Cartier, Bulgari and other luxury brands are flocking to WeChat

Not long ago, people in China would need to visit a posh, stylish mall for luxury shopping. That’s rapidly changing as high-end brands race to embrace digital channels, which aren’t just the obvious options of ecommerce platforms or brand-owned sites. In China, Louis Vuitton, Cartier, Bulgari and other luxury brands are now connecting and selling to millions of customers through WeChat .

Many know WeChat as China’s largest messaging app, and perhaps how it has over time morphed into an all-in-one ecosystem that lets one chat, run errands, hire services, and shop for an infinite list of things. Now the flurry of different products people find on WeChat may include a $10,000-plus purse.

The trend, according to Pablo Mauron, partner and managing director for China at Digital Luxury Group, a luxury marketing agency, reflects WeChat’s huge potential as an app tailored to transactions and services.

“I think WeChat is finally becoming what it’s supposed to be for luxury brands, which is not just a social media app,” Mauron told TechCrunch over a phone interview. “One [function] could be for customers to buy the product. Another could be for brands to build a loyalty program. Customers can pre-order a product or set up an appointment with the [offline] store.”

Indeed, according to a new report from advisory firm Gartner, 60% of the fashion luxury brands it surveyed have at least one WeChat store, surging from just 36% in 2018.

Like Facebook, WeChat allows businesses to set up their online shops. The Chinese app now boasts more than 1 billion monthly users, but these people aren’t readily exploitable as customers. WeChat, unlike Alibaba, isn’t a marketplace and does not have a central search engine that indexes all the merchants selling over its platform.

A WeChat store is thus more comparable to a site store — it exists in the online universe but requires a lot of marketing before consumers stumble upon it. People may discover Wechat stores by scanning a QR code at a brick-and-mortar outlet, clicking on an ad embedded in an online article or through a slew of other creative ways that merchants devise.

Loyalty building

Despite the challenges in driving traffic, WeChat stores hold great appeal to brands for they offer a large toolbox for boosting customer loyalty, observed Mauron.

Shoppers can, for instance, talk to shop assistants over WeChat or check their membership status with just a few taps on the screen. It’s the social prowess of WeChat that separates it from entrenched ecommerce candidates like Alibaba and JD.com, which focus more on transactions. In a way, WeChat is not directly taking on Alibaba but playing a complementary role by providing customer relationship management (CRM) capabilities.

louis vuitton china

Screenshot of Louis Vuitton’s WeChat mini app for customers in China 

A lot of these service-oriented features are powered by so-called “mini programs,” which are essentially stripped-down versions of native apps that run within a super app such as WeChat. As the Gartner report points out, the rise in WeChat store adoption is linked to the increased use of mini programs by luxury brands.

A total of 69% the luxury brands in Gartner’s sample group have at least one mini program. The adoption rate among fashion-focused luxury brands grew from 40% in 2018 to 70% in 2019, while the watch and jewelry category climbed from 36% to 62% over the same time period.

“WeChat is becoming the most appealing option for brands that want to think about CRM, ecommerce strategies or simply other value-added services without having to rely on external partners,” Mauron suggested, referring to Alibaba, JD and others that are traditionally the more popular choices for digital sales.

From social to shopping

While WeChat imposes certain rules on sellers, it’s built a reputation for being more laissez-faire compared to conventional ecommerce companies. For one, WeChat doesn’t (yet) take commissions from ecommerce transactions as online marketplaces normally do. As Mauron noted, “Tencent’s business model is not so much about making money out of the mini program transactions.”

On the other hand, WeChat’s e-wallet WeChat Pay benefits from processing transactions happening inside the chat app where Alibaba’s Alipay isn’t available.

That’s a crucial development because WeChat Pay has been for the most part associated with micropayments, thanks to a series of early campaigns that encouraged people to send cash-filled digital packets to each other, a tradition deep-rooted in a culture of exchanging cash during holidays.

Alipay, by contrast, is more extensively used for online shopping given its ties to Alibaba.

With the rise of mini app-enabled ecommerce, however, people are starting to use WeChat Pay for big-item purchases too.

“This allows WeChat to take market share in online payments. That’s the other big battle, which is between Alipay and WeChat Pay,” said Mauron.

