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The Ultimate Guide for eCommerce on WeChat (with Magento)

Posted in E-commerce on November 24th 2020
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Vice President and Co-founder at IT Consultis

About the Webinar

ITC & Magento Webinar, 2nd Session : "The WeChat Ecosystem: The Ultimate Guide for Magento on Wechat". Adobe Magento and ITC present how crucial WeChat is in China and how Magento and WeChat can be combined together to benefit your business effectively! Consolidate your understanding of the incredible power of Adobe Magento in China, learn how to build your Direct to Consumer (D2C) solution, and leverage your first-party data.

We will make sure to share with you all the secrets of Adobe Magento to help you succeed in implementing your business in China. We also realized a first webinar about how to leverage the Chinese Ecosystem with Magento. You can find it on our YouTube channel. Follow us through the 10 sessions to fully understand the e-commerce environment in China, leverage the power of Magento, and build your Direct-to-Consumer solution! Stay tuned for the next session! In one month from now, we will share with you how to use Magento with WeChat.

Click here to download the slides : Get the Slides for the Webinar " The Ultimate Guide to WeChat with Magento"

What are we talking about?

1. Intro Quick Summary of the previous Webinar

Quick intro of Adobe Magento

Quick intro of ITC About today’s session

Upcoming sessions

2. The WeChat ecosystem

The evolution of WeChat Opportunities

WeChat going cross border

What is WeChat Work Definition of a few other segments of WeChat

3. User Journey and Magento

Overall architecture - What is WeChat front end

WeChat Log in and tips

WeChat Notification

WeChat location

WeChat Pay

WeChat Address

WeChat Fapiao

Livestream

Magento chat or connection to other chat

Coupons on Mini Program

Tracking your Kuaidi

User Generated Content

Connecting your Magento to feed your social CRM and do your marketing automation right

4. What’s next?

How to go from WeChat to Douyin

Is Alipay the right choice?

Leveraging several brands with your Magento Commerce

Announcing next session

Questions answering

 

Transcripts

Aurelien:

Alright everybody, thank you for making some of your time on this Wednesday afternoon China time. I guess a few people are joining us from Europe as well. So this webinar is going to be recorded. I am here with Justin who is on Adobe Magento parts. We're going to go through a quick introduction afterwards. We know a few people are running late as it is often the case for this kind of event. Everybody is in a rush. But don't worry too much, this video as I mentioned is being recorded and you're going to have the chance to review it afterwards on Adobe's website as well as on YouTube .

Let’s start. We are together, with Adobe Magento and IT Consultis doing this series of 10 webinars explaining basically the Chinese E-Commerce private traffic area and why Magento has a key role to play in this area, for brands to have a direct connection with the customer and get the data in a very specific Chinese environment as we all know so we're going to review this in a second.

I'm going to start sharing my screen and then we're going to move on to the introductionaboutbothJustinandmyself. Somycameraisgoingtoprobablynot appear for a while but at least the screen sharing is going to be here. So thank you, this is as mentioned our session #2 and today it's going to be a big focus on WeChat. We all know WeChat is one of the key applications in China and we're going to see how it matters in terms of ecommerce. So Justin go ahead.

Justin:

Thank you for introducing me here. Let me quickly introduce myself. I'm Justin from the Adobe Magento team and my focus is actually in China. Everything about China and everything about Magento definitely come to me if you have any kind of question let me know. Starting talking about Magento here in China and globally basically I will see most of the people who join this review definitely know Adobe and Magento for a while, and definitely some of the people already know Magento. Globally, we actually are the number #1 platform. So, moving to the second slide we actually have a lot of clients but only put a few of the clients in these slides.

Actually they are tons of clients, sophisticated in some industries, or some areas you consider. You definitely come to us to let us know what kind of industry you are and what kind of question you have. We can come up with more case studies for you to better understand more about that. So one of the things is that in China we do have a lot of different kinds of things, so we can talk about more later. So, the first thing: we do have a lot of clients in there and we have lots of big names choosing Magento. And some of the startups are actually also choosing Magento.

One of the key reasons here, what we are showing here: actually Magento Adobe here is in the leaderboard. Adobe Magento is a leader and you are also able to find Gartner reports about that. So, basically we have startups just starting ecommerce and big companies even like Microsoft can also use Magento in China.

