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China’s Internet companies invest billions in virtual red packets for Lunar New Year as they vie for more traffic

Chinese language tech firms are planning to spend billions of yuan in digital purple packets for the upcoming Lunar New Yr as they search to seize an even bigger share of Web visitors over the nationwide vacation.

Brief video app Douyin, owned by Beijing-based Bytedance, kicked off its purple packet marketing campaign on Jan 14 with customers capable of share in 2bil yuan (RM1.18bil) value of money handouts, whereas search engine large Baidu launched its marketing campaign on Wednesday with 500mil yuan (RM295.49mil) of handouts for the vacation.

Douyin’s rival Kuaishou will spend 1bil yuan (RM590.98mil) on its marketing campaign for Lunar New Yr because the unique “purple packet” accomplice for China Central Tv’s (CCTV)’s Spring Pageant Gala.

Alibaba Group has allotted 500mil yuan (RM295.49mil) in money handouts on its digital fee platform Alipay and an extra 2bil yuan (RM1.18bil) in allowances throughout all the lunar new 12 months vacation on its e-commerce platform Taobao, which is the unique e-commerce accomplice for the CCTV gala. Alibaba is the guardian firm of the South China Morning Put up.

The standard observe of giving out money in purple paper envelopes – thought of an auspicious color for the Chinese language – has more and more moved on-line with the convenience of smartphone-based cellular funds. Many firms in China routinely maintain purple packet promotions, giving out money or rebates that customers can “snatch” by way of cellular apps.

The Chinese language Lunar New Yr vacation interval presents big visitors potential for Web firms. Final 12 months, CCTV’s Spring Pageant Gala attracted greater than 1.1 billion viewers, the most-watched nationwide community TV broadcast.

Tech firms like Bytedance and Baidu are benefiting from the digital purple packet campaigns to spice up visitors of their respective Web ecosystems. Eight apps owned by Bytedance, together with fashionable information website Jinri Toutiao, might be concerned within the purple packet marketing campaign hosted by Douyin.

Analysts say making a gift of cash in the course of the vacation interval is a price efficient technique to shortly increase consumer numbers.

“There could be a massive leap in consumer development over a brief time period,” mentioned Dingding Zhang, former head of Beijing-based analysis agency Sootoo Institute and now an unbiased web trade commentator.

“However they will’t merely give away cash…they should have methods to maintain customers on the platform,” he added.

Alibaba’s Alipay and Tencent’s WeChat first launched digital purple packets in 2015, sparking a battle for shoppers who scrambled to seize as a lot of the free cash they might utilizing their smartphones. Since then, China’s conventional lunar new 12 months has develop into cashless. Now, on-line apps like WeChat have develop into the battlefield for Chinese language individuals attempting to gather probably the most amount of cash. – South China Morning Put up

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