As of January, Alipay had at least 1 billion monthly active users through its own app and mobile wallet partners around the world. WeChat doesn’t break out the user number for its e-wallet but said daily transaction volume passed 1 billion in 2018.

Week-in-Review: YouTube’s awful comments and Google’s $1B tech-free investment

Hello, weekend readers. This is Week-in-Review where I give a heavy amount of analysis and/or rambling thoughts on one story while scouring the rest of the hundreds of stories that emerged on TechCrunch this week to surface my favorites for your reading pleasure.

Last week, I talked about how the top gaming industry franchises were proving immortal and how that could change. I mainly asked questions and I got some great answers in my email. Keep the feedback coming.

An interesting corollary to that conversation was Niantic releasing its Harry Potter title this week, a game that takes liberal gameplay cues from Pokémon GO but attaches it to new IP. The big question is whether Niantic can strike gold twice; here’s an Extra Crunch interview my colleague Greg did with the startup’s CEO.


This week, the biggest tech topic at hand from the big companies was probably Facebook’s Libra cryptocurrency, I’d normally dig into that but my colleague Josh did such a bang-up job breaking down Libra and why it’s important that I don’t feel the need to. You can read his explainer below.

Facebook announces Libra cryptocurrency: All you need to know 

In the midst of scouring this week’s headlines, a pretty low-key story from Friday caught my eye detailing how YouTube was testing a version of its app where the comments were hidden by default. Companies test this stuff all the time and it’s hardly a commitment but it did make me reflect on how the nature of user-submitted comments has shifted and how certain platforms develop community cultures based on the way those comments are sorted.

Web comments have been searching for their final form for a while now. Twitter turned comments into the main 140 character dish, but Twitter’s influence is getting baked into a ton of platforms. Sites like Instagram are starting to gain a greater understanding of how users want responses to complement their content and the opportunities they’ve seized on really showcase the user-submitted opportunities being wasted by platforms like YouTube and Twitch.

YouTube downgrading their comment visibility kind of highlights what a cesspool the company has allowed them to turn into, but rather than being a place where people are vile, the platform just hasn’t grown them into something useful or exciting over the past decade.

As Instagram continues to become a place where more and more famous users interact with each other, the comment fields are becoming the place where users “bond” with the accounts they follow even if they’re still lurking around and reading how the account responds to other high-profile users. 

This is how public channels with big audiences should operate. Sure, it’s partially a result of the culture of the platform, but algorithms can shape these cultures.

The issue is so many other comment systems are seemingly organized to treat anonymous users, real-name users and verified personalities the same. Ascribing an equal weight to all of these types of content is kind of a surprisingly quaint way to handle user-generated content, it’s also a great way for platforms to find engagement ceilings and the limits of what spam can become.

You don’t have to go searching far through TechCrunch’s stories to find some good old-fashioned “how I earned $72/hour working from home” spam, but just because something isn’t spam doesn’t means it’s worthwhile. Platforms have developed their own comment memes based on what can play the algorithms, it’s not particularly useful, “Like if Jimmy Fallon brought you here,” “Like if you’re watching this in 2019.”

Platforms organized around building communities have an incentive to elevate anonymous voices and foster relationships and dialogue. Back in the Gawker days, most of my time on the site was spent digging through the comments looking for commenters I recognized and enjoying their dialogue. That’s what Reddit has become in a lot of ways, a place where the posts are secondary to the reactions, but the forum systems of web 1.0 aren’t made for such general influencer-focused platforms of 2019 and it’s an area where there are a lot of wasted opportunities.

YouTube comments have garnered this reputation for being so laughable bad because the company has let the average of what’s submitted define them, acting as a one-size fits all for platforms that are decidedly more dynamic.

Send me feedback
on Twitter @lucasmtny or email
lucas@techcrunch.com

On to the rest of the week’s news.

Trends of the week

Here are a few big news items from big companies, with green links to all the sweet, sweet added context.