Aurelien:

I think to highlight what Justin is saying: one of the key advantages we see Adobe both for B2B platform or B2C platform is one of the top #2 leaders depending on how you consider the scale. One of the most important things that you probably know about is that Salesforce is not here in China, and at the moment especially for E-Commerce, for Salesforce Commerce. So, I think you know in China, if we look at enterprise level solutions Adobe Magento is basically the number one choice for you if you want to go for an international solution. So, moving forward, IT Consultis will be shortened to ITC for the rest of this presentation. Basically we're a team of 60 people working around three countries: China, Vietnam and Singapore. And we're serving clients in different various industries a little bit like Magento when it comes to luxury pharmaceuticals and the rest. What we do for a client is everything that is related to digital transformation; so Ecommerce digital transformation and everything related to data mapping and so on. All those kinds of things that companies need nowadays especially when it comes to the private traffic areas.

In our first session we reviewed what is the E-Commerce landscape in China and we reviewed the difference between the public traffic and the private traffic. Here a quick summary that we're going to see in the next slide and how powerful Magento is. If we need to sum it up we see that the Chinese ecosystem is very different from the global ecosystem. In China 22% of the revenues are made online versus 11%- 12% in the US. And then we see equivalence, for search that there's going to be Baidu for Google, Tmall JD for Amazon, and there are different payment methodologies and different social media.

One of the things we've seen in the previous presentation is that since 2000 basically the marketplaces have been dominant. So JD and Tmall have been like leveraging 90-95% of the market share and this market share is lowered to 85-80% depending on what kind of figures you're taking, on what brands, what companies have studied to build is actually sub-funnel because on the top funnel of the public traffic they are struggling.

Companies have very little data and they don't have the opportunity to do marketing automation, real loyalty programs and basically they are developing those sub-funnels which are called the private traffic funnel. It is where we're leveraging the WeChat ecosystem social CRM and marketing automation, WeChat groups, or managing everything through WeChat Work, through different techniques with different sales associates. But this is all as well related to WeChat. We have already reviewed those things quite a bit in Section 1. We reviewed Magento as a highly secure platform, and can handle hundreds of thousands of transactions a day fully compliant with the China cybersecurity law. This is one of the concerns we hear very often from the brands you know, “Is Magento China server security compliance and the answer is, “Yes” because it can be easily installed on-premise and Magento has a big community of developers in China and a lot of projects. So it means that all the APIs for Magento have been tested and interfaced already with Alipay with the WeChat ecosystem, and already installed quite a few times on different servers. It means that Magento is a China-ready solution.

About the speakers, Justin had the chance to quickly introduce himself. I'm going to go through it very quickly. Justin has 10 years of experience and has been working for several years before at Apple, and is now leading the effort for Magento and Adobe in China. And on my side I've been an entrepreneur, I am Vice President Co-founder of ITC, and I have been operating the company for 10 years. I am also part of several entrepreneurs groups and different organizations such as EO, French founders or French tech.

So the reason why we're doing those webinars is first of all to reveal how unique the Chinese market is #1 and #2 are more about how by using and leveraging Magento we can bring ROI to brands towards their digital transformation. And we're doing this for two groups of people so obviously for the people that are experts in China some of the things might look like a repetition for what could happen in different out of workshops. But for the people worldwide they're gonna discover an entire new ecosystem or ways of working with many programs and interfaces that they've never seen in the past. For the people in China it is going to be good to rebuild and review the foundations.

And for people globally I think it's going to be interesting to review the China ecosystem and obviously some of the people are going to be more or less tech or E-Commerce oriented. So, some people might feel more excited than others on those. So, we covered the first 2 sessions and obviously there's a few mores that are coming including another Webinar on Magento in WeChat. Then we're going to talk about social selling, something more technical about building the cloud infrastructure in China for Magento, how to interconnect your global ecosystem, everything about B2B. And then we're going to review a couple of case studies, successful projects we've built with Magento in China. This is the plan for today. We're going to review the WeChat ecosystem then we're going to dig a little bit deeper on Magento and WeChat. See how they are interconnected and as well as what's next overall for brands on their digital transformation journey.

So here WeChat has existed since 2011. And it started as a very small application just for exchanging messages and one of the things that made it so popular was actually the QR code. The QR code is something that we're going to hear a lot about. And this is something that is striking a lot of people when it comes to China. Everything is QR code based whether it is like how to add a friend or how to make payments. Everything needs to happen on a QR code. So, in 2011 the personal account was created and then you see that every year there were about one to two evolutions. Those evolutions are basically bringing WeChat to a place right now where people call it a “Super App” and we can even call it an “Operating System”.

