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WECHAT MINI-PROGRAMS 2020 REPORT September. 2020

HONG KONG | BEIJING | www.daxueconsulting.com

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1. Meet China’s internet users 03

2. What are WeChat Mini-programs 05

3. Mini-program users 26

4. Gen Z vs. silver generation 28

5. Mini- 35

6. E-commerce case studies 46

7. Case studies 50

8. About us 59

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED 1 Meet China’s internet users in 2020

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED 3 China’s internet Users 2020 99% of internet users use mobile terminal Avg. 30.8 hours a week 1.4 Billion Population 904 Million Internet Users 897 Million Mobile Users per person Equal to 65% of the population Equal to 99% of Internet users Equal to 64% of the population

Internet users’ age distribution Gender use distribution in November 2019

24.9%

20 to 29, 19.9% 21.5% 17.9% 10 to 19, 51.9% 16.1% 19.3% 30 to 39, 9.9% 20.8% 9.2%

Under 10, 3.9% Over 60, 48.1% 6.7% 40 to 49, 50 to 59, 17.6% Messaging Video Music and Literature and and live- Others 10.2% and socializing audio news streaming

Source: CNNIC 45th Statistical Report on Internet Development in China © 2020 DAXUE CONSULTING ALL RIGHTS RESERVED 4 2 WeChat Mini-programs

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED 5 I think the beauty of Mini-programs is that you basically can develop almost everything and anything

Aurelien Rigart Co-founder and Vice President of IT Consultis

© 2020 DAXUE CONSULTING x ALL RIGHTS RESERVED 6 WeChat Mini-programs are sub-applications within WeChat’s ecosystem

How Mini-programs are different from APPs

Run fast and smoothly Cross-regional

Existing within WeChat, less than 10 MB in Mini programs have few geographical size, Mini-programs launch quickly and run restrictions, wherever globally WeChat is smoothly. Users can access them directly available, Mini-programs are sure to work. through WeChat, so there is no need to download an App.

Lower development cost Simple and sweet

Unlike the native Apps, developers don’t Due to the small size of Mini-programs, the have to develop Mini-programs for multiple features are relatively limited. Since Mini- operating systems. They can be built with programs are developed in the WeChat WeChat’s framework using HTML, ecosystem, developers are given limited space JavaScript and CSS. to create and keep the functions simple.

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED 7 WeChat saturated consumer base, paving the way for Mini-programs 6 out of 10 WeChat users are mini-program users

Dec 2017 Dec 2019 DAU surpassed 170 million. DAU had surpassed 320 million. Dec 2018 May 2020 Nov 2016 DAU had surpassed DAU had surpassed 400 WeChat Mini-programs 230 million. million. was first launched

Evolution WeChat MAU Comparing the growth of WeChat and Mini-programs MAU (Million people, June 2013 to June 2020) (June 2018 – June 2019)

1,202 1,133 5.0% CAGR 51.9% CAGR 1,082 989 889 697 VS 500

WeChat MAU reached 1,133 Mini-programs MAU reached million, with a 5.0% CAGR. 746 million, with a 51.9% 2014 2015 2016 2017 2018 2019 2020 CAGR. Source: QuestMobile, Aldzs, huaon © 2020 DAXUE CONSULTING ALL RIGHTS RESERVED Source: huaon.com 8 The rapid growth of WeChat Mini-programs The number of Mini-programs exploded after launch, but is now starting to slow

Number of WeChat Mini-programs User activity of WeChat Mini-programs (in million) (in million) Number of DAU Number of MAU

3.2 3.0 746 2.3 491 330 0.58 230

2017 2018 2019 H1 2020 2018 2019

100% WeChat Mini-programs’ GMV increased from 600+ billion RMB in 2018 to 1,200+ Monthly WeChat Mini-programs billion RMB in 2019, with a 100% annual entries per capita: 42.6 times growth rate. Number of different WeChat Mini- program types monthly used by 4.9 types In 2019, each person installed on average. 56 Apps users: However, they used more than 60 WeChat Mini- programs. The convenience of MPs makes them more popular than Apps. Duration of per capita daily usage 15 mins in December 2019:

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED Source: QuestMobile & Aldzs 9 Following WeChat, other platforms launched their versions of Mini-programs

Baidu NetEase WeChat Intelligence Toutiao Music Meituan

2018.03 2018.07 2018.09 2018.12 2019.07 2020.06

2020.06 2017.01.09 2018.07 2018.09 2018.11 2019.03 2019.10

Taobao Apple Quick App QQ TikTok 360 light shop App Clip

Source: Users QQ, daxue consulting research; Aldzs, mini–program insights 2019 © 2020 DAXUE CONSULTING ALL RIGHTS RESERVED 10 The penetration rate of Mini-programs The users of BAT & ByteDance Mini-programs all surpass 100 million.

