEAD NOW RIGHT?
CHINACHANNEL.CO
STORY TELLING &
CREATIVE MUCH
MORE IMPORTANT
CHINACHANNEL.CO
"THE RULES ARE SIMPLE: WRITE GREAT
CONTENT, CAPTIVATING STORIES, AND
DON'T FOCUS ON SHOVING YOUR
PRODUCTS DOWN THE USERS' THROAT."
THOMAS GRAZIANI
COFOUNDER, WALKTHECHAT
CHINACHANNEL.CO
BOTTOM LINE
• EXPECT BETTER TARGETING AND
MORE FORMAT OPTIONS
• MORE SME FRIENDLY OPTIONS
• FOLLOW DEVELOPMENTS CLOSELY,
FIRST MOVERS ON NEW FORMATS
USUALLY HAVE BIG ADVANTAGE
CHINACHANNEL.CO
WECHAT PAY
THE 1ST UNIMAGINABLE TREND
CHINACHANNEL.CO
2015 2016 2017 2018 2019
CHINA
USA
3RD PARTY MOBILE PAYMENTS ($TN)
14
12
10
8
6
4
2
0
Data Source: Forrester Research (US), iResearch (China)
CHINACHANNEL.CO
WECHAT USERS MAKING E-COMMERCE
PURCHASES THROUGH WECHAT
15%
31%
2015 2016 Data: McKinsey’s 2016
China Digital Consumer
Survey ReportCHINACHANNEL.CO
CHINA 3RD PARTY
MOBILE PAYMENTS
MARKET 2014
Data Source: iResearch Q3 2014
10.0%
82.6%
4.4%
TENPAY
3% OTHERS
ALIPAY
LAKALA
CHINACHANNEL.CO
2015…
Data Source: iResearch Inc. Q3 2015
19.2%
69.9%
8.7%
LAKALA
2.2%
TENPAY
OTHERS
ALIPAY
CHINACHANNEL.CO
Data Source: Analysys Ltd. Q3 2016
38.1%50.4%
8.1%
LAKALA
3.3%
TENPAY
OTHERS
ALIPAY
2016…
CHINACHANNEL.CO
2017?
COULD THIS BE THE YEAR WECHAT PAY DRAWS
EVEN IN MARKET SHARE WITH ALIPAY?
CHINACHANNEL.CO
WECHAT PAY REVENUE IS REPORTED UNDER
‘OTHER REVENUE’ IN TENCENT FINANCIAL STATEMENTS
LUCKY MONEY IS FIRST LAUNCHED
0
1,000
2,000
3,000
4,000
5,000
6,000
MIL
LIO
NS
CN
Y
CHINACHANNEL.CO
LUCKY MONEY WAS THE KEY…
THE PEARL HARBOR ATTACK
“IT WAS REALLY IMPRESSIVE! THIS YEAR’S
PEARL HARBOR ATTACK WAS INDEED
BEAUTIFULLY PLANNED AND EXECUTED.”
JACK MA
CHAIRMAN OF ALIBABA GROUP
(DESCRIBING LUCKY MONEY)
CHINACHANNEL.CO
WECHAT: A SOCIAL APP THAT HAS SUCCESSFULLY
TRANSITIONED INTO A PAYMENTS PLATFORM.
ALIPAY: A PAYMENTS PLATFORM THAT IS TRYING
DESPERATELY TO BECOME A SOCIAL APP.
CHINACHANNEL.CO
CHINACHANNEL.CO
FRIEND’S CIRCLE VR RED PACKETS RIGHT HERE
ALIPAY KEEPS ROLLING OUT NEW SOCIAL FEATURES…
???
CHINACHANNEL.CO
Data Source: 36Kr Q1 2017
0%
22%
67%
11%
PAYMENT
METHODS IN
CONVENIENCE
STORES: BEIJING
ZHONGGUANCUN
CASH
UNION PAY
CREDIT+DEBIT
CARDS
APPLE PAY
ALIPAY +
PAY QR
CODE
PAYMENTS
CHINACHANNEL.CO
Data Source: 36Kr Q1 2017
67%
17%
16%
SOLID
UNDERSTANDING
ONLY CASHIER
UNDERSTANDS NO
COMPREHENSION
BEIJING
ZHONGGUANCUN
CONVENIENCE
STORE STAFF
UNDERSTANDING OF
APPLE PAY
CHINACHANNEL.CO
BOTTOM LINE
• 2017 MAY SEE WECHAT PAY PULL
EVEN WITH ALIPAY
• ALIPAY WILL CONTINUE TO TRY
AND REALISE THEIR DREAM OF
UNLOCKING SOCIAL
• APPLE PAY… ERRR, NO.
