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On April 12, WeChat advertising officially announced that the friends circle e-commerce promotion for advertisers to open in full. Friends circle e-commerce flow valve opened, with the help of "social advertising and small programs", Tencent can reconstruct a new e-commerce retail pattern?

Small program: the best fertile soil for e-commerce growth

When the traffic of traditional e-commerce platform is facing depletion, the promotion is burning more and more money, relying on the platform to survive the enterprise to obtain high cost of traffic, the final traffic and data are not entirely their own, profit margins are getting smaller and smaller. All kinds of problems let the anxiety of electricity merchants revealed, more and more enterprises began to build their own e-commerce retail channels, the birth of small procedures let them see a new way out.

On April 12th, at the 2018 Tencent Social Advertising High-end Closed-door Exchange on "Straight E-commerce - Social Traffic-Driven Business Future", Cao Qi, head of Tencent's social advertising direct e-commerce industry, gave an example: An e-commerce brand, which has hundreds of millions of GMVs a year on e-commerce platforms, has only a few million GMMs in WeChat Mall, but ultimately eliminates costs and makes more money on WeChat. As Ma Huateng likens, "For example, to build a house, we are not renting, but ask you to build a house, build a house is yours, your customers, fans are yours, do not need to pay monthly rent, do not need to increase prices every year。”

Cao Qi, head of Tencent's social advertising direct e-commerce industry

For e-commerce cake, Tencent has long been involved, in recent years through investment in JD.com, Mushroom Street and other allies, Tencent has formed its own layout in the field of e-commerce. And with the small program online and the ability to improve, Tencent's "e-commerce dream" also found a more realistic point:E-commerce enterprises empowered by infrastructure such as small programs have hatched a new e-commerce retail model that is different from platform e-commerce: de-centric e-commerce.More than one billion WeChat monthly live users is Tencent's erration to de-centralize e-commerce.

Wei Xiaoxiang, general manager of products of micro-alliance's new retail division, said at the closed-door exchange that e-commerce officially ushered in an incremental market with mobile social as its axis, weChat's active users far exceeded the active user volume of e-commerce platform, WeChat platform generated incremental market includes small town youth, high-end consumers, teenagers, middle-aged and elderly-based consumer groups, which has achieved success cases such as mushroom street with the help of small programs to achieve counter-attack.

Wei Xiaoxiang, General Manager of Products, New Retail Division, Wei Wei

According to Tencent's data, at present, small programs have 170 million daily users, 580,000 small programs online, attracted more than 1 million developers, 2,300 third-party development platforms to join, has become an important tool to connect all walks of life. Lin Xing, senior product manager of WeChat's Open Platform Foundation Department, also revealed thatWeChat will also achieve more transaction-enabling capabilities this year, including e-commerce tools to help cash in traffic and services.As Tencent continues to bet on e-commerce, small programs may be fertile ground for countless e-commerce companies.

Photo credit: WeChat

Liu Wei, co-founder of Ebony Power, said that the rise of social e-commerce, reconstruction of people, goods, farms, its fission-style growth rate is remarkable. Traditional e-commerce is based on shelves, goods as the core, is already generated after the purchase demand to find the path of goods,WeChat has social relations, there are a large number of high-quality content, people and content as the core to trigger consumer demandBased on WeChat's social relationship chain, merchants' marketing scenarios are richer, more effective, and simpler. He said that WeChat has 1 billion active users around the world, online social is becoming the standard for Internet users, e-commerce companies should use social traffic to really do a good job of e-commerce.

Liu Wei, co-founder of Yibang Power

 "Social Advertising and Small Programs" want to usher in the new retail era of e-commerce

A few years ago, talking about WeChat e-commerce, people first thought of micro-commerce and friends in the circle of the proliferation of fake goods, so WeChat advertising for e-commerce fall seems more cautious, e-commerce small program ads than other types of small program ads late for nearly a month, but now, "friends circle sale" era really came, with Tencent social advertising WeChat advertising team officially announced that friends circle e-commerce promotion for advertisers full open,Tencent's social advertising will bring WeChat's 1 billion-plus-month live flow to e-commerce, and small programs will serve as a reservoir for that flow.