BAT & ByteDance Mini-programs penetration Features of BAT& ByteDance’s top Mini-programs rate (June 2020)

98.7% : 97.7% : 91.2% WeChat Mini-program & QQ Baidu Smart Mini-program Mini-program

63.3% Apps QR code Access QR Code Smart Socializing compatibility scanning multi-Apps Scanning Search

Tencent Alibaba Baidu ByteDance Alibaba: ByteDance: light store & Alipay Douyin Mini-program & Toutiao Mini-program Mini-program

ByteDance, an emerging mobile App giant, is accelerating the development and promotion of its Mini-programs. Compared QR code Life Commercial Access User preference Entertainment to June 2019, its MAU has increased with 7.1% YoY grwoth scanning service service multi-Apps push content rate

© 2020 DAXUE CONSULTING Source: Qianzhan, 2020 & QuestMobile ALL RIGHTS RESERVED 11 More and more brands consider their mini-programs more important than their brand site. As e-commerce mini programs do not really compete with marketplaces, they remain key to the e-commerce strategy of any brand as it is a more efficient way to convert comparing to brand sites and to also close the loop within WeChat‘s ecosystem. Clement Ledormeur General Manager of 31Ten

© 2020 DAXUE CONSULTING x ALL RIGHTS RESERVED 12 Micro, Medium and Macro Mini-program growth Micro Mini-programs are growing the fastest Growth of small Mini-programs Growth of medium Mini-programs Growth of macro Mini-programs (10 thousands < MAU < 1 million) (1 million < MAU) (5 million < MAU)

1,993 + 145.7% 4,897 309 + 99.8% 703 133 + 35.3% 180

June 2018 June 2019 June 2018 June 2019 June 2018 June 2019

The top 10 fastest growing WeChat Mini-programs’ MAU in June 2019 (in million, user growth compared to June 2018)

211.8

151.7 146.7 97.1 82.1 79.8 78.7 57.6 53.8 42.1

Xiaoniangao+ Elong Life expense Pinduoduo Meituan delivery Hottest weibo WPS Office Tencent photo Baidu cloud Tencent news album storage

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED Source: QuestMobile 13 Share WeChat Mini-programs by type Mini-programs with over 5 million MAU are mainly for daily services, like video sharing and shopping Mini-programs with over 1 million MAU tend to be gaming Shares of WeChat Mini-programs (June 2019)

1 million < MAU < 5 million 5 million < MAU 1,063 Games 36.2% 13.3% WeChat MPs with Tools 12.30% 12.2% more than 1 million MAU Daily service 11.8% 17.8%

Others 10.5% 11.7%

Shopping 9.7% 13.3%

News / Education / Tools 8.8% 10.6%

Vedio 5.1% 10.0%

Travel & commute 2.9% 6.1%

Reading 2.7% 5.0%

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED Source: QuestMobile, Database June 2019 14 Top Mini-programs by industry in 2019 Around 20% are games, top MPs are related to entertainment and daily life tools

The top 100 active mini-program dstribution by industry (% of Mini-programs, January-December 2019) 76.4%

19.8% 18.7%

14.5% 13.4%

10.0%

5.7% 5.1% 3.7% 3.8% 2.0% 1.5% 0.9% 0.8% 0.6% 2

Based on Aldzs index, which is MP’s popularity calculated by search, share and use

© 2020 DAXUE CONSULTING Source: Aldzs, mini–program insights 2019 ALL RIGHTS RESERVED 15 Top game Mini-programs Game Puzzle and leisure games have more users than competitive games. E-Commerce

Life Service Top 10 game Mini-programs 36.4 (no. of MAU in million, June, 2019) Video

28.5 25.1 22.8 22.4

13.0 9.6 9.5 8.3 8.2

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED Source: QuestMobile, Database June 2019 16 Top e-commerce Mini-programs Group-buying is leading the Mini-programs' e-commerce Game E-Commerce JD.com’s Mini-program stands out from Taobao & Tmall’s Life Service