CHINACHANNEL.CO
INTERNATIONAL
STRATEGY
TARGETING CHINESE TOURISTS
CHINACHANNEL.CO
Image Credit: CCTV2
EVERY DOT ON THESE PICTURES IS AN ACTIVE WECHAT USER.
WECHAT TEAM’S STRATEGY IN EUROPE IS NOT FOCUSED ON GETTING USERS.
INSTEAD THEY WISH TO PROMOTE WECHAT AS A PAYMENTS AND MARKETING
SOLUTION FOR BUSINESSES TO REACH CHINESE CONSUMERS.
GREAT NEWS
FOR EUROPE
20K EURO MARKETING BUDGET COMMITMENT
300 DOLLAR ANNUAL RENEWAL
6 WEEKS PROCESS
OPEN TO ALL EUROPEAN BUSINESSES (EXCLUDING ‘SENSITIVE CATEGORIES’ MEDIA, POLITICAL ORGANIZATIONS)
CHINACHANNEL.CO
EUROPEAN BUSINESSES ARE NOW FREE TO OPEN
CHINA VISIBLE OFFICIAL ACCOUNTS FOR CHINA MARKETING
CHINACHANNEL.CO
EXAMPLE
THIS ACCOUNT IS VISIBLE IN CHINA!
CHINACHANNEL.CO
AND OWNERSHIP OF OFFICIAL ACCOUNTS CAN NOW BE TRANSFERRED.
YOU ARE NO LONGER MARRIED TO YOUR CHINA AGENCY!
ACCOUNT MIGRATION
EXPECT ANOTHER IMPORTANT CHANGE SOON…
CHINACHANNEL.CO
WECHAT PAY SIGNS STARTING TO
POP UP GLOBALLY WHEREVER
THERE ARE CHINESE TOURISTS
Picture: 7Eleven Bangkok
TENPAY (WECHAT PAY + QQ WALLET) TEAM IN TALKS WITH STRIPE
JANUARY 2017
CHINACHANNEL.CO
BOTTOM LINE
• OPTIONS AND TARGETING FOR
NON-CHINESE BUSINESSES WILL
GET MUCH BETTER
• EXPECT PLENTY OF WECHAT PAY
DEALS WITH OTHER GLOBBAL
PAYMENT SERVICES
CHINACHANNEL.CO
COMPETITION
MORE NOISE?
CHINACHANNEL.CO
“WECHAT USED TO BE AN EASY WAY TO ACQUIRE
USERS. IT’S NOW MUCH HARDER. THEY ARE
OVERLOADED WITH GREAT CONTENT AND SPAM.
WECHAT IS MATURING.”
WILLIAM BAO BEAN
CHINACCELERATOR MD, PARTNER @ SOSV
CHINACHANNEL.CO
Data Source: iiMedia Research 2016 APP &
WeChat Public Number Market Research Report
NUMBER OF WECHAT OFFICIAL ACCOUNTS2013 THRU 2017 (FORECAST)
14.1
12
8.26.8
1.4
2013 2014 2015 2016 2017E
16
12
8
4
0
20.3%46.2%
17.3%
376.4%
ACCOUNTS (MILLIONS) RATE OF CHANGE
CHINACHANNEL.CO
AVERAGE VIEWS ON WECHAT
SUBSCRIPTION ACCOUNTS FELL
FROM 12% IN EARLY 2016
TO ROUGHLY 5% IN JAN 2017
Source: WeiHudongCHINACHANNEL.CO
KEEPING FOLLOWERS ENGAGED IS TOUGH
Data Source: iiMedia Research
2016 APP & WeChat Public Number
Market Research Report
60%
10%
OFFICIAL ACCOUNTS THAT MANAGE TO
CONTINUE REGULARLY UPDATING
OFFICIAL ACCOUNTS THAT FOLLOWERS CONTINUE TO PAY
ATTENTION TO
IRREGULAR UPDATING
CONTENT THAT FAILS TO STAND OUT
CHINACHANNEL.CO
REASONS FOR UNFOLLOWING WECHAT OFFICIAL ACCOUNTS
ACCOUNTS ARE ALL THE SAME
LOW AMOUNT OF CONTENT SENT
LOW FREQUENCY OF UPDATING CONTENT
CONTENT JUST ISN’T RELEVANT
OTHER REASONS
50.1%
65.2%
57.9%
43.8%
25.4%
Data Source: iiMedia Research 2016 APP & WeChat Public Number Market Research Report
CHINACHANNEL.CO
“A NEW FOLLOWER ON WECHAT IS 100X MORE
VALUABLE THAN ON WEIBO. FOOTBALL CLUBS
SHOULD USE WECHAT AS THEIR CRM PLATFORM
FOR CHINA.”
