Tech in China
Published in

Tech in China

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.

Source: https://36kr.com/p/706963499358722

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Tech In China

Stories about China’s tech giants, startups, funding, venture capital, trends, and industries of tomorrow.