THE ONE IN ALL APP WECHAT MATTHEW BRENNAN CHINACHANNEL.CO

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Transcription:

THE ONE IN ALL APP WECHAT MATTHEW BRENNAN CHINACHANNEL.CO

THE REPULIC OF

THE PEOPLE S REPULIC OF &

AVERAGE HRS CHINESE SPEND PER MONTH USING MOBILE APPS 75.1 95.0 = 2.42 HRS PER DAY = 3.06 HRS PER DAY ALL CHINESE MOBILE USERS POST 90 S GENERATION CHINACHANNEL.CO DATA: QUESTMOBILE (OCT 2016)

IN CHINA THE PHONE IS THE REMOTE CONTROL FOR YOUR LIFE

CHINA CONSUMERS ONE DAY WITH TENCENT 60%+ OF TIME ON MOBILE IN CHINA SPENT IN TECENT PRODUCTS 980 MILLION WECHAT MAU ACCOUNTS 425 MILLION TENCENT VIDEO MUV 850 MILLION QQ MAU ACCOUNTS 300 MILLION TENCENT NEWS DAU 606 MILLION QZONE MAU ACCOUNTS 50 MILLION HONOR OF KINGS DAU CHINACHANNEL.CO

WECHAT

WHAT IS WECHAT? CHINACHANNEL.CO

WECHAT IS NOT A PLATFORM. WECHAT IS A TOOL. ALLEN ZHANG DEC 2016 CHINACHANNEL.CO

WECHAT IS NOT SOCIAL MEDIA WECHAT IS NOT CHINA S WHATSAPP

WECHAT IS AN OPERATING SYSTEM FOR YOUR LIFE IN CHINA

KEY STATISTICS FOR WECHAT 980 MILLION USERS MONTH ACTIVE USERS Q2 2017 20 MILLION OFFICIAL ACCOUNTS 200,000 WECHAT DEVELOPERS CHINACHANNEL.CO DATA: TENCENT PENGUIN INTELLIGENCE SURVEY PLATFORM

2 B WECHAT COMPARED WITH OTHER TOP GLOBAL SOCIAL PLATFORMS MONTHLY ACTIVE USERS 1.5 B 1.2 B 1.2 B 980 M 700 M 328 M 255 M WECHAT FACEBOOK YOUTUBE INSTAGRAM TWITTER WHATSAPP SNAPCHAT MESSENGER CHINACHANNEL.CO

CHINA INTERNET USERS 806 590 460 618 630 500 530 438 649 557 500 668 688 697 710 656 594 620 600 355 CHINA INTERNET USERS 235 CHINA MOBILE INTERNET USERS WECHAT USERS H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 Data: China Internet Network Information Center (CNNIC)

TYPICAL DAILY SCHEDULE FOR AN ENGAGED WECHAT USER DATA SOURCE: WECHAT TEAM

AIRPORT CHECK IN

THE AVERAGE WECHAT USER READS THE EQUIVALENT OF 1 FULL NOVEL PER MONTH ON WECHAT!

WECHAT IS USED TO SCAN QR CODES MORE THAN 80 MILLION TIMES PER DAY

IS WECHAT GOING TO TAKE OVER THE WORLD?

Data Source: SimilarWeb Android Data 187 Countries May 2016

500 TENCENT STOCK PRICE 2017 HONG KONG DOLLARS NOVEMBER 21 ST 430 HKD 400 300 DECEMBER 23 RD 179.9 HKD 200 100 JAN MAR MAY JUL SEP NOV CHINACHANNEL.CO *1 HONG KONG DOLLAS = 0.13 USD NOV 21 ST 2017

872 WORLD S LARGEST PUBLIC CORPORATIONS BY MARKET CAPITALIZATION BILLION USD NOV 21 ST 2017 713 636 542 522 519 481 APPLE ALPHABET (GOOGLE) MICROSOFT AMAZON TENCENT FACEBOOK ALIBABA CHINACHANNEL.CO

1998

REVENUE COMPARISON Q3 2017 BILLION USD 52.6 61% 61% 43.7 47% YEARLY INCREASE 34% 27.8 24% 24.5 17% 12% 10.3 9.8 8.3 APPLE AMAZON GOOGLE MICROSOFT FACEBOOK TENCENT ALIBABA CHINACHANNEL.CO

PROFIT COMPARISON Q3 2017 BILLION USD 10.7 146% 6.7 6.6 79% 4.7 69% YEARLY INCREASE 33% 2.7 2.6 19% 16% 0.3 2% APPLE GOOGLE MICROSOFT AMAZON FACEBOOK TENCENT ALIBABA CHINACHANNEL.CO

ALIBABA MAKE THEIR MONEY FROM WOMEN. TENCENT MAKE THEIR MONEY FROM KIDS. OLD CHINESE INTERNET SAYING

TENCENT 2017 Q3 REVENUE OTHERS: PRIMARILY PAYMENTS & CLOUD 12.0 BILLION RMB 18% 23% SOCIAL NETWORKS 15.2 BILLION RMB 17% ONLINE ADVERTISING 11.4 BILLION RMB 41% ONLINE GAMES 26.8 BILLION RMB CHINACHANNEL.CO

