In a striking turn of events, Tencent‘s WeChat app seems to have made a lot of progress in e-commerce, leveraging its short video and live streaming features. In 2023, these features propelled the app to nearly triple its gross merchandise volume (GMV), a clear indication of the growing trend of integrating social media and online shopping.
This was possible thanks to WeChat’s video section, known as Channels
The heart of this growth lies in WeChat’s video function, known as Channels. In 2023 alone, Channels saw a staggering 244% increase in orders compared to the previous year. This success story was shared at the annual Open Class Pro developer conference in Guangzhou, though the exact GMV figures were kept under wraps. This surge in e-commerce activity underscores the strategic foresight of Tencent’s CEO, Pony Ma Huateng, who, back in 2022, had identified short video as the future of the company.
Despite the impressive growth, WeChat’s e-commerce turnover still trails behind giants like Kuaishou and Douyin. However, Tencent isn’t deterred. It’s betting big on capturing a significant share of the market, leveraging WeChat’s vast user base of 1.34 billion. This strategy seems to be paying off, as WeChat Channels has become a major force not just in e-commerce, but also in advertising for Tencent.
The company is not resting on its laurels. Plans are underway to expand the live-streaming e-commerce team, diversify product categories, and enhance the WeChat Pay infrastructure. These moves are poised to solidify Tencent’s position in the online retail space. Interestingly, as of mid-2022, Channels had more active users than Douyin and Kuaishou, a testament to its growing popularity.
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(Via)