A lot of people spend more and more time on WeChat right now in China. The figure is about 30 to 40% of the time spent by Chinese users is actually on WeChat. So, now for pillars about WeChat there's WeChat as an app messaging and on the other side there's everything that is related to the Mini Program.

For the people who don't know what the Mini Program is, we are going to review it a little bit and numbers are pretty impressive with 1.2 billion users for WeChat. Now, we have around 800 million users of the Mini Program. We have 2.5 million companies that are using WeChat Work and we're going to review what WeChat Work is about. And the last one is everything related to WeChat Pay. There are around 1 billion transactions that are happening every day on WeChat Pay and there are more than 800 million people using it. So reviewing a couple of those figures and summing them up we see that there is a pretty impressive amount of opportunities with 50% of the users opening the WeChat at least every 90 minutes.

I would say probably I'm opening mine every like 10 to 12 minutes and people are spending 77 minutes a day on WeChat versus 22 minutes on T-Mall or Taobao. So, it means like there's an opportunity for brands to captivate the audience whenever they're going to be on WeChat. And this is something that's obviously during a pandemic in the COVID PHASE, it has probably helped a lot, but everything in relation to the QR code economy and all the transactions are digitized. There are a lot of reports published this year and last year saying that all those transactions have been accelerated last year and especially this year during the COVID. With an increase of 26% year on year even despite a contraction of the GDP during Q1.

So as we mentioned earlier WeChat is almost an Operating System and it's continuing in that direction with further evolutions. Every month and every week there is an add-on to it and it is something that is not stopping anytime soon. Here are the different WeChat screens: first there is a Chat you get your moments a little bit like what you have on your Facebook or on your Instagram. You are going to have your Official Accounts, you're going to have the access to the Mini Programs.

You also have the list of the Official accounts, it is the list of all the brands you follow, and you have access to their Mini Programs. You're also going to have your WeChat pay screen, and then WeChat Work, which is actually a different application than WeChat that we wanted to show you here. And if you get into your WeChat Profile you are going to see why it is a super App: you can top up your mobile phone, you can pay your bills, you can book a Taxi (call “DiDi”) which is like the Chinese Uber, or you can book your flight tickets and even having your food delivered.

So everything can basically be done on WeChat. So let's review very quickly and with a quick animated video how an official account will look like. You can search for example this luxury brand and when you click on it you are basically going to enter that brand Official Account. You're going to be able to follow it and you can access different chats. Here we see something that is happening through social CRM, an initial message for specific marketing automation that potentially re-targets a user and gets data out of them. With the WeChat service accounts you can basically do some campaigns and this is something that used to happen a lot in the past, a little bit less right now.

Obviously, you want to work on your company brand awareness. A couple of years ago the goal was to have websites. Now websites are getting something that are existing, although Mini Programs are a must have in China. It's all about product education, pushing everything related to the latest news. Because you can interact only four times a month with your specific user via WeChat Official Accounts. You can only do four pushes a month and then we have the Mini Program. Then at the end you contact the customer service for booking an appointment and asking very specific questions. This is something that users are doing on the WeChat service account.

So, the Mini Program is like; when you arrive on it, you know the page of your brain has the opportunity to access the Mini Program. It is kind of a small Mini App where we like to share and that is also designed for E-Commerce. You feel you are on a website or an App but actually you're still using WeChat. We're going to see in a little bit how we can leverage the entire system here and how basically a Mini Program is structured.

We just saw how to access the Mini Program earlier. We access it from the Official Account page. To make it much more powerful there are so many access points for the WeChat Mini Program. One of them is accessing from the top via drop down of the WeChat home screen. You can also access them through the Official Account menu, or from articles, from a friend who's gonna share it on their moment for instance, or from a QR code also from other sources such as Weibo. WeChat and Weibo have now a partnership and you can open WeChat Mini Program from the Weibo App.

So, this is an extreme positive source of traffic from Weibo. A lot of brands are doing a lot of marketing on Weibo so it's very interesting to bring the traffic from Weibo to WeChat Official Accounts. We see on the third screen WeChat Work. There's an opportunity for people on WeChat work to share with a normal user or to share to another WeChat Work user.

