On September 30, 2018, iiMedia Research, global leading new economic data mining and analysis organization, authoritatively released 2018Q1 Chinese Social E-Commerce Market Research Report. As the data of iiMedia Research showed, the scale of social retail users in China will reach 310 million in 2018. The development social tools like Wechat provide powerful boost to the development of Chinese social e-commerce industry. And the birth of mini program can promote more social e-commerce consumption scenarios. The tendency of acceleration for the development of the social e-commerce industry is obvious.
Here details are from the report:
Chinese Social E-Commerce Macro Development Background – Bonus of WeChat
As the data of iiMedia Research showed, the scale of Wechat Mini Program E-Commerce users is expected to reach 132 million in 2018. At the same time, Tencent’s financial report shows that the MAU of WeChat has exceeded 1 billion.
iiMedia Research consulting analyst believes that, the bonus of WeChat and the birth of mini program will provide a powerful boost to the development of Chinese social e-commerce industry. Social tools, especially WeChat, have formed a strong social user base. WeChat connects people with content through social and official accounts. Also, the launch of WeChat mini program enables products to be connected. With the help of WeChat mini program, social e-commerce platforms can effectively reach its target users, and trigger the consumer demands.
The Scale of Chinese Social Retail Users will Exceed 300 Million in 2018
As the data of iiMedia Research showed, in 2017, the scale of social retail users in China was 223 million, and it is expected to increase to 310 million in 2018. iiMedia Research consulting analyst believes that, social e-commerce platforms achieve fissile growth mainly by the contribution of interpersonal relationships among users and acquaintance networks, which can effectively achieve communication and reduce the cost of users acquisition. In the future, the scale of social retail users will maintain in a high growth rate.
Social E-Commerce Network Heat Index Rose Sharply in 2018Q1
As the iiMedia Research’s big data public opinion monitoring system showed, the heat index of the keyword ‘social e-commerce’ has been heating up from the first quarter of 2018. In April, sevetral social e-commerce platforms financing had led to a rise in online public opinion.
Female are More Likely to Use Social E-Commerce Platforms
As the data of iiMedia Research showed, Chinese social e-commerce users are mainly made up of female, which accounts for 63.1%.
iiMedia Research consulting analyst believes that, female users are more willing to shop online than men, and social e-commerce platforms are also popular with women’s products such as beauty makeup, which is more likely to stimulate female consumers’ desire to shop.
Sixty Percent of Social E-Commerce Users are Young People
As the data of iiMedia Research showed，The majority of Chinese social e-commerce users are young people. Sixty percent of users are under 30 years old, and 31.8% of them are 24 years and below.
iiMedia Research consulting analyst believes that, the spread of social e-commerce relies on social platforms. Therefore, young users are more likely to accept innovative shopping models of social e-commerce, and at the same time, they can be more effective for wider dissemination.
Social E-Commerce Users Tend to repurchase on the Same Platform
As the data of iiMedia Research showed，64.2% of Chinese social e-commerce users surveyed said they would re-purchase on the same platform.
iiMedia Research consulting analyst believes that, at present, the spread of social e-commerce platforms mainly relies on WeChat and other social platforms, which have a wide range of communication channels and are easy to trigger users’ consumption demands. The birth of mini programs also provides more convenient consumption entrance for users. Therefore, the users who re-purchase on the platform account for a relatively high proportion.
Pinduoduo – Platform Case Analysis
Strive to build cheap goods by means of grouping and bargaining, attract a large number of users by low prices, and achieve rapid growth in platform traffic and transaction volume.
However, the nature of the operation model of Pinduoduo.com is closer to the introduction of e-commerce platform based on cheap goods, and the social property is relatively weak. In addition, it is difficult to guarantee a large number of discounts for every item in this operation model, and the quality assurance of the products on the platform is difficult. Users are likely to feel bored and the persistence of the model is in doubt.
Vipshop—Platform Case Analysis
Based on the resources advantages such as supply chain and brand of Vipshop’s integrated e-commerce platform, it accumulates a strong user base and reputation, which facilitates the transformation of Vipshop.
However, the problem of the transformation of integrated e-commerce to social e-commerce is that the platform is huge. To realize the transformation, it is necessary to explore effective social e-commerce operation methods. At present, Vipshop will use the cooperation resources of Tencent and brand merchants to conduct social marketing in WeChat ecosystem, which is beneficial to Vipshop to explore the social e-commerce market based on its own advantages.
The Tendency of Chinese Social E-Commerce Market
The development of social platforms such as WeChat provides support for social e-commerce promotion, and the WeChat mini program has further promoted the development of the industry. The social e-commerce will usher in a rapid development period. As the industry develops faster, it is necessary to introduce relevant regulatory policies for protecting the health and order of the market
On the other hand, the social communication model can explore a variety of development models for the social e-commerce platform, the development model will become the focus of competition between platforms; and social fission communication can make the platform reach more consumers, and the importance of word-of-mouth is constantly improving. The platform needs to strengthen the quality control of goods.
With the Help of Wechat, the future of Social E-Commerce Industry is Optismistic
iiMedia Research consulting analyst believes that, the distance between people will be further and the needs of social communication will become obvious. The development of social e-commerce based on social communication will be promising. And the development of mobile technology has spawned a large number of mobile social platforms, in which the WeChat traffic dividend is obvious, providing a large number of potential users for social e-commerce. At the same time, the WeChat mini program was born to provide a new competitive track for social e-commerce, and the mini program can promote more social e-commerce consumption scenarios. The tendency of acceleration for the development of the social e-commerce industry is obvious.