DAVID HORNBY, MAILMAN GROUP
SPORTS BUSINESS DIRECTOR
CHINACHANNEL.CO
Data Source: Network Public Opinion
Report, Tencent Index & CSSN
WECHAT OFFICIAL ACCOUNTSPOSTING TIMES: 9AM & 5PM PEAKS
START WORK 9AM
OFF WORK 5PM
THE STATE OF WECHAT REPORT
WECHAT MOST ACTIVE TIMESFOR FORWARDING & SHARING
Data Source: Network Public Opinion Report, Tencent Index & CSSN
8AM - MIDDAY 8 – 10 PM
THE STATE OF WECHAT REPORT
BOTTOM LINE
• COMPETITION FOR PAGE VIEWS
WILL CONTINUE TO INCREASE AS
WECHAT MATURES
• A CORE VALUE OF WECHAT FOR
BRANDS IS CRM & PERSONALIZED
COMMUNICATION CHANNEL
CHINACHANNEL.CO
MINI PROGRAMS
THE TROUGH OF DISILLUSIONMENT
CHINACHANNEL.CO
MOST MARKETERS CURRENTLY ARE
UNABLE TO SEE VALUE IN MINI PROGRAMS
CHINACHANNEL.CO
“THE ELEPHANT IN THE ROOM IS THAT
OFFICIAL ACCOUNT’S BIGGEST VALUE
ARE AS A BROADCAST CHANNEL.”
DAN GROVER
FORMER WECHAT TEAM, NOW FACEBOOK MESSENGER
CHINACHANNEL.CO
MARKETERS IN CHINA TREAT WECHAT LIKE EMAIL.
YOUR WECHAT TIMELINE IS YOUR EMAIL INBOX FOR CHINA.
CHINACHANNEL.CO
“ACTUALLY WECHAT IS EMAIL. IT’S A
SHORT FAST EMAIL, BUT BECAUSE IT’S
SO FAST YOU DON’T THINK IT’S EMAIL.”
PONY MA
CEO AND FOUNDER OF TENCENT
CHINACHANNEL.CO
BUT MINI PROGRAMS CAN’T BE USED THIS WAY
CHINACHANNEL.CO
MOBIKE POINTS TO THE FUTURE OF
HOW MINI PROGRAMS CAN ADD VALUE
TO OFFLINE BUSINESSES
CHINACHANNEL.CO
WECHAT QR CODE SCANNER +
MINI PROGRAM SIGNIFICANTLY
REDUCES FRICTION FOR FIRST
TIME USEMOBIKE MINI
PROGRAM
MOBIKE APP
“THE NUMBER OF REGISTERED NEW
USERS FROM MOBIKE’S WECHAT MINI
PROGRAM ARE PRETTY MUCH THE SAME
AS DIRECTLY FROM THEIR APP.”
PONY MA
CEO AND FOUNDER OF TENCENT
CHINACHANNEL.CO
WHAT WAS THE BIGGEST EVENT OF 2016 IN MOBILE?
CHINACHANNEL.CO
“POKEMON GO, IS PROBABLY THE BIGGEST THING THAT HAS HAPPENED TO THE APP ECONOMY, IF NOT JUST IN 2016, THEN IN THE ENTIRE LIFECYCLE OF THE APP ECONOMY. THE IMPACT OF IT WAS HUGE!”
SAMEER SINGH, INDUSTRY ANALYSIS DIRECTOR APP ANNIE
CHINACHANNEL.CO
ALIPAY AUGMENTED REALITY LUCKY MONEY FEATURE
QQ AUGMENTED REALITY LUCKY MONEY FEATURE
BAIDU MAPS AUGMENTED REALITY CAMPAIGN
CHINACHANNEL.CO
Data: App AnnieCHINACHANNEL.CO
USUALLY MOBILE IS A ZERO SUM GAME
POKEMON GO WAS DIFFERENT
AVERAGE HRS CHINESE SPEND PER MONTH USING MOBILE APPS
Data: QuestMobile (Oct 2016)
75.1
95.0
ALL CHINESE
MOBILE USERS
POST 90’S
GENERATION
= 2.42 HRS
PER DAY
= 3.06 HRS
PER DAY
CHINACHANNEL.CO
WECHAT IS USED TO SCAN QR CODES
MORE THAN 80 MILLION TIMES PER DAY
CHINACHANNEL.CO
“THE ENTRY POINT FOR DESKTOP
INTERNET IS THE SEARCH BAR, THE
ENTRY POINT FOR THE MOBILE
INTERNET IS THE QR CODE.”
