There are plenty of Social Media platforms in China: while a few achieve great success, many succumb to a highly competitive scenario.
Result of its dynamism, it is essential to keep attention on the changes that China faces in the digital world.
From 2 Open, we have prepared a brief introduction about Weibo´s current situation.
Our goal is to give you some tips to fully understand what is going on with one of the biggest Chinese Social Media.
Do not hesitate to contact us for a more thorough analysis!
Weibo is a Social Media platform to produce, share and find out Chinese-language content.
As a leading platform, provides an easy way to express in real time and interact with people and corporations.
Its importance is not only due to its capacity to be an official/unofficial news source, but also because it allows people to express themselves in a public way.
The doomsayers come into the picture
Currently, Alibaba is the biggest Chinese e-commerce company: it provides C2C, B2C and B2B sales services via web portals, plus electronic payment services, a shopping search engine and data-centric cloud computing services.
Three years ago, Alibaba bought 18% stock of Weibo. Since then, several media have speculated that Weibo or even Sina might be acquired by Alibaba in a short time.
Encouraged by the rise of Wechat, many marketers have predicted the fall of Weibo. Well, the latest Earnings report proves they were wrong.
Is Weibo on the way out? Let the Earnings speak the truth
According to official Earnings Report of 2016 Q2 from Sina Weibo, the Net profit of 25.9 million dollars (net revenues of $ 146.9 million) increased 516% compared to the same period last year.
Moreover, Weibo 2016 Q2 data shows the Total revenue of Weibo is 146.9 million, including 127.2 million revenue from Advertising business, value-added services $ 19.7 million for value-added services.
Let’s review the users’ data on Weibo now
Monthly Active Users –MAU- is 282 million, increase 33% compared to the same period of last year. In addition, Daily Active Users –DAU- is 126 million with 36% increase compared to same period of last year.
Is noteworthy that 89% of them are mobile users.
The progress is closely related to their own media advantage
Three years ago, relying on its social communication advantages, Weibo attracted $ 600 million of Alibaba, while became an effective channel for celebrity campaigns, events, marketing and other commercial activities.
After that, Weibo focused on the advertising model. At the end, it decided to put aside Alibaba and manage the business alone.
In 2016 Q1, advertising investment from small and medium enterprises increased 147%. The quantity of SME’s and self-service advertisers reached 830K with 25% increase compared to previous quarter.
In 2016 Q1, investment in small and medium advertising revenue grew 147%, the number of SMEs and self-service advertisers reached 830,000 and a 25% increase the previous quarter.
Why both SMEs and big brands value Weibo a lot?
Both leverage it as an important channel frequently, specially because:
- Increase of traffic and users with 282 million MAU
- Optimized Algorithm of Ad Platform
- Active Internet Celebrities
The outbreak of short videos
We should add that speaking of its development path, the outbreak of short videos is also a milestone of growth of Weibo.
According to the 2016 Q2 Earning report, the playback amount of short videos on Weibo has increased 200%.
Meanwhile, the Internet celebrity economy is rapidly booming. Based on short videos, live-streaming broadcast and e-commerce, Weibo occupies the core position of social media with its incredible social power.
Margin improvement for future
The operating leverage will keep being prominent in the future. Based on the non-GAAP, the operating Margin rate of Weibo was 23.6% in the second quarter.
It is expected that the Weibo´s operating Margin rate could reach 25.2% in the third quarter, 23.4% in 2016 financial year, and 28.7% in 2017 financial year.
After seven years, Weibo proves to the world its strength and influence.
Do you still think Weibo is on the way out?
Our Digital Marketing and Ecommerce Agency have the experience of a team dedicated to know in depth the Chinese Social Media.
If you are looking to push your sales in China, do not hesitate to contact us.
Moreover, if you are interested in receiving to your mail the latest trends of Chinese Social Media, please suscribe to our monthly Newsletter!
This article has been edited by Paula Vicuña, from 2 Open.
Over the last fifteen years, Chinese Government has experienced an increasing attention on the possibilities that Latin American market can provide to them.
This article seeks to shed light on the current situation between both regions, and their future possibilities.
According to Chinese policy, in recent years the country has developed a new global strategy: Africa, Latin America and the Caribbean have become as key-players on its rise to the international scene.
Since 2000, China has settle its action on bilateral free trade agreements and loan commitments. Despite its evolution, the role assumed by China is yet far from a real partnership with Central and South America.
In future, commerce and investment will be the basis for establishing a lasting partnership and a socio-economic development in manufacturing, labor, services and financial support.
Which are the main factors that define their relationship?
The relationship is based on three basic purposes:
- Political Relations:
China has currently become a permanent observer in the Organization of American States and a member of the Inter-American Development Bank. The country also participates actively in the Economic Commission for Latin America and the Caribbean.