Video Top 20 MP for E-Commerce 144.0 (no. of MAU in million, April-June, 2019) 132.2

Life Service

Food Delivery

75.0

54.8

31.8 26.8 20.1 19.0 17.5 15.7 15.5 12.5 12.4 12.4 12.3 12.2 12.2 11.1 10.8 10.0

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED Source: Iresearch, 2019.08 17 Top life service Mini-programs There is a large gap between Payment of Life and other Mini-programs. Game E-Commerce Life Service

Top 10 MP for Life Service Video (no. of MAU in million, June, 2019) 146.7

82.1

54.9 52.3 50.7 36.9 35.9 33.0 21.9 21.6

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED Source: QuestMobile, Database June 2019 18 Top video Mini-programs Tencent’s Mini-programs make up three of the top 10 video Mini-programs Game E-Commerce

Life Service

Top 10 WeChat MPs for video Video (no. of MAU in million, June, 2019) 211.9

54.9 40.8 38.1 30.9 22.5 22.4 21.8 20.5 17.9

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED Source: Iresearch, 2019.08 19 If you’re doing the right thing, if you’re building the right services or selling the right product, then it will spread like fire because through word-of-mouth because of the shareability of Mini-programs over the social network

Thomas Meyer Co-founder of Mobile Now Group

© 2020 DAXUE CONSULTING x ALL RIGHTS RESERVED 20 The main entry points of WeChat Mini-programs (1/2)

Main page / Discover Advertising Swipe down in the chats page Discover – Mini-programs Ads in Moments Mini-programs Ads from articles in official accounts My programs nearby Ads banner in Mini-programs Recently used Shake App / Mini-program Chat Mini-program linking to Scan External Chat box other mini programs Scan QR code Chat history Long press the right top icon Public account Scan item code to open the recently used

Profile page links to related Mini-programs QQ browser Mini-programs App sharing Articles Linking template message Navigation bar Official account menu Search Dialog box ‘Me‘ page Template Cards & Offers Others Public services Desktop icon in Android Payment complement page and massage Search TV shake Money – Receive and pay WeChat work Top search bar in the main page

Top search bar in ‘Add Contacts’ Messages Discover – Search Work sections Search bar in ‘Discover – Mini-programs’

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED 21 The main entry points of WeChat Mini-programs (2/2) Sharing is the key to acquiring and keeping users

How current users enter WeChat Mini-programs

2017 2018 2019 38.8%

33.0% 32.6% 26.2% 24.8% 22.2% 20.1% 15.7% 11.0% 12.1% 9.2% 7.4% 8.6% 5.1% 5.8% 5.0% 5.2% 5.5% 2.0%1.8% 2.0% 1.3% 0.3% 1.2% 1.1% 0.2% 1.1%

Share Quick access Other Mini-program Public Account QR code Message Search Advertisement Coupon Others

54.5% How new users enter WeChat Mini-programs

2017 2018 2019 38.8% 33.2% 29.7%

18.1% 17.1% 14.9%16.3% 12.0% 9.8% 8.6% 7.1% 6.9% 5.5% 4.9% 4.5% 2.1% 2.7% 3.6%3.2% 0.5% 0.9%0.7% 0.2% 2.0% 1.4%

Share QR code Public Account Quick access Search Other Mini-program Advertisement Message Coupon Others

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED Source: Aldzs, Mini–program insights 2019 22 How to set up a WeChat Mini-program Open to: Individuals, businesses, government, media and other organizations

① Register an account ② Fill in information ③ Mini-program development ④ Review and release Register an account and log in WeChat Fill in information including name, Developer can use specific tools to develop Submit Mini-program code to public platform (mp.weixin.qq.com) logo, introduction and service scope and modify Mini-program’s functions WeChat’s team to review. After Approval, it will be released

 Features of the development interface: Home page Development

Management Growth

Version Management Evaluation Member Management Legal record User feedback  Review and improve information Promoting Statistics Flow master

Function Ad master

WeChat search Setting  Three steps: account Customer service information, e-mail activation Subscription  Register an account and and information registration Content access  Send Mini-program’s code to choose Mini-program section Brand mini-program WeChat’s team for Approval

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED 23 Mini-program integration with Apps and websites How to drive traffic to Apps and websites from Mini-programs

Web-view

WeChat allows developers to insert web-view in the Mini programs

Leverage the web-view Directly navigate to the App function to lead traffic to the App Access within the Mini-program to bring users to the App IOS: leads to the Android: direct download

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED 24 Mini-programs as a CRM system After guiding customers to Mini-programs, brands can maintain relationship with customers, and use MP Analytics Dashboard to see consumer analytics.

