WeChat's newly-launched mini-program feature has been labeled as an initiative that could be too late to overtake Alibaba's popular Taobao platform. However, some industry analysts said the feature could benefit e-commerce startups through effective marketing.
According to Tech Node, Tencent said the new WeChat feature is expected to help online retailers save time and money as they go through daily selling and customer service tasks. Some industry analysts also pointed out that the logistics network could help e-commerce startups who have a hard time navigating networks that other competitors offer.
"The whole mini-program initiative is about helping startups, helping more businesses," co-founder of China Channel, Matthew Brennan, said. He added that WeChat's logistics feature may not have been created as a means of competing with Alibaba Group. Instead, he believes the Tencent-owned social media platform is exploring other models that will "let social e-commerce flourish."
Tencent's fourth quarter 2018 results indicated that WeChat's mini-program saw its daily user index increase by 54 percent. The development is attributed to increased use of daily online retail activities in the platform.
Furthermore, Brennan noted that the new logistics network is "very much in line with what they said they would do." Tencent previously pledged to create a mini-programs network that will be easy for e-commerce sellers to use for their sales and online presence campaigns.
Despite increased interest in the new WeChat mini-programs feature, some analysts believe there is more work to be done before the network helps sellers significantly. Jason Blondeau, Marketing and Sales Manager at QPSOFTWARE, explained that the logistics network won't help all retailers at an equal note.
On the other hand, Blondeau acknowledged that in general, mini-programs can help promote online brands and boost sales if these are integrated with a "proper marketing plan" that WeChat and e-commerce sellers will establish.
Meanwhile, other international brands are starting to reap profits from using WeChat as an online sales platform. Thailand's King Power International Group's WeChat mini-program store allows buyers to reserve and pay for their chosen products online. Customers will then pick up the products from offline retail stores.
King Power has targeted Chinese tourists in its efforts to increase brand awareness and ease customer service through WeChat. The online store offers some of the world's leading brands such as MAC and L'Oreal and customers can use WeChat Pay to make purchases.
Industry analysts suggested that Tencent's WeChat may not win over Alibaba but it can put up a good fight through its new mini-programs logistics network.
