An Introduction to Social Commerce in China

Social Commerce in China

The evolution of Chinese social media is happen now with the merging of eCommerce

Enter CHINESE SOCIAL COMMERCE 3

The Fast Facts - Chinese eCommerce “142MM online shopping users by June 2010” CNNIC, June 2010

The Fast Facts - Chinese Social Media Chinese social networking habits: • 420 million Internet users in China, 75% of whom are under 34. • 221 million bloggers. • 222 million creators of online video. • 272 million instant messaging users. • 108 million online shoppers. • 265 million online gamers. • 321 million users who download music. • 40% of Chinese Web users are creators, compared with 21% of Americans. • hina’s virtual goods were a $5 billion market in 2009 C

We are seeing 2 types of Social Commerce Platforms

Social Media on eCommerce Platforms An example Taobao launched its social network called “Tao Jianghu”

eCommerce on Social Networking Platforms An example Starbucks partnered with iPartment (www.ipart.cn) to target young affluent Chinese women. You also see many examples emerging on Renren (a new Groupon like function has just been released).

How can I leverage Social Commerce? 9

Follow some simple guidelines

Listen Use social media analytics to understand what ‘netizens’ are doing and saying about social commerce? Monitor your competitors Fast Fact From a sample of 130 Chinese based company, 65% of respondents said they’re not using any listening tools to monitor what their customers are saying about their brand (SinoTech Group, June 2010 )

Understand … and how is your audience different from netizens in other markets and sectors. • What are their motivations for purchasing online? • How do they interact with different social media eCommerce channels? • How to they interact with each other across these channels? • What drives them to participate and spread messages? • What kinds of messages will they be receptive to? Fast Fact China’s largest Internet service portal is Tencent, with 1 billion accounts (485 million active users)

Be visible Find the right channel and audience.. trial a number of low cost/ effort pilot tests using difference social elements and techniques such as: • Social Ads & Apps • Forums & Communities • Social Shopping • Recommendations and Referrals • Ratings and Reviews • SMO (Social Media Optimization) Fast Fact 117 million connect anonymously via bulletin board system (BBS). They’re where people go to find topic-based communities and where consumers talk about products and services.

Use incentives Why should netizens engage with your brand and spread your message? Is it social currency? Opinion leadership among peers? Timely and compelling content? Access to exclusive promotions? Incorporate incentives that will drive interest and participation. Fast Fact China is currently the fastest growing and second largest luxury goods market in the world, second only to Japan. It is expected to reach the number one spot by 2015. (China’s National Bureau of Statistics, 2010)

Gain Trust Be authentic and transparent in communicating across social media. Try to add legitimate value to netizens’ online experiences. Most importantly, don’t try to deceive this group– they are smart and it will only lead to backlash and reputational damage. Fast Fact Zhenai, the largest online dating site in the world, has 22 million accounts. Matches are made via 350 dating counselors who get direct feedback that improves users’ dating and success rates. Prices start @ $450-600/month

Social Media is changing rapidly.. What Should I Measure?

Defining KPIs When defining KPIs, follow these guidelines: • Choose metrics that actually translate into business context – quantitative & qualitative • Define more than just “attention” metrics • Define KPIs that are actionable • Don’t just create “blanket” KPIs • Remember: it’s okay to be unique

Examples of Actionable KPIs • Number of people in a specific location who follow us on a micro- blog (i.e., Sina in China or Twitter in West) • Reduction in support costs • Number of product improvement suggestions from renren fans (or Facebook in West) • Increase in product reviews & ratings • Reduction in sales cycles

Other KPIs to Consider • Volume of consumer-created • Interaction/engagement rate buzz • Number of interactions • Seasonality of buzz • Store locator views • Rate of virality • Registrations by channel • Embeds/installs • User-initiated views • Increases in searches • Attributes of tags • Ranking improvements • Demographics

What tool can I use for Social Media Analytics in China?

SinoBuzz™ is an online reputation management solution, a powerful tool for monitoring and managing online brand, measuring public awareness, sentiment, influence, and tracing authoritative sources. [www.sinotechgroup.com.cn] It provides insights into customer retention and loyalty through analysis of customer comments towards brands, products, services and sponsored events.

outperforming our competition Beijing: +86 (10) 6561 5818 Shanghai +86 (21) 3363 2739 Email: info@sinotechgroup.com.cn Web: www.sinotechgroup.com.cn @sinotechgroup sinotechgroup sinotechgroup sinotechgroup

http://www.sinotechblog.com.cn	61
http://socialmediainfluence.com	46
http://thoughts.vivianpein.de	17
http://letsgosocial.nl	7
http://posterous.com	2
http://sinotechian.blogspot.com	1

An Introduction to Social Commerce in China

by Dr Matt McDougall on Sep 08, 2010

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