MARKETING
Where brands in the US & EU markets need to go to reach their customers.
I don’t want to beat on this too much more since readers in the West are living it – but it’s a pretty difficult time for the companies that normally rely on brick and mortar stores and / or F2F interaction due to Covid-19, specifically in the US. Many stores, malls, dealerships and restaurants are still closed due to ‘shelter in place’ policies and for the establishments that are open, people are still apprehensive about their safety and hence staying away nonetheless. With these traditional sales channels effectively closed, these companies are being forced to explore and implement new ways to engage the customer.
Brands that have a presence in the China market have discovered the use of livestreaming apps like Douyin & Kuaishou combining that with key opinion leaders (KOLs) / celebrities to help sell their products & services, think of it as Home Shopping Network Version 2.0, and are finding sales success and as a bonus, customer loyalty in some cases.
TikTok, the most popular livestreaming app in the US, and owned by Douyin, has been downloaded 165M times. This is where brands are going to likely find their next customers. Just because it works in Asia though doesn’t mean that it can be a ‘one size fits all’ strategy for the US, Canadian, Mexican or EU markets.
People’s habits, tastes, technology familiarity, comfortability with buying online, as well as other aspects depending on the product, all need to be considered when engaging the customer in a particular market.
For the US market specifically, there still needs to be a level of education that comes along with digital marketing. Also, even if the customer engagement is designed properly, the entire business needs to be realigned to support the new ways transactions are handled. Thoughtful, end to end consideration of the customer journey can create an amazing user experience. A great user experience can lead to stickiness and the creation of Net Promoters. That’s an important point that needs to be remembered.
I am in discussions right now with some companies looking at AR / VR and social media as some key tools for their pivot to digital but I also see the challenges in learning this ‘new’ language. Before Covid-19, most companies all planned to engage consumers digitally, but decided that the road well-travelled suited them fine.
My blunt response to them – Get over it. Their customers were already headed online and Covid-19 just pulled their timing in. For those slow to embrace digital - Right now is NOT the time to be indecisive – As the wise Yoda once said ‘do or do not, there is no try.’ Your company’s future depends on it.
#digitalmarketing #livestreaming #customerengagement #userexperience #howsoonisnow #coronavirus
CORONAVIRUS
With Covid-19, e-payments technology growth in the US, EU and SEA will only accelerate.
I carry no money in China. I just pull out my mobile and pay with everything through WeChat. I’ve been doing this for the better part of 3-4 years. When I go ANYWHERE else in the world, it’s NEVER this easy or convenient. As a matter of fact, I have a US credit card that claims to be specifically made for travelers but whenever I use it in a country not named the US, it blocks my transactions.
I literally average about 2hrs on the phone with their customer service teams to correct this error, an error that’s happened multiple times. I’ve had to be on the phone with them while at the airport, while I am at a store trying to use it, you name it basically all the MOST inconvenient times.
I will concede that WeChat Pay and by extension Tencent knows probably too much about me (since WeChat is the dominant chat app in China as well), but I’ve been over it for quite some time. I have to be if I want to live a productive life in China.
That could be naïve thinking but to me it just IS. We will definitely get to this point in the US, where carrying cash and change is something only luddites will do but man, here’s to hoping that the US can figure out a secure way to do it sooner rather than later.
#epayments #howsoonisnow #微信支付宝#wechat #wechatpay #nomorechangeinmypocket
INNOVATION
Sidewalk labs failure in Toronto needed to happen. It’ll probably happen again. And maybe Detroit should step up to the plate and be their next partner. Seriously.
Since a project this ambitious was literally one of the first of its kind in the Western world there was a ton of uncertainty coming into it from both sides. Sidewalk labs decided to GO BIG and with a city like Toronto, that was ultimately the showstopper. This type of public / private partnership WILL happen. No predictions yet from me on city or even country yet though - outside of China. That’s because China is already experimenting with these pilot programs and have ambitions of not just transforming a major city but creating new MEGA cities. Ones with 100M people inhabiting them.
China is not the rest of the world (ROW) and ROW is not China – I get that, but these failures, for both sides, are an opportunity to gather data points. For the tech companies - It’s a chance to roll out bold ideas and idealistic setups and for the cities - It’s a chance to gauge how much and how fast the public will accept embracing technology that in theory ‘should’ makes their lives easier, safer, more affordable and ultimately more fulfilling.
In this instance the differences between both sides were a bridge too far. But that gives another city a chance to step up. If I were Mayor Duggan, maybe I ring Sidewalk Labs and see what Version 2.0 of their solution has to offer to the city of Detroit.
#Toronto #nogo #Sidewalklabs #dataplay #utopia #wewilltakeapass #Detroit #whowillstepin
MICRO-MOBILITY
Lime eats Jump electric bike share.
As part of last week’s deal where Uber led a $170M investment in Lime, a company they’d invested in in a previous round and a competitor of Uber’s own Jump micro-mobility solution, Uber gives Lime control of all the Jump assets. Clear?
What is clear is that Lime is now the largest micro-mobility company in the world and will likely redeploy the Jump e-bikes at some point in time in the near future after it’s been able to incorporate the Jump ecosystem into its own.
Apparently, Lime was close to profitability prior to the Covid-19 pandemic so Uber’s hope is that the additional investment in and the transfer of assets to Lime will help with scale AND profitability, at least I hope so.
What’s still not clear is how Lime will use this new ‘heavyweight’ status against their competitors. They will likely ‘lean’ on them by experimenting with different pricing models, perhaps test a subscription service that includes the Jump e-bikes? They’ll also likely redeploy their e-scooters and eventually the e-bikes with renewed vigor. Now that they have a more complete solution than many of their competitors, they could also approach these cities and cooperate WITH them as opposed to fighting AGAINST them to roll out a custom solution? A public / private co-op is really the only way I see these micro-mobility businesses surviving.
On the other hand, we can really begin to see how Uber is trying to pivot to this multi-modal, all-in-one platform / app in order to push THEMSELVES to profitability. even if it’s able to integrate all these different services (food delivery + micro-mobility + ride-hailing), it’s crazy to think the original ride-hailing business that got them so much investment and notoriety could possibly be the one business that pulls the entire company down.
#thisisgettinginteresting #Lime #Uber #Jump #largestintheworld #micromobility
ECONOMY
The subsidies should help, a little but there are bigger worries for the Chinese economy.
Had a good discussion with Soon Chen Kang regarding the China’s extension of subsidies and the 10% tax exemption on NEV purchases. She captured much of my thoughts in the linked article but to summarize, Covid-19 definitely threw a monkey wrench into China’s plans regarding the sector but with the damage to the domestic economy being done, the priority is to get the entire economy back on track with the sales of passenger vehicles, NEVs and ICEs together, being one of the more influential levers.
What should help with ICE passenger vehicle sales are low oil prices. It’s still not clear how serious the damage is to the economy since we just saw an uptick to auto sales in April but it’ll take more than a month of increasing sales to show that the Chinese consumer has regained its confidence in the economy so right now we wait to see what, if any, ‘next’ steps need to be made.
#itstheeconomystupid #ICE #NEV #rebound #recovery #tooearlytotell