1) Let's talk about my framing for e-commerce product strategy.
It answers why in Chinese tech there is a fanatic fixation on internet traffic. Why every consumer app become a super-app.
Ubiquitous in Chinese tech but also prevalent in Facebook, Shopify and Google' strategy.
It answers why in Chinese tech there is a fanatic fixation on internet traffic. Why every consumer app become a super-app.
Ubiquitous in Chinese tech but also prevalent in Facebook, Shopify and Google' strategy.
2) Every player is always working on owning the awareness-to-fulfilment funnel (or customer journey). This is a descriptive product strategy that builds on a foundational ethos of "owning the user".
3) Relative to western consumer tech companies, who tend to focus on “serving a function” as their core mission, Chinese companies tend to focus on “owning the user” as their core mission (though the initial wedge into the consumer is always through a function.
4) Owning the end-user and their attention is what led to the rise of the super apps and. Put another way; they want to own the user's attention and time through providing a comprehensive service rather than be the platform that caters for a specific need.
5) Chinese tech companies struggle with internationalisation and so can't build a best-of-breed for different geographies (unlike western tech firm). They have to go deeper.
Copying being prevalent in Chinese tech, owning the funnel becomes the closest thing to a moat
Copying being prevalent in Chinese tech, owning the funnel becomes the closest thing to a moat
6) Inorganic traffic is also very pricey in China, since Tencent (the biggest DAU app) doesn't rely on advertising to monetise and have a relatively limited ad inventory.
Every player then has to focus on cultivating their own organic traffic sources and own their own funnels.
Every player then has to focus on cultivating their own organic traffic sources and own their own funnels.
7) As such, the funnel/user journey flow reflects the core capabilities they need to capture at every stage. It has become a defacto product roadmap and monetisation strategy.
This framework also extends to Chinese B2B companies, who help their customers own the entire stack.
This framework also extends to Chinese B2B companies, who help their customers own the entire stack.
8) Chinese consumer tech giants are pursuing owning the funnel through a combination of buy, build or partnerships (investments). Each starts from their domain of expertise (Tencent's is traffic, Alibaba's is conversion, and Bytedance is also traffic), before moving up or down 
9) Generally, it is easier to move down the funnel than up since traffic players already control the users’ attention. Users move from low intent browsing to high intent buying rather than the other way round.
10) This is also why Alibaba's acquisitions tend to struggle. Aside from the difficulties of integration, Alibaba is more often than not trying to obtain traffic from its acquisitions, whereas Tencent is giving traffic to their partners. The differing dynamic is stark.
11) This pattern is playing out across the new generation of short-video platforms. As the war for the user’s attention and wallet rages, the funnel will be a good predictor of the capabilities each player will be looking to build.
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