WeChat’s Gift-Giving Feature Boosts E-Commerce Sales Ahead of Lunar New Year
As the Lunar New Year holiday approaches, WeChat, China’s super app, is solidifying its position as a major e-commerce player. A new gift-giving feature has been instrumental in driving sales for online retailers on the platform, according to local media reports and industry analysts.
A Game-Changer for Online Retailers
Beijing-based East Buy, a live-streaming e-commerce firm, has seen sales at its online store on WeChat soar past the 1 million yuan (US$136,586) mark, with over 80% of transactions made through the app’s gift-giving feature. This feature, launched by WeChat in December, allows users to search for products by keywords and send gifts to friends, with the recipient required to accept the gift and submit a postal address within 24 hours.
How the Feature Works
The gift-giving feature is designed to leverage WeChat’s vast social network, with prices capped at 10,000 yuan and excluding certain products like jewelry and tutoring classes. Users can only send a single gift to one WeChat friend per order, making it a unique and personalized experience.
A Boon for WeChat and Its Merchants
The success of East Buy’s sales on WeChat bodes well for the Tencent-owned super app, which boasts nearly 1.4 billion monthly active users. As shopping heats up around the Lunar New Year holiday, the gift-gifting feature is expected to attract more quality vendors to join the platform and users to shop on it, according to a research note by China Merchants Securities.
Rivals Take Note
Following WeChat’s lead, major e-commerce platform operators Alibaba Group Holding and JD.com have rolled out similar initiatives ahead of the Lunar New Year break. This move is seen as a bid to stay competitive in the e-commerce space, where WeChat is rapidly gaining ground.
Tencent’s E-Commerce Ambitions
Social media and video-gaming giant Tencent has been doubling down on WeChat’s e-commerce business since last year. The company renamed its e-commerce operation to WeChat Mini Shop in August, providing increased traffic and transaction support to online retailers. Tencent’s latest quarterly earnings report highlighted the update’s goal of creating a standardized and trustworthy e-commerce platform.
A Bright Future Ahead
As WeChat continues to expand its e-commerce capabilities, analysts at Citic Securities predict the platform’s gross merchandise value to reach 1 trillion yuan by 2027. With its vast user base and innovative features, WeChat is poised to become a major player in China’s e-commerce landscape.
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