The new way for mobile-commerce - HKRMA

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The new way for mobile-commerce - HKRMA
The new way for
mobile-commerce
The new way for mobile-commerce - HKRMA
By 2020, China’s e-tailing market could grow to                                                               High case
                                                                                                              Base case
$420 billion–$650 billion                                                                                     Low case

                                                                                                   Compound annual
China’s e-tailing market size, 2003–201                                                            growth rate (%)
$ billion                                                                                          2011–15   2015–20
                                                                                            648

                                                                                            128     35        10

                                                                                            100     32         8
                                                                                     395
                                                                                     37
                                                                                      99

                                                                                            420     21        10
                                                                               120
                                                                                     259
                                                                          74
                                                                    44
                                    5         10         22
    1          2         3
 2003         04        05         06         07         08        09     10   11    20151 20201

2015 and 2020 population forecasts are 1,368 million and 1,387 million.
NOTE: Numbers may not sum due to rounding.

SOURCE: iResearch
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The new way for mobile-commerce - HKRMA
The way in which consumers engage with companies is
radically changing in light of new digital technologies
Trends fueling the next wave of change
Real-time relevance – Explosion of new data sources and analytic
techniques is enabling companies to deliver increasingly personalized
and more targeted consumer journeys

Next-generation digital experiences – Consumer journeys are being
redesigned around emerging technologies, fundamentally changing how
companies interact with consumers

Mobile-first – Escalating mobile adoption and shifting consumer
preferences toward mobile first is leading companies to raise the bar on
their mobile offerings and deliver more value-add utility

Omnichannel adaptation – In response to heightened consumer
expectations for seamless cross-channel experiences, companies are
radically adapting and evolving their business models

You-inspired – With social media usage proliferating , companies are
leveraging social platforms in more sophisticated ways to drive
engagement, sales and loyalty
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The new way for mobile-commerce - HKRMA
Winners are successfully adapting to these trends to
achieve superior digital performance
               From2                    To                                Applications
Real-time      Broad-scale, one size    Hyper-targeted consumer
relevance      fits all messaging and   journeys grounded in rich data
               interactions             & insights

Next-gen    Ongoing step-change         Rapid testing of radical, next-
digital     improvements to the         generation experiences
experiences consumer experience         leveraging the latest
                                        technologies
Mobile-first   Basic mobile            Value-add mobile functionality
               functionality (i.e.,    designed with the “mobile-first”
               smartphone/tablet apps) consumer in mind

Omni-          Basic level of cross-    Truly seamless journeys that
channel        channel messaging        encourage “simultaneous” (vs.
adaptation     and coordination         sequential) omnichannel
                                        behaviors

You-           Basic presence on all    Effectively leveraging social
inspired       major social platforms   platforms and data to drive
                                        desired business outcomes
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The new way for mobile-commerce - HKRMA
WeChat Overview

                  4
The new way for mobile-commerce - HKRMA
80% China Internet users have WeChat

                                       5
The new way for mobile-commerce - HKRMA
WeChat has tapped into various user scenarios in retail
industry                 Payment

                                                        QR Code
  Advertisement

                                                              Coupon

       Shake it

                  Lucky Money        Official Account

                                                                       6
The new way for mobile-commerce - HKRMA
Red Envelop

WeChat Lucky money – Chinese New Year Eve campaign

                                1 billion   “Red envelop” sent
                                and received in 1 day

                                                                 Key Achievement

                                11 billion    “Shakes” in 5      -   Exposure to 800
                                hours during Chinese New Year        million Chinese
                                Eve                              -   120 million
                                                                     Wechat payment
                                                                     account
                                810 million       “Shakes” per   -   “Shake it” habit
                                minute at 22:30                      established
                                                                 -   T2O model
                                                                     exploration

                                75 million users sharked
                                for 378 million “e-coupon”
      Shake for     Shake for
      lucky money   e-Coupon

