leverage wechat at its best to reach and serve …...link to the product pages or to the check--out...
TRANSCRIPT
Bruxelles, May 2017
Leverage WeChat at its best
to reach and serve Chinese
consumers
Contents
Internet in China and the role
of WeChat
1
How to best leverage WeChat to
reach retail goals
2
Success stories
3Why internet is different in
China compared to European
habits and how WeChat is
entrenched in Chinese
consumers everyday life
How WeChat is structured in Europe
and key benefits for western brands
4
China Has Become A Super Force in Mobile Internet
Source: CNNIC 2016，June China Internet Development Report.H1 CONSUMER BAROMETER,GOOGLE,2015.6,Center for Retail Research,2016
Mobile Internet User Behavior Survey 2016, IAB Understanding Digital Commerce in the U.S. and China,China National Ad Research Institute,2016.1
Mobile
UsersPenetration
（% Citizens）NetizensMobile
shopping1Time spent
(per day)
Online video(Hours per day)
710Mn 51% 656Mn 2.7Hr 67% 1.83
282Mn 87% 263Mn 1.9Hr 34% 1.16
1 % of Digital users who made a mobile purchase in the past 12 months, IAB 2016
In terms of mobile payments, for example, it already dwarfs U.S.
Source: Forrester Research (U.S.), iResearch (China)
U.S.CHINA
2015 2016 2017
112 Bn
5.5 Tn
50x
Internet as we got to know it: the sum of vertical applications, discovered one by one over time, each one with a clear purpose
5
Exhaustive Communication
by e-mails
Information & Service
by website
Entertain
by Facebook
Opinion leadership
by Twitter
Real-time communication
by Whatsapp
Voice and conference calls by
Skype
Vertical needs
by native apps
WeChat allows integrated access to almost all digital services…
Messaging Feed reader
Geolocalization
Backend with open APIs
Mobile payments
Browser
Media player
QR code reader
7
… becomingjust internet
in China
9
From early morning to late night...
...From news to music...
...From games to financial transations...
...From lunch to e-shopping...
...From social posting to chats...
...From money transfer to video calls...
…The whole day is spent on WeChat
As a
consequence,
more than 760M
people in China
use WeChat
EVERY DAY
10
Chinese New
Year 2017
14.2 Billion “hongbao”
exchanged on WeChat in
one day
To social innovation
From tradition…
11
WeChat Pay is
rapidly
becoming
mainstream75%
100%
25%
50%
2014 2015 2016 2017
Alipay WeChat Pay
WeChat Pay is deeply entrenched with
everything else in WeChat
Hence, rather than being “just” a convenient
payment tool, it can be the cornerstone of an
integrated “online-offline” marketing strategy
Source: iResearch, Analysis
1 . 0 0 0 . 0 0 0TRANSACTIONS…PER MINUTE
Internet in China and the role
of WeChat
1
How to best leverage WeChat to
reach retail goals
2
Success stories
3
How WeChat is structured in Europe
and key benefits for western brands
4
Contents
How to use WeChat to attract
new followers, inform and
engage them through
multimedia contents and finally
serve them during their
shopping experience
WeChat advanced targeting features allow merchants to effectively reach
their audience in China
AttractExample
Basic information
Men
Women
30+ years old
Interests
Fashion & Luxury
Travels
Europe
Purchasing power
Medium – High
Advanced targeting
High probability to visit Italy,
France or UK soon
Inbound vs Outbound targeting
Not only in the cities or residencesBut Real Time LBS (block where the personis designed on a map)
Social demographic profileEducation, marital status
Commercial interests purchase potential and online shopping behaviour
Set up of target group based on client target profiles
Wheather condition
Mobile device
BANNER
Multiple formats and planning options to meet campaign requirements and
engage followers
MOMENTS
Attract
♦ Customized menu
♦ Multimedia and interactive contents
♦ Interaction required to surf contents
♦ 1-1 chat with followers
…and much more!