  • Tesla paints it black (for a price)
    Tesla is looking to keep those margins hopping and there next play to make your Tesla a bit more pricey is by making the white paint job on its vehicles, making white the standard color. It may seem like a rough deal, especially when you can a monitor stand for your new Apple Display for the same price. Read more here about why Elon did this.
  • Google drops a B on the Bay
    To those living in the arena of Silicon Valley, it’s no secret that the housing shortage is hurting wallets. How much of that is big tech’s fault and how much of it is the local government’s fault is hard to tell at times, but certainly neither is doing as much as they could. This week Google pledged a whopping $1 billion worth of assistance to the problem. Forking over $750 million worth of real estate and a quarter-billion dollars worth of funding for residential projects is quite the pledge, let’s see how the money gets spent. You can read more here.
  • Slate failures
    Google’s Pixel Slate tablet was such hot garbage that the company is leaving the tablet game for good and focusing on its Pixel laptop line instead. Read more here.

GAFA Gaffes

How did the top tech companies screw up this week? This clearly needs its own section, in order of awfulness:

  1. Apple recalls some MacBooks:
    [Apple issues voluntary recall of 2015 MacBook Pro batteries due to overheating concern]
  2. Google swats down shareholder vote:
    [Google defeats shareholders on ‘Dragonfly’ censored search in China]
  3. Facebook in hot water over fake review sales: 
    [Facebook and eBay told to tackle trade in fake reviews]
  4. Maps keeping it real fake:
    [Google responds to report that concluded there are millions of fake business listings on Maps]

Image via Getty Images / Feodora Chiosea

Extra Crunch

Our premium subscription service had another week of interesting deep dives. TechCrunch’s Ron Miller wrote a story asking VCs and CEOs just how much startup founders should be paying themselves.

Startup founders need to decide how much salary is enough

“…Murat Bicer,  general partner at CRV,  says you could probably ask 10 VCs this question, and get 10 different answers, but he sees the range at the low end of perhaps $125,000 and at the high end maybe $200,000, depending on the location of the startup and the cost of living in a particular city…”

Here are some of our other top reads this week for premium subscribers. This week TechCrunch writers talked a bit about keeping your H-1B status and how you should be negotiating your term sheet with strategic investors.

Want more TechCrunch newsletters? Sign up here.

Careteam aims to unite patients and healthcare providers with a platform approach

How best to untangle the Gordian knot that is navigating your own healthcare? It’s a tricky question, and one that seems to have become only more complicated as technology improves, in many regards – systems don’t necessarily speak to one another, and it’s still hard for an ordinary patient without specialist knowledge to make sense of everything. Careteam is a Canadian startup hoping to address that, looking to replicate the kind of advances made possible by technology in industries like e-commerce and enterprise software.

Careteam co-founder and CEO Dr. Alexandra Greenhill has experienced the frustration of being a tech-savvy person in a world of healthcare that can seem technologically inept – both as a practicing GP, and as someone who depends on the healthcare system as both a patient, and a relative of patients with more sophisticated medical needs.

“I spent more than 15 years innovating within the healthcare system,” Greenhill told me in an interview. “I computerized hospitals, helped doctors adopt electronic medical records and other types of innovation practices. And then for the last eight years, I’ve been in tech, trying to figure out how to build the kind of technology we need in health, and especially digital health.”

All that experience led Greenhill to the realization that while there were many companies building specific solutions for real, but relatively narrow problems, that didn’t reflect how most people experienced care. Greenhill and her team of three other co-founders (Jeremy P. Smith, Robert I. Atwell and Kevin Lysyk) had all had unfortunate, but eye-opening experiences with family members in need of treatment for major diseases.

“You step in and you discover that cancer care, palliative care, post-surgical care – there’s so many things that would have gone wrong if we dint’ have the expertise ourselves,” Greenhill said. “But in the meantime, you end up being sort of pulled into multiple directions and saying ‘this makes no sense.’ You know, I can purchase stuff online in my private life; I can use all kinds of tools in the business world, and yet it’s back to paper in voice in health, which matters most.”

Careteam CEO and founder Dr. Alexandra Greenhill

What Careteam provides is collaboration for care – true collaboration, designed to span patients, their doctors and other healthcare pros, their families and anyone that matters to them in the course of pursuing their care. It provides the ability to communicate instantly, build care plans that integrate all aspects their tailored health plans, receive custom-configurable notifications and measure progress towards specific goals set by patient and health care providers.

Part of the reason this process has become opaque or difficult is precisely due to innovation: Greenwood takes issue with the prevailing narrative that the healthcare industry is somehow allergic to innovation.

