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China’s biggest internet firms offer millions, keeping users glued to their apps

The Lunar New Year represents an opportune time for internet companies like Alibaba and Tencent to build up brand awareness and attract new users to their popular apps in China

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Major Chinese internet companies like Alibaba Group Holding and Tencent Holdings are competing to build up brand awareness and increase the number of users on their apps through digital red packet promotions during the Lunar New Year. Photo: EPA
Li Taoin Shenzhen

Consumers in China are in for a huge treat as some of the country’s biggest internet companies give away money as reward to customers using their apps ahead of the Lunar New Year holiday.

Alibaba Group Holding and Tencent Holdings, China’s dominant mobile payment operators, have pledged to give away a combined 5.2 billion yuan (US$826 million) worth of hongbao – the traditional red packet containing cash and given as a gift – and shopping coupons, all in digital form.

“Chinese people have a tradition to send greetings and hongbao to each other during the Lunar New Year, making it the best time for the likes of Alibaba and Tencent to build up brand awareness and increase the number of users on their apps,” said Sissi Chu, the vice-president of research at mobile big data service provider Jiguang.

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The Lunar New Year, which is a festive time for family reunions across China, falls on February 16 this year.

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China’s major internet companies are competing to envelop their users in self-contained universes where all of their needs can be met without having to leave the platform, from ordering takeaway and paying utility bills to investing in unit trusts and playing the latest online games.

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