One of the questions we receive a lot of time is: “Can WeChat help with cross border?”. So, there are basically two types of cross border, there is a cross border for the Chinese user. I am Chinese, I want to buy goods that are stored overseas and have them import. So that's not technically what we're going to review here but more the opportunity for you knowing whenever Chinese users are going abroad for those brands to have the opportunity to have the users paying through WeChat pay, or scanning accurate code. They also start to have a deep connection with these users in order to reach or get them whenever they're going to come back to China and then kick start transitions towards social Commerce that we're talking about today.

About one of the challenges that we've seen on the session 1: we talked about the challenge of remaining visible on T-Mall and the fact that a lot of brands were struggling tohaveapositiveROIonTMallorondifferentmarketplaces.Butit's also very complex right now for brands to attract the attention of users. Users are receiving hundreds of notifications a day. The push for the brand is going to be mixed at the same time with all the conversations that you have with other users. So, basically when we look at this report from Jing digital and digital luxury group we see that the opening rates in Luxury brands or in other industries has almost lost 4-5 points which is quite impressive. So, I think that marketers need to be very smart about it, in terms of what kind of content they're going to push, how this content is going to be targeted.

This is a challenge coming on WeChat. It is not going to be an easy challenge so there's a lot of things that need to happen for brands to be able to be successful. But an interesting case here is when we're talking about the E-Commerce. What happened during the last couple of months is that users were usually coming for company product information, information or customer service, but basically for the first half of 2020, 45% of the engagement was E-Commerce related.

So, that means 45% of the people that will come to your Official Account are looking for the possibility of buying something. This is where there is a tremendous opportunity. So, WeChat is much more than a messaging App, it's an entire ecosystem that people are using every day. And doing E-Commerce on WeChat has become one of the key finals if not the key finale when it comes to Private Traffic and Magento. We're going to see how Magento can leverage within this funnel.

Let's jump to point #2: the User Journey and Magento. So, this is a graph that we've seen on our first webinar so if you look at the right side of the graph you're going to see the marketplaces, your loyalty program, your store POS... So for most of the brands those are existing assets including existing infrastructure including the OMS, ERP the WMS and CRM. Lot of brands have been investing for a couple of years but now they are thinking how can I move forward with this Private Traffic area. The way to move forward is actually to leverage obviously, leverage as much as you can the existing infrastructure in terms of order management system, in terms of warehouse management system and to make sure that you are not going to have to invest too much in new store opening, in terms of manpower on the brand side.

So, you want to be sure that you're going to create your backend for E-Commerce and then probably initiate with a WeChat Mini Program. At this point you need to go crescendo one step at a time and with the objective ensuring that your new installation will be able to be operated by the people who are currently managing all your receive Order Management System and Warehouse Management System. Obviously in the future if your brand is extremely successful you can think about Alipay Mini Program or other kind of front end or in-store experience but to kickstart depending on the brand WeChat will make sense most of the time. So, when you look at it basically an architecture in the West versus an architecture in China, you will have your Magento back-end that will connect you know through API or through normal HTML CSS, with the browser or through a web app. Whereas in China, the Mini Programs on WeChat have a very specific front end which is called the WXSS & WXML and have very variation of the HTML in this CSS.

So this is something obviously that we need to understand and WeChat has its own ecosystem in its own APIs and we're going to review a few of them. They need to be leveraged in order to make the User Experience successful. Obviously we can leverage the infrastructure that was built on the left and add to this if everything is being done in a headless way or everything has been done through API. This means adding another front end that is going to be a Mini Program should not be something that will be complex. So here I'm talking for companies that have global infrastructures and at some point we'll want to leverage those global infrastructures and install them in China in order to serve the Chinese markets.

Magento brings to the table a lot of things and we have those two slides talking about it: more data control and collection of data, increased control of the sales and fulfillment flow, easy login registration with WeChat earlier on and obviously APIs. And one of the great things is that Magento has been here for more than 13 years. There are more than 300,000 developers globally using Magento and there's more than 3600 extensions on different marketplaces. As for today, there are more than 250,000 websites that are running on Magento. So, I think that you know like that is a very safe investment.

Let's review a couple of APIs here that are very helpful to make the user journey for people in WeChat Mini Program as easy as possible. One of the first when login Mini Program is going to be everything related to blogging. When you arrive on it then the first thing that you're going to be asked for is to login on that particular Mini Program and share as well your phone number in order to access that specific Mini Program that we see here.