Guide customers to become a Leverage social media to get member on Mini-program consumer insights

Scan QR Code

Register as a Member Traffic Analytics Page Performance

Maintain Customer Relationship

Grant Personal Information Points

Triple Coupon Region Distribution Retention Analytics Accumulate points Customer Service Send coupons

Connect Phone Number

Gender & Age Distribution Game Interaction Free Offline Service

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED Source: WeChat Mini Program Analytics Tutorial 25 3 WeChat Mini-program Users

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED 26 Mini-program user demographics (2019)

Operating System Distribution Gender Distribution

71.9% 28.1% 41.8% 58.2%

Android IOS

City Distribution Age Distribution 27.4% TOP 3 Fourth-tier First-tier,

18.6% and below, 15.9% 17.8% 17.5% Beijing 4.4% 14.8% 30.6% Shanghai 3.7% Guangzhou 3.6% 3.9%

Second- Third-tier, Under 17 18-24 25-29 30-39 40-49 Above 50 tier, 18.6% 34.9%

© 2020 DAXUE CONSULTING 27 ALL RIGHTS RESERVED Source: aldsz.com 4 Silver generation VS. Generation Z

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED Generation Z VS. The Silver Generation The younger generation use MP more for daily services & shopping, whereas the silver generation use tools & reading

Distribution of WeChat Mini-programs by Industry June, 2019 23%

16% 16% 13% Generation Z Silver generation 12% 10% 9% 9% 9% 8% 7% 7% 6% 5% 5% 4% 4% 4% 4% 4% 4% 3% 3% 3% 3% 2% 2% 2% 1% 1% 1% 1%

© 2020 DAXUE CONSULTING 29 ALL RIGHTS RESERVED Source: QuestMobile June 2019 Generation Z’s Mini-program preferences Generation Z likes Mini-programs related to eating, entertainment and travel Travel Service Transportation Social Platform

Ctrip Zhixing Transportation Code Weibo # 2 # 1 # 8 # 9 # 4 Travel Related

Life Service Pratical Tools

Maoyan KFC+ Meituan Baidu Cloud WPS

# 3 # 6 # 7 # 5 # 10

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED Source: QuestMobile, Database June 2019 30 Generation Z is always on the go They are dynamic & familiar with public transportation; They share & learn on the go Live Learn Play Socializing, idols Public transportation, train, metro, flights, bike City discover, culture & activities, exhibition, films, tickets Foodies, food delivery

Public transportation Exhibitions Travel Foodies Fast food

Shared Bike Films Idols

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED 31 The Silver Generation are emerging users Xiaoniangao (小年糕)’s MAU increased 20-fold in one year, reaching 210 million in 2019, making Xiaoniangao rank 1st in video

WeChat users VS. XNG Users June 2019 XiaoNianGao's MP users XNG’s users are older than average WeChat users 27.9% WeChat Users 24% 25%

17% 17.4% 14.9% 13.9% 12% 10.2% 7.8% 9% 7% 7% 5.2%

Under 18 yo 19-24 yo 25-30 yo 31-35 yo 36-40 yo 41-45 yo 46 yo and above

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED Source: QuestMotbile June 2019 32 Why Xiaoniangao+ is popular among the silver generation

Square COVID-19 Why is Xiaoniangao popular among elderly Dancing prevention Health Satisfying social needs What is Xiaoniangao? Every album created in Xiaoniangao can be

Xiaoniangao is a photo-to- shared on WeChat. video user-generated- Videos can be posted in the community and users content tool. Users can can interact with the post (like, comment, follow). easily create beautiful digital Sections like ‘health’ and ‘square dancing’ Appeal albums. Xiaoniangao to the silver generation identified the silver generation as the main Easy to use targets and tailored the functions to satisfy their The interface is simple for the elderly. All fonts are needs. enlarged to make it easy to read Create There is no need to download an APP. Digital Album Free Being free is an essential for the silver Xiaoniangao Mini-Program Interface generation. Any fee or charge would greatly prevent them from using it.

