Wall Street Journal explaining WeChat.

In my previous post I already wrote how WeChat has the potential to change the way we use social media.
The Wall Street Journal also picked up on the success of this 'Made-in-China' app and made a very informative video. It's clearly illustrates its popularity to the still oblivious American public. Must see:

WeChat: has the laptop become obsolete for social platforms?

Not so long ago connecting to your friends through your laptop already seemed very innovative and modern. But since the immense popularity of Wechat it's obvious: we don't need a computer to be social. It's all in the phone.

The former large social platforms in China like Weibo and QQ took after western models such as Facebook, Twitter and Skype; it started out with a desktop application which soon got a mobile brother or sister. But what do you do when the mobile online population exceeds the web surfers on computers? According to CNNIC (China Internet Network Information Center) 70% of all internet users in China access the web through their mobile device. The solution is simple: don't bother with a desktop application!

Weixin (literally: micro-message) as WeChat is called in China, was already launched in 2011 by Shenzhen based online giant Tencent. The third largest internet company in the world (after Google and Amazon) which also owns QQ and Tencent Weibo, noticed how online traffic on its platforms became more mobile. Launching WeChat seems to have been the right next step as the number of registered users have grown to 300 million in January 2013. And it's not only the Chinese who have embraced this app. Since it's worldwide launch in April 2012, WeChat has over 40 million overseas users, mainly from Malaysia, the Philippines and Indonesia but also countries like Mexico, Spain and Argentina are being conquered.

But what's so special about WeChat compared to US-made Whatsapp, Korean's Kakao Talk or Japan's Line? All these apps facilitate communication through your phone while solely using the internet but Wechat is the first app to be truly social and combining a social platform with a chat application, without needing your desktop. Just like Whatsapp you can send messages and create group conversations, like Line you send out cute stickers when you are at a loss for words and like Kakao Talk you can use it to make phone calls to your friends. The treat is actually it's social integration; as owner of Tencent Weibo and QQ, Tencent makes sure you can add your profile and capture Instagram-like pictures which will appear for all your friends to see. If you don't feel like typing, you can send out voice-messages and when you really miss your friends you can have a video conversation with them.

Actually WeChat most ground breaking step is acknowledging the fact that social interaction are still very much location-based whether you start a chat, show pictures or want to meet friends. Most friends people have within their social platforms don't live that far away and many people are interested in making friends which they can also meet in person. In WeChat, you can simply shake your phone to start a chat with a random person within walking distance.

The most interesting part for marketeers is the possibility to create official brand pages which can be followed by users. This way brand can build a personal relationship with the consumer by sending messages and starting interactions. Stores can print-out QR-codes to stick on their doors which will lead consumers directly to their WeChat branded page to continue the interaction after they left the store.The downside to this approach might be the danger of users being 'spammed' too much by companies and maybe being overwhelmed by all the app's features. It's interesting to see if WeChat is able to keep up the balance of pleasing marketeers and still providing a comfortable environment for its users.

However this turns out, WeChat has taken an important step in acknowledging the fact that offline doesn't exist anymore. Your phone is always with you and ever since the invention of the device, it has been meant to connect people and keep up with family and friends. So why shouldn't this continue now that your phone has become 'smart'?  

The rise of the Chinese shopper!

Consumers in China are on a shopping spree, not only within their own market but they also seem to be expanding their view overseas. In 2012, Chinese shoppers spent USD$190 billion outside of China. This is not only more than any other country,it’s the highest amount ever recorded.Sites such as USzCN.com have been smartly adapting to this trend by giving Chinese consumers the option to order products from the worldwide market through them.

It’s clear that Chinese consumers who order abroad are mainly interested in exclusive and expensive products and it has become immensely popular as Chinese look to purchase goods which could otherwise not be found in their country.  The products that are being bought overseas are; Watches, Jewelry, Luxury Wines & Spirits, Bags, Shoes, Cosmetics andPerfumes, Apparel, Accessories.

The main reason why Chinese consumers prefer to buy their luxury products abroad, is because purchases in China are seen as inferior and possibly fake. While the Europeans and Americans that order their products directly from China are going for the bargains.

This is a fun comparison and we think this is a sign for the future demand on both sides. In the future we expect both markets to develop in this way. Recession will continue in Europe and the US making the demand for cheaper products high whilst in China economic growth will continue and more and more people will be able to spend more money on consuming.