Friday, September 27, 2013

WeChat: The Rise of China's Hottest Social App



Several months ago, my dad asked me if I had WeChat installed on my iPhone.  When I said no, he insisted that I download the mobile communication app, rattling off all of its features and boasting about how often he uses it.  I politely shrugged off his request, given that I take any technology advice from my dad with a grain of salt.

Little did I know, my dad had already caught on to a huge and growing trend in China.  WeChat is a free mobile app offered by Chinese Internet giant Tencent that “blends elements of WhatsApp, Skype, Instagram and Facebook.”  In less than three years it has grown to 236 million monthly active users without any concerted monetization efforts.

Now it appears that’s about to change.  Celebrities are beginning to offer subscription-based services through WeChat that allow fans to connect with them through exclusive content.  It’s a unique marketing and branding tool that companies are starting to catch onto as well.  Starbucks, for example, has leveraged the platform by asking users their mood, and then sending them a song to match.  Given the breadth of the WeChat platform, brands have a lot of creative potential to drive customer engagement through this channel.

I believe that Tencent has been cautious with WeChat, prioritizing the build-out of a large user base over any immediate monetization efforts.  In China’s celebrity-mad culture, have famous pop stars offer subscription services is a good way to test the waters to see what the potential could be.  In the meantime, I may actually heed my dad’s advice and finally download the app.         

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