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED 33 The silver generation’s favorite content, topics & keywords

Favorite content Topics Keywords

CN ENG CN ENG CN ENG 关注 Follow 推荐 Recommend 光棍节 Singles Day

推荐 Recommend 中午好 Good afternoon 冬季 Winter 通用 小雪 开心 HAppy General Light 亲子 Parent-child 早上好 Good morning 广场舞 Square dancing 霜降 First Frost 晚上好 Good evening 上海 Shanghai 秋季 Autumn 感恩节 Thanksgiving 祝福 Bless 聚会 Gathering 周末 Weekend 健康 Health Square Dancing 生日 Birthday 冬至 Winter solstice 妙招 Tips 万圣节 Halloween 圣诞节 Christmas 原创 Original Works 立冬 Early Winter 腊八节 Laba Festival 佳作 Excellent Works

Memories Festival Wishes

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED 34 5 Mini-program Games

© 2020 DAXUE CONSULTING x x ALL RIGHTS RESERVED 35 Mini-games in a nutshell China is the best place to launch a , as mobile games contributed 69% of China’s market in 2019

Games Monthly active users Total registered users

Mini-games reach a wider audience than native app games

50:50 >50% 69% Male to female Of the users only play Of players are user ratio mini-games and not over 30 years old native app games

Sources: WeChat mini game official data in Sept 2020, The Verge, ALDZ.com

© 2020 DAXUE CONSULTING x x ALL RIGHTS RESERVED 36 Mini-games are ideal for businesses focused on ad-revenue

Who should build a mini-game? What about brands?

Because production time and cost is Game Publishers much high, brands might find more value by either...

Building an H5 game, Startups H5 which takes less production time and cost

Small companies specialized in gaming Advertising on an existing mini-game

Celebrities

© 2020 DAXUE CONSULTING x x ALL RIGHTS RESERVED 37 Mini Games are like a free trial of the app game or real game from a game studio perspective. It is a way to play/try a game without having to download it or purchase it. In that regard, it is essential to consider all the social aspects of the game, leveraging the WeChat ecosystem as much as possible such as sharing, templated messages, daily lucky draw, daily leaderboard, multiplayer or invite friends the game. Clement Ledormeur General Manager of 31Ten

© 2020 DAXUE CONSULTING x ALL RIGHTS RESERVED 38 The essence of a mini-game What to know before building a mini-game

Total size of all sub packages Max size of single sub package

Games can download extra assets from an external server, but take into account that they will have to be fetched every time the game is started. So, games should be rather light in terms of assets, and 3D games should use low-poly 3D objects and low quality textures.

3D games should use low polygons

© 2020 DAXUE CONSULTING x x ALL RIGHTS RESERVED 39 Programming behind mini-games

WeChat Mini-Game project lifecycle Mini-Game technical architecture JavaScript VM (V8 / JS Core) H5 API Prototype Mini-game Code Browser Adapter Game engine, build specific features, UI, animations, multiplayer, social layers DOM Image Back-end / Database / API connections Server setup & infrastructure Graphic Game Web Testing/ QC / Submission to Tencent / Release Storage Rendering Logic Socket

Audio XHR QA+ WeChat API WeChat SDK Submission

Development User Payment Files Multimedia Prep

User Flows JS-Natice Binding Native JS-Natice Binding Check with Tencent, new Planning features’ feasibility through Benchmark, feasibility partnerships Rendering Storage Networking AV study, app localization vs Technical Specifications from scratch?

© 2020 DAXUE CONSULTING x x ALL RIGHTS RESERVED 40 .

Comparison between Mini Game & H5 Mini-games are ideal for game publishers who monetize through ads, H5 is ideal for brands

WeChat’s official Tencent H5 Game Mini Games HTML5 analytics tool analytics tool

Browser, WeChat, Entry points WeChat Number of accumulated Number of new users and users, active users, newly User number Acquisition cost Low Low registered users, paid users active users per hour per day and month Open / Activation High High rate Return rate and TBD Low revenue Nickname, avatar profile url, gender, city, province, Age and gender Demographics Performance Medium Low country, language, openID, session ID

Local storage Medium Low

Social gaming Great Good Overall revenue per Revenue, game props day/week/month Revenue exchange, tasks, lotterage JavaScript, JavaScript, accumulated Coding languages TypeScript TypeScript

