THE FUTURE IS HERE, LOOK EAST!

WeChat, the brainchild of Chinese technology titan Tencent, is the quintessential messaging application that has transcended its initial purpose of facilitating communication between friends and family.

Boasting over 1.3 billion monthly active users, primarily in China (where it is known as Weixin), WeChat has emerged as a frontrunner in the field of conversational commerce. No other platform exemplifies this concept as seamlessly as WeChat, which has cemented its position as one of China’s most beloved and popular super apps.

WeChat’s achievements in the realm of conversational commerce are largely due to its expansive range of features. In addition to its messaging and calling capabilities, the app incorporates e-commerce, social media and mobile payments, making it an all-encompassing platform for businesses to engage with their customers in various ways, from marketing to sales to customer service.

Official Accounts

Similar to WhatsApp, WeChat also provides official accounts for businesses, enabling companies to engage with customers and offer diverse communication methods. However, WeChat’s official accounts have more robust features, such as mini-programs and mobile payments, making it a more comprehensive platform for conversational commerce.

Mini-programs

WeChat’s mini-programs are essentially small applications that run within the WeChat app. They are designed to be lightweight, fast and easy to use, allowing users to perform specific tasks quickly and efficiently without having to leave the WeChat app.

Companies have developed over 1 million mini-programs, offering a multitude of services to customers, including hotel bookings, food orders, shopping, and gaming experiences.

Mini-programs can be accessed by scanning a QR code or by searching for them within the application. In 2021 mini-programs generated over $400 billion in annual transactions, a 70% increase on the previous year. Foreign businesses that launched mini-programs in the past two years have seen annual transactions increase by over 600%.

Mini-programs are a game-changer for conversational commerce, enabling seamless in-app transactions within the WeChat ecosystem. For example, a business can create a mini-program for selling products, allowing customers to browse and purchase items without having to leave the app. Additionally, mini-programs can be integrated with WeChat’s mobile payment system, allowing customers to make purchases easily.

Starbucks has been successful in leveraging mini-programs for its business in China. Starbucks created a mini-program on WeChat that allowed customers to purchase and send digital gift cards to their friends and family through the messaging app. Additionally, customers could use the mini-program to locate nearby stores and make mobile payments for their purchases using WeChat Pay.

Starbucks has also used WeChat to promote new products and special offers, as well as engage customers through interactive content such as games and quizzes. By using WeChat’s payment system, Starbucks has also been able to facilitate seamless transactions within the app, making it easier for customers to make purchases. Its mini-program has 21.5 million users and more than 30% of its transactions are occurring via WeChat Pay.

WeChat Pay

WeChat’s payment system enables seamless in-app purchases, supporting conversational commerce. This system, called WeChat Pay, is integrated into mini-programs and official accounts, allowing businesses to offer a more convenient and streamlined customer experience.

When a customer makes a purchase, they can use WeChat Pay to complete the transaction without ever leaving the app. It also supports peer-to-peer transfers, mobile top-ups and provides the ability to pay bills, making it a versatile and widely-used payment option in China. With WeChat’s vast user base and powerful payment system, businesses can leverage conversational commerce to drive sales and engage with customers in a more personalised way.

Just behind AliPay, it is the second most popular payment platform in China, with 900 million active users. The service has expanded globally, it is now available in 69 countries and regions and is connected with over 4 million overseas businesses.

In China, WeChat now offers palm payment as an option. Whether checking out in-store, accessing the gym or using the Beijing subway system, customers can complete transactions with a literal “wave of a hand”. It uses advanced palm print and vein recognition to authenticate users and enable seamless transactions. Creepy or cool, you decide.

There is no doubt that WeChat will continue to advance the technology within its payment system, making conversational commerce via its platform even more convenient.

Time to join WeChat?

Not exactly. WeChat is less popular in the UK compared to China due to its limited availability in English and its focus on Chinese users. However, it is still used by some businesses and individuals in the UK who have connections to China, such as Chinese students or businesses with Chinese customers.

Understanding how businesses leverage WeChat can influence your conversational commerce strategy and allow you to capitalise fully when Western tech companies catch up.

While many companies, including Facebook and WhatsApp, have tried to reproduce WeChat’s success, they have not been able to replicate its full functionality and impact. This is partly due to differences in consumer behaviour and regulatory environments.

WeChat’s success can be attributed to its unique combination of social, messaging and e-commerce functionalities. Additionally, it is also due to the specific needs and preferences of the Chinese market, such as the importance of social connections and the prevalence of mobile payment systems.

Parting Thoughts

As more businesses turn to messaging apps to engage with their customers, we can expect to see similar features and capabilities being introduced on other platforms that we are more familiar with. WeChat’s unparalleled success in conversational commerce serves as a guiding light for other companies and provides a blueprint for others to emulate.

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