How mobile is transforming business in China Sep, 2013
What’s going on in China?
China becomes the world largest smartphone
market 3 source: IDC Country 2011 Market Share 2012 Market Share 2015 Market Share (forecast) 2011 - ‐ 2016 CAGR CHINA 18.3% 26.5% 23.0% 26.2% USA 21.3% 17.8% 14.5% 11.6% INDIA 2.2% 2.5% 8.5% 57.5% BRAZIL 1.8% 2.3% 4.4% 44.0% UK 5.3% 4.5% 3.6% 11.5% Rest of World 51.1% 46.4% 46.0% 18.1% Total 100% 100% 100% 20.5% Top ﬁve smartphone markets and market share for 2011, 2012, and 2016(F) (Shipments)
China smartphone penetraFon is 40% with 415.7
millions of users 4 0% 20% 40% 60% 80% US Germany UK Norway France Brazil India Austrilia Japan China S. Korea 73% 40% 49% 66% 14% 20.8% 45% 63.7% 60.4% 42% 56.8% source: forbes
Chinese Carriers smartphone 3G penetraFon is only
22% with China Telecom having the highest
penetraFon at 44% 5 Subscribers New 3G January
2013 Total 3G Total other Total 3G Share Total Share China Mobile 7.1 95.0 620.0 715.0 13% 64% China Unicom 3.7 80.1 162.8 242.9 33% 22% China Telecom 3.0 72.1 90.7 162.8 44% 15% Total 13.7 247.2 873.5 1120.7 22% 100% source: forbes
Android is dominaFng China’s smartphone market 6 0% 20% 40% 60% 80% Android iOS Symbian BlackBerry Windows 3%4.8% 0.4% 39.2% 52.4% 2%0% 2.9% 29.6% 69.4% China U.S. Smartphone OS Market Share in 2013 Even though Android sits on the top of both China and U.S. smartphone os market, the gap ahead of iOS in China is much bigger than that in the U.S.
As local vendors rise, Samsung strongly remains top
Android maker in China 7 There are several custom versions of Android in China that are tailored to the needs of Chinese consumers. 15.2% 20%
Tablet shipment is expected to reach 49.7 millions
of units by 2017, almost 7 Fmes that of 2012. 8
Over three- ‐quarters of tablet users in China don’t
believe tablets will replace PCs 9
Consumer lifestyle is changing
Mobile, web and TV consumpFon 11
Local player plays in mobile market diﬀerently 12 of Chinese smartphone users on the iOS or Android platforms had used 6 apps or more in March, 2013. of smartphone users downloaded new apps during the month, with 57%downloading more than 10. 74% 93%
In- ‐app purchases are more common in China than
the U.S. 13
14 In China, there is a greater tendency to be inﬂuenced to download an app based on what is featured by app store app store reviews & ratings and
WeChat explores the new ways to connect 15 Voice Chat Moments Live Chat Video Call Group Chat Text Messaging QR Code Anytime. Anywhere. Anyone. A free and powerful mobile communication tool that you can use
Text and Voice messaging are predominant
funcFons used by WeChat users 16
WeChat drives mobile centric consumers 17
WeChat grows much faster than Weibo in last 2
years with more new hight frequency users 19 0 100 200 300 400 500 600 Registeredusers(MM) 3/11 6/11 9/11 12/11 3/12 6/12 9/12 12/12 3/13 Weibo WeChat
The penetraFon is heavily overlapped 20 57.0% 20.6%22.4%
The devices - ‐ again, smartphone 21 95.8% 80.7% 95.8% of WeChat users access via their mobile phones 80.7% of Weibo users access via their mobile phones Mobile phones are No.1 device for both WeChat and Weibo Much more Weibo users access via their desktops, laptops, and tablets
www.dratio.comwww.dratio.com 用户使用微信的时间更长，黏性更强 每天使用3小时以上的微信用户比例均高于微博用户，5小时以上的用户比例更 是大大高于微博，说明微信用户的黏性更强 8.7% 4.2% 3.9% 13.4% 0% 5% 10% 15% 20% 25% 30% 35% 30分钟以下 30分钟-1个小时 1-2小时 2-3小时 3-4小时 4-5小时 5小时以上 近一个月每天平均使用时长占比 微博 微信 Users tend to stay on WeChat for longer Fme than
The roles to users 23 Media Platform for Information Personal Social Networking Tool - ‐ Browse, absorb, and disseminate informaDon - ‐ Emphasize on sharing and interacDon - ‐ Chat in voice or text - ‐ Emphasize on communicaDng with family and friends