The second one which can be very interesting is to have location-based services. Here we see that with a Mini Program including a store locator, or a warehouse locator in that particular case, you can easily check what warehouse is going to be the closest to you. And this is one of the things that you have the chance to do on WeChat. When it comes to E-Commerce you definitely have the opportunity to push different products with different coupons to two different people at different times. So, if you think sometimes in North of China versus south of China where the climate might be different, this is something we might want to leverage.

Then, there's going to be the profile page that we see on a Mini Program. Under the profile page you're going to have the opportunity to see different pages that you have here including the order details the past order that you had like potentially store locator can be put here, or customer service if you want to start interacting with your user at this particular points, and obviously for each of these is going to be specific APIs. So, basically one of the things that works really well on WeChat is the opportunity for any Mini Program to start interacting with the user at this particular point, if integrated in a proper way.

For all the Mini Program, to make sure that the user is going to be able to retrieve the delivery information or the invoice information-that we're going to see on the next slide- the main idea behind is to ensure that every time a user is going to go on a different Mini Program they will not have to re-enter their address all the time.

This is saving so much time and this is one of the reasons why often we can say that the user experience on the WeChat Mini Program can rival more and more the experience that you can have like on TMall. Obviously, you want to ensure that your shopping carts and the way the information is going to be displayed is going to be as close as possible to what the Chinese users are used to on those marketplaces, in order to make sure that your bounce rate is going to be as minimal as possible. The WeChat Fapio is another one here, I mean the Fapio overall and is obviously the Chinese invoice that you might like required to send along with the delivery. And the same thing here you have the opportunity to store this into your WeChat app in order to make sure that whenever you're going to pay you can pull this information directly and make sure that the information and the flow the UX is seamless for the user.

So, basically you can arrive from opening the WeChat accounts, to adding a product in your shopping cart, to paying by just pulling the address, pulling the invoice.

One of the things that is important to leverage and that you know WeChat gives you the opportunity to leverage is actually all the notifications of the service messages that you have. So, by configuring your Mini Program in a proper way you can maximize the engagement by sending messages for the payment confirmation of the order, when it is received, when the confirmation processing is ready. Even if your shopping cart has been abandoned, so that is something as well you can make sure to communicate with your social CRM, if you have a specific social CRM.

You will also have more tracking tools that are going to be able to feed this information back to your official account to do marketing automation in a proper way. So obviously, we cannot talk about China if we don't talk about live streaming. On WeChat there's been live streaming for the past couple of months and obviously you're going to see that it's very easy to integrate the live streaming function with Magento. First of all it's easy to direct feedback, and when we have a look at the size of the live streaming economy that's something that is growing like crazy. Weexpectlike130billiontobespendingin2020andbasicallyoneofthem, one KOL, made 480 million dollars spent on that single day.

So, obviously one of the other things that is going to be important is if you have a chat system with different ways to interact with your user. You want to make sure that you're going to integrate this with the different APIs and the different life chats and then, come excellent tools and that are going integrate very well with your Magento. Coupons are something very challenging in China. The user experience that is expected might not be exactly at the native one from a Magento perspective but that's something that can be with a little bit of work customized. But obviously users want to have the opportunity to have multiple touch points like online campaigns.

We want to make sure that we have the chance to drive offline as well, for the users to redeem them in a store, and this can as well be coupled with the different loyalty programs for instance, collecting different loyalty rewards. And whenever you have a major purchase, it is important coming back to the initial slides because we want to make sure that basically the Mini Program and Magento are going to be well connected with the existing warehouse and the existing shipments conditions of the brand. For example we are using Shunfeng and it's going to be important to integrate, for the users, to see from the backend the tracking; where is this order. This is going to depend a lot on everybody's infrastructure, so it's going to be different for all of them, and depending on the quality choice and depending on a lot of different elements you will decide how to build your WeChat Mini Program.

One of the last things that is not mandatory when we're talking about everything related to E-Commerce is User Generated Contents (UGC). UGC is the opportunity to make your platform a little bit more lively. Of course you can control that content and ensure that not everything is going to be published on your behalf to make sure that you're going to respect the different loads here. We see in China we have two leaders in terms of hosting here which are AliCloud (Alibaba Cloud) and then Tencent Cloud, and obviously you're going to have AWS and you're going to have Azure as well. So, all those systems will work. I would say that overall the demand has been a little bit more on the Aliyun side, but basically you're going to be able to do everything that you're doing on your Azure globally or on your AWS. You're going to be able to do it in China, with extremely good performance and things that are going to be easy to install outside.

