The final reports are in for Chinese e-commerce, and the results are something many companies should be proud of. The results include the earnings from the e-commerce giants in China like Tmall, Jingdong Mall (JD.com) and Amazon China.
For 2014, the e-commerce market sold 2.8 trillion yuan, which is around US $450 billion.
This is an increase in volume by around 49%. This is an amazing feat, and shows just how important e-commerce sales are to those businesses in the Chinese market.
The leading e-commerce giant on the market was Tmall, which is owned and operated by Alibaba.
The company took in a total of 763 billion yuan, or US$124 billion.
So what made e-commerce so successful for 2014?
There are several reasons that are being attributed for the high growth of e-commerce. These reasons include:
- Rural areas getting Internet and now being able to shop via these platforms
- More transactions happening with overseas consumers
- Many professionals are giving WeChat the credit as it is allowing more businesses to connect to consumers
The WeChat Experience
In early 2014, WeChat gave businesses and brands the option of setting up their store within the WeChat platform. This allowed businesses to make themselves more available for consumers. It was an idea that many thought was great, but there were still some who guarded against this expansion. But, the results for 2014 profits show this did, indeed, work for businesses utilizing the e-commerce platforms. For brands who have yet to get on board with the WeChat experience, they are missing out.
The audience in which brands can reach via WeChat is astronomical, which is why the high recordings via e-commerce comes as no surprise to many who supported this idea from the beginning.
The question many new brands to the Chinese market ask is just how they can ensure their success with WeChat? There are several methods for using WeChat that can render results.
- Utilize the WeChat Shops
This option allows brands who have accounts and the brand is considered to be legitimate to set up a shop via the WeChat app. This will allow users to buy products from the brand, without ever having to leave the WeChat app. This is one aspect many companies feel was responsible for the high e-commerce numbers throughout 2014.
- Have a Content Stream
WeChat is a social media network that does allow for messages to be sent between members and the like. Thus, use this to your advantage. For businesses who have yet to set up their own storm, they can use the content stream as a way to showcase their new product or service being offered, or even to showcase sales taking place.
- Consider Affiliate Sales
WeChat has several affiliate sales channels, which allow a company to utilize affiliates to make a profit on products or services. With this option, a company will not get the full profit potential which would normally be seen since the affiliate does get a cut of the profit. However, it can be a credible method for getting the product or service out to the market.
The e-commerce results for 2014 are a huge increase from the last year. This shows that the idea presented by WeChat is one that has been greatly successful for brands who have increased their dominance on the online market. For future brands looking to implement this market, WeChat has proven to be the one method which will connect consumers with brands they are interested in learning more about, as well as expanding upon the consumer base for the company.