Why did succeed in China?What is its future?

The reasons behind the success of WeChat in China.

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The opportunity that WeChat capitalizedGrabbing a hefty market share in 2012 would make WeChat invincible

Frustration towards SMSAs mobile users grew boredand frustrated by the limitationsof SMS, a new kind of internetbased app sprouted globally

Massive QQ user baseWeChat simply needed a QQaccount – which hundreds ofmillions of Chinese peoplealready had

China’s Internet RegulationsThe Chinese govt. had blockedGoogle, Facebook, Twitter,YouTube, WhatsApp and anypotential competitor in China

China’s Potential NeglectedMost foreign companies failedto see that China could be byfar their biggest battleground inthe mobile revolution

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How WeChat dealt with potential competitorsWeChat battled with everybody and won against everybody

Rolled out features quicklyWeChat rolled out on-demandfeatures on an unimaginableschedule. Every global successfulapp was integrated into WeChat

China’s answer to TinderWith the growing popularity ofTinder, WeChat introduced a“Shake” feature to find nearbyusers

Diversified into PaymentsWith mobile payments introducedin 2013, WeChat quickly becamemuch more than just a simpleway to talk to your friends for free

The sole competitor blockedLine partnered with Chinese techgiant Qihoo, but did not have a firstmover advantage, and also wassoon blocked by the govt.

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WeChat became the One App for EverythingBundled every possible innovation into one app, making it sticky

§ Split bills using GoDutch§ Send e-Ang Bao on festivals§ Buy F&B from players like Ele.Me§ Make payments with WeChat Pay§ Book a taxi using integrated Didi Kuaidi§ Find exciting deals using integrated Dianping§ Get your laundry picked up by players like Edaixi§ Transfer Bitcoins and other Blockchain currencies§ Read media, brands and celeb updates on the go§ Manage your wealth using integrated Tencent's fund§ Browse the newest car models and configure a new Audi§ Compare retail vs online prices using integrated barcode scanner§ Make video calls, share moments, voice chat and customize emoticons

The functionalities of13+ separate appsintegrated into one

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WeChat grew to become Too Big To FailUser Adoption is critically important for internet businesses

§ Too big to fail - WeChat grew from195m monthly active users in 1Q2013 to697m active users in 4Q2015, making itdifficult for other players to outshine.

§ Analytics - The rich data that WeChatcollected from its user base allowed it toengage in advanced analytics and offertargeted personalized services.

§ Optimization - With a steady growth inmonthly active users, optimizationopportunities were limitless. 6

What does the future look like for WeChat in China?

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Future of WeChat in ChinaWeChat is here to stay! Growing, cutting edge, dynamic and sticky

"WeChat is more like a browser for mobile websites, or a mobile operating system complete with its own proprietary app store"- Andreessen Horowitz“You need five or six engineers to make iOS or Android apps but just two to make WeChat apps” - TechTemple"WeChat’s future depends on how well it deals with the explosion of information on the app" - iMedia

~10% MAU growth QoQ Rich Data & Innovation Updates ~ every month ~ Infinite features, sticky!

Thought Leadership

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Having conquered the domestic market, WeChat realized the large potential of international markets and expanded globally.

Why did WeChat fail in international markets?

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Why WeChat failed internationallyWeChat ventured internationally, but failed to garner user adoption

Absence of Data, Features Absence of Partnerships

The global version is only a pale shell of the Chinese version

Could not negotiate thousands of relevant global partnerships

Sandboxed: No Continuity

Does not allow you to share pictures on other platforms

Poor Localization, No Dev

Absence of Intl’ localized emoticons. Impossible for foreigners to develop

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Barriers for WeChat to further compete internationallyThe global social media market is a crowded oligopoly

§ Market Entry - It was difficult forWeChat to enter a crowded oligopolisticmarket alone from scratch.

§ Market Share - WhatsApp andFacebook Messenger held the largestsocial media market share globally, thatwas ~3x that of WeChat in numbers.

§ Customer Analytics - Global socialmedia channels had already collectedbillions of data points, personalizing theirservices for customers.

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Strategies for WeChat to win in international markets.

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How WeChat can win internationallyStrategic Alliances, M&As and App architecture redesignStrategic AlliancesSiri Google

Integrate, leveraging local specific functionalities and partnerships

Open the Sandbox

Enable Interaction, capitalizing market leaders’ market share

Open to foreign Devs

Open foreign app development, increasing adoption and demand driven customization

Acquire local market research

Perform continuous Customer Analytics on local historical data to personalize services

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Thank You.