The following is Part 6 in a multi-part series about the rise of WeChat, the popular mobile instant messaging service owned by Tencent.
By Lanie Nie
WeChat builds up payment capabilities
WeChat has played a key role in Tencent’s (HKEx: 700) recent efforts to build a “federal republic” on the mobile Internet. That interpretation comes from Cheng Lingfeng, a China tech reporter and former Tencent employee, describing Tencent’s strategy of selling stakes to close partners who promote WeChat Payment, a new service that allows users to link their bank cards to their WeChat accounts to facilitate online transaction payments. Such linkage gives WeChat users easy access to selected paid add-on services like shopping, mobile top up and taxi booking. Read Full Post…
The following is Part 5 in a multi-part series about the rise of WeChat, the popular mobile instant messaging service owned by Tencent.
By Lanie Nie
Tencent targets smart partnerships
Venture capitalists on Sand Hill Road always ask young entrepreneurs with little business knowledge what they would do if Facebook did the same thing, and similar concerns exist for China start-ups in dealing with the “Tencent factor”. With the strategic goal of providing users with “one-stop online lifestyle services”, nearly everything has become a must-have for Tencent, making it a public enemy for the entire community of Internet-based service providers in China. Read Full Post…
The slower summer months haven’t cooled down appetite for new M&A among Chinese Internet firms, with word that e-commerce leader Alibaba is chasing a massive investment that could see it purchase a stake in US social networking high-flyer Snapchat. At the same time, software security specialist Qihoo 360 (NYSE: QIHU) has just announced new plans to raise up to $1 billion through a convertible bond offer, in what also could be the prelude to a major new acquisition. Read Full Post…
The following is Part 4 in a multi-part series about the rise of WeChat, the popular mobile instant messaging service owned by Tencent.
By Lanie Nie
WeChat as a potent business partner
As China ended last year with an online population of 618 million and more and more people access the Internet over their smartphones, it has become evident that the Internet will play a growing role in the way Chinese people live and do business. Internet thinking has emerged as a concept that empowers newer start-ups to challenge older businesses not necessarily via cutting-edge technology, but more by rethinking the whole business in the context of a more connected world.
Many Chinese firms are thrilled by the widely-touted story of Xiaomi, the 4-year-old smartphone maker that calls itself an Internet company. Xiaomi is already outselling Apple (Nasdaq: AAPL) in its home market using a web-only marketing strategy, redefined cost structure, fan-centric product philosophy and flat organizational composition. But Tencent (HKEx: 700), China’s undisputed Internet leader with a market cap that is challenging global online retailer Amazon (Nasdaq: AMZN), labels itself as an online company that partners with old industries, with service accounts hosted by WeChat as the magic tie in that relationship. Read Full Post…
The following is Part 2 in a multi-part series about the rise of WeChat, the popular mobile instant messaging service owned by Tencent.
By Lanie Nie
Wechat finds tipping point with new functions
If WeChat’s story can be divided into two parts, the big dividing point would be the launch of its 5.0 version on August 5, 2013. Before that, users of the popular mobile chatting app were mainly focused on fancy gimmicks like “shake“, “people nearby” and “drift bottle” that help users make contact with a few strangers. The hyperactive “moments” feature is also very popular, allowing users to share photos, status updates, links and locations with friends; and so were “official accounts” that enabled business owners, media outlets and even individuals to push out messages and articles to their followers.
But after the launch of WeChat 5.0, people began to wonder if the real ambition of this chatty app might go beyond its dominant role as a center for Chinese socializing on mobile. With a newly introduced mobile payment solution and an enhanced “scan” function that is no longer restricted to QR codes but also applicable to bar codes, book covers, street views and even basic English to Chinese translation, WeChat showed a strong interest in bringing out the next generation of shoppers in its post-5.0 era. Read Full Post…
The following press releases and media reports about Chinese companies were carried on July 1. To view a full article or story, click on the link next to the headline.
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Sex Video New Twist In GSK (London: GSK) China Bribery Scandal (English article)
New data is showing an acceleration in the decline of text messaging (SMS) in the new age of over-the-top (OTT) services like WeChat, underscoring the urgency for China’s 3 telcos to find new replacements for this important revenue generator. The decline of SMS isn’t new, and has been discussed by all 3 of China’s state-run telcos at one time or another over the last 2 years. The issue was also at the center of a high-profile dispute between China Mobile (HKEx: 941) and Tencent (HKEx: 700) in late 2012, involving the rapid rise of WeChat. But the latest figures do point to an acceleration of the decline, which will lead to hundreds of millions of dollars in lost revenue for the big telcos. Read Full Post…
I’ll be a bit whimsical on this final day of the week with a prediction that a sale could be looming for social networking (SNS) site Kaixin, following reports of strong growth for the company’s online gaming business. Anyone reading this is probably puzzled, unsure about the relationship between a growing gaming business and a company getting acquired. I’ll explain all that shortly, but will end the suspense now by saying the potential buyer would be Internet titan Tencent (HKEx: 700), which shares a number of links and other key qualities with the much smaller Kaixin. Read Full Post…
Internet titan Tencent (HKEx: 700) is wasting little time in its search for synergies with its growing stable of strategic partners, with word of a new tie-up between its popular WeChat instant messaging service and its search partner Sohu (Nasdaq: SOHU). The new partnership will see WeChat provide exclusive access to its huge volumes of user-generated content for indexing by Sohu’s Sogou search engine. The alliance comes just 9 months after Tencent and Sohu announced an equity tie-up that saw the 2 companies combine their search businesses to form China’s third largest player. Read Full Post…
The following press releases and media reports about Chinese companies were carried on June 10. To view a full article or story, click on the link next to the headline.
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Legend Holdings Profit Up 20 Pct In 2013, Becomes Limited Stock Company (Chinese article)
China Mobile (HKEx: 941) Takes 18 Pct Stake In Thai Carrier True Corp (HKEx announcement)
The alliance between Tencent (HKEx: 700) and JD.com (Nasdaq: JD) formed earlier this year is quickly revving up to challenge Alibaba’s dominance of China’s C2C e-commerce segment, with word of 2 big new moves in the space. This new alliance immediately challenged Alibaba shortly after its formation, pooling the 2 companies’ resources to create a player with a quarter of the market in the lucrative B2C space that sees major retailers sell their products to consumers online. But Alibaba still has near-complete dominance over the equally lucrative but more fragmented C2C space, sometimes called online auctions, which sees individuals and small merchants sell their products to consumers online.
