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Is Weitao the Perfect Mix of Social Media and e-Commerce? #TaoBao

Taobao, the eBay style customer to customer e-commerce strand of Alibaba online shopping, has created its own social app called Weitao designed to give more interaction between buyers and sellers on the platform.  

TaoBaoStanding in direct competition with other apps such as WeChat and Weibo, Taobao are hoping that their new entry onto the social media landscape will help drive yet morebusiness for their shopping site. Weitao allows sellers to have customised pages linking directly to their shopping pages and to post comments and articles to their fans.

Taobao’s release of the mobile app also coincided with shutting down any QR code access for rival WeChat, a movewhich has suggested to onlookers that they are actively waging war on Tencent for mobile access. While still in its early stages, Weitao has potential for Western brands looking to reach a wider audience in China on a selling site such asTaobao.

Taobao is one of the most successful online shopping channels in China. According to Bloomberg Business Week: “Taobao has catered to Chinese preferences for doing business—for example, it’s enabled buyers and sellers to negotiate and bargain on prices.”(http://www.businessweek.com/articles/2014-02-18/the-secret-of-taobaos-success)

taobao_buildingTaobao, with 50% of the market share, towers above Western ecommerce rivals like Amazon who only have around 11%. While a large number of businesses on the site used to besmall, independent e-commerce operators, major brands have had more and more of an impact in recent years.  You can buy almost anything and the BBC recently reported on some of the strange products available from boyfriends for hire to live scorpions in a bag.

One of the problems for brands has been the prevalence of fake products and it’s something the ecommerce giant has only just recently admitted to and decided to take seriously. According to NetNames:  “Alibaba Group has certainly become more visible in recent months and is engaging more with brand owners, trade associations, law enforcement agencies and governments alike. This is good news, but there is still a long way to go to address brand owners legitimate concerns.”

The upshot is that hundreds of Taobao shops are being closed down on a daily basis but this is only the tip of the iceberg as far as well-known brands are concerned. Most debate that simply closing down online shops is not the answer and that more has to be done to close down the factories that produce the counterfeit goods.

For brands that as yet have no official presence in China, the chances are high that their products are on sale on Taobao, either as counterfeits or as goods imported by Chinese entrepreneurs living in the West and using loopholes in the system to make a profit.

With over 5 billion registered users and almost 500 million unique visits a day, it’s no wonder that Taobao is the number one ecommerce site in China and with the addition of the newWeitao app it could be set to become the platform of choice particularly for those brands making their first forays into the country.

Is WeChat the First Choice Social Media App?

is Tencent’s WeChat set to be the app of choice for both business and pleasure?

Wechat 4Its growth has been phenomenal in the last 4 years since its launch, with an estimated 355 million users worldwide and a healthy stake in the social media market. But

According to multimedia journalist Paul Bischoff on TechinAsia: “In China, all online communication converges at WeChat. The four-year-old chat app now functions as text messenger, Facebook, Reddit, Skype, IRC chatroom, Meetup, and Instagram – all rolled into one.”

It used to be that apps like Facebook and Twitter would take care of the personal and those such as LinkedIn would satisfy our business and work needs. With WeChat though, we have an app that is trying to break down the barrier between the two. Business meets social and personal. It works well in China’s social media world and it may well be heading West to Wechatchallenge some of our established platforms.

In China, social capital is a vital prerequisite to success. Whereas people in the West might have one account for their personal life and one for business, in China it is often rolled up into one. And something like group chat is very important to our Eastern colleagues.

Networking groups are big in China

WeChat2WeChat groups have a limit to the number of members. You need special permission to run one that has in excess of 100 people and if you run it, you must be able to moderate the content accordingly. For many Chinese businesses, selecting the right group to follow, and networking through it, can bring success and vital information exchanges.

With all its functionality, WeChat is an ideal platform for a varied range of activities from selling online and settling disputes to running a web style seminar. There are predictions that WeChat is going to overtake even Facebook as the world’s premier social marketing tool.

The benefit of Tencent’s platform for Western brands is that it is possible to categorize people according to their location and gender. More than half its users are aged between 25 and 30 and many are white collar workers who reside in first tier cities. And with business merging into personal with many of its users, this provides a unique opportunity for brands hoping to develop a marketing approach tailored for Chinese consumers.

The problem for brands trying to make their way on this multi-faceted platform is that it’s not quite there yet. There are still challenges in marketing your brand on WeChat.

WeChat

According to Xiaofeng Wang from The Forrester Group: “The information that users share on WeChat is private and can be seen only by personally approved friends; as a result, WeChat is used more as a communication tool for friends to keep in contact. Users are less likely to repost brands’ information massively, as marketers expect them to do on Weibo.”

There are also restrictions on brand accounts for how many messages they can send to their fans. With the government crackdown on luxury items and self-indulgent behaviour, Western brands are still weighing up the options and discovering how best to leverage WeChat as a marketing medium. But the truth is that its growth in popularity across the globe may well make it a primary focus for many years to come.