In addition, China has signed free trade agreements and institutional arrangements with some of the regional countries.
- Economic Relations:
China plays a leading role in the future economic scene in the region. Latin America exports to China are raw materials, such as minerals, ores, oil seed, meat, cooper and soybeans.
Economic Relations are mostly conducted by Chinese Public Sector: Trade, Investment and Financing enhance the mutual cooperation and the collaboration is constantly increasing.
The Chinese investment effort has been particularly strong in two important fields: Energy and Infrastructure.
- Cultural Relations:
Chinese cultural expansion is closely linked of their latest conception of International Relations based on pragmatism and soft power.
In recent years, many Confucius Institutes have started their activity in Latin America, but also Spanish language has experimented a huge growth in China: educational and cultural exchanges are on the rise.
Is there ROOM ENOUGH for a common trade based on high value-added?
Latin America suffers from a scarce innovative effort, while China struggles to turn its economic system into an innovation model, highly rooted in the high value-added.
ICT-based services, Information technology and also Ecommerce are expected to grow in Latin America. The Global trends in Crossborder Ecommerce will be a challenge to the international integration of Latin America and a great opportunity for MSMEs.
Are you already familiarized with Crossborder Ecommerce and B2B, B2C, C2C, B2G and C2B Models? In search of an Ecommerce Consultancy Agency?
From 2 Open we can help you develop your business and to boost your company into International Sales.
Nowadays, we all are very well aware of the importance of Ecommerce on current business.
E-Commerce has been a great revolution for companies and customers, helping the exchange of goods and services without geographical barriers via Internet.
With most of famous brands selling via e-Commerce and the development of B2B, B2C and C2C markets, the last revolution has come to stay: the Mobile Commerce or better known, M-Commerce.
But, What do we mean when we talk about M-Commerce?
The increase of the usage of smartphones and tablets and the growth of its capabilities, lead to a higher percentage of the population using technological devices to purchase their goods or services. According to the increase of the demand and in order to take advantage of this new trend, Companies have already identified the need to adapt their ways of selling to the portable devices.
China, the biggest consumer via E-Commerce country and a technologically advanced market, is a good example to put into consideration: the Retail and C2C ecommerce sales have grown from the 9% to the 55.5% since 2013.
This information show us that nowadays, most of the C2C Chinese customers prefer to use the mobile device than their PCs or laptops.
Omnichannel Marketing, What´s its purpose?
At the same time, to E-Commerce has joined a new feature: the existence of the multichannel approach to sales, or “Omnichannel”.
This channel is looking for the continuous shopping experience of each customer. The aim of the Omnichannel Marketing is offering a continuous experience to the user, independent from the device or channel chosen.
In practice, this leads to a complete integration between phones, tablets and computers and it requires the combination of an anthropological and technological strategy in approaching the users in a smarter way.
From the combination of all this, arises the U-Commerce concept.
What is U-Commerce or Ubiquitous Commerce?
If we simplify, we would say that we are talking about U-Commerce when E-Commerce is based in the customer experience.
The user must be in the center of all Companies’ strategies. Those Companies using U-Commerce must be able to provide personalized service to their clients from the information they get from mobile devices and PC-s.
The keys are: customizing and navigation experience created in cooperation with the User.
How is this possible?
It is obvious that the technological development is responsible for this change and makes necessary to pay attention to the internal customer databases.
Companies must try to find out common interests between potential clients who visit their EShops, considering each potential customer as unique and with their own preferences and priorities.
Efforts should be directed to avoid high rates of leads who finally give up navigating in the last purchasing phase, and reach around 60-70%.
This is the crucial reason for companies to invest their efforts and resources in understanding the customers and their behavior: to boost sales.
A lack of privacy: How companies use data?
U-Commerce uses personal information in order to provide a personalized service. A big number of customers feel disrespectful that a company can get their personal information and manage it as they want. Therefore, we must emphasize the benefits that the data can bring to the user and treat delicately the data we are able to collect.
Times are changing and the number of E-Commerce consumers is increasing exponentially and also the M-Commerce is growing very fast.
It’s important to face it and consider user’s needs, their preferences and desires. So companies must rechange strategies and adapt to the new eCommerce “revolution”.
Are you thinking about improving the user experience and exploit the advantages that the use of Online Marketing gives us?
Come to us, We are expecting you!
This article has been edited by Paula Vicuña, from 2 OPEN.
From the association of Tencent –owner of the biggest social platforms in China- and JD.com –the leading online direct sales company in the country-, has emerged a new conception of Marketing and Brand Advertising.
In 2016 in Beijing, both released a plan based on Ecommerce marketing service called “J&T Plan”.
The new policy was aimed to provide a tool to accurate a better portrait of the potential user, and improve the interaction with the consumer.
As a result, users data has become extremely valuable for any company:
Knowledge is power, more than ever.
What are their main Goals?