THAT WILL BE 20 EUROS PLEASE. EUROPEAN INSTINCT: REACH FOR THE PLASTIC CHINESE INSTINCT: TAKE OUT MY PHONE

NEARLY HALF OF USERS CLAIMED THEY DO NOT CARRY CASH WITH THEM! REASONS FOR USING MOBILE PAYMENTS FOR OFFLINE TRANSACTIONS IT'S FAST IT'S EASY 58.4% 55.2% I DON'T BRING CASH WITH ME 44.5% THERE'S NO EXTRA FEES I CAN ENJOY DISCOUNTS DEPENDS ON THE TRANSACTION SIZE 17.3% 15.8% 23.4% I CAN ACCUMULATE LOYALTY POINTS OTHER 5.3% 2.9% CHINACHANNEL.CO DATA: TENCENT PENGUIN INTELLIGENCE SURVEY PLATFORM

PRIMARY PAYMENT METHODS FOR OFFLINE PURCHASES 94.1% 93.6% 89.4% 87.6% 93% ADOPTION RATE ACROSS TIER 1&2! 49.5% 51.3% 38.6% 41.3% 29.0% 30.9% 33.0% 35.7% 13.0% 11.4% 9.6% 9.8% MOBILE PAYMENT APPS (E.G. WECHAT PAY) 1 ST TIER CITIES (BEIJING, SHANGHAI) 2 ND TIER CITIES 3 RD TIER CITIES CASH DEBIT & CREDIT CARDS SMARTPHONE BUILT-IN PAYMENT TOOL (E.G. APPLE PAY) 4 TH TIER CITIES & BELOW CHINACHANNEL.CO DATA: TENCENT PENGUIN INTELLIGENCE SURVEY PLATFORM

3 RD PARTY MOBILE PAYMENTS ($TN) 14 CHINA USA 12 10 8 6 4 2 2015 2016 2017 2018 2019 0 Data Source: Forrester Research (US), iresearch (China) CHINACHANNEL.CO

3 RD PARTY MOBILE PAYMENTS MARKET 100% OTHERS 80% 60% 40% 20% 0% 2012 2013 2014 2015 2016 CHINACHANNEL.CO DATA SOURCE: IRESEARCH

MILLIONS CNY WECHAT PAY REVENUE IS REPORTED UNDER OTHER REVENUE IN TENCENT FINANCIAL STATEMENTS 12,000 10,000 8,000 6,000 LUCKY MONEY IS FIRST LAUNCHED 4,000 2,000 0 CHINACHANNEL.CO

CASH 0% 11% APPLE PAY UNION PAY CREDIT+DEBIT CARDS PAYMENT METHODS IN CONVENIENCE STORES: BEIJING ZHONGGUANCUN 22% 67% ALIPAY + WECHAT PAY QR CODE PAYMENTS CHINACHANNEL.CO DATA SOURCE: 36KR Q1 2017

THE WAY THINGS WERE CONSUMERS CONSUMERS STORES CHINACHANNEL.CO

THE WAY THINGS ARE NOW CONSUMERS CONSUMERS STORES CHINACHANNEL.CO

THE WAY THINGS COULD END UP CONSUMERS CONSUMERS STORES CHINACHANNEL.CO

SHARING ECONOMY + QR CODES + MOBILE PAYMENTS IT S MORE THAN JUST BIKES BASKETBALLS UMBRELLAS POWER BANKS CHINACHANNEL.CO

WECHAT FOR BUSINESS

WECHAT CORE LOOP

NEWS FEED PRIMARY MESSAGING SECONDARY

Your Servers WeChat APIs Official Accounts Platform Bank Accounts Payments / QR codes Offline World Chat Moments

OS WeChat App

PAYMENTS COUPONS + SOCIAL LOYALTY CUSTOMER FEEDBACK INVOICING

CARDS

FACIAL RECOGNITION

NO. OF INVESTMENTS MADE BY BAT OVER TIME TENCENT 66 ALIBABA BAIDU 46 49 51 36 39 38 40 38 30 28 27 25 23 14 18 12 12 6 5 6 2014 H1 2014 H2 2015 H1 2015 H2 2016 H1 2016 H2 2017 H1 DATA SOURCE: CHINATECHINSIGHTS 2017 SEMI ANNUAL CHINA VC REPORT

MARCH 2017-5% (1.7 BILLION)

NOV 2017-12% (2 BILLION)

MARCH 2017 - $900 MILL

DEC 2017-10% (SWAP + CASH)

THE REPULIC OF REVENUES DERIVED FROM HOME MARKET 10%

95% 75%

FIND ME AT: WEB: CHINACHANNEL.CO TWITTER: @MBRENNANCHINA ITUNES: CHINA TECH TALK PODCAST LINKEDIN: LINKEDIN.COM/IN/MATTHEW-BRENNAN/ WECHAT:

THE ONE IN ALL APP WECHAT MATTHEW BRENNAN CHINACHANNEL.CO