WeChat’s annual Open Class event on January 9 adhered to the closed-door format introduced last year, welcoming industry insiders for an exclusive session. No media invitations or live streaming options were provided, but photos and insights shared by attendees shed light on key announcements. This year’s focus centered on the interplay between stores, mini programs, and service accounts, alongside updates to WeChat’s e-commerce infrastructure. The much-anticipated gifting feature also garnered significant attention, with plans for a formal launch during the Lunar New Year.
During the event, WeChat announced notable 2024 performance metrics for its stores, highlighting a 92% increase in gross merchandise value (GMV) and a 125% rise in order volume. Active product listings surged by 283%, while gross profit margins grew by 50%. Monthly active merchants also expanded by 70%.
Demographic data reveals that 97.7% of WeChat video account users are aged 25 or older, with women comprising 63% of the audience. Users from tier-two and tier-three cities make up the largest segment at 40%, while tier-one cities account for 32%. The remaining 28% includes lower-tier cities and overseas users.
A recurring theme of the event was the integration of WeChat stores with other platform components, such as mini programs, service accounts, community features, and search. The objective is to construct a robust e-commerce ecosystem entirely within WeChat, reducing reliance on video accounts and live streaming.
WeChat unveiled a “three-in-one” ecosystem designed to streamline merchant operations: WeChat stores to manage transactions, orders, and after-sales services; mini programs to offer functional services, loyalty tools, and marketing solutions akin to brand websites; and service accounts to drive customer retention and repeat purchases. This ecosystem aims to foster more seamless user experiences—customers can explore a brand’s mini program for product details and promotions, complete transactions in the store, and receive follow-ups through the service account. WeChat highlighted this synergy as a driver of new traffic and high repeat purchases, potentially enhancing merchants’ growth.
Acknowledging merchant concerns about overlapping systems, WeChat also announced simplified interconnectivity between mini programs and stores. Developers no longer need to create separate stores within their mini programs. Instead, they can deploy stores directly through the WeChat stores module, enabling unified management of listings, prices, and updates across the platform.
A pilot gifting feature launched on December 19, 2024, was described by analysts as potentially as impactful as WeChat’s iconic red envelope feature. The tool allows users to send gifts via social connections, reducing marketing costs for merchants while amplifying product visibility. Two upcoming innovations promise to elevate gifting further: customization tools for merchants to design branded pages, stickers, and package cards; and offline-to-online channels that let customers scan QR codes at physical stores to send gifts via WeChat. These features, slated to launch before the Lunar New Year, have already unsettled competitors like Taobao and Douyin, which have rushed to introduce similar tools.
WeChat’s affiliate marketing program, introduced in December 2024, empowers promoters to share product links within the app without external redirects. Merchants can collaborate with third-party affiliate agencies to promote products via live streams or product cards. WeChat supports these efforts by waiving commission fees for affiliate marketers and charging a flat 1% platform service fee, with 0.4% returned as traffic coupons. Future updates will include tools for short video attribution, live stream integration, and enhanced coupon options, bolstering sales and engagement.
In addition, WeChat is streamlining merchant onboarding for 2025. The platform intends to expand access to 391 product subcategories and simplify rules for 26 main categories, including apparel, bags, and agricultural products. Guarantee deposits will be reduced by up to 50% for categories like jewelry and women’s fashion, with a zero-deposit option introduced for select categories.
A Tencent insider expressed confidence in WeChat e-commerce’s growth potential, noting its relative underdevelopment compared to competitors. Tencent president Martin Lau echoed this sentiment during the Q2 2024 earnings call, emphasizing substantial room for expansion despite industry headwinds.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Wang Yuchan for 36Kr.