China's Tencent looking at U.S. opportunities for WeChat app

Discussion in 'China' started by huaxia rox, Feb 27, 2013.

  1. huaxia rox

    huaxia rox Senior Member Senior Member

    Joined:
    Apr 4, 2011
    Messages:
    1,401
    Likes Received:
    103
    China's Tencent looking at U.S. opportunities for WeChat app | TechHive

    Chinese Internet giant Tencent is eyeing the U.S. mobile Internet market with its popular WeChat product, a messaging app that lets users send messages, voice recorded notes, and pictures to friends on the service.

    "We recently put together a small project team for WeChat to study the U.S. market and explore future potential opportunities," said Tencent's director of investor relations Jerry Huang on Monday in an email.

    In China, Tencent is best known as the company behind QQ, the country's largest instant messaging client. It also runs a popular Internet portal, publishes online games, and operates social networking websites. In the third quarter of last year, the company pulled in US$1.8 billion in revenue, which was more than Facebook did.

    Tencent's WeChat product has been the latest mobile app to take China by storm and has 300 million user accounts. It is similar to the U.S.'s WhatsApp product.


    In China, users view WeChat as a way to send free SMS messages, and save costs on their phone bills, said Michael Clendenin, managing director of consultancy RedTech Advisors. The product is also a convenient way to leave voice messages, in a nation where voice mail is seldom used.

    "It's become popular in China, because it's a little cheaper, and it's quite fun," he said. "That's a great formula for success."

    Tencent declined to offer a breakdown of its WeChat users by country. But analysts said that WeChat's popularity has been growing outside the country among overseas Chinese users, and in emerging markets such as Indonesia, Latin America and the Middle East.

    Chinese Internet companies have so far struggled to become major players in foreign markets. But Tencent is one of the few firms with the potential to succeed in the U.S., Clendenin said. The company already has offices in the country, and has acquired financial stakes in U.S. game developers such as Epic Games and Riot Games.

    "It's just the beginning for them," he said. "Even if WeChat isn't wildly successful, if it's a moderate success and get's their name out there, then who knows. Maybe in five years at that point, Tencent will have established a beachhead and improved its reputation."

    Analysts also said that the WeChat app is well-designed, and built for an international user base, rather than a Chinese one.

    "If you didn't know it was from China, you wouldn't be aware of that," said Duncan Clark, chairman of Beijing-based technology consultancy BDA. "It's transcended it's Chinese-ness."

    Tencent has been continually adding new features to the app, to include social networking functions such as a status feed. This could make the app not only a threat to WhatsApp, but also to Facebook, Clark said.

    "The Chinese are coming," he added. "They have so much capital. Tencent is neck and neck with Facebook. It's very strong company, and in that respect it has the resources to take on the big guys."
     
    Last edited: Feb 27, 2013
  2.  
  3. nimo_cn

    nimo_cn Senior Member Senior Member

    Joined:
    Aug 18, 2009
    Messages:
    3,491
    Likes Received:
    592
    Tencent is also promoting WeChat through a company name Ibibo in India, people who are interested in this app can download it to your smartphone from the link below.

    WeChat - Download

    You may meet some good Chinese netizens who talk sense, unlike we 50-centers, you never know.
     
  4. amoy

    amoy Senior Member Senior Member

    Joined:
    Jan 17, 2010
    Messages:
    5,519
    Likes Received:
    1,544
    Interesting. Never tried weChat before n thought it just similar to Skype or MSN or Weibo. How abt running it on Android?