“There’s this sort of perception that healthcare doesn’t innovate, but it’s also almost insulting to the healthcare system, because we have innovated – we save people from cancer, where we couldn’t” she noted. “We cure HIV, in some cases, and we prevent it from being transmitted to unborn babies of mothers with full-blown aids and things that in my working lifetime, were impossibilities; it was science fiction to help someone with HIV. And, and we’ve managed to do all of that, and it’s a success story. We’ve created complexity, we’ve created people who live with 12 conditions for many, many years and take complicated drug regiments.”

In addition to advances in treatment, Greenhill notes that she and her team couldn’t have build Careteam five years ago, because cloud storage wasn’t secure and everything had to be done on a site-specific instance, and that would’ve been cost-prohibitive to build. In other words, technology has been applied to, and vastly improved, healthcare overall, regardless of the general perception of the industry as an innovation laggard.

That’s why Greenhill’s startup doesn’t shy away from complexity – they embrace it. Careteam is designed not to try to and normalize and standardize the varied and highly specialized landscape of healthcare solutions and providers through anything like a one-size-fits-all API. Instead, the company’s tech development is cleverly designed to be flexible when it comes to integrations, and

“We collectively spent $1.9 billion in Canada, to try and digitize the healthcare system, create standards and create some exchange between data,” Greenhill said. “The NHS tried the same, big U.S. hospital systems have created their own little sort of islands, including Kaiser and Mayo and others. And the conclusion of all of that is standardization in healthcare just doesn’t seem to catch on.”

Careteam’s approach has been instead to integrate specific clinics, and let the benefits that practitioners and patients derive benefits and help spur the adoption of the platform to their companion organizations and clinics. It’s a sort of rhizomatic approach that starts with a node central to a patient’s care and spreads through the healthcare professionals and members of the patient’s support network that the product helps. And integration is made possible without technical demands on the part of partners thanks to the work of CTO Lysyk, according to Greenhill.

The Vancouver-based startup is working with the Centre for Aging + Brian Health in Toronto, Ontario in a validation program announced last year, and also raised an initial round of funding in January led by BCF Ventures with participation from Right Side Capital, Globalive Capital, Atrium Ventures, and angels Barney Pell and Ajay Agarwal .

Amazon expands air cargo fleet with 15 more planes, will have 70 planes by 2021

Following news from earlier this month that FedEx was dumping Amazon from its air cargo service, Amazon this morning announced the expansion of its own air delivery network, Amazon Air. The retailer says it’s leasing an additional fifteen Boeing 737-800 cargo aircraft from partner GE Capital Aviation Services (GECAS). These will join the five Boeing 737-800’s already leased from GECAS, announced earlier this year. The aircraft will fly out of over 20 U.S. air gateways in the Amazon Air network.

In addition, Amazon says it will open more air facilities in 2019, including at Fort Worth Alliance Airport, Wilmington Air Park, and Chicago Rockford International Airport. Meanwhile, the main Air Hub at the Cincinnati/Northern Kentucky International Airport will open in 2021.

“We’re delighted to support Amazon Air’s dedicated air network,” said Richard Greener, GECAS Cargo’s Senior Vice President, in a statement. “The capability of the 737-800 freighter will further Amazon’s ability to provide reliable and regional delivery to its customers for years to come.”

The Amazon Air network, then called Prime Air, was first launched in 2016, with the goal of speeding up Amazon’s e-commerce deliveries, particularly for its Prime members. But over the years, the competition with partners-slash-rivals like FedEx have heated up — and not only on air cargo, but also in newer areas like ground delivery robots and drones.

At the end of last year, Amazon announced more aircraft additions for Amazon Air, bumping the network from 40 planes to 50. Today, it says it’s on track to reach 70 planes by 2021, thanks to this new expansion.

The company also claims to have created thousands of U.S. jobs thanks to Amazon’s investment of millions into its air network.

“These new aircraft create additional capacity for Amazon Air, building on the investment in our Prime Free One-Day program,” said Dave Clark, Senior Vice President of Worldwide Operations at Amazon, in an announcement. “By 2021, Amazon Air will have a portfolio of 70 aircraft flying in our dedicated air network.”

These investments around delivery logistics come at a time when Amazon says it’s trying to speed up Prime from two days to just one. The news prompted Walmart to announce its a next-day shipping service of its own. Target, meanwhile, recently launched an integrated same-day shipping service on its website, powered by its same-day service Shipt.

