Not parents, not teachers… the #Chinese government!
China’s top live streamer Li Jiaqi just got his #Shanghai Hukou. For those of you that don’t know, #China has a green card system for its own #citizens. Health and education programs of each city are limited to its own Hukou #residents. And it’s notoriously hard to get one in big cities like #Beijing & #Shanghai.
But that’s the power of #livestream. Li Jiaqi got it through a “special #talent” program, circumventing the long process most applicants need to go through.
Local governments want a piece of the livestream commerce pie and they’re serious about it.
One district in #Guangzhou will give top tier live streamers up to U$73K as housing subsidies. They’ll even give U$1.4M to companies that go public… if they’re registered within the district.
These special incentives aren’t just for the A-list #influencers and their media companies. Jinan is training 10,000 people to become professional #livestreamers. The goal is to help achieve 180 billion RMB (U$26B) worth of transactions. Other provinces are also doing the same thing.
But that’s not it. We’ve organized a bunch of #government efforts in livestreaming into one #infographic.
In the past, shopping on #SinglesDay (11-11) meant going to #Taobao by default. Perhaps a quick check of #JD for some.
But this year… #consumers have completely new #choices. Kuaishou and Douyin – China’s top video apps – have entered the game. They own a lot of #traffic and have stand-alone #ecommerce platforms.
#Livestream is the name of the game this year and #Alibaba is ramping it up. Livestream only contributed to 10% of GMV on 11-11 last year. This year, they’re pouring in #resources to push that number up as livestream has become mainstream.
#Douyin and #Kuaishou aren’t playing around either. Both of these platforms set very high sales targets for livestream & video sales in 2020… and all the action is planned for November.
During the 1st half of the year, Kuaishou hit about $14B out of their target $37B GMV #target for 2020. Douyin only hit $6B during the first half of 2020 while aiming to sell $23B worth in the second half of this year.
That’s 65% – 80% of the year’s target all planned for the second half of the year. There’s no #Christmas or #Thanksgiving shopping in #China. Everything will happen on 11-11.
Do you think Kuaishou & Douyin can put a dent in Taobao Live’s #marketshare?
I just heard that 24 #American retail companies are preparing a #shopping holiday on October 10th (10.10) to “mirror” China’s 11.11. American news articles are reporting that #retailers really need to do an online #sale earlier this year because of the pandemic.
But nobody is being #honest about what’s really happening.
American retailers are COPYING #China. It’s going to be hard for anyone to admit… but in this case it’s a great move.
It’s not just some random #marketing gimmick. Alibaba Group and JD.COM have proven year after year that their way of doing a massive #event online works. Not for the sake of clearing inventory after a major #holiday. An event dedicated to shopping itself… with REAL #deals for #consumers never seen throughout the year.
This is why a country with a GDP per capita less than half of that of #USA can do a sales event several times larger than the US. The entire US did about $17 billion during #BlackFriday & #CyberMonday combined. #Alibaba alone did $38 billion on 11.11.
#Ecommerce in the US is becoming more and more centralized like China as #Amazon has become THE place to shop.
Do you think they can successfully mirror a new shopping day within the next few years?
Recently the above topic was very popular among Chinese consumers on after it was posted on Toutiao and 悟空问答 (Q&A platform). I was intrigued, and decided to see which app people couldn’t live without.
“I would delete WeChat.”
- 熊猫投资: Of course I would delete WeChat. WeChat Pay is just a knock-off of Alipay (Alipay: Launched in 2004, WeChat Pay: Launched in 2013). You can also use the chat function on Alipay.
- 风吹心动4: WeChat Pay takes a lot of commission. Alipay has been investing a lot of effort to improve user experience… and I can see that whenever I open the app. There are lots of events happening e.g. discounts, coupons – so why not use Alipay?
- 马货腾: WeChat Pay does not have a proper customer service center (at least that was my experience… I couldn’t reach them). Also, I’m not even talking to a real human being, I need to talk to the AI. It’s annoying.
- 无睡不酸C: I use WeChat a lot, but I’d still choose Alipay. WeChat is just a messenger app, and I can always use other apps to chat with my friends. Not only the messenger function, but there are multiple apps that could substitute WeChat’s functions. But not Alipay.