The roles to users vs The roles of marketers 24 Media Platform for Information Personal Social Networking Tool - ‐ Browse, absorb, and disseminate informaDon - ‐ Emphasize on sharing and interacDon - ‐ Chat in voice or text - ‐ Emphasize on communicaDng with family and friends Media Platform for Mass - ‐ Strong disseminaDon power - ‐ Deliver brand message and campaigns to fans Personalized Private Social CRM - ‐ Provide VIP service - ‐ Recruit brand fans - ‐ Online- ‐to- ‐Oﬄine traﬃc driving
The content interests on genders 25 News Entertainment Traveling Lifestyle Education News Finance and Economics Sports Science and Technology Cars Games
The age of users 26 WeChat users are overall younger than Weibo users. 24 years old and younger 40 years old and older 46.8% WeChat users are 24 years old or younger 44.9% Weibo users are 40 years old or older
The age of users 27 80s 80s are the heaviest users for both WeChat and Weibo. 5.5% 10.5% 7.0% 14.5%12.6% 11.1% 70s 90s The percentages of different age groups of users who spend over 5 hours on Weibo or WeChat are:
The occupaFon of users 28 More freelancers, students, and unemployed people in WeChat users. Freelancers 29.8% are WeChat users 16.7% are Weibo users. Students Unemployed people 23.1% are WeChat users 16.1% are Weibo users. 37.5% are WeChat users 12.5% are Weibo users.
The educaFon of users 29 Secondary school and under 23.1%54% WeChat has more users with lower educational level than Weibo.
The gender of users 30 Women are more likely to spend longer time on Weibo. The percentages of female users who spend over 3 hours on Weibo and WeChat are respectively: 20.5% 18.8% Men are more likely to spend longer time on WeChat. 12.8% 22.2% The percentages of male users who spend over 3 hours on Weibo and WeChat are respectively:
Future Trends 32 • Users who use both WeChat and Weibo will spend more time on using WeChat in future. • WeChat will lose more than half of current users if it start to charge fees. www.dratio.comwww.dratio.com 信未来被用户使用的时间更长 7.6%的微博和微信并用用户未来将使用微信更长时间，而使用微博时间长于微 用户只占29.6% 47.6% 29.6% 22.8% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 微信长于微博 微博长于微信 两者差不多 微博和微信并用的用户将来（半年内）平均每天使用微 博和微信的时间长短 www.dratio.comwww.dratio.com 大多数用户不接受微信的单独收费 50.9% 42.1% 7.0% 0% 10% 20% 30% 40% 50% 60% 肯定不会再用 可能还会用 肯定还会用 微信如果单独收费的用户接受度占比 51%的微信用户表示，如果微信单独收费则“肯定不会再用”；相比之 下，只有7%的微信用户表示“肯定还会用”； “可能还会用”的犹豫派占42%左右
How consumer communicate with brands on WeChat 33
67% of WeChat users
are using WeChat public
35 Credit Card Users can interact with customer service representatives to get billing statements, credit lines, reward points, transaction reminder, and even pay bills via WeChat. Credit Card Non-users can apply for credit cards via WeChat.
36 General customers can inquiry about air fare, make ﬂight reservations, check ﬂight status, get weather information, and check-in for ﬂights via WeChat. Sky Pearl Club members can check their millage and enjoy other special service via WeChat.
37 Users can ﬁnd e-coupons, get information about latest products, ﬁnd nearby stores. Moreover, as the ﬁrst WeChat account that offers in-app purchases, McDonald’s offers their WeChat users a special discount they can only get by purchasing tea from within the WeChat. After clicking on “pay immediately”, users are taken to the payment page, which only supports TenPay and Chinese Bank cards.
38 Users can make hotel reservations, check their reservation and reward points, get speciﬁc information of particular hotel (pictures, price, address, phone number, direction, discount, nearby restaurants, etc.), receive customized notiﬁcation before check-in, and even play interactive games to get coupon via WeChat. Pod Inn currently has 550,000 followers on WeChat. Among all the successful reservations, 61% are from WeChat new followers.
