How Should Brands Be Using WeChat?
Over the past few months, we have engaged in a number of great discussions on China’s digital marketing trends with leading experts.
Here we talked with head of marketing at Chatly, Lauren Hallanan.
How can brands get the most out of WeChat?
WeChat is China’s largest social channel (Over 1.0B monthly active users) and has become its own ecosystem - an ecosystem to rival the Web in China. For companies that already have wide brand presence and large audiences, WeChat is used as a large CRM system - allowing brands to cultivate audiences - convert to sales and support after-sales. It is an incredibly powerful ecosystem bringing social and ecommerce closely together (supported by a native payments system with WePay).
WeChat holds strong potential but brands need to first build a following. To build a follower base on WeChat, brands should look to the following tactics:
- Use QR codes at retail shops, on packaging …and on ads …to link audiences to accounts
- Deploy ads on WeChat (including geo-targeted ads in/outside of China)
- Optimize search strategies in/for WeChat - Build overall brand awareness
Lauren Hallanan who works with Chatly discusses how brands are using WeChat, including how to get new followers.
How should brands be using WeChat Mini-Programs for CRM?
WeChat Mini-Programs have grown quickly. Brands originally used Mini-Programs for flash sales and quick hits for audience attention BUT more recent efforts show that Mini-Programs have becoming institutionalized as foundational to success on WeChat. Given the migration of brand and audience attention from Official Accounts to Mini-Programs, brands need strategies to support both areas. It is possible that Mini-Programs become the front-end for brands (mirroring the role of a Website), while official accounts become more the back-end (where CRM, messaging and customer engagement is managed).
In this context brands should have comprehensive social CRM strategies for WeChat that allow them to collect customer insights - segment audiences and customize messaging to meet more specific audience interests.
What is the future of live-streaming for brands in China?
Over the past several years live-streaming in China has exploded.
Where in the west, platforms like Periscope and Meerkat are distant memories, China has fully embraced live-streaming. In 2018, there were well over 200 livestream platforms in China. There has been significant consolidation since then - and the number of viable platform now is much smaller - but livestream video is firmly established in China.
The most recent phenomenon, Livestream ecommerce sales with influencers (KOLs), was everywhere in 2019. Brands used livestream selling (with KOLs) as a way to generate quick sales - but often at a steep discount (and hit to profit margins). It's clear that this trend of selling through KOLs will continue despite mixed results and dubious brand impact.
Smart brands will need to look more broadly at using live-streaming as part of how they directly communicate with audiences. For instance, brands are now deploying their own staff to do tutorials, to answer customer questions and generally create engagement with online customers. In doing so, these brands are more directly building audience connections - rather that forfeiting the connection to KOLs.
How are new Chinese brands out-innovating Global brands?
Chinese DTC brands are winning against global brands, leveraging superior local knowledge and a strong willingness to innovate.
China is an environment which is geared to DTC (Direct to Consumer) success. New brands emerging in China have access to all the resources that disruptor, DTC brands need to succeed;
- Easy access to manufacturing
- Cost efficient digital marketing and sales channels
- Access to growth capital
- Nimble operational and logistics systems
- Data and CRM systems (direct audience engagement)
Local brands are combining these resources in a multitude of ways and focusing in on innovative tactics such as; live-stream ecommerce, private traffic, and social selling with KOC (Key Opinion Consumers).