To sum up, WeChat has a very large number of APIs that are really helping build Mini Programs that are going to have a User Experience when it comes to E- Commerce that can rival TMall and at the same time giving the opportunity for brands to understand 100% of the behavior. That's out in order to make sure that they have the opportunity to re-target them or to have a faster route to markets, and faster collection distribution, and so on. So, what's next, here we want you to do something a little bit light as well to see how those applications and how things are going to work.

When it comes to WeChat Works, a lot of companies have been talking about this strong adoption but this is still like a working process so it's a game changer but it's a game changer that has been happening in the last 7-8 months I would say. So, a quick review about WeChat Work. It was launched in 2016 and then it was not really adopted but it was adopted later and then started a competition with Ding talk. Now, it's becoming a way for brands to really interact with their users. They are going to see it in a second but basically the goal is to make sure that everybody within your company, especially all your sales associates can be perceived as sales people. So, why does this matter? We see on the left side Whatsapp and Slack and we all know that those two cannot interact with each other. So there is a clear separation in the West between what is Work and what is Personal.

Now if we switch to the Chinese ecosystem so we've seen that WeChat is the number one you know like social media app can do some things on it and now we have the professional app which is WeChat work on which you can have all your emails ,all your Contacts and there's like thousands of apps and functionalities that have been developed only some end everybody is like all the companies are choosing either between Ding talk or WeChat work for it.

The great thing with WeChat work is that you can have an open connection and you have the opportunity to talk directly seamlessly between users that are on WeChat work to users that are on WeChat and vice versa. So this is something that is very powerful and if we have a look at the overall ecosystem of WeChat here we see everything that is the front end part and then in the back is WeChat work related. Then we have older infrastructure security AI parts but basically all of this is somehow interconnected together and providing you to check the right CRM tool, the right E-Commerce strategy, the right social CRM, you have the opportunity to really create something very strong in terms of retargeting your users in a proper way. One of the things that was launched a long time ago is for any users on WeChat Work to have the opportunity to share their Moments.

Let's say you know your sales associate in one of the luxury houses and you have like 500 or 600 clients and you want to share about that new equipment. You have the opportunity to do this and to engage people using a professional account and not anymore your personal account. A lot of people have seen staff are changing from one company to another so you want to make sure to prevent that whenever your people are leaving for another company they don't bring the entire database along with them. And that's one of the strengths of WeChat Work where basically you left the opportunity to make sure to transfer that database from one vendor to another. So, how things are integrated. You can have your E-Commerce WeChat Magento Mini Program, you could see directly from WeChat the interface and you could share it directly with your customers. This is one of the ways you could do social selling.

You can incentivize all your sellers. We have set different programs to have an incentive scheme in order to make sure that everybody is going to share. Two different clients are going to be rewarded in specific ways and obviously you can share as well in like group chats when there's going to be more people. So, the functionality we were talking about earlier; actually the customer asset retention and inheritance, which is quite powerful, where basically if one of the salesperson is leaving. You will not want to interact with them, you're going to have that pop up message that is going to come saying that the new sales associate wants to talk to you. So those transfers are not automatic like obviously WeChat is going to ask you for permission to talk to a new person. And then, you're going to validate and to switch to the new person. At least this is made in an official way. WeChat Work accounts compared to WeChat personal account makes it very official and then you have the opportunity, if the user is happy about continuing the discussion with you, to start their interaction together. One of the great things is well, your staff could potentially access a Mini Program or an H5, and could potentially see either the CRM loaded back in of Magento where they could see the amount of sales that have been attributed to them. We can work on specific notifications and orders that square processed.

A question that we're getting very often: Is Alipay a good choice for Mini Programs? The answer is really going to be: “It depends.” Because it depends on many manufacturers but overall Alipay is like the second biggest App after WeChat. On WeChat there are 1.2 billion users, as well as so many different merchants are using Alipay as a payment system. Overall you know in the last couple of years we have never had many requests to build Alipay Mini Programs so there's some of them but those Mini Programs are usually for when it comes to travel tourism booking flights or for DDR4 cinema movie theater, or for big names like Starbucks for instance. So most of the brands will find where their users are going to be, where they're going to do. Depending on this you can choose whether or not you want to go for an early payment program or WeChat Mini Program.

