The Unignorable Chinese Market: Unlocking Weixin's Potential for Business Growth
CANNES, France, June 25, 2023 /PRNewswire/ -- Since 2019, there has been a significant acceleration in the digitization process of the Chinese consumer market, driven by changing consumer behaviors and market dynamics. This transformative shift has further intensified in recent times, creating new opportunities and challenges for brands to adapt and thrive in the digital landscape.
Reconnecting after three years, Tencent Marketing Solution made a remarkable presence at the 70th Cannes Lions International Festival of Creativity, where Zeus Jiang, Corporate Vice President of Tencent, joined industry leaders in a discussion on Long-termism in Digital Marketing on June 20th. The discussion emphasized the significance of digitization and scientific marketing for sustainable brand operations.
Kiki Fan, General Manager of Industrial Sales Operations at Tencent Marketing Solution also delivered a keynote speech entitled "China's Digital Market: A Growth Roadmap" on June 21st, where she shared invaluable insights from years of marketing expertise in the Chinese market. Meanwhile, Tencent Marketing Insights (TMI) collaborated with Boston Consulting Group (BCG) to unveil the "A New Chapter to Digital Future - 2023 Report on Digital Trends of China's Luxury Market," providing profound analysis and predictions. Tencent Marketing Solution also utilized the occasion to enhance its Joint Business Partnership (JBP), reinforcing its collaborative efforts with partners as part of its ongoing commitment.
Industry Leaders Explore Long-Termism in Digital Marketing:
Insights from Zeus Jiang and Prominent Advertising Figures
On June 20th, Zeus Jiang, Corporate Vice President of Tencent, participated in a discussion organized by "Modern Advertising" media alongside Zhang Guohua, the president of the China Advertising Association and the global vice chairman of the International Advertising Association, and Dai Lijuan, the editor-in-chief of "Modern Advertising." The discussion centered around the concept Long-Termism in Digital Marketing. Zeus Jiang said: "On the one hand, brands should focus on the digitization of commodity assets and crowd assets, leveraging technology to enhance the recommendation efficiency and optimization capabilities of advertisements. On the other hand, brands can utilize scientific marketing to fully leverage Tencent's multi-traffic scenarios, effectively linking product characteristics and desired outcomes to achieve sustainable long-term operations."
Social Commerce Innovation
Seamlessly Connecting with Consumers through Weixin Brand.com 2.0
"Weixin has become brand zone areas to distribute useful information to their customers. Through friend recommendations, article browsing, video watching, information searching, product purchases, and loyalty programs, we are redefining the new online customer journey for our clients, and forging a deeper connection with their customers," explained Kiki Fan, General Manager of Industrial Sales Operations at Tencent Marketing Solution. Today, consumers increasingly seek brands that align with their values, making effective communication between brands and consumers crucial. Weixin Mini-Programs have emerged as a space for explosive growth and the evolution of Brand.com 2.0. Data reveals that in 2022, Weixin Mini-Program sales reached trillions RMB of transactions, experiencing a remarkable 460% increase since 2019. Global brands have established official flagship stores and customer service centers within Weixin Mini-Program, seamlessly integrating social elements with Tencent's robust service ecosystem. This innovative approach represents a new paradigm in social commerce, paving the way for customized brand management in China's digital era.
To support brands in their marketing endeavors, Tencent Marketing Solution has introduced an intelligent tool called RACE. Leveraging on various data from its diverse platforms, RACE provides valuable insights into science-driven marketing strategies. These insights guide brands in optimizing ad placement and maximizing marketing efficiency.
Resilient Growth in China's Luxury Market Spending
Digital Innovation Brand Equity and Sustainable Growth
To help luxury brands harness the potential of the Chinese market, Tencent Marketing Solution organized a press conference themed "A New Chapter to Digital Future" on June 20, unveiling the 2023 Tencent Luxury Report and sharing valuable insights and effective strategies for luxury brand marketing.
In today's ever-changing digital landscape, where consumer-brand interactions are increasingly digitalized, it's crucial for brands to elevate their digital marketing strategies. "Over the past three years, Weixin has introduced a lot of innovative advertising formats to improve the impact to our customers. Moreover, our intelligent data tools enable us to assist our clients in measuring the extent of this impact and other relevant metrics," said Ms. Fan.
The report points out that the Chinese market has fully recovered and demonstrated strong resilience. It is estimated that luxury spending by Chinese consumers is expected to grow by 15-20% and reach 550 billion RMB by the end of 2023. Veronique Yang, BCG Managing Director and Senior Partner, said, 'The underlying forces behind luxury spending are the upper middle class and affluent consumers in China. We find that despite the ups and downs in the macro environment, this group of consumers remains relatively intact, and the luxury experiences in China are almost on par with the international markets right now.'
The thriving digital ecosystem is one of the key drivers behind the strong performance of the Chinese market. Lin An, BCG Managing Director and Partner, emphasizes the importance of understanding the key consumer journeys of each brand and the role of diverse touchpoints. He said: "We need to know exactly what the key consumer journeys of our brand are, what the role of all the diverse and complicated touchpoints is, how to allocate resources, and what kind of products and services to provide. We believe this group of consumers is the future driver of growth in China, and capturing and activating them will pose challenging questions for brands."
Regarding the catering of consumer demand for digitalization and the business needs of brands, Dan Shu, Head of the Luxury and Beauty Goods Industry at Tencent Marketing Solution, emphasized the importance of focusing on brand assets for the long-term development of luxury brands. He said: "We realize that we should focus more on brand asset over just sales volume by promotions, so we are doing the sustainable work to formulate sustainable strategies for luxury brands within the Tencent ecosystem." To establish brand equity, various approaches such as festival marketing, event marketing, and youth activation are adopted. Brands can leverage Weixin Mini-Program, paid traffic, Weixin Search, and travel retail to drive business growth. George Xie, Head of the Luxury and Beauty Goods Industry Planning at Tencent Marketing Solution, highlighted the impact of the digital wave on luxury consumption. He said: "Under the development of digital wave, the transformed online channels, evolving consumer behaviors and innovative digital marketing strategies have jointly shaped a new luxury consumption experience."
Global Joint Business Partnership Upgrade
Empowering Brands for Sustainable Growth
During the Cannes Lions International Festival of Creativity, Tencent Marketing Solution engaged in extensive discussions with its four strategic partners, GroupM, Publicis Groupe, Omnicom Media Group, and Dentsu, resulting in an upgrade to its global Joint Business Partnership. Ethen Zhang, Deputy General Manager of Channel Sales Department, Tencent Marketing Solution, emphasized the collaborative potential. "With Tencent's product ecosystem and our partners' global client network, we have the opportunity to deepen our collaboration in areas such as integrated marketing strategies, content partnerships, leveraging marketing science and advertising technology, and more. Together, we'll deliver sustainable solutions that truly make a difference for our esteemed clients."
SOURCE Tencent
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