Mobile payment with wechat or alipay.
6. The impact of globalization is only just beginning
The Internet has blurred national borders. Because the economies of scale on the Internet are so great from an economic perspective, we are seeing more and more international players winning the game. International companies have access to much more data, can hire more people and often have a much stronger capital position.
Big tech giants are expanding all over the world and are getting bigger and bigger, making the impact of globalization irreversible. A development that is only at the beginning of what is to come. In the coming years, there will certainly be a lot more competition from China. Some figures to support this picture:
Singles Day (the day when Chinese people buy gifts to celebrate being single) last November brought Alibaba a record amount of around 35 billion(!) euros. After one and a half minutes, more than a billion euros had been converted.
WeChat now has more than 1.1 billion monthly active users. A number that is still growing by about 20 million users every month. More than 900 million of all users pay monthly via the app.
Tencent now reports that it has more than 1 billion daily users and is generating revenues of more than $13 billion per quarter.
According to the People's Bank of philippines telegram data China (PBOC), the transaction volume via mobile in 2018 was already more than 41 trillion dollars. The figures for 2019 are not yet known. In 2018, that was already 28(!) times more than 5 years earlier. In total, more than 60 billion transactions took place via mobile payment platforms that year.
How do you, as a retailer, deal with the giants?
Because international giants like Alibaba and Amazon will gain more ground in the Netherlands, it is of great importance to look at how you want to deal with this. Many retailers already know how to use these platforms with great success to sell across borders, which also gives them experience with the operation of these channels.
Dilemmas for advertisers
For many advertisers, the platforms pose dilemmas. The platforms are a gateway to potentially much larger volumes, but also often create greater dependency. But the consumer knows how to find them. Since the growth of these international players will certainly not stop, it is advisable to experiment with them in any case to gain experience.
7. Working on retention is not a choice, it is a must
The acquisition costs of a new customer are often clearly on the radar of many advertisers. It is a figure that is often looked at daily and optimized to improve the figure. What a first order yields is often clear. Strangely enough, it often remains silent when you ask what an existing customer yields over several years. Not logical, because that is precisely a figure that is of great strategic importance.
