Tencent announced the establishment of WeChat business group

Tencent is the only Internet company that owns two super-IMs. Ma does not want to force one alternative. Instead, it encourages self-revolution and internal competition and leaves the right of choice to the market.

On May 6, Tencent announced the establishment of WeiXin Group (WXG), which is run by Zhang Xiaolong, Tencent's senior vice president of operations, and reported to the company's president, Liu Chi Ping. This means that after more than three years of brutal growth, WeChat has grown from a research institute product to an independent business process management organization.

Tencent's social networking business group (SNG), which is in line with the WeChat business, ushered in a new internal competitor, and the Tencent horse race is about to start.

In Tencent's quarterly earnings report highlights, due to mobile QQ and WeChat smartphone gaming platform revenue increases, the company social networking revenue growth of 16% over the previous quarter to 4.026 billion yuan. Tencent quarter total revenue of 18.4 billion yuan, up 36%; net profit of 6.457 billion yuan, up 60%.

Since the beginning of this year, Tencent, which has always been conservative and used to making decisions, has continuously released radical signals to the outside world and has shown a positive and ambitious platform strategic layout. For example, on March 19, 2014, Liu Chi-cheng made a speech on "A Meeting of Analysts" Said: to consolidate the social platform, games, digital media dominance at the same time, into a broader ecosystem of mobile space. These areas include: e-commerce, O2O services, Internet finance, online education and other vertical areas, good at yourself, bad or unfamiliar to the partners.

In less than half a year, Tencent has successively announced that it has made the biggest adjustments to its search, local life service and in-kind business operations in recent years with numerous internet companies including Sogou, Dianping Review and Jingdong (rolling news).

In such a grand layout, Tencent can not desperate to a product. Tang Daosheng, senior vice president of Tencent, who is responsible for SNG, accepted the interview with Caijing reporter: "Tencent now has two systems, one based on QQ and QQ space and one based on WeChat."

WeChat bid farewell to freedom of growth

WeChat is an independent business group and is the third structural adjustment that Tencent has carried out since its listing in 2004.

The first major adjustment occurred in 2005, when Tencent already had as many as 30 business units and Ma suddenly realized that management had become a big issue. Complex decision-making, many levels, the relationship is not clear, the cooperation between various departments is not very strong, long-term layout of each place, but can not find the right people. Company management began to discuss the organizational structure of the past few hundred when the organizational structure adjusted to nearly 4,000 people with the size of the organizational structure. After the adjustment, a horizontal business unit system was adopted and the five partners each took charge of one by one and delineated the sphere of influence and solved the problem of resource allocation within the initial period of Tencent.

The second structural adjustment took place in May 2012. Tencent changed the original business unit structure to "6 + 1" structure, namely CDG (Enterprise Development Business Group), SNG (Social Network Business Group), IEG (Interactive Entertainment Business MIG (Mobile Internet Business Group), OMG (Network Media Business Group), TEG (Technology Engineering Business Group), plus an ECC (Tencent e-commerce holding company has been revoked).

The purpose of this adjustment is to sort out the internal relations and delineate the business structure to address the challenges of the mobile Internet. After the adjustment, the external professional managers in each business group gain power and the top five founding partners have succeeded in becoming successful.

In early 2013 the original MIG head Liu Chengmin's retreat, for the QQ and WeChat split the seeds of the situation.

Prior to joining Tencent Liu Chengmin worked for Huawei Marketing Department, has a profound background in telecommunications. In the era of SP, Liu Chengmin familiar with the carrier relationship, led the wireless sector laid the first Kingsoft Tencent. At that time, Liu in charge of mobile QQ, mobile browser, mobile phone housekeeper and other important business. However, the emergence of WeChat dwarfs MIG's mobile business. In the early days of WeChat, Liu Chengmin also played a role as a roadster.

A person close to Tencent told Caijing reporters that they had been stopped by Liu Chengmin before WeChat launched the killer voice function because Liu and the operators were deeply rooted and did not want to "offend" the latter.

After Liu Chengmin announced his resignation, MIG was split, mobile QQ and super QQ business transferred to SNG, mobile game foreign cooperative departments transferred to IEG.

As the third organizational restructuring, the establishment of WeChat business group formally established WeChat and QQ on an equal footing. Prior to this, WeChat is a "special zone."

Tencent insiders told Caijing said in an interview, Tencent internal resource allocation is very unreasonable, "for example, TenPay to WeChat, but in fact, such as SNG platform departments need TenPay, because Games and other business needs to pay. "

These people believe that Tencent map did not do it because there is "not get good resources" in the internal, but also to seek cooperation within the WeChat before the same, "without any concessions, and completely the same as the external team," often require high-level coordination to smooth. On the contrary, to find mobile QQ to take resources is relatively easy.

