Business Breakdowns
Episode 93 WeChat: China’s Operating System
Business Breakdowns

Episode 93: WeChat: China’s Operating System

Business Breakdowns

Episode 93

WeChat: China’s Operating System

Connie Chan is a General Partner at Andreessen Horowitz. We discuss how WeChat was able to grow at an explosive pace, how other apps are built on top of its ecosystem, and what can be learned from its legendary founder.

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[00:02:40] - [First question] - Overview of the super-app model

[00:04:43] - How apps and software from the Western world differ from WeChat

[00:06:19] - WeChat’s history in China and why it dominates differently than any US apps

[00:08:27] - Seeing WeChat as an OS within and app

[00:09:19] - How service unification in WeChat affects privacy, identity, and marketing

[00:13:16] - High-level analysis of their business model and reach

[00:16:53] - What Westerners would find surprising about using WeChat

[00:18:04] - History and functionality of WeChat Pay

[00:23:14] - The importance of their integrated Mini Programs 

[00:25:56] - Factors impacting their margin structure

[00:28:51] - Holistic design philosophies for maintaining user engagement and trust

[00:30:44] - WeChat’s saturation point and how future growth might look

[00:32:02] - How they leveraged mobile-only coding, self-disruption, and internal competition

[00:37:21] - Initial app build simplicity for steady growth

[00:38:36] - How her understanding of WeChat influences her investment decisions

[00:41:47] - Western companies that have super-app potential

[00:43:52] - Exporting the philosophy of treating your app users like friends to Western developers

[00:44:25] - The relationship between WeChat and the suppliers on their multi-app platform

[00:47:14] - Uncertainty caused by software regulations in China

[00:47:53] - Attributes of her typical investments

[00:49:42] - Lessons for operators and investors when studying WeChat’s story

WeChat: China’s Operating System

Introduction

Patrick
Today, we're breaking down one of the most important apps in the world, WeChat. WeChat is the default operating system for life and business in China. Founded inside of Tencent in 2011, it is the original super-app, and its 1.3 billion monthly active users can order food, message friends, play games, pay bills, shop and more on the service.

To break down WeChat, I'm joined by Connie Chan. Connie is a general partner at Andreessen Horowitz and is well known across Silicon Valley for her deep knowledge of the Chinese consumer technology landscape. We discussed WeChat's legendary founder, how trust is integral to the app’s success and why we haven't seen super-apps proliferate in the West. Please enjoy this breakdown of WeChat.

How WeChat Works and Why It's Different from Western Apps

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