40 China has become the world’s largest e- ‐commerce
China has become the world’s largest mobile
shopping market and second largest QR scanning
42 Yihaodian Shopping Walls allow consumers to
buy products by scanning a QR code through a
transacUon terminal. Their purchases are then
delivered within 24 hours.
Coupon Apps 43 A lot of mobile app provides location-based services that help users to ﬁnd near by restaurants, entertainment, shopping malls and get mobile coupon. Dianping.com Yuele.com
How many consumers use
smartphone in shop? 44 of people in shop use
smartphones in China 872012 IPSOS / Google smart phone survey %
45 China’s mobile payments total 151.14 The mobile payment market in China holds tremendous
poten5als and space for development and growth. billion yuan 2012 / Deloitte Mobile Payment Industry in China
The mobile shopping market is promising and the
percentage keeps rising 46
Taobao possesses the majority of the mobile shopping
market with 75.1% market share 47
RFID- ‐based Mobile payment is more popular in
supermarkets, convenience stores, shopping malls,
and public transport 48
Consumers are more comfortable with RFID- ‐based
mobile payment for small amount of consumpFon 49
50 of online buyers purchase clothing in China. 81.8% What products do consumers buy
Example of mobile services in China 51
52 As a real-estate management app, Suishoufangprovides realtors with a platform where they can set up proﬁles of clients manage information of their owned realties search apartments or houses and
53 This call-a-taxi app, currently available in Beijing, Shanghai, Shenzhen, Guangzhou, and Hangzhou, allows users make taxi reservation or ﬁnd a taxi instantly on their smartphones.
WeChat 5.0 as mobile shopping pla]orm 54 Information Flow CRM Content Service Payment Pay Phone Bill Buy Train Ticket Make Flight Reservation Subscription Account Service Account App QR code Public Platform
Manage Appointments Search Doctors Make Appointments Guahao App provides Chinese paFents with an easy
way to make appointments with their doctors 58 Add Favorite Doctors
59 As a personalized and easy- ‐to- ‐use tool,
Dayima allows users to track, monitor and manage their monthly menstrual cycles.
61 My BMW Remote app enables users to
lock/unlock, control, and ﬁnd their cars
with their smartphones at a distance.
Working with Baidu, Ford delivers an enhanced an
enhanced app by allowing users to use Baidu apps
while driving. 62
63 News & Publishing
NetEase to build up No.1 Media Brand on Mobile
Front 64 Local&News& Personal)Account) Customized+Subscrip1on+ Reward'Points' 163$Mailbox$ Share&with&People&
65 With over 7.4 million users by the end of 2012, iWeekly has been
one of the most successful magazine apps in China. 70％ of the content on iWeekly is exclusive to the app.
Mobile Finance 66
China has 150 million mobile banking users in 2012,
accounFng for over 40% of mobile banking users
worldwide. 67 Major commercial banks saw more than 100% growth in mobile banking users in 2012, and more than 300% growth in mobile banking transaction value.
Bank of China’s new iPad App provides personalized
interacNve experience for users by integraNng more funcNons. 68 The app allowing users to customize the welcome messages and favorite functions to enjoy individualized mobile ﬁnancial services. The “Pool” structure of the app reduces both the updating time and network trafﬁc. The app supports multitask operations and gives feedback on the dynamics of operation.
Fashion Social Network 71 Discover new styles and products Share products/outﬁts with followers Purchase the product directly through the site
Carrefour Smart Shopper App enables retailers to engage
with their customers in a next generaNon of personalizaNon 73 Indoor&Naviga,on& The$step$by$step$naviga/on$guides$users$to$where$the$ product$they$want$is$stocked.$ Social&Shopping&Lists& Users$can$see$all$the$discounts$and$promo/ons,$or$ create$shopping$lists$and$share$with$friends.$$ Targeted&In7app&No,ﬁca,ons& The$targeted$and$personalized$in>app$ads$are$based$on$ a$user’s$loca/on$inside$the$store,$their$selec/on$of$ par/cular$products$and$other$dimensions$of$heir$ behavior$and$proﬁle.&