Taking a look at the social media landscape in China

I was at a talk on how internet word of mouth (iWOM) works in China a couple of weeks ago. There were a few noteworthy things that Sam Flemming, CEO and Co-Founder of CIC, said:

1. Social media is very much existent in China, but it’s like it’s on steroids: 298 million internet users, 105 million bloggers, 91 million members on their Bulletin Board Systems or BBS (discussion forums around different topics), and 58 million people on social networks. It’s all about perspective: Facebook has only 200 million users WORLDWIDE. 

2. BBS have a huge influence on consumer purchases – over 80% look at reviews there or go there to ask questions before making a purchase. Much as I like Amazon, that’s not where I go to decide what to buy: but could Amazon or something like it channel prospective buyers in such vast numbers successfully?

3. QQ, China’s largest social network, has a revenue model that surprisingly very few other social networks have replicated: they don’t make money off ads but through digital micro-transactions with their own currency: QQ Coins. In fact, QQ Coins have become so successful that China’s central bank is considering cracking down on it because of its increasing use to buy real-world goods. 

4. Group purchases, in the model of Dell Swarm, are on the rise. This has interesting implications for brands, who can easily reach their target audience on BBS. 

5. Brands get inspiration for new products by tracking discussions on these forums. When Chinese sports apparel brand Anta wanted to create a new line of products for their ambassador, basketball player Luis Scola, they realised that fans were referring to him as ‘Four Carat’ on the web, so created a line inspired by this which went on to become a success. 

6. This is a phenomenon which clearly marks the difference between the East and West: more people access the internet on their mobiles than they do on a PC. 

Here is CIC’s White Paper on the role of iWOM in making purchase decisions, which Sam presented:

..and here is another interesting one on the development of iWOM and online communities in China.

There is so much talk about Facebook, Twitter and the like that sometimes we forget there are much more wide-reaching platforms – in a different part of the world. Surely there are lessons there that we’re not taking the time to learn?