After independence, WeChat will face the problem of commercialization, may have to exchange resources with other departments.

The mission of WeChat business group is to build another big platform around WeChat. According to the official statement of Tencent, the WeChat business group will be responsible for the development of the WeChat basic platform, the WeChat Open Platform, the WeChat payment expansion, O2O and other WeChat extension businesses, including the development and operation of email, address book and other products.

At the same time, Tencent announced the withdrawal of the e-commerce holding company, which in-kind business into Jingdong, O2O business into WeChat business group, virtual business into business development group, movie ticket business into social networking group, customer service Team into the technical engineering career group.

Zhang Xiaolong wrote in the internal mail: "WeChat BG was formally established and will be responsible for building a mobile Internet social networking platform based on WeChat, opening up and O2O platforms, providing instant messaging and online entertainment, living and commercial comprehensive services, and creating More value. "

One WeChat internal staffer told Caijing reporter that Zhang Xiaolong treats products as purely market-based and has high personal freedom. "Products and functions that access WeChat are more willing to look for from the outside because the outside represents infinite possibilities."

However, the above-mentioned people said: "WeChat has made some adjustments to the KPIs for various categories since the establishment of WeChat." To a certain extent, WeChat is unlikely to develop the same pressure and freedom as before.

There is another challenge in front of Zhang Xiaolong, that is: as a product manager he undoubtedly called great, but as president of WeChat business group, the test is not only the product capabilities, but also need him to have outstanding business operations capabilities. And all this, it will be yet to be seen.

QQ counter-attack

In early 2013, after taking over the mobile QQ and super qq, SNG's Tang Dousheng broke up the original staff and re-allocated all the members of the business group with its functions and services. Instead of splitting the past between the PC and mobile terminals, Began collaborative layout, together with SNG has assumed responsibility for the realization of the entire platform, so the commercialization of mobile QQ path is more mature and complete.

Ma Huatian mention mobile products in public, and even mobile QQ ranked in front of WeChat.

May 2013, mobile QQ released a new version, the biggest change is that - friends, "Avatar full bright", do not see the difference between online or not. According to Tang Daosheng at the time saying that this change is the mobile phone QQ "self-revolution" is "to the real sense of mobile products force."

Although later forced by user pressure, the phone QQ again changed this function back, but the mobile QQ "WeChat", and WeChat positive competition has been the continuation of the situation.

A Tencent internal staff told the "Financial" reporter, after he joined Tencent repeatedly reminded - do not ignore the hand Q, hand Q is still strong. "Q has done a lot of technical attempts, but the company does not pay much attention to internal and external, and wechat response to a small change we are particularly warm."

As Tencent's largest and most influential internal business group, SNG covers a number of business lines including QQ, Mobile QQ, Tencent Open Platform, Tencent Cloud Platform, Wide Point Pass and Mobile Distribution Platform, and internal resources Very rich. Relying on these resources, in addition to the mobile QQ product features to do the move, SNG also e-commerce, games, O2O, payment actively layout.

Tang Dousheng told Caijing reporter that in the past year, QQ space opened a small amount of traffic attempts to advertise information flow, the effect is very good, the highest click-through rate of nearly 10%. He said that the next step will continue in this area to try.

In August 2013, millet mobile phone and QQ space cooperation, through the infiltration of content in the QQ space for marketing. According to Guangtongtong official data, there are 7.45 million users have made an appointment, 100,000 red rice cell phones with 90 seconds sold out.

Tang Dao-sheng believes that QQ coverage in second and third tier cities is very large, the future can rely on this advantage for the specific population to do vertical services. In addition, QQ is also actively commenting with the public, Jingdong cooperation, QQ space for these platforms to do the business of drainage services, and businesses and users can also communicate through QQ.

At present, QQ's monthly active users are about twice as many as WeChat's monthly active users. According to Tang Dasheng, QQ's huge subscriber base can help him achieve the vision of "connecting everything". For example, different smart terminals, printers, and even smart appliances, through the open QQ communication capabilities to hardware partners, so as to all things. One of the most important roles in the menu may be an option in the QQ menu - "My Devices."

Thompson also QQ group into an application of ecology, "We are also revised QQ group, hoping to continue to launch group applications, but also for group properties to emphasize a certain type of application." For example, in League of Legends game Will provide information about the installation package push, game video, and more.

Tang hopes to provide different communities to the owners, the service more thoroughly. At the same time the introduction of third-party developers, QQ is now doing more in the online education, entertainment, social networking, commercial voice calls and other vertical areas to build a system, and then let the application based on the growth.

It is worth mentioning that, SNG hands in control of the three major weapons - Tencent cloud, wide pass and application of treasure, these weapons become QQ can be bold commercial infrastructure protection. Tencent cloud to make it with the brand, application providers to go closer, Guangtong can provide ads for its realization, the application of treasure will bring new users.