Amazon responded by noting it already has over 10 million items available for one-day shipping today — reminding rivals that it’s still leading the market on this front.

Amazon also took the time today to highlight other areas where it’s investing in supply chain initiatives, including its Delivery Service Partner program, which helps people (including Amazon employees) start their own Amazon delivery business; plus Amazon’s crowdsourced package delivery workforce Flex; and its dedicated network over 10,000 trailers to increase Amazon’s own trucking capacity.

Though not mentioned, Amazon also just rolled out a new Amazon Flex app for iOS. Launched on the App Store on June 12, the app lets individuals sign-up and be vetted to become an Amazon Flex contractor right from their iPhone.

Image credit: Prime Air branded plane, via Amazon Press Center; not representative of today’s news

India’s payments firm MobiKwik kick-starts its international ambitions with cross-border mobile top-ups

MobiKwik, a mobile wallet app in India that has expanded to add several financial services in recent years, said today it plans to enter international markets as it approaches profitability with the local operation. The company is kick-starting its overseas ambitions with cross-border mobile top-ups support.

The 10-year-old firm said it has partnered with DT One, a Singapore-headquartered payments network, to enable international mobile recharge (topping up credit to a mobile account), rewards, and airtime credit services in over 150 nations across some 550 mobile operators. The feature is now live on the app.

The feature is aimed at Indians living overseas and immigrants in India, Upasana Taku, co-founder of MobiKwik told TechCrunch in an interview. Millions of Indians go overseas to pursue education or look for a job. Currently, there is no convenient way for them to either help — or receive help from — their families and friends in India when they need to top up their phones.

Similarly, millions of people come to India in search for a job. The new functionality from MobiKwik will allow their families and friends to top up their mobile credit as well. Taku said there is no processing fee for customers as MobiKwik is absorbing all the overhead expenses.

For MobiKwik, mobile recharge is just the entry point to assess interest from users, Taku added. “This is the first service we are launching. We will eventually add other essential services as well. Mobile recharge will offer us good data points and will help us understand different markets,” she added.

MobiKwik is also studying different regulatory frameworks in overseas markets and holding conversations with stakeholders, she added.

The announcement comes at a time when MobiKwik is inching closer to profitability, a feat unheard of for a mobile wallet app provider in India. The firm, which claims to have grown its revenue by 100% in the last two years, expects to be profitable by this year and go public by 2022. (Interestingly, MobiKwik was looking to raise a big round at $1 billion valuation two years ago — which never happened.)

In the last one year, the firm has expanded to offer financial services such as loans, insurances, and investment advice. MobiKwik competes with a handful of payment services in India including Paytm, PhonePe, and Google Pay that either support, or fully work on top of a government-backed payment infrastructure called UPI. In April, UPI apps were used to carry out 782 million transactions, according to official figures.

The big numbers have attracted major investors, too. With $285.6 million in funding, India emerged as Asia’s top fintech market in the quarter that ended in March this year.

Millions of Venmo transactions scraped in warning over privacy settings

A computer science student has scraped seven million Venmo transactions to prove that users’ public activity can still be easily obtained, a year after a privacy researcher downloaded hundreds of millions of Venmo transactions in a similar feat.

Dan Salmon said he scraped the transactions during a cumulative six months to raise awareness and warn users to set their Venmo payments to private.

The peer-to-peer mobile payments service faced criticism last year after Hang Do Thi Duc, a former Mozilla fellow, downloaded 207 million transactions. The scraping effort was possible because Venmo payments between users are public by default. The scrapable data inspired several new projects — including a bot that tweeted out every time someone bought drugs.

A year on, Salmon showed little has changed and that it’s still easy to download millions of transactions through the company’s developer API without obtaining user permission or needing the app.

Using that data, anyone can look at an entire user’s public transaction history, who they shared money with, when, and in some cases for what reason — including illicit goods and substances.

“There’s truly no reason to have this API open to unauthenticated requests,” he told TechCrunch. “The API only exists to provide like a scrolling feed of public transactions for the home page of the app, but if that’s your goal then you should require a token with each request to verify that the user is logged in.”

He published the scraped data on his GitHub page.

