Leverage WeChat at its best to reach and serve Chinese consumers. Bruxelles, January 2017
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1 Leverage WeChat at its best to reach and serve Chinese consumers Bruxelles, January 2017
2 1 2 Internet in China and the role of WeChat 4 3 How to best leverage WeChat to reach retail goals Success stories How WeChat is structured in Europe and key benefits for western brands Contents Why internet is different in China compared to European habits and how WeChat is entrenched in Chinese consumers everyday life
3
4 Internet as we got to know it: the sum of vertical applications, discovered one by one over time, each one with a clear purpose Exhaustive Communication by s Information & Service by website Vertical needs by native apps Entertain by Facebook Real-time communication by Whatsapp Voice and conference calls by Skype Opinion leadership by Twitter 4
5 WeChat allows integrated access to almost all digital services Messaging Feed reader Browser Geolocalization Media player Mobile payments QR code reader Backend with open APIs
6 becoming just internet in China 6
7 As a consequence, WeChat enjoys an extraordinary adoption in the whole Chinese community worldwide, topping more than 846M active users...and a smartphone penetration which in China is well above 93% 7
8 A typical day on WeChat: as our 760M DAILY active users do
9 CNY Billion hongbao exchanged on WeChat in a single day by 420 Million of people
10 TRANSACTIONS PER MINUTE
11 1 2 Internet in China and the role of WeChat 4 3 How to best leverage WeChat to reach retail goals Success stories How WeChat is structured in Europe and key benefits for western brands Contents How to use WeChat to attract new followers, inform and engage them through multimedia contents and finally serve them during their shopping experience
12 WeChat advanced targeting features allow merchants to effectively reach their audience in China Attract Not only in the cities or residences But Real Time LBS (block where the person is designed on a map) Social demographic profile Education, marital status Example Basic information u Men u Women u 30+ years old Commercial interests purchase potential and online shopping behaviour Set up of target group based on client target profiles Wheather condition Mobile device Interests u Fashion & Luxury u Travels u Europe Purchasing power u Medium High Advanced targeting u High probability to visit Italy, France or UK soon
13 Multiple formats and planning options to meet campaign requirements and engage followers Attract BANNER MOMENTS
14 Brand could inform, engage and serve followers on WeChat through the Official Account Inform & engage Customized menu Multimedia and interactive contents Interaction required to surf contents 1-1 chat with followers and much more! Example of a sophisticated Official Account
15 Broadcast messages can unleash the power of editorial plans without filters: each follower receives them u No Algorithm: We are a media, hence we have no right to filter what a brand wants to say to a person who chose to follow it Inform & engage u Multimedia contents: It s not about frequency, it s all about interest and quality u Limited volumes: communicate only if you really have something relevant to say u 48hours rule: if the follower wants you, then you can tell him what you want
16 Using WeChat to provide 1-1 customer care via chat has become a common practice Main features Customer care one to one via chat to support followers in their requests Direct management of the service by a Chinese operator with a 48 hours of SLA per 6 days a week Configuration and management of keywords to provide automatic answers Assist & Sell
17 Selling through WeChat: online How does it work? Main advantages Own e-commerce platform Direct link to the e-commerce website One-click payment through WeChat Pay Exploitment of an existing asset Better visibility of the e- commerce Integration of JD.com Link to the product pages or to the check--out pages of JD.com WeChat Pay is natively functioning Exploit JD.com visibility JD.com offers sales support services Assist & Sell Native WeBoutique Mini e-commerce website within the account Management from the platform Personalization of the experience Integration within WeChat account Creation of engaging experiences Drive to boutique Product booking and picking up in store experiences Payment through WeChat Pay within the account or directly in store 360 brand experience Increase the in-store traffic
18 Selling through WeChat: offline, in your stores in Europe Assist & Sell
19 1 2 Internet in China and the role of WeChat How to best leverage WeChat to reach retail goals Contents 4 3 Success stories Examples of brands from different industries which successfully unleashed the potential of WeChat How WeChat is structured in Europe and key benefits for western brands
20 Selected stories Luxury Fashion Travel Retail 20
