eMarketer: WeChat’s diverse and powerful functions attract many users to use it frequently

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When Tencent launched WeChat in 2011, it was not aiming to build China’s largest social network, because Tencent already had QQ at the time. Although QQ was a PC-based application, mobile usage was growing rapidly, so Tencent organized an external team to develop WeChat, focusing on the mobile platform.

In the past five years, WeChat's user base has continued to grow. In March 2016, Tencent reported that WeChat's global active users had exceeded 760 million, an annual growth rate of 39%. According to estimates by third-party data agencies, more than 90% of WeChat users are in China. WeChat users also visit frequently. According to a survey by Tencent Think Tank and CAICT, more than 60% of users log in to WeChat more than 10 times a day.

WeChat is popular in China mainly because of its practicality. It has many functions, which may even make people wonder whether it is a social platform, a mobile portal, or an operating system. Alex Mecl, WeChat Global Strategic Advisor, said, "The positioning of WeChat depends on how you use it and what you plan to use it for. I call it the operating system of life. It is not just a social platform, but a new lifestyle. It connects people, services, brands and networks, and even offline services." The wide practicality mainly comes from WeChat's "app within an app" strategy. Unlike most smartphones in the world that have social, instant messaging, finance, travel, fitness, ride-hailing and other applications, WeChat users only need WeChat to get all services. WeChat already has 12 million public accounts, and will reach 16 million by the end of this year.

Enterprises can sell products to WeChat users, manage customer relationships, provide promotions and discounts, etc. through official accounts. These enterprise official accounts cover almost every industry and service. For example, users can buy movie tickets, book flights and hotels, pay restaurant bills, buy food, books and clothing, book taxis, register for mail, make peer-to-peer payments, play games, and so on.

WeChat is indeed more than just a social network, but a mobile ecosystem with an inclination towards e-commerce.

WeChat already has a built-in mobile payment platform, WeChat Pay, which is connected to the user's bank or credit card, allowing users to experience seamless purchases of services and products with just a click. These public accounts are all audited, and users trust the Tencent platform and are happy to receive easy and convenient services.

According to Demystify Asia, 200 million people have used WeChat Pay at the beginning of this year, and more than 300,000 offline stores have accepted WeChat Pay in February 2016. Demystify Asia also predicts that WeChat's average revenue per user (ARPU) has exceeded US$7, and more than 8,000 brands are now using the WeChat app.

199IT.com Originally compiled from: eMarketer. Please do not reprint without authorization