WECHAT FOUNDER, ALLEN ZHANG
MAY 2012
CHINACHANNEL.COCHINACHANNEL.CO
CONNECTING EVERYTHING & EVERYONE
BOTTOM LINE
• OFFLINE SCENARIOS
• FEW CASES OF PROVIDING A TRUE
VALUE ADD TO BRANDS YET
• WATCH FOR NEW FEATURES AND
APIS TO OPEN UP
CHINACHANNEL.CO
NEW FEATURES
VIDEO + LIVESTREAM!?
CHINACHANNEL.CO
“WECHAT TEAM MAINTAIN A VERY
RESTRAINED ATTITUDE WHEN DOING
THINGS.”
TONY ZHANG
COFOUNDER & FORMER CTO OF TENCENT
CHINACHANNEL.CO
WECHATOFFICIAL
PARTNERSECOSYSTEM
CHINACHANNEL.CO
EXAMPLE 1
VIDEO NOW PLAYS
DIRECT WITHIN
WECHAT.
(AS OF LATE 2016)
EXAMPLE 2
MP3 MUSIC PLAYS
DIRECT WITHIN
WECHAT.
CHINACHANNEL.CO
EXAMPLE 3
PICTURE EDITING
DIRECT WITHIN
WECHAT.
(AS OF DEC 2016)
EXAMPLE 4
VIDEO EDITING
DIRECT WITHIN
WECHAT.
(AS OF DEC 2016)
CHINACHANNEL.CO
CHINACHANNEL.CO
“THE MOBILE SHORT VIDEO SECTOR SAW EXPLOSIVE
GROWTH IN 2016.”
TRACEY XIANG
CHINA TECH INDUSTRY ANALYST
LIVE STREAM
SHORT VIDEO
E-COMMERCE
FEATURE PLATFORM OWNED BY
CHINACHANNEL.CO
CHINACHANNEL.CO Chart: TechInAsia
WEIBO, THE CHINESE TWITTER, IS BIGGER THAN TWITTER?!
“SOONER OR LATER WE’LL SEE CHANGES THAT
WILL MAKE IT EASIER FOR PUBLISHERS TO POST
VIDEO DIRECT TO A PERSON’S (NEWS) FEED. THIS
WILL BE A GAME CHANGER FOR BRANDS IN TERMS
OF THE CREATIVE OPPORTUNITY.”
JEREMY WEBB
NATIONAL DIRECTOR, SOCIAL@OGILVY CHINA
CHINACHANNEL.CO
RUMORS: WECHAT LIVE STREAM?
ARGUMENT FOR: THE BUSINESS MODEL IS FANTASTIC
ARGUMENT AGAINST: MISMATCH WITH WECHAT
PRODUCT VALUES
CHINACHANNEL.CO
CORE SEARCH FRIEND’S NEWS FEED SEARCH
GROUP CHATSEARCH BY DATE
SOCIALLY RANKED ARTICLE SEARCH
CHINACHANNEL.CO
IMPROVEMENTS TO WECHAT SEARCH IN 2016
CHINACHANNEL.CO
SEARCH RESULTS FROM OUTSIDE WECHAT NOW APPEARING
BOTTOM LINE
• SHORT VIDEO – PROBABLY YES
• LIVESTREAM – PROBABLY NO
• BETTER SEARCH – YES
CHINACHANNEL.CO
THE 2ND
UNIMAGINABLE TREND
CHINA’S PAYING FOR
KNOWLEDGE?!
CHINACHANNEL.CO
TENCENT GLOBAL
PARTNERS CONFERENCE
“THE MOBILE MARKET IS SATURATED. WHEN ALL THE
PRODUCTS ARE MATURE AND ALL SIMILAR, CONTENT IS
THE WAY TO DIFFERENTIATE. THE VALUE OF KNOWLEDGE,
THE VALUE OF CONTENT IS NOW INCREASING RAPIDLY IN
THE INDUSTRY.”
