WeChat, developed by Tencent, operates as a mobile social operating system, prioritizing user-friendly design and continuous micro-innovations to enhance the mobile experience. It has evolved from basic messaging to incorporate various services like gaming, ecommerce, and payment solutions, effectively creating an ecosystem that integrates multiple functions within one app. With significant user growth and strategic pivots, WeChat has positioned itself as a dominant platform in the mobile internet era, outpacing competitors by fostering engagement and leveraging social dynamics.

1. WeChat – “the way you live”
Strategy
• Developed by Tencent, but completely
separated from hugely popular QQ which
is PC client. New look and feel and
extremely user-friendly.
• Take mobile platform as first-class citizen,
with continuous improvements through
micro-innovations.
• Actively building up WeChat ecosystem
with a goal of providing “the way you live
in mobile internet era”
• Monetize through social gaming, virtual
goods, shopping which are build on top of
WeChat ecosystem
• 2014 outlook: leveraging the leading
communication and social platform, 1)
support gaming, entertainment, media. 2)
promote the app store and app
distribution platform 3) build mobile
eCommerce and O2O eco-system 4)
promote WeChat in international market,
5) promote Tencent payment solution by
subsidy
Product Insights Design Philosophy
Mobile handsets as communication tool, by
nature, serves the “connected people” instead
of individuals. Therefore, to design a great
product, the key is to understand the behavior
of this “swarm” of people, then design a
product to serve them, and predict the social
dynamics changes when more people get
involved. The thinking is heavily influenced by
Kevin Kelly’s famous 1995 book “Out of
Control: The New Biology of Machines, Social
Systems, & the Economic World“
• App, not web
• Design for human natures: vanity, laziness,
greed
• Fun is better than functionality. A product
has to be fun and cool to get word and
mouth effect and go viral
• Design UI around functionality not the
other way around
• Focus: One app one key function, hide
secondary/supporting features
• Hide technical details
• No customization, one design for everyone
Sources: Internet;
• MARKET POSITION: 355M+ monthly active users
(Q4CY13 financial statement released in March 2014).
Nov 2013 official figure: 150M DAU. 100M overseas
registered users. Public account exceeded 2M, with
daily increase 8K
• WECHAT did not get everything right at first, it took
several pivots. WeChat 1.0 is a Kik copycat, assuming
people would love the free text message. However
that did not fly as it was not the pain point for Chinese
customers with most carriers providing low cost sms
plans. WeChat 1.2 pivoted to picture sharing,
assuming that could be another killer feature in
mobile internet era, market did not respond favorably.
WeChat 2.0 (launched 5/10/2011) pivoted with voice
messages, together with “short circuit” of contact
connect. WeChat got a lot user attention and started
word of mouth effects. Baidu index below shows this
dramatic change.
• WECHAT IS NOT JUST COMMUNICATION SERVICE
BUT SOCIAL OPERATION SYSTEM. Unlike other similar
apps like WhatsApp, Line and Skype, WeChat is longer
positioning itself as communication tool, but claim “it
is the way you live in mobile internet era”. By open up
public APIs, and introduction of public account feature
(each public account is a lightweight app on WeChat,
e.g. Red envelop, didi taxi) and mobile payment. Users
start to realize they can do a lot of things on WeChat,
like hailing a taxi, pay the taxi fee, pay mobile bills,
shopping and social gaming. WeChat is becoming a
social operating system one layer up of
Android/iOS/WP. It is a paradigm shift and posing
threat to other verticals: payment, eCommerce.
Success Factors
• Design for simplicity, fun and human nature,
e.g., voice message saving input complexity, drift
bottle and shake are fun. Very helpful in user
acquisition.
• Establishing social circle by contact “short
circuit” to improve user stickiness and therefore
user retention
• Huge user base from QQ ecosystem to jump
start
• After accumulating significant user base, build
up WeChat ecosystem with public APIs, public
accounts (lightweight wechat “app” like Hail a
taxi by didi, Red envelop), payment, shopping,
Dianping (Chinese version of yelp). A lot of
online to offline scenarios are light up and can
be completed without leaving WeChat

2. WeChat – In Geoffrey Moore’s “the 4 gears”
Enlist
“You need to get a viral process going where
your most engaged users actively proselytize
on your behalf. Communication apps have a
big advantage here, as they are naturally viral”
AcquireEngage
“Develop a digital experience that engages end
users in a deep way.”
Jan-2011 WeChat 1.0
May-2011 WeChat 2.0
Talkbox like voice message
Oct-2011 WeChat 3.0
• Shake
• Drift bottle
• Look around
Apr-2012 WeChat 4.0
• Path/Instagram like photo sharing
• Public API
July-2012 WeChat 4.x
• Video chat
• Picture transfer from PC to Phone by shaking
• Real time audio
• QR code enhancement
• Navigation via location sharing
Aug-2013 WeChat 5.x
• Sticker shop
• Game center
• Payment platform
• Service account: taxi, red envelop, shopping…
Sources: Internet;
Monetization
“Monetization comes in many forms.
Indeed, the more technically accurate
word to use here is Convert. At some
point, a high volume of engaged users
need to be put in service to an economic
outcome. “
Monetization attempts starts since 5.0
with selling Stickers, social gaming &
virtual goods, payment platform and
service accounts
“Drive traffic to your experience at an accelerating rate.
Begin somewhat slowly to confirm that your
engagement gear is still spinning freely with these new
users. Once you are confident engagement will scale,
then drive acquisition as fast as you can afford.”
• Talkbox like voice message + contact short circuit in WeChat 2.0 the first time increase WeChat’s
mindshare, evident by Baidu index in May-2011. Registered user increased to 15M from 5M
• Stranger social features like “look around”, “Shake”, “drift bottle” ignite another viral user acquisition,
by end of 2011, registered user increased to 50M+, by March-2012, registered user increased to 100M
• By Sept-2012, it was announced registered user increased to 200M by added social sharing feature
“moment” in 4.0
• By Jan-2013, it was announced registered user increased to 300M
• By Oct-2013, registered user exceeded 600M, daily active users exceed 100M
• Jan-2014, Chinese new year, “Red envelop” feature drive the # of user binding their bank card, Jack
Ma – CEO of Alibaba called it “pearl harbor attack” on Alibaba’s payment vertical. 5M participants
with 20M+ envelops exchanged