Inform &
engage
Example of a sophisticated Official Account
Brand could inform, engage and serve followers on WeChat through the
Official Account
Broadcast messages can unleash the power of editorial plans…without
filters: each follower receives them
No Algorithm: “We are a media,
hence we have no right to filter
what a brand wants to say to a
person who chose to follow it
Multimedia contents: It’s not
about frequency, it’s all about
interest and quality
Limited volumes: communicate
only if you really have
something relevant to say
48hours rule: if the follower
wants you, then you can tell
him what you want
Inform &
engage
Using WeChat to provide 1-1 customer care via chat has become a
common practice
Main features
• Customer care one to one via chat to support followers
in their requests
• Direct management of the service by a Chinese
operator with a 48 hours of SLA per 6 days a week
• Configuration and management of keywords to provide
automatic answers
Assist &
Sell
Selling through WeChat: online…
Assist &
Sell
How does it work? Main advantages
…
▪ Direct link to the e-commerce website
▪ One-click payment through WeChat Pay
▪ Exploitment of an existing asset
▪ Better visibility of the e-commerce
▪ Link to the product pages or to the check--
out pages of JD.com
▪ WeChat Pay is natively functioning
▪ Exploit JD.com visibility
▪ JD.com offers sales support services
▪ Mini e-commerce website within the account
▪ Management from the platform
▪ Personalization of the experience
▪ Integration within WeChat account
▪ Creation of engaging experiences
Integration of
JD.com
Native
WeBoutique
▪ Product booking and picking up in store
experiences
▪ Payment through WeChat Pay within the
account or directly in store
▪ 360° brand experience
▪ Increase the in-store traffic
Drive to
boutique
Own
e-commerce
platform
Selling through WeChat: …offline, in your stores in Europe
Assist &
Sell
Internet in China and the role
of WeChat
1
How to best leverage WeChat to
reach retail goals
2
Success stories
3
How WeChat is structured in Europe
and key benefits for western brands
4
Contents
Examples of brands from
different industries which
successfully unleashed the
potential of WeChat
Selected stories
22
Luxury
RetailTravel
Fashion
Watchmaker: advanced targeting to boost followers adoption
Activity and budget allocation
Costs
Campaignduration
Banner click to follow to increase followers base (16% of total budget)
Moments ads focused both on followers acquisition and brand awareness (84% of total budget)
160k Eur invested
Banner click to follow: CPC of 0,15 Euro
Moments ads: CPM 20 Euro for Tier 1 cities, 13,5 Euro for Tier 2 cities
Banner click to follow: 13 days
Moments ads: 24 days
63k new followers acquired (24% from Banners, 76% from Moments)
9M impressions on moments, 100% share of voice on target
Follower Acquisition
Our Role
▪ Graphics and copywriting review and adaptation
▪ Target definition
▪ Real Time Bidding Optimization
▪ Continuous monitoring and reporting
Building aspirational e-commerce experiences
Dior, on August 8th 2016 put on
sale on WeChat a special edition
of its “Lady Dior” bag to
celebrate Chinese S.Valentine
day
Through Dior Official Account
followers could customize the
bag by selecting up to three
charms to plug in and purchase it
(4.200 USD retail price) using
WeChat Pay
The entire stock (200 units) went
sold out in a day
Chloé, Michael Kors, Montblanc,
Valentino and other brands have
already launched similar
activities
MILAN
How Caesar hotels delivers an integrated experience from sales to room services through WeChat
Retail: How Selfridges uses WeChat to draw users to its eCommerce platform
Selfridges case study
Target Gain visibility for both its eCommerce platform
and its physical stores among Chinese customers
Activities
WeChat official account, directly linked with
Selfridges cross-boarder eCommerce site at
editorial level
Clear and detailed instructions for Chinese
customers about every aspect of making
purchases offline or online at Selfridges (e.g.,
returned goods, taxation, …)
WeChat QRcodes strategically positioned within
the store to provide interactive contents (e.g.,
products information, maps, assistance) to acquire
new followers
Online
Offline
Internet in China and the role
of WeChat
1
How to best leverage WeChat to
reach retail goals
2
Success stories
3
How WeChat is structured in Europe
and key benefits for western brands
4
Contents
Examples of brands from
different industries which
successfully unleashed the
potential of WeChat
Why western brands fail on WeChat
28
Detached execution
Wrong usage of platform capabilities
Overpriced and poor targeted advertising
Poor targeting
Wrong storytelling
Lack of market research
Which issues did your organization faced in its first attempt to approach chinese consumers trhough
WeChat?
% of respondents1
1 More than one answer allowed
Source: WeChat Italy – Digital Retex research, 2016
62%
59%
45%
31%
27%
26%
To do this, we leverage close relationship with local trusted partners to ensure
end-to-end support with regards to everything about WeChat
ClientLocal suppor t and
execution
Tencent International
Business Group
Shares needs and
targets
Proposes/ approves
targets and planned
actions
Cooperate on system
integration activities
WeChat strategy design and execution
Local accounting, idea generation and
management of day-by-day activities through a
team if English, Chinese, Italian and French
speakers, based in Milan
Deep knowledge of most common CRM, DAM,
eCommerce and retail platforms to ensure
system integration is properly executed
Liaison between Head Quarter and local
markets
Provide support to local office and
partners on procedural and technical
issues
Directly operates advertising
campaigns (targeting and real time
bidding)
Monitors overall quality
Independent, third party agencies
Trusted partners
Key benefits of working with us and our trusted partners
20 – 30% higher impact on WeChat advertising campaigns
▪ Access to “super targeting” options
▪ Lower service fees
▪ Post paid top-ups
▪ Shorter time to launch
▪ Direct assistance through internal procedures
Performing Official Accounts, also for non chinese entities
▪ Possibility to open Official Accounts on Weixin (hence visible in China) without a Chinese business license
▪ Possibility to host contents in China on Tencent Cloud infrastructure (optimized for WeChat)
▪ Tencent Advertising solutions
▪ WeChat Official Accounts
▪ WeChat Payments
▪ Tencent Cloud
Better integration across all WeChat related services
Overview of the services we can provide
31
OA opening and
configuration
System integration OA management
eCommerce &
payments
Advertising Training
Overview of provided services
Closing remarks: some suggestions when approaching chinese market
32
Have an overall, consistent plan
Work with the right people
Plan mid-term
Get the right balance between HQ control and local touch
eCommerceLocal
distribution
Market
research
Social mediaBrand
protection…
China is big, (still) fast growing and (more and
more) reach: it can’t be quick’n’easy
They want our style, but “speak” their own
language
