Tencent win the Internet Battle fight with Wechat
Tencent, the largest entertainment company and online social network in China, reported a jump of 47% of the second quarter earnings. Net income for the quarter stood at 10.9 billion yuan ($ 1.6 billion, £ 1.23bn), beating analysts' expectations. Revenues grew at its fastest pace in more than three years, the company said, rising from 52% to 35.7bn yuan. Tencent is best known for its WeChat messaging application, which dominates the local market. Market dominance Three Internet giants in China, the company's online games and social media Tencent is the largest, but least known in the West. Tencent has not attracted the same attention as global rivals: Alibaba, with charismatic millionaire entrepreneur Jack Ma at the helm, and Baidu, the local equivalent of Google. However, its WeChat service is roughly greater application, it is in China. According to many Chinese users it is ahead of anything people use elsewhere. source BBC
Wechat a crazzy APP
WeChat offers just about all of the mail to the call, mobile games, deliveries of food and online purchases, payments, even down to split the bill when you're with friends. The application has more than 700 million people who use and unparalleled dominance in the Chinese market, but it is not the main source of income of Tencent. "Online gambling has long been the driver for Tencent and it is essential to understand the composition of income," Duncan Clark, technology analyst and CEO of BDA Consulting in Beijing, told the BBC. Gaming giant In June, it was announced that Tencent Holdings and its partners to buy a majority stake in the Finnish manufacturer's Clash of Clans play. The deal values Supercell approximately $ 10.2 billion (£ 6.95bn) and Tencent will buy the game Softbank Group of Japan, which has invested in Supercell in 2013.
Its key element is the integration of a wide range of all online services combined in one application.
Social Networks in China !
Social media most avid users include those who derive pleasure from envy of their peers. Facebook, Instagram and others offer a myriad of ways to show, from displaying the latest handbag in social concern advertising through a charitable donation announced publicly.
Some tourism Companies invest in Wechat
see examples here.
Luxury Company invest in Wechat !
That's why luxury companies like LVMH have seen a huge increase in the use of social media among buyers of exclusive products, limited edition, particularly in the key markets of growth in India and China. Naturally, LVMH began using social media to identify and market to customers who most enjoy a upping their friends. Theoretically, this select group of customers - if they could be identified - would jump at the chance to buy a product intended for them. So far, though, LVMH's efforts to what we call "selective sales" have been hampered by random collection of information and the volume of available data. Complete integration of e-commerce and social media represented by WeChat could contain the solution. Some companies have already begun to exploit the opportunities - for example, Tiffany & Co. uses the official WeChat account to refine customer segmentation. Hitting the bull's-eye will depend on the ability of a brand to identify customers, with all their social media connections, are the targets of high value for selective distribution. That's where our research comes.
With Wechat you can Know your customers!In our study, we used mathematical models to reproduce the typical behavior of the followers of social media who like to show. We also took into account the fact that firms differ in what they know about their customers on social media. Some know nothing or almost nothing. But there are two types of information that are useful: the degree of connectivity (ie how many friends each customer) and the degree to which each client participates in a consumerist bidding (researchers call this "conspicuity"). Totally uninformed companies obviously can not engage in segmentation; companies that have one or two types of customer information may use all available data to curate their target set of customers. Try different combinations gave some interesting general principles. First, the most popular clients are not the high value the most. Fully aware of the business did better when they have targeted customers with a high level of visibility and an intermediate number of disciples, high enough to touch off the purchase of the desired effect envious, but not high enough to reduce the novelty of product - and by extension, its value in the game of competitive consumption - too. Second, not all information is created equal customer. We found that how many friends each customer is much more valuable than knowing their propensity to show on social media. The two types of information is better than no information, but none of the conspicuity information added value for companies who already knew the extent of social network connections to their clients. Overall, the value add information conspicuity amounted to between two and six percent profit gain, while the connectivity information to profit gains ranging from five to 30 percent.
Like many other high-tech Chinese companies, Tencent was first labeled as a copycat, fill the vacuum created by Beijing banning Western online companies to enter the Chinese markets.
Wechat better than Taobao... baidusource : http://www.cnbc.com/2016/08/17/tencent-overtakes-alibaba-as-chinas-most-valuable-tech-company-as-wechat-owner-posts-strong-results.html
Youtube was replaced by Youku, Google with Baidu, Alibaba by Amazon, while WeChat has taken the place of WhatsApp.