14/02/17 13:59 BST
by Hot Pot Digital

Know China Now: CNY in Numbers, Chinese Millennials and Starbucks

With more than 846 million daily active users, China boasts more smartphone users than the USA, Brazil and Indonesia combined, with an unprecedented rate of adoption and change in the digital sphere.

Each week Hot Pot Digital’s Know China Now blog keeps brand marketers informed on digital, social, mobile and ecommerce trends in the most exciting consumer market in the world.

Starbucks Collaborates with WeChat on Gifting Coupons

 

What is it?

  • WeChat has launched a feature in collaboration with Starbucks, whereby users can buy a coffee and send it as a gift through WeChat to a friend
  • Users can now select a particular coffee, pay via WeChat pay and send the coupon to a friend who can then go to Starbucks to redeem it
  • Starbucks and WeChat have a history of cooperation, the American coffee chain being the first major international brand to open a WeChat official account in 2012

 

Why do I need to know?

  • While coupons are not new to WeChat, it is the first time a non-Chinese brand has featured in the WeChat ‘Wallet and Coupons’ section
  • Sending red envelopes through WeChat for CNY has been popular for some time, but this new feature suggests WeChat wants to encourage all types of social gifting
  • WeChat is encouraging users to send more than just money to each other, demonstrating the company’s increasing use of mobile payments – often in creative, collaborative ways

Angelica Cheung on the Chinese Millennial

 

What is it?

  • In a recent interview Angelica Cheung – editor of Vogue China – gave insights on how to engage the Chinese millennial consumer
  • Cheung commented that reaching Chinese millennials in an effective way means treating them as friends
  • Creating a community feeling where young people are influencing one another is key to creating engagement and driving sales
  • KOLs (Key Opinion Leaders) only work if in keeping with the brand as a whole, for example Cheung argued using male celebrities to promote lipsticks is too obvious and “crude”

 

Why do I need to know?

  • As a generation with lighter long-term financial obligations, this demographic has enormous spending power
  • To effectively communicate with this market, courting consumers and focusing on brand integrity are paramount. Short-term “gimmicky” sales tactics are likely to be detrimental long-term

CNY WeChat Usage Stats

What is it?

  • WeChat experienced a substantial increase in usage, including a five times increase in usage of its payment functions
  • 46 billion hongbao (red envelopes) were exchanged during the Spring Festival, the highest percentage of which was in Guangdong with 5.84 billion red envelopes sent
  • During Lunar New Year’s Eve and New Year’s Day 2.1 billion minutes of calls were made through WeChat

 

Why do I need to know?

  • The data from this year’s CNY period further confirms WeChat’s incredible monopoly over the Chinese digital landscape
  • The data report highlighted the increasing internationalisation of WeChat pay, which is now available in South Korea, Taiwan, Thailand, Hong Kong and Japan

Source: www.chinainternetwatch.com