    Sent from my 5910 using Tapatalk 2
     
  5. t_co

    t_co Senior Member Senior Member

    Joined:
    Dec 20, 2012
    Messages:
    2,537
    Likes Received:
    699
    Location:
    China
    Wechat is ----ing amazing. Love the app, so easy to use. Efficient, too--uses 25% less of my dataplan than competing apps
     
  6. cir

    cir Senior Member Senior Member

    Joined:
    Dec 28, 2010
    Messages:
    1,996
    Likes Received:
    269
    I consider WeChat one of the best innovations since sliced bread。

    Since using WeChat,my monthly mobilephone bill has on average dropped 85%。:thumb::cool2:
     
  7. huaxia rox

    huaxia rox Senior Member Senior Member

    Joined:
    Apr 4, 2011
    Messages:
    1,401
    Likes Received:
    103
    the significence here is prc is said to be not having some great private owned companies.....well i agree to some extent (although i firmly believe no matter its a state owned company or private so long as its a good company then thats ok).....

    compared to state owned giants like Sinopec who can have yearly revenue of more than 300 billion USD tencent and huawei and lenovo etc etc are really like penat in size but they are growing very fast and what they are doing is surely more high tech and high end and their products and services even have more influence than those who can only drill oil or generate electricty or produce steel......

    i think in this decade we can finally see some sumsung or mirosoft kinds of chinese companies out there......
     
    Last edited: Mar 1, 2013
  8. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,118
    Likes Received:
    23,543
    Location:
    Somewhere
    No offence meant.

    Just curious.

    Why name it Tencent, when it has negative connotations?

    Is it a Govt sponsored group who are active?
     
  9. huaxia rox

    huaxia rox Senior Member Senior Member

    Joined:
    Apr 4, 2011
    Messages:
    1,401
    Likes Received:
    103
    what do you mean by negative connotations?? 50 cents???

    the chinese name of the company is 腾讯 and if you directly put it as teng xun accoding to the chinese pinyin then western consumers would feel weird to pronunce the word.....so some chinese firms would change the name in english language....

    and of course govt can have some influnce in some private owned companies like tencent.....its not a small one in prc......
     
  10. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,118
    Likes Received:
    23,543
    Location:
    Somewhere
    huaxia rox is equally weird to pronounce.

    so, should you make it Mack Tuchkoo?

    Have you not noticed that 'Sinkiang' is now written and pronounced as 'Xinjiang'?

    Or 'Peiping', 'Peking' as 'Beijing'?

    So, why has China to cater for the Western convenience for pronunciation?

    They should get used to the Chinese way. Take it or leave it!

    Or is it more important to the Chinese to make it easy so long as MONEY is reaped and in that field Nationalism and Patriotism and Chinese Supremacy is secondary?

    I fail to understand why China has to change everything to suit the West!

    China is calling the shots in the economy and so the West should change their names to the Chinese way!
     
    Last edited: Mar 1, 2013
  11. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,118
    Likes Received:
    23,543
    Location:
    Somewhere
    What is so difficult to pronounce that?
     
  12. huaxia rox

    huaxia rox Senior Member Senior Member

    Joined:
    Apr 4, 2011
    Messages:
    1,401
    Likes Received:
    103
    1 i myself is not a company and how do you feel about the ID i use is not what i need to concern....

    2 every mainland chinese company has rights to choose its name be it chinese name or english or spanish or what ever according to certain laws.....huawai thinks its good to have this english name and tencent thinks tencent is good to choose this.........whats the freaking problem here??? whats your suggestion??? name it tollywood???

    3 chinese only make chinese language the only offcial language.......this alone says we dont need to change anything to suit the west.....of course you are from a nation using english as your offical language and you used to have some defence minister called George Fernandes..........i dont expect you to understand what i am saying but what a joke you come here to lecture us chinese about 'change everything to suit the West'???do you see any chinese politicians have english names but not chinese???

    4 the beijing peking kind of changes is due to simple reasons....cpc won the civil wars then the pinyin was introduced....according to the pinyin system 北京 should be called beijing.......you can pick to ignore this if you dont want to do anything related to prc. if not the case you will know the offical translation of the capital of prc in english is beijing which you have to make sure correctly written when say signning legal documents.....and how foregners like westerners feel about the name beijing is not what we need to concern........and actually whats so specially about that??? Mumbai?Bombay?


    when did i say its difficult to pronounce???
     
    Last edited: Mar 1, 2013
  13. nimo_cn

    nimo_cn Senior Member Senior Member

    Joined:
    Aug 18, 2009
    Messages:
    3,491
    Likes Received:
    592
    well, 50-cent had not been invented yet when Tencent was established.