© 2020 DAXUE CONSULTING x x ALL RIGHTS RESERVED 41

How to monetize WeChat mini-games (1/2)

1. In APP purchases (IAP) IAP is the direct way for revenue, but now it’s only open to Android user, iOS doesn’t support it due to restrictions from Apple IAP in a Mini-game needs to apply for Game License (注册版号和著作权) from the government If a Mini-game is owned by an individual instead of a company, it cannot have access to IAPs

© 2020 DAXUE CONSULTING x x ALL RIGHTS RESERVED 42 How to monetize WeChat mini-games (2/2)

2. Advertising (banners & rewarded videos)

Advertising is the major and easiest way of monetizing for mini-game owners who don’t have a game license or business license, but Tencent will take cut of the revenue. Mini-games offer players rewards for watching ads. In exchange for watching ads, players get extra coins or extra lives. The ads interact with players instead of displaying ads bluntly like banner or pop-up ads.

80% YoY growth Of traffic from ads from July 2019 to 2020

39 mini-games Have reached over 1 million RMB in ad revenue

Watch videos to get rewards

© 2020 DAXUE CONSULTING x x ALL RIGHTS RESERVED 43 The 1st commercial ads on mini-games, Nike & McDonalds Ads on Tiao Yi Tiao are allegedly priced at 5 million RMB a day or 20 million RMB for five days

By placing a branded box on the game Tiao Yi Tiao (JumpJump), Nike and McDonalds reached 28 million daily actives users a day. When users land on the branded boxes, they get extra rewards. French fries even pop out of the McDonald’s box after landing. The event drew the attention of media and even the News, which was a level-up for brand awareness. Such partnerships with Tencent are only achievable through bidding, and only big brands have such a budget.

Source: SixthTone

© 2020 DAXUE CONSULTING x x ALL RIGHTS RESERVED 44 Dior uses mini-games to engage with consumers Brands build mini-games to advertise at a lower cost than most of other Tencent formats advertising Dior built two games to engage customers

Game #1 Game #2 Remember every Find the differences picture, and turn between two images over matching pictures together.

What it brings to What it brings to brand? brand?

Draws players Envelopes the user’s attention to the attention in a exquisite details of luxurious scene which Dior’s luxury is connected with Dior products

Remember Dior Interface 8 Differences

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED 45 6 E-Commerce case studies

© 2020 DAXUE CONSULTING x ALL RIGHTS RESERVED 46 Cosmetics Multi-Brand – O2O e-commerce mini-program Brand WeChat mini-program links users’ WeChat with their memberships, allowing users to access it conveniently and stay informed. Brand also set up its own WeChat-based live-streaming broadcast channels. Core e-commerce feature set Membership Live-streaming (Homepage, campaign, CLP, PLP, PDP, cart, checkout etc.)

• Tiered membership program • Sample store • Receive free make-up samples with membership points

• Listing for all products featured in the live-stream.

• Detailed page to introduce all topics, hosts, and products.

• Complementary WeChat groups for beauty advisors and customers to further engage and discuss products and purchases.

In-store make-up training and event reservation © 2020 DAXUE CONSULTING x ALL RIGHTS RESERVED 47 Luxury Multi-Brand - Membership and Private Cart mini-program has big plans for their WeChat ecosystem, which would require months of design, development, and integration to realize. The membership and private-card MP were strategically put in place to space out launches leading to progressive launches. Membership overview Virtual membership card Private Cart

• With a unique QR code shared by sales assistants directly to WeChat, customers can • Points to next access a shopping cart level with preselected items

tailored by experts • Cash back gift specifically for their taste, card progress needs and size indicator

• Customers can review • Perks & private cart details. benefits over

view for all • Choose in-store pick up membership or home delivery. tiers

• Add and remove items from the cart then complete the order with WeChat Pay.

© 2020 DAXUE CONSULTING x ALL RIGHTS RESERVED 48 SMCP - membership mini-program WeChat CRM and Union ID binding activation for Sandro, Maje, and Claudie Pierlot, replacing the previous in-store registration process, shortening a 3 minute process to 20 seconds.

