Lpm002 SNS in Canada and China-Riki

The Characteristics of
Social Network Service
and E-commerce in China
LPM 002 – Final Presentation
Riki Yao

Content
The Characteristics
Conclusion
Advice
Introduction
Data comparison
Personalization
Highly
integrated
Power of
minority
Case Study

Introduction
• The Future of e-marketing is social media
Video
Campaigns Wikis
Social
Bookmarks
Blog
Photo
Sharing
Social
Networking BBS
Micro
Blog
Display Text SEM
Mobile SNS
Classified Adware Affiliate
Email

Introduction
• American SNS Development
v
2003-2004
MySpace
-Anonymity
-Casual connection
2004-2006-
Facebook
-Anonymity
-Casual connection
2006-
Twitter
-Anonymity
-Casual connection

Introduction
• Chinese SNS Evolution
2008-2009
Renren
-Real name
-Real connection
2010-2013
Microblog (Weibo)
-Anonymity
-Casual connection
2014-
WeChat (Weixin)
-Privacy
-Mobility

Introduction
• China Social Media Landscape
Only 40%
Chinese is online
That is
591Million
People
Source: CNNIC China Internet Development Report

Introduction
That is the whole
Europe

Introduction
350 million
Online video users
464 million
Mobile users
598 million
SNS users

Introduction
26%
29%
9%
5%
8%
18%
5%
Video SNS Search Games Ecommerce Other News
21 hours
Online per week

Introduction
• Data comparison
1.3 billion total population 317 million
591 million netizen population 245 million
464 million mobile netizen population 182 million
598 million sns user population 228 million
25 years netizen average age 42 years
45% social media user among population 72%
91% social media user among netizens 67%
21 hours time spent online weekly 23 hours
46 mins time spent on sns daily 37 mins

enjoy
advocate
bond
awareness consider
evaluate
Introduction
• American Loyalty Loop
BUY

enjoy
advocate
bond
awareness consider
evaluate
Introduction
• Chinese Loyalty Loop
BUY

Introduction
• In U.S. only 35% of SNS users have had the experience
of following a brand on social network sites
Source: Stein, P. (2014, Aug). What US Marketers Can Learn From Social Commerce In China

Introduction
• More than 33% of users in China who have a brand's
app on their smartphone which they have been loyal
to the past half year, while there is only 17% in
America
Source: Imagination. (2014, Apr). Chinese Social Media Brief: Overview, SNS Analysis and Key Trends

Introduction
• 74% of American users do not know the concept of
“check-in”, and only 3% have used it
Source: Baer, J. (2014, Apr). 11 Shocking New Social Media Statistics in America

Introduction
• More than 50% of Chinese SNS users are creating new
content, while there are only 9% in western social
network

Introduction
• 75% of Chinese consumers leave shopping feedback at
least once a month, while there are less than 20% of
Americas
Source: Stein, P. (2014, Aug). What US Marketers Can Learn From Social Commerce In China

The Characteristics of Chinese model
Personalization Highly integrated Power of minority

• Personalization
• Groupthink
• Groupthink is a psychological phenomenon
• If put a certain number people into a group, the
members always attempt to avoid conflict when
they make decisions, in order to reach an
agreement
• Family and work group goals are always above
individual needs in Chinese culture. Chinese
people are much more easily influenced by
groupthink

• Personalization
• Word-of-month
• Chinese people are more willing to believe
word-of-mouth rather than traditional
advertising, so word-of-month is much more
effective.
• According to Paul Lazarsfeld (1955), “word-of-
mouth effect was 4 times more effective than
personal sales and 7 times than paper media.”

• Personalization
• Maslow's Hierarchy of Needs
• The behavior of creating and
sharing content reaches the
top 3 of Maslow's Hierarchy of
Needs
• Most Chinese B2C and C2C
websites have different
feedback-reward systems

• In 2013 Coca Cola launched a
nickname bottle campaign on Sina
Weibo.
• consumers to customize their own
bottles
• This campaign saw 20%sales
increase compared to the same period
the year before.

• Highly integrated
• Integrate the social network system into the
e-commerce site
• On Jingdong360, they built forums for every
commodity. Consumers can discuss and ask
questions, post photos and videos in the
products’ detail page.
• Taobao has had its own instant messaging tool
“Trade manager” since it was founded, however
Ebay still does not have such a function.

• Highly integrated
• integrate e-commerce into the social
network system
• With the growth of Weibo, many brands set up
their business account on Weibo. Now, about
404,000 companies have their official accounts
on this site
• Users can deposit money into WeChat account,
scan QR code to get discount info, purchase
products, share product photos with friends or
leave feedback in friend circle, and then they
can get reward from brands

Account introduction
Survey research
Account contact
Account introduction
External links
Followers,
Fans, Posts
Focal area
New feeds

Instant
messaging SNS Gaming
E-commerce
& Payment LBS / O2O
Office
Accounts
Smart
Home
Text message
Voice message
Walkie talkie
Video chat
Group chat
Send contents
from other apps
Picture exchange
Stickers
Geographic
location
Upload posts
with text or
photo
Browse friends’
updates
Comments/likes
Share others’
links
“Look around” to
find and
talk with
strangers
“Drift bottle” to
send
message to
strangers
Mobile gaming
Check friends’
scores
Invite friends to
play
E-commerce
An e-commerce
button, directly
displaying some
products
Merchants sold
via brands’
service accounts
Payment
Consumption on
WeChat
Consumption on
other apps
Scan QR code to
pay for purchase
on PC website or
at online store
Scan QR codes for
online payment
Scan QR codes to
search for and
buy products on
WeChat
Navigation using
the location
friends send to
you
Search for
discounts and
group buying
activities nearby
Subscription
account
Send followers
push notification
once everyday
Service account
Send followers
push notification
once a month in a
new chat window
Customized
menu with up to
15 functions
Sell products
within service
accounts
Skyworth TV
allows users to
control their TV
through WeChat
Search and pay
for movie and
drama through
iCNTV account on
WeChat and
syncs them with
Skyworth TV

• Power of minority
• KOL (key opinion leaders) and celebrity
spokespersons
• Very important for increasing brand awareness,
• They are always the dominant figures of the
network and shape public opinion by
connecting with their followers
• their effects have already been questioned by
the Chinese social network marketers

• Power of minority
• Kevin Kelly
• "to be a success online, you don’t need a huge
audience. You just need 1000 true fans, who are
willing to pay you.“
• Boston Consulting Group
• 7% of the customers drive 40% of sales.

Conclusion
• Chinese SNS has shown its
unique model and proved
its remarkable advantage.
• The integration of SNS and
e-commerce in China has
made both of them
become part of Chinese
lifestyle.
• American SNS is still
focusing on its simplified
function and remains
divided from e-commerce
• Most American SNS sites
still rely on advertising
revenue

Conclusion
• Make your own e-commerce platform for brand-building.
• Let consumers create content for you.
• Integrate social, brand building, and commerce together.

Thanks
LPM 002 – Final Presentation
Riki Yao

Lpm002 SNS in Canada and China-Riki

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