- 易程: Alipay always gives back to the society. One of their best services is 蚂蚁森林 (Ant Forest). It’s a simple game where you collect your green energy credits and grow trees. The energy credits are accumulated based on your spending data. Once your energy level reaches a certain amount, you can plant a REAL tree at a certain location under your name. WeChat Pay does not have such function.
- 流浪他乡: No Alipay means no Taobao! I will definitely delete WeChat Pay. Life without Taobao sounds horrible. If there’s no Alipay, then Taobao’s payment system will be dominated by banks, which means billions of people will be affected.
- 热血调查员: WeChat Pay does not have any other services other than its payment function. Alipay has virtual credit card payment system and small loan service like 花呗(Huabei) and 借呗(Jiebei). I can also manage my personal credit points, pay utility bills, top up my phone bills, purchase insurance, apply for a visa etc. using Alipay. Alipay is more than a payment app… it’s a comprehensive app for lifestyle and financial management.
“I would delete Alipay.”
- 小雨的创业信条: I would choose WeChat. WeChat is the main messenger app for Chinese. It’s a tool for social interaction. I haven’t seen anyone who does not use WeChat. If you don’t use WeChat, it means you lose all your connections.
- 贷款教授: You can login to almost every website using your WeChat ID. Think about how many websites you could login using your Alipay account. Not a lot. You can’t give up using Alipay because you need to use Taobao? That’s absurd. There are other ecommerce sites you could use other than Taobao.
Among hundreds of comments, there were very few people who said they would use WeChat Pay over Alipay. Although WeChat Pay was launched 10 years after Alipay, its market share showed very fast growth. It even ranked higher than Alipay back in 2015. People were fascinated and eager to use the new payment function on their daily messenger app.
However, it seems like most Chinese still see WeChat as a “messenger app”, and Alipay as a “payment app”.
Which app would you delete?
If you’ve lived in China for a decent amount of time, you will have had Lao Gan Ma at least once in your life. It’s one of the most popular hot sauce brands in China and is used in countless dishes.
Recently, this hot sauce brand got sued by Tencent.
Let me repeat that.
Tencent, one of the biggest Chinese tech giants, sued a hot sauce brand that’s been around for at least 20 years.
People were DYING to figure out what actually happened.
Turns out that LGM “failed” to pay the advertising fees for Tencent’s online platforms, which totaled over 16M RMB. However, the hot sauce brand denied this immediately and claimed they had never agreed to an advertising deal with Tencent.
So what was the REAL story?
After a couple of days, three people were arrested for signing a contract with Tencent using a FAKE LGM company seal. Their aim was to obtain online game package codes and resell them online.
Clearly, Tencent was stupid enough to skip any basic background check when they signed the contract and ended up suing poor Lao Gan Ma for not paying the advertising fees. People started making fun of Tencent all over social media, creating memes on how one of the biggest tech giants in China could be so stupid and naive to fall for such a scam.
BUT, that’s not even the most surprising part of the story. What happened next was truly eye-opening…
Tencent JOINED IN on the joke. They didn’t go the “serious” route.
They posted memes and videos ridiculing themselves as “the stupid penguin” on multiple channels including Weibo and Bilibili.
They designed a small contest asking the netizens for tips to prevent them from making such mistakes in the future. As a reward, Tencent wrote “We will give away a thousand jars of Lao Gan Ma for the winners!”
In the end – everyone had fun.
This could have ended very differently for Tencent, but this incident is a prime illustration that how you react to mistakes can make or break you. By being honest and willing to laugh at yourself you can become the real winner… or become the loser who tries to blame others and cover up their mistakes.
We all make mistakes… HOW you react to those mistakes is key.
The mad rush to acquire PPE during COVID turned a simple thing into solid gold.
That distortion was caused by bad leadership and particularly bad policy.
But even GOOD policy can cause massive (potentially negative) disruptions in market prices and strains on supply chains.
Beginning June 1st the Chinese government is forcing its 300-million-strong “Scooter Class” to wear helmets.
News of the policy change has transformed what is otherwise a “sleepy” category into one of the hottest on the planet.
Helmets for sale on Alibaba’s platforms must follow strict testing and safety guidelines including 3C registration.
Thus, the dealers with authentic gear are experiencing a boom, while market prices on certain items are doubling and tripling in value and many are completely sold out.
#China #eCommerce #ChinaBusiness #Scooters #Policy #Government #Alibaba #Tmall #Taobao