    Tencent is a south Africa sponsored company.

    Sent from my HUAWEI T8951 using Tapatalk 2
     
  14. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,118
    Likes Received:
    23,543
    Location:
    Somewhere
    No issues with you and your name or what China decides to do.

    Only issue is that fror Money China will sell her soul!

    All the Patriotic Nationalism and hoohah is sold to the altar of MONEY!

    Your post is am example of failure to justify a sausage and cover up selling your Soul for Money!
     
    Last edited: Mar 1, 2013
  15. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,118
    Likes Received:
    23,543
    Location:
    Somewhere
    Not Chinese?
     
  16. DivineHeretic

    DivineHeretic Senior Member Senior Member

    Joined:
    Jan 1, 2013
    Messages:
    1,050
    Likes Received:
    1,183
    Location:
    Assam
    The US and indeed the western market is saturated with local service providers, who are giants of the industry. It would have been better, and easier if the first targets were made in Africa, and the Latin America, where competition is not so stiff, and internet penetration is increasing at a brisk rate. Such conditions are ideal for establishing a foothold in a foreign country, and provides ample opportunities for growth to greater number, atleast initially.

    But, anyways, I cant see why they shouldn't go for the biggest market. As long as they have something new and refreshing to offer, people will be interested. In any case, it will be a good exposure to the outside world for a chinese company.

    There will be initial doubts on the minds of the people regarding communication privacy, going by the CCP records. They could assuage this by basing their servers in the US itself.
     
  17. nimo_cn

    nimo_cn Senior Member Senior Member

    Joined:
    Aug 18, 2009
    Messages:
    3,491
    Likes Received:
    592
    South African Naspers purchased a 46% share of Tencent in 2001 when Tencent was going bankrupt 3 years after it was founded, and as of 2010 Naspers was still holding 36% of Tencent.
     
  18. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,118
    Likes Received:
    23,543
    Location:
    Somewhere
    Thanks.

    So it is a Joint ownership so to say with the Chinese being the major shareholder.
     
  19. amoy

    amoy Senior Member Senior Member

    Joined:
    Jan 17, 2010
    Messages:
    5,519
    Likes Received:
    1,544
    My feel Ten Cent has a big chance to b another Facebook another Twitter.

    It's gettin more and more globalised.

    Tencent to Gain Nationwide Visibility in Indonesia With Global Mediacom Partnership - xinmsn tech & gadgets
    Chinese Tencent and Baidu still grow well in Vietnam despite bad warnings - News VietNamNet
    A bit convinced of the conspiracy theory that China's ban on Google Facebook Twitter and Youtube gives ways to their Chinese parallels Baidu, Weibo, Ten Cents and Youku+Tudou and the likes, in view of the vast market potential China herslf holds ah ha?!

    Give its stock a "buy"?
     
  20. nimo_cn

    nimo_cn Senior Member Senior Member

    Joined:
    Aug 18, 2009
    Messages:
    3,491
    Likes Received:
    592
    I never said Naspers was the only owner of Tencent, but with 36% share, Naspers is stil the largest shareholder, even larger than the main founders.

    And if Naspers didn't came to purchase the share of Tencent in 2001, it is very likely that Tencent couldn't make it. The first 3 years of Tencent was very tough, because it wasn't profitable at all.

    Before Naspers, the founders of Tencent wished to sell Tencent to ChinaNet, a state-owned telecom company at the price of 1 million RMB, but ChinaNet only offered 600,000 RMB, so the deal failed.
     
    Last edited: Mar 2, 2013
  21. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,118
    Likes Received:
    23,543
    Location:
    Somewhere
    Then who owns Tencent?

    And why is it is China's Tencent?

    Tencents Homepage states:

    It is said that Jason Zeng (曾李青), is the largest shareholder.

    In May 2001, Naspers acquired a 46.5% interest in Tencent Holdings Limited.
     
    Last edited: Mar 2, 2013

Share This Page