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Effective Digital Solutions for the
Chinese Market
The Internet Economy is a Major Contributor of GDP
Source: iResearch, 2014；NBS, 2014
• A significant driver of China’s economic growth, the Internet economy has been growing 5-7 times faster than GDP, reaching 800 billion RMB in 2014.
• But in general, the growth of the Internet economy had began to slow down since 2011.
China is at the Forefront of the Mobile Evolution
87% 33% 32%
88% 48% 44%
277.4M 87%
557.1M 85%
24%
30%
3%
20%
Netizens Penetration
（% Netizens）
Activity Social Video E-Commerce
New Technologies
QR Code NFC/e-Wallets
Source: CNNIC 2015.1 /Nielsen 2014H1
Digital china video
￥ 4G
Low Cost Increase Income Mobile Speeds
Efficiencies will continue to drive internet adoption
2014 to 2018，China will add 177M new smartphone users. China’s smartphone penetration will increase from 38.3% to 51.1%
50% Chinese Will be Mobile Netizens in the Near Future
New Growth Point 1 : Mobile Internet Grows Rapidly
83.4% Access Internet via
smartphone
69.6% Access Internet via desktop
221 million Mobile users of 1990s
generation
Cover Mainstream Consumers in the Future
Percentage of mobile users
41.9% 42.1% Usage rate of QR code
Better Acceptance & Adoption of New Technology-based Products
Penetration of mobile payment
38.9%
Cellphone becomes the main entrance of Internet
Source: 34th China Internet Development Statistics 2014 by CNNIC; Insights on Behaviors of Chinese Mobile Internet Users 2014, inmobi
Mobile Internet Drives Higher Business Opportunities of Low tiers city
Source：Report on Internet Development in 2-3 tier Cities in China By 企鹅智酷
35% 53%
(Gap over 1st-tier cities)
Internet Penetration Rate in 2-3 tier Cities
1%
0
-1%
-2%
-3%
-4%
-5%
60% 15% 30% 45% Online Education
Transportation Services
Online Medical
Online Travel
Online Finance
Entertainment
Online Shopping
Percentage of users take smartphone as the first choice to access Internet
Mobile Internet Application
3rd and 4th-tier 1st and 2nd-tier
更多网民开始使用移动设备看视频
78% Watch video every week with
tablet
New Growth Point 2 : Mobile Drives the Emergence of Users’ New Habit on Content Consumption
Internet Thinking
On Jan. 4, 2015, the first Internet-based private
bank issued its first loan.
Life Service
Medical
Transport
Real Estate
F&B
Finance
New Growth Point 3 :Business Model Innovation Exposes the Industry to New Opportunities
• Founded in 1998, Public listed in HK Exchange, 2004 • Global offices in HK, Thailand, Korea, Vietnam, India and USA • Staff strength: 30 K staff, 70% engineers
Billion $ Internet Company Market Cap
Resource: Yahoo Finance 26/01/2015
The 4th Largest Internet Company Globally
217 million Concurrent QQ users
Internet Exists Where There are People It’s hard to find a virgin market
820 million MAU on QQ
629 million MAU on Qzone
468 million MAU on WeChat
Source: Tencent Financial Report, Q3’2014
Dining
Commerce
Travel Taxi
Medical
NEWS Information
Entertainment
Social
Music
Video
eCommerce Mobile
…
A New Mobile Ecosystem to Connect Life
Finance
City Service
What is Wechat
A Communication Tool
A Social Networking Platform
A Game Center
A Social Media
A E-commerce Platform
A Digital Wallet
WeChat, Growing and Loved by Millions
Jan.21, 2011 Weixin 1.0 released
Mar.29, 2012 100 million registered users in China
Sept.30, 2014 468 million Monthly active users worldwide
Jan.15, 2013 300 million registered users in China
Jun.14, 2013 Ban Ki-moon launched UN WeChat account
In 3 years
500M users
3 20 #1 Years Language Social APP
Over 110 OS versions +
6 Smartphone device Cover over 200 country’s
mobile users Among over 70 countries
In 3 years
100M users
WeChat, Change for you
WeChat, the First Chinese Communication App on Apple Watch
Different Public Accounts for Different Purpose
Subscription (1 Broadcast MSG Daily) A platform for media, orgs to disseminate information to the public
Service (4 Broadcast MSG Monthly) For enterprise and orgs to extend their business offerings. Also provide enhanced analytics and management functionalities.