                                                                                    7
The new way for mobile-commerce - HKRMA
Official Account

WeChat Official Account

                          8
The new way for mobile-commerce - HKRMA
Official Account

Every Official Account is a mobile APP

                                         9
Official Account

  Leading brands are using Official Account for marketing
  and customer relationship building
                   ▪ Starbucks is promoting its WeChat presence on its China
                           homepage using customized QR codes that are integral to
                           the messaging service
                   ▪       Scanning QR code user add Starbucks as a contact
                   ▪       Starbucks begins by sending a short music video promoting
                           some overpriced fruit tea drink with a fancy name, and
                           some other occasional missives will presumably follow

                   ▪ Nike China launched its first WeChat marketing campaign
                   ▪ its presence is a “sports-brand subscription platform” with
                           a “Nike sports-on-the-go” concept,” allowing users the
                           option of following the company to receive daily news and
                           Nike-related updates via WeChat

                       ▪ Cadillac try out WeChat with its “Discover Route 66″
                            campaign, a crossover of the Weibo effort of the same
                            name, updates to users highlighting different sights along
                            the famed American highway
                       ▪    Cadillac also used WeChat to send inclement weather
                            updates to followers and encourage them to drive safely
                            at all times
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Advertisement

Advertisement can also become part of life
  Moment (朋友圈) Advertisement

                                 ▪ Only targeted users receive Ads
                                 ▪ Users show off to friends received Ads on
                                     Moments
                                 ▪   More and More users ARE expecting for
                                     receiving an Ads
                                 ▪   Self-reinforcing social network effect after
                                     introducing Moment Ads

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Payment

WeChat payment – credit card binding

                                       12
Payment

WeChat payment – make a payment

                                  13
QR Code

Scan for purchase

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Key drivers for brands to choose Wechat public platform
for marketing
              ▪   In China, mobile-based communication has become         WeChat is very different from
 Reach            the form of communication, as smartphone and            Twitter — or Sina Weibo — as it’s
                  mobile Internet usage has become a key medium to
                                                                          predominantly a messaging app, so
                  reach target consumer groups.
              ▪   Weichat enable the touch of over 100mn mobile           there’s no live feed of information
                  users                                                   aside from the more public WeChat
                                                                          “Moments” feature, which is
              ▪   Subscribers/followers can be choose via location        more like a Facebook Wall.
 Targeting        and media they reads                                    Nonetheless, WeChat has over
              ▪   In store promotion became easy via QR codes, e-         100 million users globally, and
                  membership cards can be issue to user and viewed        those who are in China are likely
                  in public accounts. E-membership cards and QR           to be smartphone-toting and
                  codes also make O2O possible
                                                                          urban. Basically, a brand’ ’s
              ▪   100% WeChat user on smartphone representing an
                  average higher income segment in mobile user            dreamboat of consumers.
              ▪   Message can be send to sub group of people based        - Millward of Tech in Asia
                  on gender and location

                                                                          WeChat is our ultimate platform to build
              ▪   WeChat campaigns go beyond the usual                    up our CRM system. We want to deepen
 Enhanced         “broadcast” model of brand self-promotion               the connection with consumers, from
 communica-   ▪   Increase the ability of a brand to enhance their one-   broadcasting to conversing, from
                  to-one customer relationships via exclusive content     ‘one to many’   ’ to ‘one to one’  ’.
 tion             reserved for followers.                                 - Nike Greater China media manager,
              ▪   Sets apart from weibo — where followers and non-        Vicky Huang
                  followers alike can see the same publicly posted
                  messages and brands generally engage in one-way
                  communication.

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Future development

WeChat “Smart Life” solutions for industries

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Future development

Oversea mobile commerce for Chinese consumers
A                                                                            Product

                                                                                       B

                                                                             Service

         Mainland
         Consumer
                                                                                           Order placement to HK
Huge traffic from WeiXin and QQ helps      Consumers place orders, make                    supplier with logistics
boost user base for oversea ecommerce      payment, and select pick-up /                   information
platform, presenting HK products/service   service appointment in mainland
to Chinese consumers                       China

                                           Mainland                                         Product delivery to
                                           consumers pay                                    pickup-locations
                                           visit to service
                                           providers in HK
                                           per appointment
                                           (e.g. body
                                           checkup, tickets)

              Consumer review on
              oversea ecommerce
              platform
                                                                                            Multiple pick-up &
                                                  Experience sharing
                                                                                            delivery options
                                                  on Moments & social
                                                  network
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THANK YOU!

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