Photo credit: WeChat

Tencent social advertising defines direct e-commerce as:A new e-commerce model with online ordering and cash on delivery as a marketing method to be undertaken through public attention, small programs, or H5.Therefore, when e-commerce enterprises in the circle of friends to run ads, advertising can jump directly to the small program goods purchase landing page, reducing the previous complex jump process caused by the loss of users, users can go shopping with the purchase, enhance the purchase conversion.

For example, e-commerce "Little Whale Hi" with the help of friends circle advertising and small programs for the small whale happy mall drain, and ultimately bring accurate buyers and high-quality customers. It is worth noting thatThe current WeChat regulations must have R-label (trademark protection), in line with the access category of the purpose of the brand to have delivery rightsWith WeChat's strong involvement, the e-commerce retailing in the circle of friends is bound to be more standardized.

"Small programs, as a landing page for ads, have a strong brand sense and are easy to spread, and are currently in an early period of traffic dividends, allowing companies to achieve higher conversions at low cost of delivery."Micro-League co-founder and senior vice president Yu Fengxuan believes that small programs have become enterprises and merchants to display, trade, provide services window, and "social advertising and small programs" this combination will release more energy, such as the local promotion function of friends circle advertising, based on LBS accurate positioning geographical location, combined with offline scenes to push small program ads to users, local merchants will be able to use "friends circle ads and small programs" to establish contact with their service areas. Realize the mutual transformation of online and offline traffic, improve their own marketing and promotion effect. Small programs can also use friends circle advertising, according to their own marketing needs, to achieve a precise jump target landing page, whether it is voucher distribution, lead collection or purchase conversion, can be easily achieved.

Yu Fengxuan, co-founder and senior vice president of Micro Alliance

Cao Qi, head of Tencent's social advertising direct e-commerce industry, said that the cost of traditional APP customers is about 120 to 200 yuan, and with the help of WeChat advertising and small program combination, a joint launch with the Forbidden City calendar, the cost of new customers is only 50 yuan.

Third-party services will accelerate the growth of e-commerce in small programs

Over the past few years, while WeChat users have grown rapidly, Tencent has gradually built up a WeChat ecosystem and built a rich matrix of capabilities, such as public numbers, social advertising, small programs, etc., to connect users to various services online and offline.

NowWith the improvement of the new entrance of traffic brought about by "small programs and advertisements", Tencent's "small programs and big ecology" is gradually realizing its commercial realization path, not only planned a WeChat B2B service road, but also allowed more enterprises through weChat ecosystem traffic to create brand and commercial value. All along, Tencent has a very open mind, to small programs and social advertising, for example, enterprises do small program e-commerce, social advertising, Tencent can not go to the service, then need third-party service providers, through the support of third-party service providers.

Micro-Alliance has planned for more than 20,000 enterprises to run social advertising, Yu Fengxuan said, we found that in the last two years, a large proportion of enterprises in the demand for social advertising in the circle of friends and WeChat public number ads, and recently many enterprises have come to consult "small programs and WeChat ads" how to run. To this end, micro-alliance launched the "friends circle advertising and small program" integrated solutions, relying on micro-alliance's mobile marketing experience, for enterprises to provide "micro-mall" small program e-commerce solutions, to help them quickly create their own small program mall, the promotion of goods to the target audience of friends, to obtain better communication and purchase conversion.

The development of WeChat's small program has also led to the generation and development of third-party service providers, and WeChat and third-party service providers are interdependent and mutually promote each other.WeChat small program ecology with the help of these third-party service providers to promote the expansion of the market, open the border layout, but also accelerate the growth of small program e-commerce.

In short, e-commerce new retail upgrades are like the evolution of new species, whether small programs or social advertising, e-commerce to the evolution of new species of essential tools and capabilities.

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