Registration Membership Membership Privilege Before Paving digital SMCP used a paper SMCP on MP CRM servicing & registration form in- commerce store, then shop activations assistant input the information manually. • Existing members The efficiency is can view their Identify, tag, segment, account details and extremely low and and target customers, took an average of tier benefits prospects, and VIPs . 3 minutes with tailor-made • Backend integration communications & synchronization with SMCP’s ERP system, ensure the membership After Sales associates, in information retail outlets, also displayed on the have access to the MP is always up to SMCP digitalized this same membership date progress, increasing profile as customers registration efficiency, can view in the MP. allowing the whole process to finish within 20 seconds.

© 2020 DAXUE CONSULTING x ALL RIGHTS RESERVED 49 7 Case studies

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED 50 E-Commerce case - Pinduoduo Leverages WeChat’s social fission through word-of-mouth marketing and viral communication

Pinduoduo Mini-program’s online strategy Introduction: Pinduoduo’s launched its mini- program in May 2017 E-Commerce functions in both mini- program and App Discounts and red packets incentivize Invite friends to open red packets users to share Pinduoduo Mini- program with friends

Actions:

Get discounts by sharing with friends Invite friends to get coupons or cash Friends invitation message can be directly shared on WeChat, which would Pinduoduo users Invite friends to get discounts Become new users lead to the Pinduoduo Mini-program

Outputs:

MAU: 97 Million in June 2019 Ranked second among all WeChat Mini- programs Invite friends to download and get coupons

Source: QuestMotbile, 2019, Aldzs, mini–program insights 2019 © 2020 DAXUE CONSULTING ALL RIGHTS RESERVED 51 E-Commerce case - Suning Leverages the WeChat Mini-programs to connect online and offline

Suning WeChat Mini-programs Introduction: One of the largest e-commerce platforms in China Gain positive reputation in terms of satisfactory delivery service and guaranteed product quality

Actions:

Through WeChat MPs, Suning can communicate anywhere and anytime with Success during China’s shopping carnivals, growth from 2018 to 2019: customers. Has 12 unique WeChat Mini-programs, Suning Pingou’s ”8.18” shopping carnival: Suning Yigou’s ”11.11” shopping carnival: targeting different customer groups Outputs: Awareness increased 150% Number of shares increased 193%

Between January 22nd and February Order volume increased 200% Customer conversion rate increased 15% 15th, 2020, the number of users of Suning's cloud store mini-program grew GMV increased 260% GMV increased 283% by nearly 300% from the previous year. During the same period, the number of Order volume increased payment orders increased by more than Average value per order increased 70% 465% 500% from the previous year.

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED Source: & Aldzs 52 Food and beverage case – COCO Leverages the high foot traffic of its 3,300 offline retail stores

Function illustration of COCO Mini-program Introduction: COCO launched its mini-program in September 2017 3,300 offline stores

Consumers’ pain points:

Long waiting time for drinks Buy beverages for friends Get discounts and Actions: Support for WeChat mini- as gifts coupons program order Offline: Set posters, QR code, and incentives to encourage consumers to use the mini-program Online: Pre-order; ‘you may like’ ; limited group buy, discount & coupons for sharing, videos, store guide Outputs:

Weekly retention rate: 8% for new users; 24% for active users Order online, no need to Time-limited promotion Decreased order time from 4 mins to 2 queue with more discounts mins 45 million registered users in 2019

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED Source: COCO mini-program & 360doc 53 Fitness case – SuperMonkey A highly profitable, membership-free gym chain

Introduction: Actions: SuperMonkey stores distribution: People can sign up for fitness classes and SuperMonkey was founded personal training through the mini-program. in in 2014 Users pay for one class at a time, with no The chain received RMB membership fees. 360 million in series D Users receive the entry code, check-in, and funding in Feb 2019 receive class pictures through the mini- program. As all admin work is done through the MP, there is no need for a front-desk.

