WeChat Marketing: 3 Reasons Why International Brands Should Zoom in on WeChat Marketing
For a long time, opening flagship shops on Tmall, China’s largest e-Commerce platform, has been the prime online retail strategy for global brands who wish to expand their business to China markets. However, with Chinese social media penetrations gaining momentum, social platforms and mobile apps such as WeChat, Douyin (Chinese Tik Tok) and the Little Red Book (Xiaohongshu) have surpassed Tmall as the more popular choices for e-Commerce, branding activities and engaging the consumers in Greater China. In today’s article, we will focus on why international brands should leverage the WeChat platform for branding and driving revenues.
Wechat app cellphone. [Source: upsplash.com]
What is WeChat and WeChat Official Account
WeChat is an all-in-one Chinese messaging, social media and mobile payment app developed by the Chinese tech giant Tencent. It was first introduced in 2011, and in 2018, it became the world's largest standalone mobile app, with over one billion (1.24 billion by 2021) monthly active users (Statista, 2022).
WeChat users can also create an official account, (also known as a public account) which allows account creators to send feeds, messages to subscribers, and provide online services to them. As the primary source of information for the Chinese majority, more and more businesses organisations are beginning to use WeChat for business.
In 2021, over 20 million business accounts were active on WeChat (WeChat Wiki)[1], not only for Chinese domestic brands but also for global brands. For example, as early as 2016, 92% of luxury brands are already on WeChat to engage the Chinese consumers (Jing Daily, 2016).
Why WeChat Marketing is so Important?
1. The largest social media user base in China
According to Hootsuite (2021), with over 1 billion active users, WeChat is the most active social platform and accounts for 73.2% market share.
WeChat is the leading social media platform in China [Hootsuite, 2021]
WeChat users aged between 25-40 years of age who are usually considered as having more purchasing power account for almost 50% while the biggest user group comes from under 24-year-old which accounts for 33.5%. So, if your business targets these audience segments, WeChat marketing might be beneficial for your marketing strategy.
Distribution of WeChat Users according to age groups. [Source: Statista]
In terms of media consumption patterns, Most Chinese rely on WeChat for work-related communications rather than on email. As a result, Chinese WeChat users spent more than four hours a day engaging with the app.
A typical day of a person using social apps [Source: WeChat Wiki, 2020]
Around 50% WeChat users follow between 10 to 20 Official Accounts (Statista, 2019) and over 80% WeChat users access Official Accounts regularly.According to Questmobile, on average, more than half of them spend 10-30 minutes consuming contents published on Official Accounts.
2. Strong data analytics
2.1 Granular data for user behaviour
With WeChat, companies not only can collect granular data such as gender, age, and location but more importantly, track individual user behaviour via a unique ID that operates across the WeChat ecosystem based on multiple sessions and touchpoints.
Having access to this wealth of data allows companies to gain detailed insights into consumers' interactions with different WeChat environments - for example, how long people spend on the Official Account before moving to the Mini Program - and improve the customer experience where necessary.
2.2 Towards a 360-degree view of the consumer
WeChat's unique ID is intended to be linked to information that is specific to each customer, including their phone number. Such information can be acquired in various ways, such as by asking them to provide it directly, by requiring it for membership registration, or by requesting the number in exchange for something of value, like a coupon.
Online and offline transactions, for example, are also added, creating a 360-degree view of the customer. By combining companies' own data (such as CRM, transaction history, website behaviour and call centre interactions) with WeChat insight on those consumers, organizations are able to build models that take the whole picture into account and allow them to deliver more relevant content.
2.3 Understanding consumer intent
Leveraging granular and behavioural data, companies can determine the likelihood of each individual customer purchasing a product and determine the most relevant categories to promote. With this information, companies can develop advanced consumer segmentation models and personalize content according to the individual's preferences.
3. Versatile features and services for business owners
In-app functions for marketing and e-Commerce activities include the Official Account which is mainly used to publish textual, visual and video content in the form of feeds to communicate branding information, Mini Program and WeChat pay.
3.1 Official Account
Depending on the type of Official accounts the organisation registered, the number of feeds published varies between 8 articles per day in one push notification (Service Account) to 32 articles in four push notifications per month (Subscription Account). The following table summarises how different Public Account types serve different purposes and cater to different needs of the business.
Differences between Subscription Account and Service Account [Source: WeChat Wiki, 2020]
Illustration of where different types of official accounts are located in the WeChat app [Source: WeChat Wiki]
The home page of the Official Account usually has a few optional features to be displayed in the menu bar, the most common ones are: Articles, Channels and Services.
Image showing menu bars on WeChat Official Account
Articles are text-based feeds with pictures and videos to promote brand stories, activities, product launch information, campaigns, product display and anything relevant to the brand values.
How WeChat articles are different from Facebook content is that WeChat does not have a word limit, so it is more flexible for editors to craft stories. It enables editors to create visuals that correspond to their own brand colours and styles. Therefore, not only the content but the overall presentation of each article carries their brand message.
Channels, which was newly launched in 2020, is a video platform within WeChat that allows users to create and share short or long video clips to their own WeChat Channel. Users are also able to see videos created by people or organisations who are not from their existing contact list.
Each post can include hashtags, a location tag, a short description, and a link to a WeChat official account article. For brands that wish to expand their reach to potential audiences or target a particular group of potential customers, Channels indeed serves as a value-added platform within WeChat.
Services, as its literal meaning suggests, offer various services that a physical store provides. They commonly contain information and links to membership services and also links that direct the users to WeChat stories on Mini Programs.