Most of the time, WeChat is probably going to be the better choice here. So, before we run into the Q&A session, the key takeaways WeChat over the last 11 years have improved with the speed of light from just a messaging app to basically an operating system. And all the evolution that means walk on really in a proper way we're going to see one of the figures afterwards. But E-Commerce now is not a good to have anymore. That was the case in 2018 or 2019 now in 2020 is the must have it is so important. And I encourage you to review our first video that is going to tell you a little bit deeper why. And that's the third point is Magento is like the E-Commerce system that is really going to help you get the best out of your WeChat and omnichannel, private traffic ecosystem. So in a few days that video is going to be hosted on YouTube and we're going to have two 3 one hour consultation sessions for Justin and myself for people who are interested in building like their ecommerce in China. So, do not hesitate to reach out to us as mentioned earlier, now is a good moment so those are figures from 2019. So in 2019, 115 billion dollars was spent on Mini Programs. We're not talking about money exchange on WeChat, we're talking about the money that was spent in WeChat Mini Programs. And as far as we know that figure needs to be officially announced but it seems that year to date that figure 115 billion dollars has doubled. So that means by the end of the year the amount of money spent on WeChat Mini Program might be more like in 2.2 or 2.3 the current figure that is announced here. So in the end, it means that there are a lot of you know people are spending 30% of their time on WeChat in China. And spending an incredible amount of money more and more on those Mini Programs that was just launched three years ago. And that the study to be used for E-Commerce like the one year ago in mainstreaming. I think that this is now the right moment for the brand to diversify all the investment and to ensure that even if they do like (15 to 20)% of their digital revenue on WeChat. But at least they will have 100% of that data. And they will have the opportunity to kick start a right conversation with their users. Justin, maybe you want to add something to this.

Justin: 

So yeah, basically from my point here is, in China we do see many possible channels online and WeChat is one of the possibilities here and many people are trying to do so. Since private traffic here is not like TMall, JingDong marketplace anywhere. So this kind of way to do things, it’s just not about E-Commerce but also trying to figure out how clients are doing things on the website. Right now in China, less and less people are going to use PCs to login for websites for sure. They are actually spending more time in WeChat. It is really a good place to have more data. It is not only about revenue at the current stage. So, that’s basically some of the things that I want to add here. So, we are going to Q&A sessions.

Question: ​One of the questions from Claudia, what elements used for the livestreaming WeChat Mini Program would be connected to Magento?

Aurelien​: Sure, this is a very good question Claudia. Basically it really depends on your infrastructure and how you're going to manage your logistics. So you could potentially have your livestreaming without Magento. But a lot of brands are depending on whether or not they have an older management system and then they have like Magento here as like one of the front-end. But the order needs to be aggregated somewhere and then afterwards the users need to be able to access specific profiles where he's going to see where his order is. So Magento it's going to be kind of the middle ground, like middleware between this and to have this interaction afterwards with the users. I hope I'm answering your question if you have additional questions do not hesitate to type them here or you can reach out to me privately as well.

Justin: Yeah also let me add something here so basically for WeChat Magento from a consumer view they are not able to know any kind of thinking there but actually those things. Any kind of thinking there that's actually those things which you doing like orders and the content of the products information actually came from Magento. So all the things are going to the one single back-end like your website and WeChat and maybe we have beautiful WeChat Mini Programs that can be backed to the same Magento. This is how it helps to manage all things in one.

Question: Another question is here from Jeffrey, “Are we able to share the deck here?

Aurelien: Yes, yes definitely. I am not sure here. But we can send it to you Jeffery by email. So, if you are registered to that event, make sure that we are reaching out to you with the details. And everybody, who are on Adobe platform as well as on YouTube. So, don’t worry, you're gonna have access to it.

Question: Another question here from Abbey, for TMall into ERP such as SAP if Magento can be functioned as awareness?

Aurelien​: Justin, you wanna go or I wanna go?

Justin: Well, actually for me it totally depends on what kind of functions you need from Magento. And the kind of data you will pull from TMall to Magento and that will be a critical thing that we need to consider before we see it is able to collaborate with OMS.

Aurelien​: First of all, depends on what kind of access you are going to have with TMall. Not all of the brands have specific access there. Depending on the TP, some of the TP might have their own tool and might not want to share all the details. Magento has some elements of OMS in it. The commerce edition has a lot of additional functionalities when it comes to the OMS. But TMall and the TP word is a very specific word so it's going to really depend on what you want to do, how many warehouses we're talking about, how many stops. So I think it's worth digging deeper into this but overall most of the time separate OMS might be required as well.

