CNNIC: How WeChat cuts into the e-commerce flow – diagram

WeChat can enter the e-commerce flow from three levels: O2O, location base, and mobile application. Starting from the circle, WeChat shares user resources with e-commerce companies, allowing users to experience e-commerce related services through the O2O model and complete the information flow process. WeChat's LBS function can realize the "one-stop" service of e-commerce. Users can directly search for nearby businesses, or directly obtain their geographic location information after searching for businesses.

In March 2012, the number of WeChat users exceeded 300 million, and it is expected that the number of WeChat users will reach 400 million in 2013. As the entrance to the mobile Internet, the number of WeChat users has shown a fission-like growth rate, and is ready to quickly enter the trillion-level e-commerce market. Due to the entry of social marketing, the e-commerce operation structure is developing from four flows to five flows, namely "information flow, business flow, capital flow, logistics flow, and chain flow (new)", and WeChat is also integrating with the "five flows" of e-commerce in an all-round way.

WeChat’s e-commerce potential

WeChat's ability to quickly enter the e-commerce market with applications such as QR codes and shakes is closely related to its strong e-commerce potential. First, WeChat has a sufficiently large user base. These WeChat users have strong communication attributes, are coupled to various circles of acquaintances, and have a strong communication and interaction effect. Secondly, WeChat occupies the fragmented time in people's lives. Studies show that three-quarters of mobile searches will trigger subsequent activities, of which 24% are about purchasing goods. Thirdly, WeChat turns UV, mobile phone numbers, emails, etc. into "people with rich personalities", thereby achieving precision marketing. Finally, WeChat's LBS function can realize the "one-stop" service of e-commerce. Users can directly search for nearby businesses, or directly obtain their geographic location information after searching for businesses.

How WeChat integrates into e-commerce

With user scale, fragmentation, personalized data, LBS and other functional features, how should WeChat integrate with e-commerce? CNNIC analyst Chen Jingjing believes that WeChat can cut into the e-commerce flow from three levels: O2O, location base, and mobile application. First, starting from the circle, WeChat shares user resources with e-commerce companies, allowing users to experience e-commerce related services through the O2O model and complete the information flow process. Secondly, WeChat shapes users' e-commerce habits by guiding them to use software functions and services to form business flows. Thirdly, WeChat promotes users to purchase products and services through precision marketing and completes the flow of funds. Fourthly, WeChat provides a full range of after-sales service experience through customer relationship maintenance and completes logistics and other processes. Finally, users share their shopping experience with friends in the circle, recommend and share purchase experiences through chain flows such as "relationship chains", and complete cascading diffusion and dissemination.

However, opportunities and challenges coexist. Although WeChat has a high voice in e-commerce, some of its user experience needs to be improved and enhanced. For example, WeChat is a rich application, while mobile Internet users prefer fast and simple light application experience. Can WeChat cater to the personality and style of users? Too much information pushed can easily cause disgust. Can WeChat collect what users want and provide precise marketing services within the limited push information? It can be seen that WeChat, which is highly expected, still has a long way to go in the process of e-commerce.