Venmo has done little to curb the privacy issue for its 40 million users since the scraping effort blew up a year ago. Venmo reacted by changing its privacy guide and, and later updated its app to remove a warning when users went to change their default privacy settings from public to private.

How to change your Venmo privacy settings.

Instead, Venmo has focused its effort on making the data more difficult to scrape rather than focusing on the underlying privacy issues.

When Dan Gorelick first sounded the alarm on Venmo’s public data in 2016, few limits on the API meant anyone could scrape data in bulk and at speed. Other researchers like Johnny Xmas have since said that Venmo restricted its API to limit what historical data can be collected. But Venmo’s most recent limits still allowed Salmon to spit out 40 transactions per minute. That amounts to about 57,600 scraped transactions each day, he said.

Last year, PayPal — which owns Venmo — settled with the Federal Trade Commission over privacy and security violations. The company was criticized for misleading users over its privacy settings. The FTC said users weren’t properly informed that some transactions would be shared publicly, and that Venmo misrepresented the app’s security by saying it was “bank-grade,” which the FTC disputed.

Juliet Niczewicz, a spokesperson for PayPal, did not return a request for comment.

Amazon Spark, the retailer’s two-year-old Instagram competitor, has shut down

Amazon’s two-year-old Instagram competitor, Amazon Spark, is no more.

Hoping to capitalize on the social shopping trend and tap into the power of online influencers, Amazon in 2017 launched its own take on Instagram with a shoppable feed of stories and photos aimed at Prime members. The experiment known as Amazon Spark has now come to an end. However, the learnings from Spark and Amazon’s discovery tool Interesting Finds are being blended into a new social-inspired product, #FindItOnAmazon.

Amazon Spark had been a fairly bland service, if truth be told. Unlike on Instagram, where people follow their friend, interests, brands like they like, and people they find engaging or inspiring, Spark was focused on the shopping and the sale. While it tried to mock the Instagram aesthetic at times with fashion inspiration images or highly posed travel photos, it lacked Instagram’s broader appeal. Your friends weren’t there and there weren’t any Instagram Stories, for example. Everything felt too transactional.

Amazon declined to comment on the apparent shutdown of Spark, but the service is gone from the website and app.

The URL amazon.com/spark, meanwhile, redirects to the new #FoundItOnAmazon site — a site which also greatly resembles another Amazon product discovery tool, Interesting Finds.

Interesting Finds has been around since 2016, offering consumers a way to browse an almost Pinterest-like board of products across a number of categories. It features curated “shops” focused on niche themes, like a “Daily Carry” shop for toteable items, a “Mid Century” shop filled with furniture and décor, a shop for “Star Wars” fans, one for someone who loves the color pink, and so on. Interesting Finds later added a layer of personalization with the introduction of a My Mix shop filled with recommendations tailored to your interactions and likes.

The Interesting Finds site had a modern, clean look-and-feel that made it a more pleasurable way to browse Amazon’s products. Products photos appeared on white backgrounds while the clutter of a traditional product detail page was removed.

We understand from people familiar with the products that Interesting Finds is not shutting down as Spark has. But the new #FoundItOnAmazon site will take inspiration from what worked with Interesting Finds and Spark to turn it into a new shopping discovery tool.

Interesting Finds covers a wide range of categories, but #FoundItOnAmazon will focus more directly on fashion and home décor. Similar to Interesting Finds, you can heart to favorites items and revisit them later.

The #FoundItOnAmazon site is very new and isn’t currently appearing for all Amazon customers at this time. If you have it, the amazon.com/spark URL will take you there.

Though Amazon won’t talk about why its Instagram experiment is ending, it’s not too hard to make some guesses. Beyond its lack of originality and transactional nature, Instagram itself has grown into a far more formidable competitor since Spark first launched.

Last fall, Instagram fully embraced its shoppable nature with the introduction of shopping features across its app that let people more easily discover products from Instagram photos. It also added a new shopping channel and in March, Instagram launched its own in-app checkout option to turn product inspiration into actual conversions.

It was certainly a big move into Amazon territory. And while that led to headlines about Instagram as the future of shopping, it’s not going to upset Amazon’s overall dominance any time soon.

That said, Instagram’s changes may have prompted Amazon to give up trying to build its own Instagram clone, so it could instead focus on building out better and more differentiated tools for product discovery, like the new site.