University WeChat Market Report: China Market Analysis

This market report provides a comprehensive analysis of WeChat, the dominant multi-purpose social media, mobile payment, and messaging app in China. The report examines WeChat's user base, daily activity, and key features, highlighting its significance as a 'One Stop Shop' for Chinese citizens. It delves into the PESTEL factors impacting SMEs in China, comparing WeChat with WhatsApp, and exploring business opportunities, particularly in exporting from China. The report includes references and provides a detailed overview of WeChat's role in the Chinese market, based on the assignment brief from the Journal of Asia-Pacific Business and the course modules. The report offers insights into market entry strategies and consumer behavior within the WeChat ecosystem.

Running head: MARKETS OF ASIA.
Market report of WeChat in China
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1Market report of WeChat in China
WeChat is multi puropose social media, mobile payment and messaging app of China. It
was released on 2011 first and within 2018 it became one of the largest app that stands alone
with active users of one billion. It happens to an app for China’s everything which has functions
in wide range.
The recent report of WeChat’s data in the year if 2017 showcases that in an average day,
over 902 million users log in and over the year, 17 percent usage has increased with 88 billion
number of messages sent on a daily basis. It has monthly official active accounts of over 3.5
million and rises 19 percent over the years (Hong, He and Qiu, 2018.) Initially, WeChat
produced that data which does not have any third party or independent number of audits.
Keeping that in mind, the reports of WeChat tend to be more qualified and in depth in regards
China. This happens purely because the status and role acts as a pivot for this platform where
billion eyes are watching things.
WeChat tops 900 million users
The platform of WeChat in China claims to be the most used app. It has more than 903
million users on a daily basis who are important undeniably. The acquisition of their user has
been enormous over years with new updates and features taking place frequently. The main goal
for this platform is quite predictable which is being the ‘One Stop Shop’ amongst the citizens of
China. It is way more than just an app for social networking. It is rather an app that provides
integrated service catering to the lifestyle of local Chinese citizen. Considering the services of
vast array, ranging from messaging to e-commerce, booking of tickets, sharing photographs, geo
location, DIDI services of taxi, mapping, finance, dating, news and so on. News happens to be
the tip of ice berg especially (Chu, Lien and Cao, 2019.) The arguably more interesting part is
number of users who are senior in this platform. There are around 50 million number of people

2Market report of WeChat in China
who happen to be in between 55 to 70 years age. This gives an evidence of elderly citizen being
highly digitalized and socialized. WeChat is getting more associated with the older demographic
slightly, while apps like QQ and Weibo dominate the market in terms of engagement for younger
audience (Gan, 2017.)
PESTEL Factors of China for SME
The SMEs of China focus on the markets that are regional for avoiding competitions with
the SMEs of Hong Kong directly. In the global market, the counterpart of Guangdong is in
turbulence with the market nationwide. In order to market own brands, the SMEs of China will
have to observe the market throughout by using superior strategies of market into the competitive
markets. The SMEs of China does not have any superior position in competition with that of
their counterparts of Guangdong. Although they utilize surveys of customer satisfaction and
claim for investigation in helping them to develop services and products along with a well-
structured strategy of marketing to gain shares in the market. The enterprises of china, which are
owned traditionally by the state, are structured in a way that facilitates improvement of
hierarchical structure of organization joint process of decision making. However, proper care
must take place in assuming that tools of marketing along with techniques tend to be applicable
across every place. The influence of socio-culture and factors of mediating environmental be
considered when an attempt is taken to understand the chinese practices of marketing in respect
to small firms specially when the country is into a phase of transition of turning an economy of
socialist market (Murphree, Tang and Breznitz, 2016.)

3Market report of WeChat in China
WeChat Vs WhatsApp
Both the platforms of WhatsApp and WeChat happens to be real time chatting platforms used by
millions of people irrespective of any SMS cost. These two apps are somewhat similar but then
different as well. WhatsApp has active users of over 1.5 billion majorly from African and
Western countries. However, WeChat dominates the market of messaging application in China.
Only few people in outside China use WeChat (Chu et al. 2015.)
Marketing Criteria between China and India
The market of India and China happen to be attractive markets because of the following factors:
 Growth and size.
 Innovation.
 Profit.
 Cost Savings.
 Massive Markets.
 Global competitors.
Business Opportunity
One of the real business opportunities can be the business of exporting from China because the
growth and size of the country’s population make it possible to get more workers. Along with
that, china happen to be very innovative with its products which can make the products export
globally generating fair and good amount of revenues. There are massive markets which are
interested to buy products from China. China happens to be a country with varying products and
innovation that might help in generating export business (Sahasranamam and Sud, 2016)

4Market report of WeChat in China
WeChat Link
https://www.wechat.com/en/

5Market report of WeChat in China
References
Chu, D.W.K., Ng, K.K., Lai, I.K. and Lam, P.W.M., 2015, July. Analysis of student behaviors in
using WeChat/WhatsApp for language learning at diploma level in Hong Kong: A pilot
test. In 2015 International Symposium on Educational Technology (ISET) (pp. 104-108).
IEEE.
Chu, S.C., Lien, C.H. and Cao, Y., 2019. Electronic word-of-mouth (eWOM) on WeChat:
Examining the influence of sense of belonging, need for self-enhancement, and consumer
engagement on Chinese travellers’ eWOM. International Journal of Advertising, 38(1),
pp.26-49.
Gan, C., 2017. Understanding WeChat users' liking behavior: An empirical study in
China. Computers in human behavior, 68, pp.30-39.
Hong, J., He, J. and Qiu, X., 2018, December. Research on Influencing Factors of Users'
Adoption Intention of WeChat Marketing. In 2018 International Joint Conference on
Information, Media and Engineering (ICIME) (pp. 152-157). IEEE.
Murphree, M., Tang, L. and Breznitz, D., 2016. Tacit local alliance and SME innovation in
China.
Sahasranamam, S. and Sud, M., 2016. OPPORTUNITY AND NECESSITY
ENTREPRENEURSHIP: A COMPARATIVE STUDY OF INDIA AND
CHINA. Academy of Entrepreneurship Journal, 22(1).
Yang, X., Sun, S.L. and Lee, R.P., 2016. Micro-innovation strategy: the case of WeChat. Asian
Case Research Journal, 20(02), pp.401-427.

6Market report of WeChat in China