The world’s largest Starbucks just opened on Nanjing Road, Shanghai in December last year. It’s a rare Western-World Goliath in the Chinese market right now, a market that is complicated even for the best in the industry. Asos, a world renowned English online fashion and beauty store, exited the Chinese market and lost 10 million pounds after three years of headaches and learnt the hard way that the Chinese market is a completely different beast.
How did the brand gain prominence in a market known for its sophisticated taste of teas?
It’s all thanks to WeChat Pay.
Starbucks became a strategic WeChat Partner, and first started accepting WeChat Pay since late 2016, and in the first quarter from the implementation date, WeChat Pay achieved an amazing feat. The digital payment provider accounted for 29% of all Starbucks’ transactions, says Belinda Wong, CEO of Starbucks China.
WeChat single handedly elevated the Starbucks experience to one of convenience, both for customers and the 2,800 stores in China. Sales for Starbucks China grew 7% in the first quarter of 2017, showing the strength of the strategic partnership with WeChat.
WeChat will also be working with strategic Australian WeChat Partner Merchants to both increases WeChat’s service offerings in Australia, and provide access and drive traffic and spend in-store.
WeChat’s 2018 Lunar New Year Partner Merchant campaign in Australia
Partner Merchant Red Packets
WeChat has selected key Australian WeChat Partner Merchants for the implementation of these campaigns. A custom Red Packet QR code will be sent to the selected Partner Merchants which will be displayed in store (this campaign is only for bricks and mortar stores).
Any WeChat user (yes – even if they have not transacted or bought anything from the WeChat Partner Merchant) can scan the QR code and be gifted instantly with a Red Packet from WeChat directly. The amount in each Red Packet is random, and WeChat Users will receive amounts up to 2018RMB (as of 24th January 2018, an AU$ equivalent of $393.89).
WeChat Users have to use the gifted Red Packet within 3 days (please refer to WeChat for more T&Cs) and can only use it for transactions above 30RMB (as of 24th January 2018, an AU$ equivalent of $5.85) with the Partner Merchant. Each user can claim an unlimited amount of Red Packets during the campaign period of 1st February 2018 – 28th February 2018, but can only claim a new Red Packet after they use the existing Red Packet. Effectively, one user can only hold on to one Red Packet at any one time, and can only scan for a new Red Packet when the previous one has been used. The Red Packets has to be exclusively used at the Partner Merchant’s bricks and mortar stores.
Partner Merchant Coupons
Tencent (WeChat’s parent company) is also implementing a separate campaign to drive spend with Australian WeChat Partner Merchants, during the key Lunar New Year trading period of 1st February 2018 to 28th February 2018.
Users will receive coupons of 80RMB (as of 24th January 2018, an AU$ equivalent of $15.63) for every WeChat Pay transaction with selected merchants above 800RMB. This 80RMB coupon will automatically be used in the next WeChat Pay transaction over 300RMB (as of 24th January 2018, an AU$ equivalent of $58.51).
WeChat Users can receive a maximum of 3 coupons each during the campaign period (please refer to WeChat for more T&Cs).
WeChat Users who use Shanghai Pudong Development Bank (SPDB) bank card for their WeChat Pay transactions, will also receive an instant 30RMB discount on any payments over 800RMB. This (SPDB) offer is on top of the existing Lunar New Year promotions.
What you must know about WeChat
WeChat received approximately 29% of total time spent in mobile apps in China on an average day in April 2017, according to data in Mary Meeker’s 2017 Internet Trends report.
WeChat statistics as of November 2017
WeChat Pay total monthly social payment transactions: 23% year-on-year growth
WeChat Pay total monthly offline commercial transactions: 280% year-on-year growth
Average daily logged in users in September 2017: 902 million
Monthly Active Senior Users aged 55-80 years old: 50 million
Approximate number of messages sent daily: 38 billion
Approximate number of voice messages sent daily: 6.1 billion
Approximate number of connected calls daily: 205 million
Approximate number of videos posted daily in WeChat Moments: 68 million
Active daily WeRun users: 115 million
Number of monthly active Official Accounts: 3.5 million
Approximate number of WeChat users in Australia: 2.5 – 3 million
What are WeChat Partner Merchants and how can my business be one?
WeChat selectively partners with well performing Australian WeChat Pay merchants and collaborate with them to build WeChat Pay friendly zones in Australia, and ultimately the use of WeChat Pay in Australia.
This partnership is a win-win situation for the appointed Partner Merchant as well. Once selected to be a WeChat Partner, your business will benefit from WeChat’s amazing reach, as it will help market your campaigns and amplify your brand on its many channels, and increase your visibility in the Chinese-speaking space.
Appointed WeChat Partner Merchants can leverage on these custom WeChat’s Lunar New Year campaign to drive traffic, encourage spending, drive incremental sales for your business. Our team will help install all required QR codes for these Lunar New Year campaigns and your business can benefit from WeChat’s marketing prowess and investment.
Tencent’s plan for WeChat’s 2018 Lunar New Year campaign
Tencent and WeChat’s campaign and activations for the 2018 Lunar New Year Campaign in Australia includes Digital Red Packets (Hongbao) and WeChat Pay Coupons.
Market your business and be Chinese-ready with CNPay. To find out how you can enable WeChat Pay for your business, contact us.