21 Watchmaker: advanced targeting to boost followers adoption Activity and budget allocation Costs Campaign duration Banner click to follow to increase followers base (16% of total budget) Moments ads focused both on followers acquisition and brand awareness (84% of total budget) 160k Eur invested Banner click to follow: CPC of 0,15 Euro Moments ads: CPM 20 Euro for Tier 1 cities, 13,5 Euro for Tier 2 cities Banner click to follow: 13 days Moments ads: 24 days Our Role Graphics and copywriting review and adaptation Target definition Real Time Bidding Optimization Continuous monitoring and reporting Follower Acquisition 63k new followers acquired (24% from Banners, 76% from Moments) 9M impressions on moments, 100% share of voice on target
22 Building aspirational e-commerce experiences The entire Dior, Through on August Dior stock Official 8th ( units)put on sale Account went sold on followers out WeChat in a day could a special edition customize of its the Lady bag by Dior bag Chloé, Michael Kors, MILAN to selecting celebrate up Chinese to three charms Montblanc, Valentino and S.Valentine to plug in and day purchase it other brands have already (4.200 USD retailactivities price) using launched similar WeChat Pay
23 How Caesar hotels delivers an integrated experience from sales to room services through WeChat
24 Retail: How Selfridges uses WeChat to draw users to its ecommerce platform Selfridges case study Target Gain visibility for both its ecommerce platform and its physical stores among Chinese customers Activities Online WeChat official account, directly linked with Selfridges cross-boarder ecommerce site at editorial level Clear and detailed instructions for Chinese customers about every aspect of making purchases offline or online at Selfridges (e.g., returned goods, taxation, ) Offline WeChat QRcodes strategically positioned within the store to provide interactive contents (e.g., products information, maps, assistance) to acquire new followers
25 1 2 Internet in China and the role of WeChat How to best leverage WeChat to reach retail goals Contents 4 3 Success stories Examples of brands from different industries which successfully unleashed the potential of WeChat How WeChat is structured in Europe and key benefits for western brands
26 Why western brands fail on WeChat Which issues did your organization faced in its first attempt to approach chinese consumers trhough WeChat? % of respondents 1 u Detached execution 62% u Wrong usage of platform capabilities 59% u Overpriced and poor targeted advertising 45% u Poor targeting 31% u Wrong storytelling 27% u Lack of market research 26% 1 More than one answer allowed Source: WeChat Italy Digital Retex research,
27 To do this, we leverage close relationship with local trusted partners to ensure end-to-end support with regards to everything about WeChat Client Local support and execution Tencent International Business Group Independent, third party agencies Trusted partners Shares needs and targets Proposes/ approves targets and planned actions Cooperate on system integration activities WeChat strategy design and execution Local accounting, idea generation and management of day-by-day activities through a team if English, Chinese, Italian and French speakers, based in Milan Deep knowledge of most common CRM, DAM, ecommerce and retail platforms to ensure system integration is properly executed Liaison between Head Quarter and local markets Provide support to local office and partners on procedural and technical issues Directly operates advertising campaigns (targeting and real time bidding) Monitors overall quality
28 Key benefits of working with us and our trusted partners 20 30% higher impact on WeChat advertising campaigns Access to super targeting options Lower service fees Post paid top-ups Shorter time to launch Direct assistance through internal procedures Performing Official Accounts, also for non chinese entities Possibility to open Official Accounts on Weixin (hence visible in China) without a Chinese business license Possibility to host contents in China on Tencent Cloud infrastructure (optimized for WeChat) Better integration across all WeChat related services Tencent Advertising solutions WeChat Official Accounts WeChat Payments Tencent Cloud
29 Overview of the services we can provide Overview of provided services OA opening and configuration System integration OA management ecommerce & payments Advertising Training 29
30 Closing remarks: some suggestions when approaching chinese market Have an overall, consistent plan ecommerce Social media Local distribution Brand protection Market research Work with the right people Plan mid-term China is big, (still) fast growing and (more and more) reach: it can t be quick n easy Get the right balance between HQ control and local touch They want our style, but speak their own language 30
31 Thank you
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