Outputs:

The company was valued at CNY 1.66 billion in 2019 Made 220,000 yuan in one hour on February 20th when it released a fat-burning boot camp The chain has 126 stores in China

Fitness courses registration Shanghai: 43 stores Shenzhen: 27 stores

Beijing: 24 stores Guangzhou: 11 stores

Nanjing: 5 stores Chengdu: 9

Wuhan: 5 stores : 2 stores Sources: SuperMonkey mini-program, pedaily, walkthechat, equalocean © 2020 DAXUE CONSULTING ALL RIGHTS RESERVED 54 Game case – Tiaoyitiao Viral mini-program game within the WeChat community

Introduction: Game page demonstration: Other WeChat Mini-games:

Launched mini-program in December 2017 Fight the landlord Incentivizes users to compete to keep Game screen interface them active (card game)

Actions: Tiaoyitiao Main screen (strategy game) Users simply press down on the screen to move a hopping black figure from one platform to another, collecting one point for Animal restaurant each successful jump (management game) Tracks performance and ranking among all WeChat friends to encourage competition Commercialization: Added special boxes Pro-government with a brand logo and extra points will be (card game) awarded every time users land on these Start special boxes Fight the landlord real person version Outputs: Table of Friends Ranking (card game)

170 DAU million in January 2018 In addition to brand advertisements, game skins Backgammon 390 million players on total in March 2018 are also an effective marketing tool for mini- (chess game) Maximum number of players online at the games. Besides the basic one, there are there same time was 28 million during Chinese superior skins that can be redeemed with game Matchmaker New Year festival. points. (puzzle game)

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED Sources: QuestMobile & WeChat 556 Game case – Pirates are coming (海盗来了) The most eye-catching WeChat Mini-game, reached the top in both user volume and revenue

Introduction: Game page demonstration: Social fission of Pirates are coming:

Launched Mini-program in April 2018 The game relies on social fission, focusing Attack other on getting acquaintances from existing players players to join Actions:

Social layer, interaction, and are the 3 most important arms. It provides various ways to compete engage with friends, including leaderboard, pirate union, Roulette as a game friends, world chat channel etc.. central game The popularity of this game heavily relies dashboard on its social factor, players can chat, exchange items with friends, help each Pop-up notifications to other to complete missions, or even fight invite friends and get against them all. rewards The game frequently updates, with 10+ new versions a week, which keeps boosting user activation and retention

Outputs: Add friends from WeChat Ask friends to help get energy Reached over 100 million users. Peak DAU reached 20 million.

© 2020 DAXUE CONSULTING x x ALL RIGHTS RESERVED 56 Social media case - Weibo Weibo launched mini-program as a new entry point, and Weibo MP could drive WeChat traffic to Weibo

Action Development of Weibo MP Introduction: Home page As one of the biggest social media 16 platforms, Weibo has 550 million monthly 11 Re-launched Weibo MP Official launched its mini-program active users as of Q1 2020 Add more function version Named as Speedy Weibo, with simple Renamed as Hot Weibo (热

Actions: functions 门微博)

Weibo launched its first mini-program version in August 2018, and removed its 31

mini-program on August 31st 2018 Remove Speedy August Weibo launched another mini-program Weibo from WeChat October version with more functions, like user login and comment. Growth of MAU Outputs: (Number of active users in million)

Ranked 1st among Mini-programs for 80.6 85.5 66.4 comprehensive news from April – June WeChat login Weibo login 2019 Weibo users are satisfied by the convenience the mini-program brings, since Users can log in to access their they can see content easily when someone favorite content and post articles. shares Weibo posts on WeChat The categories feature allows users to easily find their favorite content. April 2019 May 2019 June 2019

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED Sources: Souhu & Weibo & iresearch 57 Short video case – Xiaoniangao+ Appealing to senior citizens through simplicity and social connection

Xiaoniangao+ index trend chart Introduction: (6/27/2020 ~ 7/272020)

Launched mini-program in 2017 The highest index: 10,000 A WeChat Mini-program allows users to Pinduoduo,10,000 edit and post videos with convenience and 8,800 simplicity. 8,400 8,000 Actions: 7,600

Xiaoniangao+ has established a WeChat 7,200 official account, mini-program and 6,800 subscription account. 6-27 6-29 7-1 7-3 7-5 7-7 7-9 7-11 7-13 7-15 7-17 7-19 7-21 7-23 7-25 Targeting senior citizens, Xiaoniangao+ provides users experiences of simplicity without charge. Templates

Outputs: Title Xiaoniangao+ was ranked the Most Popular Tools Mini-program in July 2019. Introduction There are more than 500 million users, and more than 10 million DAU. Who can see Xiaoniangao+ has a great reputation with a user rating of 4.2/5. Discovery page Video editing page Video editing page

© 2020 DAXUE CONSULTING ALL RIGHTS RESERVED Sources: Aldzs, aicaijing, woshipm 38 ABOUT …

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