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Tencent Offers Integrated Solutions to Help eCommerce Companies Win in the China Market

By Sarah ChenChina
3 min read
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In this article (5)

Speaking today at eTail Asia 2017, a leading platform to help online retailers in Asia build a successful ecommerce business, Ann Wang, General Manager of Performance Advertising Solution, Online Media Group, Tencent, shared insights into China’s unique Internet market environment and consumer behaviors. Wang revealed the Tencent platform’s strength and offered three pieces of advice to help ecommerce companies win in China as the country shifts toward a consumption upgrade.

In China, 90% of Internet users access the Internet via smartphone, and more than 75% shop online via smartphone. The ongoing consumption upgrade is further stimulating the development of China’s ecommerce market, particularly overseas online shopping. According to statistics, the total volume of cross-border online shopping in China reached US$85.7 billion in 2016, while the number of cross-border online shoppers grew 46% in the same year. The growth of ecommerce in the post-1990s and early 2000s is the main force behind the huge rise in overseas online shopping.

According to Mary Meeker’s Internet Trends 2016, Chinese mobile users spend more than 55% of their online time on Tencent platforms, including QQ, Qzone, WeChat, v.qq.com and Tencent News. With its focus on social interactions and content, Tencent has built a self-sustained ecosystem, powerful data capabilities and holistic scenarios for quality communications among its users.

Each year, Asia’s biggest names attend to network and get a 360° perspective on the most pressing challenges and opportunities in digital retail.

According to Wang, Tencent provides more open, connected data, which links ad exposure to brand attitudes, consumer behavior and sales. Tencent’s algorithms also help marketers engage consumers across scenarios, and elevate pertinence by dynamic and contextual messages, allowing them to reach the broadest coverage of Chinese netizens.

In her speech, Wang offered three valuable tips for marketers, which she believes can help global brands build a successful business in the increasingly dynamic China market:

  • Build a mobile-first ecosystem: Use all the tools available, including online ecommerce platform solutions, payment services and customer management to set up a mobile-oriented business ecosystem.
  • Go with an integrated marketing approach. Wang suggests marketers partner with a fully integrated platform to get the best of both brand advertising and performance advertising. One good example is Tencent’s co-creation of blockbuster IP with a popular cosmetics brand. The brand’s target audience loves to watch super-realism dramas and movies, worships movie stars, and are willing to consume and spend. Partnering with Penguin Pictures’ self-produced series “Revive,” the cosmetics brand made the leading actress its endorser and incorporated the brand appeal where appropriate. At the same time, it encouraged fans to try out its product used by celebs in the series. What’s more, it hosted offline celebrity meet-up sessions, thus winning the hearts of many fans. After only seven episodes, its Tmall store’s daily sales volume increased 400%.
  • Use the power of online marketing to boost traffic in offline stores. When a luxury automotive brand opened new stores in Hangzhou, it launched geo-targeted ads through WeChat Moment. Both the number of customer information acquisitions and store visits increased significantly as a result of the campaign.

eTail Asia is the region’s premier event for senior eCommerce and Multichannel Directors of leading retailers. Each year, Asia’s biggest names attend to network and get a 360° perspective on the most pressing challenges and opportunities in digital retail. Also speaking at the event this year were representatives from Google, L’Oreal, Adidas, and Philips, to name just a few.

Questions & Answers

Q.

What is the primary reason for the recent growth in overseas online shopping in China?

A.

The main force behind the significant rise in overseas online shopping is the growth of e-commerce among individuals born in the post-1990s and early 2000s. This demographic largely drives the expansion.

Q.

How did a cosmetics brand achieve a significant sales increase through a partnership highlighted by Tencent?

A.

The cosmetics brand partnered with Penguin Pictures' series 'Revive,' featuring the leading actress as endorser and incorporating its appeal. This, along with offline celebrity meet-ups, led to a 400% daily sales increase on Tmall.

Q.

What specific advertising method did a luxury automotive brand use to increase store visits in Hangzhou?

A.

The luxury automotive brand used geo-targeted ads through WeChat Moment when opening new stores in Hangzhou. This campaign successfully led to a significant increase in both customer information acquisitions and store visits.

Q.

What proportion of Chinese internet users access the internet and shop online using their smartphones?

A.

In China, 90% of all internet users access the internet via smartphone. More than 75% of these users conduct their online shopping through their smartphones.

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