Jun 25, 2021
Tencent releases “Little Goose Fight” for China’s e-commerce market
Recently, Tencent has quietly launched a social e-commerce application called “Little Goose Fight”, trying to use the “online promotion + group purchase” model to win over the currently sinking market.
Judging from product experience, this is an operating model similar to that of “Pinduoduo + Xiaohongshu”.
The report from Quest Mobile indicates that the current number of users in the sinking market has reached 670 million, accounting for 54.3% of total users. The average consumption growth rate of this consumer group has become much higher than users of first- and second-tier cities.
As a result, Taobao, JD.com, Pinduoduo, etc. have adopted subsidies and groups to increase the customer acquisition rate in the sinking market.
Since Tencent entered the B round financing of Pinduoduo in 2016, Tencent has participated in every round of its financing. Up until Pinduoduo became listed, Tencent held 17% of the shares and was the second-largest shareholder. Pinduoduo’s quick development into a domestic leading e-commerce platform is mainly related to the social advantage of using Tencent WeChat.
At present, the biggest advantage that Little Goose holds onto is the social e-commerce system based on the WeChat ecology. WeChat has now derived a variety of traffic contacts including friend-circles, public account, applet, video number, etc., and at the same time, with the existence of WeChat payment, a complete business closed loop has become a reality. By the end of 2019, daily users of small programs had exceeded 300 million, with an annual growth rate of 160%.
Data from iiMedia Research shows that China’s social e-commerce market has an average annual compound growth rate (CAGR) of 138.2% from the year 2015 to the year 2017. It is estimated to reach $77 billion USD in 2018 and $341 billion USD by the year 2022.
