WeChat, the most popular messaging app in China with over 1.2 Billion users, has been rapidly evolving since its inception in 2011. In January 2017, WeChat released “mini programs” to provide an even better user experience. For brands, Wechat mini-programs offer several advantages over traditional channels such as WeChat official accounts and website/app development. Here are five reasons why brands should consider using mini-programs for marketing in China.
What exactly are Wechat Mini Program?
WeChat mini-programs are “sub-applications” within the WeChat ecosystem. They can provide advanced features to users such as e-commerce, task management, coupons, etc. It is now the most popular e-commerce and task-processing platform in China and does not need to download. The followings are the development trend and advantages of the WeChat mini-program in 2020.
Liu Chiping, Tencent’s executive director: Wechat Mini-programs are becoming the infrastructure of retail market.
According to People.cn, Tencent achieved revenue of 108.05 billion yuan in the first quarter of 2020, a year-on-year increase of 26%. The monthly users of WeChat exceeded the 1.2 billion mark for the first time, an increase of 3.2% from the previous quarter. Thanks to the need for daily necessities purchases and livelihood services, the daily active accounts of mini-programs have exceeded 450 million.
Why every company in China should have a WeChat Mini Program?
- The sales of the WeChat mini program are increasing exponentially.
- Per capita visits, utilization, and retention rate are surging.
- More businesses benefit from the WeChat mini program.
- The facility of mini-program and huge user database attract more platforms in China.
- WeChat is engaged in the construction of powerful commercial infrastructures.
1. The sales of the WeChat mini program are increasing exponentially
By July 2018, the number of WeChat mini programs has exceeded 1 million. In 2019, the number of daily active users of mini-programs exceeded 300 million, and more than 800 billion transactions have been created, a year-on-year increase of 160%.
On March 8th, 2020, the WeChat mini program live streams helped BBK Better Buy to exceed 240,000 online orders, and the sales exceeded 20 million yuan in just one single day! This success is not unique.
Mengjie Home Textiles’ single live-streaming sales exceeded 25 million yuan on March 14, 2020. For another brand, Purcotton (纯棉时代), with the help of WeChat’s public account, group advertisement, coupons, and mini-program dedicated to boosting the traffic and brand exposure, the number of interactions in the live stream organized by Purcotton reached 500,000, and the live-streaming sales increased by 500% compared with the latest period.
2. Per capita visits, utilization, and retention rate are surging
Life services, education, catering, tools, and other categories are the main active accounts of WeChat mini-programs. Compared to last year, the WeChat mini program has a 45% increase in visits per capita, a 98% increase in usage per capita, and a 14% increase in retention.
We can find online shopping platforms, features like hailing taxis (through Didi Chuxing), video games, social media, etc. run entirely within WeChat. In short, WeChat’s range of services gives it the functionality of a whole suite of apps for its huge user base.
Indeed, thanks to its complete coverage in China, it is even used to facilitate communication between the government and citizens. Its user base grew alongside functionality, and the functionality serves its giant user base.
3. More benefices generated by WeChat for business.
The percentage of revenue generated by WeChat’s official advertising increased from 56% to 76% for the long-tail mini-program.
According to the Tencent annual report, in 2019, the total transaction volume generated by the WeChat Mini program is 800 billion yuan.
More than financial advantages, the WeChat mini-program is very user-friendly for not only personal account users but also for service providers who can benefit from the mini-program platform.
4. Facility of mini-program and huge user database attract more users in China.
The aim of the mini-program is to create a friendly, efficient, and consistent user experience within the WeChat ecosystem. Every effort has been made to cater to a range of needs. There’s no need to download or install a mini-program in order to use it. It can be used anywhere, at any time, without any special requirements.
Although all the success of the mini-program, the Chinese tech behemoth Tencent Holdings is not satisfied, WeChat is trying to let the mini-program get more exposure and will make the mini-program more commercial through open-screen ads, video ads, and incentive ads.
With its huge database (more than 800 million users), the WeChat mini-program has already attracted the largest social open platform in China – Weibo. In 2019, Weibo’s mini-program was launched. This database is still snowballing.
5. WeChat is engaged in the construction of powerful commercial infrastructures.
In China, Alipay and WeChat pay are two of the most popular mobile payment methods. They have already gained Chinese customers’ confidence and changed their habits of payment. Most people pay on those platforms using barcodes, known as QR codes, on their phones.
WeChat has established a transaction guarantee system and brand certification system to ensure the commercialization of the WeChat mini-program.
Not only WeChat payment, but WeChat will also optimize the logistics tools of the mini-program. In 2019, Tencent officially issued a document announcing that WeChat officially launched the logistics assistant interface function.
The WeChat logistics assistant can not only facilitate online shopping users to receive logistics information through WeChat for the first time but also allow small and medium-sized e-commerce and mini-program merchants with limited development capabilities to quickly and efficiently dock multiple logistics companies.
Want to get your own WeChat mini-program?
Nowadays, If you want to start a business in China, creating the WeChat mini-program is an important part that cannot be ignored. If you want to know more about how this WeChat-based program can help you expand your business, please contact us, a professional marketing agency in China.