This week, WeChat released its official impact report for 2018! Some of the key highlights of this report were –
- WeChat-driven information consumption reached RMB 209. 7 billion, making it accountable for 4.7% of China’s total consumption.
- WeChat accounted for 34% of the total data traffic of users
- WeChat drove RMB 333.9 billion traditional consumption, covering travel, food, shopping, tourism, etc.
- WeChat contributed the employment of 20.3 million people in 2017. This figure is double of what was recorded in 2014
- The number of stores accepting WeChat Payment in Japan was multiplied by 35 in 2017
WeChat’s impact on consumption
Making up for 4.7% of China’s total data consumption, WeChat-driven information consumption reached RMB 209.7 billion in 2017. In total, WeChat accounts for 34.0% of China’s total mobile traffic. Consumption through WeChat has also increased in traditional sectors, increasing by 22.2% in 2017 to 333.9 billion RMB. It was also found that WeChat accounted for a higher percentage of data consumption among an older generation as compared to the younger ones.
In addition, WeChat has also created employment for 20.3 million people in 2017, including bloggers and entrepreneurs. Many WeChat businesses created by these entrepreneurs now have the opportunity to become million-dollar brands. According to WeChat’s data, there are 20 million official accounts on WeChat, of which 3.5 million were found to be active in September 2017.
Social Impact of WeChat
In 2017, the number of people making donations to charities through WeChat reached a record high of 40.3%, around twice the 2015 figure. The number of WeChat City Service Users has also doubled between 2016 and 2017.
WeChat’s impact is particularly strong in the healthcare industry, where the average waiting time has reduced by 43.6 minutes in institutions that have implemented WeChat.
For users under the age of 18, the penetration of WeChat pay is at its highest with a notable 97.3% in 2017. The older generation is still behind in these numbers with a penetration rate of 46.7%. In everyday situations such as at the grocery store or restaurants, payment using WeChat pay has almost doubled, making it the most popular use of this feature.
What’s more remarkable is the growth of WeChat pay outside of China to cater to the needs of Chinese tourists. In Japan, the acceptance of WeChat pay by local stores has increased by 35 times in 2017.
WeChat official accounts
The usage of WeChat official accounts has grown steadily in the past year. WeChat has worked has reached a user count of 30 million from 1.5 million enterprises. WeChat official accounts have also been satisfactory to 34% of the operators, who have claimed to have reduced 30% of their cost using WeChat.
Mini programs have also seen an increase in adoption with 500,000 of them created in 2017. E-commerce application Mogujie stated that their conversions on WeChat has been double of their conversions on their native platform, with group buying contributing to more than 70% of the new purchases.
Yonghui Superstore also saw a quick digital conversion of its users from 30% to 87% after adopting WeChat mini programs.
In conclusion, 2017 has been a remarkable year for WeChat in terms of its growth and adoption. While it looks like the social media giant has taken over the Chinese market, it is still looking for new paths to grow and stay updated. With over 1 billion monthly active users, there is still a lot to come from WeChat in the coming years.