To reach its purpose, they have focused on three main objectives to strength its business on mobile and Internet, such as:
- Mobile access points
- Traffic support
- Ecommerce activities
Their desire to turn the user into the protagonist of the new Marketing, has launched a new approach based on three main ideas:
- Multi-dimensional user insight
- Effectiveness analysis
- Precision target audience
What do they want in Return?
Not only a commitment to the future and an advantage over its competitors, their relationship also give them some specific advantages:
JD.com obtains a stake in Yixun, PaiPai C2C marketplace businesses, logistics personnel and assets and QQ Wanggou B2C.
In order to provide a better online shopping experience, they will also work together on providing solutions to online payment services and an overall digital marketing solutions.
If you are thinking on improving your company services, before starting a Business and Marketing Plan you should take in consideration some basic recomendations:
Build a well-aimed portrait of the users, improve brand experience with the client, and enhance technological tools to achieve it, have become the three key factors to consider on any approach to potential customers, and the best guarantee for the future of your company.
From 2 OPEN we have conformed a team capable of responding to new challenges and specialized on Business Intelligence. We can help you to deal with the new Marketing and Ecommerce trends.
Come with us. Together we will reach your company goals.
This article was edited by Paula Vicuña from 2 OPEN.
Interested in the B2B market? This article is for those currently interested in launching a B2B ecommerce initiative!
Following our instruction of How to Sell B2B Online in China, from 2 OPEN we will guide you on the most famous Chinese B2B platform –1688.COM, to obtain leads for your company, giving you the basic information to learn how to deal with traffic.
In order to develop your sales in a business-to-business, it is important to analyze which actions can be done to improve your company results.
From 2 Open, we have listed for you some of the key-factors to make it easier your landing on B2B. With our help, your company will take a huge advantage of this big chance on Chinese market!
WHAT IS 1688.COM?
Alibaba is currently the biggest Chinese eCommerce company. It dominates the Chinese online marketing in various aspects and includes on its services: online transactions, payments, promotion, service and communication.
In order to focus on B2B market, Alibaba created a portal for domestic B2B trade in China, 1688.COM. In 2013, 1688.COM launched a direct channel that is responsible for $30 million in daily transaction value.
After 14 years development, now Alibaba leads B2B into the full digitalization in China and it is responsible of the great revolution B2B has experienced in China.
HOW TO USE 1688.COM?
As the domestic B2B portal in China, 1688.COM has millions of vendors but does not support English version for foreign users.
To provide an accurate sketch for you and due to its importance, we have chosen Solostocks as the example below:
- First, Go to the homepage of 1688.COM:
- Second, Create Solostocks’s online shop in 1688.COM
After the registration, you can access it with Solostocks.1688.com.
- Third, Optimization:
When the online shop settles down, we can optimize the traffic through strategies within Solostocks.1688.com. The internal optimization of the online shop could bring your company more traffics and leads.
From 2 OPEN, we suggest you six strategies to apply to leads generation, such as:
- Product release:
In proper way, product release can fulfill the product category and increase Page View (PV).
Product quantity is not the key point for B2B selling but is the product category, title and description. Remember the more detailed the information is, the more opportunities for searching there will be.
- Shop decoration:
Shop decoration is aiming to provide a good visibility to viewers: useful information in organization will fully convey to viewers and improve the CTR also display structure has to be recognizable and practical.
Key modules include logo, navigation, introduction, display, share/favorite, communication etc.
- Text content:
Text content includes all the product descriptions and introductions.
It is crucial to pay attention to Key-words combination: they will be the best SEO to boost traffics: the more key words are recorded, more exposures there will be.
Refined and targeted content can also lift the ranking and improve the user experience.
- Tool assistance:
Tool assistance from 1688.COM’s back office can facilitate Solostocks.1688.com promotion. It contains various functions to assist the system management, which provides a better performance in internal optimization.
Tools for managing product, KPI, finance, transaction and marketing would optimize the operation.
Here we explain you three detailed functions which we consider especially important:
By the way, there are a plenty other tools provided by 1688.COM that you can find. You just need to discover them all and find the one which better suits you!
- Secondary platform:
The secondary platform of 1688.COM is called baike.1688.com. It is professional and dedicated to provide customers the solutions and commercial knowledge in business by means of questions and answers to solve business problems.
In this business platform, users can get connections and share their experiences. Do not forget to:
– Use proper key words to find out the related questions
– Answer professionally to promote Solostocks.1688.com
– Enhance the account activity and develop the business
- Paid service:
Paid service in 1688.COM can effectively promote the brand and product in bidding ranking.
The most popular ways of SEM in 1688.COM are WXB (pay-per-click) and Diamond Booth (slideshow on the homepage). Both of them strongly facilitate the brand and product promotion in direct way.
Actually, 1688.COM provides various means for sellers to promote its sales. Here we summarize some main tips to implement the internal optimization in a comprehensive way to obtain the best results!
- Information sufficiency
Make sure the sufficient and high quality information can be provided to browsers.
- Effective transmission
Transfer the product or brand information in all directions to browsers accurately and immediately.
- Qualified images
High definition pictures can highlight the brand quality also beatify the online shop.
- Customer service
Keep the effective communication and CRM during the whole sales process.
- Ranking optimization
Paid service can provide the better performance in brand exposure by bidding ranking.
If you are interesting in doing B2B in China through a more native approach, 1688.COM would be the most effective and direct way to help you face to the Chinese customers.
Keep checking our blog and contact us if you have any questions. 2 OPEN will happily assist you!
This article was edited by Paula Vicuña.
Last week we were in an event in Valencia organized by our partner, the Valencia Chamber of Commerce, in which we shared our knowledge about the B2B online business development in China in front of a full auditorium.
We were glad to share the “stage” with 2 of our best clients:
– Amvos Consulting: leading digital marketing agency in Europe and South America
– SoloStocks: best B2B online platform in Spain currently present in over 12 countries in Europe and South America
And that is what we talked about:
– WHICH ARE THE MAIN ONLINE B2B PLATFORMS IN CHINA?
As we can see in the top image chart, the clear winner in the B2B Chinese market is Alibaba with its domestic platform 1688.com which absorbs 37.78% of the market share as per April 2016, followed far behind by Global Sources (5.45%), HC360 (3.92%), Made-in-China (2.23%) and DHGate (1.77%).
– Alibaba.com/1688.com: Alibaba.com is the leading platform for cross-border wholesale trade, serving millions of buyers and suppliers around the globe and 1688.com is the main B2B marketplace for domestic China trade among small and medium enterprises.
– Global Sources: It is a leading B2B media company and a primary facilitator of trade with Greater China. More than 1 million international buyers, including 95 of the world’s top 100 retailers, use these services to obtain product and company information to help them source more profitably from overseas supply markets and generate sales leads and win orders from buyers in more than 240 countries and territories.
– HC360: is the third most important domestic B2B e-commerce operator in the People’s Republic of China. With its professional information services and advanced internet technologies, it has established a reliable demand and supply platform for SMEs, and has been providing them with complete business solutions over the past 22 year.
– Made-in-China: was developed and is operated by Focus Technology Co., Ltd. Focus Technology, is a world leading B2B portal, specializing in bridging the gap between global buyers and quality Chinese suppliers.
Since China’s policy of reform and economic openness, the B2B traditional model unlocked unprecedented levels of growth and development. With the Internet booming and the transition of trade models taking place, most industries have enrolled in the online B2B revolution to develop their brand. For this reason, hundreds and hundreds of new B2B platforms are born trying to differentiate from each other and creating that way an unparalleled war. And we see new attempts to get to the top of this pyramid, day in and day out, as they all want to get a piece of the huge cake.
– BUT, WITH SO MANY OPTIONS… HOW CAN I CHOOSE THE RIGHT PLATFORM?
We list for you the key factors that should be taken into account in order to select the best platform for your brand to sell your products in a business-to-business model in China:
– Establishments costs: Lower implementation costs through simple installation and integration and unproblematic expansion options. The vast majority of wholesale online trading platforms in China are “free” to use. You can create your own shop and list your products. That way you have your own B2B storefront in China; but how will your products get noticed within the others? All these places provide different visibility packages. Call it gold member, golden supplier or whatever other name you can imagine; the important thing here is to compare these packages and what is exactly what they offer.
– Volume: What is the number of suppliers and competitors? What is the traffic volume generated in the platform? In this area, 1688.com is the clear winner from both sides. Anyway, there are also other vertical platforms that might be worth checking.
– Chinese partner: In order to create a shop and list your products in any Chinese domestic B2B platform, you will need to go hand in hand with a Chinese partner as you cannot use your foreign business licence to sell products within greater China. Here it appears the classic dilemma: Chinese partners are usually very opaque and don’t like to share any kind of information. 2 Open, as a Chinese and Spanish company, can be the right Chinese partner with modern European-style management and creates a totally transparent relationship with its customers. We want to succeed with you and not the other way around.
– Promotional tools: It is important to analyze which actions can be done in order to get more traffic to your shop. The most of them offer performance marketing actions in a CPC or CPM model, both for keyword optimization and display actions. The prices are usually high and a study should be done to assure that the ROI is the right one.
In 2 Open, we usually recommend to do a market research that can lead us to take the best informed decisions: channel/s, range of prices, target audience, marketing budget and promotional efforts, potential return of investment, etc.
In another post we will show you how to optimize traffic within 1688.com to obtain more leads, so keep checking our blog and contact us if you have any questions. 2 Open can help you succeed in the Chinese B2B online world!