Azoya Releases New Whitepaper to Help Global Retailers and Brands Boost Social Commerce Profitability Using WeChat in China
Azoya, an award-winning social commerce solution provider and full-service agency based in China, today announced the release of the whitepaper Capitalize on WeChat Private Domain: Best Practice 2022 to help international retailers and brands seize new opportunities to grow sales in China’s booming social commerce market. Among numerous China e-commerce options, WeChat has emerged as retailers’ must-have growth engine for their social commerce strategies in China. WeChat social commerce benefits retailers by helping them engage digital-savvy customers, build interpersonal, trusted, personalized, value-driven relationships via the private domain theories & practices.
However, many international retailers have yet to realize the potential of social commerce, and lack guidance to act on the opportunities of social commerce on WeChat, and they are increasingly outperformed by more agile competitors.
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In response, Azoya started to create a social commerce series of four thought leadership whitepapers in early 2019 to educate retailers and brands about this new retail channel. Now Azoya’s new whitepaper decodes the success formula of WeChat Social Commerce: Revenue = Customer Base x Conversion Rate x Repeat Purchase x Average Order Value. In parallel, Azoya analyzed successful social commerce operations and digital marketing best practices in detail to help global merchants amplify their exposure and earn customer loyalty among digital-savvy Chinese customers on WeChat. The analysis includes case studies of how private domain strategy improved performance for brands like Helena Rubinstein, Sephora, Kiehl’s, M.A.C, COS, Lacoste and Florasis, and deep dive into the impact of those actions.
WeChat and private domain have been a popular term in the Chinese market, and the total industry revenue of private domain in 2021 was more than 3.7 trillion RMB ($569 billion US). WeChat e-commerce GMV accounted for about 11% of China’s total e-commerce GMV (2 trillion RMB/$312.3 billion US) in 2020 and is expected to exceed 10 trillion RMB ($1561 billion US) in the next three years. As such, the golden age of private domain in China is now. As the WeChat Ecosystem continuously matures, WeChat’s private domain empowers brands and retailers to expand their business boundaries as omnichannel evolves. For example, Azoya has observed merchants broadening their businesses from online to offline, from offline to online, from online marketplaces to a WeChat presence. As such, the penetration rate of private domain touchpoints in China is as high as 96%, according to Tencent Marketing Insight data.
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As WeChat’s social commerce business surges, adapting to Chinese online shoppers’ expectations gives global retailers new growth opportunities. “Customers want to form a closer relationship with brands in WeChat, according to our study and practice. Our data shows over 34% of customers that participated in group chats have made at least one purchase in the past year, and we think the number will continue to increase,” says Davy Huang, director of business development at Azoya, “We add value for brands and retailers in expanding their business in China using WeChat. Our solution continues to help them quickly establish a presence within the WeChat ecosystem and marketplaces, and solve practical challenges of operating WeChat ads, content, livestream campaigns, and various other WeChat Ecosystem activities.”
To fuel new e-commerce growth, the Capitalize on WeChat Private Domain: Best Practice 2022 whitepaper gives retailers and brands specific tips and best practices on how to tailor their marketing strategies to strengthen their connections with customers. It also offers retailers and merchants valuable insights to help them operate more effectively in the private domain to achieve faster growth.
