China retail sales get 3 trillion yuan boost as personalised marketing grows via ‘private traffic’ in chat groups
- WeChat groups, run by foreign and Chinese firms alike, have become crucial marketing tools for reaching new consumers and building brand loyalty in a post-pandemic China
- E-commerce report finds that direct marketing tactics – with customised promotional offers and discounts – are helping companies better connect with their target audience
The numerous WeChat messages that pop up on Amber Liu’s phone every day have become a go-to source of coupons and information about retail sales.
These types of posts originate from chat groups, but the Shanghai-based journalist barely knows any of its members.
Like countless others, she is mainly interested in the products on offer – ranging from cosmetics to lattes. And that’s exactly what companies are banking on.
“Some groups can be really noisy because the group admins keep flooding them with promotional messages,” the 24-year-old said. “But they can be very useful in attracting customers.”
Across China, such WeChat groups have become increasingly important channels for retailers – both Chinese and foreign brands – to gain access to new customers and to help maintain brand loyalty, according to a June report by Azoya, a provider of e-commerce solutions that helps brands grow in China.
Defined as “private traffic”, the marketing tool refers to building and maintaining a customer database that retailers can access for free or at little cost.