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Tencent Holdings-owned WeChat, the super app known as Weixin in China, is burnishing its e-commerce credentials on the mainland, thanks to a gift-giving feature that has boosted sales for online retailers on the platform, according to local media reports and industry analysts.
Chinese live-streaming e-commerce firm East Buy saw sales at its online store on WeChat cross the 1 million yuan (US$136,586) mark on Monday, with more than 80 per cent of transactions made through the app's gift-giving feature, according to a report by local media outlet National Business Daily, citing company sources.
Beijing-based East Buy adopted the feature earlier this month, weeks after it was rolled out by WeChat in December. East Buy did not immediately respond to a request for comment on Wednesday.
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The feature enables shoppers to search for products on WeChat by keywords. After the sender completes payment, the recipient must accept the gift and submit a postal address within 24 hours or the order will be cancelled, and the money returned to the sender. Users can only send a single gift to one WeChat friend per order.
According to WeChat's official guidelines, prices of products made available via this feature are capped at 10,000 yuan, and exclude jewellery and tutoring classes.
East Buy chairman and chief executive Michael Yu Minhong seen at the centre of a live-streamed show, with the platform's former top host Dong Yuhui to his left. Photo: Sohu alt=East Buy chairman and chief executive Michael Yu Minhong seen at the centre of a live-streamed show, with the platform's former top host Dong Yuhui to his left. Photo: Sohu>
East Buy's latest sales results on WeChat bodes well for the Tencent super app - with nearly 1.4 billion monthly active users - as shopping heats up around China's Lunar New Year holiday, which runs from January 29 to February 12.
The gift-gifting feature leverages WeChat's vast social network, which is expected to attract more quality vendors to join and users to shop on the platform, according to a research note by China Merchants Securities.
In a separate report, analysts at Citic Securities predicted the e-commerce gross merchandise value of WeChat to reach 1 trillion yuan by 2027.
Shenzhen-based Tencent has not disclosed business data about WeChat's gift-giving feature.