All the business Tencent built up is basic on two platforms:
Tencent instant messages and internet service portal. Until Jun, 2005, Tencent
has initially completed the layout of online business model of industrial life.
Tencent established QQ, internet service portal, QQ games and mobile service
portal, which has built a huge online community. To meet the demand for
information transfer and knowledge acquisition, Tencent develops internet
service portal, QQ IM and QQ e-mail. To meet the demand of group communication and resource sharing, Tencent releases
Q-Zone and QQ group. In the aspects of personality showing and entertainment service,
Tencent has diversity of virtual imagine products, including QQ pet, QQ show,
QQ games, QQ music, QQ radio and QQ live TV. To meet the demand of online
trade, Tencent releases E-commerce Pai Pai online trade.
Most people have inertia
when they using internet service. People are lazy to find another service
provider if one website or one provider can satisfy all their needs. They will
focus on using the same service provider. Otherwise, searching a new provider
will cost more time and money. So in this way, Tencent has the inherent
advantages to open up e-commerce. Because Tencent has occupied 76% of the
instant messaging market share. That means they have the monopoly advantage on customer
channel.
At the same time, Tecent
released the special service for membership customers. Tencent designs a lot of
privileges special for advanced users, and strengthen the manifestation of
"Member" and the difference between ordinary users. Through this
exclusive glory service, Tencent attracts ordinary users to register as a membership.
Based on this model, Tencent continue to introduce new products and new levels
to continuously meet the membership user endless "desire". So that
membership users will stick on this product for period of time even though
membership has to pay money every month.
In addition, Tencent
opens platform for third-party applications to paid subscribers that cover almost
users of all ages. Age 14 to 25 years old is the largest group of paid
subscribers. It shows that the paid subscribers age are getting younger and younger.
Paying customers are mainly distributed in early high school and undergraduate;
mostly to high school and undergraduate education, accounting for 71.39%. This phenomenon
exists for two main reasons. First, except employees who work in the office,
student is a group spending the longest time on computer. They are also the
target customer of Tencent. According to the research, students and white-collar workers (including company
employees and management personnel) are the highest portion of Tencent users,
respectively 32% and 30%, accounting for 15% of the users of freelance. Second,
either membership fee or the games fee is cheap so that students can afford
every month. Furthermore, white-collar workers have a large portion on online
shopping or trade, because of their higher purchasing power and working environment.
The proportion of
male and female users is 59:41. Men will focus on playing several applications each
month, and male users are twice active than women. In the opposite, women
prefer to try different applications. In addition, men prefer to play the
game-type applications. Compared to men, women prefer to play non-active game,
such as tools, lifestyle applications basic on their personalities.
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