Covid-19 More Than Doubled WeChat's Physical Goods GMV in First Eight Months
Xu Wei
DATE:  Sep 11 2020
/ SOURCE:  Yicai
Covid-19 More Than Doubled WeChat's Physical Goods GMV in First Eight Months Covid-19 More Than Doubled WeChat's Physical Goods GMV in First Eight Months

(Yicai Global) Sept. 11 -- The gross merchandise volume of physical goods in Tencent Holdings' WeChat mini-program grew 115 percent in the first eight months, the firm announced yesterday. This rise in GMV closely coincides with the outbreak and spread of Covid-19 in China and the world, which has further accelerated the shift already underway to online buying of products and services and away from in-person transaction

WeChat's app, which also has short-messaging and payment functions, may be used without downloading and installation. Firms and individuals supply products and services, including games and e-commerce, on the mini-program, which sellers favor as a marketing channel since its costs of wooing users and promotion are lower than elsewhere.

WeChat's number of daily active users topped 400 million this year, Tencent said at its Global Digital Ecosystem Summit, adding the ranks of its operators swelled to 5.36 million, and it has over 40,000 active third-party service providers. The GMV of brands’ self-operated mini-programs jumped 210 percent from a year earlier. Hotspots are household and personal care products, luxury goods, e-shopping malls and department stores, with the first up 1,710 percent.

The report offered no more detailed data on GMV of physical products. GMV charts a total cash value for goods sold in online retailing in a defined marketplace over a given time span. Site revenue comes from fees and thus differs from the cash value of items sold.

WeChat is going all out to build an ecosystem that links WeChat payment, WeChat for enterprises, WeChat search and WeChat AI. This has enticed many branded retail companies to establish e-malls and use WeChat for enterprises and WeChat accounts to access new customers and manage private domain traffic offline.

Tencent wants to be a partner helping vendors sustain growth rather than just a digital aid, Senior Vice President Lin Jinghua said.

Many retailers use WeChat as their main transaction platform, Lin added. Tencent will bring its technological edges and user insights to bear to help its merchants enhance their digital products and their array, as well as their operating setup and corporate organization.

Editor: Ben Armour

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Keywords:   Wechat,GMV,Tencent,Wechat payment