Question: OK the question from Jonas is asking, “What would you see as a typical split of business between brandsize WeChat and TMall for retailers and how do you expect that to be involved?”

Aurelien​: That's a very good question Jonas. Thank you for asking. It's like each category is going to have different answers. I mean when you look at the overall statistics of China, we’re talking more like about 85 to 15 so 85% when it comes to TMall and JD and other marketplaces like 10 to 15. When it comes to you know like private traffic for some very well established brand, this figure can go all the way to like 30 to 70 for the really well established brand that have created those digital infrastructure including website mini programs for a long time. I would say that in the best word like because private traffic is something that is only starting at the moment and as we saw earlier that mini program of midyear only since 2017. And really having API functions like enabling them to have a great user experience only last year and the year before. So, this is only the beginning when it comes to private traffic so when it comes to brand size I will usually what will usually do with Justin is to advise people to start where the traffic is going to be. We don't see a huge amount of friends that will invest into a .cn. Usually the first must have will be a Mini Program with obviously the E-Commerce Magento background here. And if we see that this access funnel is converting in a proper way then potentially kick starting a website if we think that websites can make sense but everything is like mobile first in China.

So, I'll say that starting investing more on a Mini Program or more on the marketing to bring traffic to a Mini Program could make more sense than actually building any E-Commerce platform. Especially E-Commerce websites especially when we see now with all the APIs that you're on WeChat how the user experience can be nice. So, yeah I hope I'm answering well your question and like how to make this evolve in terms of splits. We can have a separate conversation offline but what we have seen is that this couple of things. Having proper marketing automation tagging segmentation, having the right content and having the right user experience when it comes to Mini Programs and then specific APIs. And OK we have X percent of our revenue better done on that funnel of public traffic versus for a private one how are we going to incentivize people through I don't know like private collection you know like KOL KOC or like different group purchase here to make sure that people are going to be willing to purchase the first time. And once they purchase the first time then we can create this habit of purchasing on to the funnel owning versus for the user to go back in a funnel where you don't have any ownership. I hope Jonas I’m answering your question properly and please do not hesitate to reach out as well so we can have a talk.

Question: ​Another question from Louis, integration between WeChat and Magento works as well for Magento cloud?

Justin: ​Let me answer this question as we actually have a series of webinars happening. We have explained some of the questions. Some of the differences between Magento clouds and set up in China in the series one. Basically one of the things that to talk about Magento Commerce so the function wise is 100% the same compared to the Magento cloud. But in China we do have our questions when we talk about personal information and the network security law or all data is master installed in China. And these data are not able to transfer overseas so that question makes us not fully able to support Magento cloud in China. Because we haven't had our cloud installed in China yet. So, the way we are doing with Magento in China is we do have an on-prem solution. And that is able to install in our Alicloud and Tencent cloud or AWS China. All these are possible so that's one of the reasons they are doing that so the integration here is 100% sure it will be the same technical wise work well for Magento cloud. But that's not the best practice or recommendation for our clients in China. Anything you want to add Aurelien?

Aurelien: I think this is perfect Justin. So, the Magento enterprise or Magento Commerce version or cloud if it is the one that you're referring to works perfectly in China except that we obviously are not going to use Magento cloud as Justin mentioned we're going to use the Alicloud or Tencent cloud.

Question: Let's see if we have a more question here so we can help to answer. Louis had added the question and let me read the question from him again. For the new additional parts that’s why I'm asking the question because the law data privacy situation is so basically better to use on-prem Magento using Alicloud for example in order to make sure that data is stored in China.

Justin​: Yes, that's true, that's what we want to explain to you.

Aurelien​: Yeah it's not good to have Louis it's a must have. So, that's something that is almost mandatory. So it's not just good to have it's requirements. In China you want to do E-Commerce that's why a solution you know like Salesforce Commerce cloud doesn't work in China is because the data cannot be hosted in China and that's really a strong advantage of Magento with the opportunity to be an on-prem solution. Obviously on premise but within the Chinese cloud if I sum it up and hope you probably understood.

Alright so I don't see any other question so should we wrap it up Justin. So, alright ladies and gentlemen gentlemen thank you so much for making some of your precious time on this Wednesday afternoon or more like morning for the European people or night for the Americans. Pleasure to talk to you and Louis thank you for your message and let's connect offline for the people who need any help and have a lovely day and see you for the next one.