3.2 WeChat Mini Programs
WeChat mini programs are lighter versions of regular apps within the WeChat app. Business owners can create mini-apps in the WeChat system, implemented using JavaScript plus a proprietary API. These programs offer services like video games, lucky draws newsletters and m-Commerce programs. In 2020, WeChat Mini-Program reached over 829 million monthly active users and the average user engaged with 9.8 Mini Programs.
Burberry WeChat store
Three distinct benefits are associated with brands developing e-Commerce on Mini Programs. Firstly, the convenience brought about by the in-app / one-stop-shop experience is more likely to facilitate WeChat users’ buying journey and thus increase the conversion rate;
Secondly, it is easier for the program to access data, which also improves the company’s targeting capabilities and the analysis of actions;
Thirdly, when considering design for a full version application, it is necessary to adapt the application according to the operating system (IOS or Android) whereas, with this development in WeChat mini-programs, it is automatically adapted to different types of OS. Thus, it is more cost-effective and faster to launch a mini program.
Besides e-Commerce, Mini Programs are sometimes practical and efficient on O2O (Online to Offline) simply by setting up loyalty programs aka “E-Loyalty”. Users are directed by the link in the “Service” feature and acquire membership services like the tracking of an order, special offers in the form of discount codes, obtaining invoice etc.
Furthermore, global brands who wish to sell to China through this platform should keep abreast of the latest release of WeChat Mini Program to facilitate cross-border m-Commerce. The Mini Program is said to “bring together high-quality e-Commerce merchants across the globe” (Xinyan Finance, February 2022). WeChat users can then shop for products provided by brands from the rest of the world via this mini program. This is an excellent chance for brands to take the opportunity to outreach to Chinese consumers.
3.3 WeChat Live streaming
The last few years have witnessed China’s booming economy in Live Stream e-Commerce or Live Video Shopping. Led by a few platforms like Tmall and Douyin, WeChat soon jumped on the bandwagon to attract more consumers. In 2020, live streaming topped the list of most popular WeChat mini-program functions used by Chinese retailers.
Share of retailers who used WeChat Mini Program feature in China [Source: Statista, 2021]
Restrictions on outdoor activities during the Covid-19 pandemic had a significant impact on the Chinese consumption market. Therefore, more retailers have looked into live streaming to promote products and drive sales online since 2019. In 2020, about 62.4% of internet users in China had either watched or participated in live-stream activities (Statista 2021), among which e-Commerce is the most popular content type.
So what exactly is Live stream e-Commerce? It is a relatively new model of commerce which combines influencer marketing and social experience into a live shopping show on e-Commerce platforms. Usually, there is a single host talking and displaying the product details in front of a camera, sometimes celebrities or KOLs are also invited to take part. At the end of each product show, audiences would be able to order directly from the host in real-time through a simple click on the screen and the transaction is done within the app seamlessly.
Chinese consumers’ hype over this model of selling can be well reflected by the record-breaking sales figure during the 11.11 Shopping Festival in 2021. Top Livestream salesman Li Jiaqi alone recorded a sales figure of 10.653 billion yuan (USD $1.7 billion), followed by two other female anchors, Viya and Xueli, totalling 8.252 billion yuan (USD $1.3 billion) and 930 million yuan (USD$ 147.2 million) respectively.
Viya and Li Jiaqi live streaming cosmetic products [Source: Pandaily]
Given the huge user base of WeChat platform and Chinese consumers' preference with live streaming videos, global brands like Tommy Hilfiger, NIKE and Tiffany have already taken advantage of this form of online selling, redirecting live video watchers to their WeChat Store.
3.4 Payment function
The versatility of WeChat features extends far beyond branding and online retailing activities. There is also a digital wallet service incorporated into WeChat, called WeChat Pay, which allows users to perform mobile transactions.
WeChat Pay is very popular in China
WeChat users who link their account to bank/credit/debit cards, or have received money in the form of digital “red envelopes” from other WeChat contacts would be able to acquire a balance in their “wallet”. The amount can be used for digital transactions to both online and offline retailers of all kinds, paying bills and even managing bank accounts. WeChat Pay’ s payment mode includes biometric payment and QR code scanning for purchases.
With a user share of 87% in 2020, WeChat Pay is currently the second most popular online payment provider in China, following Alipay.
Most popular online payment brands in China. [Source: Statista, 2020]
How is this payment feature relevant to marketing on WeChat? Same as the Mini Programs, WeChat Pay is also an in-app function that has integrated with WeChat e-Commerce stores. When Chinese WeChat users order through the e-Commerce shops of international brands, payments are processed in the Chinese RMB and then transferred to your local bank account in your local currency.
This makes transactions much more efficient with a one-click-payment option once the consumer makes a purchase decision via the WeChat store / E-shop. The thought of a hassle-free and fast payment method will definitely enhance one’s purchasing decision.
Marketing on WeChat Is A Must For All Brands
To sum up, marketing on WeChat enables brands to capitalise on the existing huge user base, utilise the all-in-one services on one creative platform for branding and e-Commerce activities. While e-Commerce has already been a mature industry in China for many years, incorporating Mini Program, live stream and WeChat Payment further enhances consumers' purchasing experience online, thus, very likely to drive conversion rate. The “Article” and “Channel” feature in Official Accounts also give a lot of flexibility for brands to design branding content and engage WeChat users effectively.
However, brands doing WeChat marketing must also be aware of its limitations, one of which is keywords censorship. Multinational companies operating Public Accounts have encountered many problems in both internal and international communications as they failed to comply with the rules There were also cases whereby Public Accounts were shut down by WeChat as they violated the rules. Hence, marketers have to be mindful all the time while creating content on WeChat.