Now, Tencent has two systems, one is based on QQ, QQ space, one is based on WeChat. "Tang Daosheng does not deny that the ecological relationship between QQ and WeChat side by side, but also full of confidence in the future of QQ," I told the dragons In fact, quite a tacit understanding, we will choose the ability to differentiate, of course, there are some intersection, where people can meet in different ways to do the market. "He believes that both horse racing situation is Tencent can evolve basis.

Mismatch complementarity and short-hand phase

Tencent may be the only Internet company with two super IMs that encourage competition and go hand in hand. Ma Huntan said last year about this issue: "Self-revolution should be encouraged, and even internal competition should be encouraged."

Tang Dao-sheng told tactics very euphemistically: "Actually, everyone is building a different ecology and exploring the unknown markets in different ways." "Tencent's business system today is very open, allowing platforms, businesses, partners Are free to move forward and grow freely. "Although e-commerce and O2O are being classified as WeChat business groups, SNG can still directly interface with Tencent's strategic partners such as Public Comment and Jingdong.

For hand Q and WeChat differentiation competition, Internet analyst Liu Huafang told Caijing reporter, QQ and WeChat product cycle and stage are different, QQ platform has reached a mature stage, you need to rely on advertising and big data to bring high profitability, The WeChat business group is in a relative growth phase, and the profit model needs to be explored and innovated. Secondly, QQ space is a relatively open platform and WeChat is a relatively closed platform. Each other's community atmosphere and temperament are not the same. Media attributes in QQ space are more Strong, WeChat tool properties are stronger, each will rely on their own strengths development.

WeChat payment and Internet banking layout is QQ platform can not be expected within a short period of time; and Tang Daosheng in the QQ space attempt is not done by WeChat circle of friends (may also be Zhang Xiaolong out of user experience do not want to do ).

However, it is not only the relationship between QQ and WeChat that is misplaced and complementary. In the fields of O2O, community and games, and the concept of "connecting everything", the two sides are likely to make short-cuts.

QQ platform in the field of O2O and e-commerce has done a lot of layout, but also with the public comment, Jingdong and other platforms to actively cooperate.

In the payment link, corresponding to WeChat payment, QQ will be tied to the ability of the QQ wallet card capacity. Tang Dao-sheng believes that O2O has a huge imagination, and both WeChat and QQ can explore.

Electric analyst Li Chengdong more optimistic about the performance of WeChat in the mobile e-commerce. He believes that the biggest difference between QQ and WeChat is not the product form and user base, but WeChat has a public platform, a large number of business organizations to access the WeChat public number can be linked with the user, interaction, transactional relationship, commercialization is only in This layer of social interaction can be added to the transaction.

QQ is still a relatively single social tool between people, there is a natural shortage of commercialization.

O2O analyst Huang Yuanpu also believes that: "QQ focuses on diversion, WeChat focuses on social CRM, corresponding to two aspects of O2O, compared to WeChat." He predicted that QQ keep PC, WeChat, Q To move. WeChat in first and second tier cities will be better than hand Q, and Q in the third and fourth tier cities also have their own irreplaceable advantages.

There is also a factor that will become a variable in the race between QQ and WeChat. One Tencent employee told Caijing's reporter that just as Ma Huateng said, "WeChat may be the only chance for Tencent to be internationalized" and its position in Tencent's overall strategy is even higher.

However, the commercialization of WeChat is not a smooth one. Before, Guangtong Tong and WeChat subscription number text chain ad closed beta, the results have been criticized. Wemedia founder involved in closed beta "Dragon old thief" open Tucao Guangtong did not implement the test public account management background advertising, did not implement the advertising share, there are many spam, did not achieve accurate marketing. Luo Guang, head of Guangtong Technologies, said in an interview that commercial cooperation with WeChat has just begun and accurate marketing can not be achieved.

Zhang Chaofeng, the founder of an outdoor brand called Pinewood, told Caijing that the goods he spanked on the WeChat service number were purchased by the same customer twice because the WeChat backstage can only be set to one for each size and one Users order different sizes of goods can buy more pieces. The spike goods generally small, mostly promotional tools, the more sales lost more.

Zhang Chaofeng to the official response, the answer is to wait for system upgrades. Such as a small BUG Zhang Chaofeng feel, micro channel commercialization is still immature, just started, there is a long way to go.

There are still many variables in the commercialization of WeChat, which is threatened by public expectations. This is not necessarily a good opportunity for a QQ overtake. In any case, in the mobile Internet era, Tencent is happy with two horses. However, it is also a challenge to master these two horses skilledly. Now, though it is going its own course, there may not be friction or even collision in the future.

Author: "Finance" He Shulong staff reporter intern reporter Song Wei