QR Code - A Missing Piece of Brazilian Internet

QR Code: A Missing Piece in Brazilian Internet

People from a tier-7 village in Shanxi, China are buying their daily necessities by mobile payment via QR Code in groceries.

Power of QR

Power of QR

QR (“Quick Response” ) Code, invented by DW from Japan in 1994. QR Code now is the most popular mobile access to information and services Asia wide: retail, ad, ticketing, coupon, payment… Chinese QR Code utility market started in 2012 with 160MM times of scans per month and exceeded R$50B in size in 2015, with +10,000 local companies directly involved.

QR Code Applications

Tracking

After “Mad Cow” outbreaks, EU requires traceability on all imported food.

AIAG (American Automotive Industry Action Group) uses DPM to trace the quality issue of all key parts of a car.

And in services QR Code can be used also to collect feedbacks and rate service quality, for example online-to-offline medical services.

Identification

Invoice Anti-fraud

Transaction identification – movie ticket, air ticket, entrance ticket, conference admission, to enable fast check-in.

Information Storage & Exchange

Tourist & transportation info based on geolocation

QR Code embedded business card or gift tag

Extensive reading apart from static content

Promotion

To fill the low-peak hours, E-Mart placed 36 devices that project QR-Code shadows during lunch time that grant special offers to clients. 12000 group deals and +25% sales increase in a single month.

Value-Added Services

QR Code stamped at the entrance of the Turquoise Cottage Bar, which grants you different benefits according to different hours: 20:00-22:00 Restaurant Discount 22:00-06:00 Taxi Hailing 06:00-16:00 Tips for Hangover 85% of customers shared on the social media

Online-to-Offline Social

Harry’s Bar in Singapore: Buy a bottle, scan the QR Code, record the message and send to someone that you want to meet in person

To shorten the distance with No.1 offline convenient store chain with much large offline presence, HomePlus created virtual stores at subway stations to grab consumers’ fragmented time slots.

Online-to-Offline Retail

Fast dish order Discount/coupon attached Rating on customer service

Online-to-Offline Services/Restaurant

Payment

Summary: QR Code Application Scenarios

1. @Attention & Interest Phase: To create integrated impact, linking offline & online xp

2. @A&I to Search and A&I to Action Phase: To stimulate interaction and convert to real purchase (The Blue Note Grill printed their QR Code on TPs and achieved a 70% sales increase)

3. @Search to Action Phase: To improve transaction efficiency 4. @Share: To enable immediate sharing

Why So Popular in China

A Game of Giants

QR Code is a game of giants and we need a high-frequent utility and an attractive feature to start with to educate the market.

SEP 2012 in V4.3 Tencent launched QR Code scan feature (200MM users by 2012), for basic friend -add purpose.

FEB 2013 Wechat added its long-expected feature of creating fast group chat via QR Scan

QR Code Booms Together with O2O

Being an excellent tool to link offline to online, QR Code evolution accompanied perfectly the O2O phenomenon in China

Search Interest of QR Code (red) and O2O (blue) in China, 2011-2016

Cultural Factor

淡水河谷 http://www.valedoriodoce.com/

QR Code vs.NFC

Comparison

ITEM QR CODE NFC

Who lead Internet Players Telecom, Financial, Terminal Manufacturers (Smartphone, POS, Smartcard)

Transaction Mode Passive & Active QR Code Scan

Near-Field Approximity

Pro Simple to Use & Easy to Spread

Convenient, Secure, All Players on Industry Chain Benefited

Con Payment Process Complex (except Wallet), Less Secure, Less Win-Win

Long Industry Chain to Coordinate

Scenario Small, Medium & Large –Amount Payment

Small –Amount Payment

Example Alipay, Wechat Pay ApplePay

Current Champion

“2015 China Digital Banking Report” reveals that when paying amount of less than RMB100, 28% of consumers choose using QR code, 4 times more than NFC. So far, DoCoMo, ApplePay and GoogleWallet all failed promoting NFC to a global scale.

QR Code Design Principles

Understand the Reason

Based on Queaar’s survey, 87% users expect receive promotion info, while in reality only 25% advertisers fulfilled the expectation.

First Things First

Before your users start scanning, be sure to provide all necessary tips regarding the promotions: 1. with which tool to scan 2. should expect what benefits 3. mention all security

guarantees 4. Post-event continuity

Curiosity is a Powerful Weapon

Fit In

QR Code should fit in the perfect environment and timing, which enable available idle time for possible scanning.

Rich Information Even Offline

QR Code can hold up to 1850 characters without Internet connection, use it wisely.

Be Creative

Brazil QR Code Scenario

We Don’t Know What Tool to Use

4,418,432 4,140,918 3,971,727

1,661,503 1,302,072

Scan - QR Code and Barcode Reader (Scan)

QR Droid QR Droid Code Scanner (Droid)

QR Reader for iPhone QR Code Reader (Tw Mobile)

Download

Accumulated QR-scan App Downloads Since 2011

Source: AppAnnie Set 2016

Old Tryout & Limited Usage

Creative Application

QR Code To

Follow Brazil

Election

Banco do Brasil Use QR Code to Validate

Transactions on Their Site

Suggestions

Suggestions

• As no giants in QR Code game, coordinated cross-sectorial co-op seems the only solution for massive end user education

• When promoting QR Code, subsidy is necessary to incentivize the usage;

• QR Code is an excellent tool for offline marketing and its performance assessment, use it wisely.