Wechat insights out of Tencent’s latest earnings report.
“Chinese people spend more money traveling than buying luxury handbags” –Qunar.
JD opens its Japanese mall.
Wechat insights out of Tencent’s latest earnings report. By the end of Q1 in 2015, Wechat have 549 million monthly actively users, with the male female ratio being 1.8:1 or 64.3% of male and 35.7% of female users. Among the 549 million, 400 million users have WeChat payment.
The average age of WeChat users is 26. 97.7% of its users are under 50, while 86.2% are between 18 and 36.
80% of the high-net worth group in China use WeChat. 25% of WeChat users open Wechat more than 10 times every day.
WeChat drives 11 Billion Yuan ($ 1.8 billion)worth of consumption with entertainment accounting for 53.6%.
“Chinese people spend more money traveling than buying luxury handbags”–Qunar.Ctrip.com International Ltd (CTRP) announced Friday morning that it has acquired a 37.6% equity stake in eLong (LONG) for approximately $400 million.
Prior to the acquisition, Ctrip’s main competitors in China included Qunar and eLong and Qunar was in talk with eLong on similar deals. Zhe Xibo, General Manager of Hotel Business Unit of Qunar, which is owned by Baidu, China’s largest search engine, said in a letter to Qunar’s employees to explain why Qunar had given up acquiring eLong, that it took three to six months to acquire a listed company and Qunar’s Hotel Business unit growth rate is far higher than Ctrip and eLong. “Qunar will develop a market of equal volume to eLong within 6 months with the same account of capital.”
Qunar is going to have the investor conference today at 8pm EST to discuss its Q1 earnings report. In its last earnings report, it reveals that rich Chinese consumers are more willing to spend money traveling both domestically and abroad rather than buying luxury handbags and watches. “We find Airbnb, Hotel.com and other travel related U.S. agencies have been actively reaching out to the Chinese market and looking for potential consumers through multiple marketing and branding channels.” said BorderX Lab co-founder and CEO Albert Shen.
In March, French fashion house Chanel increased prices in Europe while slashing them in China in a bid to eliminate a growing price gap between Europe and Asia.
JD opens Japanese mall. JD.com, Inc. (JD), today announced the launch of Japanese Mall, a new channel on the company’s cross-border platform dedicated exclusively to sales of authentic imported Japanese products, which covers mainly maternity, baby products, nutrition, food, cosmetics, apparels and luggage bags.
This move comes after reports last Friday, suggesting a potential new tie-up between Alibaba and Yahoo Japan to bring more Japanese imports to China.
As Alibaba offers all kinds of free marketing campaigns to renounced global brands to motivate them to open Tmall stores, JD offers the first 100 Japanese participant a free membership on JD Japanese Mall.
Jumei International Holding Ltd (JMEI), who has put enormous effects on cross border experienced a sharp tumble on the stock market over concern that China’s tax cut on imported consumer goods will reduce the pricing advantage of domestic online seller of beauty products. The same concern would be shared with JD.