BWild |
November 11, 2015
Tencent is finding success in offering inexpensive content
Tencent is one of China’s largest Internet and commerce businesses, but it does have strong competition from others that have established a foothold in both of these sectors. In order for Tencent to beat out the competition, the company is beginning to focus on providing consumers with inexpensive entertainment, ranging from mobile games to free video streaming services. Tencent expects to see significant growth in the coming year, despite the slowing economy in China.
Mobile games and free HBO streaming are likely to generate strong interest among consumers
Tencent is responsible for the massively popular WeChat and QQ messaging applications. Both of these apps will soon support new mobile games that are coming to the country. They will also offer free streaming of HBO’s successful “Game of Thrones” series. Mobile games, in particular, are likely to drive significant growth, as many consumers in China prefer to play these types of games because they represent a very convenient form of entertainment.
China’s economy is growing slowly
By coupling mobile games with free video streaming through WeChat and QQ, Tencent expects that it will see a 28% surge in sales. This is four times faster than the rate of domestic economic growth in China. The country’s economy is currently growing at the slowest rate it has seen in 25 years. Several companies have managed to find success despite the slowing economy through a focus on the mobile sector. These companies are supporting mobile commerce, as well as various forms of mobile media.
Mobile games continue to find success in China
Mobile games are likely to become a primary focus for Tencent, but not the company’s sole focus, of course. Tencent has a long history of supporting mobile gaming and by expanding the capabilities of its WeChat and QQ apps, it will likely connect better with gamers in China. Many new games are coming to China, with developers seeing significant promise in the country. This has made China one of the fastest growing markets for mobile games in the world.
The highly popular social messenger app is playing a massive role in shopping and spending.
WeChat has a massive 600 million monthly users and has become a regular part of everyday life in China not only for sharing pictures and updates with friends and family, but also presenting enormous mobile commerce opportunities as people tell each other what they’re buying, where they’re eating and are even using it to hail a taxi when they’re ready to head home at night.
With this considerable opportunity in front of them, retailers are using this mobile app to reach consumers.
It isn’t just relying on mentions from users anymore. Mobile commerce has become a central component of the WeChat experience, as people send their orders to the nearest coffee shop so that it will be ready when they arrive, they are browsing the latest designer fashion collections, and are even designing their own custom pairs of Nike shoes. It can be used to plan vacations, count the number of steps taken every day, share photos, order meal deliveries, keep up with the news, and take part in a conference call.
This mobile commerce experience over the WeChat was originally founded in 2011 by Tencent.
It has risen to a point that is much larger than the experiences that are commonplace over m-commerce in most other parts of the world. In fact the experience offered to consumers in China who are often mobile-first, seems as though it is completely futuristic to areas of the world that have the same device penetration but that are not adopting mobile shopping to nearly the same degree.
According to McGann-Zhang co-founder and native of China, Yichi Zhang, “It’s an ecosystem,” adding that “In China, you have to use it.” Zhang explained that the user experience that is provided over WeChat is exactly what developers in every American industry – from retail to technology and publishing – have been attempting to create within the smartphone environment.
Bomoda CEO, Brian Buchwald, stated that when it comes to mobile commerce over WeChat, “They’re doing things we’re simply not doing in the U.S.” He also pointed out that China is doing exactly what they need to do to access its markets through mobile payments and apps for the first time, in the same way that one would “if you were going to start a city from scratch.”
