Leverage WeChat at its best to reach and serve Chinese consumers - PowerPoint PPT Presentation

Leverage WeChat at its best to reach and serve Chinese consumers Bruxelles, January 2017

1 Internet in China and the role of WeChat 2 Contents How to best leverage WeChat to reach retail goals 3 Why internet is different in China compared to Success stories European habits and how WeChat is entrenched in 4 Chinese consumers everyday life How WeChat is structured in Europe and key benefits for western brands

Internet as we got to know it: the sum of vertical applications, discovered one by one over time, each one with a clear purpose Vertical needs Ve by native apps by pps Exhaustive Communication by e-mails Entertain by y Face cebook ook Information & Service In by by webs bsite Re Real-ti time communicati tion by by Wh Whatsapp Vo Voice and conference calls by by Skype pe Opinion leadership by Twitter 4

WeChat allows integrated access to almost all digital services… Feed reader Messaging Geolocalization Browser Mobile payments Media player QR code reader Backend with open APIs

… becoming just internet in China 6

As a consequence, WeChat enjoys an extraordinary adoption in the whole Chinese community worldwide, topping more than 846M active users… ...and a smartphone penetration which in China is well above 93% 7

A typical day on WeChat: as our 760M DAILY active users do

CN CNY 2016 8.08 8.08 Bi Billion “hongbao” exchanged on WeChat in a single day by 420 420 Million Million of of pe peopl ple

1 . 0 0 0 . 0 0 0 TR TRANSACTI CTIONS…PE PER MINUTE TE

1 Internet in China and the role of WeChat 2 Contents How to best leverage WeChat to reach retail goals 3 How to use WeChat to attract new followers, inform Success stories and engage them through multimedia contents and 4 finally serve them during their shopping experience How WeChat is structured in Europe and key benefits for western brands

WeChat advanced targeting features allow merchants to effectively reach their audience in China Example Not only in the cities or residences But Real Time LBS (block where the At Attract person is designed on a map) Basic information u Men Social demographic profile u Women Education, marital status u 30+ years old Commercial interests purchase potential Interests and online shopping behaviour u Fashion & Luxury u Travels u Europe Set up of target group based on client target profiles Purchasing power u Medium – High Wheather condition Advanced targeting u High probability to visit Italy, France or UK soon Mobile device

Multiple formats and planning options to meet campaign requirements and engage followers At Attract MOMENTS BANNER

Brand could inform, engage and serve followers on WeChat through the Official Account Customized menu ♦ Multimedia and interactive contents ♦ In Inform & eng engage Interaction required to surf contents ♦ 1-1 chat with followers ♦ …and much more! Example of a sophisticated Official Account

Broadcast messages can unleash the power of editorial plans…without filters: each follower receives them u No Algorithm : “We are a media, hence we have no right to filter what a brand wants to say to a person who chose to follow it u Multimedia contents : It’s not In Inform & eng engage about frequency, it’s all about interest and quality u Limited volumes : communicate only if you really have something relevant to say u 48hours rule : if the follower wants you, then you can tell him what you want

Using WeChat to provide 1-1 customer care via chat has become a common practice Ma Main fe featu atures • Customer care one to one via chat to support followers in their requests • Direct management of the service by a Chinese operator with a 48 hours of SLA per 6 days a week • Configuration and management of keywords to provide automatic answers As Assis ist & & Sel Sell

Selling through WeChat: online… How does it work? Main advantages Own § Direct link to the e-commerce website § Exploitment of an existing asset e-commerce § One-click payment through WeChat Pay § Better visibility of the e- … platform commerce Integration of § Link to the product pages or to the § Exploit JD.com visibility JD.com check--out pages of JD.com § JD.com offers sales support § WeChat Pay is natively functioning services § Mini e-commerce website within the § Integration within WeChat Native WeBoutique account account As Assis ist & & § Management from the platform § Creation of engaging experiences Sel Sell § Personalization of the experience Drive to § Product booking and picking up in § 360° brand experience boutique store experiences § Increase the in-store traffic § Payment through WeChat Pay within the account or directly in store

Selling through WeChat: …offline, in your stores in Europe As Assis ist & & Sel Sell

1 Internet in China and the role of WeChat 2 Contents How to best leverage WeChat to reach retail goals 3 Examples of brands from different industries which Success stories successfully unleashed the potential of WeChat 4 How WeChat is structured in Europe and key benefits for western brands

Selected stories Luxury Fashion Travel Retail 20

Watchmaker: advanced targeting to boost followers adoption Activity and Banner click to follow to increase budget followers base (16% of total budget) Our Role allocation Moments ads focused both on followers acquisition and brand awareness (84% of total budget) § Graphics and 160k Eur invested copywriting review and adaptation Costs Banner click to follow: CPC of 0,15 Euro § Target definition Moments ads: CPM 20 Euro for Tier 1 § Real Time Bidding cities, 13,5 Euro for Tier 2 cities Optimization § Continuous monitoring and reporting Campaign Banner click to follow: 13 days duration Moments ads: 24 days Follower 63k new followers acquired (24% from Acquisition Banners, 76% from Moments) 9M impressions on moments, 100% share of voice on target

Building aspirational e-commerce experiences The entire stock (200 units) Dior, on August 8th 2016 put Through Dior Official on sale on WeChat a special went sold out in a day Account followers could edition of its “Lady Dior” bag customize the bag by Chloé, Michael Kors, MILAN selecting up to three charms to celebrate Chinese Montblanc, Valentino and to plug in and purchase it S.Valentine day other brands have already (4.200 USD retail price) using launched similar activities WeChat Pay

How Caesar hotels delivers an integrated experience from sales to room services through WeChat

Retail: How Selfridges uses WeChat to draw users to its eCommerce platform Selfridges case study Target Gain visibility for both its eCommerce platform and its physical stores among Chinese customers Activities WeChat official account, directly linked with Online Selfridges cross-boarder eCommerce site at editorial level Clear and detailed instructions for Chinese customers about every aspect of making purchases offline or online at Selfridges (e.g., returned goods, taxation, …) WeChat QRcodes strategically positioned Offline within the store to provide interactive contents (e.g., products information, maps, assistance) to acquire new followers

1 Internet in China and the role of WeChat 2 Contents How to best leverage WeChat to reach retail goals 3 Examples of brands from different industries which Success stories successfully unleashed the potential of WeChat 4 How WeChat is structured in Europe and key benefits for western brands

Why western brands fail on WeChat Which issues did your organization faced in its first attempt to approach chinese consumers trhough WeChat? % of respondents 1 u Detached execution 62% 59% u Wrong usage of platform capabilities 45% u Overpriced and poor targeted advertising u Poor targeting 31% u Wrong storytelling 27% u Lack of market research 26% 1 More than one answer allowed 26 Source: WeChat Italy – Digital Retex research, 2016

To do this, we leverage close relationship with local trusted partners to ensure end-to-end support with regards to everything about WeChat Lo Local support and Tencent In Te International Cl Client ex exec ecut ution Bu Business Gr Group Independent, third party agencies Trusted partners Shares needs and WeChat strategy design and execution Provide support to local office targets and partners on procedural and Local accounting, idea generation and technical issues Proposes/ approves management of day-by-day activities targets and planned through a team if English, Chinese, Italian Directly operates advertising actions and French speakers, based in Milan campaigns (targeting and real time bidding) Cooperate on system Deep knowledge of most common CRM, integration activities DAM, eCommerce and retail platforms to Monitors overall quality ensure system integration is properly executed Liaison between Head Quarter and local markets