$TENCENT(00700.HK)Is WeChat going to reshape e-commerce?$WEIMOB INC(02013.HK)$Alibaba(BABA.US)

[JianTou Overseas]

1. WeChat's small shop will launch the "Gift" feature for gray testing on December 17. Except for jewelry and education training categories, products priced at no more than 10,000 yuan will default to support the "Gift" feature, and the product detail page will display an entry for "Supports Gift." Users can click "Send to a Friend," which will bring up the "Confirm Gift" page, select a style and friend, and after completing the payment, the gift will be automatically sent. The recipient will see the gift information in the chat conversation and can fill in the delivery address to officially receive the gift. During the "Gift" process, users can only send one item to one friend at a time, and once sent, it cannot be transferred to other friends. Once the gift is sent, regardless of whether the friend accepts it, the sender cannot actively cancel the gift or order within 24 hours. Conversely, if the recipient does not accept it within 24 hours, the order will be automatically canceled and refunded, with the user experience similar to WeChat red envelopes.

2. The WeChat e-commerce ecosystem is shifting from infrastructure improvement to operations. Currently, WeChat is continuously improving its e-commerce infrastructure, integrating mini-programs, video accounts, live broadcasts, and public accounts on the front-end display pages. After optimizing the logistics/payment experience with features like return insurance and pay-after-use, the next phase is expected to focus on attracting merchants and user operations. If we look back at the early growth of video accounts, after integrating video accounts with Moments/group chats/public accounts, video accounts began operating performance activities, cultivating user mindset through large concerts. We believe that the intention behind the WeChat small shop's "Gift" feature is similar, with the difference being that large event operations are more asset-heavy and yield quicker results, while gifting is more about naturally extending user interactions, being asset-light and peaking during specific holidays. We are optimistic about WeChat's reliance on its mature social network to continuously cultivate users' shopping habits within the ecosystem, which has significant strategic importance for unlocking WeChat's e-commerce GMV space.

3. There is still considerable room for cooperation with Taobao/Tmall in the future, focusing on WeChat's ecological attraction. The interconnection between Taobao/Tmall and WeChat is still in its early stages. Data since October shows a good adoption rate of WeChat Pay on Taobao. This cooperation is beneficial for both parties; for WeChat, it enriches the overall e-commerce GMV and revenue, and it can bring some new users to Taobao. However, it is important to emphasize that the process of open cooperation is not achieved overnight, and the engineering and compliance efforts behind it may affect the pace of openness.