The term “private traffic” has gained significant attention in China’s marketing industry in recent years. So, what exactly is private traffic and how does it benefit brands? In this article, we aim to explain how MyMyPanada utilizes China’s private traffic for marketing purposes and achieves remarkable sales results. Our goal is to provide an effective revenue growth strategy for brands seeking opportunities in China’s vast consumer market.
What is China’s Private Traffic?
The term “private traffic” (私域流量) in China refers to the user traffic accumulated by businesses or individuals through own efforts (eg. official websites, apps, and brand social media accounts). They provide valuable user data that belong to the brand and are utilized for segment targeting and personalized marketing strategies.
In contrast, public traffic (公域流量) refers to the traffic obtained through other channels such as large e-commerce platforms like Tmall and JD.com. Brands typically set up stores on these platforms to gain exposure and generate sales through paid advertising and searches. However, brands have limited control over these platforms as user data belong to the marketplaces or platform providers. Hence, brands looking to attract traffic to their stores will have to pay for the engagements with users.
With the intensifying competition in China’s e-commerce market and the emergence of social media e-commerce platforms like Xiaohongshu and Douyin, traffic is becoming more dispersed while customer acquisition costs are rapidly rising. Consequently, retail brands look for cost-effective methods by building public traffic while simultaneously cultivating brand loyalty through China’s private traffic.
Apart from the advantages of low-cost acquisition and repeat purchases, China’s private traffic enables brands to optimize products/services based on valuable feedback from customers. Brands can build closer relationship with customers, develop promotional campaigns tailored to their needs; and ultimately create brand loyalty.
How To Effectively Utilize China’s Private Traffic?
WeChat is considered the ultimate tool for managing China’s private traffic due to its immense popularity in China, boasting over 1.3 billion users, and its diverse range of applications. With WeChat, you can effortlessly stay connected with friends, promote your brand through public accounts, enjoy short videos, and even shop online. The introduction of WeChat mini programs in 2017 further expanded the application possibilities within the platform. These embedded apps eliminate the need for downloads or installations as users can directly access them through search or shared links while enjoying their full functionality.
According to QuestMobile‘s data released in 2023, there are already 900 million users of WeChat mini-programs with popular categories including lifestyle payments, travel services, mobile phone top-ups, and shopping experiences. Leveraging WeChat’s massive user base and the convenience offered by internal mini-programs has led more brands to choose this platform for operating their private traffic.
In summary, brands follow these steps to tap into user value and extend customer lifecycle when operating their private traffic on WeChat:
1) Attract potential customers by establishing a public account where marketing articles or advertisements are published; this encourages consumers to pay attention to the brand or connect with the brand ambassadors in WeChat account.
2) Retaining users through regular communication between brand ambassadors and consumers; sharing information about special promotions or new products helps maintain engagement.
3) Driving sales not only through one-on-one communication but also by setting up multiple WeChat groups for one-to-many interactions. The direct nature of communication on WeChat facilitates effective customer engagement.
Case Study: MyMyPanada Cross-Border E-Commerce Mini–Program
As a one-stop cross-border e-commerce service provider, MyMyPanada is well-versed in the development trends of the Chinese e-commerce market. Recognizing the current status of private domain traffic, it has introduced a cross-border mini-program mall. International brands can conveniently synchronize product information and inventory data to the mini-program and commence selling. Moreover, brands need not worry about cross-border customs clearance procedures. After order completion, MyMyPanada will report order information, logistics details, and payment information to the customs system for inspection. Products entering China through cross-border e-commerce not only enjoy a higher clearance success rate but also benefit from a 9.1% preferential tax rate, significantly lower the cost of doing business in China.
Additionally, the key factor driving sales in MyMyPanada’s e-commerce mini-program lies in its commission mechanism, similar to affiliate marketing. Overseas, consumers shop on different websites, and brands collaborate with influencers or agencies to promote their products. After order completion, brands pay the promoters corresponding commissions. In contrast to overseas practices, Chinese consumers not only shop on large e-commerce platforms but also choose various mini-program malls. To boost sales growth and better incentivize partners in promoting products, MyMyPanada has introduced a commission mechanism.
MyMyPanada believes that this is undoubtedly a win-win solution. For brands, having numerous partners promoting their products allows for an effective reduction in marketing and advertising costs. Moreover, this mechanism is results-oriented, as brands only need to pay commissions to partners once their orders are successfully completed. For partners, it’s a low-risk endeavor since their role is to expand their social networks and promote products. They don’t have to incur additional costs or invest resources in handling various complex logistics and customs issues.
Within the mall, partners can easily adjust prices through simple steps, and the system will automatically calculate profits and potential commissions. After sharing the product via a referral code or WeChat chat, the updated price is displayed in real-time, activating the partner’s private domain traffic.
The future operation of private domain traffic will become a crucial part of brand marketing strategies. Tailoring localized marketing plans helps enhance your brand’s visibility and increase sales. You can also directly engage with our cross-border marketing experts to enhance your business strategy in China.
