WECHAT PLATFORM OVERVIEW OCTOBER 2015 HEADLINES \ STRATEGY
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1 WECHAT PLATFORM OVERVIEW OCTOBER 2015 HEADLINES \ STRATEGY
2 WHAT IS WECHAT? WeChat is a mobile messaging app and social network based out of China. It is owned by the Chinese investment holding company Tencent. The core of its 600MM+ MAUs live in China and other Asian countries, but it has taken major steps to expand internationally in recent months. WeChat pivoted early from being a simple communication app into a full social e-commerce application. Estimates peg WeChat s average revenue per user (ARPU) at $7 per user, compared to $1 APRU on WhatsApp, the world s largest messaging platform. HEADLINES BEATPORT WECHAT \\ \ WEEKLY PLATFORM FAMEHOUSE. NET \ 2
3 FEATURES AND APP-IN-APP SERVICES While WeChat is first and foremost a messaging platform, it has also pioneered the apps within an app model. Millions of lightweight apps live inside WeChat, much like webpages live on the Internet. WeChat Instant Messaging Supports text and voice messages, walkie-talkie mode, and stickers. Send pictures, videos, coupons, and more to a single friend or group. Currently testing free group video calling. App-In-App Services Over 10MM official accounts have the ability to push feeds to their subscribers/customers and interact with them. Adding an official account is as easy as adding a friend on Facebook. After signing up for the payments API, any officially verified WeChat brand account can easily set up a shop from within the application. These services can include newspapers, airplane ticket purchases, personal drivers, health consultations, and more. Even managing credit card statements and paying utilities can be done through the app. An example of a WeChat home screen. The highlighted Bank Cards icon allows WeChat to store consumer payment data. HEADLINES BEATPORT WECHAT \\ \ WEEKLY PLATFORM FAMEHOUSE. NET \ 3
4 WECHAT AS A RETAIL PLATFORM At least 1 in 5 active WeChat users are set up for WeChat Payments, a process that links a credit card or bank account to the user s profile. This creates the instant ability to transact on official products and services. Services that live on the platform are connected to the WeChat Wallet, which allows one-click payment and money transfers between users. WeChat even has a personal loan feature. Users can borrow up to 200,000 yuan (~$31.5K) without guarantee or collateral from WeBank, a service launched by WeChat s parent company. WeChat has a history of working with preferred partners. Uber recently alleged that WeChat s parent company, Tencent, imposed a strategic block on all of Uber s pages, promotions, and links. Users can even pay for real-world goods and services by scanning their phones. Businesses scan a unique QR code as a credit card alternate, and offer coupons and promotions the same way. The Wallet screen shows how much money is available on a WeChat account. HEADLINES BEATPORT WECHAT \\ \ WEEKLY PLATFORM FAMEHOUSE. NET \ 4
5 MESSAGING APPS PLATFORM COMPARISON WeChat WhatsApp Facebook Messenger Snapchat LINE Kik Firechat Description Free messaging and calls; Hosts shopping, gaming, and banking Cross-platform messaging; Uses only data (no SMS) Voice and text over Facebook s Chat feature Ephemeral photo/video messaging Sticker-focused messaging Free messaging that can host any type of rich media Connects users in a 70-meter radius; Does not need Wi-Fi Cost Free $0.99 Annual Free 1-Year Trial Free Free Free Free Free MAUs 600MM 900MM 700MM 200MM 181MM* 50MM N/A Key Demographics China; Africa; Moving towards Global Global Global Global; Heavy adoption in US Japan, US North America China, US Advertising Available Yes No (Has said won t change) Coming soon Yes Yes (Sponsored Content) Yes TBD Mobile Payments Yes No Yes Yes No Yes No Other Interesting Features Moments function is similar to Facebook s newsfeed Images, voice calling, & videos are all supported Group messaging Live Stories and Photo Filters Constantly adjust product features Brands can create microsites within Kik; Content shared on messages links back to microsite All messages public Created with festivals in mind *Last Update: Dec 2014 HEADLINES BEATPORT WECHAT \\ \ WEEKLY PLATFORM FAMEHOUSE. NET \ 5
6 CASE STUDY: MOBILE PAYMENTS South African courier service picup incorporated WeChat into their mobile payments process. Users can select their deliveries in app, then transfer seamlessly to their WeChat Wallet to pay for goods and services. HEADLINES BEATPORT WECHAT \\ \ WEEKLY PLATFORM FAMEHOUSE. NET \ 6
7 CASE STUDY: ONLINE DONATIONS UNICEF Hong Kong partnered with WeChat to introduce a new payment channel that supports their emergency relief work. Donors contribute one-time donations or opt to send an Inspired Gift, where their contributions go towards specific actions like providing vaccinations and educational resources. HEADLINES BEATPORT WECHAT \\ \ WEEKLY PLATFORM FAMEHOUSE. NET \ 7
8 CASE STUDY: BRAND AMPLIFICATION The New York Times recently launched an official international account on WeChat. Followers of The Times account on WeChat will receive a daily report of news and features in both English and Chinese. This is an international account and will not be available within China, due partially to restrictions from the government. WeChat has more than 100M monthly active readers in other countries. HEADLINES BEATPORT WECHAT \\ \ WEEKLY PLATFORM FAMEHOUSE. NET \ 8
9 CASE STUDY: SECOND SCREEN EXPERIENCES The reality TV program Big Brother Mzansi in South Africa encouraged their WeChat followers to vote on who they would like to see out of the house next, chat with other fans, and interact with contestants. Voting did not affect the structure of the show, but it did create stronger ties between the brand and its audience. Viewers could also send their favorite housemates messages and see them displayed on the dedicated channel created for the show. HEADLINES BEATPORT WECHAT \\ \ WEEKLY PLATFORM FAMEHOUSE. NET \ 9
10 HEADLINES \ STRATEGY THANK YOU
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