Guangdong Museum
Text interaction
Great Britain Travel Bureau
Travel related information Voice guide
Subscription Accounts: Connect with Information
Service Accounts: Connect with Services
User Behavior Opportunities for Brands
Fragmentation
Accelerate Social
Screen Engagement
Transaction Goes Mobile
Relevancy / Big Data
Enable Sharability
Play 2.0/Scenario
Turning media touch point into cash point
21
Fragmentation Accelerate Social
Screen Engagement
Relevancy / Big Data Play 2.0/Scenario
New Normal, New Opportunities
Enable Sharability
Transaction Goes Mobile
Turning media touch point into cash point
22
websites visited per day 40 seconds to switch to another APP 100 times the phone is checked per day 150 Fragmentation / Real time
Tencent Account System Utilizing Data to Create Clear Individual Profiles
TA Reach Optimization - Turing System
Brand X
Past behaviors
Brand Shopper
data
Step1: Select Sample
Step3: Expanded group
Optimize
Degree of separation
New Potential Consumers
Smart TA Engine
Demographics
Contents
Behavior
LBS info
Step2: Analyze Sample
Content-based Targeting High-end Users Precisely
T R A C K 1 2 3
Smart Optimization Self-learning
M A R K DELIVER
Source：Tencent’s Big Data Platform, Nov. 2014, Tracking of browsing habits of users having watched American TV series within a month
Original
Travel
MV
Micro film Film
Documentary
Sci-tech
Mom & baby
Animation & comic
TV series
Variety shows
Original production
Documentary
Variety show
TV series
MV
Micro film
Relevancy / Big Data
New Normal, New Opportunities
Enable Sharability
Accelerate Social Fragmentation
Screen Engagement
Play 2.0/Scenario
Transaction Goes Mobile
Turning media touch point into cash point
Social Has Gotten More Social
200 million photos uploaded/day 6 billion times songs shared last year
10 billion messages per day
3 billion links shared per day
1 million Forwards in 1 Hour
Mobile Technologies Lead to Much More Social Behaviors
Contact list: Import list into mobile social network
LBS: Info organized based on locations
Photo: Taking photos/videos everywhere & share
NFC: Add friends and transmit data easily
Gravity Sensor Function: like Shake-shake
Burberry’s digital WeChat fashion experience
Burberry's Fashion Show
Accelerate Social
New Normal, New Opportunities
Fragmentation Screen
Engagement Transaction
Goes Mobile
Relevancy / Big Data Play 2.0/Scenario Enable Sharability Turning media touch point into cash point
Not Just Watch But Play
35.17M+ users watch TV and guess
contestant’s mentor
Red Packet
20.11M+ users participated in the red packet giveaway
23.52M+ users watch the show and shake to vote contestant
back to the show
Return to VOC
11 billion
participates in total
500 million RMB is given away
Cross-screen Scenario Interaction Social Sharing
“Shake n Shake” Redefined the Spring Festival Gala 2015
Relevancy / Big Data
New Normal, New Opportunities
Turning media touch point into cash point
Transaction Goes Mobile Fragmentation
Accelerate Social
Screen Engagement
Play 2.0/Scenario Enable Sharability
Touch Point to Cash Point
Chinese mobile users
had shopped via mobile
Source：inMobi Report on Behaviors of Chinese Mobile Users 2014
Source: Analysys International2014
5.3 Trillion Yuan
Volume of third-party mobile payment Q1-Q3 2014
An estimated 500% YOY growth in 2014
80%
Shorten The Buying Journey
minutes 3 1,751 Advance
payment
388 Cars sold
6,677 Registrations
WeChat Marketing Solutions, Creating a New Mobile Marketing Ecosystem
The future is already here — it's just not very evenly distributed.
— William Gibson, Fiction Novelist
