10/04/17 11:31 BST
by Hot Pot Digital

Know China Now: Tencent and Tesla, Reebok Expands and Mobike on WeChat

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.

Reebok Expands In China – with an Unlikely New Face

What is it?

  • Reebok has announced plans to open 500 stores in China over the next three years
  • 81-year-old Wang Deshun is to be one of three local brand ambassadors – along with actress Yuan Shanshan and actor Wu Lei – in the ‘Be More Human’ China campaign
  • The campaign aims to inspire people of all walks of life to take part in sport and exercise

 

Why do I need to know?

  • Reebok’s parent company Adidas has big ambitions to become China’s leading fitness company over opponent Nike
  • With the fitness market growing at a rapid pace in China, it is projected to be the second-largest market after the US
  • Combined, Nike and Adidas account for about a third of China’s sportswear sales

Tencent Invests In Tesla – and Tesla Overtakes Ford

What is it?

  • Tencent holdings – the brand responsible for WeChat – has bought a 5% stake in Tesla, the electric carmaker
  • Tencent is now one of Tesla’s biggest investors, having invested $1.78bn
  • Tesla has now overtaken Ford Motors in market value

 

Why do I need to know?

  • It shows Tencent’s commitment to not only artificial intelligence but also demonstrates an increasing international outlook for China’s digital behemoth
  • Tencent was named number one brand in 2017’s BrandZ Top 100 Most Valuable Chinese Brands, while Tesla was in the Top 10 Cars ranking in the 2016 BrandZ Top Most Valuable Global Brands

Mobike Collaborates with WeChat

What is it? 

  • Mobike, China’s most popular bike-sharing and renting app, has been integrated into WeChat’s “wallet” service
  • With the app now listed in the wallet section, it is expected to reduce friction for users – especially new ones – to locate a bike and start riding
  • Prior to this, Mobike was available as the WeChat “mini program” where it helped add to exponential growth in user registrations through WeChat

 

Why do I need to know? 

  • Tencent is already a big investor in Mobike
  • Mobike has been rising steadily in popularity – along with its competitor app Ofo – but a WeChat integration is likely to see skyrocketing use of the platform
  • WeChat integration also greatly benefited China’s biggest ride-hailing app Didi Chuxing – a factor contributing to Uber’s demise in China