lpm002 sns in canada and china-riki

The Characteristics of Social Network Service and E-commerce in China LPM 002 – Final PresentationRiki Yao

Content

The Characteristics

Conclusion

Advice

Introduction

Data comparison

Personalization

Highly integrated

Power of minority

Case Study

Introduction

Introduction • The Future of e-marketing is social media

Video Campaigns Wikis

SocialBookmarks

BlogPhotoSharing

SocialNetworking BBS

MicroBlog

Display Text SEM

Mobile SNS

Classified Adware Affiliate

Email

Introduction • American SNS Development

v

2003-2004MySpace

-Anonymity-Casual connection

2004-2006-Facebook


2006-Twitter


Introduction • Chinese SNS Evolution

2008-2009Renren

-Real name-Real connection

2010-2013Microblog (Weibo)


2014-WeChat (Weixin)

-Privacy-Mobility

Introduction • China Social Media Landscape

Only 40% Chinese is online

That is 591Million

People

Source: CNNIC China Internet Development Report


That is the whole

Europe



350 millionOnline video users

464 millionMobile users

598 millionSNS users



26%

28%9%

5%

8%

18%

5%

Video SNS Search GamesEcommerce Other News

21 hoursOnline per week


Introduction • Data comparison

1.3 billion total population 317 million

591 million netizen population 245 million

464 million mobile netizen population 182 million

598 million sns user population 228 million

25 years netizen average age 42 years

45% social media user among population 72%

91% social media user among netizens 67%

21 hours time spent online weekly 23 hours

46 mins time spent on sns daily 37 mins


enjoy

advocate

bond

awareness consider

evaluate

Introduction • American Loyalty Loop

BUY

enjoy

advocate

bond

awareness consider

evaluate

Introduction • Chinese Loyalty Loop

BUY

Introduction • In U.S. only 35% of SNS users have had the experience

of following a brand on social network sites

Source: Stein, P. (2014, Aug). What US Marketers Can Learn From Social Commerce In China

Introduction • More than 33% of users in China who have a brand's

app on their smartphone which they have been loyal to the past half year, while there is only 17% in America

Source: Imagination. (2014, Apr). Chinese Social Media Brief: Overview, SNS Analysis and Key Trends

Introduction • 74% of American users do not know the concept of

“check-in”, and only 3% have used it

Source: Baer, J. (2014, Apr). 11 Shocking New Social Media Statistics in America

Introduction • More than 50% of Chinese SNS users are creating new

content, while there are only 9% in western social network


Introduction • 75% of Chinese consumers leave shopping feedback at

least once a month, while there are less than 20% of Americas

Source: Stein, P. (2014, Aug). What US Marketers Can Learn From Social Commerce In China

The Characteristics

The Characteristics of Chinese model

Personalization Highly integrated Power of minority

The Characteristics of Chinese model• Personalization

• Groupthink• Groupthink is a psychological phenomenon • If put a certain number people into a group, the

members always attempt to avoid conflict when they make decisions, in order to reach an agreement

• Family and work group goals are always above individual needs in Chinese culture. Chinese people are much more easily influenced by groupthink


• Word-of-month• Chinese people are more willing to believe

word-of-mouth rather than traditional advertising, so word-of-month is much more effective.

• According to Paul Lazarsfeld (1955), “word-of-mouth effect was 4 times more effective than personal sales and 7 times than paper media.”


• Maslow's Hierarchy of Needs • The behavior of creating and

sharing content reaches the top 3 of Maslow's Hierarchy of Needs

• Most Chinese B2C and C2C websites have different feedback-reward systems


• In 2013 Coca Cola launched a nickname bottle campaign on Sina Weibo.

• consumers to customize their own bottles

• This campaign saw 20% sales increase compared to the same period the year before.


The Characteristics of Chinese model• Highly integrated

• Integrate the social network system into the e-commerce site

• On Jingdong360, they built forums for every commodity. Consumers can discuss and ask questions, post photos and videos in the products’ detail page.

• Taobao has had its own instant messaging tool “Trade manager” since it was founded, however Ebay still does not have such a function.

The Characteristics of Chinese model• Highly integrated

• integrate e-commerce into the social network system

• With the growth of Weibo, many brands set up their business account on Weibo. Now, about 404,000 companies have their official accounts on this site

• Users can deposit money into WeChat account, scan QR code to get discount info, purchase products, share product photos with friends or leave feedback in friend circle, and then they can get reward from brands



Account introduction

Survey research

Account contact

Account introduction

External links

Followers, Fans, Posts

Focal area

New feeds


Instantmessaging SNS Gaming

E-commerce & Payment LBS / O2O

Office Accounts

Smart Home

Text message

Voice message

Walkie talkie

Video chat

Group chat

Send contents from other apps

Picture exchange

Stickers

Geographic location

Upload posts with text or photo

Browse friends’ updates

Comments/likesShare others’ links

“Look around” to find andtalk with strangers

“Drift bottle” to sendmessage to strangers

Mobile gaming

Check friends’ scores

Invite friends to play

E-commerce

An e-commerce button, directly displaying some products

Merchants sold via brands’ service accounts

Payment

Consumption on WeChat

Consumption on other apps

Scan QR code to pay for purchase on PC website or at online store

Scan QR codes for online payment

Scan QR codes to search for and buy products on WeChat

Navigation using the location friends send to you

Search for discounts and group buying activities nearby

Subscription account

Send followers push notification once everyday Service account

Send followers push notification once a month in a new chat window

Customized menu with up to 15 functions

Sell products within service accounts

Skyworth TV allows users to control their TV through WeChat

Search and pay for movie and drama through iCNTV account on WeChat and syncs them with Skyworth TV

The Characteristics of Chinese model• Power of minority

• KOL (key opinion leaders) and celebrity spokespersons • Very important for increasing brand awareness,

• They are always the dominant figures of the network and shape public opinion by connecting with their followers

• their effects have already been questioned by the Chinese social network marketers

The Characteristics of Chinese model• Power of minority

• Kevin Kelly • "to be a success online, you don’t need a huge

audience. You just need 1000 true fans, who are willing to pay you.“

• Boston Consulting Group • 7% of the customers drive 40% of sales.

Conclusion

Conclusion

• Chinese SNS has shown its unique model and proved its remarkable advantage.

• The integration of SNS and e-commerce in China has made both of them become part of Chinese lifestyle.

• American SNS is still focusing on its simplified function and remains divided from e-commerce

• Most American SNS sites still rely on advertising revenue

Conclusion

• Make your own e-commerce platform for brand-building.

• Let consumers create content for you.

• Integrate social, brand building, and commerce together.

ThanksLPM 002 – Final PresentationRiki Yao

lpm002 sns in canada and china-riki

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