Wechat Expanding to the USA
CHINA IS TAKING OVER. Funnily enough, I bet most people who use WeChat outside of China have no idea that it's even developed by a Chinese company. Tencent are smart though, they have a name that fits them anywhere.
WeChat in America
The great news is that Tencent holdings, based in Shenzhen and listed in Hong Kong is expanding its horizons by setting up camp in the US of A - land of the free and home of the brave.
Now, this move across the pond is solely intended to develop their award winning social app: WeChat. So ubiquitous in China today that even Sina is getting nervous about its popularity.
Surely China has a wealth of people that could still become new WeChat users. Well I thought this too my dear friend, until I actually went to look at the numbers. As it turns out there could be something close to 500 million people on WeChat by the end of the year. That's roughly the number of people online in China. Admittedly, this number is growing as income levels surge upwards, but it does show that the company needs to find another pool of consumers if it is to keep on expanding.
A long road ahead
It's not going to be easy for Tencent to pierce into the American market but their business plan of sorts is to think that if they crack this market, others will be substantially easier.
Not a stupid idea I must say. However, they will be confronted with some obstacles. The main one being coming up against already existing similar services. Indeed, the US is a great fan of Whatsapp, an app not unlike WeChat but who allows anyone to chat together instead of having to add each other (adding people?! too much effort).
A new era for China
If they do manage to promote their services smartly in the US - the snowball effect could be quite quick.
This would also mean that Tencent is the only Chinese company at the moment who would be able to tap into a foreign market and actually make a mark.
Soft Power influence here we come!