The link between mobile and chat applications is getting closer

Editor's note: The connection between mobile and chat applications is getting closer, and the more ubiquitous the chat applications, the more the mobile operators are recognized by users. The trend was validated in the latest report by TNS, a market research firm. Spencer Ng, the TNS Agency's service director, expressed his views on the trend in foreign media techinasia. He believes that any in the retail industry has a certain degree of sensitivity of enterprises should seize this convergence trend, do a good job of transformation. The following is the main content of the article.

With the rapid rise of chat applications, there are news of how such services are profitable and who will win in the competition.

In fact, their biggest killer is the mobile electric business.

The trend has actually begun-Tencent's micro-letter has allowed users to buy from retailers.

For example, the micro-letter has been integrated into the McDonald's payment function. But this is not the case, and similar applications like Viber are starting to become their own users, and have launched a new business model. For example, line allows users to view nearby gourmet coupons, with about 32% of the company's 200 million registered users already using the coupon.

According to the data in the Mobile Life 2013 report published by TNS, a market research firm, mobile chat applications and the penetration rates of mobile operators in various countries and regions can be plotted. GDP per capita will certainly have an impact on the value of mobile operators in different markets. However, it can be seen from the graph that mobile chat applications are positively correlated with mobile operators, and as the penetration rate of these two mobile technologies increases, their integration will become more and more close.

How can mobile chat applications take advantage of this fusion opportunity?

First, we need to know where the best place to take this trend is. The mobile electricity quotient has the obvious regional nature. Unlike online shopping, mobile coupons are an emerging trend that requires the full use of local retail networks. Therefore, the integration of these two technologies must be promoted by choosing the market for priority development.

Market with high potential for integration

The country or region in the upper-right quadrant can offer the widest opportunity. Given the success of KakaoTalk and micro-letters in Korea and mainland China, both markets offer good opportunities.

In addition, Hong Kong is also a concern because it has high-end retail opportunities and is accustomed to using micro-letters from mainland Chinese tourists who often go shopping in Hong Kong.

According to the Hong Kong Tourism Bureau, the number of mainland visitors to Hong Kong each year is 3 times times that of local residents, which clearly brings business opportunities for chat applications such as micro-letters, and can offer coupons to local retailers to promote high-end products and services to mainland visitors.

Taiwan is also a concern, as is the case with Hong Kong, where GDP per capita is also higher than that of mainland China. But more importantly, the chat app line is already dominant locally, with a penetration rate of more than 70% in chat users. For line, it is now a great time to use the dominant position to establish a partnership with a retailer to quickly deploy mobile-service providers to ensure a first-mover advantage.

Markets with low potential for convergence

Many factors, such as logistics, Internet infrastructure and credit card penetration, will restrict the development of e-commerce in some markets, especially for mobile power providers. However, "low potential" may be a misnomer. As long as chat applications narrow the focus to specific cities, opportunities can still be found.

Indonesia, for example, is the most feasible target for Jakarta, where the rate of chat penetration is nearly 50% higher than the national average. In addition, the deployment of such schemes within a certain range can also ensure that the retailer's cooperation plan is targeted rather than being diluted by a wide net.

As we all know, BlackBerry's BBM is Indonesia's main chat application, this application is now compatible with other platforms, so users should also accelerate growth. The key question, however, is whether BBM wants to turn these users in. Assuming they start deploying mobile-electric business plans, how to pay in a predominantly cash-settled market becomes the most critical issue.

What does it mean for a retailer who is bullish on mobile power?

The importance of mobile marketing will be increasing day by day. Chat apps will become a key platform for retailers to attract large mobile users, who can lure users into the store by using mobile coupons or group deals. In South Korea, 68% of consumers have already used the service.

In addition, Baskinrobbins and Starbucks have also allowed users to use Kakao's "gift" service to send mobile coupons to friends. The range of products covered by the service has increased from 107 in 2010 to the current 9,970, enough to show the retailer's great interest in the trend.

Although South Korea is at the forefront of this trend, there are 30% and 40% of consumers in Hong Kong and Taiwan, respectively, with the ability to receive such offers. What better way to take advantage of this opportunity than chatting?

Any company with a large coverage in the retail industry seems to be thinking carefully about how to capture the convergence of the industry so as not to miss the transition.