RHEA LIU – ANALYST AT TENCENT
CHINACHANNEL.CO
75.65%
51.73%
34.23%
20.70%
6.91%
0.76%
WILLING TO PAY FOR
QUALITY CONTENT
QUALITY CONTENT
PROVIDERS DESERVE PAYMENT
WILLING TO PAY IF ONLINE
LEARNING IS USEFUL
ONLINE EDUCATION IS
SUPPOSED TO BE NONPROFIT
MORE WILLING TO PAY
FOR OFFLINE COURSES
WILLING TO LEARN BUT
NOT NECESSARY TO PAY
ATTITUDES TO PAYING FOR ONLINE LEARNING
Data Source: Netease, Guokr, Jan 2017
CHINACHANNEL.CO
“WAIT FOR WECHAT PAY
TO READ FEATURE (TO
ARRIVE).”
CHINACHANNEL.CO
PONY MA
CEO AND FOUNDER OF TENCENT
DRIVING FACTORS
CHINESE CONSUMERS NOW HAVE HIGHER INCOME
(TIME > MONEY)
UBIQUITOUS MOBILE PAYMENTS & MICRO-PAYMENTS
HUGE POPULATION: THINGS SCALE EASIER / NICHE
COMMUNITIES BECOME INTERESTING
CULTURE THAT PLACES VERY HIGH VALUE IN EDUCATION
CHINACHANNEL.CO
CASE STUDIES
DIFFERENT REVENUE MODELS
CHINACHANNEL.CO
VOLUTARY DONATIONS
(TIP JAR FEATURE)
• USERS REWARD HIGH QUALITY
CONTENT CREATORS
• INDIVIDUAL PAYMENTS FROM 1
TO 200 RMB
• USUALLY ONLY SUBSTANTIAL
FOR LARGE KEY OPINION
LEADERS
CHINACHANNEL.CO
PAID Q&A: FENDA
(ONE MINUTE ANSWER)
• QUORA WITH AUDIO
• MOBILE MICROPAYMENTS
CHINACHANNEL.CO
5,000 PEOPLE PAY 1 RMB TO LISTEN
PLATFORM TAKES 10% CUT
CELEBRITY ANSWERING RECEIVES 45%
QUESTION ASKER RECEIVES 45%
INITIAL COST TO ASK THE QUESTION
QUESTION ASKER’S PROFIT
5,000 RMB
-500 RMB
2,500 RMB
2,500 RMB
-500 RMB
2,000 RMB
CHINACHANNEL.CO
BUSINESS MODELMAKE MONEY ASKING QUESTIONS TO CELEBRITIES
SUBSCRIPTION: OPEN LANGUAGE
• PODCAST AUDIO CONTENT
• EXERCISES, VOCABULARY,
GRAMMAR EXPLANATIONS TO
MATCH
CHINACHANNEL.CO
MATCHING SERVICE: YOLI
• UBER FOR LEARNING ENGLISH
• SHORT 15 MIN CLASSES
• LEVERAGE WECHAT GROUPS
CHINACHANNEL.CO
GATED COMMUNITY
JASON NG 阿禅
• PRIVATE GROUP APP 小密圈• 200 RMB ENTRY (28 EUROS)
• LIFETIME MEMBERSHIP
CHINACHANNEL.CO
CHINA IS CHANGING…
CHINACHANNEL.CO
CHINACHANNEL.CO
MATTHEW BRENNAN
CO-FOUNDER OF CHINA CHANNEL
MATTHEW IS A REGULAR KEY NOTE SPEAKER ON THE TOPIC OF WECHAT AND CHINA’S MOBILE
ECOSYSTEM. HE WORKS PRIMARILY WITH INTERNATIONAL BUSINESSES HELPING TO FORM AND
IMPLEMENT THEIR WECHAT PLATFORM STRATEGY THROUGH TRAINING, WORKSHOPS, COACHING.
MATTHEW IS A FLUENT MANDARIN SPEAKER AND HOLDS 13+ YEARS ON THE GROUND
ENTREPRENEURIAL EXPERIENCE IN CHINA. HIS COMPANY ORGANIZES CHINA’S LARGEST WECHAT
MARKETING CONFERENCE SERIES FOR INTERNATIONAL COMPANIES.
EMAIL: [email protected]
LINKEDIN: HTTPS://CN.LINKEDIN.COM/IN/MATTHEW-BRENNAN
THIS PRESENTATION IS ADAPTED FROM A KEYNOTE SPEECH DELIVERED AT CHINA CONNECT
CONFERENCE IN PARIS ON MARCH 2ND 2017.
8 KEY TRENDS FOR WECHAT IN 2017
MATTHEW BRENNAN
CHINACHANNEL.CO