The Chinese super app WeChat is not only a superior social media tool (as I wrote here), it is also at the forefront of mobile e-commerce innovation that the West has never seen.
As of this writing, WeChat has over 800 million users (yes, it seems that WeChat’s user base is growing by the minute). Better yet, its users are super active. An average user checks into the app 10 times a day. They are practically living on WeChat.
This has created a tremendous opportunity for brands to reach consumers. Reports indicate that brands in the fashion, watches, and jewelry categories receive an average of 7,000 views per WeChat post.
WeChat offers platforms for brands to engage in interactive and one-to-one communication, driving online-to-offline activities and encouraging loyalty. WeChat’s payment system allows brands to sell directly to consumers seamlessly. Its true potential has yet to be tapped. Continue reading
It was not too long ago that Apple’s iPhone was a status symbol among young Chinese middle class consumers. They would stand in a long line before the launch of a new iPhone and spend a month’s salary just to own one.
This has changed. According to a Financial Times article, Chinese consumers no longer buy into the hype they once did in iPhone. These days, Apple looks like “a trend follower” and is struggling to “keep itself interesting” in China.
Apple has continued losing ground as China’s smartphone market becomes increasingly competitive. iPhone sales dropped 32 percent in the second quarter, and the Silicon Valley company fell to fifth place behind Huawei and other unknown brands such as Oppo and Vivo, according to research from International Data Corp (IDC) Continue reading
When I was in China this March, one of the best conveniecnes was to ride around town on Uber. The price was ridiculously cheap. Uber drivers told me how much bonus they would get as long as they were on the road.
I knew Uber was locked in a bloody battle with its Chinese rival Didi Chuxing. In order to gain market share, Uber subsidized its riders heavily, losing $1 billion a year. To me, that was a sign of trouble, because competing on price is never the way for foreign firms to win in China.
When Apple invested $1 billion in Didi this May, I knew Uber’s days in China were numbered. Didi had more than 80 percent market share in China’s ride-hailing business. Apple clearly saw that Uber had no chance and bet on the top dog.
Even without Apple’s blow, Uber was in a disadvantageous position. It was a late comer Continue reading
This video by Jonah Kessel of the New York Times came out about the same time as my previous article It’s Time for Facebook to Copy WeChat. It explains how WeChat works in greater detail. Enjoy!
Many in the West have long disdained Chinese firms as copycats. Some believe that no innovation from China can be called original. Baidu looks like Google, they argue, Alibaba is a version of Amazon, and Tencent imitates Facebook.
Wrong. In the example of Tencent’s WeChat, the Chinese social media platform, Western equivalents such as Facebook Messenger, What’s App, or Twitter look hopelessly inferior.
As I wrote two years ago, there is nothing like WeChat in the West. A super app, as some call it, WeChat is a mobile messaging board offering free video calls, group chat, and many fun features such as a shake function to link contacts with other users. Now it boasts 700 million users. Each user has a personal QR code that serves as a digital ID. Over half of users have linked their bank accounts to its mobile payment system. They can shop, hail a ride or book a hotel – right there while they are chatting with friends.
At an event in Shanghai last year, Elaine Chow, communication manager of the global digital consultancy Razorfish, demonstrated how she went about her day without her wallet. Continue reading
I am honored to be invited to speak at the Economist Innovation Summit in Hong Kong on Sept. 6, 2016.
The Summit gathers entrepreneurs, venture capitalists, and industry luminaries to examine how Chinese firms have evolved from copycats to innovators, and what impact they will have on the rest of the world.
A couple of years ago, I wrote an article Why China Will Lead Innovation in Social and Mobile Commerce. Clearly, Chinese firms are innovating in many other fields as well. An Economist article indicates that:
In fields from gene editing to big-data analytics to 5G mobile telephony, Chinese experts are now among the world’s best. Sunway TaihuLight (pictured), a supercomputer made using only local computer chips, is five times as fast as the best American rival…. WeChat, a social-media and payments platform with 700m monthly active users, is more useful and fun than Facebook, Twitter and WhatsApp put together.