Menu
Tencent to focus WeChat on markets where competition isn't entrenched

Tencent to focus WeChat on markets where competition isn't entrenched

Tencent last year launched its biggest marketing campaign to promote WeChat outside of China

China's Tencent isn't letting up on international marketing for its WeChat mobile messaging app, but signaled its plans to avoid competing in markets where rivals such as WhatsApp already have a strong user base.

Growth for WeChat, also known as Weixin, continues to remain strong, with its monthly active users reaching 355 million in the fourth quarter, Tencent said in an earnings call on Wednesday. The high growth marks a 121 percent increase in user growth year-over-year.

Many of WeChat's users come from Tencent's home market in China, where the product has become one of the most popular mobile apps. But starting last year, Tencent launched its biggest international marketing push for WeChat, promoting the app in 15 other markets including Brazil, India and Mexico.

Tencent spent up to US$200 million last year on WeChat's overseas promotion, said James Mitchell, the company's chief strategy officer.

"For 2014, we will probably be spending a similar amount," he said. "But we will be targeting it more on markets, where we see traction and opportunity."

He added that the global campaign took off in certain markets, but other countries proved "less hospitable," without elaborating.

WeChat is just among several mobile messaging apps vying to attract users across the world. In February, Facebook announced it would buy rival WhatsApp, in the hope it could grow its user base from 450 million to 1 billion.

Similar messaging apps such as Japan's Line and Korea's KakaoTalk are also expanding across Asia, where Tencent's WeChat is hoping to gain users as well.

The Chinese company, however, expects it will take time for WeChat to gain more prominence. New apps, no matter how good they are, will struggle to make "dramatic progress" in markets already dominated by a rival product, Mitchell said.

Tencent will instead focus on markets where WeChat is already gaining ground, or on "greenfield markets" that have less competition, he added. Mitchell noted that WhatsApp is well established in Germany, Spain and Mexico.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags mobilemobile applicationsTencent

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments